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Policy Watch

Tariffs Hit Solar Cells

And more of the week’s biggest news in clean energy policy.

Solar Panels
Unsplash/Heatmap

1. Seasons change, tariffs stay the same – The Biden administration is putting a duty on solar cells from four South Asian countries believed to be pass-throughs for Chinese imports: Cambodia, Malaysia, Thailand, and Vietnam.

  • The tariffs range wildly from less than 1% to almost 300%. Impacted companies include Jintek, Hanwha Q Cells (a.k.a. Qcells), JinkoSolar, and Trina Solar.
  • What this’ll mean: developers wrestling with pricier imported cells from some of the most popular sources.
  • These tariffs resulted from an anti-dumping case filed by an alliance of U.S. solar manufacturers including First Solar, Convalt Energy, REC Silicon, and, ironically, also Qcells.

2. New money for new nuclear – The Energy Department yesterday finalized over $2.8 billion in loans and grants to restart the Palisades nuclear plant in Michigan.

  • The plant – to be operated by Holtec – shut down in 2022 which means, as reports indicate, it shouldn’t take long to recommission and could be re-operational by next year.
  • Nuclear Energy Institute CEO Maria Korsnick told me earlier this year over pasta that she was vying for more direct investments to individual projects, partially to make it harder to repeal Inflation Reduction Act programs.

3. California is so silly sometimes – A judge has temporarily halted a California rule that would’ve stopped some solar developers in the state from building battery storage.

  • California’s contractor licensing board had set forth regulation effective Oct. 1 stopping solar equipment workers from installing or maintaining batteries beyond 80 kWH (which… is obviously not a lot of power).
  • The regulation will now be suspended until a legal challenge from solar and battery storage companies can be resolved.

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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.
Heatmap Illustration/Getty Images

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.
Heatmap Illustration/Getty Images

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.
Heatmap Illustration

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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