Accenture, GreenGate LLC, Pro2Serve, Terranear, RER Solutions Inc, Scully Capital, Dade Moeller
Title XVII of the Energy Policy Act of 2005 authorized the Department of Energy (DOE) to issue loan guarantees with the purpose of accelerating the deployment of innovate clean energy technology. In May 2011, we partnered with the DOE’s Loan Programs Office (LPO) to help implement the Title XVII program. This program offers loan guarantees to a wide range of innovative energy technologies, including renewable energy, nuclear energy, advanced fossil energy and energy efficiency. We assisted the LPO in analyzing the credit-worthiness of projects in the pipeline, and provided program support across six of the seven LPO divisions.
Challenges & Solutions
Innovative Energy Technologies at a Commercial Scale: The projects in the LPO portfolio involved the construction of innovative energy technology projects that had never before been built on a commercial scale. (At the time, the program included the construction of the largest solar and wind farms in the world.) We assembled a team of some of the most qualified energy, technology and finance individuals in the country to assist the LPO in assessing and mitigating the potential risks associated with each project.
Rapidly Growing Program: Due to the high demand of applicants to the Title XVII program in 2010 and 2011, the LPO went through a significant surge in employees and the need of contractor assistance. Our dedicated, onsite staff worked long hours while we added to our team of experts required to support and assist the program.
Regulatory Deadlines: The stimulus package had a sunset provision date by which all loans had to be closed. Our staff worked long hours for the months preceding the deadline in order to meet the necessary deadlines.
Market Shifts: Shifts in the market posed unique challenges to some of the projects in the LPO portfolio. Our expert team worked with the LPO to respond to the shifts in the market, mitigating the risk to the LPO portfolio.
Regulatory Compliance and Constraints: Projects were subject to a variety of regulatory requirements and constraints (i.e., finance, environment, labor, etc.) that required compliance. We sought out some of the key experts in the various regulatory fields, helping the LPO abide by all regulatory requirements.
Summary & Results
We assisted the program in assessing the merits of over thirty projects, supporting over $30 Billion in project financing. Our support and expertise helped finance and build some of the largest solar and wind farms in the world. We also supported the LPO during a crucial stage in its development, helping it succeed as the largest project finance organization in the U.S. government.