U.S. Treasury and DOE Award $550 Million for Renewable Energy Projects
September 23, 2009
With a limited appetite for federal tax credits in financial markets, direct federal payments are helping to spur new renewable energy facilities throughout the country. Enlarge this photo.
The U.S. Treasury Department and DOE have newly awarded $550 million in American Recovery and Reinvestment Act cash assistance to renewable energy developers in lieu of earned federal tax credits. The awards are designed to provide additional upfront capital for renewable energy projects, enabling companies to create jobs and begin construction on projects that may have been stalled until now. This second round of cash payments, announced on September 22, follows the $502 million announced by DOE and Treasury on September 1, bringing the current total to more than $1 billion. Overall, 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.
The 25 projects qualifying for this round include five large wind farms, as well as biomass, solar, and geothermal energy facilities, plus a project that uses microturbines for combined heat and power. Awards went to projects located in California, Colorado, Florida, Hawaii, Iowa, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, South Dakota, Texas, and Vermont. The largest is the Pyron Wind Farm in Roscoe, Texas, which will receive nearly $122 million. The 166 turbines at this E.ON Climate & Renewables site will generate 249 megawatts (MW) of power. Other large projects include the 180-MW Bull Creek Wind Farm in Borden County, Texas, which will receive nearly $91.4 million; the 160-MW Barton Wind Farm in Kinsett, Iowa, which will receive more than $93.4 million; the 146-MW Farmers City Wind Farm in Tarkio, Missouri, which will receive nearly $85 million; and the 120-MW Barton Chapel Wind Farm near Jacksboro, Texas, which will receive nearly $72.6 million. See the DOE press release.