RETECH 2013 Conference LPO Info

Department of Energy
Loan Programs Office
Program Overview
Fall 2013

LPO Overview
• DOE’s Loan Programs Office (LPO) is one of the largest project finance teams in
the world, managing the largest innovative energy and transportation portfolio
in the world, with significant remaining funding capacity
• Through its Title XVII and ATVM programs, LPO supports commercially ready
innovative, clean energy and automotive projects that are not yet able to secure
funding from private sector banks, the bond market, or other lenders
• LPO’s $35 billion in loans, loan guarantees, and conditional commitments to
33 clean energy and transportation projects combined with $21 billion from the
private sector will result in $55 billion in total investment in domestic
infrastructure

LPO Overview (cont)
• DOE’s losses to date represent about 2% of the $35 billion portfolio of closed
and conditionally committed loans and guarantees—and less than 10% of the
roughly $10 billion in loan loss reserves that Congress set aside for the
Programs
• As of mid-June, Borrowers have repaid more than $1 billion on their loans,
including Tesla’s complete and early repayment of its $465 million loan
• Twelve of LPO’s nineteen clean energy generation projects are currently
producing power, enough to power 450,000 homes


Four more projects are expected to come online in 2013, including three of the world’s largest
concentrating solar power projects



20% of new renewable capacity from 2012-2016 is projected to come from LPO projects

DOE Loan Programs Eligibility Requirements & Commitments
Energy Programs
Title XVII Capacity: ~$51 billion in authority – $35 billion in 1703; $16 billion in 1705 (ARRA)
Eligible projects must:
•
•
•

Avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases;
Employ new or significantly improved technologies or processes as compared to commercial technologies in service
in the United States; and
Assure a reasonable prospect of repayment of principal and interest.

Transmission Infrastructure Program (TIP) Capacity: $3.25 billion in authority (ARRA)
•
•

Partnered with DOE’s Western Area Power Administration.
New or upgraded electric transmission lines and related facility projects that have a terminus in WAPA territory and
help deliver renewable sources to market.

Auto Program
Advanced Technology Vehicles Manufacturing (ATVM) Capacity: $25 billion in authority
Eligible projects must:
•
•
•

Be an automotive manufacturer (OEM) satisfying specified fuel economy requirements or a manufacturer of
qualifying components;
Be financially viable without the receipt of additional federal funding for the proposed project; and
Demonstrate a reasonable prospect that the applicant will be able to make payments of principal and interest.

LPO Has a Strong Portfolio
•
•

Estimated losses to date on a $34.4 billion portfolio are about 2%
More than 90% of the loan loss reserve Congress set aside remains intact
NUMBER OF
PROJECTS

33

TOTAL LOAN / LOAN GUARANTEE AMOUNT
COMMITTED

$34.4 BILLION

DISBURSED

$18.5 BILLION

ESTIMATED
LOSSES

(may be less, pending additional recoveries*)

UP TO $799 MILLION

LOAN LOSS
RESERVE

$10 BILLION

LOSSES AS % OF
AMOUNT
DISBURSED

4.3%

LOSSES AS % OF
TOTAL LOAN
AMOUNT

2.3%

TOTAL ECONOMIC
INVESTMENT
LEVERAGED

MORE THAN
$55 BILLION

*Estimated loss values are based on principal disbursed less any repayments. Actual losses will likely be lower, however, as the government
may have additional recoveries on the disbursed loan amounts.

Case Study: LPO’s Impact on Energy Industry - Utility Scale PV Solar Example
• LPO was instrumental in creation of utility-scale solar PV
market
• In 2010, no utility-scale (>100MW) PV projects were financed
in the US
• LPO financed the first six utility-scale solar projects
in the US in 2011
 Agua Caliente
 Antelope Valley Solar Ranch
 Project Amp
 California Valley Solar Ranch
 Desert Sunlight – largest PV solar plant in the world
 Sempra Mesquite

•

Since that time, 10 additional utility-scale projects have been financed without DOE support
 Many of the private sector lenders in these transactions first provided debt to utilityscale PV projects in the U.S. as lenders in our Section 1705 program

Draft Advanced Fossil Energy Solicitation Overview
Goal:

Support commercialization of advanced technologies that avoid, reduce, or sequester
greenhouse gas emissions from facilities that utilize fossil fuels

Status: Draft solicitation comment period ended Sept. 9th; potential solicitation issued Fall 2013
Funds:

Up to $8 billion in loan guarantee authority available; self-pay credit subsidy

Eligibility: Broad Suite of Eligible Technologies
•

Covers all fossil fuels, including but not limited to:
 Coal, oil, and natural gas
 As well as shale gas, coal bed methane, and methane hydrates

•

Across the Full Fossil Fuel Value Chain


•

From extraction to generation, greenhouse gas removal to efficiency improvements of existing
fossil assets

Open to Wide Variety of Applicants



Mines, refineries, utilities, project developers, and factories; as well as public and private sector
infrastructure such as universities, airports, and hospitals
Distributed generation technologies (e.g. fuel cells, microturbines, and micro-combined heat &
power applications) as well as energy efficiency improvements (e.g. waste heat recovery) are
within the scope

Advanced Technology Vehicles Manufacturing Loan Program Overview
Goal:

Support U.S. manufacturers of advanced technology vehicles and related
automotive components that meet higher fuel efficiency standards

Status: Program open – accepting applications on a rolling basis

Funds: Up to $16 billion in direct loan authority available; credit subsidy paid by DOE
through appropriated funds

Eligibility:
•
•
•

An automotive manufacturer satisfying specified fuel economy requirements or a
manufacturer of qualifying components; and
Financially viable without the receipt of additional federal funding for the
proposed project; and
Must demonstrate a reasonable prospect that the applicant will be able to make
payments of principal and interest.