Tesla is seeking to enter the multi-billion dollar US renewable credit market, hoping to profit from the Biden administration’s march toward new zero-emission goals, two sources familiar with the matter said.
The electric car maker is one of at least eight companies with a pending application at the Environmental Protection Agency tied to power generation and renewable credits, the sources said. The EPA produces a list of pending applications with some details, but not companies’ names.
Tesla’s entry could potentially reshape the renewable credit market, established in the mid-2000s to boost investment in the US biofuel industry. The market generated some 18 billion credits in 2020 and is currently dominated by ethanol producers. Tesla’s application would likely be tied to the production of electricity associated with biogas.
The Biden administration is expected to review the EPA applications and lay out how electric vehicles could qualify for tradable credits under the Renewable Fuel Standard (RFS) this summer, the two sources said.
The move could represent the largest expansion of the RFS program that was created by President George W. Bush and aimed at boosting rural America and weaning the country off oil imports.
The entry of Tesla and other EV makers to the renewable energy scheme could attract investment for a much-needed infrastructure network, including charging stations, for electric vehicles.
However, it is likely to anger some in the US refining industry who would need to buy the credits, known as RINs, generated by Tesla and other alternative fuel providers, essentially subsidizing an electric car company that seeks to put petrochemical refiners out of business.
Rural farmers could view Tesla’s entry as the Biden White House prioritizing EVs over biofuels as an answer to the climate crisis.
In 2016, just before the Obama administration exited office, the EPA published a proposal seeking comment on how best to structure credits for renewable electricity that is used as a transportation fuel.
The proposal largely sat dormant during the Trump administration, which spent most of its time on fuel credits trying to find common ground among rivals in the corn and oil industries.
Electricity from biogas – mainly pulled from the nation’s landfills – is already eligible for generating credits under the RFS program, but the EPA has never approved applications to do so because the agency hasn’t yet figured out the logistical issues.
Key questions include how to trace the credit-eligible biogas from its origin through to a car’s battery, and who along that supply chain should be allowed to claim the lucrative credits.
Under the RFS, refiners must blend biofuels like corn-based ethanol into their fuel pool or purchase compliance credits in a credit market, where prices have swung wildly in recent years.
The program has helped drive investment in ethanol plants in states like Iowa and Nebraska, but liquid fuels have been under attack from the Biden administration.
Tesla would generate the most lucrative type of credits, known as D3s, which trade at a significant premium to the larger pool of traditional ethanol credits.
As well as building electric cars, Tesla is also investing in charging stations and large-scale batteries.
Renewable energy sources increased by 45% in 2020, accelerating at their fastest rate since 1999, as demand for clean power grew during the COVID-19 pandemic, the International Energy Agency said in a report on Tuesday. Wind energy led the expansion, as global capacity increased by 90%. Solar energy capacity grew by 23%.
The IEA links this increase in renewable energy capabilities to global policy decisions and deadlines that countries had set themselves in terms of expanding their renewables sectors. China, the US and Vietnam are credited with leading the renewables push after momentum slowed when the pandemic first hit.
“Overall, IEA quarterly deployment estimates indicate that the slowdown in renewable capacity additions was limited to Q1 2020 only, mainly in China, while construction activity continued strongly in the rest of the world despite continuous movement restrictions and supply chain delays,” the agency said in the report.
Energy markets were hit hard during the COVID-19 pandemic, which saw travel come to a halt, as lockdown restrictions forced people to stay at home. Oil prices fell and turned negative for the first time in early 2020, as demand for the fuel vanished. Crude has since recovered, as investors anticipate economies reopening.
The decline in fossil fuel use also affected biofuel demand, the IEA said. Production fell by 8% in 2020, but still exceeded expectations – 150 billion liters of biofuel were needed in 2020 vs the 144 billion the IEA had predicted. The agency expects demand to rebound in 2021 and grow by a further 7% in 2022.
Looking ahead, the IEA predicts renewable energy sources will be responsible for 90% of global power expansion in 2021 and 2022. The agency expects solar and hydrogen power to play key roles, while the growth of wind power is set to slow down after its surge in 2020.
