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“It’s Confederate Disneyland, and it’s about to be SeaWorld,” says Susan Crawford, the author of a new book about the city.

In the last few years, climate change has made its impact known in violent, eye-grabbing ways. Heat waves and drought slowly roll across the planet; hurricanes and floods and wildfires bring sudden devastation to communities that were once safe. But there are also slower, more insidious impacts that we can easily forget about in the wake of those disasters, including the most classic impact of them all: sea-level rise.
The East Coast is particularly vulnerable to rising seas, and in her new book Charleston: Race, Water, and the Coming Storm (Pegasus Books, April 4, 2023), Susan Crawford, a writer and professor at Harvard Law School, explores how the historic city, the largest in South Carolina, is preparing — or failing to prepare — for what’s to come. Flooding has become increasingly commonplace in Charleston, Crawford writes, and the city’s racial history has meant that low-income communities of color are bearing the worst of the impact, with little hope for relief.
Charleston is a bellwether for what the rest of the East Coast can expect as the waters of the Atlantic creep ever higher. When we spoke, Crawford, author of the books Fiber and The Responsive City, among others, began by describing her book as a survival story rather than a climate story. Our conversation has been edited for length and clarity.
Things are pigeonholed as climate inappropriately. This is more about the question of: Can we overcome our polarization and limitations as human beings and plan ahead for a rapidly accelerating cataclysm that will, in particular, hit the East Coast at three or four times the rate of speed it goes the rest of the world? Can we plan ahead? Can we think about what anybody with a belly button needs to thrive? Because after all, isn’t that the role of government?
I came to Charleston initially on a solo vacation in December 2017. I went there for Christmas. And it’s an interesting place, but I didn’t really know what the history of it was. And I decided to go back in February 2018 to interview the man who’d recently stepped down as mayor, Joe Riley. He had been mayor for 40 years. His tagline was America’s favorite mayor. And he had transformed Charleston over his tenure into a tourist magnet, seven million tourists a year. Lots of development. It became a food and arts destination. And I was just curious about Mayor Riley. So I contacted a local journalist named Jack Hitt, and he suggested that I ask the mayor about the water.
So, when I interviewed Riley, I asked him about flooding. And he’s a very charming guy, little bowtie, little khaki suit. And he clammed up. All he said was that it was going to be very expensive. That was it.
And I said, “huh, maybe there’s a story here.” And this became a quest to try to figure out what the Charleston story was. At first, I thought it was going to be a story of local government heroism. And in a sense, it still is. I think the city is, in a sense, doing what it can. But then I was lucky enough to be introduced to several Black resident leaders at Charleston who were very generous to me and explained what it’s like to be Black in Charleston, and the ongoing lack of a Black professional class in Charleston. There’s sort of the idea that the civil war never ended in Charleston: There’s a lack of Black advisors near the mayor, although there are Black members of city council.
Charleston’s successes and failures are just harbingers of what we will be seeing up and down the East Coast. They’re more visible in Charleston, and Charleston lives in the dreams of millions of people who want to visit. The failures of the structures around Charleston and inside Charleston are fractal in nature. They are replicated across the globe. It’s Confederate Disneyland, and it’s about to be SeaWorld.

Charleston is extremely low in terms of its topography. The peninsula itself was built on fill, like much of Boston. Enslaved people filled in the perimeter of what is now today’s peninsula. So about a third of that peninsula — the lower part where these gorgeous historical houses are — is five feet or less above sea level. And then these outlying suburbs, many of which were annexed into Charleston’s property tax base by Mayor Riley over the course of his mayoralty, were historically marshy wetlands. There’s very little high land in the entire city of Charleston. A lot of the area outside off the peninsula is about 10 feet or less above sea level. So Charleston’s topography sets it up for the threat of rising waters.
It’s actually more exposed than the Netherlands, because it’s not as if there are defined waterways that lead inland — it’s actually a gazillion interconnected tiny watersheds across a flat area. So water can just roll over the place unimpeded when it rises.
