COMBINING WIND AND SUN

GE banks on solar-wind link
Ros Davidson, 30 January 2012 (Windpower Monthly)

"General Electric is wooing its wind-turbine customers with thin-film solar panels made at GE's new solar assembly plant in Colorado…GE recently unveiled its first 'hybrid' sale of 23MW of solar panels to a US-based wind customer, Invenergy, for installation next to the latter's 210MW Grand Ridge wind project in Illinois."

[Vic Abate, vice president for renewables, GE:] "Putting wind and solar in an interconnected system can more effectively use the transmission system, and energy can be more easily dispatched…Wind tends to blow more at night and solar captures power during the day…Most wind farms have power lines [that are] used 40% of the time; [for] solar [it's] about 20%..."

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"Turbine manufacturers are facing plummeting sales in the US, and the wind industry faces expiration of eligibility for the federal Production Tax Credit on 31 December. Congress is discussing an extension to the ten-year subsidy.

"Solar projects can instead draw on the Investment Tax Credit, which does not expire until 2016. Solar panel costs have now dropped enough to justify GE's strategy of hybrid sales…[U]sing solar panels in wind farm locations was attractive because…the [developer already knows the] community, how to get the permits and secure interconnections to the grid…"

FARMERS FOR NEW ENERGY

USDA Invites Applications for Renewable Energy and Energy Efficiency Projects
January 20, 2012 (U.S. Department of Agriculture)

"…USDA is seeking applications to provide assistance to agricultural producers and rural small businesses to complete a variety of energy efficiency and renewable energy projects. Funding is available from USDA's Rural Energy for America Program (REAP) authorized by the Food, Conservtion, and Energy Act of 2008 (Farm Bill)…

"The Rural Energy for America Program (REAP) is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the Nation's critical energy needs. For 2012, USDA has approximately $25.4 million budget authority available to fund REAP activities, which will support at least $12.5 million in grant and approximately $48.5 million in guaranteed loan program level awards."

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"USDA is accepting…renewable energy system and energy efficiency improvement grant applications and combination gant and guaranteed loan applications until March 30, 2012…renewable energy system and energy efficiency improvement guaranteed loan only applications on a continuous basis up to June 29, 2012…renewable energy system feasibility study applications through March 30, 2012; and…energy audits and renewable energy development assistance applications through February 21, 2012…

"This funding is an example of the many ways that USDA is helping revitalize rural economies to create opportunities for growth and prosperity, support innovative technologies, identify new markets for agricultural producers, and better utilize our nation's natural resources…The Obama Administration is working to promote domestic production of renewable energy to create jobs, reduce our dependence on foreign oil, combat global warming, and build stronger rural economy…"

TRADING OLD COAL FOR EE

Avoiding a Train Wreck: Replacing Old Coal Plants with Energy Efficiency
August 22, 2011 (American Council for an Energy Efficient Economy)

"Changes in fossil fuel markets and updates to environmental regulations may result in the retirement of existing coal-fired electric power plants, putting on the order of 40,000 megawatts of generation at risk of retirement. This capacity is primarily located in the Ohio Valley, Upper Midwest, Mid-Atlantic, and Southeast. The investments required for replacing or upgrading these plants would raise electricity rates for all customers…Customer-side investments in energy efficiency and combined heat and power can replace this capacity at a lower cost, reducing customer rate impacts…"

EE is the best deal in energy. (click to enlarge)

"Energy efficiency investments by large energy consumers, particularly manufacturing firms, should be the target. Many manufacturing firms are poised to make major new capital capacity investments as the economy recovers and demand for manufactured products increases. These investments would modernize manufacturing, generating local job creation and enhanced environmental compliance for the facilities…Current utility regulatory and business models do not encourage utilities to make these customer-side investments. A new utility regulatory business model…[should allow utilities] to invest ratepayer funds in the demand-side projects and…earn a preferred return on these investments…"

CONGRESS ON VERGE OF KILLING WIND IN 2013

Iberdrola Suspending New US Wind Farms Without Tax Credit – Executive
January 25, 2012 (Dow Jones Newswire via Fox Business)

