www.upi.com
1 Nov 2013
ABU DHABI, United Arab Emirates, Nov. 1 (UPI) -- Saudi Arabia and the United Arab Emirates, two of the world's leading oil producers, are spearheading a Middle Eastern drive to develop solar power, with plans for projects requiring $1.5 billion in investment by the end of 2014.
The program, designed to free up for export increasing amounts of oil and gas being used domestically for power generation, got a major endorsement from the Arab Forum for Environment and Development Monday.
It urged Arab states to re-evaluate their relationship with oil, the economic mainstay of the Arab world since the 1950s, and phase out state energy subsidies to focus investment in developing renewable energy. "Oil and gas are important, they will continue to be important," said Najib Saab, the forum's secretary-general. "We call for more careful use of oil and gas and for more serious development of renewable energy."
Saudi Arabia, the world's top oil exporter with declared reserves of 267 billion barrels, and the neighboring Emirates, a federation of seven gulf sheikdoms with reserves of 98 billion barrels, seek to add 1,000 MWs of solar capacity over the next few years to meet fast-growing industrial and social demand. That's enough to provide electricity for 200,000 homes.
While the producers want to conserve more of their oil output for exports, particularly with prices above $100 a barrel, Arab countries that rely on imported fuel see carbon-free power as a cheaper alternative.
From Morocco on the Atlantic Ocean eastward to the gulf sultanate of Oman on the Indian Ocean, governments are turning to alternative energy, driven primarily by a lack of gas for power generation, the fall in the cost of renewable technologies and their constantly improving efficiency.
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Showing posts with label Subsidy. Show all posts
Showing posts with label Subsidy. Show all posts
Thursday, 12 December 2013
Friday, 18 October 2013
Italian energy firm to accelerate wind investment
www.businessspectator.com.au
15 Oct 2013
Italian energy group ERG plans to invest in wind power in Brazil and Europe, accelerating its expansion in the sector after its recent decision to exit the refining sector.
ERG, over 60% controlled by Italy's Garrone family, completed the acquisition of wind power assets from France's GDF Suez this year to become Italy's largest wind power player and one of the top ten in Europe.
Presenting the group's strategy in Vienna on Saturday, ERG chief executive Luca Bettone said ERG planned to invest in countries and areas which had strong wind conditions and were less dependent on government subsidies, such as South America.
"This company must look to growth and, since we are now the biggest wind player in Italy, must try to move outside our national borders", Bettone said in comments that were embargoed until Monday. "There are opportunities in this country (Brazil) and we think we'll enter the market with acquisitions".
ERG has transformed itself in recent years into a renewable energy company in order to counter declining profits at its refinery business. Last week it struck a deal to sell its remaining stake in the ISAB oil refinery in Sicily to Russia's Lukoil for around 400 million euros-a sale Bettone said would yield no special dividend from the proceeds.
ERG, which is now targeting a 20% rise in core earnings next year to around 600 million euros ($813.75 million), intends to invest some 500 million euros to 2015 to focus on renewable energy.
In Europe, Bettone said, the company aimed to enter the Spanish market while strengthening its position in Bulgaria and Romania where it has wind power assets. He also confirmed that TotalErg-the joint venture between ERG and France's Total-was interested in the Italian petrol distribution network that Shell is selling. TotalErg has a market share in Italy of 12% which would rise to 18% with the Shell network.
15 Oct 2013
Italian energy group ERG plans to invest in wind power in Brazil and Europe, accelerating its expansion in the sector after its recent decision to exit the refining sector.
ERG, over 60% controlled by Italy's Garrone family, completed the acquisition of wind power assets from France's GDF Suez this year to become Italy's largest wind power player and one of the top ten in Europe.
Presenting the group's strategy in Vienna on Saturday, ERG chief executive Luca Bettone said ERG planned to invest in countries and areas which had strong wind conditions and were less dependent on government subsidies, such as South America.
"This company must look to growth and, since we are now the biggest wind player in Italy, must try to move outside our national borders", Bettone said in comments that were embargoed until Monday. "There are opportunities in this country (Brazil) and we think we'll enter the market with acquisitions".
ERG has transformed itself in recent years into a renewable energy company in order to counter declining profits at its refinery business. Last week it struck a deal to sell its remaining stake in the ISAB oil refinery in Sicily to Russia's Lukoil for around 400 million euros-a sale Bettone said would yield no special dividend from the proceeds.
ERG, which is now targeting a 20% rise in core earnings next year to around 600 million euros ($813.75 million), intends to invest some 500 million euros to 2015 to focus on renewable energy.
In Europe, Bettone said, the company aimed to enter the Spanish market while strengthening its position in Bulgaria and Romania where it has wind power assets. He also confirmed that TotalErg-the joint venture between ERG and France's Total-was interested in the Italian petrol distribution network that Shell is selling. TotalErg has a market share in Italy of 12% which would rise to 18% with the Shell network.
Thursday, 12 September 2013
Asia to lead quadrupling of wind energy by 2030: Siemens
www.theage.com.au
27 Aug 2013
Siemens, the world's No.3 maker of wind turbines, expects the global wind power market to more than quadruple by 2030, lifted by strong growth in Asia. "The market will shift away from Europe significantly", Markus Tacke, chief executive of the German company's Wind Power division, said at a renewable energy conference in Berlin.
He said globally installed wind power capacity would increase to 1,107 GW (GW) in 2030 from 273 GW in 2012, with Asia and the Pacific region accounting for more than 47% of the total, up from 34% now.
China is pumping billions of euros into wind power, which is more cost-competitive than solar power and partly able to compete with coal and gas. Wind power subsidies in most parts of Europe are being slowly scaled back. The Europe and the Middle East (EMEA) region is still the world's largest wind market, with a 40% share that will decline to 34% by 2030.
Siemens Wind Power, part of the group's Energy division, achieved sales of 3.555 billion euros ($A5.3 billion) in the first nine months of Siemens' fiscal year, down 1% year on year. It accounted for 6.4% of the company's total sales. Its profit margin for the period stood at 3.6%, down from 4.7% a year earlier, as the company was forced to book charges because of problems relating to some of its wind turbine rotor blades.
27 Aug 2013
Siemens, the world's No.3 maker of wind turbines, expects the global wind power market to more than quadruple by 2030, lifted by strong growth in Asia. "The market will shift away from Europe significantly", Markus Tacke, chief executive of the German company's Wind Power division, said at a renewable energy conference in Berlin.
He said globally installed wind power capacity would increase to 1,107 GW (GW) in 2030 from 273 GW in 2012, with Asia and the Pacific region accounting for more than 47% of the total, up from 34% now.
China is pumping billions of euros into wind power, which is more cost-competitive than solar power and partly able to compete with coal and gas. Wind power subsidies in most parts of Europe are being slowly scaled back. The Europe and the Middle East (EMEA) region is still the world's largest wind market, with a 40% share that will decline to 34% by 2030.
Siemens Wind Power, part of the group's Energy division, achieved sales of 3.555 billion euros ($A5.3 billion) in the first nine months of Siemens' fiscal year, down 1% year on year. It accounted for 6.4% of the company's total sales. Its profit margin for the period stood at 3.6%, down from 4.7% a year earlier, as the company was forced to book charges because of problems relating to some of its wind turbine rotor blades.
Friday, 23 August 2013
Renewable energy use gaining worldwide:IEA
www.heraldsun.com.au
27 Jun 2013
RENEWABLES like solar and wind power represent the fastest-growing source of energy generation and will make up a quarter of the global power mix by 2018, the International Energy Agency IEA says. The IEA said that in 2016 renewable energy will overtake natural gas as a power source and will be twice that of nuclear, and second only to coal as a source of power.
The growth of renewables has been bolstered by increased competitiveness with conventional energy. It is "a bright spot in an otherwise bleak assessment of global progress towards a cleaner and more diversified energy mix", said IEA Executive Director Maria van der Hoeven. The report listed Australia as one of several countries where renewable energy was becoming more competitive.
