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The US launches US$1.2bn tender to expand and modernise electric grid

The US Department of Energy (DOE) has issued a Request for Proposals (RFP) for the second round of the Transmission Facilitation Program (TFP) to develop large-scale new and upgraded transmission lines. The DOE anticipates a US$1.2bn budget through capacity contracts that will allow to increase the reliability of the grid while also modernising it. It aims to increase the confidence in the projects and reduce the risks for investors and customers by using the TFP fund to support and accelerate transmission buildout.

The Transmission Facilitation Program is a revolving fund program that provides Federal support to large-scale new transmission lines and upgrading existing transmission as well as the connection of microgrid projects facing financial difficulties for their development in certain US states and territories, authorizing the DOE to borrow up to US$2.5bn to assist project developments. The TFP is in line with the US government's goal of achieving 100% clean energy by 2035. 

According to the DOE’s National Transmission Needs Study, by 2035, the US should more than double its existing regional transmission capacity, while interregional transmission capacity should be expanded by more than fivefold to maintain electric reliability, improve resilience to extreme weather, and provide access to low-cost renewable energy.