SHOW ME THE MONEY: DOE Offers $1.85 Billion in Solar Loan Guarantees
Saturday was a great day for solar energy: the DOE offered two conditional loan guarantee commitments:
- $1.45 billion loan guarantee to Abengoa Solar Inc. for the construction and start-up of a concentrating solar power (CSP) generating facility in Solana, Arizona and a
- $400 million loan guarantee to Abound Solar Manufacturing for the assembly of state-of-the-art thin-film, cadmium-telluride solar panels.
ABENGOA SOLAR: Once operational, the CSP plant will add 250 MW of capacity to the electrical grid using parabolic trough solar collectors and a six-hour thermal energy storage system (the first of its kind in the United States). The plant which will be about 70 miles southwest of Phoenix, will use mirrors to direct sunlight onto receiver tubes that will heat molten salt fluid to over 700°F. The system's heat will turn steam turbines and the thermal energy storage can provide power during cloudy days and evenings. The plant will supply power to approximately 70,000 homes through a long-term PPA with Arizona Public Service Company.
Abengoa Solar estimates the project will employ approximately 1,600 workers during construction, of which 80 will be permanent jobs. As an added benefit, two assembly factories will be constructed on the site, and a new mirror manufacturing facility will be needed to supply more than 900,000 mirrors to the plant.
ABOUND SOLAR: A $400 million conditional loan guarantee has been offered to Abound Solar Manufacturing for the assembly of state-of-the-art thin-film, cadmium-telluride solar panels. The assembly will take place in in Longmont, Colorado, and Tipton, Indiana. Abound estimates that the project will create approximately 2,000 jobs during construction, as well as 1,500 permanent jobs.
Abound’s manufacturing technology was jointly developed by NREL, Colorado State University, and the National Science Foundation and deposits thin films of cadmium-telluride onto glass panels. This technology reduces overall product costs and provides better film quality, efficiency and reliability. Abound anticipates that it will produce millions of solar panels annually (enough panels to support up to 840 MW of new solar power per year) for less than it costs to produce crystalline silicon modules.
California Solar Initiative Handbook Update: Warranty Requirements
Morten Lund reports:
The California Solar Initiative Handbook was updated June 8, 2010. The new version can be found by clicking here.
Of particular interest are changes to Section 2.4 (warranty requirements). These changes are not necessarily substantively significant, but may require some manufacturers and contractors/installers to conform their warranty language in order to ensure continued eligibility for CSI payments.
SHOW ME THE MONEY: $1.37 BILLION LOAN GUARANTEE FOR CSP
DOE announced a conditional commitment for more than $1.37 billion in loan guarantees to BrightSource Energy, Inc. in support of the construction and start-up of three utility-scale concentrated solar power plants (CSP) in the Mojave Desert of southeastern California. The loan guarantee is funded under the American Recovery and Reinvestment Act and is predicated on BrightSource meeting financial and environmental requirements before closing on the loan. The Bureau of Land Management is leading a federal review of the project with support from DOE. Pending local, state, and federal regulatory approval, the new plants will generate approximately 400 megawatts (MW) of electricity using the company's proprietary technology. This output would nearly double the existing generation capacity of CSP facilities in the United States.
The three-plant Ivanpah Solar Complex will be located on federally owned land near the Nevada border and will be the world's largest operational concentrated solar power complex. BrightSource will use solar power tower technology, which uses thousands of flat mirrors, or "heliostats" to concentrate the sun's heat onto a receiver mounted at the top of a tower. Water pumped to the receiver is boiled into steam, which drives a turbine to produce electricity. The first Ivanpah plant is expected to begin construction in the second half of 2010 and come on line in 2012. Commercial operation for the second plant is slated for mid-2013, with the third plant following later that year. Once operational, the project will supply power to approximately 140,000 California homes.
Brightsource says the project will create 1,000 temporary jobs and 86 permanent jobs.
For additional information: see the DOE press releaseand DOE's Loan Guarantee Program Web site.
APS Announces Wind and Solar RFPs
On January 27, Arizona Public Service (APS) announced two requests for proposals (RFPs), one for new sources of photovoltaic (PV) solar energy and the other for Arizona-based wind.
The RFP for solar PV seeks proposals for projects that are between 15 and 50 megawatts and that employ commercially proven technology. APS's goal is to procure approximately 220,000 megawatt hours per year from this PV solicitation. Respondents are required to provide proposals for long-term power purchase agreements and/or "turn-key" agreements. The latter are sometimes called BTAs (Build-Transfer Agreements) or DBS (Design-Build-Sell) agreements--however named, APS anticipates that the agreement would require the developer to build the project and transfer it to APS when the project is completed. (As an aside, turn-key agreements that do not transfer the asset until commercial operation require very careful attention to "notice to proceed" clauses and conditions, lest defects in title, permits or some other matter thwart the closing and leave the developer's asset unsold or, worse, stranded.)
