Two federal agencies recently issued a joint Request for Information (“RFI”) in the latest in a series of concrete steps to meet the Biden administration’s goal of achieving carbon pollution-free electricity (CFE). 100%. in federal operations by 2030. The RFI, issued by DLA-Energy and GSA, offers industry a chance to shape future federal CFE purchases by providing information on carbon-free electricity supplied to energy markets. competitive detail. While not a procurement opportunity per se, information submitted as part of the RFI will inform the parameters and conditions of the CFE competitions the federal government plans to begin as early as this year, with contractual deliveries starting in 2023.
President Biden’s Executive Order 14057 sets out a series of government-wide goals to reduce greenhouse gas emissions and promote sustainability in federal operations. (Our discussion of EO is available here.) As EO acknowledges, government is a major consumer of electricity, and the administration’s focus on more sustainable energy policies – and CFE purchases that accompany them – presents a huge opportunity for the clean energy industry. The DOD alone spent $551 million on electric, transmission, and distribution utilities in FY21, and that figure will likely grow as the administration develops its whole-of-government approach to implementing the CFE.
To achieve the desired economies of scale in order to achieve the administration’s objective of moving to 100% CFE on a net annual basis by 2030, the government has indicated that it is willing to combine the purchases of CFE between several agencies and to extend contract deadlines by up to 10 hours. years, if applicable. The RFI seeks to collect the information necessary for the solicitation process and, in terms of content, focuses on the collection of information on retail electricity supplied by CFE in identified competitive retail markets (in particular PJM, ERCOT, ISO-NE, MISO and NYISO). Respondents are encouraged to provide the following details for each market:
- proposed or recommended approach to achieving the government’s CFE objectives,
- annual retail price of electricity supplied by the CFE on a specific market for a range of quantities supplied,
- percentage of reference hourly consideration for the CFE offer proposed in category 1, and
- portfolio adjustments needed to increase the CFE matching percentage on an hourly (24/7) basis, as proposed in Category 3.
In soliciting this information, the RFI includes a series of tables in which interested respondents are invited to insert information on CFE’s anticipated supply, storage and price, although respondents may also choose to submit information in the form narrative. The RFI also invites respondents to address their management of Renewable Energy Certificates (RECs) and other CFE accounting mechanisms, as well as the price associated with this tracking and certification process.
Interested respondents have the opportunity to submit RFI questions by February 25, and the deadline for responses is currently March 7, 2022.