Solar Power Projects Face Potential Hurdles

The United States is finally starting to develop its first large-scale solar energy plants, beginning with the $2 billion Ivanpah project. This plant is the first of nine solar farms slated to begin construction before the end of the year. These projects have been made possible by billions of dollars in federal grants and loan guarantees, and will generate enough electricity to power three million homes.

The problem is that these grants and loan guarantees expire in about a year. With the midterm elections and a round of spending cuts so close, energy experts are worried that these projects will gain momentum, and then without more government incentives the solar energy trend will taper off again.

This situation demonstrates that while tools of government action, like grants and loan guarantees, are effective in starting projects, there needs to be continuity in their efforts or the projects will eventually be abandoned. We can only hope that the "green revolution" among American citizens will cause grassroots support for these projects that draws government attention.

-Stephanie Doctrow

http://www.nytimes.com/2010/10/29/business/energy-environment/29solar.html?ref=us

U.S. Nuclear Society in need of loan guarantee

The US Department of Energy says loan guarantee changes are needed if they are to increase the number of nuclear power plants in the country. They help the environment but are rather costly. The government gave an offer of $7.5 billion loan guarantee with an attached fee of $880 million. This shows the government knows this program needs revisions. There has been a halt in developing new nuclear power plants because additional government support is needed. In this example the US needs a loan guarantee instead of a loan because of the expensive price tag. This change in the program because of loan guarantees helps illustrate the indirect form of government helps implement public policy. The US Department of Energy was even brought up in class as an example of loan guarantees even though it is in need of reform.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Nuclear/8107310

Michelle Watkins