In its press release, APS encouraged parties to participate in the photovoltaic RFP bidder's conference on March 12, 2010. Additional information about the conference and the RFP is available online at www.aps.com/rfp. RFP submissions are due April 7, 2010.
On the wind side, APS is looking for wind projects between 15 and 100 megawatts located entirely within Arizona. Respondents are required to provide proposals for long-term power purchase and/or "turn-key" agreements. Interested parties are encouraged to participate in the Arizona-based wind RFP bidder's teleconference on March 17, 2010. Additional information about the conference and the RFP is available online at www.aps.com/rfp. RFP submissions are due April 14, 2010.
Show Me the Money: $12 million for Early Stage Solar Technologies
The Department of Energy (“DOE”) announced today that the National Renewable Energy Laboratory (“NREL”) will invest up to $12 million in total funding ($10 million from funds allocated to NREL under the American Recovery and Reinvestment Act (“ARRA”)) in four companies - three California and one North Carolina - to take early stage PV and CSP technologies to commercialization.
Each company will receive up to $3 million (and the benefit of NREL’s support and expertise) to take prototype and pre-commercial PV technologies and develop pilot/demo projects or full-scale manufacturing projects. Payment of the awarded $3 million will be made over time as each company completes specified project milestones.
DOE is investing more than $117 million in solar energy through ARRA.
DOE and NREL Announce Open PV Mapping Project
National Renewable Energy Laboratory (NREL) and the U.S. Department of Energy (DOE) announced the release of the Open PV Mapping Project. The Project is a collaborative effort between government, industry, and the public to develop a comprehensive database of photovoltaic (PV) installation data for the United States.
The Project will provide a Web-based resource for users to easily understand the current status and past progress of the PV industry from the data that show current and recent trends of the PV market. Users can also add their own PV installation data, browse PV data input by others, and view statistics. NREL plans to add additional data and use the information to monitor and analyze market growth.
Solar Power International '09
Next week, the Anaheim Convention center hosts Solar Power International, which bills itself as 'North America's largest business to business solar industry event.’ With over 900 exhibitors (Stoel Rives included) and 25,000 attendees expected, there is no doubt that this conference will be one of the largest and most heavily attended solar industry events in the world this year. The conference starts on Monday October 26 with pre-conference workshops and runs through Friday October 30. This year’s keynote speaker is Robert F. Kennedy Jr. the keynote address will take place on Wednesday morning.
If you are attending the conference, please stop by our exhibit booth (No. 1744), which is centrally located in the “PV Cells and Modules” section of the Exhibit floor. Stoel Rives attorneys Howard Susman, Morten Lund, Pat Boylston, Gregory Jenner, Stephen Hall, Kristen Castaños, David Quinby and Adam Walters will be in attendance.
Show Me the Money: $454 Million in Energy Efficiency Retrofits
The Department of Energy (“DOE”) announced a new $390 million energy upgrade program under the Energy Efficiency and Conservation Block Grant (“EECBG”) Program that could save $100 million annually in utility bills. DOE is looking for community-scale retrofit projects that will have a significant, long-lasting impact on energy consumption and which can be replicated in communities nationwide.
DOE is also making $64 million available under the EECBG to local governments that were not eligible to receive the formula grants announced earlier this year under the population-based formula.
These programs were announced through a Request for Information (“RFI”) issued today under the competitive portion of the EECBG Program. DOE is seeking public comment until Sept. 28, 2009.
A link to the Request for Information is below. This is not a funding opportunity announcement so no applications can be made at this point. The FOA is expected to be released in early October, following the public comment period.
Show me the Money: $11.8 Million Awarded for Solar Energy Grid Integration
Today, in recognition that solar energy is a critical factor in the President's clean energy agenda, the U.S. Department of Energy (DOE) announced that $11.8 million ($5 million from the American Recovery and Reinvestment Act) will be deployed to five projects related to the development of solar energy grid integration systems (SEGIS). This follows our earlier client alerts regarding funding opportunities for solar technologies.
SEGIS activity began in 2008 with a partnership between DOE, Sandia National Laboratories, industry, utilities, and universities interested in complete system development. Funded projects are related to the integration of solar technologies into the U.S. electrical grid while maintaining or improving power quality and reliability.