“The acceleration of hydropower additions through 2022 is driven by the commissioning of mega-scale projects in China. Meanwhile, expansion in other renewables, led by bioenergy, remains stable and represents 3% of total new renewable capacity additions,” the IEA said.
China had already been the driving force of renewable energy expansion in 2020, accounting for half of the new capacity installations and is expected to keep this leadership position, the IEA said.
Despite President Joe Biden’s recent infrastructure plans, Europe is set to replace the US as the second-largest renewable market in 2021 thanks to national policies on climate change and deadlines that are looming. Biden’s infrastructure spending may not take effect until later this decade, the IEA said.
Tesla CEO Elon Musk is going to shake up the way the company sells its solar panels.
In a tweet late on Wednesday, Musk said from next week, all sales of the company’s solar energy products will come together with its energy storage battery Powerwall.
“Solar power will feed exclusively to Powerwall. Powerwall will interface only between utility meter & house main breaker panel, enabling super simple install & seamless whole house backup during utility dropouts,” he said in a followup tweet.
Bloomberg reported this followed a complaint from Brett Winton, Director of Research at Ark Investment Management that his Tesla solar panels haven’t generated a “single watt-hour” since they were installed in January because he was waiting on his utility to approve the connection.
After Musk asked Winton if he had Powerwall he replied: “Hmm. Yes have powerwall. Everything right now is switched off; just awaiting LADWP [Los Angeles Department of Water and Power].”
Energy storage company Blue Planet Energy is focused on energy independence and sustainability.
It was founded in 2015 by Henk Rogers, who acquired the rights to Tetris in the 1980s.
It’s part of Hawaii’s climate change initiatives and hopes to make renewable energy more accessible.
This article is part of a series focused on American cities building a better tomorrow called “Advancing Cities.”
Residents and businesses in Hawaii pay more for energy than just about anywhere else in the country. Honolulu-based Blue Planet Energy is one organization that’s attempting to ease that energy burden.
Blue Planet Energy has created an energy storage system to encourage energy independence and broaden the use of renewable power. The company has about 25 employees and a network of more than 250 certified dealers that have installed thousands of its energy storage products.
“We want to decarbonize our energy system,” Chris Johnson, the company’s CEO, told Insider. “However, climate is changing. Storms are getting more intense and knocking out the grids, and so that’s where we need to deal with it.”
Climate change conversations typically focus on mitigation and adaptation, he said, and the company aims to make the homes and businesses that use renewable energy, such as solar panels, more resilient.
Since 2013, Honolulu has ranked first in solar power per capita among the country’s 50 largest cities and third in the amount of existing photovoltaic solar power, which generates electricity directly from sunlight, installed as of 2020, according to a report by the Environment America Research & Policy Center and the Frontier Group.
“With renewable energy, you can’t control when the sun shines or when the wind blows,” Johnson said. “But we need steady, reliable energy for our homes, for our businesses, for our critical infrastructure, and so we create energy storage solutions that allow the energy to be consumed when you need it. And they’re also resilient, so even if the grid goes down, you can still stay up and running.”
Here’s a look at how Blue Planet Energy’s renewable energy systems work, and how the company’s mission aligns with Honolulu’s sustainability goals.
The Blue Planet name has influenced climate change policy in Hawaii
Blue Planet Energy was founded in 2015 by Henk Rogers, who discovered and acquired the rights to the video game Tetris in the 1980s. More recently, he’s been committed to expanding clean energy and reducing and ultimately eliminating dependence on fossil fuel.
Rogers also founded the Blue Planet Foundation, a nonprofit working to solve climate change by leading the way in the transition to 100% clean energy. The organization has been influential in clean-energy policy adoption in Hawaii and Honolulu, including a bill requiring the state’s utilities to generate 100% of their electricity from renewable energy, which Hawaii Gov. David Ige signed into law in 2015. Hawaii was the first state to have such a law.
Blue Planet Energy’s energy storage systems are an extension of Rogers’ vision. While the company was founded in Honolulu and has a strong footprint in Hawaii, Johnson said it now has installations in more than 30 states, Puerto Rico, and several Caribbean islands, and is growing its presence in Mexico, Central America, and Canada.