"… Spain's Iberdrola SA (IBDRY, IBE.MC) has suspended planning for new wind farms in the U.S... anticipating that Congress may not extend a popular tax credit for the industry…Rich Glick, vice president of government affairs for Iberdrola Renewables…[said] there would be ‘close to zero’ megawatts of wind power built in the U.S. in 2013 if the credit isn't extended soon…

"…[A] broader legislative deal to give payroll tax breaks to U.S. workers is being debated]. If the wind provision isn't included in that bill…to be voted on [by the end of February]… it might not be considered again until after the November elections…Wind farms that are producing electricity by the end of this year can claim the credit, and industry observers say 2012 could be a record year for wind installations as developers race to complete projects…"

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"But the wind industry is scaling back future plans now because it takes years to plan a project and they can't count on any future tax credits…Acciona Wind Power North America… said the company's turbine assembly facility in Iowa might be able to keep its workforce at about 125 without the credit by shipping the turbines to wind farms in Canada, Mexico, or elsewhere. But it could be ramping up production and hiring more people if the credit were still in place…

"The American Wind Energy Association and other trade groups support a bill that would extend the credit by four years. Senate Majority Leader Harry Reid (D., Nev.)…suggested it should be part of ongoing negotiations on the payroll tax…[but] Rep. Fred Upton (R., Mich.), said provisions to delay enforcement of Environmental Protection Agency rule on industrial boiler emissions and to expedite the approval of the cross-border Keystone XL oil pipeline from Canada should also be part of the deal. Many Senate Democrats oppose both…"

WHAT SOLAR POWER PLANTS NEED

SEIA, LSA Submit Recommendations For Solar Energy Development On Public Lands
31 January 2012 (Solar Industry)

"The Solar Energy Industries Association (SEIA) and the Large-scale Solar Association (LSA) say they have submitted comments on the supplemental draft programmatic environmental impact statement (PEIS) for solar energy development in Southwestern states… issued by the U.S. Department of the Interior's Bureau of Land Management (BLM)."

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"…[The] key principles…critical to the development of utility-scale solar power plants on public lands…[are]Flexibility for solar power plants to be responsibly developed outside of designated solar energy zones…Near-term identification of new solar energy zones suitable for project development…Coordination of transmission build-out in areas where solar energy development is occurring; and…Continued allotment of the resources and staff necessary for BLM staff to efficiently process pending project permit applications…"

BIG MONEY IN ZERO ENERGY

Revenue From Net Zero Energy Buildings to Reach $1.3 Trillion by 2035
January 31, 2012 (Pike Research)

"…[T]he goal of designing zero energy buildings, or buildings that consume as much energy as they produce through on-site and renewable energy systems, has emerged as the next major frontier. A number of countries and regions have already established long-term targets and regulations requiring zero energy building construction that will come into effect over the coming years, some as soon as 2016…

"…[S]tringent regulations will accelerate adoption around the world…According to a new report from Pike Research, worldwide revenue from zero energy buildings will grow rapidly over the next two decades, reaching almost $690 billion by 2020 and nearly $1.3 trillion by 2035. That represents a compound annual growth rate of 43%, with much of that growth occurring in the European Union…"

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"…[T]he European Union’s Energy Performance of Buildings Directive (EPBD), which governs EU building energy codes, will require nearly zero energy construction in public buildings by 2019 and in all new construction by 2021. The exact language of these new building codes is still being established, but it is clear they will drive significant investment in zero energy building technologies over the next few decades…

"…Similar regulations have come into effect or are being discussed in the United States and Japan. While the technologies required to make zero energy buildings possible, such as efficient lighting and HVAC systems, improved insulation, solar photovoltaic and other systems, can add significant upfront cost, advances in energy efficiency and renewable energy technologies will improve system performance and reduce costs…"

NEW PROOF OF CHINA’S SUN PRICE GAMING

SolarWorld: Import Surge Shows Tariff Evasion By Chinese Solar Producers
Jessica Lillian, 27 January 2012 (Solar Industry)

"SolarWorld and its partners in the Coalition for American Solar Manufacturing (CASM) have unearthed new PV module import data that, according to the coalition, proves that Chinese solar producers flooded the market with product at the end of 2011. The CASM believes this information warrants the application of retroactive duties on Chinese imports.

