U.S. takes applications for renewables loan guarantees, including hydro

The Department of Energy announced deadlines for applications to obtain up to $750 million in federal loan guarantees for renewable energy projects including hydropower. Applications may be submitted on 10 dates ranging from Nov. 23, 2009, to Jan. 6, 2011.

The loan guarantees are being provided from economic stimulus funds to accelerate the development of new renewable energy capacity, including hydropower, DOE announced Oct. 7. (HydroWorld 10/8/09) The department said loan guarantees could support as much as $4 billion to $8 billion in lending to eligible projects.

Applications are to be made by prospective lenders for renewables projects rather than by the developers themselves. Unlike earlier guarantees for new or innovative technologies that are not in general use, the latest loan guarantees are only for commercial technology renewable generation projects that can begin construction by Sept. 30, 2011.

A range of renewables technologies are eligible, with an illustrative list that includes “hydropower facility, including incremental hydropower.”

The loan guarantee percentage will be no more than 80 percent of the maximum aggregate principal and interest during a loan term. The project must have a credit rating of at least BB or an equivalent with a nationally recognized credit rating agency.

Lenders are to submit applications in two parts. Part 1 submissions, with a summary level description of the project, may be submitted any time before the Part 2 submission is made. Submissions will be reviewed on a continuous basis after they are received.

Applicants who have made Part 1 submissions will be notified when to proceed with Part 2 submissions. Due dates for Part 2 submissions are: Nov. 23, 2009; Jan. 7, Feb. 22, April 8, May 24, July 8, Aug. 23, Oct. 7, and Nov. 22, 2010; and Jan. 6, 2011.

Solicitation documents may be obtained from the loan guarantee Internet site under www.lgprogram.energy.gov/CTRE.pdf. For information, see the website, www.lgprogram.energy.gov.

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