What is Next for Renewable Energy Project Financing?

By Brian Seaman

Cleantech Law Partners

The Treasury § 1603 program was authorized in 2009 as part of the American Recovery and Reinvestment Act, and supported $38.6B of investment in renewable power development, and 16.9 GW of new installed renewable energy .  But with the 2011 expiration of the program – and the associated grants of up to 30% of qualifying project costs – developers, investors, and environmentalists are looking to the federal government to make minor, common-sense changes to current tax code to accelerate private investment in the renewable energy industry.  The most promising changes which have been proposed would affect existing investment vehicles like Master Limited Partnerships and Real Estate Investment Trusts.

Life After the 1603 Grant: The Road Ahead

In 2009, the federal government passed ARRA, and the 1603 Investment Tax Credit (ITC) cash grant program with it. The program effectively transformed what was traditionally an investment tax credit into a cash grant, awarded by the treasury, within 60 days of commercial operation. It was perhaps the single most important piece of legislation for solar in recent history that spurred huge growth in the sector, recently estimated to be 69 percent year over year. In January 2012, the 1603 ITC cash grant expired as did the ability for developers and investors to secure the cash grant in lieu of a tax credit.

Notice of funding availability for the Rural Energy for America Program

This NOFA announces the acceptance of applications under the Rural Energy for America Program (REAP) for Fiscal Year 2012 for financial assistance as follows: grants, guaranteed loans, and combined grants and guaranteed loans for the development and construction of renewable energy systems and for energy efficiency improvement projects; grants for conducting energy audits; grants for conducting renewable energy development assistance; and grants for conducting renewable energy system feasibility studies. The Notice also announces the availability of $25.4 million of Fiscal Year 2012 budget authority to fund these REAP activities, which will support at least $12.5 million in grant program level and up to approximately $48.5 million in guaranteed loan program level.

Thailand energy policy: three-in-one master plan almost done

The government is about to complete the first national energy master plan, which will incorporate three existing energy-related plans.

Sittichod Wantawin, the director of energy conservation and renewable energy policy under the Energy Policy and Planning Office (EPPO), says the new energy development plan will incorporate the power development plan (PDP), the renewable energy development plan (REDP) and the energy conservation plan into a single development plan.