It said Australian wind generation is cost-effective next to new coal and gas-fired plants with carbon pricing. It also noted the success of onshore wind turbines in Brazil and South Africa. Renewable energy is growing especially fast in China and other developing and emerging countries. The IEA said non-hydroelectric renewable power, mainly wind and solar photovoltaics, is projected to grow from 4% of all power generation in 2011 to 8% in 2018.
"As their costs continue to fall, renewable power sources are increasingly standing on their own merits versus new fossil fuel generation", said van der Hoeven. "This is good news for a global energy system that needs to become cleaner and more diversified, but it should not be an excuse for government complacency, especially among OECD countries".
Still, the IEA, an institute backed by major energy consuming countries, cautioned that the continued growth of alternatives to oil, gas and coal faces some important challenges.
These include uncertainty about long-term government policies that discourages investment, reduced subsidies in some countries because of economic problems, and tough competition from other energy sources, such as the US, where a boom in shale gas has made that fuel more competitive. The report comes on the heels of recent research suggesting the threat of climate change is greater than earlier estimates.
An IEA report released earlier this month warned the world is on track to surpass by more than double the two-degree Celsius warming goal set by the United Nations, unless urgent measures are taken. The IEA's recommendations include curtailing coal-fired power stations and phasing out fossil fuel subsidies.
27 Jun 2013
RENEWABLES like solar and wind power represent the fastest-growing source of energy generation and will make up a quarter of the global power mix by 2018, the International Energy Agency IEA says. The IEA said that in 2016 renewable energy will overtake natural gas as a power source and will be twice that of nuclear, and second only to coal as a source of power.
The growth of renewables has been bolstered by increased competitiveness with conventional energy. It is "a bright spot in an otherwise bleak assessment of global progress towards a cleaner and more diversified energy mix", said IEA Executive Director Maria van der Hoeven. The report listed Australia as one of several countries where renewable energy was becoming more competitive.
It said Australian wind generation is cost-effective next to new coal and gas-fired plants with carbon pricing. It also noted the success of onshore wind turbines in Brazil and South Africa. Renewable energy is growing especially fast in China and other developing and emerging countries. The IEA said non-hydroelectric renewable power, mainly wind and solar photovoltaics, is projected to grow from 4% of all power generation in 2011 to 8% in 2018.
"As their costs continue to fall, renewable power sources are increasingly standing on their own merits versus new fossil fuel generation", said van der Hoeven. "This is good news for a global energy system that needs to become cleaner and more diversified, but it should not be an excuse for government complacency, especially among OECD countries".
Still, the IEA, an institute backed by major energy consuming countries, cautioned that the continued growth of alternatives to oil, gas and coal faces some important challenges.
These include uncertainty about long-term government policies that discourages investment, reduced subsidies in some countries because of economic problems, and tough competition from other energy sources, such as the US, where a boom in shale gas has made that fuel more competitive. The report comes on the heels of recent research suggesting the threat of climate change is greater than earlier estimates.
An IEA report released earlier this month warned the world is on track to surpass by more than double the two-degree Celsius warming goal set by the United Nations, unless urgent measures are taken. The IEA's recommendations include curtailing coal-fired power stations and phasing out fossil fuel subsidies.
Friday, 26 July 2013
U.K. to share more wind-power wealth with local residents
www.bloomberg.com
6 Jun 2013
The U.K, will give residents more say over onshore wind farms and higher payments to communities affected by them, an effort to heal a rift over the technology that's divided lawmakers and sparked local resistance.
wind farm developers must pay 5,000 pounds ($7,721) a MW each year to communities that host projects, a five-fold increase from the current rate, the Department of Climate Change and Energy Efficiency said in a statement today.
Prime Minister David Cameron's administration is seeking to balance a need to boost renewable energy and meet climate goals with the wishes of voters who are concerned about noise and visibility of turbines. About 100 lawmakers in Cameron's Conservative Party last year called for subsidy cuts for the machines, saying they're a blight on the landscape.
"It is important that onshore wind is developed in a way that is truly sustainable--economically, environmentally and socially", Energy Secretary Ed Davey said. "Today's announcement will ensure that communities see the windfall from hosting developments near to them, not just the wind farm".
New planning guidance will require that communities are consulted earlier on applications and that more weight is given to concerns about the impact on the landscape. For significant projects, such consultation will be compulsory before applications are lodged. Housing and Local Government Minister Mark Prisk said today in Parliament "significant" would depend on turbine height, size and density of plants and wouldn't include a small turbine in a backyard.
Read more
6 Jun 2013
The U.K, will give residents more say over onshore wind farms and higher payments to communities affected by them, an effort to heal a rift over the technology that's divided lawmakers and sparked local resistance.
wind farm developers must pay 5,000 pounds ($7,721) a MW each year to communities that host projects, a five-fold increase from the current rate, the Department of Climate Change and Energy Efficiency said in a statement today.
Prime Minister David Cameron's administration is seeking to balance a need to boost renewable energy and meet climate goals with the wishes of voters who are concerned about noise and visibility of turbines. About 100 lawmakers in Cameron's Conservative Party last year called for subsidy cuts for the machines, saying they're a blight on the landscape.
"It is important that onshore wind is developed in a way that is truly sustainable--economically, environmentally and socially", Energy Secretary Ed Davey said. "Today's announcement will ensure that communities see the windfall from hosting developments near to them, not just the wind farm".
New planning guidance will require that communities are consulted earlier on applications and that more weight is given to concerns about the impact on the landscape. For significant projects, such consultation will be compulsory before applications are lodged. Housing and Local Government Minister Mark Prisk said today in Parliament "significant" would depend on turbine height, size and density of plants and wouldn't include a small turbine in a backyard.
Read more
Wednesday, 26 June 2013
Samsung tests giant turbine off Scotland
www.smh.com.au
8 May 2013
Scotland approved construction of a 7 MW wind turbine by Samsung Heavy Industries, allowing the South Korean manufacturer to test different offshore models at a site north of Edinburgh.
Samsung Heavy will get 6 million pounds ($9.2 million) in funds for the project at Fife Energy Park in Methil, Scotland's government said today in a statement to coincide with a visit by Finance Secretary John Swinney to the Seoul-based company. "Today's announcement marks a significant step forward in establishing a globally competitive supply chain for the offshore wind industry", Swinney said in the statement.
Scotland has a target to install 10,000 MWs of offshore wind power to cut emissions from electricity output by more than four-fifths to 50 grams of CO₂ a kW-hour in 2030. It's aiming to meet all its power needs from renewables by 2020, and export any surplus to England.
Incentives to expand clean-energy in the UK, the world's largest offshore wind market, have attracted companies including Spain's Gamesa Corp. Tecnologica SA and Paris-based Areva SA to Scotland. The British government has pledged to triple renewable-energy subsidies to 7.6 billion pounds by 2020.
The permit granted today allows Samsung Heavy to construct a single three-bladed turbine as high as 196 meters tall, as well as offshore cabling and a bridge to the turbine tower, according to the statement. The company can have one turbine at the site at any one time, and operate the machine for as many as five years.
8 May 2013
Scotland approved construction of a 7 MW wind turbine by Samsung Heavy Industries, allowing the South Korean manufacturer to test different offshore models at a site north of Edinburgh.
Samsung Heavy will get 6 million pounds ($9.2 million) in funds for the project at Fife Energy Park in Methil, Scotland's government said today in a statement to coincide with a visit by Finance Secretary John Swinney to the Seoul-based company. "Today's announcement marks a significant step forward in establishing a globally competitive supply chain for the offshore wind industry", Swinney said in the statement.
Scotland has a target to install 10,000 MWs of offshore wind power to cut emissions from electricity output by more than four-fifths to 50 grams of CO₂ a kW-hour in 2030. It's aiming to meet all its power needs from renewables by 2020, and export any surplus to England.
