The Biden administration said Nov. 15 at the United Nations Climate Change Conference that the federal government reached its first memorandum of understanding with a utility to work toward 100% carbon-free electricity.
The administration plans to partner with Entergy Corp. subsidiary Entergy Arkansas LLC to supply carbon-free energy to federal agencies and other customers in the state. At least 50% of that energy will be provided on a 24/7 basis, in line with the requirements of a 2021 executive order from President Joe Biden on clean energy industries, according to the announcement from the U.S. General Services Administration.
The GSA is the primary agency that procures electricity for the federal government.
The MOU between Entergy Arkansas and the GSA will help federal agencies in Arkansas meet the goals of the president's prior executive order, including sourcing 100% of the federal government's electricity from carbon pollution-free sources by 2030.
Under the MOU, Entergy Arkansas, one of the top 10 electricity suppliers for the federal government, will allow its public- and private-sector customers to use regionally sourced nuclear and renewables, including solar, hydro or wind.
"This MOU marks a historic step forward and demonstrates how the federal government is partnering in initiatives to spur demand for carbon pollution-free electricity — when and where people need it," GSA Administrator Robin Carnahan said in a Nov. 15 statement.
The new program is "one of the world's first" electricity utility tariffs that supports 24/7 hourly matching of carbon-free electricity with customer electricity needs, using existing and new carbon-free generation sources, according to the announcement. The program is expected to be fully implemented by 2030, according to the MOU.
More typical 100% renewable energy programs only ensure that an entity's annual energy usage is matched with renewable energy.
Once the program is fully developed and approved, Entergy Arkansas customers in public and private sectors are expected to have carbon-free electricity generation that is cost-effective and "matches their electricity consumption for all hours of the day," according to the announcement.
"We hope this partnership between GSA and Entergy Arkansas will serve as a model for other federal agencies and suppliers to accelerate the transition to clean energy," said Andrew Mayock, the Biden administration's chief sustainability officer.
Entergy Arkansas provides electricity to about 728,000 customers in 63 counties across the state. Parent company Entergy Corp., headquartered in Louisiana, serves about 3 million customers in Arkansas, Louisiana, Mississippi and Texas.
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