Uncover the Top Concerns of Renewable Energy Developers in 2024

Renewable energy developers can expect continued growth in 2024. Significant investment in renewables is driving expansion across the sector, with solar projects booming, storage initiatives on the rise, and clean hydrogen poised for major growth. The U.S. Energy Information Administration predicts a 17% increase in renewable energy capacity to 42 GW this year, accounting for nearly a quarter of the nation’s electricity generation. Despite these promising trends, renewable energy developers continue to face significant obstacles.

Our 2024 Renewable Energy Developer Report highlights the biggest concerns developers face today. From complex site selection processes to regulatory challenges that can delay or even halt projects, we will explore the critical issues on developers' minds and examine the strategies employed by some of the most successful players in the renewables sector.

The biggest site selection concerns for renewable energy developers

Selecting the right site is the first and most crucial step in the development process. The report identified two primary challenges that developers say significantly impact a project's success.

Access to transmission lines

One of the main concerns for developers is gaining access to transmission lines. Even the most promising renewable energy project is rendered useless without a connection to the grid. The challenge is that many of the best sites for renewable energy are located far from existing transmission infrastructure. 

This distance increases costs and complicates securing the necessary permits and approvals. Developers must carefully assess proximity to transmission lines during site selection to avoid costly delays.

Local sentiment

Another critical factor is the sentiment of the local community. Even when a site meets all technical and regulatory requirements, opposition from local residents can halt progress. 

According to the report, 100% of survey respondents felt that understanding county sentiment would be valuable during site selection. Developers must gauge community sentiment early on and address concerns to prevent public opposition that could delay or cancel a project.

The impact of permits and regulations on project timelines

Regulatory hurdles are a significant source of frustration for renewable energy developers. According to the report, 86% of developers experienced project delays of three months or more due to permits or regulations. These delays can be costly in terms of both time and money.

Delays due to permitting

Permitting delays often arise from the complexity of the regulatory landscape. Developers must navigate multiple layers of regulations, including federal, state, and local requirements. Each layer presents challenges, from securing environmental permits to obtaining construction approvals. The time it takes to secure all necessary permits can significantly impact a project's timeline and budget.

Researching regulations

The report also found that 70% of developers rely on Google to research permitting and regulatory requirements. While internet search engines are valuable, they are not always reliable or comprehensive. Developers may miss critical information or misunderstand complex regulations, leading to costly mistakes. A more streamlined approach to researching and understanding regulations is needed to reduce the risk of delays.

Cost implications

Delays in securing permits and navigating regulations can have significant financial implications. The report highlights that the average cost of a Critical Issues Analysis or feasibility report is over $5,000. These costs can quickly add up, especially when delays extend project timelines. To avoid budget overruns, developers must consider these potential costs when planning their projects.

How renewable developers can overcome challenges

Transect plays a significant role by offering innovative solutions that streamline site selection and assessment processes. According to respondents, here are the top five ways Transect is helping them find the perfect site:

1. Site selection: Transect offers instant access to any location's comprehensive environmental, regulatory, and community data. This allows developers to quickly identify and focus on the most promising sites, saving time and resources.
2. Site assessment: Transect enables thorough site assessments by providing detailed analyses of environmental and regulatory factors, such as protected species, wetlands, and local regulations. This helps developers make informed decisions and avoid costly surprises.
3. Site comparison: Easily compare multiple sites by offering side-by-side data on environmental impacts, proximity to transmission lines, permitting requirements, and local sentiment. This ensures developers select the site that best meets their project goals.
4. Permitting: Permitting is often a major hurdle, but Transect simplifies this process by providing detailed information on local, state, and federal requirements. Developers can create clear roadmaps for securing permits, reducing the risk of delays.
5. Ownership: Transect provides comprehensive land ownership data, including property boundaries and restrictions, to help developers anticipate legal issues and confidently negotiate land deals.

Real-world success: How Ozone Renewables slashed project risks by up to 75% with Transect

Ozone Renewables faced significant challenges in their site selection and due diligence processes. Before using Transect, they struggled with resource-intensive methods, relying on multiple data sources and spending nearly $5,000 on Critical Issues Analyses (CIAs) that often needed field reviews. 

By adopting Transect, they transformed their approach—quickly screening 100 potential sites and cutting their prospecting time by 50%. This efficiency allowed them to reduce project risks by 50-75% and avoid the costly pitfalls of incomplete CIAs.

Discover and assess potential project sites in minutes

Transect empowers developers to discover and assess potential project sites in minutes, considering environmental, regulatory, and community factors. By automating much of the process, Transect saves time and significantly reduces costs, making it an invaluable tool in the development process.

The renewable energy sector is full of opportunities but also fraught with challenges. Developers must navigate a complex landscape of site selection, regulatory hurdles, and community opposition to bring their projects to life. By leveraging technology and innovative solutions, developers can streamline their processes, reduce costs, and increase the likelihood of success. As the industry grows, staying ahead of these challenges will be key to driving the transition to a clean energy future.

Top renewable energy developers trust Transect! Get a demo today to learn how we can help you discover and assess project sites in minutes.