Charlestonians have almost gotten used to ongoing flooding, there’s a sort of complacency that sets in. And there’s also, I think, a sense in Charleston, that they’ve missed a lot of big storms recently, and maybe they believe it’s not going to happen to them. But they’re just one storm away from being flattened, basically.
Right now the city has a single planning horizon in mind, which is 2050, and a single level of sea level rise, which is 18 inches. That might be fine up until 2050. But after that we’re going to see very rapidly accelerating sea level rise — scientists are predicting more like three feet by 2070. And then at least five by the end of the century.
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Charleston was the place where 40% of the enslaved people forcibly brought to America first step foot. It’s the place where, after the slave trade was outlawed in 1808, a great deal of the domestic slave trade was carried out. Its entire economy, initially, was based on extractive labor from enslaved people.
After the Civil War, a lot of free Black people moved onto the peninsula seeking work. Charleston in the 1970s was a majority Black peninsula, with 75% Black residents. Today, it’s at most 12 percent on the peninsula: That whole population has been displaced and moved to North Charleston, which has one of the highest eviction rates in the country, or off in far flung suburban areas where it’s cheaper. There are still some concentrated areas of Black residents on the peninsula on the east side, which floods all the time and has been a lower income area for all of Charleston’s history. And then there are public housing areas, mostly inhabited by Black residents.
Well, for a long time, Charleston, simply lived with flooding and let its sewage go right into the water. But in the late 19th century, a brilliant and energetic engineer figured out how to install tunnels underneath the streets of the peninsula that would drain sewage away from the houses and also take water out of the streets. It’s a gravity driven tunnel system, and a lot of that system is still in place.
But gravity isn’t going to help as the seas rise. The peninsula will be at the same level as the sea, so the gravity-based system won’t function. The city’s hard working stormwater manager is working on upgrading that system substantially, furnishing them with pumps, so they don’t have to rely just on gravity. But they’re going to need a lot of pumping to get the water off the streets in order to make life possible on the peninsula.
Mayor Riley, to his credit, developed a stormwater plan in 1984. But it was all very expensive, and many of the projects have not yet been completed, in particular on the west side of the peninsula. And all of that planning is premised on the idea that you’re supposed to pump the water off the peninsula, that no matter how much water there is, you’re going to take it away. That kind of money has not been invested in the outlying suburbs. When water comes there it just sits.
The other factor is that the groundwater in Charleston is very close to the surface. So as seas rise, the groundwater is also going to be rising and it will have nowhere to go. You know, they’re doing their best to think of ways to get that water away. But as rainwater gets heavier and seas rise, groundwater rises, and you’ll have a situation of chronic inundation.

This is gradually shifting, but at the state level, certainly, you’re better off not talking about the human causes of climate change. There’s no point. Because then you look as if you’re Al Gore, bringing the heavy hand of government everywhere, and that’s not a good look. And the state government makes it impossible for cities to include the idea of retreating in their comprehensive plans.
When I first interviewed current Mayor Tecklenburg about this whole subject, he said, “do you want to talk about climate change or sea level rise?” And at first I was befuddled, but then I understood what he was saying: Let’s not talk about why it’s happening. But we can talk about the fact that it is happening, because we see it every day.
And so that that’s the approach: Don’t talk about the causes, talk about what’s going on. And in fact, that is, for me, the entire approach of this book. I, of course, fully accept that humans are causing the forcing of temperatures to their stratospheric heights these days, and we need to lower emissions and do whatever we can to decarbonize our economy. But I’m concerned that even if we do that, the changes in the climate that are already baked in are going to have disastrous effects on human beings’ lives. So we need to be planning in both directions at once, both planning to reduce missions and planning to help people survive.
One of the leading characters here is Reverend Joseph Darby, who is a senior AME minister, and also the co chair of the local NAACP branch in Charleston. He’s in his 70s, very wise, and he has, of course, personally experienced flooding, and in particular, flooding that makes his church inaccessible since he’s a preacher on the peninsula.
He told me he learned early in his career that it was important never to be surprised by anything he heard in Charleston. He could be shocked, he could be astonished, but he couldn’t be surprised. He continues to feel that way in the absence of powerful Black voices advising the mayor.
