Don’t Let Utility-Scale Solar Be Used As A Fig Leaf

By Frank Andorka, Senior Correspondent

What Happened:Sammy Roth of The Desert Sun is one of my mainstream solar writers, and he takes a fascinating look at the Trump Administration’s decision to reopen the Desert Renewable Energy Conservation Plan.

  • The Trump Administration and Secretary of the Interior Ryan Zinke talk about reopening the Desert Renewable Energy Conservation Plan, which was finished in 2016 and was designed to balance environmental protection and renewable-energy development.
  • But even the large-scale solar developers are suspicious of Trump’s motives behind the plan reconsideration.

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SolarWakeup’s View:  First off, read the whole Sammy Roth article that I link to at the end of this. On top of it being a great topic, Sammy’s writing veritably sings.

But even after reading his excellent piece, I’m left wondering (primarily because Sammy’s too good a reporter to offer his opinion and his sources are frankly as confused as I am): What exactly is the Trump Administration’s end game here as they reopen the settled discussion the Desert Renewable Energy Conservation Plan? And is utility-scale solar being used as a fig leaf for something far more nefarious?

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Read Sammy’s piece to get the whole background on the Plan, but essentially it was a negotiated agreement under the Obama Administration that attempted to find a balance between environmental protection and renewable-energy development in the California desert. Some large-scale solar advocates, along with the Solar Energy Industries Association, submitted a letter asking that some parts of the plan be modified – administratively – to clarify where and when renewable energy projects can be developed on the land, the merits of which could be debated, I suppose.

But what’s weird to me – and probably to most other people reading this article – is that the Trump Administration isn’t talking about making incremental changes. It’s talking about completely renegotiating a deal that took more than eight years to negotiate in the first place. So the question before the jury is this: What is Ryan Zinke’s (and the Trump Administration’s) end game here? What are they really opening up this agreement to accomplish?

Trump clearly isn’t interested in doing the “bidding” of large-scale solar, given that he has little understanding of the technology and little curiosity to learn. So he’s using large-scale solar (and, to be fair, wind) development as a fig leaf to open up this precious ecosystem for something else.

The solar developers out there have gotten really good at developing their projects on land other than property that would disturb the environment. After all, who are we as an industry if we’re not protecting the environment while also making money?

The solar industry skepticism expressed in the article is fitting – and it should be something on which we all keep our eyes. We can’t let ourselves be used as a fig leaf to cover up something that ends up being antithetical to our values.

More:

The Trump vs. California environmental fight nobody’s talking about

EnergyWakeup – Danny Kennedy From CALCEF On Cleantech Startup Investing and Innovating Utilities

This episode is sponsored by Conductive Capital, a distributed generation platform with tax efficient capital.

In this episode we speak to Danny Kennedy, managing director of CALCEF (calcef.org) and President of CalCharge. Danny has gone from activist to entrepreneur and now investor, fighting for a clean energy future for many decades.

CALCEF is the fund that is deploying early stage dollars into clean energy startups in a time when working with early stage companies could not be more important. We talk about the most pressing issues in the space and what kind of companies they are looking to fund.

In a partnership, Danny is working with global utilities in a program called Free Electrons (freeelectrons.co) that are looking to fund capital for companies innovating in the electric utility space. The leaders in this fund understand the problems facing their business model and want to work with the next generation of companies to remain competitive.

Don’t miss this episode filled with knowledge about startups, innovation and the market. Danny knows the market and shares his insights with you.

Find the episode on SolarWakeup.com, iTunes, SoundCloud and Stitcher radio. Please subscribe and share with your friends how much EnergyWakeup is helping you!

EnergyWakeup – Episode 5 – EnergyWakeup With Senator Wiener Of CA And Assemblyman Brooks Of NV

This episode is sponsored by NEI Energy Services, an EPC contractor delivering solar projects done right the first time across the East Coast.

In this episode of EnergyWakeup, Bryan and I dig into the type of leadership that needs to happen on the left. Pushing the goal posts on energy policy agenda can be done. We look at two examples and speak with the sponsors of California SB 71, Senator Wiener (CA-11), and Nevada AB 206, Assemblyman Chris Brooks.

Senator Wiener joined the California Senate after being a member of the San Francisco Board of Supervisors. He is the sponsor of SB 71 which would put solar on the roof of every new home and commercial building in California. This is similar to an initiative that he passed in San Francisco. Senator Wiener gives us some insight about politics in California in a Trump World and the possibility of passing the 100% RPS that the California Senate is pushing for and how the oil lobby is trying hard to stop it.

The legislative agenda for Senator Wiener can be found here.

Making news in Nevada is Assemblyman Chris Brooks. Brooks comes from a career in energy and has worked in the solar industry for over 15 years. We talk about the current NEM proceedings and how it may impact his bill, AB 206. AB 206 is an RPS increase to 80% by 2040 with a 50% hurdle by 2030. Assemblyman Brooks also made some news in the interview letting us know that several solar bills will be put forth this session regarding the rooftop solar policies and net metering. With a democratic Assembly and Senate, he does see the need to work with the Governor’s office to solve this and thinks it will be possible with a moderate Governor Sandoval.

In the biggest news, he does make a prediction about the rooftop solar industry in Nevada during the show that everyone will want to hear. Follow the legislation and other solar bills in Nevada’s bill tracker.

Find the episode on SolarWakeup.com, iTunes, SoundCloud and Stitcher radio. Please subscribe and share with your friends how much EnergyWakeup is helping you!

EnergyWakeup – Episode 4 – Interview With Conor McKenna From CohnReznick Capital Markets

This episode is sponsored by Conductive Capital, a distributed generation platform with tax efficient capital.

In this episode we speak with Conor McKenna, Managing Director at CohnReznick Capital Market Securities. Conor advised a $78 million tax equity investment for the Crescent Dunes Solar Project by SolarReserve. The innovation here is that the Crescent Dunes solar project uses molten salt energy storage technology from the SolarReserve concentrating solar tower site.

Conor gives us some details on the deal structure, how tax equity got comfortable with the risk of the technology and sponsor. The investors also used a tax equity structure becoming more common than the fixed time flip that many investors have used in the past.

We couldn’t leave the interview without asking Conor about his thoughts on tax reform and how it could impact the markets. What would happen if tax rates are lowered and how investors view that potential risk in their model.

At the end, he shares some thoughts about what gets him most excited in 2017, and it has to do with lowering the cost of capital. Listen now!