Through the Bipartisan Infrastructure Law, GDO has more options for financing and investment in grid resilience, grid modernization, transmission deployment, and critical generation facilities than ever before.
Transmission Facilitation Program
The $2.5 billion Transmission Facilitation Program (TFP) is a revolving fund program that will provide 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 through the Inflation Reduction Act. This program is currently under development and more information will be available in the coming months.
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 exacerbated by the climate crisis.
The program will distribute 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 clean, affordable, and reliable energy.
Grid Resilience and Innovation Partnerships Program
As part of the Bipartisan Infrastructure Law, 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 and climate change. These programs will accelerate 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, clean electricity anytime, anywhere.
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)
On November 14, 2023, the Biden-Harris Administration announced up to $3.9 billion available through the second round funding opportunity of the Grid Resilience and Innovation Partnerships (GRIP) Program for Fiscal Years 2024 and 2025. Concept papers are a required first step in the application process and are due at 5:00 p.m. ET on January 12, 2024.
On October 18, 2023, the U.S. Department of Energy announced up to $3.46 billion in Grid Resilience and Innovation Partnerships (GRIP) Program investments for 58 projects across 44 states to strengthen electric grid resilience and reliability across America. See the full list of projects.
Western Area Power Administration Transmission Infrastructure Program
The Transmission Infrastructure Program (TIP) is a unique federal infrastructure development assistance and financing program that manages the Western Area Power Administration's (WAPA's) statutory $3.25 billion borrowing authority to provide debt financing and development assistance for qualifying transmission projects with at least one terminus in WAPA's 15-state service territory and that also facilitate delivery of renewable energy.
Loan Program Office
DOE's Loan Programs Office (LPO) administers several programs that can provide loan guarantees to help deploy large-scale energy infrastructure projects, including the construction and energization of a new transmission line. LPO can also reduce the risk of investment in long-distance transmission projects by providing financing support for projects that analysis shows are likely to support repayment of the loan, even if those projects have not yet secured pre-construction agreements for transmission service for their full capacity.
Visit the Grid and Transmission Program Conductor for additional information to help identify which financing program is most appropriate for individual projects.