Obama Is Doubling Investments In Alternative Energy

A futuristic vision of Barack Obama, the US President, is now expressed in a huge plan for the development of renewable energy. According to the budget, it is planned to double the investment in research and development of renewable and clean energy sources. The budget will be sent to Congress this week.

This announcement is a logic step after the President’s speech at the Paris Climate Conference. There Obama stresses the efforts of his administration in supporting sources of energy alternative to oil and coal. According to his plans, the investment will be doubled from $6.4 billion dollars to $12.8 billion dollars by 2020.

 Funds and Development

The President Barack Obama supports investments in clean and renewable energy. He explained his idea to make the alternative energy Production Tax Credit refundable and permanent. It will increase investments in this sphere and attract different private investors. The private sector has also shown a great development. A lot of companies are already using the service of Solar Panels Company. This company helps people gain solar power benefits.

The Presidential proposition is not just words. Financial basis for the alternative energy project is created right now. The government is responsible for setting up a fund of $1.25 billion dollars. It is backed by private and state-owned institutions. This money is planned to be used for changing the scale of alternative energy generation from 37 GW at the present moment to 175 GW by 2022.

The Process of Fundraising

According to the mood of the Republican part of the Congress, the new budget will not be favorably received by some of these leaders. The Washington Post has announced the statement of the Republican part of the House and Senate budget committees. The Republican leaders said that there will not be a customary hearing on the budget proposal of the President on the next day after it is received. It only natural that solar activists are taking legal action against public utilities in Nevada.

Nonetheless, right now fundraising is quite successful. Ministry of New and Renewable Energy, Joint Secretary, Varsha Joshi informed that Rural Electrification Corp Ltd and Power Finance Corp Ltd, which are institutions owned by the State, have already invested $300 million in this project.

Joshi also said that the funding is going to make mezzanine and equity investments in alternative energy projects. The fund will be organized like the NIIF or the National Infrastructure Investment Fund. The NIIF is partly supported by private investors, and it has been set up with a corpus of about Rs 40,000 crore.

According to professional estimators, almost half of the target has already been achieved. It is about $57 billion dollars that have been already gathered by financial institutions. This money is going to be used for supporting nearly 78 GW of clean and renewable energy.

Achievements and Plans

During the presidential term of Obama solar electricity generation has been increased by twentyfold. Also, electricity production based on wind power has been tripled. The development of alternative energy sources has been improved in general. According to clean energy experts, there is a plan to install 100 megawatts of renewable capacity across housing subsidized by federal money. 10 gigawatts of the renewable energy will be permitted on public lands while military necessities will use 3 gigawatts. There is also a plan to double solar and wind electricity generation in the US by 2025.

The modern generation has already understood the importance and necessity of alternative energy development. The US is a great example of a country making quick and determined solutions in this sphere. Another great example is South African solar landscapes. Money used for research of clean and renewable sources of energy will lead us to an environmentally friendly existence.