Loan program to boost energy efforts

By Kevin Matthews
Vice President, Energy & Environment Sector

If not for an offer of up to $30 billion in loan guarantees from the U.S. Department of Energy, efforts toward the Obama Administration’s goal of doubling renewable electricity generation over the next three years would die.

The loan guarantees allow access to capital for advanced renewable project development and will therefore most certainly accelerate the process. According to a press release from the department, they’re funded partly through the Recovery Act and partly through 2009 appropriations. 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 department's Loan Guarantee Program affords banks more confidence and provides borrowers low interest rates and easier payment terms regardless of the fledgling economy, which are crucial elements to get for-profit companies to embark on energy efficiency efforts that will later lead to cost savings but require investment at the outset.

As U.S. Energy Secretary Steven Chu said: “These investments will be used to create jobs, spur the development of innovative clean energy technologies, and help ensure a smart, strong and secure grid that will deliver renewable power more effectively and reliably. We also need a grid that can move clean energy from the places it can be produced to the places where it can be used and that can integrate variable sources of power, like wind and solar.”

Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.