“Henk, our founder, really thought that if we can achieve this in Hawaii, we could take that as a model to other places,” Johnson said. “It’s essentially a learning laboratory for sustainability.”
Energy storage solutions offer homes and businesses more resilient power sources
In March 2021, Blue Planet Energy launched a new product, the Blue Ion HI. The new energy storage system joins the company’s Blue Ion LX.
“Those are basically similar in approach and functionality but designed for slightly different situations,” Johnson said. “The LX is for larger installations, including commercial and industrial or community resilient infrastructure. Our HI offering is residential and small commercial.”
The Blue Ion LX accommodates on- or off-grid requirements for facilities like warehouses, corporate headquarters, and manufacturers. The battery stores excess solar energy or adjusts to traditional energy sources to avoid power interruptions, and increases the value of a company’s investment in renewable energy.
The Blue Ion HI is a solution for homes and businesses. It captures energy from renewable and traditional sources, easily switches from grid to battery power, and provides on-demand energy. The products are also stackable and can be configured in different ways to suit the needs of the property.
Henk, Johnson said, “likes things to be able to fit together nicely,” so they made the batteries stackable and easily scalable.
Blue Planet Energy’s customers mainly use its batteries to store excess solar energy, either displacing their use of a grid or a generator, Johnson said. This is a valuable service as energy bills continue to rise and natural disasters impact power grids.
“We need to have resilient infrastructure so we can bounce back quickly,” Johnson said. “If we put a lot of renewables out there without balancing it out with energy storage, the grid could be unstable or not available when you need it, and so we’re part of making sure that the grid can absorb a lot of renewables, it can recover and always be on.”
Expansion plans aim to make renewable energy more affordable and accessible
Helping to create more resilient and affordable energy systems aligns with the initiatives of Honolulu’s Office of Climate Change, Sustainability and Resiliency, Johnson said. Blue Planet Energy has worked with the office on developing renewable energy and resilience best practices, and the company plans to continue this work with the city’s new administration under Mayor Rick Blangiardi, which just took over in January.
To further address affordability, Johnson said the company recently launched a new financing product to make its energy storage systems more accessible to commercial customers. It doesn’t require a down payment and offers instant energy savings on solar power and Blue Ion storage installation.
The cost of Blue Planet Energy’s installations vary depending on a property’s energy needs and can range from tens of thousands of dollars to hundreds of thousands for large buildings with extensive power needs, according to the company. Energy storage installation costs roughly the same as solar installation.
The average cost for solar panel installation in the US varies by state, but averages $17,760 to $23,828 after the federal solar tax credit, which lowers the cost by 26%, according to EnergySage. Some states and local governments also offer rebates and tax credits for solar systems.
Blue Planet Energy is in a period of “scaling and acceleration,” Johnson said. Over the next decade, the company plans to expand and strives to alleviate the effects of climate change, which are expected to worsen.
“This is really crunch time,” he said. “How do we deliver the highest-quality, most reliable, safest solution at scale as fast as we can? Get it out on the ground, into homes, businesses, and critical infrastructure so that we can stabilize the grid and we can stabilize our climate.”
1. This whirlpool turbine can power dozens of homes in rural areas. It generates energy 24 hours a day. And can be installed in most rivers and canals. Free-flowing water powers up the generator’s turbine. It’s even safe for fish to pass through!
2. The Waterotor turbine is made specifically for slow-moving water. It works in currents as slow as 2 mph…So it can be used almost anywhere. The designers say the turbine is the first of its kind. It’s also safe for aquatic wildlife!
3. This giant flower is made of solar panels. The SmartFlower mimics the way sunflowers absorb solar energy. The flower has a tracking system…Which it uses to track the sun, the same way real flowers do.
4. The HomeBiogas 2.0 turns food scraps into gas! Bacteria digests the waste and turns it into biogas. The appliance can take up to 6 liters of waste per day… And can produce up to three hours of cooking gas. It can even make fertilizer!
5. This floating solar plant generates more electricity than traditional solar plants. The water helps cool down the panels, improving their efficiency. The panels are designed to withstand extreme weather… And are even recyclable.
