So for starters, walk me through how solar development out west has changed since the start of this year.
Certainly been a lot of changes. I think there’s sort of a confluence of lots of uncertainty and change in the industry. The impending tax credit deadlines and safe harbor and commence construction deadlines, all of that combined with the sort of things that have been ongoing in the West for a while — public lands, siting issues — I think those have made a relatively difficult development environment for folks.
But that said, we’re also seeing unprecedented load growth across the West, and Nevada’s a really good example of that. So the demand for solar and storage remains super high. But I think now we’re navigating even more difficulty in getting projects both sited and also over the finish line.
How has the pause on federal permitting impacted projects in this area of the country?
Nevada is 80% public land, give or take, so those changes at the federal level, particularly, the Department of Interior … it’s pretty difficult if you’re looking at utility-scale solar in the state to avoid a sort of federal lands nexus. Those policy changes are really being felt on the ground in Nevada.
We don’t do a ton of engagement at the county level but I’ve been tracking those developments across the state, in Nevada, and others around the West. Whether they’re moratoriums or consideration on moratoriums, or new siting restrictions… in most states in the West, the land use decisions rest at the local level, either the county or the municipal jurisdiction. The patchwork of changing ordinances, that [has a] pace that has intensified a little bit this year as well.
How is SEIA trying to get those projects unstuck? I think about Esmeralda 7 for example, which hasn’t seen its permitting timeline updated online in half a year. What’s the process for trying to get these projects to move forward at this juncture?
I guess I don’t have project by project specific information but in general, I think the example with Nevada Gov. Joe Lombardo’s letter is how we’ve been approaching this issue. Trying to make the case for states like Nevada with really high load growth that projects like this are critical to meeting energy demand and serving customers reliably. Trying to tie the really near-term challenge of serving load together with these issues of federal land so that people on the ground at the state level are aware of it and can use the influence they have with federal officials and other folks to make this situation known, that this has real practical effects with states and their economic development.
When it comes to transmission for these solar projects, what’s the status? Is the scope of the pause just limited to the scope of solar generation or also transmission lines connected to them?
I think the kind of more recent challenges have been more focused on the generation side. The pace of the transmission and associated queue bottlenecks, I feel like that situation has not improved by any means but I don’t get the sense there’s any near-term changes that have impacted that. I’d be curious if other folks who work more closely on the transmission side have a different perspective, but that’s kind of what I’m seeing.
Is there from your vantage point a clip or an end here? If these projects are unable to be unstuck, do you expect developers to try and wait out this limbo with public lands? Or do you expect developers to rethink how they site their projects?
I think in general for projects already under the development process, folks have already invested a lot of time, energy, and capital to get those projects to this point. Particularly those in the West really necessary to serve as growing load, I would expect folks to really be pursuing every angle they can to get those projects over the finish line.
That said, I’m sure there is some point. I just don’t have a good sense of when this becomes totally unpalatable or you’re not able to move forward.
NV Energy recently had a filing at the Federal Energy Regulatory Commission that allowed projects previously in their queue an escape route out if they were not able to maintain their queue position. I do think that’s a sign of the siting difficulties, the people re-evaluating their project portfolio. I’m not a developer but if you’re looking on private land or federal land, signs are pointing to a smoother path forward on private land but in states like Nevada where 80% plus is public land, even for a project fully sited on private land, it’s really difficult to avoid interconnection or transmission. There are pretty much always going to be federal impacts. That’s just going to be a challenge that industry’s facing at this point.
What’s your message to developers who are anxious in this moment?
That’s a good question. I share the anxiety.
I also think there’s a lot of effort being undertaken by developers to explain the situation on the ground to their elected officials and I really think that’s the kind of message that needs to get out there. These real tangible impacts of projects that were already invested in, in some cases already under construction, that are being hindered by these policy decisions that I don’t think are serving the public interests and are going to limit economic development if they don’t come online in time. Ultimately energy is needed to meet the growing demand. There’s not a great alternative to these projects not getting done.