Incentives to expand clean-energy in the UK, the world's largest offshore wind market, have attracted companies including Spain's Gamesa Corp. Tecnologica SA and Paris-based Areva SA to Scotland. The British government has pledged to triple renewable-energy subsidies to 7.6 billion pounds by 2020.
The permit granted today allows Samsung Heavy to construct a single three-bladed turbine as high as 196 meters tall, as well as offshore cabling and a bridge to the turbine tower, according to the statement. The company can have one turbine at the site at any one time, and operate the machine for as many as five years.
EU will proceed with duties on Chinese solar panels
www.businessspectator.com.au
6 May 2013
The EU's trade chief will recommend placing punitive import duties on billions of euros of solar panels from China, people close to the matter say, putting up a barrier to protect European producers but risking upsetting Beijing. The case, the biggest the Commission has ever targeted, highlights the balancing act facing Brussels as Europe tries to protect against cheap imports while needing China, the EU's second largest trading partner, to help it emerge from recession.
Trade Commissioner Karel De Gucht is expected to tell his fellow EU commissioners on Wednesday that Brussels should levy the tariffs to guard against Chinese production that quadrupled between 2009 and 2011 to more than the entire global demand. "De Gucht is ready to go ahead", said one person close to the decision-making. "The Commission has a very solid case".
Following Wednesday's meeting in Brussels, De Gucht will then propose the measures at a meeting of trade specialists from all EU countries, who are expected to back them, diplomats say, allowing the provisional levies to come into force by June 6. However, the decision to levy duties would still leave the door open for a negotiated solution with Beijing before December and avoid levies that could be imposed for up to five years.
The United States levied its own duties on Chinese solar power products last year, arguing that China's rapid expansion into the industry has created a massive oversupply. Germany, the United States and China are the world's biggest solar markets and companies are in a race to win contracts as countries seek to limit pollution and global warming.
The initial EU duties on Chinese solar panels are likely to be set at 30% and above, which would make Chinese exports far less attractive in Europe, said one person involved. The European Commission declined to comment. China, which had barely any solar production capacity a decade ago, exported more than 21 billion euros ($27.45 billion) in panels to the European Union in 2011.
European solar panel manufacturers, led by Germany's Solar World, accuse Chinese counterparts of dumping panels and related components on the EU market and seeking to put European peers out of business to corner the market.
German support
SolarWorld, once Germany's biggest solar group, partly blames Chinese overcapacity for its problems, including €900 million ($A1.15 billion) in liabilities, while its smaller rival Q-Cells filed for insolvency last year. "Germany has thrown all its weight behind this case", said another person close to the case. "Germany does not usually do so in trade defence measures, but this is an important industry under attack".
Germany is Europe's largest exporter to China, and Chancellor Angela Merkel has made numerous trips to Beijing, last year striking a conciliatory tone by saying Europe has no interest in starting a trade war over solar panels.
French President Francois Hollande also flew to Beijing last month for a visit to try to increase France's exports. Europe's stance on solar power is complicated by the fact that some in the EU solar sector, notably importers and installers, support cheap panel imports from China They say EU tariffs would be damaging for efforts to develop clean energy, and who fear retaliation by Beijing.
In April, trade groups representing users of solar panels in six EU member states sent an open letter to De Gucht urging him not to seek duties, saying the prospect of duties on Chinese solar panels had already resulted in cancelled orders.
But EU producers from a range of sectors want protection against Chinese imports, and the European Commission, which handles trade issues for the EU's 27 members is investigating 30 dumping and subsidy cases, 19 of them involving China.
6 May 2013
The EU's trade chief will recommend placing punitive import duties on billions of euros of solar panels from China, people close to the matter say, putting up a barrier to protect European producers but risking upsetting Beijing. The case, the biggest the Commission has ever targeted, highlights the balancing act facing Brussels as Europe tries to protect against cheap imports while needing China, the EU's second largest trading partner, to help it emerge from recession.
Trade Commissioner Karel De Gucht is expected to tell his fellow EU commissioners on Wednesday that Brussels should levy the tariffs to guard against Chinese production that quadrupled between 2009 and 2011 to more than the entire global demand. "De Gucht is ready to go ahead", said one person close to the decision-making. "The Commission has a very solid case".
Following Wednesday's meeting in Brussels, De Gucht will then propose the measures at a meeting of trade specialists from all EU countries, who are expected to back them, diplomats say, allowing the provisional levies to come into force by June 6. However, the decision to levy duties would still leave the door open for a negotiated solution with Beijing before December and avoid levies that could be imposed for up to five years.
The United States levied its own duties on Chinese solar power products last year, arguing that China's rapid expansion into the industry has created a massive oversupply. Germany, the United States and China are the world's biggest solar markets and companies are in a race to win contracts as countries seek to limit pollution and global warming.
The initial EU duties on Chinese solar panels are likely to be set at 30% and above, which would make Chinese exports far less attractive in Europe, said one person involved. The European Commission declined to comment. China, which had barely any solar production capacity a decade ago, exported more than 21 billion euros ($27.45 billion) in panels to the European Union in 2011.
European solar panel manufacturers, led by Germany's Solar World, accuse Chinese counterparts of dumping panels and related components on the EU market and seeking to put European peers out of business to corner the market.
German support
SolarWorld, once Germany's biggest solar group, partly blames Chinese overcapacity for its problems, including €900 million ($A1.15 billion) in liabilities, while its smaller rival Q-Cells filed for insolvency last year. "Germany has thrown all its weight behind this case", said another person close to the case. "Germany does not usually do so in trade defence measures, but this is an important industry under attack".
Germany is Europe's largest exporter to China, and Chancellor Angela Merkel has made numerous trips to Beijing, last year striking a conciliatory tone by saying Europe has no interest in starting a trade war over solar panels.
French President Francois Hollande also flew to Beijing last month for a visit to try to increase France's exports. Europe's stance on solar power is complicated by the fact that some in the EU solar sector, notably importers and installers, support cheap panel imports from China They say EU tariffs would be damaging for efforts to develop clean energy, and who fear retaliation by Beijing.
In April, trade groups representing users of solar panels in six EU member states sent an open letter to De Gucht urging him not to seek duties, saying the prospect of duties on Chinese solar panels had already resulted in cancelled orders.
But EU producers from a range of sectors want protection against Chinese imports, and the European Commission, which handles trade issues for the EU's 27 members is investigating 30 dumping and subsidy cases, 19 of them involving China.
Meridian alters buyback rates for solar customers
www.stuff.co.nz
5 Apr 2013
Meridian Energy says it will start promoting solar power generation now that it has changed its buyback rates. The company has ended its one-for-one pricing for its solar customers with grid-connected systems, which had allowed them to buy and sell the energy at the same rate. Meridian Energy said it was making a substantial loss from doing so, and this month moved to a two-stage pricing system. Its buyback energy rate for customers is now 25¢ a unit-a kW hour-for the first five units exported each day, and 10¢ a unit after that.
"We are committed to supporting solar, and now that we are no longer making a substantial loss from doing so, we will be able to start promoting it", said Bill Highet, the company's general manager retail. An increasing number of consumers are investing in grid-connected photovoltaic (PV) solar panel systems as the cost has reduced and the price of power had increased. The Nelson City Council is planning to hold a workshop of interested parties to discuss whether they could collaborate on solar initiatives.
Meridian Energy had about 750 solar customers, and that number was increasing by about two customers per day, Mr Highet said. "We understand that our pricing for those customers remains the most attractive available". He said Meridian Energy's analysis showed that most customers with on-site renewable generation would not see a significant difference in their power bills with the staged pricing, because their real savings were made by reducing the amount of electricity they bought from the company.
However, if they had installed major solar systems, the economics of their installation would be affected, as the 10¢ rate to buy back units in excess of five a day was more reflective of the wholesale rate that Meridian Energy paid when the sun was shining. "On cold days when the sun is not shining, the wholesale rate is much higher than 10¢ and regularly much higher than 25¢ but, unfortunately, solar panels are not much help to the customers or us at those times".
