Iberdrola Renovables hopes to secure US$400-500m in government aid over the coming months
The US Department of the Treasury has announced an estimated minimum of $3 billion for the development of renewable energy projects. IBERDROLA RENOVABLES, the world’s leading wind energy company(1), (through its US subsidiary IBERDROLA RENEWABLES), plans to start up and bring on stream some 850 MW of wind energy installations this year for commercial purposes, which could be eligible for $400-500 million in Treasury aid over the coming months. The grants must be put to use solely in the US.
This grant programme stems from the economic stimulus bill ushered in by the Obama administration and, according to a Department of the Treasury announcement, will entail “direct payments in lieu of tax credits in support of an estimated 5,000 bio-mass, solar, wind and other types of renewable energy facilities.”
This is welcome news for the renewable energies sector, as it offers the best possible alternative to the so-called Production Tax Credits (PTCs). The ITC (Investment Tax Credit) offers direct funding for 30% of such investments (this covers approximately 95% of the cost of the wind farm) and payment is made in cash 60 days from the date on which the farm enters into commercial operation. The Treasury has announced that the period for applications from interested companies will open on 1 August.
IBERDROLA RENOVABLES has operations in 20 US states, with installed capacity at the end of June 2009 of 3,104 MW (31% of its worldwide total). The company’s total installed capacity worldwide stood at 10,003 MW for the same period.
Output in the US for the first half of the year was 3,980 million kWh, 37.6% of its total.
IBERDROLA RENOVABLES considers the US to be a key market for its growth ambitions: the company’s project pipeline amounts to 56,000 MW (2), of which approximately 42% is located in the US.
The company has invested over $2 billion in the US, where it has had operations since 2006.
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