Accelerating the Deployment of Clean Energy Infrastructure Statewide
The Virginia Clean Energy Innovation Bank (VCEIB) is tasked with accelerating the deployment of clean power generation and energy infrastructure across the commonwealth. VCEIB will mobilize public and private capital to address critical financing gaps in the clean power generation and infrastructure sectors, supporting the goals outlined in Virginia's All-American, All-of-the-Above Energy Plan.
In addition to direct VCEIB funding, the Bank manages other programs that fund innovative energy solutions in a variety of capacities. Current programs managed by the bank include:
Virginia Grid Reliability Improvement Program (VGRIP) VGRIP supports a wide range of projects that improve grid reliability. Eligible initiatives include reducing outage duration and frequency, enhancing grid modeling for strategic investments, modernizing infrastructure, addressing outdated components, and supporting workforce development in the energy sector. Learn more.
A Public & Private Capital Investment Hub
VCEIB will serve as a hub for financing cleaner, more reliable energy infrastructure throughout the commonwealth. It will connect projects and companies with capital from federal, state, and private funding sources. The bank will partner with a range of other state agencies and programs to identify investment opportunities and will be seeded with $10 million through the amounts as allocated in the 2024 State Budget. However, because of the economies of scale by housing it within the Department of Energy, only $750,000 of the $2 million set aside for administrative purposes is slated for use, leaving the remaining $9.25 million used for investments into clean energy infrastructure projects.
Creating Jobs. Reducing Energy Costs. Enhancing Grid Resilience & Security.
The Virginia Clean Energy Innovation Bank will prioritize projects that not only create well-paying jobs for Virginians but also reduce energy costs and enhance the resilience and security of our energy grid. By strengthening the commonwealth's competitiveness in both national and global markets, the bank aims to promote the growth of domestic supply chains while accelerating the transition to a diversified portfolio of clean power generation, including advanced nuclear and innovative grid modernization.
Included below are frequently asked questions about the Virginia Clean Energy Innovation Bank ("VCEIB"). If you have additional questions to consider for this page, please email energybank@energy.virginia.gov
1. What is VCEIB?
VCEIB is a new program within the Virginia Department of Energy tasked with accelerating the deployment of clean power generation and energy infrastructure across the Commonwealth. VCEIB will mobilize public and private capital to address critical financing gaps in the clean power generation and energy infrastructure sectors, supporting the goals outlined in Virginia's All-American, All-of-the-Above Energy Plan.
2. Why is Virginia launching VCEIB?
Virginia's All-of-the-Above Energy Plan will ensure that Virginian's enjoy a safe, clean and affordable energy future. Meeting the goals of Virginia's Energy Plan, however, requires that we mobilize a significant amount of public and private capital for projects across the Commonwealth. Too often, there are market challenges that prevent capital from flowing into those projects. VCEIB will fill in gaps in the market, addressing unmet needs and mobilizing financing from federal, state, and private sources. With an influx of public and private capital available for these projects, VCEIB will ensure that Virginia takes advantage of the opportunity to finance clean power generation and energy infrastructure projects.
3. What types of projects will be eligible for funding under VCEIB?
Projects that support the goals of Virginia's Energy Plan, such as clean power generation and energy infrastructure, will be eligible for funding. For example, projects may include advanced nuclear energy innovations, solar supply chain investments, microgrid installations, grid modernization, battery storage deployments, and more.
4. What forms of funding will VCEIB provide to projects?
VCEIB will provide loans, credit enhancements, and other forms of support, with a focus on financial instruments that recycle such that the bank can continuously reinvest the funds in additional projects across the Commonwealth.
5. Who will be able to access funding?
VCEIB is making funding available to organizations, including small businesses, large corporations, and non-profit entities. While VCEIB does not anticipate that funding will be made available to individuals, the State Energy Office is creating programs to provide funding to individuals, such as Virginia's Solar for All program.
6. How will VCEIB decide which projects to fund?
VCEIB will run a rigorous, robust investment review process to ensure that taxpayer funds are invested wisely. The investment review process will consider typical factors such as the project's operations, financials, and risks in addition to factors such as the extent to which the project supports the goals of Virginia's Energy Plan and the extent to which the project creates jobs, reduces energy costs, enhances grid resiliency, strengthens the Commonwealth's economic competitiveness, and builds domestic supply chains.
7. How is VCEIB being funded?
VCEIB will be seeded with $10 million allocated in the 2024 State Budget, $2 million of which is set aside for administrative purposes. To use taxpayer funds efficiently, VCEIB will only use $750,000 for administrative purposes, leaving the remaining $9.25 million for investments into clean power generation and infrastructure projects.
8. How will VCEIB mobilize public and private capital?
The bank will use a variety of strategies to mobilize public and private capital for projects across the Commonwealth. For example...
- With the bank in place, the State Energy Office will seek the designation as a "State Energy Financing Institution" ("SEFI") from the U.S. Department of Energy's Loan Programs Office, which will unlock the bank's ability to leverage public and private capital for clean power generation and energy infrastructure projects.
- The bank will help project sponsors navigate to sources of funding for clean power generation and energy infrastructure that are already available across the state government.
- The bank will work with commercial banks, infrastructure funds, and other private-sector investors to create new pathways for private capital to flow into the Commonwealth.
For general questions regarding VCEIB, please contact energybank@energy.virginia.gov
For media inquiries, please contact press@energy.virginia.gov
"The Virginia Clean Energy Innovation Bank embodies our commitment to a diversified energy portfolio. By supporting projects at various stages of commercialization, we're not just backing established technologies -we're nurturing the innovations that will shape Virginia's energy landscape for decades to come. This approach ensures we're building a resilient energy sector that can adapt to future challenges and opportunities."
"The Virginia Clean Energy Innovation Bank is more than just a funding mechanism-it's a catalyst for economic transformation. By strategically aligning public and private resources, VCEIB will help position Virginia as a leader for clean energy innovation. This initiative will attract cutting-edge companies, foster homegrown startups, and incentivize a skilled workforce ready for the jobs of tomorrow."
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