PF Archive

North American Power & Renewables: The DoE loan programme

17 12 2010

The US Department of Energy’s Loan Programs Office (LPO) grew rapidly this year and is now one of the largest and, most successful, clean energy project finance teams in the world. When the Obama administration took office, the DOE loan program had not issued a single loan guarantee since its inception in 2005. Since then, the office has invested in 21 projects, 14 of which were supported in the last year alone. The office has committed or closed nearly $25 billion in loans and loan guarantees, repre­sent­ing more than $40 bil­lion in total project costs. There are also a large number of additional trans­actions in active negotiation. The results speak for themselves. The projects supported to date will put more than 57,000 Americans to work across 19 states and will avoid nearly 40 million tons of US carbon dioxide emissions per year – the same as taking 25 conventional coal plants offline. The loan programmes have become an essential tool in moving the US to­wards a clean energy economy. The Loan Programs Office worked hard this year to improve our pro­cesses. During 2010, we more than doubled our number of pro­fessionals. We simpli­fied core programmatic docu­ments like solicitations and term sheets, launched a new web site (http://lpo.energy.gov), and opened an online application sub­mission portal. In addition, LPO simplified the pro­curement process, reconfigured our data tracking efforts, and com­pletely overhauled the speed, frequency, and transparency with which we commu­nicate with applicants. By better leveraging our resources and re-engineering the application pro­­cess,...