ST.
LOUIS, April 25, 2024 /PRNewswire/ -- The U.S.
Department of Energy's ("DOE") Grid Deployment Office today
announced that it has selected a project owned by Great Basin
Transmission, LLC ("GBT") to enter into capacity contract
negotiations as part of DOE's Transmission Facilitation Program.
GBT is a wholly owned subsidiary of LS Power.
The Southwest Intertie Project-North ("SWIP-North") is a $1+
billion, 285-mile, 500-kilovolt (kV) transmission line that will
connect the Midpoint substation near Twin
Falls, Idaho, with the Robinson Summit substation near
Ely, Nevada, providing a new
pathway for delivering energy between the Desert Southwest and the
Pacific Northwest.
SWIP-North will also extend to Idaho the benefits of transmission lines
developed earlier by LS Power that have served Nevada and the California Independent System
Operator ("CAISO"). The concept of an inter-regional transmission
project spanning multiple states originated in the 1980s, with LS
Power acquiring rights to the project in 2005. Since then, LS Power
has developed or will develop the following projects:
- One Nevada Transmission Line ("ON Line") is a 231-mile,
500 kV transmission line connecting the Harry Allen substation near
Las Vegas, Nevada, to the Robinson
Summit substation near Ely,
Nevada, which was built in partnership with NV Energy and
placed in service in 2014. DOE facilitated the debt financing for
ON Line through its Loan Programs Office in 2011.
- DesertLink is a 60-mile, 500 kV transmission line
connecting the Eldorado substation to the Harry Allen substation,
both in Clark County, Nevada,
which was placed in service in 2020.
- SWIP-North is the final link of the transmission
corridor extending from Idaho to
southern Nevada that will enable
the bidirectional flow of approximately 2,000 megawatts of
electricity, increase grid reliability for the West, and provide
new transmission access to the thousands of megawatts of renewable
resources under development in the region. Visit
lspowergrid.com/portfolio/#swipnorth for more information.
"SWIP-North will deliver economic benefits and strengthen the
electric grid in the western U.S., while also connecting renewable
energy resources to customers that need them," said Paul Thessen, President of LS Power Development.
"SWIP-North's bidirectional capability and ability to unleash
latent capacity on ON Line make it a valuable and cost-effective
transmission system improvement. This final piece of the
transmission corridor will provide benefits to multiple Western
states by helping meet electricity needs and increasing economic
development and employment.
"We are honored to partner again with the DOE," added Thessen.
"The selection of SWIP-North for a potential capacity contract
provides an anchor that will allow us to move forward more quickly
with procurement activities and securing slots for long-lead
equipment, thereby proceeding to construction and placing the
project in service faster than otherwise possible."
Construction on SWIP-North is slated to begin in 2025, with
completion in 2027. Once placed in service, SWIP-North, coupled
with ON Line and DesertLink, will:
- Improve reliability and reduce congestion for the western U.S.
electric grid
- Increase grid resilience against impacts from extreme weather
and wildfire events
- Foster the development of new renewable generation resources
and enable the export of excess solar capacity from the Desert
Southwest
- Support the achievement of regional electrification and climate
goals
- In partnership with International Brotherhood of Electrical
Workers Local 1245, create hundreds of construction jobs for
skilled workers and generate millions of dollars in local tax
revenues to support surrounding communities
"We sit at an inflection point today where we are building a
clean energy system while meeting growing demand, and we're doing
so without putting affordability or reliability at risk," said
Paul Segal, CEO of LS Power.
"Enhancing grid reliability and providing access to clean energy
resources are top priorities for LS Power. SWIP-North and the
benefits it provides are important elements of our focused effort
to enhance affordability, sustainability, and reliability across
the nation through innovative solutions for power generation,
transmission, and energy transition."
"Investing in the grid means getting more power to more people
in more places and DOE is using all of the tools in the toolbox to
make that happen," said Maria
Robinson, Director, Grid Deployment Office, U.S. Department
of Energy. "But we aren't just financing the projects of today,
we're investing in the grid of our future. DOE's unique authorities
through the Bipartisan Infrastructure Law and the Inflation
Reduction Act enable innovative mechanisms, like the TFP's capacity
contracts, that are increasing investor and consumer confidence and
leveraging private capital as well as public financing. By
supporting projects like SWIP-North, we are setting the stage for
meaningful impact on advancing critical infrastructure, good-paying
jobs, and clean, reliable power throughout the country."
In December 2023, GBT was selected
as part of CAISO's 2022-2023 Transmission Plan to develop,
permit, finance, construct, own, operate and maintain the
SWIP-North Project. This selection is subject to certain
conditions, as further described on CAISO's website.
ABOUT DOE TRANSMISSION FACILITATION PROGRAM:
Funded
through the Bipartisan Infrastructure Law, the Transmission
Facilitation Program (TFP) is a $2.5
billion revolving fund program that will help build and
expand interregional transmission lines across the country.
Administered by the U.S. Department of Energy's (DOE) Grid
Deployment Office (GDO), TFP will provide transmission developers
with financial assistance to help develop large-scale new
transmission lines, upgrade existing transmission lines, and
connect microgrids in Hawaii,
Alaska, and U.S. territories.
ABOUT LS POWER:
Founded in 1990, LS Power is a premier
development, investment, and operating company focused on the North
American power and energy infrastructure sector, with leading
platforms across generation, transmission, and energy transition
solutions. Since inception, LS Power has developed or acquired
47,000 MW of power generation, including utility-scale solar, wind,
hydro, battery energy storage, and natural gas-fired facilities.
Additionally, LS Power Grid has built 780+ miles of high-voltage
transmission, with 350+ miles and multiple grid infrastructure
projects currently under construction or development. LS Power
actively invests in and scales businesses that are accelerating the
energy transition, including electric vehicle charging, demand
response, microgrids, renewable fuels and waste-to-energy
platforms. Over the years, LS Power has raised $54 billion in debt and equity capital to support
North American infrastructure. For more information, please visit
lspower.com.
ABOUT LS POWER GRID:
As a national independent
transmission provider, LS Power Grid develops, builds, owns, and
operates high-voltage electric transmission systems and delivers
robust, innovative solutions to create a stronger and more reliable
U.S. power grid. Our infrastructure helps transmit electricity
safely and cost-effectively across the
United States, where our transmission facilities are located
in five regional transmission organizations (RTOs) / independent
system operators (ISOs) and in other regions, helping to meet the
energy planning needs for an electric system spanning 28 states and
serving 185+ million people. LS Power Grid is also an advocate for
transparent and competitive processes in transmission
infrastructure development, as it encourages innovation, helps
support the nation's energy transition to cleaner resources, and
lowers costs for consumers. For more information, please visit
lspowergrid.com
Media Contact:
media@lspower.com
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SOURCE LS Power