His two boys moved away from Charleston, as much as he might have hoped that they would stay. The Black professional class doesn’t stay in Charleston because it’s just too hard. It’s just not worth it. He feels that there’s a sort of a benevolent paternalism from political leaders, a sense of “we know what’s best for you folks.”
The Black leaders I talked to pointed out that nobody is talking about how we’re going to help low income and Black residents of the region who have nowhere to go when the flooding hits in a big way. Nobody’s talking about the kind of holistic support services that are going to be needed, and this will just further entrench and amplify the inequality and unfairness. They also point out that this is a regional problem and national problem. And they just don’t see that kind of coordination happening.
Yeah, the big plan in Charleston is to work with the Army Corps of Engineers on building a 12-foot-tall wall around the peninsula with gates in it, that would, in theory, protect the peninsula from storm surges. The wall wouldn’t be designed to protect the 90% of people who don’t live on the peninsula. Nor would it be designed to do anything about the heavy rain or the constant high tides. It’s just for storm surges.
It’s a plan to protect the high property values on the peninsula, and in particular the areas that are good for tourism. You know, pillars of the Charleston economy. It’s fair to say that that if it’s ever built, that wall will be outmoded by the time it’s finished, because it’s built to a very low standard — 18 inches of sea level rise by 2050. The reason it’s built to such a low standard is that if it was any higher the wall would mess with the freeways that come onto the peninsula from the airport. And the Army Corps of Engineers representative was pretty frank about that. He said that just wouldn’t pencil out, that wouldn’t make sense economically to build anything higher.
So I mean, Charleston is stuck, because the only vessel for money right now is coming through these armoring projects being built by the Army Corps. And the plan is for that wall to be built in very slow sections, gradually protecting parts of the peninsula. As planned, it would take 30 years to build. So the underlying plan is for Charleston to be hit by a disaster that then causes enormous concern and empathy for Charleston, and a huge congressional appropriation bill. That’s what happened after Katrina. And then that wall would be finished quickly,
The wall as designed would not protect a couple of Black settlements farther up the peninsula, because the cost benefit analysis doesn’t work out. But it’s not Charleston’s fault that it’s planning on a disaster, because our entire approach to this survival question is premising on disaster recovery, not on proactive planning. There are 30 federal agencies that have all these scattershot programs that are aimed at disaster recovery, and there is very little advanced planning going on.
Well, in our country, we’ve had decades of exclusion through segregation and redlining and soft processes not quite understood by a lot of people that have pushed Black citizens into lower, more rapidly-flooding areas. And that history then plays out into what we decide to value. If our history has put Black Americans into more flood-prone, lower value housing over time, then it’s a garbage-in, garbage-out algorithm. If we then decide to only protect the places that are high property value, we will inevitably, yet again, exclude Black residents from the benefit of federal planning.
So it’s a pattern that was set a long time ago and did not arise by accident, playing out in the way we make decisions today.
And to its credit, the Biden administration just issued a terrific Economic Report of the President that said inequality and property values and ownership in the U.S. reflects decades of exclusion of racial minorities from home ownership and public investment, and we need different criteria to capture the differential vulnerability of these populations. So yeah, they’re on it. They understand.
No, Congress has already voted on the Charleston project. They say they’ve got this great benefit-cost ratio, one of the best in the nation, they’re really trumpeting it. It feels strange that we would pump billions of dollars into short sighted armoring of coastline that doesn’t protect against the daily harms we know are going to happen.
Well, people’s attachment to their homes is very deep. Not just for Black residents who can’t afford to leave, but for white residents and rich people as well. It’s likely it will take a series of disasters separated by very few months to convince everybody that this place really isn’t going to be livable. For decades, we already know that you can show maps to city planners, you can talk about the data to people until you’re blue in the face. This is especially true when it comes to coastal properties. It’s not rational. People are highly reluctant to leave.
