Latest news with #solarenergy
The Independent
11 hours ago
- Business
- The Independent
Trump administration canceled a $4.9B loan guarantee for a line to deliver green power
The Trump administration on Wednesday canceled a $4.9 billion federal loan guarantee for a new high-voltage transmission line for delivering solar and wind-generated electricity from the Midwest to the eastern U.S., but the company indicated that project would go forward anyway. The U.S. Department of Energy declared that it is "not critical for the federal government to have a role' in the first phase of Chicago-based Invenergy's planned Grain Belt Express. The department also questioned whether the $11 billion project could meet the financial conditions required for a loan guarantee. President Donald Trump has repeatedly derided wind and solar energy as unreliable and opposed efforts to combat climate change by moving away from fossil fuels. The Department of Energy also said Wednesday that the conditional commitment to Invenergy in November was among billions of dollars' worth of commitments "rushed out the doors" by former President Joe Biden 's administration after Biden lost the election. Two prominent Missouri Republicans, U.S. Sen. Josh Hawley and state Attorney General Andrew Bailey, have been vocal critics of the project, describing it as a threat to farmland and landowners' property rights. Hawley said on July 10 that he had secured a pledge from U.S. Energy Secretary Chris Wright to cancel the loan guarantee in a conversation with him and Trump. 'To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment,' the agency said in a statement. A federal loan guarantee generally makes borrowing money less costly. A statement issued for the Grain Belt Express expressed disappointment, calling the new transmission line 'America's largest power pipeline.' Construction has been set to start next year. The statement added: 'A privately financed Grain Belt Express transmission superhighway will advance President Trump's agenda of American energy and technology dominance while delivering billions of dollars in energy cost savings, strengthening grid reliability and resiliency, and creating thousands of American jobs.' Invenergy has said its project would create 4,000 jobs and new efficiencies in delivering power, and that it would save consumers $52 billion over 15 years. The line would deliver electricity from western Kansas about 800 miles (1,287 kilometers), across Missouri and Illinois and into Indiana, connecting there to the power grid for the eastern U.S. It could deliver up to 5,000 megawatts of electricity. "When electricity demand and consumer power bills are soaring, it's hard to imagine a more backward move,' said Bob Keefe, executive director of E2, a nonpartisan, Washington-based group supporting renewable energy. The decision to cancel the loan guarantee came the same day Trump unveiled a plan for U.S. dominance in artificial intelligence that includes speeding up the permitting of new data centers and factories that will boost the demand for electricity. 'This gross mismanagement of our country's energy needs will increase power bills for hundreds of millions of people while making the electricity grid less reliable,' said Laurie Williams, director of a campaign against fossil fuels for the Sierra Club environmental group. Jigar Shah, who headed the Department of Energy office handling loan guarantees under Biden, said that if an applicant meets the requirements of a conditional commitment, the department is obligated to follow through. 'This decision is illegal,' he said in a post on the LinkedIn social media platform. Hawley and Bailey have called the Grain Belt Express a 'scam." Critics object to what Hawley labels an "elitist land grab,' the company's ability to use lawsuits against individual landowners along the line's route to compel them to sell their property. Online court records show that the company filed dozens of such lawsuits in Missouri circuit courts in recent years. The Missouri Farm Bureau's president posted on the social platform X Wednesday that the project threatened to 'sacrifice rural America in the name of progress.' 'We've won a major battle in the war for Missouri's private property rights and farmers," Bailey said. 'At our urging, the DOE saw this boondoggle for what it was.' Bailey acknowledged in his comments that the project still could go forward with private funding and no loan guarantee but added, 'If Invenergy still intends to force this project on unwilling landowners, we will continue to fight every step of the way.'
