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Q&A

How Are Renewable Energy Developers Reacting to IRA Cuts?

A conversation with Mike Hall of Anza.

The Fight's Q&A subject.
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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.

Yellow

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Hotspots

Trump Administration to ‘Reconsider’ Approval for MarWin

And more of the week’s most important conflicts around renewable energy.

The United States.
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1. Sussex County, Delaware – The Trump administration has confirmed it will revisit permitting decisions for the MarWin offshore wind project off the coast of Maryland, potentially putting the proposal in jeopardy unless blue states and the courts intervene.

  • Justice Department officials admitted the plans in a paragraph tucked inside a filing submitted to a federal court in Delaware this week in litigation brought by a beach house owner opposed to the offshore wind project.
  • DOJ stated in the filing that more time was “necessary as Interior intends to reconsider its [construction and operations plan] approval” for MarWin, and that it plans to “move” for “voluntary remand of that agency action” in a separate case filed by Ocean City, Maryland against the project.
  • “The outcome of Interior’s reconsideration has the potential to affect the Plaintiff’s claims in this case,” the filing stated. “Continuing to litigate this case before any decision is made in the [Ocean City case] would potentially waste considerable time and resources for both the parties and the Court.” As of today, no new filings have been made in the Ocean City case.

2. Northwest Iowa – Locals fighting a wind project spanning multiple counties in northern Iowa are opposing legislation that purports to make renewable development easier in the state.

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Q&A

Should Renewable Energy Companies Sue Trump?

They don’t have much to lose, Heiko Burow, an attorney at Baker & Mackenzie, tells me.

Heiko Burow.
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This week, since this edition of The Fight was so heavy, I tried something a little different: I interviewed one of my readers, Heiko Burow, an attorney with Baker & Mackenzie based in Dallas, Texas. Burow doesn’t work in energy specifically – he’s an intellectual property lawyer – but he’s read many of my scoops over the past few weeks about attacks on renewable energy and had legitimate criticism! Namely, as a lawyer who is passionate about the rule of law, he wanted to send a message to any developers and energy wonks reading me to use the legal system more often as a tool against attacks on their field.

The following conversation has been abridged for clarity. Let’s dive in.

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Spotlight

Interior’s Renewables Attacks Snag Power Lines

Nevada's Greenlink North is hit with a short, but ominous delay.

Solar panels and pylons.
Heatmap Illustration/Getty Images

I can now confirm the Trump administration’s recent attacks on renewables permitting appear to be impacting transmission projects, too.

Over the past two weeks, the Interior Department has laid forth secretarial orders implementing a new regime for renewables permitting on federal lands. This has appeared to essentially kill the odds of utility-scale solar or wind projects on federal land getting approved any time soon. Public timetables for large solar projects across the American West have suddenly slipped back by years-long intervals, and other mega-projects – like Esmeralda 7 – appear now to be trapped in limbo.

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