Could DOE take stakes in US renewables companies?

US renewables projects funded by federal loans may soon need to seek relief from strict government covenants, giving the Department of Energy (DOE) an opportunity to “proactively protect the taxpayers’ interest”– possibly by taking an equity stake in companies.

That suggestion, buried in a 75-page review of the DOE Loan Guarantee Program (LGP), would represent a new role for the agency, which funds renewable-energy technology research, commercialisation and deployment.

At the height of the financial crisis in 2009, the US Treasury took a 61% stake in General Motors, but there are no obvious examples of a DOE equity stake in a private company.

The White House ordered the review of the LGP, which has been a boon to large-scale renewables developers such as First Solar and Abengoa, but…

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