Chinese-linked solar developer loses appeal over Texas grid interconnection

Utility Dive · Meris Lutz · 2026-10-29 09:21 UTC

The U.S. Court of Appeals for the 5th Circuit said Texas has a “free lane” to enforce restrictions on foreign-owned companies’ access to the state’s electric grid in a ruling that could have implications for other states and market participants.

Dive Brief:

- The U.S. Court of Appeals for the 5th Circuit said Texas has a “free lane” to enforce restrictions on foreign-owned companies’ access to the state’s electric grid in an Oct. 16 decision affirming a lower court’s dismissal of a complaint brought by a Chinese-linked solar developer.

- The developer, GH America Energy, a Texas LLC and subsidiary of a Chinese company, argued unsuccessfully that Texas state law was preempted by federal law designating the Committee on Foreign Investment in the United States as the federal interagency task force responsible for reviewing foreign-linked financial transactions.

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