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Energy

Tesla Board Reportedly Eyes Musk’s Replacement

On Musk’s successor, a House vote, and Spain’s blackout

Tesla Board Reportedly Eyes Musk’s Replacement
Heatmap Illustration/Getty Images

Current conditions: Flash flood warnings remain in place today throughout the south-central U.S. Israel has requested international assistance in fighting large fires that have broken out in the hills near JerusalemMay in Europe is off to a warm start, with temperatures in the mid-80s in Paris.

THE TOP FIVE

1. Tesla board began search for Musk’s replacement: report

Tesla’s board initiated a search for a chief executive to replace Elon Musk, The Wall Street Journal reported Wednesday night. With stock prices “vaporized,” car sales floundering, and dealerships becoming targets for public frustrations with the government, the board reportedly warned Musk that he needed to shift his focus from reform efforts in Washington and back to Tesla. At the time of the conversation, which happened “about a month ago,” Musk “didn’t push back,” the Journal writes, although Musk subsequently told investors on Tesla’s earnings call last week that he’d be “allocating far more of my time to Tesla.” While the board had reportedly advanced its search for Musk’s successor to the point of having “narrowed its focus to a major search firm,” the current status of the effort to find Musk’s replacement “couldn’t be determined.”

Musk has complained to those close to him that he is “frustrated to still be working nonstop” at Tesla, and has made public comments about his compensation. He spent more than $250 million on Trump’s re-election campaign, although his company faces substantial hurdles due to the president’s policies, including a significant hit from tariffs and a loss of competitive advantage if California’s ability to set vehicle emission standards stricter than the federal government’s, which has generated significant revenue for Tesla in the form of compliance credits it’s sold to other automakers, is revoked.

2. House strikes down California’s clean truck rule, cueing up clean air vote

The House of Representatives voted 231 to 191 on Wednesday evening to revoke California’s ability to incentivize clean truck purchases, a prelude to Thursday’s vote over whether or not the state can set stricter auto emission standards than the federal limits. Thirteen moderate Democrats, including Henry Cuellar of Texas, Susie Lee of Nevada, and Tom Suozzi of New York, joined Republicans in voting to block California from requiring truck dealers to sell an increasing number of zero-emission medium- and heavy-duty vehicles over time. In a separate vote on Wednesday, the House revoked another of California’s standard-setting capabilities, designed to cut down on nitrogen oxide emissions, which Republican Morgan Griffith of Virginia described as “an effort to truly vilify diesel engines.” The measures will now be sent to the Senate.

California’s authority to set these rules comes from waivers it’s been granted by the Environmental Protection Agency under the Clean Air Act, which otherwise compels states to adhere to federal standards. The Clean Air Act also allows other states to adopt California’s standards, giving the state extraordinary influence over the automotive market.

The marquee vote, however, will come on Thursday, when the House will vote to end California’s vehicle emissions waiver, which some critics have erroneously characterized as an electric vehicle mandate. Many are skeptical, however, that Congress has the authority to revoke the waiver under the Congressional Review Act. Senate parliamentarian Elizabeth MacDonough has previously said the waivers do not qualify under the CRA and “ignoring that ruling would buck decades of precedent under presidential administrations of both parties, and would lay the foundation for potentially tricky legal fights down the road should a future president decide to grant California a new waiver,” journalist Clark Mindock writes for Landmark.

3. Debate rages over whether Spain’s renewable energy dependence caused Iberian blackout

Pablo Blazquez Dominguez/Getty Images

Monday’s 18-hour blackout across Spain and Portugal has sparked a fierce and ongoing debate over whether the Iberian Peninsula’s heavy reliance on wind and solar energy is to blame. While the investigation into the cause of the blackout is still ongoing, we do know that at the time of the outage, Spain’s grid “had little ‘inertia,’ which renewables opponents have seized on as a reason to blame carbon-free electricity for the breakdown,” my colleague Matthew Zeitlin explains. In essence, gas turbines and nuclear plants have inertia that comes from spinning metal, such as a turbine, which can provide the system with a little more momentum if a generator drops off the grid. “Solar panels, however, don’t spin,” Matthew adds — hence the current line of attack by energy transition skeptics.

On Wednesday, the president of Spain’s national grid operator, Red Eléctrica, insisted that “linking what happened on Monday to renewables isn’t correct.” Spain’s prime minister, Pedro Sánchez, has likewise claimed that “Those who link this incident to the lack of nuclear power are frankly lying or demonstrating their ignorance.” But as Matthew writes, it wouldn’t necessarily be a surprise to learn that a renewables-heavy grid struggled with maintaining reliability due to low inertia — nor is it an insurmountable challenge. Read more about how inertia may have played a part in the blackout here.

4. Equinor considers ‘legal options’ against the Trump administration over canceled wind farm

Equinor, the Norwegian state-owned energy company behind Empire Wind, is reportedly considering suing the Trump administration after the Department of the Interior canceled its Long Island offshore wind farm last month. As my colleagues Emily Pontecorvo and Jael Holzman reported at the time, Empire Wind was “the second fully permitted offshore wind project” to be targeted by the administration, and its potential cancellation represents “a huge blow to New York State’s climate and clean energy goals.”

Equinor has already spent nearly $2 billion on Empire Wind, which was almost a third complete at the time Interior Secretary Doug Burgum ordered an immediate halt to construction. The company is now “considering its legal options,” The Guardian writes, and “may take Donald Trump’s administration to court.”

5. India braces for potentially deadly slate of spring heatwaves

India is preparing for a series of heatwaves in May that could potentially strain power grids and lead to dangerous blackouts, Bloomberg reports. The warning — issued on Wednesday by the director general of India’s Meteorological Department, Mrutyunjay Mohapatra — follows what was already a difficult April in the country, with temperatures in New Delhi spiking above 100 degrees Fahrenheit earlier in the month. In Jaipur, temperatures have already broken 110 degrees, leading outdoor laborers to suffer from heatstroke. Mohapatra confirmed that above-average temperatures are expected to persist over most of the country between now and the onset of the monsoon season in June, except in some parts of the southern and eastern states. Spring heatwaves in India have been linked to climate change, with Gianmarco Mengaldo, a climate expert at the National University of Singapore and author of one such report, telling The Guardian, “Many of the events predicted for 2050 or 2070 are already happening. We underestimated the speed of change.

THE KICKER

Ministers in the UK are considering a new rule that would require almost all new homes to have rooftop solar.

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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

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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.

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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.

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  • 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.

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Q&A

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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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