For almost 20 years, the U.S. Department of Energy (DOE) has struggled to push expanded transmission construction to support new renewable energy development and bolster overall grid reliability. Working with the Federal Energy Regulatory Commission (FERC), the agency has done studies determining where transmission is needed and supported FERC’s efforts to streamline permitting. Now, with funds from 2021’s Bipartisan Infrastructure Law (BIL), DOE has begun providing direct economic assistance to transmission developers, and shovels could be in the ground for several such projects in 2025.

In 2006, DOE released its National Electric Transmission Congestion Study, identifying areas of interest for new transmission infrastructure, and updated versions were published in 2009 and 2015. However, subsequent lawsuits limited FERC’s ability to put the recommendations into practice. 

The BIL included provisions allowing DOE to buy up to half the capacity of new lines to provide immediate financing by reducing lenders’ fears regarding future profitability. This $2.5 billion Transmission Facilitation Program (TFP) is designed to be self-sustaining, with DOE recouping its investments through payments from transmission operators for use of the capacity DOE purchases.

Round 1 

The first round of purchases, completed in October 2023 and April 2024, targeted three projects:

Southline Phase 1, running from Hidalgo, N.M, to Afton, N.M., just outside El Paso, Texas. Construction is expected to begin in 2025. Phase 1 is expected to be operating by 2027, with the full line operational by 2028.

Cross-Tie, a 214-mile line carrying 1,500 megawatts (MW) bidirectionally between Utah and Nevada. The line will increase Western U.S. transfer capabilities to provide better access to the region’s ample renewable resources. Construction is planned to begin early 2025.

Twin States Clean Energy Link, a 1,200-MW bidirectional line between New Hampshire and Vermont to connect to Hydro Quebec’s hydropower resources. It will also provide Canadian access to New England’s offshore wind power as those resources are developed. Construction is expected to begin the second half of 2026.

Round 2

The second round of capacity purchases were announced in October, with DOE entering negotiations for up to $1.5 billion of capacity on four projects delivering up to 7.1 gigawatts (GW):

Southern Spirit Transmission, a 320-mile, 525-kilovolt (kV) high-voltage DC (HVDC) line capable of delivering 3 GW between Texas and Mississippi—one of few interconnections between Texas and other states. The bidirectional capability could be helpful during and after extreme weather events.

Aroostook Renewable Project, a 111-mile, 345-kV line delivering up to 1.2 GW from three onshore wind farms, and other potential projects, in northern Maine to New England.

Cimarron Link, a 400-mile HVDC line delivering 1.9 GW of wind and solar generation to load centers in eastern Oklahoma from the state’s panhandle.

Southline Phase 2, a follow-on effort to a project DOE invested in last year. Combined, the plans will extend 345 kV of transmission by 280 miles between the Tucson and El Paso metropolitan areas, delivering wind and solar bidirectionally to key markets.

Planners are hoping the TFP will help independent transmission developers get past financing hurdles that electric utilities don’t face in their own line construction programs. Once state regulators approve new lines, utilities can begin the rate increases needed to fund the projects. Independent, or “merchant,” developers often must first line up electricity purchasers for the power they expect to deliver to gain required permits. However, many of those purchasers don’t want to commit until projects are fully permitted. 

DOE’s ability to purchase up to 50% of the line’s expected capacity gives regulators and power purchasers confidence that projects will be completed. While DOE’s contracts with developers allow it to independently market power through the capacity it owns, it’s more likely the agency will lease that capacity back to developers, who will then, essentially, pay rent back to DOE through the contract’s life. Those payments will help build back TFP coffers to enable future project funding.

Meanwhile, three additional major transmission projects have made it to construction, following years of legal battles, including the 732-mile TransWest Express, running from Wyoming to the Nevada/California/Arizona border region, which started construction in May 2024. Also underway is the SunZia Southwest Transmission Project, a 520-mile line running from New Mexico to Arizona and California. The Champlain Hudson Power Express, a 339-mile line between the New York-Canada border and New York City, is expected to be operational by mid-2026.