Electricity that is needed now is being held up by new regulations
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18 GW of Electrical production is on hold under new regulations
Reuters examined permitting databases maintained by the U.S. Department of the Interior and spoke with 10 industry representatives for this story.
Energy research firm Wood Mackenzie said it has identified 18 gigawatts of solar projects on federal lands that were canceled or are inactive due to limited development progress since the start of the year.
"It's extremely detrimental to our industry because it just upsets the ability to deliver projects," said Abigail Ross Hopper, president of the Solar Energy Industries Association, which estimates that more than 500 solar and storage projects are threatened by the freeze.
Last week, more than 100 solar companies penned a letter to Congressional leaders
urging them to revoke the Interior Department policy, which they said amounted to a near moratorium on new permits.
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CLOUDS OVER NEVADA
Nevada, with its sun-soaked deserts, has emerged as the epicenter of the permitting slowdown, with more than 33 gigawatts of solar and battery storage projects on or adjacent to federal lands in various stages of development, according to Republican Governor Joe Lombardo.
Lombardo warned in an August letter to Burgum that federal delays threaten supplies to NV Energy, the state's top power provider, and may hinder mining and data center expansions.
The solar projects named by Lombardo are being developed by divisions of NextEra Energy
(NEE.N), opens new tab, Korea's Hanwha
(000880.KS), opens new tab and Japan's SoftBank
(9984.T), opens new tab.
"Nevada remains committed to an all of the above energy strategy that includes responsible solar development," Lombardo said in a statement to Reuters.
NextEra and SB Energy both declined to comment. Joo Yoon, the CEO of Hanwha development arm 174Power Global, said several of its projects are suffering from federal permitting delays, "and we are making every effort to resolve these matters in any way possible."
The stakes are high for communities like Boulder City, a Las Vegas satellite community, that relies on revenue from solar projects on city-owned land. Leases on existing projects generate $21 million a year, or nearly 40% of the city’s operating budget, according to city officials.
Two new developments – Hanwha's Boulder Solar 3, and Scout Clean Energy's Boulder Flats – would add another $3 million annually. But both projects are waiting for a final sign-off from the Bureau of Land Management because a transmission corridor is under federal jurisdiction.
"They do not communicate with us," Brok Armantrout, Boulder City’s revenue contracts manager, said of the city's inquiries to BLM staff. "Even though the field office is here in Las Vegas, they've given us email addresses promising updates. And crickets."