Congress allots US$170M in credit subsidy funding for U.S. DOE's Section 1703 loan-guarantee program, which will provide an estimated US$1B to US$1.7B in loan guarantees to clean energy technology projects, says DOE
August 18, 2011
– Congress has allotted the U.S. Dept. of Energy (DOE) US$170 million in funding for its Section 1703 loan-guarantee program, which supports clean energy technology, reported North American Windpower on Aug. 18.
The allocation, in the form of credit subsidy funding, is enough to provide approximately $1 billion to $1.7 billion in loan guarantees to these projects, depending on their average credit-subsidy score, the DOE estimated.
Last March, Congress approved a continuing resolution to provide the 1703 program with credit subsidy funding for the first time. However, the program is set to expire Sept. 30, North American Windpower reported.
It is unknown how many of the projects are for wind-generated power, or for other forms of alternative energy.
Credit subsidy cost, which is a reserve set by the federal government to cover the risk of estimated shortfalls in loan repayments, is influences primarily by the probably of default and the recovery after default, reported American Windpower.
Section 1703 of Title XVII of the Energy Policy Act of 2005 authorizes the DOE to support innovative clean energy technologies that are typically unable to obtain conventional private financing due to high technology risks, according to the DOE Loan Programs Office’s website.
The primary source of this article is North American Windpower, Waterbury, Connecticut, on Aug. 18, 2011.