News about Solar, Wind and alternative green power technologies

America was the leader in the development of renewable energy like solar, wind and geothermal energy in 1980s. They are now making their best comeback by supporting the growth of renewable energy throughout the nation. The recent American Recovery and Reinvestment Act is one of the greatest investment plans ever seen in United States economy. It provides $787 billion in federal funding.

The Recovery Act has been planned to address three concerns, first, to end the recession, Secondly, to put the country on the road back to development and last to assure a sustainable economic prospect. It is a road-map to re-construct the foundation of the American economy.

There is roughly $100 billion being injected into the field of innovative and trans-formative programs. This colossal sum of federal spending is targeting the revival of a new industry in America emphasising on:

1. Promoting Clean Energy
2. Renewable Investment (research and development)
3. Solar Energy
4. Wind Energy

America was a world leader in the development of renewable energy in the 1980s and onwards. However, overseas market experienced a radical expansion through foreign government policies and incentives. In other words, the production industry of renewable energy such as wind, solar and geothermal power in other countries has grown beyond American’s renewable manufacturing industry.

The Recovery Act is re-positioning U.S as an innovative manufacturing and renewable industry. This will create employment, decrease CO2 emissions and assure sustainability in energy.

The short-term goal set for 2010 by Obama’s administration was to multiply renewable energy generation capacity from sources such as geothermal, wind and solar by 100 percent. It is a very strong goal. America will install as much renewable energy in three years as they did over the last 30 years. Obama’s aim is to regain world leadership in manufacturing of solar, wind and geothermal energy.

The target is to expand solar, geothermal and wind energy from 28.8 GW per end of 2008 to 57.6 GW before 2012. This quantity of energy will be adequate to provide energy to 16.7 million homes. An equal aim has been established for the manufacturing industry where annual output of renewable equipment was equivalent to 6 GW in 2008 but the aim is to reach a production potential of 12 GW before 2012.

In the United States there has been significant progress towards these two goals. Despite the poor economic outlook in 2009, the Recovery Act is supporting both construction and manufacturing expansion. If it wasn’t for the Recovery Act, renewable energy would likely experience a slump.

Investment in alternative energy projects is creating employment as well as driving the cost of renewable technologies down through economies of scale. There are funds from Recovery Act that are supporting research projects in solar thin films, innovative wind turbines. These research findings can help to bring cost even further down to match the cost competitiveness of renewable energy to that of fossil fuel like coal.

There are currently three programs supporting the deployment and manufacturing of alternative technologies:

1. Manufacturing Tax Credits (48C)

- More than $2 billion in tax credits has been awarded to 183 projects across 43 states for the manufacturing of clean energy.
- For qualified advanced energy projects a 30 percent tax credit is offered.
- A leverage of $2 per $1 of tax credits is offered on private capital.

2. Loan Guarantees

- A total of $2 billion loan for assured renewable deployment and manufacturing projects. The loan is either conditional or based on a closed guarantee.
- Large projects that create a total of 5,000 construction as well as permanent work, while equally increasing the generation of renewable energy by 3GW and reduces the greenhouse emission by 30 million CO2 tons per annum, is offered loan guarantees.

3. Payment-in-lieu-of-tax-credit (1603)

- More than $3 billion has been provided for payment-in-lieu-of-tax-credit for above 500 different renewable energy generation projects across 44 states.
- These projects must guarantee 10,000 construction jobs as well as 2,000 permanent operating jobs.
- The projects must provide above 4GW of clean energy once the power plants are functional.

Video: Details of Recovery Act

Part 2: Solar Power Supported Through the Recovery & Reinvestment Act
Part 3 Wind Power Supported Through the Recovery & Reinvestment Act
Source: REVE