By: John Nikoloff, President of ERG
Last week, I told the Pennsylvania Energy Development Authority that the program (PEDA) has played a unique role in state government's energy funding, and support for technological advances in clean energy should not be lost.
PEDA has been a funding source for advanced technology companies, those researching new processes, developing new applications and those needing support to leverage private financing to commercialize these processes. Research has always been a key component required of PEDA grantees. Since its inception, PEDA has taken a leading role in state funding of clean coal technologies and energy related research.
In recent years, PEDA grants were given to companies and universities for development of fuel cells and components, solid oxide fuel technology, advanced battery development, thin film and organic solar projects, torrefaction, clean coal technologies and biogas processes, just to name a few examples.
PEDA's Board and staff deserve much praise for their vision, their review process and the cooperative work they have demonstrated in supporting technological developments. PEDA remains the only state program that is positioned to support small companies in these early stage efforts, because other programs place a higher emphasis on direct job creation.
A small firm which uses state funds to achieve breakthroughs in new technology or applications can result in new and expanded manufacturing, and the indirect creation of thousands of jobs.
Despite the continued activity by PEDA, the future of the Authority and its mission remain in question, given the new realities of state government and spending. The Authority is an independent public financing authority, and its mission is to finance clean, advanced energy projects in Pennsylvania. The Authority presently can award grants, loans, and loan guarantees.
PEDA is also responsible under the law for developing an Energy Development Plan for the commonwealth, for energy policy goals and allocation and distribution of financial and technical assistance. The last state Energy Development Plan was formalized in 2008.
Hopefully, this is not a eulogy for the PEDA program, which has a limited amount of remaining funds and no ongoing revenue stream. ERG urges the Board to consider using its remaining funds to support technological development, and the Corbett Administration to explore avenues for additional funding for the future. Advanced energy companies and projects can attract new investment to Pennsylvania, create high tech attractive jobs and stimulate technological innovation.
