NCET Biz Tips: Diversifying Nevada’s Energy Investments
NCET helps you explore business and technology
Amber Rudnick
If there’s one thing we have in common, it’s energy consumption. We all use energy every day to warm our homes, power our businesses, and communicate with one another. It can be easy to take for granted, but it takes planning and investment to ensure supply keeps up with demand.
It’s worth noting that Nevada’s energy consumption outpaces its production by a factor of six. With an estimated population growth of 20% over the next 2 decades, the demand for energy is set to rise significantly. If we want to continue to rely on energy as we do now, it’s important to plan and invest in energy infrastructure. As with any investment, it’s in Nevada’s best interest to ensure its investments are diversified by funding different types of energy generation, battery storage technology, and transmission infrastructure.
When it comes to electricity generation, Nevada is already relatively diverse. Natural gas accounts for over 50% of in-state electricity generation, solar resources account for about 25%, and a mix of coal-fired, hydroelectric, and geothermal energy account for the remainder. Nevada generates 26% of the nation’s utility-scale geothermal electricity. While Nevada has made great progress on renewable energy generation, the potential for additional development is rich.
Electricity generation is merely one piece of the complex energy puzzle. Investment in battery energy storage can also help ensure stability. By storing energy during off-peak hours and releasing it during peak demand periods, battery storage can help reduce the strain on the electrical grid and lower electricity costs. Battery storage also helps to smooth out the fluctuations in renewable energy production from sources like solar and wind, making them more reliable and usable on the grid.
Lithium is a key component in rechargeable batteries used in portable electronic devices, electric vehicles, and grid storage applications. Nevada is home to the several large lithium deposits, and plans for developing mining projects and refining facilities are underway.
Investment in transmission infrastructure is equally crucial to Nevada’s energy strategy. Transmission infrastructure is necessary to effectively transport electricity from where it is generated to where it's needed by consumers. It ensures reliable access to power across large distances, mitigating congestion on the grid, and enabling the integration of renewable energy sources by connecting them to load centers. This ultimately leads to lower electricity costs and increased grid resilience. Without a reliable grid, regions could experience power outages and limitations in accessing diverse energy sources depending on local generation capacity alone.
Development of some of these energy projects can be complex and challenging. About 80% of Nevada is owned and managed by the federal government, so energy generation, battery energy storage, and transmission projects in Nevada are often located on federal land. Projects developed on federal land are statutorily required to undergo extensive additional analysis before the federal government can grant permits. The government approvals can be subject to lengthy legal challenges, which can delay projects and significantly increase the cost of development.
Additionally, whether on private or public land, projects must obtain permits to construct from the Public Utility Commission of Nevada, and permits for dust control, special use, and construction from local governments.
In recent years, to promote clean energy sources, federal and state governments have offered financial support for energy generation projects. The Inflation Reduction Act, for example, is expected to bring an estimated $2.7 billion of investment in large-scale clean power generation and storage to Nevada between now and 2030.
Learn more about Nevada Energy Development at NCET’s Biz Cafe on December 4th. NCET is a member-supported nonprofit organization that produces educational and networking events to help people explore business and technology. More info at www.NCETcafe.org.
Amber Rudnick is an attorney at Holland & Hart LLP (https://www.hollandhart.com/) who assists renewable energy developers, mining companies, and water purveyors with a range of environmental permitting and compliance matters.