County board fears huge solar project puts taxpayers at risk for cleanup
What do you do with 290,000 solar panels spread out over 1,000 acres when it comes time to tear them down? The developer’s plan for the proposed $245 million Birch Coulee solar installation calls for recycling most of the materials at that point. But the Renville County Board has reservations about the potential financial liability for taxpayers, due to the unknowns surrounding the decommissioning process so far in the future, according to the West Central Tribune.
A renewable energy company planning to build a large solar project in Renville County intends to address a check list of issues raised by the county, but there remains one sticking point.
Members of the Renville County Board of Commissioners told representatives of AES Clean Energy that they do not believe $3,334,478 is a sufficient amount to decommission the proposed Birch Coulee Solar Project at the end of its useful life.
It’s not that there’s a dispute over the approximate cost of decommissioning the site, which both parties agree will run about $13 million. The disagreement revolves around how much of the estimated total AES should be required to set aside in advance to give county officials confidence their constituents won’t wind up getting stuck with some of the bill.
The commissioners asked state regulators to require that AES Clean Energy post a bond to cover those costs in the future. The company does not plan to post financial assurance until the 10th year of operations by the solar operation. It would post 25% of the decommissioning cost.
The company also estimates it will cost $13 million to decommission the site, but it states that it can reduce the net cost to just over $3 million by selling the metals in the panels for about $10 million. The company proposed the financial assurance of just over $3 million based on that expectation.
Other concerns expressed by county elected officials have been largely satisfied by the renewable energy company. But the uncertainties surrounding the process and cost of disposing of tens of thousands of solar panels and reclamation of the land remain a problem with the potential to hold up the project.
Commissioner Randy Kramer said the “market is unknown at this time.” The company cannot know the revenue it might realize from the sale of the metals. He said the county does not want to risk putting the burden of possible decommissioning costs on taxpayers.
Kramer also raised his concern that with a change in administrations coming to the federal government, the economics of renewable energy sites might not prove to be what was projected for the project.
Current plans call for construction to begin in 2028 with the solar plant scheduled to go online two years later.