The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Through Recovery Act, DOE Guarantees Loan for Giant Caithness Wind Farm

U.S. Energy Secretary Steven Chu this week announced a conditional commitment to provide a partial guarantee for a $1.3 billion loan in support of Caithness Energy's 845-MW Shepherd's Flat project in eastern Oregon. The $1.3 billion loan is expected to be funded by a group of institutional investors and commercial banks led by Citi, as lender-applicant and joint lead arranger, and three other joint lead arrangers: the Bank of Tokyo-Mitsubishi UFJ, Ltd., RBS Securities and WestLB Securities, Inc.

Caithness Shepherds Flat is the largest project to date to receive an offer of a conditional commitment for a loan guarantee under the Financial Institution Partnership Program (FIPP), a Department of Energy (DOE) initiative supported by the Recovery Act. Under a FIPP financing, DOE guarantees up to 80% of a loan provided to a renewable energy project by qualified financial institutions.

“Thanks to the Recovery Act, we are creating the clean energy jobs of the future while positioning the U.S. as a world leader in the production of renewable energy,” said Chu. “This project is part of the Administration’s commitment to doubling our renewable energy generation by 2012 while putting Americans to work in communities across the country.”

The project will be the first in North America to use GE’s 2.5xl model (2.5 MW) wind turbines, which have been deployed in Europe and Asia. GE will supply the turbines under a $1.4 billion contract announced late last year. GE Financial Services is also investing in the project. Once completed, the project will sell 100% of the power generated to Southern California Edison through 20-year fixed price power purchase agreements.

The wind facility will avoid 1.2 million tons of carbon dioxide per year, equivalent to the annual greenhouse gas emissions from 212,141 passenger vehicles, according to DOE. Caithness says the project will create 400 construction jobs, followed by 35 permanent positions on site.

The 338 turbines will be installed in 2011 and 2012. Currently the largest wind farm is E.ON Climate and Renewables’ 781.5-MW facility located near Roscoe, Texas.

DOE, through the Loan Programs Office, has issued loan guarantees or offered conditional commitments for loan guarantees to support 15 clean energy projects, resulting in $15.9 billion in total loan guarantees.

This article first appeared in Wind Energy Weekly, and was republished with permission from the American Wind Energy Association.

Untitled Document

RELATED ARTICLES

How Wind Turbines are Becoming Photocopiers – and the Cost to Investors

Guy Auger, Greensolver We all know that the wind turbine market in Europe is an oligopoly. Power resides in the hands of very few players — and, in the offshore space, just five manufacturers (OEMs) account for 100 percent of the turbines that we...

Siemens receives onshore wind orders for UK and Ireland

Diarmaid Williams

Siemens Wind Power and Renewables Division has been awarded orders, which when in place, will be capable of delivering power to over 100,000 households across Britain and Ireland.

German onshore wind growth slows

Tildy Bayar

US Clean Power Plan Could Include Carbon Trading

Mark Drajem, Bloomberg Some businesses that back President Barack Obama’s plan to curb greenhouse gases are making a late lobbying push to add an element similar to a cap-and-trade program. With the administration set this week or next to unveil ...
Carl is Editor & Publications Manager at the American Wind Energy Association, where has worked since 2006. At AWEA he oversees AWEA's online and print publications including the Wind Energy Weekly, Windpower Update, and other products. He has wor...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

StartUp Green

AREI, American Renewable Energy Institute, in partnership with ...

AWEA Wind Resource & Project Energy Assessment Seminar 2015

Join the wind industry's leading owners, project developers, and wind as...

COMPANY BLOGS

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

Koch Professor drops his Koch title, still makes same errors plus s...

The Koch Professor’s title isn’t the only thing that’s...

Fact Check: AWEA represents American wind power

The American Wind Energy Association (AWEA) is proud of its members for ...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS