DOE Will Provide US $30B in Loan Guarantees for Renewable Energy Projects

U.S. Energy Secretary Steven Chu said that Department of Energy (DOE) will provide up to US $30 billion in loan guarantees, depending on the applications and market conditions, for renewable energy projects. Another $750 million will support several billion dollars more in loan guarantees for projects that increase the reliability, efficiency and security of the nation’s transmission system.

The two new loan guarantee solicitations are being funded partly through the Recovery Act and partly through 2009 appropriations. The lending authority includes up to $8.5 billion in lending authority supported by 2009 annual appropriations for renewable energy as well as up to $2 billion in subsidy costs, provided by the Recovery Act, to support billions in loans for renewable energy and electric power transmission projects.

It also includes up to $500 million in subsidy costs to support loans for cutting edge biofuel projects funded by the Recovery Act and up to $750 million in subsidy costs, provided by the Recovery Act, to support loans for large transmission infrastructure projects in the U.S. that use commercial technologies and begin construction by September 30, 2011.

The two solicitations mark the sixth and seventh rounds of solicitations by the Department’s Loan Guarantee Program, which encourages the commercial use of new or improved energy technologies to help foster clean energy projects.

Applications will be accepted over the next 45 days.

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