The U.S. Department of Energy (DOE) has issued a conditional commitment for a loan guarantee of up to $1.81 billion to Arizona Public Service Company (APS). This funding will help APS invest in clean energy infrastructure, including the construction of a 150-MW/600-MWh Agave Battery Energy Storage System (BESS). The battery storage project will be built next to a solar park in Arizona.
The DOE’s Loan Programs Office (LPO) has ramped up efforts to finalize loans before the start of President Trump’s second term on January 20. Since the November elections, the office has announced approximately $54 billion in loans or loan guarantees, with over $38 billion issued in just the past few months.
“They see the writing on the wall… They want to distribute as much money as possible to secure progress on key projects,” said Kennedy Nickerson, a former policy adviser to the LPO.
In addition to the APS loan, the DOE has made several other significant commitments. These include a $15 billion loan to Pacific Gas and Electric for infrastructure upgrades, marking the largest loan ever issued by the LPO. Other major deals include a $7.54 billion loan to Samsung and Stellantis for a battery plant in Indiana, and a $6.57 billion loan to electric vehicle manufacturer Rivian.
However, some critics warn that the rush to allocate funds could face future scrutiny. Vivek Ramaswamy, co-chair of the Department of Government Efficiency, stated that his team would closely examine “every one of these questionable 11th-hour transactions.”
“This makes it highly likely that the LPO will be a target for review,” said Kevin Book, co-founder of research group ClearView Energy Partners. “The outgoing administration is likely trying to lock in as many loan guarantees as possible before the transition.”
As the DOE continues its push to support clean energy projects, the future of these loans may depend on how the incoming administration handles the ongoing distribution of funding.
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