Yahoo
12 hours ago
- Business
- Yahoo
New renewable projects now cheaper than fossil fuel alternatives: IRENA report
The International Renewable Energy Agency (IRENA) has confirmed that renewable power generation costs have continued to outcompete fossil fuel alternatives in 2024. The agency's latest 'Renewable Power Generation Costs in 2024' report highlights that 91% of new renewable projects were more cost-effective than new fossil fuel alternatives last year, with onshore wind and solar photovoltaics (PV) leading the charge. The report details that solar PV costs were on average 41% lower than the least expensive fossil fuel options while onshore wind projects were 53% cheaper. Onshore wind remained the most affordable source of new renewable electricity at $0.034/kWh, followed closely by solar PV at $0.043/kWh. This cost leadership has been driven by factors such as technological innovation, competitive supply chains, and economies of scale. Adding 582 gigawatts (GW) of renewable capacity in 2024, these energy sources have led to substantial cost savings by avoiding fossil fuel consumption valued at approximately $57bn. Renewables have proven not only to be cost-competitive but also beneficial in reducing dependence on international fuel markets and enhancing energy security, thus strengthening the business case for their adoption. Despite the optimism, the report acknowledges short-term challenges that could potentially increase costs. Geopolitical shifts, including trade tariffs, raw material bottlenecks, and evolving manufacturing dynamics, especially in China, are among the risks identified. Higher costs are anticipated to persist in Europe and North America due to structural challenges such as permitting delays and limited grid capacity. The report also underscores the importance of stable and predictable revenue frameworks to reduce investment risk and attract capital. It notes that financing risk mitigation is crucial for scaling up renewables, with instruments such as power purchase agreements (PPAs) being instrumental in accessing affordable finance. Conversely, inconsistent policy environments and opaque procurement processes can undermine investor confidence. Integration costs are highlighted as a new barrier to renewable deployment, with grid connection bottlenecks and slow permitting processes causing delays in wind and solar projects. This issue is particularly acute in G20 and emerging markets, where grid investment must align with the growing electricity demand and renewable expansion. Financing costs remain a decisive factor in renewable project viability, with high capital costs in developing countries inflating the levelised cost of electricity (LCOE) due to macroeconomic conditions and perceived investment risks. For instance, IRENA found that in 2024, onshore wind generation costs were similar in Europe and Africa at around $0.052/kWh, but the cost structures varied significantly due to differing capital expenditure and financing costs. Technological advances beyond generation are also enhancing the economics of renewables. The cost of battery energy storage systems (BESS) has plummeted by 93% since 2010, reaching $192/kWh for utility-scale systems in 2024. These reductions are attributed to manufacturing scale-up, improved materials, and optimised production techniques. Battery storage and hybrid systems, along with AI-enabled digital tools, are becoming increasingly important for integrating variable renewable energy. However, challenges such as digital infrastructure, flexibility, and grid expansion and modernisation must be addressed, particularly in emerging markets, to fully realise the potential of renewable energy. IRENA director general Francesco La Camera said: 'New renewable power outcompetes fossil fuels on cost, offering a clear path to affordable, secure, and sustainable energy. This achievement is the result of years of innovation, policy direction, and growing markets. 'However, this progress is not guaranteed. Rising geopolitical tensions, trade tariffs, and material supply constraints threaten to slow the momentum and drive up costs. To safeguard the gains of the energy transition, we must reinforce international cooperation, secure open and resilient supply chains, and create stable policy and investment frameworks—especially in the Global South. 'The transition to renewables is irreversible, but its pace and fairness depend on the choices we make today.' "New renewable projects now cheaper than fossil fuel alternatives: IRENA report" was originally created and published by Energy Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
Trump administration canceled a $4.9B loan guarantee for a line to deliver green power
TOPEKA, Kan. (AP) — The Trump administration on Wednesday canceled a $4.9 billion federal loan guarantee for a new high-voltage transmission line for delivering solar and wind-generated electricity from the Midwest to the eastern U.S. The U.S. Department of Energy declared that it is "not critical for the federal government to have a role' in the first phase of Chicago-based Invenergy's planned Grain Belt Express. The department also questioned whether the $11 billion project could meet the financial conditions required for a loan guarantee. President Donald Trump has repeatedly derided wind and solar energy as 'unreliable' and opposed efforts to combat climate change by moving away from fossil fuels. The Department of Energy also said Wednesday that the conditional commitment to Invenergy in November was among billions of dollars' worth of commitments "rushed out the doors" by former President Joe Biden's administration after Biden lost the election. 'To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment,' the agency said in a statement. It wasn't immediately clear how much the department's action would delay or stop the start of construction, which was set to begin next year. The company's representatives didn't immediately respond to emails Wednesday seeking comment The company has said its project would create 4,000 jobs and new efficiencies in delivering power, and that it would save consumers $52 billion over 15 years. The line would deliver electricity from Kansas across Missouri and Illinois and into Indiana, connecting there to the power grid for the eastern U.S. It could deliver up to 5,000 megawatts of electricity. "When electricity demand and consumer power bills are soaring, it's hard to imagine a more backward move,' said Bob Keefe, executive director of E2, a nonpartisan, Washington-based group supporting renewable energy. Keefe called the Grain Belt Express 'one of the country's most important energy projects' and suggested Trump canceled the loan guarantee 'just because it will bring cleaner energy to more people.' But two prominent Missouri Republicans, U.S. Sen. Josh Hawley and state Attorney General Andrew Bailey, are vocal critics of the project, describing it as