Thursday, September 23, 2010

Native Energy

NativeOne, a renewable energy developer and member of the Mission Indians, has joined forces with the LeeChee Chapter of the Navajo Indians to build a solar power plant on Navajo land. This plan only highlights the trend to build alternative energy plants on Native American lands. Not only are these lands expansive (Navajo’s are big as West Virginia), but some are ideal for the alternative energy markets. Most of the land is in the west. This land used to be seen useless, for it has limited trees, water, and metals. But it does have an abundance of wind and sun, and it is located closely to the now highly populated southwestern part of the United States. Therefore, transmission lines will not be as expensive, and, oftentimes, they are already there. Native American’s, with their special status in the States, also have the ability make it much easier on investors to avoid regulations and other barriers. This is possibly the most appealing aspect to investors.

Now you might be wondering why the Indians would allow these companies to tarnish their land with these monstrous power plants. Predictably, the answer is money. The LeeChee will not charge for the land but will receive a cut of the revenue until NativeOne pays off its investment and receives tax credits. Then, it will hand the plant over to the LeChee, who will then have to operate and maintain the plant. Another reason for the massive amount of interest from Indians is the expansion of gambling. Governments are allowing for more casinos. Therefore, competition is created. Tribes fear a decline in casinos and also see jobs being made in the construction of these new power plants.

If this NativeOne’s vision does come to be a reality, it would set the precedent for many more green power plants to be built. Since Indians will be mutually benefiting off of other Indians this vision might not be so farfetched. It will be interesting to see if bigger players are able to enter. Given the lack of green power plants in the States, this niche market could change the game.

http://www.greentechmedia.com/articles/read/native-americans-a-new-player-in-renewables/

1 comment:

  1. Seeing that Alternative Energy is the future, I think that the LeeChee is very bright for partaking in the process. They will not only be benefitting their neighbors, but they will also be expanding their profits. I think that this will bring in a lot more money to their reservation. Also, it is important to have a variety of assets so if one fails at least you have another one to fall back on. I am happy that the LeeChee realized this and will be taking on new projects instead of just relying on casinos.

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