The change came into effect on April 8. Mr Highet said it had been explained to existing and prospective solar customers who had contacted Meridian Energy. "But regrettably, we do not know all of the contractors and solar suppliers who may have led customers to believe that our old one-for-one pricing would continue". TrustPower rubbished suggestions that energy retailers should be required to pay one-for-one rates.
Its community relations manager, Graeme Purches, said local network and transmission charges came in two parts-a fixed component, which formed part of the daily charge on a bill, and a variable component, which formed part of the unit charge. In some regions there are also capacity and congestion charges.
"So if a retailer was to pay back home generators the same unit price as they charged for power, they would effectively be paying the local network company for the variable line charge and paying the same charge to the consumer as well.
"While some may argue that because they have solar, they don't use the lines as much and therefore should pay less, that is reflected in the lower number of units they consume due to their solar offsetting some of their consumption, and if they are exporting, they still need to use the lines to get the power out anyway-so little has changed", Mr Purches said. This was why Meridian Energy had reduced its buyback, and TrustPower believed that its current rate was too high, he said.
TrustPower, which pays an average 7¢ a unit, has fewer than 10 solar PV customers. Mr Purches said the company was not in the business of subsidising home generators, and it could buy power cheaper off the ASX or on the spot market than it could paying the prices some competitors had been paying to solar PV customers. If there were to be subsidies, they needed to come from government sources, he said.
Such schemes had fallen over, as in South Australia, where the projected benefits of government subsidies for solar were not being realised, Mr Purches said. However, TrustPower had a massive test system operating now to develop technology to get a better capacity factor from solar PV, he said. This would ensure that the company was in the best position to take advantage of the technology when eventually it became financially viable without subsidies.
"When it is viable, there is a real advantage for consumers and the payback period is reasonable, we expect to be a major player in the market". Contact Energy has for the past five years kept the same 17.28¢ a unit rate for excess energy generated. It said that while it was interested in monitoring developments in the solar area, it was not a key area of focus. "We have seen a small rise in the number of residential and SME solar customers over the past year, but our solar customer base remains modest".
5 Apr 2013
Meridian Energy says it will start promoting solar power generation now that it has changed its buyback rates. The company has ended its one-for-one pricing for its solar customers with grid-connected systems, which had allowed them to buy and sell the energy at the same rate. Meridian Energy said it was making a substantial loss from doing so, and this month moved to a two-stage pricing system. Its buyback energy rate for customers is now 25¢ a unit-a kW hour-for the first five units exported each day, and 10¢ a unit after that.
"We are committed to supporting solar, and now that we are no longer making a substantial loss from doing so, we will be able to start promoting it", said Bill Highet, the company's general manager retail. An increasing number of consumers are investing in grid-connected photovoltaic (PV) solar panel systems as the cost has reduced and the price of power had increased. The Nelson City Council is planning to hold a workshop of interested parties to discuss whether they could collaborate on solar initiatives.
Meridian Energy had about 750 solar customers, and that number was increasing by about two customers per day, Mr Highet said. "We understand that our pricing for those customers remains the most attractive available". He said Meridian Energy's analysis showed that most customers with on-site renewable generation would not see a significant difference in their power bills with the staged pricing, because their real savings were made by reducing the amount of electricity they bought from the company.
However, if they had installed major solar systems, the economics of their installation would be affected, as the 10¢ rate to buy back units in excess of five a day was more reflective of the wholesale rate that Meridian Energy paid when the sun was shining. "On cold days when the sun is not shining, the wholesale rate is much higher than 10¢ and regularly much higher than 25¢ but, unfortunately, solar panels are not much help to the customers or us at those times".
The change came into effect on April 8. Mr Highet said it had been explained to existing and prospective solar customers who had contacted Meridian Energy. "But regrettably, we do not know all of the contractors and solar suppliers who may have led customers to believe that our old one-for-one pricing would continue". TrustPower rubbished suggestions that energy retailers should be required to pay one-for-one rates.
Its community relations manager, Graeme Purches, said local network and transmission charges came in two parts-a fixed component, which formed part of the daily charge on a bill, and a variable component, which formed part of the unit charge. In some regions there are also capacity and congestion charges.
"So if a retailer was to pay back home generators the same unit price as they charged for power, they would effectively be paying the local network company for the variable line charge and paying the same charge to the consumer as well.
"While some may argue that because they have solar, they don't use the lines as much and therefore should pay less, that is reflected in the lower number of units they consume due to their solar offsetting some of their consumption, and if they are exporting, they still need to use the lines to get the power out anyway-so little has changed", Mr Purches said. This was why Meridian Energy had reduced its buyback, and TrustPower believed that its current rate was too high, he said.
TrustPower, which pays an average 7¢ a unit, has fewer than 10 solar PV customers. Mr Purches said the company was not in the business of subsidising home generators, and it could buy power cheaper off the ASX or on the spot market than it could paying the prices some competitors had been paying to solar PV customers. If there were to be subsidies, they needed to come from government sources, he said.
Such schemes had fallen over, as in South Australia, where the projected benefits of government subsidies for solar were not being realised, Mr Purches said. However, TrustPower had a massive test system operating now to develop technology to get a better capacity factor from solar PV, he said. This would ensure that the company was in the best position to take advantage of the technology when eventually it became financially viable without subsidies.
"When it is viable, there is a real advantage for consumers and the payback period is reasonable, we expect to be a major player in the market". Contact Energy has for the past five years kept the same 17.28¢ a unit rate for excess energy generated. It said that while it was interested in monitoring developments in the solar area, it was not a key area of focus. "We have seen a small rise in the number of residential and SME solar customers over the past year, but our solar customer base remains modest".
Wednesday, 12 June 2013
EDF Energy to cut jobs to control cost of building nuclear power station
www.guardian.co.uk
23 Apr 2013
EDF Energy energy is cutting scores of jobs to control costs at the site of its proposed new nuclear power station at Hinkley Point in Somerset. The company is in the middle of difficult negotiations with ministers over the level of public subsidy the new reactors will receive over the next 40 years but insisted the project is not being mothballed and that it is not "holding a gun to the government's head".
The company has already spent £800m on developing the £14bn project and lost its junior partner when Centrica pulled out in February. "As part of good project management, and to control costs, EDF Energy has taken steps to refocus its activities at its Hinkley Point C project", said a spokeswoman. "This reflects its priorities ahead of securing the financing necessary for the project".
EDF Energy refused to give the number of workers losing their jobs, citing ongoing consultations with staff and unions, but the Guardian understands it will be about 150 of the current 800 strong workforce. The company said further pre-construction planning work would continue but that preparation of the site had halted.
EDF Energy wants to build two new reactors at Hinkley. It says they would provide reliable and low-carbon electricity making up 7% of the UK's demand and provide 25,000 job opportunities during construction, with 900 long-term posts. The UK government has placed new nuclear reactors at the heart of its energy policy, to replace the ageing fleet of nuclear and coal plants which are being phased out.
But the two sides have been unable to agree on the subsidy the plant would receive, paid for by consumers through their energy bills. EDF Energy had originally said it would make its final investment decision by the end of 2012. Both sides have a great deal to lose, but as the negotiations have dragged on observers have suggested the likelihood of the government abandoning plans for a series of new nuclear plants.
"It is proving extremely difficult to get that first nuclear power plant built and there is an increasing feeling in industry that at £14bn a throw there is no chance of getting beyond one", said Lord Robin Teverson, the LibDem spokesman on energy in the House of Lords.
A spokesman for the department of energy and climate change said: "Progress is being made in our discussions with EDF Energy. Both sides have an interest in reaching a positive agreement".
EDF Energy and the government face a number of major obstacles in delivering new reactors even beyond the challenging financing. The project has yet to be approved by the European Union, which limits the state aid that can be given to industrial projects. The UK also has no site for the long term disposal of nuclear waste, after the rejection of a proposal in Cumbria by local councils. Such a facility was considered a prerequisite for the building of new reactors by David Cameron before the 2010 election.
