RFI Begins To Chart Course For Federal Clear Power Procurements – Power and Pure Sources

Two federal companies just lately launched a joint Request for Info
(“RFI”) within the newest in a sequence of concrete steps
to fulfill the Biden Administration’s purpose to attain 100%
carbon pollution-free electrical energy (CFE)¹ in federal
operations by 2030.  The RFI, issued by DLA-Power and GSA,
affords business an opportunity to form future federal CFE procurements
by offering data on carbon-free electrical energy provided in
aggressive retail markets.  Though not itself a procurement
alternative, the data submitted beneath the RFI will inform
the parameters and situations of CFE competitions that the federal
authorities expects to start as quickly as this yr, with contract
deliveries beginning in 2023.

President Biden’s Govt Order 14057 units out a sequence of
government-wide objectives to scale back greenhouse fuel emissions and
promote sustainability in federal operations.  (Our dialogue
of the EO is out there right here.)  Because the EO acknowledges, the
Authorities is a major client of electrical energy, and the
Administration’s emphasis on extra sustainable power insurance policies
– and accompanying CFE procurements – presents an
immense alternative for the clear power business.  DOD alone
spent $551 million on electrical energy, transmission, and
distribution providers in FY21, and that determine doubtless will develop
whereas the Administration develops its whole-of-government strategy
to implementing CFE.

To realize the specified economies of scale to fulfill the
Administration’s purpose to transition to 100% CFE on a web
annual foundation by 2030, the Authorities has signaled that it’s
prepared to mix CFE procurements throughout a number of companies, and
to increase contract timelines as much as 10 years, the place
acceptable.  The RFI seeks to gather the data to
assist the solicitation course of, and, when it comes to content material, focuses
on gathering data on retail electrical energy provided CFE in
recognized aggressive retail markets (particularly PJM, ERCOT,
ISO-NE, MISO, and NYISO).²  Respondents are inspired
to supply the next particulars for every market:

1. proposed or advisable strategy to fulfill the Authorities’s
   CFE objectives,




2. annual value for retail electrical energy provided CFE in a particular
   marketplace for a spread of provide portions,




3. baseline hourly matching proportion for the CFE provide proposed
   beneath class 1, and




4. portfolio changes essential to extend the proportion CFE
   match on an hourly (24/7) foundation, as proposed beneath class 3.

In soliciting this data, the RFI features a sequence of
tables during which respondents are invited to insert
details about projected provide, storage, and pricing of CFE,
although respondents additionally could select to submit data in a
narrative format.  The RFI additionally invitations respondents to deal with
their administration of Renewable Power Certificates (RECs) and different
CFE accounting mechanisms, in addition to the related value of this
monitoring and certification course of.

respondents have the chance to submit questions
in regards to the RFI by February 25, and the deadline for responses is
presently March 7, 2022.

Footnotes

[1]
Carbon pollution-free electrical energy means “electrical power
produced from assets that generate no carbon emissions,
together with marine power, photo voltaic, wind, hydrokinetic (together with
tidal, wave, present, and thermal), geothermal, hydroelectric,
nuclear, renewably sourced hydrogen, and electrical power
era from fossil assets to the extent there’s lively
seize and storage of carbon dioxide emissions that meets EPA
necessities.”  E.O. 14057, 86 Fed. Reg. 70935, 70942 (Dec. 13,
2021).

2 PJM
(consists of 13 states and D.C.), Electrical Reliability Council of
Texas (ERCOT), Impartial System Operator New England (ISO-NE),
Midcontinent ISO (MISO), and New York ISO (NYISO).

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