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Energy

Trump Widens His War on Wind

On Crux’s growth, Tesla’s slow ‘death,’ and a carbon storage warning

Trump Widens His War on Wind
Heatmap Illustration/Getty Images

Current conditions: In the Pacific, Hurricane Kiko has strengthened into a Category 2 storm, and is on track to reach “major storm” status • In the Atlantic, moisture is moving into an area with a lot of dry air, posing a “high risk” of developing into a tropical storm • Northern India is facing intense monsoon winds and deadly landslides.

THE TOP FIVE

1. Trump enlists more federal agencies in his war on wind

The White House has taken what The New York Times described as “the extraordinary step” of ordering half a dozen agencies to draft plans to thwart the country’s offshore wind industry. Helming the effort are White House Chief of Staff Susie Wiles and Deputy Chief of Staff Stephen Miller. While the assault on the wind industry has largely taken place at the Department of the Interior, the departments of Transportation and Commerce joined the effort in the past two weeks, as this newsletter reported yesterday. Now the Trump administration is tapping in even more agencies, including those that traditionally have little jurisdiction over marine energy production. The Department of Health and Human Services has begun a study into whether wind turbines emit electromagnetic fields that could damage human health. The Department of Defense, meanwhile, is probing whether the projects pose a risk to national security. “We’re all working together on this issue,” Robert F. Kennedy Jr., the secretary of health and human services, said during a cabinet meeting last week.

Heatmap’s Jael Holzman has been following the administration’s increasingly outlandish efforts to squelch wind projects in her newsletter, The Fight. Last week, discussing the potential redesignation of incidental bird deaths as purposeful under the Migratory Bird Treaty Act, she wrote, “It’s worth acknowledging just how bonkers this notion is on first blush.” The move would make operating a wind farm effectively illegal, depriving numerous states of a major source of electricity. “Even I, someone who has broken quite a few eye-popping stories about Trump’s war on renewables, struggle to process the idea of the government truly going there,” she said.

2. Crux is expanding into tax and preferred equity deals

Until earlier this year, clean-energy finance startup Crux was a digital marketplace exclusively for buying and selling tax credits made available by the Inflation Reduction Act. When Republicans in Congress threatened to eliminate tax credit transferability in March, however, the company moved into debt financing, a market that CEO Alfred Johnson told Heatmap’s Katie Brigham was seven times bigger. Now, in an exclusive interview Katie published yesterday, Crux said it’s expanding yet again into the tax and preferred equity markets. “The tax equity market was a $20 billion market before the IRA, and is now a $32 billion to $35 billion market,” Johnson told Katie, citing numbers from the company’s forthcoming mid-year market intelligence report. That’s a 10% to 20% increase over last year. Crux’s overall goal is to make itself a one-stop shop for project financing.

3. Tesla slams ‘death by a thousand cuts’ for solar

Australian rooftop solar is roughly half the price of Americans pay. Tesla

Tesla’s energy division released a new white paper warning that U.S. regulations were imposing “death by a thousand cuts” on the rooftop solar industry. In a post on LinkedIn, Tesla’s senior director of residential solar Colby Hastings said the “regulatory landscape slows progress, and we need more than one rule change to solve this.”

“Solar insiders have long lamented that residential deployments in the U.S. are too expensive compared to overseas. With the passage of the OBBB and tax credits expiring, it is imperative that we take a hard look at how the industry will navigate the next decade,” she wrote. “We must ensure that consumers have competitive choices for energy. This means affordable solar and storage at home.” Among the changes she proposed were enacting national code standards “that simplify rules, keep pace with hardware innovation, and limit regional variation.” She also called for reducing tariff on imported components to lower the cost of hardware. “Bottom line — we see an opportunity to cut ~40% from the cost stack, reducing average solar + storage installation from > $5/W today to ~$3/W.”

