The U.S. Department of Energy (DOE) announced yesterday, September 1, 2009, that $114 million has been awarded to a South Texas wind farm in the form of the first renewable energy cash-assistance grants. According to Dave Michaels story for the Dallas Morning News, the funding was included as part of the American Recovery and Reinvestment Act (ARRA).The $114 million was awarded to Penascal Wind Farm. According to the Michaels article, this wind farm is considered controversial and is facing opposition from both environmentalists and the King Ranch. The complaints from King Ranch focus on both the incentives being sought by the wind farm developer, as well as the effect the wind farm will have in altering the landscape of ‘“pristine’ ranch land.” Environmental groups, which have sued to halt the project, believe the wind farm would kill too many birds as it is located near Baffin Bay.
However, the Spanish firm Iberdrola Renewables, which is developing the project, says it will be using radar developed by NASA and the U.S. Air Force to detect approaching birds. The 202-megwatt facility began operation in April. Currently, San Antonio utility CPS Energy and South Texas Electric Cooperative are purchasing electricity from the facility. The Wall Street Journal has reported that Iberdrola was awarded a total of $294 million in assistance for five wind farms.
In addition to the Penascal Wind Farm, the DOE announced 11 additional grants on Tuesday. The total funding for these grants is $502 million. The authorized for assistance amount for the program under ARRA is roughly $3 billion. Matt Rogers, DOE’s Recovery Act implementation senior advisor, “said the remaining awards would likely be for smaller projects.” The cash grants are available instead of renewable energy tax credits. While wind developers are actively applying for the funding, the majority of applications to date have been for solar technology.
To read the Dallas Morning News story click here.
Posted: 09/02/09