Renewable Projects Receive $502 Million in Federal Funding in Lieu of Tax Credits

The U.S. Energy and Treasury Departments on Tuesday announced stimulus fund awards worth $502 million to energy companies to spur investments in renewable projects and provide “cash assistance” in lieu of earned federal tax credits.

Of the 12 projects selected in the first round of awards, 10 are wind power facilities and two use solar power. The largest award—$114 million—went to the Penascal Wind Farm in Sarita, Texas, an 84-turbine project owned by Iberdrola Renewables, which has a nameplate capacity of 202 MW.

Iberdrola Renewables, a Spanish company, will also receive $59 million—the second-largest award—for its 102-MW Locust Ridge II wind farm in Shenandoah, Penn. The two solar projects, a 100-kW solar PV system in Colorado and a 420-kW solar power system Connecticut, together received less than $2.8 million. The average award was $42 million.

“This renewable energy program will spur the manufacture and development of clean energy in urban and rural America, allowing us to protect our environment, create good jobs and revitalize our nation’s economy,” said Treasury Secretary Tim Geithner.

Created under Section 1603 of the American Recovery and Recovery Act, the program is eventually expected to provide more than $3 billion in financial support for renewable projects by providing direct payments in lieu of 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 over the life of the program, the DOE said.

The Treasury Department opened the application process for the 1603 program on July 31, 2009, and made its first awards on Tuesday—in half the statutorily mandated turnaround time of 60 days. Additional awards under the program are expected to be announced in the coming weeks.

Following is a list of the DOE’s awards ranked by amount.

Source: DOE