It also could be a sudden cliff in property valuation, which is likely to happen in the next few years as there are actors in the financial system who fully understand this. Private flood insurers walked away from selling insurance there, leaving the federal government providing 95% or more of the flood insurance in Charleston. At some point, the fact that coastal real estate is now overvalued in the United States to the tune of $200 billion will be reflected in residential property markets up and down, and people will be unable to sell their houses. And then we might see a change in behavior.
The only country in the world that is actively talking about relocation is the Netherlands. They are planning or at least talking about needing to keep options open to move large populations away from Amsterdam, Rotterdam, towards Germany. But for everybody else, it is extremely difficult to talk about it. And you would hope that we wouldn’t have to have a global economic crisis to force planning, because that’s what this would amount to. It would be worse than 2008 if this overvaluation is suddenly corrected, because the loss of property value is permanent, and it’s not coming back. And it would be too bad if it took that kind of market crash to force planning in this direction.
If we had a president who was able to engage in long term planning, we could, with dignity and respect, change the financial drivers and levers and incentives to encourage people to understand this risk and move away from it without having to lose all their wealth. And without having to be cast into the role of migrants.
We absolutely can do this. We built the Hoover Dam, and we built the Interstate Highway System. We can afford what we care about. And if this was a priority, we could do this. But for me, the moment of redemption, the first moment of redemption will be when it’s somebody’s job in the White House to speak publicly about this constantly in league with the best scientists in the world.
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In practice, direct lithium extraction doesn’t quite make sense, but 2026 could its critical year.
Lithium isn’t like most minerals.
Unlike other battery metals such as nickel, cobalt, and manganese, which are mined from hard-rock ores using drills and explosives, the majority of the world’s lithium resources are found in underground reservoirs of extremely salty water, known as brine. And while hard-rock mining does play a major role in lithium extraction — the majority of the world’s actual production still comes from rocks — brine mining is usually significantly cheaper, and is thus highly attractive wherever it’s geographically feasible.
Reaching that brine and extracting that lithium — so integral to grid-scale energy storage and electric vehicles alike — is typically slow, inefficient, and environmentally taxing. This year, however, could represent a critical juncture for a novel process known as Direct Lithium Extraction, or DLE, which promises to be faster, cleaner, and capable of unlocking lithium across a wider range of geographies.
The traditional method of separating lithium from brine is straightforward but time-consuming. Essentially, the liquid is pumped through a series of vast, vividly colored solar evaporation ponds that gradually concentrate the mineral over the course of more than a year.
It works, but by the time the lithium is extracted, refined, and ready for market, both the demand and the price may have shifted significantly, as evidenced by the dramatic rise and collapse of lithium prices over the past five years. And while evaporation ponds are well-suited to the arid deserts of Chile and Argentina where they’re most common, the geology, brine chemistry, and climate of the U.S. regions with the best reserves are generally not amenable to this approach. Not to mention the ponds require a humongous land footprint, raising questions about land use and ecological degradation.
DLE forgoes these expansive pools, instead pulling lithium-rich brine into a processing unit, where some combination of chemicals, sorbents, or membranes isolate and extricate the lithium before the remaining brine gets injected back underground. This process can produce battery-grade lithium in a matter of hours or days, without the need to transport concentrated brine to separate processing facilities.
This tech has been studied for decades, but aside from a few Chinese producers using it in combination with evaporation ponds, it’s largely remained stuck in the research and development stage. Now, several DLE companies are looking to build their first commercial plants in 2026, aiming to prove that their methods can work at scale, no evaporation ponds needed.
“I do think this is the year where DLE starts getting more and more relevant,” Federico Gay, a principal lithium analyst at Benchmark Mineral Intelligence, told me.
Standard Lithium, in partnership with oil and gas major Equinor, aims to break ground this year on its first commercial facility in Arkansas’s lithium-rich Smackover Formation, while the startup Lilac Solution also plans to commence construction on a commercial plant at Utah’s Great Salt Lake. Mining giant Rio Tinto is progressing with plans to build a commercial DLE facility in Argentina, which is already home to one commercial DLE plant — the first outside of China. That facility is run by the French mining company Eramet, which plans to ramp production to full capacity this year.
