Constellation Energy secures landmark $1bn federal clean energy deal
Constellation Energy Corporation has cemented its position as a leader in clean energy with a historic $1 billion contract from the U.S. General Services Administration (GSA). This deal, the largest of its kind in GSA history, will see Constellation supplying carbon-free electricity to over 13 federal agencies while implementing significant energy efficiency upgrades in key government facilities.
Transforming Federal Energy Procurement
Under a groundbreaking 10-year, $840 million contract, Constellation will supply more than 1 million megawatt-hours (MWh) annually, starting in 2025. A large portion of this energy will come from nuclear power, a resource often overlooked in clean energy procurement but now gaining recognition for its reliability and zero-emissions output.
Joe Dominguez, President and CEO of Constellation, emphasized that this agreement signals a pivotal change in energy policy. He noted that nuclear energy had long been excluded from many sustainable energy initiatives despite its proven ability to deliver round-the-clock, carbon-free power. This contract, Dominguez said, demonstrates growing acknowledgment of nuclear energy’s critical role in achieving federal and corporate sustainability goals.
The GSA Administrator, Robin Carnahan, highlighted the dual benefits of the contract, describing it as a cost-effective way to secure a reliable energy supply while accelerating progress toward a carbon-free energy future. Carnahan noted that locking in long-term nuclear energy supply shields taxpayers from potential price volatility, making it a financially prudent move.
Delivering Clean Energy Across Federal Agencies
The agreement will provide power to a diverse array of government entities, including the Social Security Administration, the Department of Veterans Affairs, and the National Park Service. Facilities in Maryland, Illinois, New Jersey, Pennsylvania, and Ohio will benefit from the deal, reflecting a broad commitment to clean energy integration across multiple states.
The energy will also support critical federal operations, such as those conducted by the National Oceanic and Atmospheric Administration and the Washington Metropolitan Area Transit Authority, reinforcing the importance of sustainability in public service.
Energy Efficiency Upgrades for National Capital Region
In addition to the energy supply contract, Constellation has secured a $172 million Energy Savings Performance Contract to implement efficiency measures at five federal facilities in the National Capital Region. These upgrades will include state-of-the-art LED lighting systems, modernized HVAC equipment, window replacements, and building weatherization.
Notably, four of these facilities—located in Washington, D.C.—will transition from steam power to electricity through the installation of electric boilers and heat pumps. This shift represents one of the most significant energy conservation measures in the project, reducing emissions while cutting operational costs.
Construction is set to begin this month and will span approximately 42 months. Constellation will also provide ongoing training and preventive maintenance to ensure the upgrades achieve their full potential in terms of energy savings and environmental benefits.
A Step Toward Carbon-Free Energy
This deal aligns with Constellation’s broader goal of achieving 100% carbon-free energy generation by 2040. The company, which operates the largest fleet of nuclear reactors in the U.S., is at the forefront of advancing clean energy technology and ensuring its accessibility to public and private sectors.
The partnership follows Constellation’s recent agreement with Microsoft, in which the company committed to powering the tech giant’s operations with nuclear energy. Combined, these efforts underscore a growing trend of leveraging nuclear power to meet ambitious sustainability targets.
Accelerating the Clean Energy Transition
The Constellation-GSA partnership sets a precedent for how governments and private entities can collaborate to achieve cleaner energy systems. By securing long-term, emissions-free power and implementing energy-saving technologies, this agreement showcases the transformative potential of sustainable energy procurement on a national scale.
Discover more from Business-News-Today.com
Subscribe to get the latest posts sent to your email.