DOE, New York State form partnership to finance large-scale renewable projects
The U.S. Department of Energy and the New York State Energy Research and Development Authority (NYSERDA) are working together to finance large-scale renewable projects.
The memorandum of understanding between the two will allow New York State to leverage the DOE Loan Programs Office (LPO) and strengthen the cooperation between federal and state energy departments. The LPO Title 17 Clean Energy Financing Program can finance projects in the United States that support clean energy deployment and energy infrastructure reinvestment to reduce greenhouse gas emissions and air pollution.
Through this new partnership, NYSERDA and DOE have defined a process to facilitate the review of applications from utility scale solar, onshore, and offshore wind clean energy projects applying for financing through the LPO. The LPO may provide financing to eligible projects for up to 80 percent of eligible project costs.
“To ensure New York achieves a zero-emissions grid, the financing process for clean energy projects must be streamlined,” New York Gov. Kathy Hochul said. “This new partnership between New York State and the U.S. Department of Energy illustrates a shared belief among New York and Federal leaders that time is of the essence. We must pave a clear path forward for clean energy.”
The upshot of this is that the partnership will enable clean energy projects in New York to access alternative financing options. This is important considering the current inflationary and high interest rate environment. Plus, any cost savings that could benefit projects from accessing LPO loans could be shared with New York State ratepayers and potentially enable billions of dollars in savings.
There are four project categories within this financing program, including:
• Innovative Energy, which is financing for projects that deploy new or significantly improved technology that is technically proven but not yet widely commercialized in the United States;
• Innovative Supply Chain, which is financing for projects that employ a new or significantly improved technology in the manufacturing process for a qualifying clean energy technology or for projects that manufacture a new or significantly improved technology;
• State Energy Financing Institution (SEFI)-Supported, which is financing for projects that support deployment of qualifying clean energy technology and receive meaningful financial support or credit enhancements from an entity within a state agency or financing authority; and
• Energy Infrastructure Reinvestment (EIR), which is financing for projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations or upgrade operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or greenhouse gas emissions.
“This partnership highlights the power of federal and state collaboration as we work toward achieving key climate goals. Together, DOE and NYSERDA are charting a viable pathway for federal programs to help reduce overall costs for New York’s ratepayers in deploying these clean energy projects,” NYSERDA President and CEO Doreen M. Harris said.