If “prices are positive” for lithium, Gay said, he expects that the industry will also start to see mergers and acquisitions this year among technology providers and larger corporations such as mining giants or oil and gas majors, as “some of the big players will try locking in or buying technology to potentially produce from the resources they own.” Indeed, ExxonMobil and Occidental Petroleum are already developing DLE projects, while major automakers have invested, too.
But that looming question of lithium prices — and what it means for DLE’s viability — is no small thing. When EV and battery storage demand boomed at the start of the decade, lithium prices climbed roughly 10-fold through 2022 before plunging as producers aggressively ramped output, flooding the market just as EV demand cooled. And while prices have lately started to tick upward again, there’s no telling whether the trend will continue.
“Everyone seems to have settled on a consensus view that $20,000 a tonne is where the market’s really going to be unleashed,” Joe Arencibia, president of the DLE startup Summit Nanotech, told me, referring to the lithium extraction market in all of its forms — hard rock mining, traditional brine, and DLE. “As far as we’re concerned, a market with $14,000, $15,000 a tonne is fine and dandy for us.”
Lilac Solutions, the most prominent startup in the DLE space, expects that its initial Utah project — which will produce a relatively humble 5,000 metric tons of lithium per year — will be profitable even if lithium prices hit last year’s low of $8,300 per metric ton. That’s according to the company’s CEO Raef Sully, who also told me that because Utah’s reserves are much lower grade than South America’s, Lilac could produce lithium for a mere $3,000 to $3,500 in Chile if it scaled production to 15,000 or 20,000 metric tons per year.
What sets Lilac apart from other DLE projects is its approach to separating lithium from brine. Most companies are pursuing adsorption-based processes, in which lithium ions bind to an aluminum-based sorbent, which removes them from surrounding impurities. But stripping the lithium from the sorbent generally requires a good deal of freshwater, which is not ideal given that many lithium-rich regions are parched deserts.
Lilac’s tech relies on an ion-exchange process in which small ceramic beads selectively capture lithium ions from the brine in their crystalline structure, swapping them for hydrogen ions. “The crystal structure seems to have a really strong attraction to lithium and nothing else,” Sully told me. Acid then releases the concentrated lithium. When compared with adsorption-based tech, he explained, this method demands far fewer materials and is “much more selective for lithium ions versus other ions,” making the result purer and thus cheaper to process into a battery-grade material.
Because adsorption-based DLE is already operating commercially and ion-exchange isn’t, Lilac has much to prove with its first commercial facility, which is expected to finalize funding and begin construction by the middle of this year.
Sully estimates that Lilac will need to raise around $250 million to build its first commercial facility, which has already been delayed due to the price slump. The company’s former CEO and current CTO Dave Snydacker told me in 2023 that he expected to commence commercial operations by the end of 2024, whereas now the company plans to bring its Utah plant online at the end of 2027 or early 2028.
“Two years ago, with where the market was, nobody was going to look at that investment,” Sully explained, referring to its commercial plant. Investors, he said, were waiting to see what remained after the market bottomed out, which it now seems to have done. Lilac is still standing, and while there haven’t yet been any public announcements regarding project funding, Sully told me he’s confident that the money will come together in time to break ground in mid-2026.
It also doesn’t hurt that lithium prices have been on the rise for a few months, currently hovering around $20,000 per tonne. Gay thinks prices are likely to stabilize somewhere in this range, as stakeholders who have weathered the volatility now have a better understanding of the market.
At that price, hard rock mining would be a feasible option, though still more expensive than traditional evaporation ponds and far above what DLE producers are forecasting. And while some mines operated at a loss or mothballed their operations during the past few years, Gay thinks that even if prices stabilize, hard-rock mines will continue to be the dominant source of lithium for the foreseeable future due to sustained global investment across Africa, Brazil, Australia, and parts of Asia. The price may be steeper, but the infrastructure is also well-established and the economics are well-understood.
