Reports related to this article:
Project(s): View 7 related projects in PECWeb
Plant(s): View 7 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) on Monday announced up to $1.3 billion in federal support for three transmission lines traversing six states, which will be provided through the agency's Transmission Facilitation Program (TFP), a $2.5 billion revolving fund designed to help build out new transmission lines across the U.S.
According to a related press release, the three projects are designed to add 3.5 gigawatts (GW) of power grid capacity.
The TFP, which was created to support the 2021 Bipartisan Infrastructure Law, is designed to "help overcome the financial hurdles associated with building new, large-scale transmission lines, upgrading existing transmission lines, and connecting microgrids in Hawaii, Alaska, and U.S. territories." It allows the DOE to borrow to purchase a percentage of the total proposed capacity of eligible transmission line(s).
At an event Monday supporting one of the three projects, U.S. Secretary of Energy Jennifer Granholm, said of the TFP, "This program is a little different than us investing directly construction-wise into the building of the grid. It is ... a capacity project so that we on all three of these projects have an ownership in the capacity, the electricity running through. Until the project is completed, then we get out, we get reimbursed. It's a revolving fund."
According to the DOE, purchasing capacity contracts "increases the confidence of additional investors, encourages additional customers to purchase transmission line capacity, and reduces the overall risk for project developers."
The new federal support comes just a week after the DOE announced $3.46 billion in funding for transmission and distribution (T&D) projects across 44 U.S. states. For more information, see October 20, 2023, article - U.S. to Fortify T&D Grid with $3.46 Billion in Federal Grants.
The DOE anticipates releasing a second round of TFP funding in the first half of 2024 "through a request for proposals that may include a combination of public-private partnerships, loans, and capacity contracts, totaling up to $1 billion," according to the recent press release.
Among the three recently selected projects is the proposed Cross-Tie transmission line, a 214-mile, 500-kilovolt (kV) line designed to connect existing transmission systems in Utah and Nevada. According to a DOE press release, the "bidirectional nature of Cross-Tie will increase transfer capabilities in the West, unlocking increased access to renewable energy resources in the region."
Construction of the line includes a 26-mile segment from the Gonder Substation in Nevada to the Spring Valley Substation, and a 110-mile segment from Spring Valley to the Intermountain Substation in Delta, Utah, among other segments. Construction is expected to start in first-quarter 2025, with the line entering service in 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Gonder-Spring Valley and Spring Valley-Intermountain segments, and click here for a full list of all project reports related to the Cross-Tie transmission line.
TransCanyon LLC (Pheonix, Arizona) is the project developer. TransCanyon is a joint venture between BHE U.S. Transmission (Des Moines, Iowa) and Pinnacle West Capital Corporation (NYSE:PNW) (Pheonix, Arizona).
The second transmission line to recently receive a funding commitment is the first phase of the Southline Transmission Project in New Mexico and Arizona, a 280-mile, double-circuit, high voltage transmission line designed to carry New Mexico-generated renewable energy across the some of the most heavily populated areas in the southern halves of both states.
The first phase of the line will bring renewable energy from New Mexico into Arizona, originating in New Mexico's Hidalgo County, while the second phase would turn east from Hidalgo County, out to El Paso. Construction is expected to begin in 2025 and wrap up around 2027, with the second phase likely to kick off about one to two years after that.
Three new-build segments include:
The third transmission line the DOE recently committed to purchasing capacity of is the Twin States Clean Energy Link, a bidirectional, high-voltage, direct-current (HVDC) line that would "expand the capacity of the New England electric grid and improve its resiliency, reliability, and efficiency by providing access to clean firm energy supplies in Quebec, Canada," according to the recent DOE press release. The Twin States project entails constructing an underground transmission line segment that would run from a new HVDC converter station in New Hampshire to a tie-in in Quebec; constructing a new substation in New Hampshire and upgrading an existing one; as well as upgrading existing transmission lines in the state. Construction is expected to begin at the end of 2026. National Grid plc (NYSE:NGG) (London, England) is developing the project. Click here to see related project reports.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
According to a related press release, the three projects are designed to add 3.5 gigawatts (GW) of power grid capacity.
