Washington DC — The U.S. Department of Energy (DOE) has announced it will provide up to $750 million in funding from the American Recovery and Reinvestment Act to help accelerate the development of renewable energy generation projects. This funding will cover the cost of loan guarantees which could support as much as $4 to 8 billion in lending to eligible projects, and the Department will invite private sector participation to accelerate the financing of these renewable energy projects.
The Recovery Act created a new Section 1705 under Title XVII of the Energy Policy Act of 2005 (Title XVII) for the rapid deployment of renewable energy projects and related manufacturing facilities, electric power transmission projects and leading edge biofuels projects that commence construction before September 30, 2011. The new Financial Institution Partnership Program (FIPP) offers a streamlined set of standards designed to accelerate DOE's loan guarantee underwriting process and leverage private sector expertise and capital for the efficient and prudent funding of eligible projects.
This first solicitation under the new program will seek loan guarantee applications for conventional renewable energy generation projects, such as wind, solar, biomass, geothermal and hydropower. Past solicitations for renewable energy generation projects have focused on loan guarantee applications using new or innovative technologies not in general use in the marketplace.
Under this first FIPP solicitation, proposed borrowers and project sponsors do not apply directly to DOE; instead they work with financial institutions satisfying the qualifications of an eligible lender which may apply directly to DOE to access a loan guarantee. The solicitation invites applications from eligible lenders for partial, risk-sharing loan guarantees from DOE.
Read more information on this solicitation and the Department's Loan Guarantee Program at www.lgprogram.energy.gov.