On October 30, 2023, the U.S. Department of Energy (DOE) announced that it is entering into capacity contract negotiations through the Transmission Facilitation Program with a commitment of up to $1.3 billion in three transmission projects across six states aimed at adding 3.5 GW of additional grid capacity and creating more than 13,000 direct and indirect jobs. Through capacity contracts, DOE will commit to purchasing a percentage of the total proposed capacity of the eligible transmission line. By offering capacity contracts, DOE increases the confidence of additional investors, encourages additional customers to purchase transmission line capacity, and reduces the overall risk for project developers.

The selected projects are:  

  • Cross-Tie 500kV Transmission Line Project (Nevada, Utah). Cross-Tie is a proposed 214-mile 1500 MW transmission line connecting existing transmission systems in Utah and Nevada to increase transmission capacity, improve grid reliability and resilience, relieve congestion on other key transmission lines, and expand access to low-cost renewable energy across the region. The bidirectional nature of Cross-Tie will increase transfer capabilities in the West, unlocking increased access to renewable energy resources in the region. Construction is expected to start in Q1 of calendar year 2025. The National Transmission Needs Study (Needs Study) estimates that by 2030 the Mountain region will need nearly 2,300 GW-mi of new transmission to unlock the power sector emissions savings enabled by Inflation Reduction Act (IRA). Cross-Tie will contribute 14% to this regional need. Learn more.

 

  • Southline Transmission Project (Arizona, New Mexico). Southline is a proposed 175-mile, 748 MW transmission line from Hidalgo County, NM to Pima County, AZ that will help unlock renewable energy development in southern New Mexico and deliver clean energy to growing markets in Arizona that currently rely on fossil fuel generation. The project, which is the first phase of a longer line, will make smart use of existing transmission rights of way along parts of its route, upgrading aging transmission facilities that are the source of congestion and constraints in the region. Construction is expected to start in Q1 of calendar year 2025. The Needs Study estimates that by 2030 the Southwest will need 935 GW-mi of new transmission to unlock the power sector emissions savings enabled by IRA. The Southline project will contribute 14% to this regional need. Learn more.

 

  • Twin States Clean Energy Link (New Hampshire, Vermont). Twin States Clean Energy Link withdrew from TFP contract negotiations in March 2024.