Financing clean energy innovations to cut carbon emissions
The US Department of Energy has helped prevent more than 60 million metric tons of CO2 emissions with sophisticated loan programs for clean energy.
Background
The U.S. Department of Energy’s Loan Programs Office (LPO) has played a pivotal role in developing photovoltaic (PV) solar power across the country over the last decade. By financing innovations such as utility-scale PV solar power projects and Electric Vehicle manufacturing, the LPO catalysed the development of America’s clean energy infrastructure and created jobs, while protecting U.S. taxpayers.
Approach
The LPO tapped JLL to help develop every aspect of its lending programs. We invested significant resources to enable the LPO establish standard procedures for everything from financial analyses and management, loan structures and credit policies to risk rating tools, origination practices and an enterprise risk management framework. With its portfolio rapidly expanding, we’ve further supported the LPO’s portfolio management operations.
Looking ahead, the LPO is now focusing on advancing President Biden’s objectives for climate change and manufacturing. It has also recognized that it needs to transition to a business development approach which more closely resembles that of the private lending sector than a government agency. We are now helping the LPO step up its market outreach to deploy approximately $40 billion to finance more innovations as its current portfolio of loans and loan guarantees matures.
Results
- Since inception, LPO-funded projects have:
- Prevented more than 60 million metric tons of C02 emissions
- Produced more than 20 million electric vehicles
- Generated 73,473 gigawatt hours of clean electricity
- More than $35 billion in loans and loan guarantees provided to finance first-of-their-kind clean energy innovations
