A wind energy developer has just received a $102 million loan guarantee to support its project in Maine. Yesterday the U.S. Department of Energy lent its financial support to Record Hill Wind LLC for its 50.6 megawatt project near Roxbury, Maine. The project's design includes 22 Siemens turbines and an 8 mile transmission line to interconnect with Central Maine Power's system. Born out of a partnership between Independence Wind LLC and Wagner Forest Management, the project also scored major financial support from the Yale University endowment fund.
Record Hill Wind's federal loan guarantee through the DOE further solidifies the project's financial footing. Department of Energy operates several loan guarantee programs; Record Hill's backstop comes courtesy of DOE's Section 1705 program, which is now ramping down. While the Section 1705 program may be a casualty of the federal budget, DOE's three loan programs have to date offered over $40 billion in support for 42 clean energy projects across the country.
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Showing posts with label 1705. Show all posts
Showing posts with label 1705. Show all posts
May 16, 2011 - DOE loan guarantee program ramping down
Monday, May 16, 2011
The U.S. Department of Energy's loan guarantee program for renewable energy is preparing to run out of funding and shut down. Last month, I noted how the Department's "1705" loan program uses loan guarantees to help energy projects get lower-cost financing. Through the 1705 program, created and funded through the 2009 federal stimulus act, the Department committed $11 billion to support 19 projects ranging from nuclear power to solar, wind to transmission, biofuels to energy efficiency. Continued funding for the loan guarantee program for 2011 was in doubt during the recent wrangling over the federal budget, but survived the cutting -- through September 30, 2011.
Now, DOE is preparing to close out the 1705 program. With stimulus act funding expiring September 30, 2011, DOE is pushing to get the funding out the door -- and to turn away applicants who are not yet far enough along in the process. Because project construction must also commence by September 30, DOE is screening out applicants it deems unlikely to meet that deadline. While DOE's other loan programs -- the 1703 program for certain clean technologies and the Advanced Technology Vehicle Manufacturing program for fuel-efficient transportation -- will remain in operation, the apparent end of the 1705 program will close the book on an innovative federal incentive for renewable energy development.
Now, DOE is preparing to close out the 1705 program. With stimulus act funding expiring September 30, 2011, DOE is pushing to get the funding out the door -- and to turn away applicants who are not yet far enough along in the process. Because project construction must also commence by September 30, DOE is screening out applicants it deems unlikely to meet that deadline. While DOE's other loan programs -- the 1703 program for certain clean technologies and the Advanced Technology Vehicle Manufacturing program for fuel-efficient transportation -- will remain in operation, the apparent end of the 1705 program will close the book on an innovative federal incentive for renewable energy development.
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