The EDF Energy spokeswoman said: "The case for new nuclear in the UK remains as strong as ever". She said Ed Davey, the energy secretary had granted planning permission for Hinkley and that the reactor design has been approved by regulators. But a senior EDF Energy executive said recently: "We cannot afford to burn money every day, every week, every month without a clear understanding of where it's leading us".
23 Apr 2013
EDF Energy energy is cutting scores of jobs to control costs at the site of its proposed new nuclear power station at Hinkley Point in Somerset. The company is in the middle of difficult negotiations with ministers over the level of public subsidy the new reactors will receive over the next 40 years but insisted the project is not being mothballed and that it is not "holding a gun to the government's head".The company has already spent £800m on developing the £14bn project and lost its junior partner when Centrica pulled out in February. "As part of good project management, and to control costs, EDF Energy has taken steps to refocus its activities at its Hinkley Point C project", said a spokeswoman. "This reflects its priorities ahead of securing the financing necessary for the project".
EDF Energy refused to give the number of workers losing their jobs, citing ongoing consultations with staff and unions, but the Guardian understands it will be about 150 of the current 800 strong workforce. The company said further pre-construction planning work would continue but that preparation of the site had halted.
EDF Energy wants to build two new reactors at Hinkley. It says they would provide reliable and low-carbon electricity making up 7% of the UK's demand and provide 25,000 job opportunities during construction, with 900 long-term posts. The UK government has placed new nuclear reactors at the heart of its energy policy, to replace the ageing fleet of nuclear and coal plants which are being phased out.
But the two sides have been unable to agree on the subsidy the plant would receive, paid for by consumers through their energy bills. EDF Energy had originally said it would make its final investment decision by the end of 2012. Both sides have a great deal to lose, but as the negotiations have dragged on observers have suggested the likelihood of the government abandoning plans for a series of new nuclear plants.
"It is proving extremely difficult to get that first nuclear power plant built and there is an increasing feeling in industry that at £14bn a throw there is no chance of getting beyond one", said Lord Robin Teverson, the LibDem spokesman on energy in the House of Lords.
A spokesman for the department of energy and climate change said: "Progress is being made in our discussions with EDF Energy. Both sides have an interest in reaching a positive agreement".
EDF Energy and the government face a number of major obstacles in delivering new reactors even beyond the challenging financing. The project has yet to be approved by the European Union, which limits the state aid that can be given to industrial projects. The UK also has no site for the long term disposal of nuclear waste, after the rejection of a proposal in Cumbria by local councils. Such a facility was considered a prerequisite for the building of new reactors by David Cameron before the 2010 election.
The EDF Energy spokeswoman said: "The case for new nuclear in the UK remains as strong as ever". She said Ed Davey, the energy secretary had granted planning permission for Hinkley and that the reactor design has been approved by regulators. But a senior EDF Energy executive said recently: "We cannot afford to burn money every day, every week, every month without a clear understanding of where it's leading us".
Thursday, 30 May 2013
Meridian Energy receives consent for Hurunui Wind Farm
www.voxy.co.nz
18 Apr 2013
The New Zealand Wind Energy Association (NZWEA) congratulates Meridian Energy on receiving consent for its proposed Hurunui Wind Farm in North Canterbury. The project was approved by the Environment Court earlier this week.
"It is evident from the decision that the Court has given careful consideration to the full range of issues raised by the community. It is a reasonable decision for both the community and the developer", says Eric Pyle, Chief Executive of NZWEA. The Court approved 31 of the 33 proposed wind turbines.
"The project is a valuable addition to Meridian Energy's pipeline of projects. Hurunui is a solid option for new generation, even given the uncertainty in the electricity market and flat electricity demand", said Mr Pyle. "The project is located in a region where there are transmission constraints and limited local generation. Wind is one of the lowest cost options for new generation in NZ. And if the forecasts related to the reducing cost of wind power hold true, the wind could undercut existing thermal generation within a few years".
Globally, wind is one of the leading sources of new electricity generation. A report released yesterday by the Global Wind Energy Council shows that 44.8 GWs of new wind generation was installed around the world in 2012. This is more than four times New Zealand's total generation capacity. Steve Saywer, GWEC's Secretary General recently commented that wind is now competitive in an increasing number of markets, despite fossil fuel subsidies which last year amounted to an incentive to emit CO₂ of about $110 per tonne.
18 Apr 2013
The New Zealand Wind Energy Association (NZWEA) congratulates Meridian Energy on receiving consent for its proposed Hurunui Wind Farm in North Canterbury. The project was approved by the Environment Court earlier this week.
"It is evident from the decision that the Court has given careful consideration to the full range of issues raised by the community. It is a reasonable decision for both the community and the developer", says Eric Pyle, Chief Executive of NZWEA. The Court approved 31 of the 33 proposed wind turbines.
"The project is a valuable addition to Meridian Energy's pipeline of projects. Hurunui is a solid option for new generation, even given the uncertainty in the electricity market and flat electricity demand", said Mr Pyle. "The project is located in a region where there are transmission constraints and limited local generation. Wind is one of the lowest cost options for new generation in NZ. And if the forecasts related to the reducing cost of wind power hold true, the wind could undercut existing thermal generation within a few years".
Globally, wind is one of the leading sources of new electricity generation. A report released yesterday by the Global Wind Energy Council shows that 44.8 GWs of new wind generation was installed around the world in 2012. This is more than four times New Zealand's total generation capacity. Steve Saywer, GWEC's Secretary General recently commented that wind is now competitive in an increasing number of markets, despite fossil fuel subsidies which last year amounted to an incentive to emit CO₂ of about $110 per tonne.
Wednesday, 29 May 2013
THE Desert Kingdom; desalination from oil power to solar power?
www.saudigazette.com.sa
15 Apr 2013
Saudi Arabia finds itself in an interesting economic cleft stick. While blessed with oil that it can currently sell at around $104 per barrel on the world market, it is compelled to burn a sizable proportion of that potential income to produce desalinated water. Cost of production of water fluctuates, but a fair guess is between 40 and 90¢ a barrel, depending on fuel price.
To produce water, the Kingdom uses approximately 1.5 million barrels of oil a day across its 30 or so desalination plants to meet the demand for domestic and industrial water. Little of this water--if any is used for agriculture. The water for agriculture--some 85 to 90% of the total water use in the Kingdom--comes from non-replaceable resources, underground aquifers that are drying out rapidly. For every 100 liters per annum withdrawn, only one liter or less finds itself back into the aquifer.
The government has wisely decided that food security, once an unquestionable shibboleth of policy, is no longer worth the use of resources and has taken up the idea of virtual water. This refers to the hidden flow of water if food or other commodities are traded from one place to another.
Virtual water is best defined as "the volume of freshwater used to produce the product, measured at the place where the product was actually produced". It refers to the sum of the water use in the various steps of the production chain. It is 'virtual' for when the product arrives at its destination, the water is no longer contained in it, and was used only to produce it. An example of the saving of such imports is wheat, which takes 1,600 tons of water on average to produce one ton of grain.
It has resolved that the Kingdom will rely entirely on imports for food by 2016. Starting in 2008, the government has been reducing wheat purchases from local farmers by 12.5% a year and plans eventually to withdraw all agricultural subsidies to these farmers. Having addressed the issue of water supply and use and effectively engaged the biggest user of water, agriculture, positively, desalination for the balance of life in the Kingdom remains a huge challenge on several levels.
A major issue, the use of expensive oil that could produce income for making water, has spawned a slew of projects based on solar power for water production. The Kingdom might, and probably is, considering nuclear power as another option, but this introduces the political aspect of the importation of nuclear fuels and technology to the region, which is already under the baleful gaze of the West.
Happily, Saudi Arabia is one of the sunniest places on earth, averaging between 200 and 300 hours per month. Solar power therefore is an environmentally friendly, infinitely renewable (well, for the next seven billion years or so and the earth will have dried out and life gone in 3.5 billion) and very available alternative. Moreover it is harmless, both politically and environmentally.
