The Solar 600

This Week's Trend In Brief:

• Last Sunday, USA Today published a new report that found “local governments are banning green energy faster than they’re building it,” with 15% of counties and several states effectively halting new utility-scale solar and wind projects through various measures.

   

• While that might not seem like a lot, as one clean energy advocate warned, too much of that 15% represents “the most highly productive areas to develop wind and solar.” Indeed, one database found at least 600 instances of local resistance to renewable energy in recent years.

   

• Too many energy developers are learning the hard way that getting renewable energy projects built has never been more challenging, with skepticism in local communities growing and local stakeholders getting increasingly sophisticated support from professionalized activists on both the left and right.

   

• To avoid getting caught in the middle of these battles, energy developers must have a well-informed plan to navigate the tension between local communities concerned about development and policymakers advancing aggressive energy transition goals.

   

•  Staying ahead requires a proven playbook to build the right strategic approach, and that starts with understanding who these activists are, how they operate, and where they get their funding and technical expertise. With that foundational knowledge secured, standing up a robust monitoring program will ensure you can anticipate how these local fights may develop and impact your development plans.

Digging Deeper:

 
A new USA Today report that found “local governments are banning green energy faster than they’re building it,” with 15% of counties and several states effectively halting new utility-scale solar and wind projects through various measures. The report analyzed a series of restrictions placed by local governments that have become more and more common as communities across the U.S. remain wary of the projects and their impacts. Former Iowa state senator Jeff Danielson, who is now with the Clean Grid Alliance, told USA Today that 15% represents “the most highly productive areas to develop wind and solar,” warning, “Our overall goals are going to be difficult to achieve if the answer is ‘No’ in county after county.” According to the report, more than 400 counties have restricted wind and solar projects, including “through outright bans, moratoriums, construction impediments and other conditions that make green energy difficult to build.”

The report highlights one component of the growing trend that makes getting solar and other renewable energy projects built more challenging than ever before. While renewable energy projects may seem to align with state and global climate goals, energy companies now too often find themselves facing local communities and other stakeholders more concerned about the impacts in their own backyards than the climate. Local communities are growing more skeptical about the impact renewable developments have, and local stakeholders are getting increasingly sophisticated support from professionalized activists on the left and right. The “Renewable Rejection Database” organized by energy expert Robert Bryce has identified approximately 600 instances of local restrictions or rejections of solar and wind projects in the U.S. since 2011, and his data shows the trend has increased rapidly since 2020.

Opponents of renewable projects, including local residents, have employed various tactics to advocate for these restrictions, including attending public hearings, petitions, administrative interventions, and lawsuits against local governments or developers. The offshore Vineyard Wind project in Martha’s Vineyard, for example, has faced many legal challenges since receiving its permits, and the Gemini Solar Project in Nevada has faced years of resistance from environmental groups and local residents concerned about its environmental impact despite the project being a $1.2 billion investment in clean energy. While districts across the country consider placing restrictions on utility-scale renewable energy projects in their localities, companies must stay ahead of these challenges to avoid prolonging the already long approval process.

To avoid getting caught in the middle of these battles, energy developers must have a well-informed plan to navigate the tension between skeptical local communities and policymakers pushing aggressive energy transition goals. As we detailed in Generating Opportunity last summer, energy developers already face pressures from local communities concerned about how large renewable projects impact and change the nature of their hometowns. These concerns are often exacerbated by professionalized activism, both by environmentalists on the left and climate skeptics on the right. Citing various concerns, activists today frequently oppose renewable energy projects necessary to achieve climate and emissions goals, and those activists “have little incentive to proclaim victory and depart the field when their fundraising and grassroots energy relies on never being satisfied.” As renewable projects continue to face increasing pressure from activists, concerned residents, and others, it is more important than ever for energy companies to stay ahead of the debate on the ground.

Setting a project up for success requires a proven playbook that leverages an in-depth understanding of the full range of stakeholders, from potential allies to committed foes, and ensures you can anticipate their moves and mitigate their impact. Modern-day activists are professionalized, nationalized, and digitized, meaning that even as climate-focused industry tries to build solutions, climate activists are ready to fight them. These activists also have become uncompromising in their demands and now command significant resources to take these fights to every level of government and the project approval process, local or otherwise. Companies hoping to advance the energy transition must understand this reality and devise a game plan to avoid becoming bogged down by opposition. At Delve, that game plan starts with understanding the full range of policymakers, regulators, and stakeholders that can impact a project’s timeline – what motivates them, how they will engage in the debate, and what sort of resources they can leverage. This in-depth risk analysis informs a monitoring program that helps clients anticipate what various stakeholders are likely to do next and ensure they stay three moves ahead.

Trends in Energy is your weekly look at key trends affecting the energy industry, brought to you by the competitive intelligence experts at Delve. As the political and regulatory landscape continues to shift, reach out to learn how our insights can help you navigate these challenges.