WASHINGTON—The Energy Department is making available $36 billion in loan guarantees for renewable energy projects and for modernizing the electricity grid.
The department said Wednesday it will accept applications for the financing support over the next 45 days.
The government-supported loans are expected to help companies involved in solar, wind, biofuels and other renewable energy projects get private financing. It also aims to spur investments in power grid improvements.
The department said $30 billion in loan guarantees will be available for renewable energy including $2 billion for biofuels and another $6 billion for large power grid projects.
“These investments will be used to create jobs, spur the development of innovative clean energy technologies and help ensure a smart, strong and secure grid that will deliver renewable power more effectively and reliably,” Energy Secretary Steven Chu said in a statement.
The department said about $3.25 billion will be spent from economic recovery funds on the loan program announced Wednesday. However, about $8.5 billion of the anticipated lending authority will be supported by the department’s normal budget.
Under the loan guarantee program, the government accepts responsibility of part or all the cost of a project’s private financing if a project fails. The government also assumes certain initial subsidy costs.
