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There still isn’t a contract signed for the Laurel Branch Solar project. Lunenburg County officials say that’s because of a specific clause Dominion Energy wants to include in the plans moving forward. 

For those who need a refresher, this project is an 80-megawatt one located southwest of Kenbridge, primarily between Plank Road and Sneads Store Road and along Oral Oaks Road. The site is currently used for timbering and agriculture. The project would power up to 20,000 homes at peak output and could begin construction as early as spring 2026 if permitted. This project also includes a “switchyard,” which would serve to transfer generated power to the grid. Construction is set to finish and the project is expected to go active by early 2028.

So why isn’t the project permitted yet? Why has something that started in March 2022 still not been completed? It’s because of the indemnity clause Dominion wants. In contract law, indemnity is a contractual obligation to compensate a loss incurred by another party. That can be over something that has already taken place or setting up protection in case of something that might happen in the future. Basically Dominion wants to shift certain legal and financial risks of loss or damage over Laurel Branch Solar from the energy provider to Lunenburg. These kinds of “hold harmless” provisions can vary in broadness and are common in business contracts, but they can also be a sticking point for the stakeholders involved, resulting in additional discussions and negotiations. 

Still working on Laurel Branch Solar contract

Discussions over this have been going on for more than six months now and county officials expect them to continue. 

“The issues are being discussed among the legal and administrative staff of the County and Dominion Energy,” said Lunenburg County Administrator Tracy Gee. “We continue to work through the condition in question and perform due diligence to avoid potential liability for the citizens of Lunenburg.”

The stated goal for solar energy facilities like Laurel Branch Solar and other projects the Commonwealth and utility companies are working on in Lunenburg and throughout Virginia is to improve environmental conditions and create more tax revenue for counties and more jobs and economic opportunities for impacted communities.

The Dispatch has reached out to Dominion officials over the last week and still haven’t heard back from them, to get an explanation as to what the indemnity clause is for.