a threat to farmland and land owners' property rights. Bailey called the project a 'scam' and a 'boondoggle.' Hawley said on July 10 that he had secured a pledge from U.S. Energy Secretary Chris Wright to cancel the loan guarantee in a conversation with him and Trump. Critics like Hawley object to the company's ability to use lawsuits against individual land owners along the line's route to compel them to sell their property, which Hawley called 'an elitist land grab.' Online court records show that the company filed dozens of such lawsuits in Missouri circuit courts in recent years, and the Missouri Farm Bureau's president posted on the social platform X Wednesday that the project threatened to 'sacrifice rural America in the name of progress.' Democrats on the U.S. Senate's energy committee suggested on X that Trump, Wright and Hawley 'just killed" the project, but Invenergy announced in May that it had awarded $1.7 billion in contracts for work on the project. And Bailey suggested in a statement that the project could still go forward with private funding without the loan guarantee, saying, 'If Invenergy still intends to force this project on unwilling landowners, we will continue to fight every step of the way.' John Hanna, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
16 hours ago
- Business
- Associated Press
Trump administration canceled a $4.9B loan guarantee for a line to deliver green power
TOPEKA, Kan. (AP) — The Trump administration on Wednesday canceled a $4.9 billion federal loan guarantee for a new high-voltage transmission line for delivering solar and wind-generated electricity from the Midwest to the eastern U.S. The U.S. Department of Energy declared that it is 'not critical for the federal government to have a role' in the first phase of Chicago-based Invenergy's planned Grain Belt Express. The department also questioned whether the $11 billion project could meet the financial conditions required for a loan guarantee. President Donald Trump has repeatedly derided wind and solar energy as 'unreliable' and opposed efforts to combat climate change by moving away from fossil fuels. The Department of Energy also said Wednesday that the conditional commitment to Invenergy in November was among billions of dollars' worth of commitments 'rushed out the doors' by former President Joe Biden's administration after Biden lost the election. 'To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment,' the agency said in a statement. It wasn't immediately clear how much the department's action would delay or stop the start of construction, which was set to begin next year. The company's representatives didn't immediately respond to emails Wednesday seeking comment The company has said its project would create 4,000 jobs and new efficiencies in delivering power, and that it would save consumers $52 billion over 15 years. The line would deliver electricity from Kansas across Missouri and Illinois and into Indiana, connecting there to the power grid for the eastern U.S. It could deliver up to 5,000 megawatts of electricity. 'When electricity demand and consumer power bills are soaring, it's hard to imagine a more backward move,' said Bob Keefe, executive director of E2, a nonpartisan, Washington-based group supporting renewable energy. Keefe called the Grain Belt Express 'one of the country's most important energy projects' and suggested Trump canceled the loan guarantee 'just because it will bring cleaner energy to more people.' But two prominent Missouri Republicans, U.S. Sen. Josh Hawley and state Attorney General Andrew Bailey, are vocal critics of the project, describing it as a threat to farmland and land owners' property rights. Bailey called the project a 'scam' and a 'boondoggle.' Hawley said on July 10 that he had secured a pledge from U.S. Energy Secretary Chris Wright to cancel the loan guarantee in a conversation with him and Trump. Critics like Hawley object to the company's ability to use lawsuits against individual land owners along the line's route to compel them to sell their property, which Hawley called 'an elitist land grab.' Online court records show that the company filed dozens of such lawsuits in Missouri circuit courts in recent years, and the Missouri Farm Bureau's president posted on the social platform X Wednesday that the project threatened to 'sacrifice rural America in the name of progress.' Democrats on the U.S. Senate's energy committee suggested on X that Trump, Wright and Hawley 'just killed' the project, but Invenergy announced in May that it had awarded $1.7 billion in contracts for work on the project. And Bailey suggested in a statement that the project could still go forward with private funding without the loan guarantee, saying, 'If Invenergy still intends to force this project on unwilling landowners, we will continue to fight every step of the way.'
Reuters
19 hours ago
- Business
- Reuters
Trump axes loan for Grain Belt power transmission project
WASHINGTON, July 23 (Reuters) - The administration of President Donald Trump on Wednesday axed a loan guarantee for the Grain Belt Express transmission project to send power from wind and solar energy projects in Kansas to cities in the Midwest and East. American farmers had opposed the conditional $4.9 billion loan guarantee that was initiated by the administration of former President Joe Biden, mainly due to the Grain Belt filing dozens of eminent domain, or compulsory acquisition, petitions against state landowners. The 800-mile (1,290 km) project, backed by private company Invenergy, was described by the company as the second-longest transmission line in U.S. history and a national "energy security backbone" that would connect four grid regions, including the PJM Interconnection, the largest U.S. grid spanning states from Illinois to New Jersey. The Department of Energy's Loan Programs Office, or LPO, issued the conditional loan guarantee in November. The department said in a release on Wednesday it found the conditions necessary to issue the guarantee were unlikely to be met and "it is not critical for the federal government to have a role in supporting this project." Invenergy did not immediately respond to a request for comment. The project would also have supported Trump's "energy dominance" policy of maximizing energy output. The White House on May 9 had praised a $1.7 billion Invenergy investment in the project in a "list of wins" that bolster the U.S. economy and enhance national security. But Grain Belt also jarred with the administration's opposition to renewable energy sources, which it views as unreliable and expensive compared to fossil fuels. Trump only tapped the LPO for nuclear power in his first term. The Energy Department has said it is reviewing loans, including the $85 billion in closed loans and conditional commitments LPO made between the day Trump won the election in November to the day he came back into office in January.
