US DOE offers US$2.5 billion loan to Wisconsin utility for renewables, energy storage projects
Summary
The approach is tailored for regulated, investment-grade utilities.Borrowers for EIR projects must demonstrate that the financial benefits from the DOE loan will be passed on the customers served by the utility. LPOs financing also comes with a lower interest rate, to help reduce upward pressure on electricity costs for WEPCOs customers.Additionally, EIR projects can be at different stages of execution, technologically diverse, and geographically varied, giving WEPCO more flexibility for utilising the funds, if finalised.EIR projects must also involve investments relating to existing energy infrastructure. LPO confirmed the project met all program eligibility requirements for inclusion in the guaranteed loan facility.Borrowers of the LPO are required to implement a community benefits plan (CBP), to ensure borrowers engage with community and labour groups to create good-paying jobs and improve the wellbeing of the community.The CBP is important for a state like Wisconsin where coal plants were once vital to local economies. The closure and transformation of Wisconsins coal plants improves air quality by reducing particulate matter, but it also impacts the families who relied on the plants for employment.WEPCOs workforce is represented by collective bargaining agreements with the International Brotherhood of Electrical Workers (IBEW) and Utility Workers Union of America (UWUA). Adhering to standards from groups like the IBEW will help keep these positions competitive and local to the communities the projects are developed in.This announcement continues the trend from the DOE and its LPO of soaring grant activity after Donald Trumps second term election, as reported by Energy-storage.news(Premium access article).In November city of Green Bay, Wisconsin commission members recommended approval for a Conditional Use Permit for a 200MW/800MWh large-scale battery storage project proposed by a subsidiary of Copenhagen Infrastructure Partners (CIP).