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Constellation Energy announced yesterday that it had secured two contracts with the US General Services Administration (GSA) worth over $1 billion.
Constellation was awarded an $840 million contract to supply electricity from nuclear and other renewable energy sources. An additional $172 million award covers the installation of energy efficiency solutions at five GSA-owned facilities in the National Capital Region (D.C. and several counties in Maryland and Virginia).
“How Things Have Changed”
The record-setting deal, a 10-year contract valued at $840 million, marks the GSA’s most significant energy procurement recorded. Beginning this year, Constellation will provide over 1 million megawatt hours (MWh) of energy annually to more than 13 agencies that own or operate facilities in Illinois, Maryland, New Jersey, Pennsylvania, and Ohio.
President and CEO of Constellation, Joe Dominguez, said in a statement, “This agreement is another powerful example of how things have changed.” He noted that the US government joins other major entities like Microsoft in supporting nuclear energy investments.
Aerial view of the Constellation Crane Clean Energy Center in Middletown, PA. Image: Constellation Energy.
Public attitudes toward nuclear power have shifted, too. A Gallup poll in 2023 and a Pew Research poll in 2024 showed a rise in US public support for nuclear power. Pew Research found that among Americans they polled, “56% say they favor more nuclear power plants to generate electricity.”
The data appetite for modern technologies like electric vehicles and artificial intelligence is accelerating demand for construction opportunities in the energy sector and data centers. In the December Construction Economy Snapshot, Michael Guckes, ConstructConnect’s Chief Economist, reported that Electrical Power Infrastructure was up 62 percent through November 2024, placing it in the top five large-dollar project categories year-to-date.
Five Buildings to Get Energy Upgrades
In addition to the energy supply contract, Constellation won a $172 million Energy Savings Performance Contract (ESPC). Federal agencies can source energy savings and facility improvements through ESPCs without upfront capital costs or special appropriations from Congress.
The contract with Constellation will focus on energy conservation measures at five GSA-owned buildings in Washington, D.C., and College Park, MD. Planned upgrades include installing LED lighting, weatherization improvements, window replacements, HVAC, and building control systems to enhance energy efficiency and reduce emissions.
Four buildings in D.C. will transition from steam power to electric systems, incorporating electric boilers and heat pumps. Construction for the energy efficiency upgrades is expected to start this month and last approximately 42 months. Constellation will provide ongoing maintenance and training for the newly renovated facilities.
Constellation Energy Corporation provides nuclear, hydro, wind, and solar energy. Its facilities provide power to more than 16 million homes and businesses. The Maryland company supplies 10 percent of all clean power on the US grid.
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