"SolarWorld filed its initial anti-dumping complaint and countervailing-duty petition last fall, claiming that low-priced crystalline silicon (c-Si) PV cells and modules from Chinese companies have violated international trade laws and harmed U.S.-based solar manufacturing…The International Trade Commission (ITC) made a preliminary determination last December that there is a ‘reasonable indication’ that Chinese manufacturers' practices are detrimental to the domestic solar industry…[The new CASM analysis] found that Chinese c-Si producers have more than doubled their imports into the U.S. since July 2011. This surge, the coalition says, constitutes ‘critical circumstances’ (as defined by the U.S. Department of Commerce) and justifies the implementation of tariffs on imports dating back to Nov. 15…[A decision on that is due] Feb. 15."

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"Suntech…increased its imports into the U.S. by 76% in November, compared to October…[D]ata from the Customs and Border Protection's Port Import Export Reporting Service (PIERS)…[shows] Trina Solar's imports surged 209% in the first half of last December…[O]verall, Chinese imports of solar cells and modules in 2011 increased 346% by quantity and 138% by value, year-over-year. Since 2008, imports from China have risen 939% by value and 1,664% by quantity.

"Whether the end-of-2011 ramp-up in imports is linked to the threat of potential duties, however, remains up for debate…Suntech…[said] the Dec. 31 expiration of the U.S. Department of Treasury's Section 1603 cash-grant program created a strong uptick in demand for the company's products in the U.S. Per the rules of the Section 1603 program, a solar developer needed to at least begin construction on a PV project by the end of 2011 in order to remain eligible for the incentive…Trina Solar similarly denied SolarWorld's claims…Analysts from Jefferies & Co. also attributed the spike in Chinese imports to normal seasonality trends and the end of the Section 1603 program…[President Obama has] indicated support of the complaint…"

CHINA’S VIEW ON TURBINE TOWER PRICE GAMING

China Voices 'Deep Concern' Over U.S. Wind Tower Probe; Investigation by U.S. Commerce Department will examine whether towers from China and Vietnam were subsidized and sold at less than fair value.
January 21, 2012 (AFP via Industry Week)

"China expressed ‘deep concern’…after the U.S. launched a probe into Chinese wind towers that it suspects of being unduly subsidized and sold at a loss on the American market…[saying it would] hamper bilateral cooperation in the field of new energy…harm the interests of U.S. industries…[and] go against global efforts to tackle the challenges of climate change and energy security…

"The U.S. Department of Commerce…[has] opened an inquiry on wind towers made in China and Vietnam…The petitioner for these investigations is the Wind Tower Trade Coalition, comprised of Broadwind Towers...DMI Industries...Katana Summit...and Trinity Structural Towers..."

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"…[China's Ministry of Commerce said if] hopes the U.S. side can respect relevant laws and facts, and abide by the commitment made at the G20 summit in Cannes that all countries should avoid introducing new trade protectionism…

"A wind tower is the structure that supports the engine and blades used to generate wind energy, and the tower captures that energy…If the probe reveals the towers have been sold at a loss, the U.S. could take out anti-dumping measures, conforming to the rules set down by the World Trade Organization…In 2010, imports of utility-scale wind towers from China and Vietnam were valued at an estimated $103.6 million and $51.9 million, respectively…"

BIG BUCKS IN SMART GRID SECURITY

Pike Pulse Report: Smart Grid Cyber Security Threat Management; Assessment of Strategy and Execution for 15 Leading Cyber Security Vendors

