Following revisions to clean energy tax credit regulations and other Trump administration moves, NV Energy is requesting authorization from the Federal Energy Regulatory Commission to allow pending interconnection customers to withdraw their requests without incurring penalties.
Developers may withdraw renewable energy projects that are no longer viable, according to the filing. NV Energy’s interconnection queue currently consists of nearly 80% projects with solar or wind components.
The request, which also covers customers with executed interconnection agreements, was submitted to FERC on Monday by the Interwest Energy Alliance (IEA) and the Solar Energy Industries Association (SEIA). The groups explained that the measure would help eliminate non-viable projects from NV Energy’s queue.
In a single filing, the trade associations stated that “NV Energy’s waiver request will create an opportunity for now uncertain projects to remove themselves from the queue or abandon their projects quickly, without punishment and with a quick reimbursement of their commercial deposits.”
“If less certain projects exit earlier, more certain projects can anticipate a lower likelihood of multiple restudies and less uncertainty regarding cost responsibility.”
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NV Energy Waiver Request to FERC
Citing a Department of the Interior memo and the July 4 spending bill that phased out clean energy tax credits, NV Energy asked FERC on July 28 for approval of a waiver. The waiver would create a one-time, 60-day window during which interconnection customers could exit the process without paying withdrawal fees.
Berkshire Hathaway Energy subsidiary NV Energy stated, “The goal of this waiver request is to clear the queue as much as possible and avoid unnecessary disputes, while providing a benefit to those prepared to leave.”
According to NV Energy, developers with offtake clients and funding will benefit more from the ability to withdraw interconnection requests and terminate interconnection agreements.
The Las Vegas-based utility noted that the July 15 DOI directive requires the Interior Secretary and Deputy Secretary to personally oversee “every decision, action, consultation, and undertaking” tied to solar and wind projects on federal lands managed by the Bureau of Land Management (BLM). NV Energy highlighted that 67% of Nevada falls under BLM jurisdiction.
Concerns Over Federal Oversight of Renewable Projects
In a letter to Interior Secretary Doug Bergum on August 4, Republican Nevada Governor Joe Lombardo stated that since DOI released its memo, the state’s renewable energy development has been halted.
In a letter included with the SEIA and IEA filing, Nevada Governor Joe Lombardo expressed concern that the memo could “impede or unnecessarily delay energy development in the state,” particularly projects intended to support growing demand from the mining sector and data centres.
As of July 31, there were 49 projects totalling around 17,610 MW in NV Energy’s interconnection queue, including approximately 8,530 MW of hybrid solar and battery storage projects.
Approximately 5,735 MW of interconnection agreements have also been established with 27 projects that signed connectivity requests after 2020 but have not yet gone into service.
According to NV Energy, this suggestion might assist developers of renewable energy in concentrating on their most promising initiatives.
Impact on Nevada’s Renewable Energy Development
The utility further explained that returning commercial deposits quickly could help clean energy developers redirect efforts toward projects still eligible for tax credits, projects outside of federal solar and wind restrictions, or those required to meet Nevada’s renewable energy standards despite shifting economics.
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