The Kingdom seems to have opted so far for the expensive option of photovoltaic cell electricity generation to run the new solar desalination plants rather than the simpler, longer lasting and lower maintenance Concentrated Solar Power (CSP) alternative. Commercially viable CSP plants are already in operation in California, France and Spain--all with lower sunshine hours--and are feeding electricity into the grid.
The government is tackling the building of desalination capacity actively and has allocated $6.4 billion for water and sanitation projects in 2013.
Saline Water Conversion Corp. SWCC, (which supplies 50% of the municipal water in the Kingdom and produces 18% of the global total) for example plans to build the world's largest water desalination plant in Rabigh and will have the ability to pump 600,000 cubic meters of desalinated water per day. The conventionally fueled plant should be completed by 2018. State-owned National Water Co, plans to spend $66 billion on plants and upgrades over the next 10 years.
In October 2012, Abdul Rahman Al-Ibrahim, governor of SWCC announced plans to establish three new solar-powered desalination plants in Haqel, Dhuba and Farasan in addition to the one under construction in Khafji.
The Khafji solar desalination project will be the first large-scale solar-powered seawater reverse-osmosis (SWRO) plant in the world. It was due for completion at the end of 2012 and designed with a capacity of 30,000 cubic meters of water per day for the 100,000 customers.
The Khafji desal plant is the first step in King Abdullah City for Science and Technology's solar power program to reduce desalination costs. Phase two of the project is the construction of a new plant to produce 300,000 cubic meters of water per day is planned by 2015, and phase three will involve Haqel, Dhuba and Farasan by 2018.
The Kingdom is not alone in the search for a clean, effective and cheap means of producing water. The UN classifies around 700 million people in 43 countries as suffering from water scarcity today. By 2025 the figure is forecast to rise to 1.8 billion.
With the global population expected to reach nine billion by 2050 and the US secretary of state openly discussing the threat of water shortages leading to wars, the production of desalinated water has never been more important.
15 Apr 2013
Saudi Arabia finds itself in an interesting economic cleft stick. While blessed with oil that it can currently sell at around $104 per barrel on the world market, it is compelled to burn a sizable proportion of that potential income to produce desalinated water. Cost of production of water fluctuates, but a fair guess is between 40 and 90¢ a barrel, depending on fuel price.To produce water, the Kingdom uses approximately 1.5 million barrels of oil a day across its 30 or so desalination plants to meet the demand for domestic and industrial water. Little of this water--if any is used for agriculture. The water for agriculture--some 85 to 90% of the total water use in the Kingdom--comes from non-replaceable resources, underground aquifers that are drying out rapidly. For every 100 liters per annum withdrawn, only one liter or less finds itself back into the aquifer.
The government has wisely decided that food security, once an unquestionable shibboleth of policy, is no longer worth the use of resources and has taken up the idea of virtual water. This refers to the hidden flow of water if food or other commodities are traded from one place to another.
Virtual water is best defined as "the volume of freshwater used to produce the product, measured at the place where the product was actually produced". It refers to the sum of the water use in the various steps of the production chain. It is 'virtual' for when the product arrives at its destination, the water is no longer contained in it, and was used only to produce it. An example of the saving of such imports is wheat, which takes 1,600 tons of water on average to produce one ton of grain.
It has resolved that the Kingdom will rely entirely on imports for food by 2016. Starting in 2008, the government has been reducing wheat purchases from local farmers by 12.5% a year and plans eventually to withdraw all agricultural subsidies to these farmers. Having addressed the issue of water supply and use and effectively engaged the biggest user of water, agriculture, positively, desalination for the balance of life in the Kingdom remains a huge challenge on several levels.
A major issue, the use of expensive oil that could produce income for making water, has spawned a slew of projects based on solar power for water production. The Kingdom might, and probably is, considering nuclear power as another option, but this introduces the political aspect of the importation of nuclear fuels and technology to the region, which is already under the baleful gaze of the West.
Happily, Saudi Arabia is one of the sunniest places on earth, averaging between 200 and 300 hours per month. Solar power therefore is an environmentally friendly, infinitely renewable (well, for the next seven billion years or so and the earth will have dried out and life gone in 3.5 billion) and very available alternative. Moreover it is harmless, both politically and environmentally.
The Kingdom seems to have opted so far for the expensive option of photovoltaic cell electricity generation to run the new solar desalination plants rather than the simpler, longer lasting and lower maintenance Concentrated Solar Power (CSP) alternative. Commercially viable CSP plants are already in operation in California, France and Spain--all with lower sunshine hours--and are feeding electricity into the grid.
The government is tackling the building of desalination capacity actively and has allocated $6.4 billion for water and sanitation projects in 2013.
Saline Water Conversion Corp. SWCC, (which supplies 50% of the municipal water in the Kingdom and produces 18% of the global total) for example plans to build the world's largest water desalination plant in Rabigh and will have the ability to pump 600,000 cubic meters of desalinated water per day. The conventionally fueled plant should be completed by 2018. State-owned National Water Co, plans to spend $66 billion on plants and upgrades over the next 10 years.
In October 2012, Abdul Rahman Al-Ibrahim, governor of SWCC announced plans to establish three new solar-powered desalination plants in Haqel, Dhuba and Farasan in addition to the one under construction in Khafji.
The Khafji solar desalination project will be the first large-scale solar-powered seawater reverse-osmosis (SWRO) plant in the world. It was due for completion at the end of 2012 and designed with a capacity of 30,000 cubic meters of water per day for the 100,000 customers.
The Khafji desal plant is the first step in King Abdullah City for Science and Technology's solar power program to reduce desalination costs. Phase two of the project is the construction of a new plant to produce 300,000 cubic meters of water per day is planned by 2015, and phase three will involve Haqel, Dhuba and Farasan by 2018.
The Kingdom is not alone in the search for a clean, effective and cheap means of producing water. The UN classifies around 700 million people in 43 countries as suffering from water scarcity today. By 2025 the figure is forecast to rise to 1.8 billion.
With the global population expected to reach nine billion by 2050 and the US secretary of state openly discussing the threat of water shortages leading to wars, the production of desalinated water has never been more important.
Thursday, 16 May 2013
Switch to fully renewable energy within reach: report
www.watoday.com.au
3 Apr 2013
Australia's abundant renewable resources are barely tapped. Australia's main electricity market could source all of its electricity from renewable energy with the help of a carbon price of as low as $50 a tonne, according to research at the University of New South Wales.
The researchers found currently available renewable energy technologies such as wind and concentrated solar thermal power could displace all fossil fuelled power plants in the National Electricity Market Management Company, according to a peer-reviewed paper published in the international Energy Policy journal. It would cost us a bit but it would be quite affordable.
The work used technology costs projected to 2030 by the government's Bureau of Resources and Energy Economics last year-costs that may prove conservative as prices of solar photovoltaic panels and other renewable sources tumble. A carbon price of $50 $100 a tonne would make coal and gas-fired power plants uneconomical, depending on varying assumptions, the report said.
"We think wind and solar will be a lot cheaper in 2030 than those projections", said Mark Diesendorf, an associate professor at the UNSW, and one of the authors of the report, Least cost 100% renewable electricity scenarios in the Australian National Electricity Market Management Company. "We could do it if we have the political will", Dr Diesendorf said. "It would cost us a bit but it would be quite affordable, and it may be cheaper than we have projected".
Running simulations based on power demand and supply data for 2010, the researchers found wind would contribute most in a switch to fully renewable energy. It would account for between 46 and 59%, while solar PV and concentrated solar would supply 15 20% each, and hydroelectric and biofuel-based gas generators the remainder.
Australia now sources about 10% of its electricity from renewable sources, an amount set to at least double by 2020 under the government's renewable energy target. The Coalition backs the goal but has vowed to repeal the carbon tax if it wins office in September. Pacific Hydro, a renewable energy generator in Australia, Chile and Brazil, said reaching 100% renewable energy supply is technically feasible but obstacles are steep. "It would take a substantial shift in political thinking", Andrew Richards, executive manager of corporate affairs at Pacific Hydro, said. "You'd need to mobilise tens of billions in capital to make it happen".
