MAy Breakfast Re-cap

The Role of the Commercial Development Industry in the New Energy Economy

At the May breakfast sponsored by Evergreen Recycling, attendees heard from four professionals whose agencies are leading the state in its quest to create a new energy economy. Panelists included Robin Reedy, chief of staff to Governor Gibbons; Gregory Helseth, BLM renewable energy project manager Southern Nevada; and David Simms, NV Energy director of project development for renewable energy. They were joined by moderator Kathleen Drakulich, partner with McDonald Carano Wilson LLP, for an in-depth discussion about the various elements that go into a renewable energy project in our state. In addition, the panel also discussed what becoming the country’s leading renewable energy provider could mean to Nevada in terms of jobs and revenue.

Renewable energy is not a new concept for our state. In fact, there are 26 solar projects and seven wind projects in Southern Nevada alone. Simms, with NV Energy, gave the audience an overview of the energy provider’s current portfolio, as well as its regulated goals for renewable projects in the future. By 2025, the Nevada Public Utility Commission has mandated that 25 percent of NV Energy’s portfolio must be renewable.

Simms went on to say the Mojave Desert is a prime resource for Nevada and is really the epicenter of renewable energy.

This offers many opportunities for NAIOP members who may consider developing projects and selling energy to NV Energy. This can be accomplished in many ways, including adding solar panels to the rooftops of industrial buildings or mounting photovoltaic panels on the ground.

Drakulich, the moderator and one of the state’s leading energy attorneys, advised the audience to plan ahead when considering these projects. She said to ensure success is to get a purchase power agreement from NV Energy before building a plant. This agreement states NV Energy’s intent to buy the power from the source.

However, challenges do arise when trying to get a project approved and the energy to market. One of the biggest hurdles impacting the state’s ability to move forward as an energy leader, is amount of federally-owned land. Approximately 87.5 percent of Nevada is owned by the federal government. Not only does this limit the state’s available land for building projects, it also causes issues with transmission lines needed to transport the energy to market. BLM representative Helseth said the BLM is working hard to get the projects approved quickly.

According to Reedy, the Governor’s Office is pushing the BLM to give some of the land back to Nevada. The Governor believes that renewable energy is one way to generate much-needed revenue for the state.

“We need everyone to ride this wave of energy retrofit,” Reedy said. “It will get us out of this economy. It will bring jobs. The Governor wants this not only because it’s green, but also because it will bring green to our state.”

Written by: Kassi Belz, MassMedia