Federal Government's Largest Clean Energy Purchase Transforms U.S. Energy Strategy
The U.S. General Services Administration (GSA) has announced its largest-ever long-term electricity procurement, totaling over 10 million megawatt-hours (MWh) over ten years. The historic agreement with Constellation New Energy, Inc. includes a substantial share of carbon pollution-free electricity (CFE) from nuclear energy, underscoring the federal government’s commitment to advancing clean energy solutions.
This procurement is pivotal in meeting the Biden-Harris Administration’s ambitious sustainability goals, including transitioning federal operations to 100% carbon-free electricity by 2030. The deal also provides a blueprint for other sectors navigating the complexities of clean energy adoption amidst growing energy demand and price volatility.
With Trump set to take office in less than two weeks, do you believe he will support agreements such as this over the next 4 years?
The contract spans 80 federal facilities across the PJM Interconnection territory, covering parts of the Mid-Atlantic and Midwest. GSA Administrator Robin Carnahan highlighted the significance of the procurement:
“This historic procurement locks in a cost-competitive, reliable supply of nuclear energy over 10 years, accelerating progress toward a carbon-free energy future while protecting taxpayers against future price hikes.”
The move ensures price stability for federal agencies, a critical factor as electricity costs fluctuate due to increased demand from data centers and AI facilities. By fixing energy costs, the GSA shields taxpayers while bolstering domestic nuclear infrastructure.
A key element of this agreement is the role of nuclear energy. Constellation will leverage this contract to extend the licenses of its nuclear plants and invest in technology upgrades that will add 135 carbon-free megawatts to the grid. Joe Dominguez, CEO of Constellation, emphasized the broader implications:
“The investments we make as a result of this contract will keep these plants operating reliably for decades to come and put new, clean nuclear energy on the grid while making the best use of taxpayer dollars.”
Nuclear energy’s potential to provide stable, carbon-free baseload power has gained renewed attention. The International Energy Agency (IEA) emphasizes that nuclear power is integral to a secure global pathway to net zero. In their Net Zero Emissions by 2050 Scenario, they project that nuclear capacity needs to double from 413 GW in early 2022 to 812 GW by 2050. This expansion is considered essential for decarbonizing the electricity supply alongside renewable sources
The procurement aligns with the Federal Sustainability Plan’s objectives to reduce emissions and improve operational efficiency. By transitioning 14 government agencies to a secure and clean energy supply, the contract promotes environmental stewardship and signals economic foresight.
The Clean Energy Buyers Association (CEBA) lauded the GSA’s approach, with CEO Rich Powell calling it a “powerful signal” to markets to invest in clean energy infrastructure. This public-private collaboration mirrors strategies pioneered by Fortune 500 companies, proving that large-scale clean energy investments are feasible and beneficial.
The GSA’s procurement strategy sets a new benchmark for corporate clean energy buyers. It demonstrates how leveraging long-term contracts can mitigate risk, stabilize budgets, and accelerate the deployment of advanced energy technologies. For private companies facing similar challenges—rising energy costs and growing decarbonization pressures—the federal government’s approach offers valuable lessons.
Jeremy Harrell, CEO of ClearPath, noted:
“The federal government’s commitment to use nuclear energy... demonstrates how the public and private sectors can work together. This partnership can serve as a model to accelerate power uprates at existing nuclear sites and the construction of new nuclear reactors.”
As the federal government, the nation’s largest energy consumer transitions to 100% carbon-free electricity by 2030, this procurement marks a critical milestone. With its scale, multi-agency scope, and focus on nuclear energy, the agreement between GSA and Constellation exemplifies how strategic partnerships can drive innovation, reduce emissions, and enhance resilience.
During his previous term, former President Trump prioritized fossil fuels, withdrawing from the Paris Climate Agreement and rolling back regulations on carbon emissions. This approach could signal less federal support for renewable energy and nuclear investments, potentially slowing or revisiting such programs.
However, nuclear energy—a core component of this GSA contract—has traditionally received bipartisan support as a reliable and carbon-free energy source. Trump’s administration previously backed advanced nuclear technologies, which could mitigate significant disruptions to this program.