DOE announced funding of the following projects:
PVPowered of Bend, Oregon. Up to $3 million is available to fund a project that optimizes interconnections across the full range of emerging PV module technologies through innovative systems integration. This project includes the following partners: PVPowered, Portland General Electric, South Dakota State University, Schweitzer Engineering Laboratories, and SENSUS.
Petra Solar of South Plainfield New Jersey. Up to $2.9 million is available to fund a project that supports improving reliability and resiliency so that high levels of PV integration can be adapted. This project includes the following partners: Petra Solar, University of Central Florida, and fifteen electric utilities.
Princeton Power of Princeton, New Jersey. Up to $2.8 million is available to fund a project that focuses on lowering manufacturing costs through integrated controls for energy storage and the development of new inverter designs. This project includes the following partners: Princeton Power, Transistor Device Inc, LaGuardia Community College, Idyllwild Municipal Water District, National Oceanographic and Atmospheric Administration, Princeton Plasma Physics Laboratory, Premier Power, SPG Solar, and Spire.
Apollo Solar of Bethel, Connecticut. Up to $1.5 million is available for the creation of innovative inverters using energy storage and two-way communications between solar electrical systems and utilities. This project includes the following partners: Apollo Solar, Saft Batteries, the Electric Power Research Institute, and California Independent System Operator.
Florida Solar Energy Center / UCF. Up to $1.3 million is available to solve technical challenges that impede the deployment of higher PV penetration levels in larger scale systems. This project includes the following partners: Florida Solar Energy Center, Satcon Technology Corporation, SENTECH, Inc., Cooper Power Systems EAS, Northern Plains Power Technologies, and Lakeland Electric Utilities.
Show me the Money: Applications Available now for Washington's State Energy Program
On July 1, 2009, Washington State’s Department of Community, Trade and Economic Development (“CTED”) issued application guidelines and forms for its State Energy Program (“SEP”) (available by clicking here). The American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) provided $60.9 million in new funding for Washington’s SEP. Subsequently, the Washington Legislature allocated $38.5 million to CTED to administer a loan and grant program for energy efficiency and renewable energy program (see our client alert, available here, regarding the legislative action).
Eligible energy efficiency, renewable energy, and clean energy projects may be eligible for SEP funding between $500,000 and $2 million.
Eligible energy efficiency projects are those that use technologies that have been deployed at commercial scale that result in the reduction in energy consumption through increases in the efficiency of energy use, production, or distribution, and high-efficiency cogeneration. Ineligible projects are those that are eligible for Recovery Act Funding for community wide urban residential and commercial energy efficiency upgrades as described in (i) Chapter 379, Laws of 2009; (ii) Low income weatherization projects and programs which are eligible for funding through the state’s low-income weatherization program; (iii) Loans support to financial institutions for energy efficiency projects as described in Chapter 379, Laws of 2009; (iv) state energy efficient appliance rebates; and (v) green jobs training as described in Chapter 536, Laws of 2009.
Eligible renewable energy projects are those that are located in Washington and use existing commercial scale technologies that generate liquid fuels, process heat or electricity using algae, bark, biodiesel, biomass, biosolids, food waste, fresh water, gas from sewage treatment facilities, landfill gas, geothermal, pulping liquors, sawdust, solar, hydrokinetics, wind, wood chips and various other waste products. Ineligible projects include those that use the following feedstocks: municipal solid waste, wood from old growth forests, and chemically treated wood.
Eligible clean energy innovation projects include are those that offer innovative new technologies or service delivery models for energy efficiency, renewable energy, or other areas of clean energy. Projects must have a solid chance at commercial scale deployment within two to three years. Ineligible projects include carbon sequestration projects, lab scale projects, and those excluded under federal SEP guidelines.
Interested parties must file a notice of intent to apply by July 27, 2009 at 5:00 p.m. Pacific.
Full applications are due on August 17, 2009 at 5:00 p.m. Pacific.
Information workshops will be held on July 13, 14, 15, and 16. Click here for the specific dates and times. I will be attending the July 13 workshop in Everett, WA. An informational webinar will also be held on July 23.
Show me the Money: $10.5 Million for Solar America Cities
Today, the U.S. Department of Energy (“DOE”) announced new funds of up to $10.5 million to inform and educate local governments nationwide about solar energy. As part of the Solar America Cities program, a joint effort with 25 cities dedicated to increasing their use of solar energy, the DOE has assembled educational materials about the benefits and value of solar energy. The DOE will now work with outreach organizations to share these materials and tools with local government officials, with the aim of speeding up the implementation of solar energy. The application deadline is October 15, 2009, with selections expected to be announced no later than December 15, 2009.
For more information, click here for our recent Energy Alert.
