Illinois Launches Community-based Wind Power Loan Program
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November 10, 2005 Photo: NREL |
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November 10, 2005 Photo: NREL |
"Governor Blagojevich understands wind turbines
help farmers and co-ops diversify their income stream which, in turn, helps
strengthen the economic environment throughout Illinois. Through long-standing
relationships in the agricultural community, we've identified tremendous
interest for assistance in financing these types of projects, and now we have
the resources to do it."
-- Jill Rendleman, interim executive director of the Illinois Finance Authority
Chicago, Illinois [RenewableEnergyAccess.com]
Illinois Gov. Rod R. Blagojevich announced the
launch of a $4 million Renewable Energy Development (RED) Fund that will support
community-scale wind-energy projects throughout Illinois. The Illinois Finance
Authority (IFA) will work with community banks and lenders to provide loans and
loan guarantees to qualified farmers and farmer co-operatives who construct wind
turbine projects less than 20 MW in capacity. The program begins immediately
with a goal to launch community-scale projects by the end of 2006 that will
generate new wind-to-energy market capacity across the state. This aggressive
effort to promote the use of wind energy in Illinois is part of the Governor's
Opportunity Returns initiative, his comprehensive strategy to promote economic
growth throughout the state.
"Relying more on our homegrown energy sources will not only make our air cleaner
to breathe, but will also provide consumers some relief from high gas prices,
help make the energy grid more reliable and bring much-needed jobs and economic
growth to our rural communities. This partnership with the Illinois Clean Energy
Community Foundation will help increase our use of one of Illinois' untapped
renewable natural resources and provide an important economic boost to our
farmers," Gov. Blagojevich said.
In the State of the State Speech earlier this year, Gov. Blagojevich announced
his commitment to a Renewable Energy Standard for Illinois with a plan for the
state to get 8 percent of its total electricity supply from renewable energy
resources like wind by 2012 -- up from less than 1 percent today. A recent study
by the University of Illinois at Chicago found that Gov. Blagojevich's plan also
would create 7,800 jobs by 2012.
The Illinois Clean Energy Community Foundation (ICECF) and the IFA worked
together to develop the RED Fund to support a primary mission of both
organizations: to encourage and support development of renewable energy
resources. With the Foundation providing the financial resources, the Authority
will use its financing expertise and community banking relationships to help
Illinois farming operations obtain access to capital for wind-to-energy
projects.
"Governor Blagojevich understands wind turbines help farmers and co-ops
diversify their income stream which, in turn, helps strengthen the economic
environment throughout Illinois," said Jill Rendleman, interim executive
director of the IFA. "Through long-standing relationships in the agricultural
community, we've identified tremendous interest for assistance in financing
these types of projects, and now we have the resources to do it."
Within the next six months, the IFA will host at least three informational
seminars across Illinois to educate farmers, landowners, developers and
agricultural lenders about the RED Fund and its requirements. Community banks
will be encouraged to lend funds for the development of wind projects that meet
the Authority's qualifying parameters. The same evaluation and approval process
currently in use for existing IFA loans and guarantees will be used.
Under the general provisions of the RED Fund, borrowers must contribute a
minimum of 10 percent equity and are limited to community-scale projects that
are under 20 MW. Projects must be located in Illinois and will be required to
meet the specific requirements of the participation loan or loan guarantee being
requested.
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