The St. James Solar farm in Vacherie collects the rays of the sun and turns them into power for the New Orleans area on Thursday, July 7, 2022. The Sulphur area could become the home for a $244 million solar farm, according to filings with Louisiana Economic Development.
The St. James Solar farm in Vacherie collects the rays of the sun and turns them into power for the New Orleans area on Thursday, July 7, 2022. The Sulphur area could become the home for a $244 million solar farm, according to filings with Louisiana Economic Development.
Renewable energy developers, speaking Tuesday at the Petroleum Club in Lafayette, said the Acadiana region and Louisiana are at an inflection point in energy buildout.
While the green energy sector has benefited from the state’s willingness to do business and the growing need for additional electricity to meet industrial demand, the developers said an often antagonistic Trump administration could make that growth more difficult. Still, they said the market will ultimately dictate the future.
The developers discussed the role of quickly deployable renewable energy projects as Louisiana’s power demand continues to rise. Long waitlists for traditional energy turbines have pushed the state to rely more heavily on renewables such as solar and wind to meet rapidly growing industrial needs — particularly in the power-intensive digital economy and the expansion of data centers, said James Kondrat, senior manager of project development at DESRI.
“The state is attracting serious interest from the digital economy,” he said.
DESRI, which develops, owns and operates renewable energy projects, currently has seven projects in development in Louisiana, representing about $2 billion in investment in the state. The company plans to invest another $2 billion to $3 billion in Louisiana over the next five to 10 years, Kondrat said.
“Louisiana continues to be a standout place where long-term energy infrastructure investment makes sense economically, strategically, and socially,” Kondrat said.
Louisiana has seen a major expansion in renewable energy, with more than a dozen projects currently operating, according to the Solar Energy Industries Association. At least another eight projects are under construction or in development.
Two major hurdles remain for renewable projects: opposition from some local governments and uncertainty at the federal level. The Trump administration has long criticized renewable energy and has sunsetted tax credits meant to encourage solar and wind development, frozen approval and permitting for some projects, and reversed approvals granted under then-President Biden.
“The volatility around the (Trump) administration makes it a difficult environment for capital planning for long-term investments,” Kondrat said.
In Iberia Parish, opposition from rural landowners near a proposed solar farm led the parish government to impose a moratorium on new projects. The Parish Council later adopted restrictions, including a half-mile setback from residential zones and a minimum project size of 50 acres. Similar disputes have been seen in Tangipahoa and St. James Parish.
“While reasonable regulations at the parish and state level, we believe, are a logical next step towards efficient development. Regulation which suffocates development will stifle the energy we need to get to the grid,” Kondrat said.
On the federal side, he argues that consumers and electricity costs will eventually set the priorities for the administration.
“The market is what will tell this administration where to go,” Kondrat said.
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