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Q&A

Trump Cuts Solar Industry’s Experiments to Win Hearts and Minds

A conversation with David Gahl of SI2

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This week I spoke with David Gahl, executive director of the Solar and Storage Industries Institute, or SI2, which is the Solar Energy Industries Association’s independent industry research arm. Usually I’d chat with Gahl about the many different studies and social science efforts they undertake to try and better understand siting conflicts in the U.S.. But SI2 reached out first this time, hoping to talk about how all of that work could be undermined by the Trump administration’s grant funding cuts tied to the government shutdown. (The Energy Department did not immediately get back to me with a request for comment for this story, citing the shutdown.)

The following conversation was edited lightly for clarity.

So what SI2 funding could be cut because of the federal shutdown, and what has it been put toward?

On October 1, the Energy Department put out a list of about $7.5 billion in grants they were terminating. Approximately a week later, another larger list of grants that were slated for termination found its way into the press. There’s an outstanding question about what this other list floating around means, and only DOE can verify the document’s accuracy, but we have two projects that were on that bigger list.

The first was $2.5 million supporting research into how power companies engage communities. We were coming up with a list of community engagement innovations — the idea was to actually test, through rigorous social science research at project sites, which of these innovations produces the best outcomes. We were going to have empirical data that said, If you approach communities in this way you’re more likely to get support, and if you approach communities this other way you wouldn’t.

The second was $3 million to bring diverse stakeholders together to talk about siting and permitting reform, best practices, guidance to make development smoother. The concept there was to bring traditionally warring parties to come up with a framework and tools to help the siting process. If you can get people together to come up with best practices, you can typically move things faster.

This was an “uncommon dialogue” – there was “uncommon dialogue” before on hydropower resources – and this was related to large-scale solar facilities and conservation. It’s not location-specific, more bringing the groups together to talk about a higher level set of issues, not specific projects. Keep in mind, this is relatively small potatoes.

What was the status of that work?

It started earlier in the year and it’s been rolling along. There’s been a lot of progress made so far. People have developed work plans and are working through the issues.

If the funding is canceled, there’s also opportunity for private money to potentially step in, but it puts both initiatives in a precarious place. But to the broader point, the administration has talked about how it wants energy “abundance” and more electrons on the grid to meet growing demand. And these projects funded by the department are addressing key problems to putting electrons onto the grid. Cancellation of these grants is just a complete reversal of what they’re talking about in other forums.

How so? Help me understand how this work actually trickles down to individual project decisions.

One of the challenges with siting any kind of large-scale energy project is getting community buy-in and ensuring the permitting process moves smoothly, that parties aren’t going to be litigating against each other. So if you can come up with ways to make sure the communities feel heard and are designed according to what communities want, you can probably avoid some litigation down the road.

Do you have any indication this government supports the work you’re describing?

What they’ve made clear is they want more electrons to come onto the grid to support data centers and the advancement of artificial intelligence. Canceling grants like these … I mean, we’re talking about potentially canceling projects that make it harder to meet the goal of putting more electricity onto the grid.

Yellow

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Spotlight

The Data Center Transmission Brawls Are Just Getting Started

What happens when one of energy’s oldest bottlenecks meets its newest demand driver?

Power line construction.
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Often the biggest impediment to building renewable energy projects or data center infrastructure isn’t getting government approvals, it’s overcoming local opposition. When it comes to the transmission that connects energy to the grid, however, companies and politicians of all stripes are used to being most concerned about those at the top – the politicians and regulators at every level who can’t seem to get their acts together.

What will happen when the fiery fights on each end of the wire meet the broken, unplanned spaghetti monster of grid development our country struggles with today? Nothing great.

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Hotspots

Will Maine Veto the First State-Wide Data Center Ban?

Plus more of the week’s biggest development fights.

The United States.
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1. Franklin County, Maine – The fate of the first statewide data center ban hinges on whether a governor running for a Democratic Senate nomination is willing to veto over a single town’s project.

  • On Wednesday, the Maine legislature passed a total ban on new data center projects through the end of 2027, making it the first legislative body to send such a bill to a governor’s desk. Governor Janet Mills, who is running for Democrats’ nomination to the Senate, opposed the bill prior to the vote on the grounds that it would halt a single data center project in a small town. Between $10 million and $12 million has already been sunk into renovating the site of a former paper mill in Jay, population 4,600, into a future data center. Mills implored lawmakers to put an exemption into the bill for that site specifically, stating it would otherwise cost too many jobs.
  • It’s unclear whether Mills will sign or veto the bill. Her office has not said whether she would sign the bill without the Jay exemption and did not reply to a request for comment. Neither did the campaign for Graham Platner, an Iraq War veteran and political novice running competitively against Mills for the Senate nomination. Platner has said little about data centers so far on the campaign trail.
  • It’s safe to say that the course of Democratic policy may shift if Mills – seen as the more moderate candidate of the two running for this nomination – signs the first state-wide data center ban. Should she do so and embrace that tack, it will send a signal to other Democratic politicians and likely accelerate a further shift into supporting wide-scale moratoria.

2. Jerome County, Idaho – The county home to the now-defunct Lava Ridge wind farm just restricted solar energy, too.

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Q&A

Why Data Centers Need Battery Storage

A chat with Scott Blalock of Australian energy company Wärtsilä.

Scott Blalock.
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This week’s conversation is with Scott Blalock of Australian energy company Wärtsilä. I spoke with Blalock this week amidst my reporting on transmission after getting an email asking whether I understood that data centers don’t really know how much battery storage they need. Upon hearing this, I realized I didn’t even really understand how data centers – still a novel phenomenon to me – were incorporating large-scale battery storage at all. How does that work when AI power demand can be so dynamic?

Blalock helped me realize that in some ways, it’s more of the same, and in others, it’s a whole new ballgame.

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