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Q&A

Has Solar Done This Before?

A conversation with Robb Jetty, CEO of REC Solar, about how the developer is navigating an uncertain environment.

Robb Jetty.
Heatmap Illustration

This week I chatted with REC Solar CEO Robb Jetty, who reached out to me through his team after I asked for public thoughts from renewables developers about their uncertain futures given all the action in Congress around the Inflation Reduction Act. Jetty had a more optimistic tone than I’ve heard from other folks, partially because of the structure of his business – which is actually why I wanted to include his feelings in this week’s otherwise quite gloomy newsletter.

The following conversation has been lightly edited for clarity. Shall we?

To start, how does it feel to be developing solar in this uncertain environment around the IRA?

There’s a lot of media out there that’s oftentimes trying to interpret something that’s incredibly complex and legalese to begin with, so it’s difficult to really know what the exact impacts are in the first place or what the macroeconomic impacts would be from the policy shifts that would happen from the legislation being discussed right now.

But I’ll be honest, the thing I reinforce the most right now with our team is that you cannot argue with solar being the lowest cost form of electrical generation in the United States and it’s the fastest source of power generation to be brought online. So there’s a reason why, regardless of what happens, our industry isn’t going to go away. We’ve dealt with all kinds of policy changes and I’ve been doing this since 2002. We’ve had lots of changes that have been disruptive to the industry.

You can argue some of the things that are being discussed are more disruptive. But there’s lots of things we’ve faced. Even the pandemic and the fallout on inflation and labor. We’ve navigated through hard times before.

What’s been the tangible impact to your business from this uncertainty?

I would say it has shifted our focus. We sell electricity to our customers that are both commercial customers, using that power behind the meter and on site for their own facilities, or we’re selling electricity to utilities, or virtually through the grid. Right now we’ve shifted some of our strategy toward the acquisition of operating assets instead of buying projects from other developers that could be more impacted by the uncertainty or have economics that are more sensitive to the timing and uncertainty that could come out of the policy. It’s had an impact on our business but, back to my earlier comment, the industry is so big at this point that we’re seeing lots of opportunity for us to provide value to an investor.

As a company that works in different forms of solar development – from small-scale utility to commercial to community solar – do you see any changes in terms of what projects are developed if what’s in the House bill becomes law?

I’m not seeing anything at the moment.

I think most of the activity I’ve been involved in is waiting for this to settle. The disruption is the volatile nature, the uncertainty. We need certainty. Any business needs certainty to plan and operate effectively. But I’m honestly not seeing anything that’s having that impact right now in terms of where investment is flowing, whether its utility scale to the smaller behind-the-meter commercial scale we support in certain markets.

We are seeing it in the residential side of the solar industry. Those are more concerning, because you only have a short amount of time to claim the [investment tax credit] ITC for a residential system.

Yellow

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Spotlight

The Loud Fight Over Inaudible Data Center Noise

Why local governments are getting an earful about “infrasound”

Data center noise.
Heatmap Illustration/Getty Images

As the data center boom pressures counties, cities, and towns into fights over noise, the trickiest tone local officials are starting to hear complaints about is one they can’t even hear – a low-frequency rumble known as infrasound.

Infrasound is a phenomenon best described as sounds so low, they’re inaudible. These are the sorts of vibrations and pressure at the heart of earthquakes and volcanic activity. Infrasound can be anything from the waves shot out from a sonic boom or an explosion to very minute changes in air pressure around HVAC systems or refrigerators.

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Hotspots

An Anti-Battery Avalanche Outside Seattle

And more on the week’s top fights around project development.

The United States.
Heatmap Illustration/Getty Images

1. King County, Washington – The Moss Landing battery backlash is alive and well more than a year after the fiery disaster, fomenting an opposition stampede that threatens to delay a massive energy storage project two dozen miles east of Seattle.

  • Moss Landing looms large in Snoqualmie, a city in the Cascade Mountains where Jupiter Power is trying to build Cascade Ridge Resiliency Energy Storage, a 130-megawatt facility conveniently located on unincorporated county land right by a substation and transmission infrastructure.
  • To say residents nearby are upset would be an understatement. A giant number of protestors – reportedly 650 people, which is large for this community of about 14,000 – showed up to rally against the project this weekend, just as Jupiter Power submitted its application for the project to county regulators.
  • The opposition is led by Snoqualmie Valley for Responsible Energy, a grassroots organization that primarily has focused on the risk of thermal runaway from battery storage events and rhetoric about the Moss Landing fire. “The battery chemistry proposed for Cascadia Ridge has not been verified in any public filing. Recent incidents illustrate what is at stake,” state SVRE strategy materials posted to their website.
  • Jupiter Power has tried to combat this campaign with its own organizing coalition – dubbed “Keep the Lights On!” – that includes local union labor and some environmentalists, including volunteers for Sierra Club. This campaign has emphasized how modern engineering around battery storage is nothing like the set-up was at Moss Landing.
  • However, the concerned voices are winning out over those who want the storage project. On Wednesday night, this outcry led the Snoqualmie city council at a special meeting to vote to request via letter for the storage project to be relocated and communicate that dissent to both the local utility, Puget Sound Energy, and King County.
  • “We encourage consideration of alternate locations within the Puget Sound Energy transmission and distribution system to better address the concerns that have been raised,” read a draft version of the letter presented by councilors at the meeting.
  • Jupiter Power told me it “welcome[s] any feedback from the community” and King County said in a statement, “We understand the concerns.” PSE told me they had not “received official notification about the formal action by the City Council and we can't comment on something we have not received.”
  • This degree of on-the-ground frustration will be challenging for any higher-level decision maker in Washington State to ignore. I’d argue the entire storage sector should be watching closely.

2. Prince Williams County, Virginia – It was a big week for data center troubles. Let’s start with Data Center Alley, which started to show cracks this week as data center developer Compass announced it was pulling out of the controversial Digital Gateway mega-project.

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Q&A

Is the Left Making a ‘Massive Strategic Blunder’ on Data Centers?

A conversation with Holly Jean Buck, author of a buzzy story about Bernie Sanders’ proposal for a national data center moratorium.

Holly Jean Buck.
Heatmap Illustration

This week’s conversation is with Holly Jean Buck, an associate professor at the University of Buffalo and former official in the Energy Department’s Office of Fossil Energy and Carbon Management. Buck got into the thicket of the data center siting debate this past week after authoring a polemic epistemology of sorts in Jacobin arguing against a national data center ban. In the piece, she called a moratorium on AI data centers “a massive strategic blunder for the left, and we should think through the global justice implications and follow-on effects.” It argued that environmental and climate activists would be better suited not courting a left-right coalition that doesn’t seem to have shared goals in the long term.

Her article was praised by more Abundance-leaning thinkers like Matthew Yglesias and pilloried by some of the more influential people in the anti-data center organizing space, such as Ben Inskeep of Citizens Action Coalition of Indiana. So I wanted to chat with her about the discourse around her piece. She humbly obliged.

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