Beyond Solyndra: How the Energy Department’s Loans are Accelerating

America’s Transition to a Clean Energy Future

June 2012

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Accelerates the deployment of advanced and innovative clean energy technologies at commercial scale

Supports a broad array of clean energy technologies across solar, wind, nuclear, geothermal, biofuels, energy efficiency, etc.

Supports deployment of advanced vehicle technologies through the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP)

Loan Programs OverviewAdvancing the nation’s clean energy economy

The Department of Energy’s investments, including the loan programs, are helping: Reduce energy costs, better protect our air and water, and work towards a true

energy independence for the U.S.; Double America’s deployment of renewable energy since 2008, enabling the

nation to reclaim the title of world leader in clean energy investments; Achieve fuel efficiency standards that will increase U.S. fuel economy to almost

55 miles per gallon for cars and light-duty trucks by Model Year 2025.

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• Nearly $35 billion in loans, loan guarantees and conditional commitments for loan guarantees to 33 clean energy projects with more than $55 billion in total economic investment

• This made the U.S. the global leader in clean energy investment in 2011

• 30+ projects are expected to support over 60,000 jobs, plus thousands more in the supply chain

• Closed financing for 20 generation projects, which are expected to:• Produce enough clean electricity to power more than 2.5

million homes, or more than all the homes in Colorado• Avoid as much carbon dioxide from the air every year as

the emissions of more than three million vehicles

Loan Programs ImpactMaking significant contributions to our nation’s energy independence

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Since January 2010, loans and loan guarantees will support:

• One of the world’s largest wind farms.• The world’s largest photovoltaic and concentrating

solar power (CSP) plants currently under construction.

• Two CSP plants that will more than double the nation’s CSP capacity.

• The first two all-electric vehicle manufacturing facilities in the U.S.

• The first distributive photovoltaic energy project on a national scale that will install solar panels on commercial rooftops in up to 28 states.

• One of the country’s first commercial-scale cellulosic ethanol plants.

• The first nuclear power plant to be built in the U.S. in the last three decades. (Conditional Commitment)

Loan Programs ProjectsFinancing first-of-a-kind projects and some of the largest in the world

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• Over $8.3 billion in loans for projects with more than $14 billion in total economic investment

• Projects expected to support greater than 38,000 jobs

• Projects expected to avoid nearly 300 million gallons of gasoline annually

• Projects expected to avoid as much carbon dioxide from the air every year as the emissions from more than 460,000 vehicles

Advanced Technology Vehicles Manufacturing Loan ProgramSupporting the resurgence of America’s auto industry

ATVMLP-supported projects are reducing our dependence on foreign oil and promoting U.S. leadership across an array of innovative vehicle technologies, including plug-in vehicles, high-efficiency gasoline vehicles, and natural gas vehicles.

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• Support - $1.6 billion loan guarantee

• Jobs - Over 1,700 staff working on site

• Awards - CSP Achievement of the Year by Solar Power Generation USA; 2012 Energy Project of the Year Award by the USC CMAA Green Symposium

• Clean Air - Expected to avoid 574,000 metric tons of carbon dioxide annually, equivalent to emissions of 110,000 vehicles

• Homes Powered - Expected to generate enough clean electricity to power approximately 87,000 homes annually

• Construction Update - As of May 2012, the project is approximately one-third complete. Construction of the three

459-foot power towers are well underway, and tens of thousands of the 173,500 total heliostats have been installed.

Ivanpah Solar Generating Complex - Mojave DesertWorld’s largest solar thermal power plant under construction

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Supply Chain - • Majority of project’s supply chain is

sourced from more than 17 states. • Ivanpah steel supplier, Gestamp Solar

Steel built new facility to keep up with orders. Facility expected to create 50 new manufacturing jobs plus more during construction.

• Michigan-based Guardian Industries

supplied the first of 160,000 of its EcoGuard Solar Boost mirrors in November 2011.

Michigan-based Cone Drive Gearing Solutions , a company that supplies solar tracking devices to Ivanpah, said, “This opportunity will be a source of job creation not only for us but for many of our U.S.-based supply chain partners.”

Ivanpah Solar Generating Complex - Mojave DesertWorld’s largest solar thermal power plant under construction

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• Support - $967 million loan guarantee

• Jobs - Employed more than 1,300 workers at peak construction

• Awards - 2011 Solar Project of the Year by Renewable Energy World’s Excellence in Renewable Energy Award Program; 2011 Photovoltaic Achievement of the Year by Solar Power Generation USA

• Clean Air - Expected to avoid greater than 370,000 metric tons of carbon dioxide annually, equivalent to the emissions of more than 70,000 vehicles

• Homes Powered - Expected to generate enough clean electricity to power more than 56,000 homes annually

• Construction Update - As of May 2012, the project is more than 70 percent complete. Over 3.3 million solar panels spanning in excess of 2,300 acres have already been installed.

Agua Caliente – Yuma County, ArizonaNation’s largest photovoltaic solar power plant

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Supply Chain - • Last year, First Solar, an engineering,

procurement and construction contractor, spent more than $1 billion with U.S. suppliers across 38 states.

