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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.
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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“It is important that non-viable projects be terminated or withdrawn so that the queue and any required restudies be updated as quickly as possible,” stated the filing, which was first reported by Utility Dive earlier this week.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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Spotlight

Data Centers Are the New NIMBY Battleground

Packed hearings. Facebook organizing. Complaints about prime farmland and a disappearing way of life. Sound familiar?

A data center and houses.
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Solar and wind companies cite the rise of artificial intelligence to make their business cases after the United States government slashed massive tax incentives for their projects.

But the data centers supposed to power the AI boom are now facing the sort of swift wave of rejections from local governments across the country eerily similar to what renewables developers have been dealing with on the ground over the last decade. The only difference is, this land use techlash feels even more sudden, intense, and culturally diffuse.

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Hotspots

Arkansas Attorney General Reassures Wind Energy Opponents

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

The United States.
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1. Pulaski County, Arkansas – The attorney general of Arkansas is reassuring residents that yes, they can still ban wind farms if they want to.

  • As I chronicled earlier this month, the backlash to wind energy in this state is fierce, motivated by a convergence of environmental frustrations and conservative cultural splashback. It bears repeating: there really isn’t much renewable energy in operation here right now.
  • The state passed legislation putting restrictions on wind development that was intended to assuage local concerns. But it seems frustrations have boiled to a point where the state attorney general has had to clarify this new law will not get in the way of towns or counties going further, and that the law was merely to create a minimum set of guardrails on wind development.
  • “In my opinion, [the law] broadly delegates authority to municipalities and counties, enabling them to enact local laws that address their specific needs, including the possibility of moratoriums on wind development,” Arkansas attorney general Tim Griffin wrote in a letter released this week. “No state or federal law prohibits or preempts a local unit of government from passing moratoriums on the construction and installation of wind turbines.”

2. Des Moines County, Iowa – This county facing intense pressure to lock out renewables is trying to find a sweet spot that doesn’t involve capitulation. Whether that’s possible remains to be seen.

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Q&A

Solar Out West Is ‘Relatively Difficult’ Under Trump

A conversation with Wil Gehl at the Solar Energy Industries Association

Wil Gehl.
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This week I chatted with Wil Gehl, the InterMountain West senior manager at the Solar Energy Industries Association. I reached out in the hopes we could chat candidly about the impacts of the current national policy regime on solar development in the American West, where a pause on federal permits risks jeopardizing immense development in Nevada. To my delight, Wil was (pun intended) willing to get into the hot seat with me and get into the mix.

The following conversation was lightly edited for clarity.

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