"Smart grid cyber security remains a nascent market…[with] established smart grid specialists, niche players, and well-known enterprise security vendors…[C]yber security is often considered a mature market…[but] smart grid cyber security…is not mature at all. The leaders that we identify in this analysis are well positioned for today’s market but some of the large corporations entering the scene can shape a market to their own

"…For the moment, size and scale appear to be somewhat of a disadvantage. Specialist companies have fared well. The ability to quickly react to the market has prevailed so far, but it is by no means certain that large size will remain a disadvantage in the future…"

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"Some trends in the smart grid industry may cause significant change during the coming twelve months. Chief among those, utilities are making it clear that they see the most meaningful ROI in distribution automation, not in smart metering. Smart grid vendors, and therefore security vendors as well, are beginning to hear and process that message. The Leaders in our ranking already have done that.

"This Pike Research report evaluates 15 of the leading cyber security threat management vendors in the smart grid market and rates them on 12 criteria for strategy and execution, including vision, go-to-market strategy, partnerships, product strategy and roadmap, technical innovation, geographic reach, market share, sales and marketing, product performance and features, product portfolio, control system focus, and staying power…"

ADVANCING WIND’S ABILITY

Gamesa Working With NREL On Wind Turbine R&D And Offshore Wind Technology
27 January 2012 (North American Windpower)

"Gamesa Technology Corp. Inc. and the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) are teaming up to study and test a variety of components and systems that will guide the develpment of the next generation of wind turbines designed specifically for the U.S. marketplace.

"Gamesa and NREL will collaborate on work in three key areas: developing new wind turbine components and rotors for the U.S. market; researching and testing the performance of new control strategies; and devising models that will help advance the development of offshore wind in U.S. coastal waters."

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"Using Gamesa's turbine platform as a laboratory, researchers will study the behavior of systems and how new designs, products or equipment can affect performance.

"Chief among the goals of this research-and-development (R&D) project is the design of new products specifically for the U.S. market, with a sharp focus on interior and exterior components, as well as the rotors themselves…In addition, Gamesa and NREL will work to develop new control strategies that improve energy capture while decreasing loads…"

INSTALLER COSTS NOW KEY TO SUN

Downstream Investments Now Supporting Photovoltaic Installer Innovation
27 Janauary 2012 (Solar Industry)

"With the solar energy industry maturing rapidly and expanding to newer markets, the focus of innovation and investment has shifted from panels to installations - the final critical step for monetization…[Start-ups raised over $1 billion, with SolarCity, SunRun, Recurrent Energy, SunEdison and Solar Power Partners leading the way]…

"A flurry of mergers and acquisitions activity and an influx of venture capital dollars to solar service providers have led to innovation concentrated on creating new, lean business models in an extremely fragmented downstream landscape…SolarCity dominates among residential installers…[C]ompanies are partnering with SunRun, adding muscle to SolarCity's biggest competitor. The Alteris-Real Goods Solar merger in December has added a stronger player to the market."

From solarcity100 via YouTube

"…Commercial- and utility-scale solar have few up-and-coming players. Tioga Energy and Enfinity lead the group of new large-scale developers. The acquisitions of Recurrent Energy, SunEdison and Solar Power Partners led to concentration of large-scale development in the hands of larger companies or vertically integrated suppliers First Solar and SunPower.

"New entrants keep popping up on the back of venture dollars…A burst of entrepreneurial activity, driven by venture capital, is ensuring a steady stream of high-potential start-ups. In 2011, six solar installers were among Inc. Magazine's top 50 fastest-growing companies in the U.S., including Greenspring Energy, re2g, SunDurance Energy, OnForce Solar and FLS Energy."

THE BUSINESS OF BUILDINGS' ENERGY

Breaking Down the BEMS Market
Jevan Fox, October 28, 2010 (Pike Research)

"…Building Energy Management Systems (BEMS)…[from] Pike Research highlights that buildings over 500,000 SF represent the low-hanging fruit in the BEMS industry…[But] vast potential markets of smaller 25,000 SF, 50,001-100,000 SF, and 100,001-200,000 SF represent…$16 billion, $15 billion, and $16 billion, respectively, of annual energy expenditures, or approximately $47 billion when compounded. That figure accounts for approximately 80% of the total annual energy expenditures of all the other building segmentations.