Political differences
After a bruising political fight to implement a $23 a tonne carbon tax, the government is not keen to rekindle debate over lifting the price. Instead, the price-if it hasn't been repealed-is likely to fall after July 2015 when the rate is linked to Europe's emissions trading scheme where prices are hovering below $6 a tonne. "The level of the carbon price is likely to move with international carbon prices as countries act together to cut emissions", said a spokesman for Climate Change Minister Greg Combet. The Coalition, meanwhile, argues the existing renewable energy target is driving sufficient investment to the sector.
"To drive up the carbon tax to $100 would largely make electricity unaffordable for most Australians who are already struggling to pay their power bills, and put thousands of jobs at risk because of the impact it would have on manufacturing", said opposition climate spokesman Greg Hunt. "When commentators put forward these proposals they need to be honest with the public about what the real costs would be for people's power bills".
Greens leader Christine Milne, though, described the UNSW research as "hugely significant". "For decades opponents of the renewable energy revolution have peddled the lie that renewable energy is unreliable and expensive", Senator Milne said. "This independent and rigorous academic report exposes that lie".
Senator Milne noted the Multi Party Climate Change Committee ordered the Australian Energy Market Operator to conduct a similar study to determine the feasibility and cost of achieving 100% renewable energy by 2030 and 2050. AEMO delivered its findings to the government on Tuesday. It is understood the release of the report is not imminent.
Subsidies
Pacific Hydro's Mr Richards said calls for additional renewable energy support should be viewed in light of the International Monetary Fund's report last week that energy subsidies total $US1.9 trillion a year, mostly for fossil fuels. "You need to slowly unwind [those subsidies] at the same time you ramp up the positive stuff", Mr Richards said. "Then you'll start to see the transition more quickly".
Many other countries are setting high goals, including Scotland's aim to generate all its power from renewable sources by 2020. Denmark has bipartisan political support to achieve 100% by 2050, while Germany's goal of cutting greenhouse gas emissions 80% by 2050 will be driven mostly by the power sector. "They are not just talking about it-they are doing it", Dr Diesendorf said. "Australia has huge potential because of our magnificent renewable sources but politically it's more difficult because of our very powerful fossil fuel and minerals industries, which are very reluctant to change".
3 Apr 2013
Australia's abundant renewable resources are barely tapped. Australia's main electricity market could source all of its electricity from renewable energy with the help of a carbon price of as low as $50 a tonne, according to research at the University of New South Wales.The researchers found currently available renewable energy technologies such as wind and concentrated solar thermal power could displace all fossil fuelled power plants in the National Electricity Market Management Company, according to a peer-reviewed paper published in the international Energy Policy journal. It would cost us a bit but it would be quite affordable.
The work used technology costs projected to 2030 by the government's Bureau of Resources and Energy Economics last year-costs that may prove conservative as prices of solar photovoltaic panels and other renewable sources tumble. A carbon price of $50 $100 a tonne would make coal and gas-fired power plants uneconomical, depending on varying assumptions, the report said.
"We think wind and solar will be a lot cheaper in 2030 than those projections", said Mark Diesendorf, an associate professor at the UNSW, and one of the authors of the report, Least cost 100% renewable electricity scenarios in the Australian National Electricity Market Management Company. "We could do it if we have the political will", Dr Diesendorf said. "It would cost us a bit but it would be quite affordable, and it may be cheaper than we have projected".
Running simulations based on power demand and supply data for 2010, the researchers found wind would contribute most in a switch to fully renewable energy. It would account for between 46 and 59%, while solar PV and concentrated solar would supply 15 20% each, and hydroelectric and biofuel-based gas generators the remainder.
Australia now sources about 10% of its electricity from renewable sources, an amount set to at least double by 2020 under the government's renewable energy target. The Coalition backs the goal but has vowed to repeal the carbon tax if it wins office in September. Pacific Hydro, a renewable energy generator in Australia, Chile and Brazil, said reaching 100% renewable energy supply is technically feasible but obstacles are steep. "It would take a substantial shift in political thinking", Andrew Richards, executive manager of corporate affairs at Pacific Hydro, said. "You'd need to mobilise tens of billions in capital to make it happen".
Political differences
After a bruising political fight to implement a $23 a tonne carbon tax, the government is not keen to rekindle debate over lifting the price. Instead, the price-if it hasn't been repealed-is likely to fall after July 2015 when the rate is linked to Europe's emissions trading scheme where prices are hovering below $6 a tonne. "The level of the carbon price is likely to move with international carbon prices as countries act together to cut emissions", said a spokesman for Climate Change Minister Greg Combet. The Coalition, meanwhile, argues the existing renewable energy target is driving sufficient investment to the sector.
"To drive up the carbon tax to $100 would largely make electricity unaffordable for most Australians who are already struggling to pay their power bills, and put thousands of jobs at risk because of the impact it would have on manufacturing", said opposition climate spokesman Greg Hunt. "When commentators put forward these proposals they need to be honest with the public about what the real costs would be for people's power bills".
Greens leader Christine Milne, though, described the UNSW research as "hugely significant". "For decades opponents of the renewable energy revolution have peddled the lie that renewable energy is unreliable and expensive", Senator Milne said. "This independent and rigorous academic report exposes that lie".
Senator Milne noted the Multi Party Climate Change Committee ordered the Australian Energy Market Operator to conduct a similar study to determine the feasibility and cost of achieving 100% renewable energy by 2030 and 2050. AEMO delivered its findings to the government on Tuesday. It is understood the release of the report is not imminent.
Subsidies
Pacific Hydro's Mr Richards said calls for additional renewable energy support should be viewed in light of the International Monetary Fund's report last week that energy subsidies total $US1.9 trillion a year, mostly for fossil fuels. "You need to slowly unwind [those subsidies] at the same time you ramp up the positive stuff", Mr Richards said. "Then you'll start to see the transition more quickly".
Many other countries are setting high goals, including Scotland's aim to generate all its power from renewable sources by 2020. Denmark has bipartisan political support to achieve 100% by 2050, while Germany's goal of cutting greenhouse gas emissions 80% by 2050 will be driven mostly by the power sector. "They are not just talking about it-they are doing it", Dr Diesendorf said. "Australia has huge potential because of our magnificent renewable sources but politically it's more difficult because of our very powerful fossil fuel and minerals industries, which are very reluctant to change".
Thursday, 14 March 2013
Japanese oil refiner seeks switch to solar cells
www.smh.com.au
19 Feb 2013
Showa Shell Sekiyu, a Japanese oil refiner, plans to become a global leader in solar cell output as it diversifies to benefit from clean-energy subsidies. Showa Shell Sekiyu will increase production efficiency and cost competitiveness to "top levels in the world", it said today in its five-year management plan. The company also intends to lead the development of solar modules, which use photovoltaic cells.
Japan began an incentive program in July to promote alternative power generation following the 2011 Fukushima nuclear disaster. That prompted companies such as mobile carrier Softbank Corp, and Tokyo-based Showa Shell Sekiyu to expand in solar power as demand climbed.
"Once we gain a foothold in Japan, we want to gain ground in the international market", Showa Shell Sekiyu President Jun Arai said today at a press briefing. The company is seeking to reduce the cost of CIGS solar panels-thin-film units using copper, indium, gallium and selenium-by about half in 2017, he said.
Showa Shell Sekiyu's Energy Solution business posted a 19% jump in 2012 sales to 78.2 billion yen ($815 million), while its operating loss narrowed to 15.4 billion yen from 28.8 billion yen, a February 14 filing showed. The division comprises solar cell production and sales, as well as wholesale power supply.
Japan is poised to become the world's third-largest market for solar power this year, according to forecasts from researcher Bloomberg New Energy Finance.