4. 85 scientists slam Energy Department’s ‘cherry picked’ climate report

More than 85 climate scientists signed onto a line-by-line critique of the Department of Energy’s recent report sowing doubt over the severity and causes of rising global temperatures. The analysis pointed out that the federal report was written by a “tiny team of hand-picked contrarians” known for “often writing outside their areas of expertise.” The controversial government study had “no peer review of transparency,” they wrote, “unlike legitimate assessments,” and relied on “cherry-picked evidence and miscitations” to reach a “predetermined outcome.”

It’s far from the only criticism Secretary of Energy Chris Wright is attracting. In a Tuesday post on X, Wright claimed that “if you wrapped the entire planet in a solar panel, you would only be producing 20% of global energy,” arguing that “one of the biggest mistakes politicians can make is equating the ELECTRICITY with ENERGY!” A community note X users appended to the agency chief’s post pointed out that this wildly undercounted the potential to capture energy from the sun, which covers the planet in enough solar potential to meet “3,000x global energy use.” Yet even that failed to capture how “funny and sad” Wright’s “silly and unsophisticated” post really was, said electricity analyst David Fishman. In particular, Fishman noted, Wright seemed to underestimate how much total energy usage worldwide could be converted to electricity. “That's thinking like a guy who spent his whole career drilling for gas, but never learned much about physics, electricity, industry, or energy systems,” he wrote. “Really not what you want to see from someone in such a position.”

5. New study shows world’s carbon storage potential is a fraction of what industry says

The amount of carbon emissions that the world can safely store is just a 10th of industry estimates, according to a Bloomberg writeup of a new study in the journal Nature. Researchers at the International Institute for Applied Systems Analysis and Imperial College London found “a prudent global limit” of around 1.46 trillion tons of CO2 that can be safely stored in geologic formations. That’s “almost 10 times smaller than estimates proposed by industry that have not considered risks to people and the environment.” Utilizing all the practical areas to store carbon would curb global warming by 0.7 degrees Celsius, compared to industry estimates of 6 degrees Celsius or higher.

THE KICKER

Cooling data centers consumes a huge amount of electricity, and nearly half of that energy is lost as low-temperature waste heat that’s simply vented into the air. But a new study from Rice University found a way to close the loops and channel that heat into more electricity. “There’s an invisible river of warm air flowing out of data centers,” Laura Schaefer, the chair of the mechanical engineering program at Rice and co-author of the paper, said in a press release. “Our question was: Can we nudge that heat to a slightly higher temperature with sunlight and convert a lot more of it into electricity? The answer is yes, and it’s economically compelling.”

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Q&A

How to Channel Voters’ Anxieties About Data Centers

A conversation with the Guardrails Alliance’s Shaunna Thomas.

The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.

After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.

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Hotspots

Consider the Lobstermen Affected by New York’s Empire Wind

Plus more of the week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.

  • In late October, a family of lobstermen sued Equinor in federal court claiming the company’s compensatory mitigation program is failing to adequately make up for alleged negative impacts to lobster fishing grounds in the New York Bight. According to the lawsuit, the wind project irreparably hurt fishing in previously trafficked waters. The suit also claims that Empire Wind construction destroyed lobster fishing pots and seeks at least $75,000 in damages as well as punitive damages and attorneys’ fees.
  • The lawsuit is the first I have seen involving someone in aquaculture suing for damages over negative impacts of an already-constructed wind project, and it carries outsized implications as the Trump administration remands without vacatur the construction and operations plans for other offshore wind farms. This case is far from being decided, but that doesn’t matter: It is precisely the kind of complaint that Trump officials are likely to consider as they mull revisions to operational plans.
  • An Equinor spokesman declined to comment on the case, telling me they don’t speak on pending litigation.

2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.

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Spotlight

Data Center Developers Can’t Pay People Enough to Accept Them

Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.

Donald Trump and data center protesters.
Heatmap Illustration/Getty Images

This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.

Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.

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