David Kirkpatrick

February 24, 2010

DoE makes major solar investment

Technically it’s a loan guarantee rather than a true investment, but this Department of Energy move shows just how serious the Obama administration is concerning alternate energy sources. There are a lot of exciting developments in solar power right now and government money in this amount only helps grease the wheels of innovation and private-sector investment.

From the first link:

The U.S. Department of Energy has announced a $1.37 billion conditional loan guarantee for the Ivanhoe Solar Complex in the Mojave Desert. The project, managed by Brightsource Energy, will use mirrors to concentrate sunlight, creating high temperatures that can be used to generate electricity. The complex will include three power plants that together will produce about 400 megawatts of electricity.

Basically, the guarantees would cover the loans in the case of default. The money for the loans is expected to come from the Federal Financing Bank.

One of the biggest challenges that large solar developments face is getting financing, particularly because few such solar power plants have been built. The DOE guarantees help on this front.

February 3, 2010

White House promotes nuclear plants

A very necessary — and belated for the Obama administration — move to start to wean the U.S. off foreign petroleum-based energy.

From the link:

President Obama’s proposed 2011 budget could provide a significant boost to the U.S. nuclear power industry, which has been stalled for decades. If approved by Congress, the budget would provide $36 billion in loan guarantees for nuclear power plants, opening the way for around seven new nuclear power plants, depending on the final cost of each. The new guarantees are in addition to $18.5 billion in guarantees provided for in a 2005 energy bill.

The increased support for nuclear power marks a change for the Obama administration, which has opposed similar increases in the past. Some policy experts say it is part of a strategy to win Republican votes for a comprehensive climate and energy bill.