Cherrytree Group LLC Blog

The USDA has funding availability for the Rural Energy for America Program for fiscal year 2013. The program provides financial assistance in the form of grants, guaranteed loans, and combined grants and guaranteed loans for the development and construction of renewable energy system and energy efficiency projects. It also provides grant funding for conducting renewable energy feasibility studies.

According to information published by the USDA in the Federal Register, there is up to $20.8 million available for fiscal year 2013 awards, which is enough to support up to $10.4 million in grants and $43.4 million in loan guarantees.

Information posted to the USDA website specifies that there are two technology categories eligible for the funding: renewable energy projects and energy efficiency improvement projects. The renewable energy category includes biomass and bioenergy projects, including those that produce liquid biofuels and those that produce electric power. Biomass and anaerobic digestion projects that produce thermal energy or electric power are also eligible. The program also allows funding for retail flexible fuel pumps, such as those commonly used to dispense ethanol blends.

Applications for renewable energy systems and energy efficiency improvement grants and combination grant and loan guarantees are due April 30. Applications for renewable energy system and energy efficiency improvement loan guarantees are accepted on a continuous basis through July 15. Renewable energy system feasibility applications are also due April 30.
 
For assistance, contact The Cherrytree Group.

Biomass Magazine

The U.S. Department of Defense plans to open up 16 million acres of its land for renewable energy development, which it hopes will create a boom of solar, wind and geothermal projects and provide clean power to military bases.

Defense Secretary Leon Panetta and the Interior Secretary Ken Salazar signed a memorandum of understanding to work together on promoting renewable energy generation projects on public land that has historically been restricted for military uses. About 13 million of those 16 million acres are located in western U.S., where a lot of solar, wind and geothermal power development already has been taking place on private and other types of public land.

The administration has been making a strong push for renewable energy development by funding both technology research and power generation projects. The administration wants to accomplish two goals by supporting renewable energy: creating jobs and finding alternative, cleaner and more abundant power sources domestically.

Last month, Salazar unveiled a roadmap for speeding up solar power project development on 285,000 acres of public land in six western states. 

The government support for renewable energy has indeed propelled the development of advanced materials and equipment and the construction of some of the largest solar power plants in the country.

The Monday announcement by the Defense and Interior departments involved not only land set aside for the military but also offshore locations near military installations. The goal is to promote onshore and offshore energy projects, such as erecting wind turbines in the sea.

The military has been vocal about its support of renewable energy, from electricity to transportation fuels, that it says will help it become more self-sufficient and reduce its vulnerabilities in the battle fields.

“Renewable energy will allow a military base to maintain critical operations for weeks or months if an electric power grid goes down,” she said.

The military wants to attract developers and private investments for building solar, wind and other renewable electricity power projects on its land. It plans to lease the land to developers and buy some or all of the power from each project for its own use, and any unused power will be sold local utilities, Robyn said. Each of the military services plans on getting 1 gigawatt of renewable energy installed near its bases by 2025.

For information on renewable energy development or renewable energy tax credits, contact The Cherrytree Group.

Forbes Magazine

Wind power is facing a make-or-break moment in Congress, with renewable-energy firms' projects on hold as lawmakers debate whether to extend subsidies for new wind farms this month.

Currently U.S. tax credits are available only for facilities that come online before the end of 2012. Iberdrola Renewables, the second-largest U.S. wind operator, has suspended work on new U.S. projects for "anything we can't build in 2012," said Rich Glick, vice president of government affairs for the unit of Spain's Iberdrola SA.

Industry players see two main chances for Congress to act this year. One comes in February, when the wind subsidies could be tacked on to an extension of payroll-tax cuts. The other would come in the lame-duck session after November elections, when lawmakers must address the expiration of tax cuts from 2001.

The tax credit has helped bring down the cost of wind power, making it more competitive with rival producers, but wind's backers say they need a few more years to build out a U.S. supply chain. The sharp fall in U.S. natural-gas prices has made this a particularly sensitive moment for wind energy by giving gas-fired power plants an extra cost advantage.

Previous delays in extending the wind-farm tax credit have led to drop-off in wind installations. The credit, designed to help level the playing field with coal and other fossil fuels, is worth 2.2 cents per kilowatt-hour of electricity produced during the first 10 years a wind farm is in operation.

A delay could also stunt efforts to bring down the cost of wind-power technology. "We face the loss of domestic expertise and the momentum to build a strong domestic supply base," said Luis Miguel Fernandez, chief corporate officer for the North American arm of Spain's Gamesa Corp., which has a factory in Pennsylvania.

Last month, Vestas Wind Systems said it will cut 1,600 U.S. workers if the tax credit isn't renewed, on top of 2,300 jobs it is already shedding world-wide. An industry-backed study by Navigant Consulting said in December that thousands of additional job cuts could occur if the credit expires.

