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Federal Government Financing Programs for Energy Ken Alston Special Advisor for Finance Office of the Secretary
September 23, 2015
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My Background
Currently: Advisor to the Secretary of Energy on Finance & Investment in Clean Energy (2012-Present)
Past: MBA/MS, Stanford University BA, University of Virginia White House National Economic
Council Senior Consultant, Booz Allen
Hamilton Co-Founder/CFO, Editas
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Overview: U.S. Department of Energy
Department of Energy at a Glance: Mission: To ensure America’s
security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.
Budget: $27.2 billion (FY 2014)
Dr. Ernest Moniz, U.S. Secretary of Energy
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DOE’s 17 National Laboratories are the largest supporter of basic research in physical sciences in the United States.
Department Of Energy National Laboratories
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Diverse Mix of DOE-Financed Energy Technologies
Solar Wind Geothermal Transmission Storage & Batteries Nuclear
Biomass CCS Powertrains & Advanced Vehicles
OFFICIAL USE ONLY – PREDECISIONAL DRAFT
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Note: Total values include estimates for undisclosed deals. Includes corporate and government R&D, and spending for digital energy and energy storage projects (not reported in quarterly statistics). Source: Bloomberg New Energy Finance 24 September 2015
New Investment in Clean energy 2004-14 ($bn)
$60bn$88bn
$128bn
$175bn
$205bn $206bn
$272bn
$318bn
$294bn
$268bn
$310bn
46%
46%
36%
17%
0.5%
32%
17%-7%
-9%16%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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SunShot Initiative SunShot Initiative
5 - 6¢/kwh without subsidy
A 75% cost reduction by the end of the decade
Pric
e SunShot
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Demonstration: DOE Applied Science Programs
• Energy Efficiency & Renewable Energy (EERE)
• Fossil Energy (FE) • Nuclear Energy (NE)
Commercial Maturity
Tech
nolo
gy M
atur
ity
R&D: DOE Labs; ARPA-E
Commercial Financing:
Private Sector Financing (Banks &
Bond Market)
DOE Programs Support the Full Arc of Commercialization
Most Least Technology Risk
Initial Commercial Deployment:
DOE Loan Programs Office (LPO)
Leas
t Te
chno
logy
Mat
urity
M
ost
Debt: US Gov’t Equity: Private Grants Grants
Debt: Private Equity: Private
OFFICIAL USE ONLY – PREDECISIONAL DRAFT
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Examples of DOE Financing Activity
Grants and Cooperative Agreements $35 billion assigned to DOE through Recovery Act (2009) that
supported more than $80 billion in capital investment Support to technologies including: Coal Carbon Capture and Storage Renewable Energy (Solar Photovoltaic, Solar Thermal, Wind,
Geothermal, Biofuels) Grid Technology (including Smart Meters) Energy Efficiency upgrades
Loan/Loan Guarantee Solicitations (Active) Advanced Fossil Energy Solicitation ($8 billion) Renewable Energy and Energy Efficiency Solicitation ($4 billion) Advanced Technology Vehicle Manufacturing Loans ($16 billion in
available authority) Nuclear Energy Technology ($12 billion)
OFFICIAL USE ONLY – PREDECISIONAL DRAFT
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Resources: Financing Opportunities
Visit: Energy.gov/finance
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BACKUP
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White House Summit (June 2015)
White House Clean Energy Investment Summit
$4 billion in private sector investment commitments
More than 100 private sector participants
Coverage from sources including: Fortune ABC News Wired Magazine Bloomberg The Guardian
“You have the capacity to fundamentally change our direction... We need you to continue to work to bring even more philanthropies and investors on board.” - Vice President Biden, June 16, 2015
February 10: ARPA-E Summit Announcement
February 26: DOE SLAC Roundtable
April 6: DOE NYC
Roundtable April 21-22:
Chicago Event June 16: White House Summit
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Revolution Now Report: Exciting Future from Economies of Scale
Solar PV Wind
Lithium-Ion Batteries LED Lighting