6. These floor tiles use footsteps to generate electricity. They’re made by Pavegen and can generate up to 7 watts of power per step. They’re most effective in high-traffic areas, like cities. The company even used the tiles to charge a Tesla!
7. The GoSun Grill is powered using sunlight. Reflectors focus the sun’s light rays onto a metal tube… Creating cooking temperatures up to 550° F. The food goes directly inside the cylindrical tube.
8. This panda image is made out of solar panels. China is on a mission to build 100 of these panda power plants. A single plant could power more than 10,000 households annually. The idea was proposed in 2015 by 15-year-old Ada Li Yan-tung. She suggested the design would get young people involved in renewable energy.
9. These turbines make up America’s first offshore wind farm. General Electric and Deepwater Wind collaborated on the project. Over a year… They’ll emit 40,000 fewer tons of greenhouse gas than fossil fuels. And still generate the same amount of energy.
10. The Ecocapsule is a micro housing pod. And can house two people for up to a year. It has all the necessary amenities: Kitchen, bathroom, and storage space. It’s powered by solar cells and a wind turbine. It even collects and filters rain for drinking water.
11. The Saphonian is a bladeless wind turbine. It imitates a bird’s wing or a fish’s tail. And was designed after a ship’s sails. Going bladeless could be cheaper than making traditional turbines… And it doesn’t interfere with magnetic or radar waves!
12. The Hydralight lantern is an eco-friendly alternative to traditional gas-lit lanterns. It runs on salt water and an energy cell. And uses the charged particles in the water to create electricity.The lantern is simple to use… Just a single dip in salt water… And it can give off over 250 hours of light.
13. This floating wind farm in Scotland is the first of its kind. Don’t worry; it won’t float away. It’s held in place by suction anchors on the seabed. And can power 20,000 households for a year.
14. This sewage is being turned into biodiesel. The carbon content in human waste is converted into energy. The engineers say biodiesel can be used in regular diesel car engines… With little or no modifications.
15. This bladeless turbine mimics a hummingbird’s wings! The Tyer Wind Converter uses a flapping motion instead of rotating blades. It’s not as powerful as bladed turbines… But the smaller size makes it ideal for populated areas.
16. This battery can make, supply, and store its own energy. The Eli-Home charges itself and can be used as an electric grid. Solar panels gather and store energy. It’s easily removable and portable, and the best part… You can even control it with your smartphone.
EDITOR’S NOTE: This video was originally published in August 2019.
Honolulu has been focused on sustainability and climate change since receiving a grant in 2016.
Its resilience plan has promoted access to renewable energy and expanded clean transportation.
Other initiatives include reducing energy bills and addressing hunger by supporting local farmers.
This article is part of a series focused on American cities building a better tomorrow called “Advancing Cities.”
In his first state-of-the-city speech in mid-March, Rick Blangiardi, mayor of Honolulu, Hawaii, emphasized the city’s commitment to “climate resilience.”
“From sea level rise, rain bombs, and increasing temperatures, we’re taking steps toward a climate-ready Oahu,” said the mayor, who was sworn in at the start of 2021. The island of Oahu is home to the city and county of Honolulu.
“We’re shifting from talking about policy to doing something about it,” Blangiardi added.
Sustainability and climate change are issues that Honolulu’s leaders have been working to address for years. In 2016, the city was awarded a 100 Resilient Cities Initiative Grant from the Rockefeller Foundation to help fund the hiring of a chief resilience officer to work with the city on crafting climate change and resilience plans.
Since then, Honolulu has debuted a Resilience Strategy and a Climate Action Plan, which have helped inspire citywide legislation to reduce the energy burden on residents, promote access to renewable energy, expand clean transportation, and support locally grown food producers.
Here’s a look at some of Honolulu’s sustainability initiatives.
Codifying the Resilience Office’s responsibilities will help Honolulu meet its sustainability goals
Bill 65 establishes an energy benchmarking system, requiring Honolulu to create and report energy and water use benchmarks for city-owned buildings. The rule is estimated to save the city $7 million over the next decade. The bill also specifies that the city will transition to 100% renewable energy and become carbon neutral by 2045.
