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A conversation with Cici Vu and Morgan Putnam of DNV Energy Systems
Today we’re speaking with Cici Vu and Morgan Putnam from DNV Energy Systems, who helped craft a must-read report out this week on community relations in transmission with Americans for Clean Energy Grid (ACEG). Their report compiles findings of a roundtable with environmentalists, Indigenous rights activists, developers, and individual land owners, and finds transmission can fare better than solar and wind in this current political climate – and that community benefit agreements can be helpful for getting projects across the finish line. But some issues divided the roundtable, including how to structure labor benefits to ensure lots of people get job opportunities from transmission.
The following is a lightly edited and abridged version of our conversation:
Jael: Can you walk me through what you and ACEG found as a part of your research?
Morgan: ACEG identify – like you have – that there is a realness to the community opposition that can arise with these projects. While there are clearly cases of money being spent to augment that, it doesn’t mean the opposition isn’t present. ACEG’s interest was to help make meaningful progress on this issue and figure out how we can do better to accelerate the rate at which we develop transmission. As the report calls out early on, development really proceeds at the pace of trust within a community.
Cici: There are a lot of reports out there on best practices. There are 1,500-page reports on desktop research and lots of interviews and so forth. But I think ACEG hit the nail on the head by bringing in the voices at the same table. With my expertise in mediation, we were able to do that. The recruiting of all the voices helped make the report more inclusive, and more comprehensive and more holistic in viewpoints and perspectives.
The other thing that was really important was bridging the technical aspects of these large infrastructure projects that are so complex that communities don’t understand [them.] Being able to bring the large complexities of these projects – transmission, in this case – and community needs and interest, and being able to translate and interpret and be able to talk to one another, is a core piece of this report.
The tool that gets us there is these community benefits agreements, project work agreements. And they only work well and are effective if they are co-developed with the voices, the developers, the landowners, the host communities alike.
Jael: Did you feel there was a need for a consensus on best practices for community engagement?
Cici: It’s a differentiator. It’s one of the reasons we’re doing this.
We all recognize the needs of load growth demand. But to most effectively advance some of these best practices and make them actionable, these trusted voices have to discuss and agree. Or not agree – because we have a non-consensus segment as well where there were issues that did not meet consensus. When that happened, we made a recommendation to continue the discussion toward consensus.
Jael: What issues were most difficult to find consensus on and why?
Cici: The big piece of tension was how would these projects treat workforce development [and] bring in a local workforce while balancing the needs of labor,because labor has the skills. For instance, one of the issues was that local workforces need to be up-skilled in a way that is much more structured and systematic because there are safety issues in climbing a pole and doing electrification and things like that.
Jael: At a high level, are we seeing a similar broad backlash to transmission like what we’re seeing in specific communities with solar and wind?
Morgan: No, we’re not. It could happen. But those types of things you’re referencing are not yet occurring in transmission. I think it is less likely but not impossible, because–
Jael: What about Grain Belt Express or what’s happened around Piedmont? Do those situations give you any pause?
Morgan: So Grain Belt I think a little bit but it’s in a different category in my mind. Grain Belt is a specific project and, well, just look at the MISO region where that project sits. MISO’s moving forward with a lot of transmission. That project is but one project and it is being developed by an independent transmission developer that has… I think they face additional hurdles at times by virtue of their independence.
Having said that, I think the earlier statement still applies to all transmission. It’s about trust. It’s something where I think if you have the trust and support of the communities, you’re going to be able to move the projects forward.
Cici: We’ve seen a lot of momentum in favor of longer term regional planning of transmission. We haven’t seen as much attention on the triggering words we see with solar, or wind, and the incoming administration for transmission. And we also have a lot of the load demand, which is data centers.
We’re all crossing our fingers with the incoming administration. It’s so unpredictable.
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A conversation with Mike Hall of Anza.
This week’s conversation is with Mike Hall, CEO of the solar and battery storage data company Anza. I rang him because, in my book, the more insights into the ways renewables companies are responding to the war on the Inflation Reduction Act, the better.
The following chat was lightly edited for clarity. Let’s jump in!
How much do we know about developers’ reactions to the anti-IRA bill that was passed out of the House last week?
So it’s only been a few days. What I can tell you is there’s a lot of surprise about what came out of the House. Industries mobilized in trying to improve the bill from here and I think a lot of the industry is hopeful because, for many reasons, the bill doesn’t seem to make sense for the country. Not just the renewable energy industry. There’s hope that the voices in Congress — House members and senators — who already understand the impact of this on the economy will in the coming weeks understand how bad this is.
I spoke to a tax attorney last week that her clients had been preparing for a worst case scenario like this and preparing contingency plans of some kind. Have you seen anything so far to indicate people have been preparing for a worst case scenario?
Yeah. There’s a subset of the market that has prepared and already executed plans.
In Q4 [of 2024] and Q1 [of this year] with a number of companies to procure material from projects in order to safe harbor those projects. What that means is, typically if you commence construction by a certain date, the date on which you commence construction is the date you lock in tax credit eligibility, and we worked with companies to help them meet that criteria. It hedged them on a number of fronts. I don’t think most of them thought we’d get what came out of the House but there were a lot of concerns about stepdowns for the credit.
After Trump was elected, there were also companies who wanted to hedge against tariffs so they bought equipment ahead of that, too. We were helping companies do deals the night before Liberation Day. There was a lot of activity.
