Constellation Wins $1B+ Federal Contract to Provide Clean Energy and Efficiency Upgrade

CSR/ECO/ESG

Constellation has secured a landmark contract with the U.S. General Services Administration (GSA), worth over $1 billion, to supply clean energy and implement energy efficiency upgrades across several federal facilities. This historic deal marks a significant step toward advancing the U.S. government’s clean energy goals and enhancing the energy performance of federal buildings.

Energy Supply Agreement

Under the 10-year, $840 million contract, Constellation will provide over 1 million megawatt hours (MWh) of carbon-free energy annually, starting in 2025. The electricity will primarily come from nuclear power, with plant efficiency upgrades, known as “uprates,” helping to ensure reliable and long-term energy delivery. This contract, the largest in GSA’s history, underscores the government’s commitment to investing in nuclear energy as part of its clean energy strategy.

Joe Dominguez, Constellation’s President and CEO, highlighted the importance of this agreement, noting it signals growing support for reliable nuclear energy and emphasizes the need for extending the operational life of nuclear plants.

Energy Efficiency Upgrades

In addition to the energy supply agreement, Constellation was awarded a $172 million Energy Savings Performance Contract (ESPC) to implement significant energy-saving upgrades across five federal buildings in Washington, D.C., and Maryland. The key improvements include:

  • LED Lighting and Weatherization: Enhancing energy use and reducing emissions.
  • HVAC and Control Systems: Installing modernized heating and cooling systems, along with electric heating replacements.
  • Electric Boilers and Heat Pumps: Replacing steam-based heating with electric systems in four buildings for better energy efficiency.

Contract Scope and Timeline

The contract spans multiple states, including Illinois, Maryland, New Jersey, Pennsylvania, and Ohio, benefiting various federal agencies such as the Department of Veterans’ Affairs, the National Park Service, and the Department of Transportation. Construction on the energy upgrades will begin this month and is expected to be completed in approximately 42 months.

The energy savings and efficiency improvements will help federal buildings achieve long-term cost reductions, while also supporting the U.S. government’s push toward decarbonization.

Strategic Importance

This contract not only strengthens the role of nuclear power in achieving carbon-free energy goals but also ensures that taxpayers benefit from cost-competitive, stable energy pricing. Robin Carnahan, GSA Administrator, emphasized that this deal accelerates the U.S. government’s transition to a clean energy future while mitigating future price fluctuations.

Constellation’s partnership with the GSA marks a significant move toward a sustainable energy future, demonstrating how strategic investments in clean energy and energy efficiency can help reduce emissions and improve energy security for federal operations.

Image by Gerd Altmann from Pixabay

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