Sunshine & Bluegrass

Good morning and happy Friday,

In this week’s headlines, GOP presidential candidate Nikki Haley won the endorsement of – and substantial financial backing from – the powerful Koch Network. While the former ambassador’s positions on some key issues may be less extreme than other candidates, when it comes to clean energy she has called for repealing the IRA and bashed Biden’s policies.

In other news, an analysis suggests U.S. solar installations are on track to outpace wind by 2026, and a report finds that clean energy had created more than 170,000 jobs in New York State by the end of 2022.

And as COP 28, the UN’s annual climate summit, kicked off in Dubai – characterized as a “divisive setting for climate talks” – GM signaled it has cold feet about EVs, although the fact that they’re driving investment and creating jobs in swing states may mean Republican attempts to bash them may be wasted breath.

Read on for more.

Sunshine & Bluegrass?

In Kentucky, $7 billion in federal funding designed to provide resilient and affordable solar energy solutions to economically disadvantaged regions has resulted in two applications in the Solar for All competition that, if successful, could bring meaningful changes to the Bluegrass State. Here are some key points:

• One is an innovative partnership between the city of Louisville and several Appalachian communities. Led by The Solar Collaborative, the partnership seeks to increase access to solar energy, particularly for low-income households.
• The other was submitted by the state’s Energy and Environment Cabinet. It includes a focus on using solar installations in disaster recovery situations, “particularly in areas hit by devastating floods and tornadoes in recent years.”
• While different, each of the proposed initiatives could have dramatic impacts. The Louisville-Eastern Kentucky application “anticipates delivering at least a 20% energy bill reduction for approximately 7,300 households” and creating 1,300 green jobs. The state’s application would also cut energy bills and support employment in the clean energy sector.

?? The Takeaway

Off to the races. An informed observer says both applications are “really solid,” but notes that they face a lot of competition – “more than 30 states have submitted notices that they’re applying along with a number of local governments and nonprofits across the country,” and only 60 grants will be awarded. We’re champing at the bit to see both get over the finish line.

Right on Target

An analysis of the IRA released this week by the Treasury Department shows the legislation has significantly shifted clean energy investments toward communities and parts of the country that need it most – “energy communities” and economically disadvantaged communities. Here are some fast facts:

• As one official remarked, “Put simply, clean energy investment is booming throughout the US, and investment is growing even faster in energy communities,” where investment in “bonus-eligible” clean energy projects surged from about $2 billion a month before the IRA to $5 billion a month after the IRA.
• A large majority of post-IRA clean energy investments are also flowing into counties with below-average wages, employment rates, and education levels, providing much-needed stimulus to economically challenged areas.

• The analysis follows on the heels of a DOE announcement earlier this week that $275 million in funding will be provided to support clean energy supply chains and “accelerate domestic clean energy manufacturing.”

?? The Takeaway

Clean energy economics. The initial data indicates the IRA is advancing President Biden's goal of promoting economic growth and climate action while prioritizing investment in communities that are underserved or historically fossil fuel-dependent. This approach is part of a strategy Treasury Secretary Janet Yellen has dubbed “modern supply-side economics,” which aims to unlock untapped opportunities in economically disadvantaged regions...and hopefully, votes in next year’s presidential election.

• Big Boi: Abu Dhabi debuts the world's largest single-site solar power plant
• Clean Tax Sherpa: U.S. gov releases guidance for clean energy Investment Tax Credit
• Beaver State Land Laws: Oregon’s first large-scale solar park hinges on 50-year-old land use laws

• Buckingham supervisors approve 100 MW solar project in Virginia?
• Commissioners deny 900-acre solar farm in Pitt County, NC
• Shawnee County quashes rumors while pondering wind and solar rules in KS
• Pottawatomie County KS extends solar farm moratorium for three more years

Catching the Clean Energy Wave

For most folks, Colorado elicits images of epic mountains and home to more 14ers than any other state. It certainly hasn’t sprung to mind as a place at the forefront of wave technology...until now.

Despite being 1,200-odd miles from the nearest ocean, the National Renewable Energy Laboratory's Flatirons Campus in Arvada has become a pivotal center for wave energy research. The concept dates back to a 1799 French patent and is being pursued as a carbon-free energy resource with huge potential – U.S. coastal waves carry about 2,300 terawatts of power, almost 60% of the nation’s annual electricity demand.

Tapping this potential requires surmounting huge challenges due to the ocean's harsh environment. Installing and testing prototypes in the sea is costly, involving boats and divers, and the ocean often damages or corrodes equipment. As described by Scott Jenne, a research engineer at the lab, "The ocean is as aggressive of an environment you’ll ever find".

To overcome these challenges, NREL has developed two new facilities. The first is the Sea Wave Environment Laboratory (SWEL), a 50-foot tank with glass walls where engineers can test 1:75 scale models of devices in controlled wave conditions. The second facility is a motion platform that supports full-scale prototypes, simulating the movement of sea waves to allow for rigorous testing and refinement of technologies before they are deployed in the ocean.

Gnarly, dude! We’re stoked.