The Lineup: Alaska
After Alaska’s legislature spent much of two years structuring a revolving energy efficiency loan facility, Gov. Sean Parnell signed legislation last year establishing a new loan-participation fund to be administered by the state’s development finance corporation, the Alaska Industrial Development and Export Authority (AIDEA). The Sustainable Energy Transmission and Supply (SETS) development fund’s initial capitalization…
After Alaska’s legislature spent much of two years structuring a revolving energy efficiency loan facility, Gov. Sean Parnell signed legislation last year establishing a new loan-participation fund to be administered by the state’s development finance corporation, the Alaska Industrial Development and Export Authority (AIDEA).
The Sustainable Energy Transmission and Supply (SETS) development fund’s initial capitalization is $125 million, appropriated from state revenues. Eligible projects include commercial building energy retrofits as well as clean-energy generation projects.
When SETS loans directly to property owners or other project sponsors, it will typically fill capital stack gaps while covering as much as one-third of the cost, with private lenders providing the balance. SETS can also guarantee loans or bonds tied to energy projects. The maximum that can be loaned to any venture is set at $20 million.
– Brad Berton
View information on how other states have approached green retrofit financing.
