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Spotlight

How a Giant Solar Farm Flopped in Rural Texas

Amarillo-area residents successfully beat back a $600 million project from Xcel Energy that would have provided useful tax revenue.

Texas and solar panels.
Heatmap Illustration/Getty Images

Power giant Xcel Energy just suffered a major public relations flap in the Texas Panhandle, scrubbing plans for a solar project amidst harsh backlash from local residents.

On Friday, Xcel Energy withdrew plans to build a $600 million solar project right outside of Rolling Hills, a small, relatively isolated residential neighborhood just north of the city of Amarillo, Texas. The project was part of several solar farms it had proposed to the Texas Public Utilities Commission to meet the load growth created by the state’s AI data center boom. As we’ve covered in The Fight, Texas should’ve been an easier place to do this, and there were few if any legal obstacles standing in the way of the project, dubbed Oneida 2. It was sited on private lands, and Texas counties lack the sort of authority to veto projects you’re used to seeing in, say, Ohio or California.

But a full-on revolt from homeowners and realtors apparently created a public relations crisis.

Mere weeks ago, shortly after word of the project made its way through the small community that is Rolling Hills, more than 60 complaints were filed to the Texas Public Utilities Commission in protest. When Xcel organized a public forum to try and educate the public about the project’s potential benefits, at least 150 residents turned out, overwhelmingly to oppose its construction. This led the Minnesota-based power company to say it would scrap the project entirely.

Xcel has tried to put a happy face on the situation. “We are grateful that so many people from the Rolling Hills neighborhood shared their concerns about this project because it gives us an opportunity to better serve our communities,” the company said in a statement to me. “Moving forward, we will ask for regulatory approval to build more generation sources to meet the needs of our growing economy, but we are taking the lessons from this project seriously.”

But what lessons, exactly, could Xcel have learned? What seems to have happened is that it simply tried to put a solar project in the wrong place, prizing convenience and proximity to an existing electrical grid over the risk of backlash in an area with a conservative, older population that is resistant to change.

Just ask John Coffee, one of the commissioners for Potter County, which includes Amarillo, Rolling Hills, and a lot of characteristically barren Texas landscape. As he told me over the phone this week, this solar farm would’ve been the first utility-scale project in the county. For years, he said, renewable energy developers have explored potentially building a project in the area. He’s entertained those conversations for two big reasons – the potential tax revenue benefits he’s seen elsewhere in Texas; and because ordinarily, a project like Oneida 2 would’ve been welcomed in any of the pockets of brush and plain where people don’t actually live.

“We’re struggling with tax rates and increases and stuff. In the proper location, it would be well-received,” he told me. “The issue is, it’s right next to a residential area.”

Indeed, Oneida 2 would’ve been smack dab up against Rolling Hills, occupying what project maps show would be the land surrounding the neighborhood’s southeast perimeter – truly the sort of encompassing adjacency that anti-solar advocates like to describe as a bogeyman.

Cotton also told me he wasn’t notified about the project’s existence until a few weeks ago, at the same time resident complaints began to reach a fever pitch. He recalled hearing from homeowners who were worried that they’d no longer be able to sell their properties. When I asked him if there was any data backing up the solar farm’s potential damage to home prices, he said he didn’t have hard numbers, but that the concerns he heard directly from the head of Amarillo’s Realtors Association should be evidence enough.

Many of the complaints against Oneida 2 were the sort of stuff we’re used to at The Fight, including fears of fires and stormwater runoff. But Cotton said it really boiled down to property values – and the likelihood that the solar farm would change the cultural fabric in Rolling Hills.

“This is a rural area. There are about 300 homes out there. Everybody sitting out there has half an acre, an acre, two acres, and they like to enjoy the quiet, look out their windows and doors, and see some distance,” he said.

Ironically, Cotton opposed the project on the urging of his constituents, but is now publicly asking Xcel to continue to develop solar in the county. “Hopefully they’ll look at other areas in Potter County,” he told me, adding that at least one resident has already come to him with potential properties the company could acquire. “We could really use the tax money from it. But you just can’t harm a community for tax dollars. That’s not what I’m about.”

