SOLAR LOOKS ABROAD

Deadlines may shelve renewable energy projects
Karoun Demerjian, June 25, 2011 (Las Vegas Sun)

"The Energy Department has been teaming up with Nevada lawmakers on an almost monthly basis to announce loan guarantees for renewable energy projects across the Silver State, each of which is expected to create a few hundred jobs…[but] that soon could come to an end… because the program is approaching its expiration date, and it isn’t clear if there’s a politically palatable way to extend it.

"…[S]ince the $30 billion in loan guarantees created by Section 1705 of the stimulus became available…[developers knew] they’d have to break ground on or before Sept. 30 to keep the funding…The program was supposed to boost a fledgling industry, and buoy private investor confidence…[until markets took over but]…Recovery has been slower than anticipated, especially in terms of liquidity in the financial markets…[Without] these programs, or their equivalent, around for the next few years…[developers say they will] have to go elsewhere…"

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"The problem with setting [solar] developers to the open market is one of price comparison. Wind energy and geothermal…can compete with more conventional forms of power generation, such as coal-fired plants and natural gas…But solar’s not quite there…Energy Secretary Steven Chu has said that he believes the price of solar will be competitive with carbon sources of energy in the next 10 years…[D]evelopers plan to be players in the open market much sooner. But they point out that it’s not a fair fight right now.

"…Oil and gas tax benefits…[and] government support for those industries has been renewed ...[New Energy] incentives are just in place to allow these new technologies and new industries to compete effectively… against incumbents…[New Energy]-focused research and development tax credits — known as Section 1603 credits, which fall off the table in December…[are] equally necessary to shore up…"

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"…[But] budget negotiations imploded this week, after Republican participants House Majority Leader Eric Cantor and Senate Minority Whip Jon Kyl, withdrew…Cantor and Kyl said they could see no way forward…Stimulus programs are not popular fare among Republicans…[while] Democrats point out that the job losses would have been far worse without the stimulus program…President Barack Obama requested about $200 million to back up to $2 billion in Section 1705 loan guarantees in the budget he submitted to Congress…[T]hat’s a steep drop from the $2.5 billion that was slated to $30 billion in loans two years ago…[T]here will be a lot less to go around…

"…[D]evelopers don’t care where their government assistance comes from, just so long as it comes — if they’re to deliver these projects…[Without the assistance, developers say,] '… we’ll take our business internationally.'"