It also addresses many other climate change and sustainability measures, including a One Water policy, examining efficiencies across the city’s water system.
The Resilience Strategy addresses affordability and climate change
One of the central initiatives of the Resilience Office is the Oahu Resilience Strategy, which aims to address “long-term affordability and the impacts of a climate crisis that is already driving islanders from their homes,” according to the office’s website.
Planning began in 2017 when the office met with Oahu’s 33 neighborhood boards to survey residents about what concerned them most about climate change and how they thought it could be addressed, Matthew Gonser, chief resilience officer and executive director of Honolulu’s Office of Climate Change, Sustainability and Resiliency, told Insider.
Hundreds of ideas were gathered from the community. Those concepts were narrowed down into 44 actions, comprising the Resilience Strategy. The strategy focuses on four broad subjects: long-term affordability, natural disaster preparedness and response, climate change, and local community leadership.
By the end of 2020, significant progress had been made on about half of the 44 resilience actions, Gonser said.
The Climate Action Plan outlines what’s needed to address climate change long term
The plan was developed based on scientific evidence and community input to fight climate change and reduce fossil fuel emissions on Oahu. It spells out the needed programs, policies, and actions for the city to become carbon neutral by 2045 — and includes nine strategies to focus on over the next five years, including increasing renewable energy and energy efficiency.
To develop the Climate Action Plan, community meetings with Honolulu City Council members, Hawaii Pacific University, the University of Hawaii at Mānoa, and the Chamber of Commerce of Hawaii were held, and working groups with stakeholders were set up, Gonser said.
During the first few months of 2021, the public had the chance to share their opinions and concerns about the plan before it goes to the city council. Gonser said the Climate Action Plan will likely be adopted this year.
Honolulu updated parking ordinances to promote walkability and the use of clean energy transportation
At the end of 2020, former mayor Kirk Caldwell signed Bill 2 to update Honolulu’s mandatory parking requirements for new developments. It gives developers more flexibility in how much parking to build and allows opportunities for the land to be used for other purposes, such as affordable housing.
“It’s making sure that our rules and regulations don’t force overbuilding of parking, empowering more choice and leaving it to developers to determine what’s needed,” Gonser said.
The bill supports walkable neighborhoods and cleaner transportation options, such as biking and public transportation, which Honolulu plans to transition to clean fuel.
It could also make housing more affordable since constructing and maintaining parking is sometimes a hidden cost for renters, according to an analysis by the Ulupono Initiative, a Honolulu-based organization that provides grants, investments, and advocacy to support renewable energy, locally produced food, and other sustainability-minded projects.
For urban Honolulu renters, up to 37% of their rent may go toward parking, which, for decades, has often been built based on city regulation rather than actual need.
“The bill makes progress in the right direction, better aligning with city climate and community goals, while allowing parking to remain accessible for those who genuinely need it and not requiring it of those who don’t,” Kathleen Rooney, Ulupono Initiative’s director of transportation policy and programs, said when the bill was signed.
Making solar power more accessible eases Honolulu’s energy burden
Hawaii has one of the highest average electricity retail prices in the country, according to the US Energy Information Administration, and the state relies on petroleum for most of its electricity generation.
Reducing the energy burden is a key focus area of Honolulu’s Resilience Office. In December, the city enacted Bill 58 to streamline the permitting process for residential clean energy products, such as solar power, energy storage, and electric vehicle chargers. The goal is to cut down on the costs and time it takes to install solar systems.
Creating more equitable access to renewable energy is an important component in making Honolulu an affordable place to live, Gonser said.
“We have one of the highest energy burdens in the nation,” he said. “It’s updating our energy code and making sure that all new things that are being built are ensuring long-term affordability for residents and that they can benefit from progressive infrastructure so that we can reduce the energy burden over time.”
New performance-based regulations could lower energy bills for residents
As another initiative aimed at reducing energy bills, Hawaii’s Public Utilities Commission approved a new Performance-Based Regulation Framework in late 2020. The framework would transform utility company Hawaiian Electric by making its operations more efficient, lowering electricity rates, improving services, and meeting the state’s clean energy goals.