I asked Xcel how all this happened and what their plans are next. A spokesperson repeatedly denied my requests to discuss Oneida 2 in any capacity. In a statement, the company told me it “will provide updates if the project is moved to another site,” and that “the company will continue to evaluate whether there is another location within Potter County, or elsewhere, to locate the solar project.”

Meanwhile, Amarillo may be about to welcome data center development because of course, and there’s speculation the first AI Stargate facility may be sited near Amarillo, as well.

City officials will decide in the coming weeks on whether to finalize a key water agreement with a 5,600-acre private “hypergrid” project from Fermi America, a new company cofounded by former Texas governor Rick Perry, says will provide upwards of 11 gigawatts to help fuel artificial intelligence services. Fermi claims that at least 1 gigawatt of power will be available by the end of next year – a lot of power.

The company promises that its “hypergrid” AI campus will use on-site gas and nuclear generation, as well as contracted gas and solar capacity. One thing’s for sure – it definitely won’t be benefiting from a large solar farm nearby anytime soon.

Yellow

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Hotspots

A Data Center Is Dead, Long Live a Solar Farm

And more of the most important news about renewable projects fighting it out this week.

The United States.
Heatmap Illustration/Getty Images

1. Racine County, Wisconsin – Microsoft is scrapping plans for a data center after fierce opposition from a host community in Wisconsin.

  • The town of Caledonia was teed up to approve land rezoning for the facility, which would’ve been Microsoft’s third data center in the state. Dubbed “Project Nova,” the data center would have sat near an existing We Energies natural gas power plant.
  • After considerable pushback at community meetings, the tech giant announced Friday that it would either give up on the project or relocate it elsewhere to avoid more fervent opposition.
  • “While we have decided not to proceed with this particular site, we remain fully committed to investing in Southeast Wisconsin. We view this as a healthy step toward building a project that aligns with community priorities and supports shared goals,” Microsoft said in a statement published to its website, adding that it will attempt to “identify a site that supports both community priorities and our long-term development objectives.”
  • A review of the project opponents’ PR materials shows their campaign centered on three key themes: the risk of higher electricity bills, environmental impacts of construction and traffic, and a lack of clarity around how data centers could be a public good. Activists also frequently compared Project Nova to a now-infamous failed project in Wisconsin from the Chinese tech manufacturer Foxconn.

2. Rockingham County, Virginia – Another day, another chokepoint in Dominion Energy’s effort to build more solar energy to power surging load growth in the state, this time in the quaint town of Timberville.

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Q&A

How the AI Boom Could Come Back Around for Natural Gas

A conversation with Enchanted Rock’s Joel Yu.

The Fight Q & A subject.
Heatmap Illustration

This week’s chat was with Joel Yu, senior vice president for policy and external affairs at the data center micro-grid services company Enchanted Rock. Now, Enchanted Rock does work I usually don’t elevate in The Fight – gas-power tracking – but I wanted to talk to him about how conflicts over renewable energy are affecting his business, too. You see, when you talk to solar or wind developers about the potential downsides in this difficult economic environment, they’re willing to be candid … but only to a certain extent. As I expected, someone like Yu who is separated enough from the heartburn that is the Trump administration’s anti-renewables agenda was able to give me a sober truth: Land use and conflicts over siting are going to advantage fossil fuels in at least some cases.

The following conversation was lightly edited for clarity.

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Spotlight

Wind Farm Trump Killed Derails a Major Transmission Line

The collateral damage from the Lava Ridge wind project might now include a proposed 285-mile transmission line initially approved by federal regulators in the 1990s.

The western United States.
Heatmap Illustration/Library of Congress, Getty Images

The same movement that got Trump to kill the Lava Ridge wind farm Trump killed has appeared to derail a longstanding transmission project that’s supposed to connect sought-after areas for wind energy in Idaho to power-hungry places out West.

The Southwest Intertie Project-North, also known as SWIP-N, is a proposed 285-mile transmission line initially approved by federal regulators in the 1990s. If built, SWIP-N is supposed to feed power from the wind-swept plains of southern Idaho to the Southwest, while shooting electrons – at least some generated from solar power – back up north into Idaho from Nevada, Utah, and Arizona. In California, regulators have identified the line as crucial for getting cleaner wind energy into the state’s grid to meet climate goals.

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