"…[T]hese segments are underserved by the BEMS market. Clearly, the 100,001 200,000 SF segment will provide the next potential market for BEMS players. It is already showing promise, as several BEMS vendors are focusing considerable attention on the segment. This is especially true of BEMS vendors providing a software-as-a-service (SaaS) model…"

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"Additionally, the more energy progressive states and the more active grid operators in those states will drive utilities to assists in metering smaller buildings. As more buildings receive incentives to install meters, the costs to implement a BEMS will drop in parallel.

"The DOE 2009 Buildings Energy Data Book states that the energy expenditure per SF 100,001-200,000 SF…is $1.57, representing an energy expense of $16,091,000,000 total for the segment. That is more than the total energy expense for any other segment, including 200,000-500,000 SF, 500,001 SF-1,000,000 SF, and greater than 1,000,000 SF. When looking to the smaller buildings (<100,000), the value proposition drops off precipitously, even though the total SF and energy expenditures per SF are high…"

OBAMA SOTU BACKS NEW ENERGY

State Of The Union Address Calls For Comprehensive Energy Approach
Jessica Lillian, 25 January 2012 (Solar Industry)

"Although President Barack Obama's Jan. 24 State of the Union address contained only a singular mention of solar energy, he reiterated his commitment to expanding clean energy project development in the U.S. and ending subsidies to fossil-fuel companies…

"In a follow-up proposal posted online by the White House, Obama specifically called for a temporary extension of the Advanced Energy Manufacturing Tax Credit as part of a broader manufacturing tax-reform proposal. This $5 billion investment would drive nearly $20 billion in domestic clean energy manufacturing, the White House said. The tax credit was previously oversubscribed more than three times over."

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"During his address, acknowledging that Congress' partisan divide may prevent broad action on climate change, the president nonetheless urged Congress to set a national clean energy standard. However, he made no mention of the 80% by 2035 clean energy standard that he introduced in last year's State of the Union.

"Much of Obama's energy-independence discussion centered on increased exploration of domestic oil and natural-gas resources, as he advocated for the ‘all of the above’ energy approach that has been frequently espoused by more-conservative policymakers. He noted that the same public-private partnerships used in the natural-gas sector may also be applicable to renewable energy investment…Global competitiveness in clean energy - and beyond - also requires an increased emphasis on ensuring fair trade policies, Obama said. To that end, a newly created Trade Enforcement unit will investigate cases of unfair trading practices…"

PRIVATE P.A.C.E.

Figtree Sells P.A.C.E. Multi-Jurisdictional Bond Placing California on the Leadubg Edge of Energy Efficiency Financing
January 18, 2012 (Figtree Energy Resource Company)

"Figtree Energy Resource Company…[issued] a $725,000 Property Assessed Clean Energy (PACE) bond that will fund energy-efficient and renewable-energy projects in four different California cities. This PACE bond is the first-of-its-kind in the nation; it represents a new source of money for property improvements and a dynamic job creation program for local communities. The issuance of a multi-jurisdiction bond places California on the leading edge of energy efficiency financing.

"Money raised by the bond will fund seven energy-efficient and renewable-energy projects in Fresno, Palm Springs, Clovis and Exeter, California."

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[Mahesh Shah, CEO, Figtree:] “PACE bond financing provides property owners fixed-rate, property value based and no credit check financing…The taxable municipal bond was sold to the capital markets without any state or federal funding assistance – a 100% private program…”

"Under Assembly Bill 811, California property owners in special assessment districts may enter into voluntary contractual assessments against their properties to finance energy and water efficiency products. The financed amount incurred by the property owner is repaid over time through annual property tax assessments with the charge appearing as a line item on the property tax bill…[The bill can both] lower greenhouse gas levels and reduce energy and water consumption…[and be] a stimulus program that spurs local economic growth and creates new jobs…"