Treasury, Energy Departments Pony up More Than $3 Billion for Renewable Energy Production
The ARRA funds will be awarded in the form of direct payments in lieu of tax credits for roughly 5,000 solar, wind, biomass, and other types of renewable energy production facilities throughout the country. ARRA authorized the Treasury Department to make direct payments to companies that build and place renewable energy facilities online beginning Jan. 1, 2009. The tax credit historically has been popular and considered to be an effective incentive for developing renewable energy. But the rate of new facilities placed in service dropped dramatically during the economic downturn as financing sources withered. Under the in lieu program, applicants would agree to accept immediate reimbursement of a part of the property expense instead of tax credits. The Treasury Department Web site includes terms, conditions, a sample application and helpful information for prospective applicants. Treasury is not accepting applications yet, but will provide that information on its Web site.
Quick Take: While this program was just announced and details are sparse, it could be the jumpstart the ailing renewable energy sector needs.
Treasury Department information
GE Hooks $2 Million to Demonstrate Smart Microgrid on Marine Base
General Electric will design and demonstrate a smart microgrid on the world's largest Marine Corps base, the massive Twentynine Palms Base near Joshua Tree National Park in southern California. U.S. military bases typically draw power from two sources: on-site generation for critical needs and from a connection to the larger electrical grid. But bases are typically in remote locations and would need the capability to generate and store secure power if separated from the larger grid. The grant, administered by the Environmental Security Technology Certification Program (ESTCP) of the U.S. Department of Defense, will support GE's plans to design and demonstrate a smart energy management system to maximize on-site generation and storage and to provide more intelligent and efficient interaction with the larger grid. Features of the project include incorporation of GE Digital Energy's microgrid controller, and GE's Fanuc Intelligent Platforms will integrate advanced technologies into a new supervisory control and software system capable of encompassing generation and distribution. Quick Take: Thanks in part to stimulus funding, we are now seeing real-world implementations of the microgrid trend we first brought to your attention back in 2006. Civilian versions are underway as well, in California and elsewhere.
Study: Utility Smart Grid Spending Largely on Track
A tracking study just released by the Newton-Evans Research Company suggests electric power utilities around the world are maintaining their financial commitments to Smart Grid and advanced metering initiatives, despite the economic downturn. The majority of large public and private utilities participating in the June study indicated they are in a position to continue long-term capital projects, although some start dates have been deferred. Government stimulus funds – such as those provided in the U.S. under ARRA – are among reasons cited for the relatively strong investment outlook.
Electric Light & Power article
DOE Backs Combined Heat and Power Systems with $40M FOA
The Funding Opportunity Announcement (FOA) specifically solicits research, development and demonstration of combined heat and power systems (CHP). CHP technologies can be used in industrial, commercial and residential environments to improve energy efficiency, control costs and limit greenhouse gas emissions. CHP is said to be able to reach efficiencies of 80% or more, compared to about 45% for conventional heat and power production technologies. More information and the full text of the FOA are available by clicking the links below.
Quick Take: Technically it isn’t Recovery Act money funding this program, but if you’re looking for a little financial stimulus for a CHP initiative, we’re guessing you may not care which pot it comes from.
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