2023-11-07 RFI FAQ.pdf
PDF 77 KB Posted
- Solicitation number
- RFI8900FY24001
- Issued by
-
Department of Energy
About this file
This document contains frequently asked questions regarding a Request for Information from the Department of Energy regarding carbon-free energy power generation at the Savannah River Site. The DOE will use energy attribute credits created by the operation of the carbon-free energy facility to offset power usage at the site to meet the 2030 mandate of 100% carbon-free energy usage. Any excess energy attribute credits will belong to the carbon-free energy facility owner. There are numerous transmission lines and existing substations at the Savannah River Site that could connect a new facility. A developer would be responsible for connection costs and working with the local utility on interconnection. The DOE is considering purchasing power directly from the generating facility if it provides carbon-free energy on a 24/7 basis. The lease term for development of a facility is open for consideration but would need to be sufficiently long term to attract developer interest, as the DOE has precedent for lease agreements considerably longer than 20 years in analogous situations.
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FREQUENTLY ASKED QUESTIONS
1. If we lease the land for an SMR is there a transmission line available nearby?
There are numerous transmission lines and existing substations at Savannah River Site.
If a substation is required to connect to an existing line, the developer would be responsible for the cost. Further, the developer is responsible for working directly with the utility on interconnection.
2. Is the DOE EAC retention commercial structure unique to this specific SRS complex?
No, the 2030 mandate for 100% carbon-free energy usage provides several options to achieve the goal. The EAC retention structure described in the RFI is one of the methods.
3. Is the DOE firm on EAC retention? Would there be willingness to remove this provision, pending RFI submission results?
DOE will use the EACs created by the operation of the CFE facility to offset power usage at SRS to meet the 2030 100% CFE mandate. EACs will be retired until the number of EACs offsets the annual usage of electricity by SRS. Any additional EACs will be property of the CFE facility owner or their designate.
4. Has a joint agreement with Dominion Energy South Carolina been considered? i.e. Is the balancing authority aware/willing to forego the transfer of EACs?
There is no formal exchange in South Carolina for EACs. DOE-SR are unaware of any regulation that would require the CFE facility owner to transfer EACs to the off-taking utility.
5. Is DOE willing to purchase the power directly from the generating facility?
It is not the current plan to purchase power directly from the generating facility. If the generating facility provides CFE on a 24/7 basis, purchasing power would at this point in the process be considered as an option.
6. Is the lease term limited to no more than 20 years as it is with some Department of Defense contracts?
One of the goals of the RFI is to understand how long the term of a lease agreement would need to be to attract interest from developers. SRS currently has a lease with a developer in an unrelated field, but in an analogous situation that is considerably longer than 20 years.
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