A movement is gaining momentum in the United States to block utility-scale renewable energy projects, despite the decreasing cost of wind and solar power compared to other sources. Recent analyses indicate a significant acceleration in the opposition to new wind and solar projects at the county level, raising concerns among energy analysts. This resistance seems disconnected from the declining costs of renewable energy, with wind power’s unsubsidized cost dropping by 66% since 2009, and solar’s cost falling by 84%.
A county-by-county analysis published by USA Today on February 4 highlighted a substantial increase in counties actively working to block utility-scale wind and solar proposals. This trend, outlined in a report by Lazard, contradicts the ongoing reduction in renewable energy production costs. Despite the evidence supporting the economic feasibility of clean power, opposition has surged, with local governments reportedly banning green energy at a faster rate than they are embracing it.
While the short-term impact may be significant, analysts point out that over the long term, the fungible nature of electricity allows grid operators to transfer clean energy across different regions. This capability enables ratepayers to benefit from renewable energy even if their local area opposes utility-scale projects. Additionally, the 2022 Inflation Reduction Act has stimulated a boom in clean tech manufacturing jobs, creating an interesting dynamic. Counties blocking renewable energy projects, such as Tennessee, are paradoxically fostering clean tech manufacturing ventures, supporting the industry’s supply chains.
Despite Tennessee’s restrictive laws against utility-scale wind turbines, the state’s “right-to-work” regulations have attracted clean tech manufacturing ventures. Shoals Technologies Group, a semiconductor firm, announced an $80 million expansion of its manufacturing and distribution operation in Tennessee, emphasizing the state’s role in meeting the growing demand for solar power.
While opposition to utility-scale renewable energy projects is growing, the long-term outlook suggests that the declining costs of clean energy and the economic benefits associated with the clean tech industry may outweigh current challenges. The situation highlights the complex interplay between local opposition and the broader economic and environmental goals associated with the renewable energy transition.