“I’m optimistic and bullish about DLE, but probably it won’t have the impact that it was thought about two or three years ago,” Gay told me, as the hype has died down and prices have cooled from their record high of around $80,000 per tonne. By 2040, Benchmark forecasts that DLE will make up 15% to 20% of the lithium market, with evaporation ponds continuing to be a larger contributor for the next decade or so, primarily due to the high upfront costs of DLE projects and the time required for them to reach economies of scale.
On average, Benchmark predicts that this tech will wind up in “the high end of the second quartile” of the cost curve, making DLE projects a lower mid-cost option. “So it’s good — not great, good. But we’ll have some DLE projects in the first quartile as well, so competing with very good evaporation assets,” Gay told me.
Unsurprisingly, the technology companies themselves are more bullish on their approach. Even though Arencibia predicts that evaporation ponds will continue to be about 25% cheaper, he thinks that “the majority of future brine projects will be DLE,” and that DLE will represent 25% or more of the future lithium market.
That forecast comes in large part because Chile — the world’s largest producer of lithium from brine — has stated in its National Lithium Strategy that all new projects should have an “obligatory requirement” to use novel, less ecologically disruptive production methods. Other nations with significant but yet-to-be exploited lithium brine resources, such as Bolivia, could follow suit.
Sully is even more optimistic, predicting that as lithium demand grows from about 1.5 million metric tons per year to around 3.5 million metric tons by 2035, the majority of that growth will come from DLE. “I honestly believe that there will be no more hard rock mines built in Australia or the U.S.,” he said, telling me that in ten years time, half of our lithium supply could “easily” come from DLE.
As a number of major projects break ground this year and the big players start consolidating, we’ll begin to get a sense of whose projections are most realistic. But it won’t be until some of these projects ramp up commercial production in the 2028 to 2030 timeframe that DLE’s market potential will really crystalize.
“If you’re not a very large player at the moment, I think it’s very difficult for you to proceed,” Sully told me, reflecting on how lithium’s price shocks have rocked the industry. Even with lithium prices ticking precariously upwards now, the industry is preparing for at least some level of continued volatility and uncertainty.
“Long term, who knows what [prices are] going to be,” Sully said. “I’ve given up trying to predict.”
A chat with CleanCapital founder Jon Powers.
This week’s conversation is with Jon Powers, founder of the investment firm CleanCapital. I reached out to Powers because I wanted to get a better understanding of how renewable energy investments were shifting one year into the Trump administration. What followed was a candid, detailed look inside the thinking of how the big money in cleantech actually views Trump’s war on renewable energy permitting.
The following conversation was lightly edited for clarity.
Alright, so let’s start off with a big question: How do investors in clean energy view Trump’s permitting freeze?
So, let’s take a step back. Look at the trend over the last decade. The industry’s boomed, manufacturing jobs are happening, the labor force has grown, investments are coming.
We [Clean Capital] are backed by infrastructure life insurance money. It’s money that wasn’t in this market 10 years ago. It’s there because these are long-term infrastructure assets. They see the opportunity. What are they looking for? Certainty. If somebody takes your life insurance money, and they invest it, they want to know it’s going to be there in 20 years in case they need to pay it out. These are really great assets – they’re paying for electricity, the panels hold up, etcetera.
With investors, the more you can manage that risk, the more capital there is out there and the better cost of capital there is for the project. If I was taking high cost private equity money to fund a project, you have to pay for the equipment and the cost of the financing. The more you can bring down the cost of financing – which has happened over the last decade – the cheaper the power can be on the back-end. You can use cheaper money to build.
Once you get that type of capital, you need certainty. That certainty had developed. The election of President Trump threw that into a little bit of disarray. We’re seeing that being implemented today, and they’re doing everything they can to throw wrenches into the growth of what we’ve been doing. They passed the bill affecting the tax credits, and the work they’re doing on permitting to slow roll projects, all of that uncertainty is damaging the projects and more importantly costs everyone down the road by raising the cost of electricity, in turn making projects more expensive in the first place. It’s not a nice recipe for people buying electricity.
