GDO has more options for financing and investment in grid resilience, grid modernization, transmission deployment, and critical generation facilities than ever before.
Civil Nuclear Credit Program
The Civil Nuclear Credit Program works to prevent premature retirement of existing zero-carbon nuclear plants. The program is available for plants that would otherwise retire and are certified as safe to continue operations and prioritizes plants that use domestically produced fuel. The program evaluates nuclear reactors projected to cease operations due to economic factors and selects certified nuclear reactors to receive credits to cover operating losses.
Grid Resilience and Innovation Partnerships Program
The Grid Deployment Office is administering a $10.5 billion Grid Resilience and Innovation Partnerships Program to enhance grid flexibility and improve the resilience of the power system against growing threats of extreme weather. These programs are accelerating the deployment of transformative projects that will help to ensure the reliability of the power sector’s infrastructure, so all American communities have access to affordable, reliable electricity.
The Program includes three funding mechanisms:
- Grid Resilience Utility and Industry Grants ($2.5 billion)
- Smart Grid Grants ($3 billion)
- Grid Innovation Program ($5 billion)
Grid Resilience State and Tribal Formula Grant Program
The Grid Resilience State and Tribal Formula Grant Program is designed to strengthen and modernize America’s power grid against wildfires, extreme weather, and other natural disasters.
The program is distributing up to $2.3 billion over five years to states, territories, and federally recognized Indian tribes, including Alaska Native Regional Corporations and Alaska Native Village Corporations, based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts. The states, territories, and tribes will then award these funds to a diverse set of projects, with priority given to efforts that generate the greatest community benefit providing affordable and reliable energy.
Hydroelectric Incentives
The Hydroelectric Incentives seek to invest more than $750 million in existing hydroelectric facilities to improve power production, facility efficiency, and dam safety, as well as maintain and enhance facilities across the country.
Transmission Facilitation Program
The $2.5 billion Transmission Facilitation Program (TFP) is a revolving fund program that provides federal support to overcome the financial hurdles in the development of new large-scale transmission lines and upgrading existing transmission. Under the TFP, DOE is authorized to borrow up to $2.5 billion to assist in the construction of new and upgraded high-capacity transmission lines through three financing tools: loans from DOE; DOE participation in public-private partnerships; and capacity contracts with eligible projects in which DOE would serve as an “anchor customer”. These tools represent an innovative approach that can spur valuable new lines that otherwise would not get built.
Transmission Facility Financing Program
The Transmission Facility Financing program will provide $2 billion in direct loan authority for facility financing. This program is currently under development and more information will be available in the coming months.
Transmission Siting and Economic Development Grants
The Transmission Siting and Economic Development (TSED) Grant Program is a $760 million investment designed to advance critical transmission projects by accelerating siting and permitting while supporting economic development efforts in communities impacted by transmission construction and operation.
Wholesale Electricity Market Studies and Engagement Program
Administered by the Grid Deployment Office (GDO), the Wholesale Electricity Market Studies and Engagement (WEMSE) Program provides states and regions with technical and financial assistance related to developing, expanding, and improving wholesale electricity markets. This engagement will ensure these stakeholders are able to provide critical insight into market design, expansion, and improvement activities. Efficient, fair, and transparent wholesale market constructs are critical to providing an affordable, reliable, and clean electric grid.
Visit the Grid and Transmission Program Conductor for additional information to help identify which financing program is most appropriate for individual projects.