Interior Department Expedites Solar Energy Development in the West
The U.S. Interior Department has instigated initiatives to accelerate the development of solar energy on Western lands. About 670,000 acres currently administered by the Bureau of Land Management (“BLM”) in Arizona, California, Colorado, Nevada, New Mexico, and Utah will be evaluated for the development of large-scale solar energy production. These areas of land will be reserved for solar projects producing 10 megawatts or more of electricity and the goal is to fast-track the permit applications.
Each piece of land is at least 2,000 acres and has been selected for its solar resources, slope, proximity to roads and transmission lines or designated corridors. The evaluation will be funded with Stimulus monies under an ongoing federally-funded evaluation of solar energy development on public lands in six Western States. The evaluation should be completed in late 2010.
San Diego Gas & Electric Issues RFO for Renewable Resources
Today, San Diego Gas & Electric (SDG&E) issued a Request for Offers seeking eligible renewable resources that the utility will use to meet its California Renewable Portfolio Standard requirements. Respondents may submit one or more of three alternative proposals:
- Power Purchase Agreement (PPA). Respondents are asked to propose a 10, 15, or 20-year PPA for capacity and/or energy, but SDG&E will nevertheless consider proposals with shorter or longer durations. Eligible Resources must be delivered to a point within California and must be begin deliveries sometime between 2010 and 2013.
- PPA with Buyout. Respondents offering PPAs may also submit an option price that SDG&E may exercise to purchase the resource as well as associated environmental attributes, land rights, permits, and other licenses upon conclusion of the PPA term. This alternative is limited to resources located in San Diego County, parts of Orange County within SDG&E's service territory, or Imperial Valley areas. Like respondents offering under the PPA alternative, respondents interested in offering resources under the PPA with Buyout alternative must begin delivering energy and/or capacity between 2010 and 2013.
- Turnkey Facilities. Respondents to the RFO may also propose to develop and construct a new renewable energy generation facility that SDG&E will acquire. SDG&E is proposing the same locational requirements that apply to PPA with Buyout projects.
A limitation that applies to all respondents is that resources located in SDG&E's service territory must be no smaller than 1.5 MW, and resources outside of SDG&E's service territory must be no smaller than 5 MW.
This RFO may be a great opportunity to transact with SDG&E as it endeavors to comply with California's ever-increasing RPS standards. SDG&E will hold two pre-bid conferences: one in San Diego on August 5, 2009, and the other in El Centro on August 12, 2009. Those interested in attending a pre-bid conference should register by July 31.
For more information, click here: SDG&E 2009 RFO Info
Show Me the Money: $117.6 million in Stimulus Funds Available Now for Solar Energy
On May 27, 2009, President Obama announced that the Department of Energy ("DOE") is to provide $117.6 million to support the widespread commercialization of clean solar technologies and to scale up U.S. solar manufacturing and production. The funds are intended to promote partnerships between DOE's national laboratories, universities, local government, and the private sector to promote and improve the U.S. solar industry. The DOE issued two funding opportunity announcements ("FOA") for high-penetration solar deployment and market transformation and one program announcement related to concentrated solar power research and foundational photovoltaics.
For more specific information, see this recent alert.
Lex Helius: The Law of Solar Energy Now Available!
As technologies develop and commercial acceptance grows, solar photovoltaic installations are increasingly providing a viable alternative for the small-scale distributed generation of electricity to supplement more traditional polluting sources. The growth of the solar industry in the United States over just the past two years has been phenomenal. Having a rooftop solar photovoltaic installation on corporate headquarters, major distribution centers, and other high-profile real estate has become a significant way fro major global corporations to demonstrate their commitment to a cleaner environment. New sources of investment capital are flooding into this niche, and power buyers large and small have been drawn to solar as a way of demonstrating their independence from traditional generation sources and desire to play a part in moving the United States toward a more independent future. States across the country have moved to fill the federal leadership vacuum, in many cases enacting renewable portfolio standards and state renewable energy tax credits, which are critical to the continuing development of our solar resources. The industry is vibrant.
Nonetheless, distributed generation solar projects, like other renewable generation projects are subject to a plethora of real property issues, regulatory and permitting requirements, interconnection, and power purchase negotiations, financing challenges, tax matters and construction contracting.
Recognizing these challenges, and as part of our commitment to the growth and success of the renewable energy industry, Stoel Rives developed its first Law of ... publication in 2003. We now introduce Lex Helius: The Law of Solar Energy, the newest installment in our continuing efforts to provide easily accessible information for individuals and companies interested in growing U.S. renewable energy resources. This guide contains insights we have gained from practical experience assisting participants in numerous solar photovoltaic projects covering a diverse range of sizes and installations, as well as from 15 years of experience serving the U.S. renewable energy industry.
