DOE and U.S. Treasury Award $502 Million for Renewable Energy Projects
September 2, 2009
Although the federal payments in lieu of tax credits could support a variety of renewable energy projects, most of the funds are currently going toward wind power facilities.
The U.S. Treasury Department and DOE jointly announced $502 million in American Recovery and Reinvestment Act cash assistance on September 1 to energy companies in lieu of earned federal tax credits. This first round of awards is designed to create additional upfront capital, enabling companies to create jobs and begin construction on projects that may have been stalled until now. Ultimately, the program is expected to provide more than $3 billion in financial support for clean energy projects by providing direct payments rather than federal tax credits. These payments will support an estimated 5,000 biomass, solar, wind, and other types of renewable energy production facilities in all regions of the country.
Of the 12 projects selected in this initial phase, 10 are wind power facilities and 2 use solar power. The largest is the Peñascal Wind Farm in Sarita, Texas, which will receive $114 million. The 84 turbines at this Iberdrola Renewables site near the Texas coast will generate 202 megawatts of power. Another Iberdrola site, the 102-megawatt Locust Ridge II in Shenandoah, Pennsylvania, will receive $59 million. Also selected were wind power projects in Maine, Minnesota, New York, Oregon, and a second facility in Pennsylvania. In addition, a 100-kilowatt solar photovoltaic system in Boulder, Colorado, won an award, as did a 420-kilowatt solar power system in Danbury, Connecticut. See the DOE press release, the Iberdrola Renewables press releases on the wind farms in Texas and Pennsylvania, and Web postings on the solar projects in Colorado and Connecticut from Lighthousesolar and American Capital Energy, respectively.