We saw less after April 2nd because the trade landscape has been changing so quickly that it’s been hard for people to act but now we’re seeing people act again to try and hit that commencement milestone.
It’s not lost on me that there’s an irony here – the attempts to erode these credits might lead to a rush of projects moving faster, actually. Is that your sense?
There’s a slug of projects that would get accelerated and in fact just having this bill come out of the House is already going to accelerate a number of projects. But there’s limits to what you can do there. The bill also has a placed-in-service criteria and really problematic language with regard to the “foreign entity of concern” provisions.
Are you seeing any increase in opposition against solar projects? And is that the biggest hurdle you see to meeting that “placed-in-service” requirement?
What I have here is qualitative, not quantitative, but I was in the development business for 20 years, and what I have seen qualitatively is that it is increasingly harder to develop projects. Local opposition is one of the headwinds. Interconnection is another really big one and that’s the biggest concern I have with regards to the “placed-in-service” requirement. Most of these large projects, even if you overcome the NIMBY issues, and you get your permitting, and you do everything else you need to do, you get your permits and construction… In the end if you’re talking about projects at scale, there is a requirement that utilities do work. And there’s no requirement that utilities do that work on time [to meet that deadline]. This is a risk they need to manage.
And more of the week’s top news in renewable energy conflicts.
1. Columbia County, New York – A Hecate Energy solar project in upstate New York blessed by Governor Kathy Hochul is now getting local blowback.
2. Sussex County, Delaware – The battle between a Bethany Beach landowner and a major offshore wind project came to a head earlier this week after Delaware regulators decided to comply with a massive government records request.
3. Fayette County, Pennsylvania – A Bollinger Solar project in rural Pennsylvania that was approved last year now faces fresh local opposition.
4. Cleveland County, North Carolina – Brookcliff Solar has settled with a county that was legally challenging the developer over the validity of its permits, reaching what by all appearances is an amicable resolution.
5. Adams County, Illinois – The solar project in Quincy, Illinois, we told you about last week has been rejected by the city’s planning commission.
6. Pierce County, Wisconsin – AES’ Isabelle Creek solar project is facing new issues as the developer seeks to actually talk more to residents on the ground.
7. Austin County, Texas – We have a couple of fresh battery storage wars to report this week, including a danger alert in this rural Texas county west of Houston.
8. Esmeralda County, Nevada – The Trump administration this week approved the final proposed plan for NV Energy’s Greenlink North, a massive transmission line that will help the state expand its renewable energy capacity.
9. Merced County, California – The Moss Landing battery fire is having aftershocks in Merced County as residents seek to undo progress made on Longroad’s Zeta battery project south of Los Banos.
Anti-solar activists in agricultural areas get a powerful new ally.
The Trump administration is joining the war against solar projects on farmland, offering anti-solar activists on the ground a powerful ally against developers across the country.
In a report released last week, President Trump’s Agriculture Department took aim at solar and stated competition with “solar development on productive farmland” was creating a “considerable barrier” for farmers trying to acquire land. The USDA also stated it would disincentivize “the use of federal funding” for solar “through prioritization points and regulatory action,” which a spokesperson – Emily Cannon – later clarified in an email to me this week will include reconfiguring the agency’s Rural Energy for America loan and grant program. Cannon declined to give a time-table for the new regulation, stating that the agency “will have more information when the updates are ready to be published.”
“Farmland should be for agricultural production, not solar production,” Cannon wrote – a statement also made in the USDA report.
REAP is a program created in 2008 that exists to help fund renewable energy and sustainability projects at the level of individual farms and has been seen as a potential tool for not only building more solar but also more trust in agriculturally-focused communities. It’s without question that retooling REAP to actively disincentivize awardees from building solar on farmland could have a chilling effect, at least amongst those who receive money from the program or wish to in the future. This comes after Trump officials temporarily froze money promised to farmers, too.
As we’ve previously written in The Fight, agricultural interests can at times present as much a threat to the future of solar energy as any oil-funded dark money group, if not more so. Conflicts over solar production on farmland make up a large portion of the total projects I cover in The Fight every week, and it is one of the most frequently cited reasons for opposition against individual renewables projects. (Agricultural workforces are one of the most important signals for renewable energy opposition in Heatmap Pro’s modeling data as well.) I wrote shortly after Trump’s inauguration that I wondered when – not if – he would adopt this position.
It’s unclear what exactly led USDA to dive headlong into the “No Solar on Farmland” campaign, aside from its growing popularity in conservative political circles, but there is reason to believe farming interests may have played a role. USDA has stated the report was the product of discussions with farming groups and an industry roundtable. In addition, per lobbying disclosures, at least one agricultural group – the Pennsylvania Farm Bureau – advocated earlier this year for “congressional action and/or executive orders” to “balance renewable and conventional sources of energy” through “limit[ing] solar on productive farmland.” (The Pennsylvania Farm Bureau denied this in an email to me earlier this week.)
There’s also reason to believe some key stakeholders were caught off-guard or weren’t looped in on the matter.
American Farmland Trust has been trying to cultivate common ground between farmers, solar companies, and various agencies at all levels of government over the future of development. But when asked about this report, the nonprofit told me it couldn’t speak on the matter because it was still trying to suss out what was going on.
“AFT is meeting with the Trump administration to learn more about what they are planning in terms of policy and programs to implement this concept,” AFT media relations associate Michael Shulman told me.