About 6.8 gigawatts of wind power were installed in the U.S. in 2011, bringing the total nationwide capacity to nearly 47 gigawatts, enough to power about 12 million homes at any given time, according to the American Wind Energy Association. That is about 3% of total U.S. generating capacity.
 
Without the wind tax credit in place, Navigant said, about two additional gigawatts of wind capacity would be installed in 2013, as opposed to more than eight gigawatts expected to be added in 2012, when the tax credit will still be in place.
 
Other predictions are more dire. Iberdrola's Mr. Glick said there would be "close to zero" gigawatts of wind capacity installed next year without an extension soon.

Some in Congress say it is time to end subsidies for renewable energy. The wind industry "simply cannot continue to rely on the American taxpayer," said Rep. Mike Pompeo (R., Kan.), who has a bill that would cut many energy-related credits from the tax code. "Each time it comes up to a year of expiration, they say, 'If we just get a few more years our technology will mature and we will become more competitive.' It's time for them to figure out how to do that."

The industry's supporters argue that Chinese manufacturers also get government support, and they say companies need more time to build a U.S. supply chain and drive down costs.

Denise Bode, president of the American Wind Energy Association, said that in several years' time "we will not need" the tax credit but losing it now could stunt efforts to attract new investment.

Some U.S. facilities may keep going without the credit, thanks to foreign demand and mandates in many states for utilities to buy increasing amounts of renewable power.

Twenty-three governors have backed a bill that would extend the tax credit by four years. Senate Majority Leader Harry Reid (D., Nev.) said late last month the credit is "extremely important" and suggested it should be included with the extension of the payroll-tax break.

Some House Republicans have supported the four-year extension. But Rep. Dave Camp, a Michigan Republican and lead House negotiator on the payroll-tax bill, has said energy tax credits shouldn't be part of the payroll-tax discussions.

Original Article – Wall Street Journal

In a Hertford County field where rows of corn once grew, rows of solar panels now stand - 20,000 panels that will soon convert sunshine into enough electricity to power a small town.

When finished next month, Duke Energy Renewables' project on 37 acres will be one of the state's largest.

About 40 miles to the southeast, on a 100-acre field in Perquimans County, a Charlotte company plans to build another solar farm, this one consisting of 83,000 panels. It would stand out as the largest in North Carolina.

With the two solar farms and at least three major wind farms in development, northeastern North Carolina has become a hot bed for renewable energy.

The region has plenty of open land, and a sunny, breezy coastal climate. It also has a major power transmission line running through it with ties to the PJM Interconnection, the largest competitive wholesale electricity market in the world.

"Alternative energy is one of our main economic niches now," said Vann Rogerson, president of North Carolina's Northeast Commission, which recruits industry to the region. "The big players know where northeastern North Carolina is now."

Rogerson is working on additional renewable energy development projects with at least two other green-energy companies.

Much of the surge in green energy ventures stems from North Carolina's 2007 mandate requiring utility companies to produce 12.5% of their power from renewable resources by 2021, said Julie Robinson, spokeswoman for the North Carolina Sustainable Energy Association. Utilities are actually ahead of schedule, especially in the solar field, she said.

"Solar energy in North Carolina has grown dramatically over the last few years," she said.

The more capacity in megawatts that a green project has, the closer that utilities get to reaching the state mandate, and the bigger the reputation gets within the industry.

Duke Energy Renewable's Murfreesboro Solar Project is expected to carry a 6.4 megawatt capacity and be able to power 700 homes. The North Carolina Electric Membership Corp. will buy the electricity.

The Perquimans project, built by Solar Green Development of Charlotte, plans to have a capacity of 20 megawatts, enough to provide electricity to nearly 3,000 homes - more than half of all the households in the county. It is expected to connect to Dominion Power.

The solar projects would complement the wind farms that have found their way to the region.

Iberdrola Renewables plans to build a wind farm with 150 turbines on 20,000 acres. In Camden County, Invenergy is seeking permits to erect 100 turbines on thousands of acres of open farmland. Together, the projects could power about 100,000 homes. Each wind farm is projected to involve a $600 million investment and would be among the largest in the nation.

Down in Beaufort County, Invenergy has announced plans to build a wind farm valued at $160 million that would power about 15,000 homes.

The northeastern corner of the state has plenty of inexpensive, open land, a sparse population, and officials who are receptive. The proximity of the major transmission line is also a big draw.

"When that wind is really blowing, then there is a lot of power coming out of those turbines, and you need a place to send it," Ellis said.

The Perquimans County solar farm will have a capital investment of $85 million.

Given that kind of investment, tax breaks are a major motivator. Among other state and federal tax breaks, North Carolina allows local governments to collect 20% of the property tax value from land on which renewable-energy projects are built.

"Twenty percent of $85 million is a good-sized tax boost," said Bobby Darden, Perquimans County manager.

Original article – Hamptonroads.com