The TFP, which was created to support the 2021 Bipartisan Infrastructure Law, is designed to "help overcome the financial hurdles associated with building new, large-scale transmission lines, upgrading existing transmission lines, and connecting microgrids in Hawaii, Alaska, and U.S. territories." It allows the DOE to borrow to purchase a percentage of the total proposed capacity of eligible transmission line(s).
At an event Monday supporting one of the three projects, U.S. Secretary of Energy Jennifer Granholm, said of the TFP, "This program is a little different than us investing directly construction-wise into the building of the grid. It is ... a capacity project so that we on all three of these projects have an ownership in the capacity, the electricity running through. Until the project is completed, then we get out, we get reimbursed. It's a revolving fund."
According to the DOE, purchasing capacity contracts "increases the confidence of additional investors, encourages additional customers to purchase transmission line capacity, and reduces the overall risk for project developers."
The new federal support comes just a week after the DOE announced $3.46 billion in funding for transmission and distribution (T&D) projects across 44 U.S. states. For more information, see October 20, 2023, article - U.S. to Fortify T&D Grid with $3.46 Billion in Federal Grants.
The DOE anticipates releasing a second round of TFP funding in the first half of 2024 "through a request for proposals that may include a combination of public-private partnerships, loans, and capacity contracts, totaling up to $1 billion," according to the recent press release.
Among the three recently selected projects is the proposed Cross-Tie transmission line, a 214-mile, 500-kilovolt (kV) line designed to connect existing transmission systems in Utah and Nevada. According to a DOE press release, the "bidirectional nature of Cross-Tie will increase transfer capabilities in the West, unlocking increased access to renewable energy resources in the region."
Construction of the line includes a 26-mile segment from the Gonder Substation in Nevada to the Spring Valley Substation, and a 110-mile segment from Spring Valley to the Intermountain Substation in Delta, Utah, among other segments. Construction is expected to start in first-quarter 2025, with the line entering service in 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Gonder-Spring Valley and Spring Valley-Intermountain segments, and click here for a full list of all project reports related to the Cross-Tie transmission line.
TransCanyon LLC (Pheonix, Arizona) is the project developer. TransCanyon is a joint venture between BHE U.S. Transmission (Des Moines, Iowa) and Pinnacle West Capital Corporation (NYSE:PNW) (Pheonix, Arizona).
The second transmission line to recently receive a funding commitment is the first phase of the Southline Transmission Project in New Mexico and Arizona, a 280-mile, double-circuit, high voltage transmission line designed to carry New Mexico-generated renewable energy across the some of the most heavily populated areas in the southern halves of both states.
The first phase of the line will bring renewable energy from New Mexico into Arizona, originating in New Mexico's Hidalgo County, while the second phase would turn east from Hidalgo County, out to El Paso. Construction is expected to begin in 2025 and wrap up around 2027, with the second phase likely to kick off about one to two years after that.
Three new-build segments include:
- a 73-mile stretch from the Afton Substation in La Mesa, New Mexico, to the Midpoint Substation in Deming, New Mexico; see project report
- a 53-mile stretch from the Midpoint Substation to the Hidalgo Substation in Lordsburg, New Mexico; see project report
- a 55-mile stretch from the Hidalgo Substation to the Apache Substation in Cochise, Arizona; see project report
The third transmission line the DOE recently committed to purchasing capacity of is the Twin States Clean Energy Link, a bidirectional, high-voltage, direct-current (HVDC) line that would "expand the capacity of the New England electric grid and improve its resiliency, reliability, and efficiency by providing access to clean firm energy supplies in Quebec, Canada," according to the recent DOE press release. The Twin States project entails constructing an underground transmission line segment that would run from a new HVDC converter station in New Hampshire to a tie-in in Quebec; constructing a new substation in New Hampshire and upgrading an existing one; as well as upgrading existing transmission lines in the state. Construction is expected to begin at the end of 2026. National Grid plc (NYSE:NGG) (London, England) is developing the project. Click here to see related project reports.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