“That’s really groundbreaking,” Amy Hennessy, senior vice president of communications and external affairs at Ulupono Initiative, which provided research and other information to guide the framework’s adoption, told Insider. “The impacts toward changing the incentives for our utility to transform into a renewable energy future are significant.”
The new structure provides financial incentives for the electric company to meet certain goals, like creating savings for lower-income customers and reducing greenhouse gases. It also separates the utility’s profits from capital investments, creating a cost-of-service approach.
Matching grant provides $1 million to fight hunger and support local food producers
Hunger has been an ongoing problem for many communities, but the pandemic worsened the situation, as unemployment increased and many families have faced new financial struggles.
To address hunger in Hawaii, Gov. David Ige announced in October 2020 that the state would provide a $500,000 matching donation to the DA BUX Double Up Food Bucks program, which doubles the amount of the Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps, that are spent on locally grown food.
Several private-sector organizations raised $500,000 for the program, including the Stupski Foundation and Ulupono Initiative, which each provided $200,000. The state match offers $1 million total for the program.
Addressing hunger and providing incentives to encourage residents to buy more locally grown and produced food are part of Honolulu’s Resilience Strategy. The DA BUX Double Up Food Bucks program also aims to strengthen the local economy because it keeps residents’ food budgets on the island.
“A million dollars going out into communities for not just those who need access to food, but also our local farmers who needed a market — it’s actually putting dollars in their pockets while they’re growing to help provide healthy options for the community,” Hennessy said. “So it’s really a triple win.”
Other corporations like Facebook are joining in by buying huge amounts of solar and wind power. Smaller startups have in the meantime made progress on breakthrough technologies like batteries that last for days – a key component to transitioning to cleaner energy.
The new administration has also signaled that clean energy is a key priority. President Joe Biden set forth an ambitious climate-change agenda, and investment in clean-tech is booming. Energy executives told Insider they’re watching closely and hope to see alignment of regulatory authorities and support to offshore wind industries among other moves from the new president.
Insider’s Benji Jones gathered four top executives in the energy industry for a live roundtable earlier this month to talk about how Big Oil can make good on its promises, how to generate returns for shareholders while pivoting into cleaner energy products, and which breakthrough technologies are needed to reach net-zero emissions by 2050.
Panelists also discussed how rising oil prices may actually benefit investments into clean energy, as contrary as that may sound. West Texas Intermediate crude trades for about $61 a barrel, around pre-pandemic levels. Crude tumbled last year as COVID-19 put a stop to travel and manufacturing, driving down demand for oil.
The panelists included: Urvi Parekh, Facebook’s head of renewable energy; Mateo Jaramillo, Form Energy’s cofounder and CEO; Shell’s EVP for renewables and energy solutions, Elisabeth Brinton; and Francois Austin partner at Oliver Wyman in the UK and head of the group’s energy practice.
Brinton told Jones that Shell – known for being a major oil and gas company – is investing in energy storage well as many other cleaner technologies.
“We’re involved in offshore wind, onshore wind, onshore solar, storage, hydrogen. So green hydrogen for industrial and transport uses,” Brinton said. “We have the largest LNG business in the world, and so we have a lot of experience moving ships and transport.”
Shell is “technology agnostic,” according to Brinton, who added that the company is really focused on use cases and how it can help various sectors reduce their carbon footprints.
Oliver Wyman’s Austin told Insider that the oil-price recovery isn’t putting the investment case for clean energy at risk. On the contrary, Austin said, the rising prices will actually “enable the Shells of this world to finance this transition” to clean energy.
“I think society has shifted. I think COVID has been a wake-up call,” he said. “Momentum is there.”
Austin said that oil and gas are going to continue to be part of the energy mix as far out as 2040 or 2050. The transition to clean energy is expected to take a long time as new technologies develop over time.
Brinton agreed, adding that she believes the near-term price of oil actually helps speed up the transition by funding it.
“That’s a really important point because a lot of people think, ‘Well, that’s bad. It’s going to slow things down,” she said. “Actually, it’s very helpful.”
Some of the biggest companies in the world have pledged to move toward cleaner energy. They say they want to see support from the US government as they move forward on their promises.
President Joe Biden has set forth the most ambitious climate-change agenda in the nation’s history, and investment in clean-tech has been booming.
