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

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.

RELATED ARTICLES

Renewable energy jobs

Global Renewable Energy Employment Surges 18 Percent to 7.7 Million

Andrew Burger, Correspondent Ongoing growth in renewable energy investment and deployment is creating jobs worldwide — and lots of them. This job growth is helping governments address a fundamental economic problem plaguing developed and developing cou...
GE Digital Wind Farm

GE Introduces Digital Wind Farm that Could Boost Production 20 Percent, Re-ignites Alstom Buyout Talk

Meg Cichon, Associate Editor General Electric (GE) is pushing its wind farms to join the big data revolution with its new Digital Wind Farm, announced this week at Windpower 2015 in Orlando, Fla. amidst talk that its $15 billion offer to buy Alstom’s p...
Wind turbine

Bigger Wind Turbine Towers = Bigger US Development Opportunity

Meg Cichon, Associate Editor Wind energy already accounts for about 5 percent of U.S. electricity generation, which crowned the nation as the global leader in wind production late last year. There is now more than 65 gigawatts (GW) of capacit...
Wind turbines

Wind Energy Is Crucial in the Fight Against Climate Change, Says US Energy Secretary

Meg Cichon, Associate Editor

The opening general session at Windpower 2015 marked the first appearance by an U.S. energy secretary at the show, “which is surprising,” said current energy secretary Ernest Moniz, “but better late than never.”

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 3
1505REW_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 Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

Energy Storage USA 2015

Energy Storage USA is the leading conference in the United States focuse...

Wind Power Central America

Wind power projects are expected to reach 46GW of total installed capaci...

COMPANY BLOGS

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Deadline for Inclusion in Solar Power World's Top Solar Contractors...

UPDATE: The official deadline for the Solar Power World T...

Are You Ready for a Natural Disaster?

Guest post by Jenna Clarke  Living in the Shenandoah Valley of Virg...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS