DOE plans extension of renewable energy incentive program

Washington (Platts)--26Jun2006

An Energy Department program that provides state and municipal utilities
with a financial incentive for renewable-energy based production would be
extended for 20 years under a proposal issued Monday by DOE.

The Renewable Energy Production Incentives program was originally
established under the Energy Policy Act of 1992 for 10 years, ending in 2003.
The Energy Policy Act of 2005 reauthorized the program until 2026.

In a Federal Register notice, DOE said it will provide the
incentive -- currently calculated at 1.8 cents/kWh -- for projects started
between 2004 and 2016.

Since the program's inception in 1994, the department has paid incentives
to projects during their first 10 years of operation. Thus, while REPI has not
take on any new projects since 2003, it has continued to support those
established previously.

The program paid $4.9 million to projects in 2005, with Richland,
Washington-based Energy Northwest collecting $2.3 million of that amount.

"The changes made by EPACT 2005 reinforce the program as it has been
conducted by DOE for over 12 years and do not alter its basic structure," the
department said in the notice.

The rulemaking, however, does add Indian tribal governments and Native
corporations to the list of eligible participants in the program, as well add
ocean thermal energy to the list of qualifying technologies. The proposal also
offers a new formula for allocating funds to the projects when DOE's
appropriation is insufficient to cover them entirely.

The department will accept public comments on the rulemaking until July
26.

For similar news, take a trial to Platts Inside Energy at
http://insideenergy.platts.com

 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.