Billionaire Warren Buffett bids big for slice of Biden's record-busting solar auction
The US obtained $105.15m in high bids in an auction for utility-scale solar development across four parcels of federal lands in the state of Nevada’s Amargosa Desert, which could support almost 3GW of renewable energy to the electric grid, according to government officials.
The Bureau of Land Management (BLM), part of the US Department of Interior, held the auction on Tuesday. BLM administers 247.3 million acres (1 million km2), about one-eighth of the country's landmass.
“This record-breaking auction … is further evidence that the demand for clean energy has never been greater,” said Interior Secretary Deb Haaland.
“The technological advances, increased interest, cost effectiveness, and tremendous economic potential make these projects a reliable path for diversifying our nation’s energy portfolio,” she added.
The auction resulted in the identification of provisional winners for leases on two parcels and for preferred applicants on two parcels.
NV Energy, the dominant electric utility in Nevada and 89% owned by billionaire Warren Buffett’s Berkshire Hathaway conglomerate, placed high bids for both leases auctioned in the Amargosa Valley Solar Energy Zone.
Parcel A includes 3,775 acres with a high bid of $35.25m, and Parcel B includes 3,451 acres with a high bid of $46.6m.
Provisional preferred applicants were identified for the two parcels auctioned outside the solar energy zone.
Boulevard Associates, a wholly owned subsidiary of US industry pacesetter NextEra Energy Resources, placed the high bid of $21m for rights to submit a solar energy development proposal for a 10,129-acre tract (Parcel 1).
Silver Star Solar I, a subsidiary of Leeward Renewable Energy, placed the high bid of $2.3m to submit a solar energy development proposal on a 6,320-acre tract (Parcel 2).
Successful bidders for these parcels outside designated solar energy zones must also submit a right-of-way application within 30 days of the auction and a plan of development within 60 days.
BLM will then conduct project-specific reviews to verify compatibility with existing laws and policies before approving further project development.
President Joe Biden’s administration sought to portray the auction as underscoring the importance of BLM’s work to identify areas with high solar potential and low resource conflicts on vast swaths of land the federal government controls in western states.
The Amargosa Valley Solar Energy Zone was one of 17 that the BLM initially identified in a 2012 blueprint on solar energy development in six states in the West.
BLM recently announced a proposed update of its renewable energy regulations to promote solar energy development on federal lands, including by reducing fees for projects by around 80%, streamlining review of applications, and delivering greater certainty for the private sector.
With growing local opposition to solar and wind development on private property in Texas and some other states, the White House is pushing hard to open federal lands despite concerns over medium- and long-term impacts among its political allies in environmental and wildlife protection groups.
BLM is now processing 74 utility-scale onshore clean energy projects proposed on public lands in the western United States. The agency claims they have combined potential to add more than 37GW of renewable energy to the western electric grid
cover photo:Daily Mail