But transitioning to renewable energy takes time. Though the US government and large corporations alike agree that clean energy is a key priority, making the transition would require overhauling infrastructure, some of which has been around for decades.
In the meantime, oil giants like Shell have announced new targets to reduce the ‘intensity’ of emissions over the next three decades, while corporations like Facebook are buying solar and wind power. Smaller startups have in the meantime made progress on breakthrough technologies like batteries that last for days – a key component to transitioning into cleaner energy.
Insider’s Benji Jones gathered four top executives in the energy industry for a live roundtable earlier this month to talk about how Big Oil can make good on its promises, how to generate returns for shareholders while pivoting to cleaner energy, and which breakthrough technologies are needed to reach net-zero emissions by 2050.
Panelists also discussed what they would want to see from the Biden administration to help the US move toward clean energy.
The panelists were: Urvi Parekh, Facebook’s head of renewable energy; Mateo Jaramillo, Form Energy’s cofounder and CEO; Shell’s EVP for renewables and energy solutions, Elisabeth Brinton; and Francois Austin, partner at Oliver Wyman in the UK and head of the group’s energy practice.
When asked about what she would like to see from Biden, Shell’s Brinton told Insider that she wants the new administration to “continue to lean in with a commitment and a pace.”
Biden could do this, for example, by supporting investment tax credits and providing support to offshore wind to get projects up and running, Brinton said.
Bringing together different environmental agencies is also key to drawing a clear path forward and accelerating clean energy, she added.
Oliver Wyman’s Austin agreed.
“I think it’s about aligning the regulatory authorities,” Austin said, adding that everybody is on the same page about the issue.
“I think the government wants to do it. The administration wants to do it. The consumers want it. Corporates want to do it,” Austin said.
The recent pullback in clean tech stocks presents a “rare buying opportunity” according to analysts at Morgan Stanley.
In a note to clients on Wednesday, Morgan Stanley analysts led by Stephen C. Byrd said they are recommending clean tech stocks with “strong growth and cash flow” after a recent fall in share prices.
The analysts upgraded a basket of stocks from the sector including AES Corporation, Atlantica Sustainable Infrastructure, Solaredge Technologies, TPI Composites, and SunRun to overweight in their note.
The team cited “strong growth in renewables and energy storage given favorable economics and further cost declines” as the main reason for their upgrade.
The analysts also said the trend towards increased environmental, social, and corporate governance (ESG) spending would be a positive for the clean tech sector moving forward, and argued ESG capital is “being deployed on leaders in clean energy” like the names they’ve upgraded.
The team from Morgan Stanley added that they believe federal support in the form of clean energy and infrastructure legislation is an “under-appreciated upcoming catalyst” for the clean tech sector.
Additionally, according to Morgan Stanley’s US power supply mix forecast, there will be a huge increase in renewable energy use over the next decade from 12% of current power output to roughly 40% by 2030.
Still, the analysts reduced their price targets for the sector somewhat due to “a higher cost of capital given a rising rate environment and higher equity risk premium.”
The analysts noted that many investors believe valuations are high in the sector after a run-up in share prices in 2020 and into 2021. However, according to the team, after the recent pullback there are “many Clean Tech stocks reflecting growth that is far below their rapid, multi-decade growth outlook.”
The analysts also noted that “corporate and residential consumer interest in clean energy and energy storage continues to rise substantially.”
The clean tech sector has been booming of late. So much so that Global X started the CleanTech ETF or CTEC, last October to allow investors to bet on the sector as a whole. The ETF has posted a 50% return since inception.
Democrats did poorly among rural voters in the 2020 election.
To reconnect with rural America, lawmakers can spur economic growth with local renewable energy projects.
Communities are already on board, and the investment would create millions of jobs and slow the effects of climate change.
Brandon Presley is Public Service Commissioner for the Northern District of Mississippi.
Jeff Cramer is executive director for the Coalition for Community Solar Access, a national trade association representing innovative businesses and nonprofits working to expand customer choice and access to solar for all American households and businesses through community solar.
Jigar Shah is president and co-founder of Generate Capital.
