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Hotspots

A Battery Ban, Burning Man, and Lots More Yelling

The week’s biggest fights around renewable energy

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1. San Diego County, California – The battery backlash just got stronger after the city of Escondido, California, indefinitely banned permits to the entire sector in reaction to a battery fire last month.

  • Last week, the city council enacted a 45-day moratorium on permits to construction and operation of battery energy storage systems, or BESS. The moratorium will impact AES Corporation’s Seguro storage project, as well as at least one more pending project, according to staff testimony at the city council meeting on the matter.
  • But for AES and anyone else who hopes this ends quickly, some bad news: Staff also testified it’ll take much longer than 45 days to prepare a report outlining next steps due to the outstanding government workload – and that’ll just be the idea generation phase of the city’s response. A 10-month moratorium was discussed as a potential next step.
  • “I don’t think any of us up here are adamantly opposed to battery energy storage systems,” the city’s Republican mayor Dane White said at the meeting. “However, it has to be done the right way.”

2. Waldo County, Maine – The potential first floating offshore wind assembly site in America is now one step further in the permitting process, after Maine’s Department of Transportation released a pre-application alternatives analysis required for federal environmental reviews.

  • The Maine DOT report defends the selection of Sears Island for the project. We previously scooped that this decision has serious legal risks.
  • Nevertheless, the state believes that it’s a better site than Mack Point, an existing energy logistics port nearby. According to the report, the Mack Point alternative would cost more and “limit any future plans for growth.”
  • “[It] presents problematic design features that greatly reduce its operational functionality and effectively preclude its use,” the report stated.
  • This effectively begins the state and federal environmental permitting process for the Sears Island port project. On its end, the state is also preparing a broader draft environmental review.

3. Dickinson County, Kansas – This one county may be a bellwether for future problems in Kansas, a state with many existing wind farms — and even more potential — but also a lot of opposition.

  • Activists stormed a community meeting late last week on deciding whether to move forward with Enel Green Power’s 334-megawatts Hope Ridge wind farm. If county planners reject the project, it’ll potentially come with a two-year moratorium on wind. Enel has several operating wind farms in Kansas, including Diamond Vista, which is in the adjacent Marion County. (Marion’s got its own moratorium now, too).
  • Despite existing generation, Dickinson County is one of the riskier places in the United States for new renewable energy development, according to Heatmap Pro’s analytics, thanks to its demographic, economic, and geographic similarities to other opposed counties.
  • At the top of the meeting, Enel project developer Jon Beck laid out a laundry list of reasons to build the project including jobs and tax revenue. “This area has been really favorable for a lot of reasons, and that’s why we continue here,” Beck said.
  • But while some in attendance supported the development, lots of testimony opposing the project stretched the hearing beyond the five-hour mark. (Pray for me, I listened back to the tape).
  • There’s a follow-up meeting this week. And Enel clearly takes this development seriously, because they sent me a lengthy statement about the opposition to Hope Ridge.
  • “Throughout this process, we’ve worked to show the Dickinson County community that wind power has been a huge success story for Kansas, bringing billions of dollars in economic impact largely targeted to rural areas,” the statement read. “Our landowners and community partners at Diamond Vista, just down the road, have seen how our project has provided new jobs, better roads, and more local funding over the last six years.”
  • It continued: “We understand many people in Dickinson County have concerns, but we also have a lot of supporters in the county — including our landowners — who are counting on us to make the case for this project. We hope to earn the support of the Planning Commission this week."

4. Washoe County, Nevada – The company behind the Burning Man festival will be acquiring nearby geothermal energy leases, in a settlement resolving litigation that had the high-profile naturalist escape challenging access to a renewable energy resource.

  • Burning Man will purchase the leases from power company Ormat, which will then in turn help the festival organizations turn that land into a conservation area, according to an announcement of the settlement.
  • This may effectively kill Ormat’s geothermal exploration project in the area after local officials also revoked a crucial drilling permit.

Here’s what else we’re watching right now…

In North Carolina, the Kerr Lake Solar project proposed by Cypress Creek Renewables is facing its own apparent local onslaught at community meetings.

In California, Capstone and Eurowind Energy are seeking permission to build a long-duration battery storage facility in Alameda County.

In New Jersey, a coalition of shore towns and opposition groups fighting the EDF-Shell Atlantic Shores offshore wind farm have issued a new missive criticizing state financial benefits to the project.

In New York, the town of Oyster Bay looks like it’ll be extending its moratorium on BESS for at least another six months.

In Pennsylvania, a Pivot Energy solar farm also has some local organizing in the way.

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Spotlight

The Real vs. Imagined Problems with Data Centers’ Water Use

How much water is too much?

Water, a data center, and a protester.
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The data center water issues are real – but they aren’t what you think.

Too often, I hear people say the number one reason they’re against data center development is water use. Heatmap’s data shows water consumption is historically the reason cited most often by activists when opposing projects. This complaint, they often say, is rooted in the fear that this nascent buildout of AI infrastructure will simply draw so much H2O it will leave little liquid left for the rest of us.

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Hotspots

Texas Is the Eye of the Bipartisan Data Center Hurricane

And more of this week’s biggest news around project fights.

The United States.
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1. Matagorda County, Texas – The bipartisan data center backlash is now so powerful that a top Republican Texas state official is doing an event with the Democrat vying to replace him.

  • On Thursday afternoon, outgoing Republican agriculture commissioner Sid Miller and Democratic candidate Clayton Tucker are marqueeing a forum hosted by Matagorda County Against Data Centers, an opposition group that appears to also monitor solar and battery storage for potential opposition, too. Miller is leaving his post at the end of the year after being defeated in a GOP primary by Nate Sheets, who was supported by Gov. Greg Abbott.
  • This bipartisan forum will take place after Abbott himself called for new laws and regulations on data centers in a letter to Texas Public Utility Commission Chair Thomas Gleeson and ERCOT CEO Pablo Vegas. Abbott said he’d push to require data centers to pay costs for electric infrastructure and use “water-efficient technologies such as closed-loop cooling systems.” Also on the to-do list? Mandatory property setbacks and noise reduction.
  • It’s becoming clear the frustrations against AI infrastructure and associated energy projects are starting to boil without a vent. The first county to issue a data center moratorium in Texas has withdrawn the effort after facing a $100 million lawsuit from a developer, and other counties are delaying future moratoria on fears of legal risks. Where will all of this frustration go without the option to pause development locally?
  • We’re starting to see Texas legislators seek to channel this anger. Last week, Rep. Veronica Escobar – a Democrat who represents the dry, data center-anxious city of El Paso – offered an amendment in a House committee to block funding for the EPA’s new data center construction rules. The amendment failed but I’d hardly be surprised to see this sort of rider gain traction if Democrats retake the lower chamber, especially if data centers are a major election issue.

2. Albany County, New York – As we await Gov. Kathy Hochul’s decision on whether to enact the nation’s first statewide moratorium on data centers, I wanted to bring up some pretty crucial facts about the situation in the Empire State.

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Q&A

One Investor’s Climate ‘Realism’ In the Data Center Era

A conversation with Craig Lawrence of Energy Transition Ventures

The Q&A subject.
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This week’s conversation is one of my favorites so far – Craig Lawrence of Energy Transition Ventures. Lawrence has been around the block and back again when it comes to the cleantech investment landscape. So I took note when he got into a brief back-and-forth with an activist fighting data centers in Indiana who claimed there were “so many clean energy people who no longer care about climate change” because they “now support fossil fuel data centers if some nominal amount is met with clean energy.”

Lawrence replied, “Some of us are simply realists.”

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