PJM_CFE_Industry Flyer.pdf

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DLA Energy - Carbon-Pollution Free Electricity/Retail Electricity 2024
Solicitation number
SP0604-24-R-0421
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About this file

This document is a synopsis for a federal contract opportunity issued by the Defense Logistics Agency Energy (DLA Energy) for the supply of carbon pollution-free electricity (CFE) and supplemental retail grid electricity to support the goals of Executive Order 14057 in the PJM Interconnection/Regional Transmission Operator (PJM/RTO) region.

DLA Energy plans to issue solicitation SP0604-24-R-0421 for a 20-year contract to provide approximately 2.4 million MWh of CFE annually, representing 50% of the DoD's load in the PJM region. The solicitation will be structured as a requirements contract, with the CFE portion being firm-fixed-price and the supplemental grid electricity utilizing Locational Marginal Pricing. All responsible sources may submit proposals, which will be due approximately 30 days after the solicitation is issued. DLA Energy will collaborate with the General Services Administration (GSA) on this procurement, but each agency will issue their own separate solicitations and awards.

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DoD’s CFE objec�ves

• Achieve 100% CFE by 2030, including

50% matching on a 24/7 basis.

• Enroll in available programs that are compliant with EO 14057.

• Work with u�li�es and suppliers to develop new CFE programs or products.

• Partner with industry on onsite and offsite development, energy efficiency or other CFE related technologies.

Addi�onal details

• CFE milestones shall be in alignment with EO 14057

• In 2030, it’s an�cipated that contractor(s) will provide a mix of ~35% purchased CFE and ~65% grid-supplied CFE (totaling 100% CFE).

DoD and GSA’s collabora�on efforts?

• In the PJM retail choice market, two solicita�ons will occur in parallel. One led by DLA Energy and one led by GSA.

• DLA Energy and GSA will collaborate throughout this process, but each will issue RFPs, evaluate offers, and award contracts independently.

Overview of DoD’s CFE procurement in Pennsylvania-New Jersey-Maryland (PJM)

DEPARTMENT OF DEFENSE

This fact sheet only pertains to DoD’s PJM CFE procurement, led by DLA Energy.

DLA Energy intends to issue solicita�on for the supply of retail electricity, to include Carbon Pollu�on-Free electricity (CFE), to be delivered to various DoD installa�ons and Federal Civilian agency facili�es located in the PJM RTO market area, which achieves significant progress towards Execu�ve Order (EO) 14057 objec�ves.

Scope

All accounts are in District of Columbia, Illinois, Maryland, New Jersey, Ohio, and Pennsylvania, and DOD is seeking 2.4 million MWh of CFE and corresponding EACs annually which represents ~50% of DoD load in PJM RTO. The Government is solici�ng offers for a 20-year delivery period, beginning with meter read date in Dec 2024.

Timeline and Pricing Structure

FOR MORE INFORMATION DLAenergy-cfe@dla.mil

DLA Energy posted its synopsis on July 15th. The RFP will be issued on ~July 31st and proposals will be due approximately 30 days a�er the solicita�on is issued.

DoD accounts will be structured into pricing groups and contractors can submit proposals for one or more groups.

The contract(s) awarded for the CFE por�on will be Firm- Fixed-Price, Requirements Type along with Fixed-Pricing, Requirements Type u�lizing Loca�onal Marginal Pricing for the retail grid electricity. The solicita�on will be issued as a Request for Proposal. Addi�onal requirements may be added by amendment. All responsible sources may submit a proposal, which shall be considered.

htps://www.dla.mil/Energy/Products/ Carbon-Pollu�on-Free-Electricity/

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