But in September, I went to the RE+ conference in California – I thought that was going to be a funeral march but it wasn’t. People were saying, Now we have to shift and adjust. This is a huge industry. How do we get those adjustments and move forward?
Investors looked at it the same way. Yes, how will things like permitting affect the timeline of getting to build? But the fundamentals of supply and demand haven’t changed and in fact are working more in favor of us than before, so we’re figuring out where to invest on that potential. Also, yes federal is key, but state permitting is crucial. When you’re talking about distributed generation going out of a facility next to a data center, or a Wal-Mart, or an Amazon warehouse, that demand very much still exists and projects are being built in that middle market today.
What you’re seeing is a recalibration of risk among investors to understand where we put our money today. And we’re seeing some international money pulling back, and it all comes back to that concept of certainty.
To what extent does the international money moving out of the U.S. have to do with what Trump has done to offshore wind? Is that trade policy? Help us understand why that is happening.
I think it’s not trade policy, per se. Maybe that’s happening on the technology side. But what I’m talking about is money going into infrastructure and assets – for a couple of years, we were one of the hottest places to invest.
Think about a European pension fund who is taking money from a country in Europe and wanting to invest it somewhere they’ll get their money back. That type of capital has definitely been re-evaluating where they’ll put their money, and parallel, some of the larger utility players are starting to re-evaluate or even back out of projects because they’re concerned about questions around large-scale utility solar development, specifically.
Taking a step back to something else you said about federal permitting not being as crucial as state permitting–
That’s about the size of the project. Huge utility projects may still need federal approvals for transmission.
Okay. But when it comes to the trendline on community relations and social conflict, are we seeing renewable energy permitting risk increase in the U.S.? Decrease? Stay the same?
That has less to do with the administration but more of a well-structured fossil fuel campaign. Anti-climate, very dark money. I am not an expert on where the money comes from, but folks have tried to map that out. Now you’re even seeing local communities pass stuff like no energy storage [ordinances].
What’s interesting is that in those communities, we as an industry are not really present providing facts to counter this. That’s very frustrating for folks. We’re seeing these pass and honestly asking, Who was there?
Is the federal permitting freeze impacting investment too?
Definitely.
It’s not like you put money into a project all at once, right? It happens in these chunks. Let’s say there’s 10 steps for investing in a project. A little bit of money at step one, more money at step two, and it gradually gets more until you build the project. The middle area – permitting, getting approval from utilities – is really critical to the investments. So you’re seeing a little bit of a pause in when and how we make investments, because we sometimes don’t know if we’ll make it to, say, step six.
I actually think we’ll see the most impact from this in data center costs.
Can you explain that a bit more for me?
Look at northern Virginia for a second. There wasn’t a lot of new electricity added to that market but you all of the sudden upped demand for electricity by 20 percent. We’re literally seeing today all these utilities putting in rate hikes for consumers because it is literally a supply-demand question. If you can’t build new supply, it's going to be consumers paying for it, and even if you could build a new natural gas plant – at minimum that will happen four-to-six years from now. So over the next four years, we’ll see costs go up.
We’re building projects today that we invested in two years ago. That policy landscape we invested in two years ago hasn’t changed from what we invested into. But the policy landscape then changed dramatically.
If you wipe out half of what was coming in, there’s nothing backfilling that.
Plus more on the week’s biggest renewables fights.
Shelby County, Indiana – A large data center was rejected late Wednesday southeast of Indianapolis, as the takedown of a major Google campus last year continues to reverberate in the area.
Dane County, Wisconsin – Heading northwest, the QTS data center in DeForest we’ve been tracking is broiling into a major conflict, after activists uncovered controversial emails between the village’s president and the company.
White Pine County, Nevada – The Trump administration is finally moving a little bit of renewable energy infrastructure through the permitting process. Or at least, that’s what it looks like.
Mineral County, Nevada – Meanwhile, the BLM actually did approve a solar project on federal lands while we were gone: the Libra energy facility in southwest Nevada.
Hancock County, Ohio – Ohio’s legal system appears friendly for solar development right now, as another utility-scale project’s permits were upheld by the state Supreme Court.