• Major domestic suppliers of steel fabrications and electrical equipment for Agua Caliente and other First Solar supported projects include an Arizona-based division of Omco, Connecticut-based Highway Safety Corp., Texas-based Powerohm, and SMA Americas of Colorado.

• In addition, the project uses approximately 39,000 tons of American steel.

Agua Caliente – Yuma County, ArizonaNation’s largest photovoltaic solar power plant

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• Support – partial guarantee of $1.446 billion loan

• Jobs - Over 1,000 construction workers hired to date with more expected at peak construction

• Clean Air - Expected to avoid nearly 544,000 metric tons of carbon dioxide annually, equivalent to the emissions of nearly 105,000 vehicles

• Homes Powered - Expected to generate enough clean electricity to power more than 82,000 homes annually

• Construction Update - As of April 2012, more than 50 percent of the project is complete.

• Supply Chain - The project has purchased materials and services manufactured and supplied by 29 companies in 22 states and it is expected to have contracts with more than 50 suppliers and contractors by the end of construction.

Abengoa Solana – Gila Bend, AZLargest Concentrated Solar Power (CSP) trough plant in the world

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• Support – partial guarantee of $1.3 billion loan • Jobs - Over 1,000 construction workers hired to date• Awards - 2010 Deal of the Year by Energy Risk Magazine;

nominated for Deal of the Decade by Infrastructure Magazine; nominated for 2010 Deal of the Year by Power

Finance & Risk; nominated for 2010 Deal of the Year in Renewables by Infrastructure Magazine

• Clean Air - Expected to avoid over 1,032,000 metric tons of carbon dioxide annually, equivalent to the carbon dioxide emissions of nearly 200,000 vehicles

• Homes Powered - Expected to generate enough clean electricity to power nearly 157,000 homes annually

• Construction Update – As of May 2012, over half of the project’s 338 turbines are installed, operating and

contributing clean wind power to the grid. • Supply Chain - The project utilizes 15 suppliers in nine

states to fulfill orders for the 845 megawatt wind farm, including General Electric assembly facilities in Pensacola, Florida and Tehachapi, California.

Caithness Shepherds Flat - Eastern OregonOne of world’s largest wind farms

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With support from Energy Department loans, Ford is:

• Retooling and modernizing 13 factories across six states

• Raising fuel efficiency of more than a dozen popular vehicles, including Focus, Escape, Fusion, Taurus, and F-150 trucks representing approximately two million new vehicles annually

• Supporting approximately 33,000 manufacturing and engineering jobs

• Updating older assembly plants to facilities capable of building a range of fuel-efficient vehicles from electric to hybrid to gas-powered on the same production line

Ford – Michigan, Illinois, Kentucky, Missouri, New York & OhioHelping position U.S. auto industry as leader in fuel-efficient vehicles worldwide

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• NRG Solar’s Agua Caliente, 2011 Solar Project of the Year – Renewable Energy World’s Excellence in Renewable Energy Award Program; 2011 Photovoltaic Achievement of the Year – Solar Power Generation USA

• NextEra Energy’s Desert Sunlight, 2011 North American Solar Deal of the Year – Project Finance Magazine

• NRG Solar’s Ivanpah Solar Electric Generating System, CSP Achievement of the Year – Solar Power Generation USA

• Fisker’s Karma, 2012 Design of the Year – AUTOMOBILE Magazine; First Prize – International Design Awards; Silver trophy, Innovation – Edison Awards

• Bank of America Merrill Lynch and Prologis’ Project Amp, Finance Innovation of the Year – Renewable Energy World’s Excellence in Renewable Energy Award Program; Energy Risk 2012’s Deal of the Year

• Ormat’s Jersey Valley Power Plant, 2011 Geothermal Project of the Year – Renewable Energy World

• Caithness Shepherds Flat, 2010 Deal of the Year – Energy Risk Magazine; Deal of the Decade – Infrastructure Magazine (nominated) ; 2010 Deal of the Year – Power Finance & Risk (nominated) ; 2010 Deal of the Year, Renewables – Infrastructure Magazine (nominated)

• Online Application Portal, 2010 Global Awards for Excellence in BPM & Workflow – Workflow Management Coalition and BPM.com; 2011 Laureate – International Data Group’s Computerworld Honors Program

Recognition and Validation from the Private Sector

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“Once so risky that only government backing could draw private capital, solar projects now are making returns of about 15 percent, according to Stanford University’s center for energy policy and finance…

“In 2009, solar technology was so unfamiliar that few banks would back projects that required billions in upfront investment and wouldn’t begin producing revenue for years, Klepper said...

“That year, the U.S. Energy Department began funding a program to guarantee loans for solar farms and other renewable energy projects that supported almost $35 billion in financing before winding down in September.

“The government’s endorsement assuaged investors’ concerns and built up a bigger community of people who understand how to make money from solar deals, said Arno Harris, chief executive officer of Sharp Corp.’s renewable power development unit Recurrent Energy.

‘Bankable’ Solar “’Solar is now bankable,’ Harris said. ‘When solar was perceived as more risky it required a premium,’ and now it’s ‘becoming part of a much broader capital market.’ -- Bloomberg Businessweek, 3/20/12

Businessweek Report Shows How Loans Are Helping Pave the Way for Future Private Investment