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Spotlight

Trump’s Permit Freeze Prompts Some Solar to Eye Exits

Is there going to be a flight out of Nevada?

Solar in Nevada.
Heatmap Illustration/Getty Images

Donald Trump’s renewables permitting freeze is prompting solar companies to find an escape hatch from Nevada.

As I previously reported, the Interior Department has all but halted new approvals for solar and wind projects on federal lands. It was entirely unclear how that would affect transmission out west, including in the solar-friendly Nevada desert where major lines were in progress to help power both communities and a growing number of data centers. Shortly after the pause, I took notice of the fact that regulators quietly delayed the timetable by at least two weeks for a key line – the northern portion of NV Energy’s Greenlink project – that had been expected to connect to a litany of solar facilities. Interior told me it still planned to complete the project in September, but it also confirmed that projects specifically necessary for connecting solar onto the grid would face “enhanced” reviews.

Well, we have the latest update in this saga. It turns out NV Energy has actually been beseeching the Federal Energy Regulatory Commission to let solar projects previously planned for Greenlink bail from the interconnection queue without penalty. And the solar industry is now backing them up.

In a July 28 filing submitted after Interior began politically reviewing all renewables projects, NV Energy requested FERC provide a short-term penalty waiver to companies who may elect to leave the interconnection queue because their projects are no longer viable. Typically, companies are subject to financial penalties for withdrawals from the queue, a policy intended to keep developers from hogging a place in line with a risky project they might never build. Now, at least in the eyes of this key power company, it seems Trump’s pause has made that the case for far too many projects.

“It is important that non-viable projects be terminated or withdrawn so that the queue and any required restudies be updated as quickly as possible,” stated the filing, which was first reported by Utility Dive earlier this week. NV Energy also believes there is concern customers may seek to have their deals for power expected from these projects terminated under “force majeure" clauses, and so “the purpose of this waiver request is thus to both clear the queue to the extent possible and avoid unneeded disputes.”

On Monday, the Solar Energy Industries Association endorsed the request in a filing to the commission made in partnership with regional renewable trade group Interwest Energy Alliance. The support statement referenced both the recent de facto repeal of IRA credits as well as the permitting freeze, stating it now “appears that federal agency review staff are unsure how to proceed on solar projects.” This even includes projects on private lands, a concern first raised by Nevada Gov. Joe Lombardo, a Republican, after the permitting freeze came into effect.

The groups all but stated they anticipate companies will pull the plug on solar projects in Nevada, proclaiming that by granting the waiver, “it will encourage projects facing uncertainty due to recent legislation and federal action to exit the process sooner and without penalty, creating more certainty for the remaining projects.”

How this reads to me: Energy developers are understandably trying to figure out how to skate away from this increasingly risky situation as cleanly as they can. It’s anybody’s guess if FERC is willing to show lenience toward these developers.

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Hotspots

A Permitting U-Turn in Indiana

map of renewable energy and data center conflicts
Heatmap Illustration

1. Marion County, Indiana — State legislators made a U-turn this week in Indiana.

  • The Indiana House passed a bill on Tuesday that would have allowed solar projects, data centers, and oil refineries on “poor soil.” Critics lambasted the bill for language they said was too vague and would wrest control from local governments, and on Thursday, local media reported that the legislation as written had effectively died.
  • Had it passed, the new rules would have brought Indiana’s solar permitting process closer to that of neighboring Illinois and Michigan, both of which limit the ability of counties and townships to restrict renewable energy projects. According to Heatmap Pro data, local governments in Indiana currently have more than 60 ordinances and moratoriums restricting renewable development on the books, making it one of the most difficult places to build renewable energy in the country.

2. Baldwin County, Alabama — Alabamians are fighting a solar project they say was dropped into their laps without adequate warning.

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What Data Centers Mean for Local Jobs

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This week’s conversation is with Emily Pritzkow, executive director for the Wisconsin Building Trades, which represents over 40,000 workers at 15 unions, including the International Brotherhood of Electrical Workers, the International Union of Operating Engineers, and the Wisconsin Pipe Trades Association. I wanted to speak with her about the kinds of jobs needed to build and maintain data centers and whether they have a big impact on how communities view a project. Our conversation was edited for length and clarity.

So first of all, how do data centers actually drive employment for your members?

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Are Republicans Turning on Data Centers?

The number of data centers opposed in Republican-voting areas has risen 330% over the past six months.

Trump signs and a data center.
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It’s probably an exaggeration to say that there are more alligators than people in Colleton County, South Carolina, but it’s close. A rural swath of the Lowcountry that went for Trump by almost 20%, the “alligator alley” is nearly 10% coastal marshes and wetlands, and is home to one of the largest undeveloped watersheds in the nation. Only 38,600 people — about the population of New York’s Kew Gardens neighborhood — call the county home.

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