DOE Wrapping Up Renewable-Energy Project Loan Guarantee Program
The U.S. Department of Energy said Tuesday that it has stopped accepting applications for loan guarantees to help finance new solar, wind or other renewable energy facilities and suggested there would be winners and losers among companies that have applications pending. The loan guarantee program for renewable energy generation projects, called "Section 1705," after the portion of the 2009 Recovery Act that supports it, expires Sept. 30 and only projects that can start construction and close their loan guarantees by that date will be considered for a guarantee, Jonathan Silver, the head of the agency's loan programs office, wrote in a blog post on the DOE web site. The agency has issued roughly $1.6 billion in loan guarantees for 19 renewable energy projects to date. Loan guarantees for roughly $800 million in remaining funds will be issued to companies that have already applied, whose applications are "farthest along in the process," and whose projects are most likely to meet the Sept. 30 construction deadline, Silver wrote. "Not all these projects will succeed by September 30th," he wrote. The DOE placed another group of applications "on hold" after determining that the projects were unlikely to meet the Sept. 30 deadline, Silver wrote. He added that if the program received more funding in the future, those applications could be revived. The DOE notified companies on Tuesday whether their applications would proceed or not, Silver wrote.
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