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Economy

What to Expect From Solar and Battery Storage This Year

On 2024 power projects, pension funds, and the king’s car

What to Expect From Solar and Battery Storage This Year
Heatmap Illustration/Getty Images

Current conditions: Rush hour commutes in the Midwest could be snarled by snow today • The whole of England and Wales is under a weather warning for heavy rain and floods • February temperatures in parts of the Atlantic Ocean are nearing highs normally seen in July.

THE TOP FIVE

1. Solar and battery storage expected to set records in 2024 for new electricity generating capacity

The vast majority – 81% – of new utility-scale electricity generating capacity expected to come online this year will be in the form of solar and battery storage, according to the U.S. Energy Information Administration (EIA). The agency’s latest Preliminary Monthly Electric Generator Inventory shows projects with 62.8 gigawatts (GW) of new capacity are in the pipeline, a 55% increase over the 40.4 GW added last year. More than half of that will be solar, and about a quarter will be battery storage. “We expect U.S. battery storage capacity to nearly double in 2024,” the report said. Electrek also noted that “2024 will see the least new natural gas capacity added in 25 years.”

EIA

2. House passes bill to reverse Biden’s LNG pause

The Republican-controlled House voted yesterday to pass a bill reversing President Biden’s pause on approvals of liquified natural gas (LNG) exports. The vote was 224-200, with nine democrats voting in favor. While the bill is unlikely to get the green light in the Senate, its passage “could embolden House Republicans to include language easing the pause in future government funding legislation,” Bloomberg said. This particular bill would end the Department of Energy’s (DoE) power to approve exports, handing it instead to the independent Federal Energy Regulatory Commission. Biden paused approval of new export terminals recently until the DoE can study their environmental impact, earning praise from activists who claim LNG may be worse for the climate than coal, but scorn from many Republicans who say the move compromises energy security.

3. Major climate investor group loses key asset managers

The world’s largest group aimed at leveraging investor power to pressure corporations to prioritize climate change lost some of its biggest members this week. JPMorgan Asset Management and State Street Global Advisors (SSGA) said yesterday they are leaving the Climate Action 100+ (CA100) group, and BlackRock Inc. said it will no longer be affiliated. CA100 partners with more than 700 investors – which collectively manage about $70 trillion in assets – to pressure oil giants, shipping firms, airlines, and other big companies “that are critical to the net-zero emissions transition.” It initially focused on encouraging companies to make climate disclosures but recently decided to go further and start pushing them to actively reduce their greenhouse gas emissions. It seems this was a step too far. The departures remove nearly $14 trillion in assets from the climate group, and follow intense political pressure from Republicans targeting ESG investing. “I wouldn’t be surprised if we see more defections,” Lance Dial, a Boston-based partner at law firm K&L Gates LLP, told Bloomberg.

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  • 4. New York state pension fund divests from fossil fuel firms

    In more news from the financial world, America’s third-largest state pension fund is scaling back its investment in some oil and gas companies. The New York State Common Retirement Fund, which holds about $260 billion in assets, will divest about $27 million from seven firms including Exxon Mobil Corp. following a review of the companies’ preparedness to shift to a low-carbon economy. The move is “a compromise measure” between the fund and environmentalists who want to see full divestment, Reuters said. “The decision could deal another blow to Exxon’s reputation,” reported Inside Climate News, but the fund will still maintain $500 million worth of Exxon shares.

    5. U.N. might create expert group to study solar geoengineering

    Switzerland wants the United Nations to create a group of experts dedicated to studying solar geoengineering, according to Climate Home News. The panel would “examine risks and opportunities” of solar radiation management (SRM) techniques, which are “hypothetical technologies that could, in theory, counteract temperature rise by reflecting more sunlight away from the Earth’s surface,” as Carbon Brief explained. Reactions from scientists are mixed, with some suggesting more research is warranted, but others concerned about “the risks of opening a Pandora’s box.” Governments will vote on the proposal next week.

    THE KICKER

    The Royal Family’s first-ever electric vehicle, King Charles III’s 2018 Jaguar I-Pace, is up for auction and could go for up to $88,000. The king once called the car “silent but deadly.”

    Yellow

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    Spotlight

    Trump Taps Nashville Legend to Fight Solar and Wind Farms

    And data centers might be collateral damage.

    Farmland.
    Simon Abranowicz | Getty Images | Unsplash

    After derailing gigawatts of renewable power with a permitting freeze, the Trump administration is expanding its war on renewable energy, retaining one of country music’s biggest stars in a PR offensive against utility-scale projects on “prime farmland.”

    The administration recently onboarded John Rich – one half of the stadium-packing American musical duo Big & Rich – to be Trump’s “special envoy for American landowners.” Rich entered activism around landowner rights last January when he backed opponents fighting a large Tennessee Valley Authority transmission project routed through his home county of Cheatham, Tennessee. This led to him joining the Trump team, where he’s fashioning himself as a go-to guy and cheerleader for anyone who wants Trump to help stop a solar or wind farm they don’t want built.

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    Hotspots

    Data Centers Are the Election Year Villain

    And more of the week’s top news around project fights.

    Data Centers Are the Election Year Villain
    Heatmap Illustration

    1. Kansas City, Missouri – Data centers are so toxic that politicians are using them as boogeymen in totally unrelated policy discussions.

    • All week I’ve been thinking about Missouri, where a widely-screened TV campaign ad is airing screeds against AI hyperscale projects to sell a constitutional amendment initiative up for a vote in this year’s November elections. “That hum is the sound of Big Tech making money on online gambling, for porn,” says a nameless man in the ad. “Amendment 5 makes Big Tech pay so you don’t have to. Yes on Amendment 5.”
    • What does Amendment 5 do? Based on the ad, you would think it was focused on tax exemptions for data centers. But no – a yes vote supports cutting the state income tax, a proposal backed by Republican Gov. Mike Kehoe.
    • The ad is misinformation and a mind-blowing use of a confusing conversation around tech infrastructure most were unfamiliar with before this year. Per reporting by the Missouri Independent, the state’s existing tax exemptions for data centers would stay in place if the amendment was adopted.
    • My gut tells me this is only the beginning of the data center industry’s transformation into an election year villain.

    2. Ingham County, Michigan – We have our first major anti-data center candidate in a Democratic congressional primary.

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    Q&A

    Why Data Center NDAs Are a Big Mistake

    A conversation with Grant Gutierrez of Carbon Direct

    Why Data Center NDAs Are a Big Mistake
    Heatmap Illustration

    This week’s conversation is with Grant Gutierrez, head of community impacts at carbon management company Carbon Direct. This week Carbon Direct published a white paper Gutierrez authored on opposition around data centers he’s studied. His research reinforces much of what Heatmap Pro has uncovered, but I was particularly intrigued by a topline finding – that transparency is the most common thread in the 46 data center fights he looked into. Was he seeing what I’ve been seeing? So I asked him to hop onto a Zoom call and let me know his thoughts.

    The following conversation was lightly edited for clarity.

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