LPO Info Slides

Department of Energy
Fall 2013

LPO’s
Path LPO’s
Forward
Case
Study:
Impact on Energy Industry - Utility Scale PV Solar Example
• LPO’s mission remains constant- provide debt to innovative energy and
automotive projects that are not yet able to secure debt from private sector
banks, the bond market, or other lenders.
• LPO catalyzes private market lenders by demonstrating new technologies and
processes at large scale.
• LPO support is, and will continue to be, critical in deploying “first of its kind,”
“utility-scale” energy and automotive projects that reduce greenhouse gas
emissions and promote a stronger and cleaner American economy.
• Going forward, LPO has billions of dollars in remaining debt authorities to
fund innovation at scale in the areas of advanced fossil including distributed
generation and efficiency, nuclear, renewables, and transmission.

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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

~30

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.

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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
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DOE Loan Programs Project 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)
•

LPO partnered with DOE’s Western Area Power Administration, who works with commercial entities for
development.

•

New or upgraded electric transmission lines and related facility projects (i.e. storage) 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 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.

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