The Department of Energy needs to “modernize” its loan office and grant programs to ensure effective deployment of large projects and move technologies across the “valleys of death,” according to a new report.
The analysis from the EFI Foundation, which was founded by former DOE Secretary Ernest Moniz, provides a snapshot of challenges facing federally funded energy demonstrations. The group interviewed 20 developers of projects representing $9.7 billion in investments funded by the 2021 bipartisan infrastructure law and reported DOE’s current structure can cause lengthy delays, frustration and unnecessary costs with project applications.
“DOE’s current staffing level and contracting and award processes are preventing it from fully realizing the potential of [infrastructure law] investment — and hindering any future efforts to compete in a rapidly changing energy landscape,” the report says.
According to EFI’s modeling, less than 5 percent of $61 billion in appropriated infrastructure law funding has been paid to the private sector, and projects typically took 18 months to move from award announcement to contract. Also, the costs of complying with DOE’s contracts through project updates and other requirements were “prohibitive” for many companies.