This is an opinion column. The thoughts expressed are those of the authors.
President Joe Biden may have won the 2020 election by the largest margin against an incumbent since 1932, but more than 74 million Americans – close to half of all the people who cast a ballot – voted for the incumbent.
Nowhere is this disconnect between the Democratic Party and voters more stark than among rural Americans. As Biden won in cities and towns, former President Donald Trump dominated in the rural regions.
Even as COVID raged – and rages – with the death toll soaring past 280,000 in 2020, rural voters’ chief concern, as the election neared, shifted from the coronavirus to the economy. And the Republican Party has effectively and steadfastly homed in on these fiscal concerns.
Local renewable energy projects can strengthen rural communities
Democrats now have a singular opportunity to offer a clear economic vision for rural America. With the start of a new administration and an urgent need for broad economic stimulus, lawmakers – and the nation as a whole – not only have the opportunity to rebuild the nation, from its bridges to its transmission grids, they also have the chance to reconnect with rural voters by reinvigorating local economies and putting America’s rural counties first.
Lawmakers can achieve this with a clean energy “Marshall Plan” that will empower rural communities with local renewable power, millions of new jobs, billions of dollars in economic activity, slashed health costs, and, yes, help slow climate change.
Take the Samson Solar Center in Texas as an example: This $1.6 billion project in Lamar, Red River, and Franklin counties, announced in November, will support up to 600 jobs through its three-year construction period. What’s more, the project promises more than $250 million in payments to local landowners, and another $200 million in property-tax payments to local communities over the lifetime of the project.
This utility-scale project – once built, the biggest in the US – is just one type of rural clean-energy investment. Thousands of smaller ones can be built across rural America – not top-down from big corporations or the federal government, but built locally from the ground-up by the nation’s rural electric co-ops.
Rural co-ops once revolutionized American energy, bringing electricity to the communities too small or isolated for the big utilities to bother with. Decades since that effort, they’ve become saddled with the most expensive coal-fired power plants in the country, costing families an extra billion dollars a year while imposing enormous health costs from the pollution.
But due to innovative local leadership, rural electric co-ops have, with little fanfare, become hotbeds of innovation in America’s energy economy – creating millions of local jobs in the process. In Mississippi, for example, the Public Service Commission has steadilyexpanded solar generation – not only with large, utility-scale projects like the one in Texas, but with smaller, locally managed solar farms.
This locally-managed effort has catapulted the Magnolia State, with its deep-red bona fides, into the top ranks of green energy generation. In fact, more than 500 rural co-ops in 43 states have started implementing solar power. With access to cheap land, plummeting costs for solar, and subsidized loans from the federal government to convert all of their electricity generation to renewable energy, this transition is accelerating.
Many communities are already on board
This shouldn’t be surprising. We’ve long known that conservative and liberal voters alike broadly support clean energy investment – Democrats largely for the environmental reasons, Republicans for the cost savings and energy independence that solar delivers.
Community and rooftop solar or “local solar” projects, like the kind implemented in Mississippi, enhance these benefits – especially when paired with batteries to provide around-the-clock power. Local solar systems, for example, can save consumers a half a trillion dollars over the next three decades. And that’s before even including so-called “indirect” benefits like job growth, economic investment, and the health, social, and environmental benefits of less pollution.
State lawmakers, of both parties, are finally starting to catch on. In Pennsylvania, for example, Republican lawmakers, with support from the state farm bureau, backed a bill for community solar. The legislation didn’t quite make it to the governor’s office, but momentum is growing.
Rural co-ops have far less red tape than traditional utilities and grid operators, allowing them to move more quickly and at lower cost. It’s of course far easier to build infrastructure in less densely populated areas. The electricity these resources generate is cheaper than coal, gas, or oil, saving money for local landowners. And the projects are locally sited, empowering communities to make the pragmatic choices that are best for them. That’s a win-win-win-win.
The Biden administration entered office pledging to Build Back Better, at the plan’s centerpiece a $2 trillion clean energy roadmap. But energy, like politics, is local. To best succeed, and reestablish a long lost connection with rural voters, lawmakers must harness the work and innovation in America’s rural communities, and empower them to lead the way.