19 Feb 2013
Showa Shell Sekiyu, a Japanese oil refiner, plans to become a global leader in solar cell output as it diversifies to benefit from clean-energy subsidies. Showa Shell Sekiyu will increase production efficiency and cost competitiveness to "top levels in the world", it said today in its five-year management plan. The company also intends to lead the development of solar modules, which use photovoltaic cells.
Japan began an incentive program in July to promote alternative power generation following the 2011 Fukushima nuclear disaster. That prompted companies such as mobile carrier Softbank Corp, and Tokyo-based Showa Shell Sekiyu to expand in solar power as demand climbed.
"Once we gain a foothold in Japan, we want to gain ground in the international market", Showa Shell Sekiyu President Jun Arai said today at a press briefing. The company is seeking to reduce the cost of CIGS solar panels-thin-film units using copper, indium, gallium and selenium-by about half in 2017, he said.
Showa Shell Sekiyu's Energy Solution business posted a 19% jump in 2012 sales to 78.2 billion yen ($815 million), while its operating loss narrowed to 15.4 billion yen from 28.8 billion yen, a February 14 filing showed. The division comprises solar cell production and sales, as well as wholesale power supply.
Japan is poised to become the world's third-largest market for solar power this year, according to forecasts from researcher Bloomberg New Energy Finance.
Monday, 4 March 2013
Bumper year for solar and wind energy
www.theage.com.au
12 Feb 2013
2012 was another bumper year for renewable energy worldwide with solar photovoltaic (PV) capacity surpassing 100 GWs for the first time and wind power capacity expanding by almost one-fifth. Rapid growth outside Europe saw a total of about 32 GW of solar PV capacity installed, bringing capacity to 101 GW and narrowly pipping the 30 GWs taken up in 2011, the European Photovoltaic Industry Association said, citing preliminary figures.
"No one would have predicted even 10 years ago that we would see more than 100 GW of solar photovoltaic capacity in the world by 2012", said EPIA President Winfried Hoffmann. "The photovoltaic industry clearly faces challenges but the results of 2012 show there is a strong global market for our technology. Solar photovoltaic plants can now generate as much electricity in a year as about 16 mid-sized coal-fired or nuclear power stations, the lobby group said.
Australian surge
Australia added about 1 GW of solar PV capacity last year, lifting the country's capacity about 70% to 2.4 GW, according to the Australian Solar Council.
The wholesale price of solar PV is now as low as 55¢ per watt of power, down from an average of $7 in 2008, said John Grimes, chief executive of the Australian Solar Council. With some consumers in NSW, for instance, paying more than 50¢ per kW-hour for peak power, solar power is becoming "an absolute no-brainer", Mr Grimes said. "The fundamental economics are now driving the uptake of solar, rather than government support".
Demand for new PV panels was quiet at the start of the year but has picked up in recent weeks, suggesting 2013 demand will probably land between the 840 MW to 1 GW levels installed in the past two years, he said. Policy uncertainty remains, though, with the government now considering a recommendation by the Climate Change Authority in its review of the Renewable Energy Target to cut the size of commercial PV installations eligible for the small-scale solar scheme from 100 to 10 kW capacity.
"That would be an enormous brake on the take-up of solar in commercial and industry areas'' if accepted by the government, and curb job growth in a sector already employing about 25,000 people, Mr Grimes said. The crash in solar PV prices has largely been prompted by Chinese producers flooding the market with low-cost panels. The expansion of the global market came even as new European capacity slumped amid subsidy cuts by governments.
Countries outside Europe added more than 13 GW of solar capacity last year, compared with less than 8 GW in 2011, driven by China, the US and Japan, the data show. Germany, home to a third of the world's solar panels, remained the biggest market after adding 7.6 GW, while Europe as a whole installed 17 GWs, down from 23 GW.
Research by Bloomberg New Energy Finance released last week found that new solar and wind capacity is now cheaper than the cost of building new coal-fired power plants in Australia.
Wind power accelerates
In a separate statement, the Global Wind Energy Council said installed capacity expanded 19% last year, with 44.7 GW of turbines built. The total of new capacity beat the previous record 40.6 GW installed in 2011 by just over 10%. Figures for Australia show the country added 358 MWs of new wind capacity, lifting the total by 16% to 2.584 GW, the Council said.
A rush by wind farm developers in the US to beat an anticipated expiration of the US Production Tax Credit saw the country install more than 8 GW of capacity in the final three months of 2012 alone. All up the US added 13.1 GW of capacity in 2012, leaving it just shy of the estimated 13.2 GW added by China.
"While China paused for breath, both the US and European markets had exceptionally strong years", Steve Sawyer, Secretary General of the Global Wind Energy Council, said in a statement on the group's website. "Asia still led global markets, but with North America a close second, and Europe not far behind".
Europe set a record with 12.4 GW of wind power added, as markets such as Sweden, Romania, Italy and Poland posted quicker growth. The outlook remains uncertain, though, as the region's on-going sovereign debt crises limits government support, the council said. The region, though, continues to lead the market for offshore wind farms, with 1.166 GW added, accounting for more than 90% of total offshore installations of 1.293 GW in 2012, the council said.
12 Feb 2013
2012 was another bumper year for renewable energy worldwide with solar photovoltaic (PV) capacity surpassing 100 GWs for the first time and wind power capacity expanding by almost one-fifth. Rapid growth outside Europe saw a total of about 32 GW of solar PV capacity installed, bringing capacity to 101 GW and narrowly pipping the 30 GWs taken up in 2011, the European Photovoltaic Industry Association said, citing preliminary figures."No one would have predicted even 10 years ago that we would see more than 100 GW of solar photovoltaic capacity in the world by 2012", said EPIA President Winfried Hoffmann. "The photovoltaic industry clearly faces challenges but the results of 2012 show there is a strong global market for our technology. Solar photovoltaic plants can now generate as much electricity in a year as about 16 mid-sized coal-fired or nuclear power stations, the lobby group said.
Australian surge
Australia added about 1 GW of solar PV capacity last year, lifting the country's capacity about 70% to 2.4 GW, according to the Australian Solar Council.
The wholesale price of solar PV is now as low as 55¢ per watt of power, down from an average of $7 in 2008, said John Grimes, chief executive of the Australian Solar Council. With some consumers in NSW, for instance, paying more than 50¢ per kW-hour for peak power, solar power is becoming "an absolute no-brainer", Mr Grimes said. "The fundamental economics are now driving the uptake of solar, rather than government support".
Demand for new PV panels was quiet at the start of the year but has picked up in recent weeks, suggesting 2013 demand will probably land between the 840 MW to 1 GW levels installed in the past two years, he said. Policy uncertainty remains, though, with the government now considering a recommendation by the Climate Change Authority in its review of the Renewable Energy Target to cut the size of commercial PV installations eligible for the small-scale solar scheme from 100 to 10 kW capacity.
"That would be an enormous brake on the take-up of solar in commercial and industry areas'' if accepted by the government, and curb job growth in a sector already employing about 25,000 people, Mr Grimes said. The crash in solar PV prices has largely been prompted by Chinese producers flooding the market with low-cost panels. The expansion of the global market came even as new European capacity slumped amid subsidy cuts by governments.
Countries outside Europe added more than 13 GW of solar capacity last year, compared with less than 8 GW in 2011, driven by China, the US and Japan, the data show. Germany, home to a third of the world's solar panels, remained the biggest market after adding 7.6 GW, while Europe as a whole installed 17 GWs, down from 23 GW.
Research by Bloomberg New Energy Finance released last week found that new solar and wind capacity is now cheaper than the cost of building new coal-fired power plants in Australia.
Wind power accelerates
In a separate statement, the Global Wind Energy Council said installed capacity expanded 19% last year, with 44.7 GW of turbines built. The total of new capacity beat the previous record 40.6 GW installed in 2011 by just over 10%. Figures for Australia show the country added 358 MWs of new wind capacity, lifting the total by 16% to 2.584 GW, the Council said.
A rush by wind farm developers in the US to beat an anticipated expiration of the US Production Tax Credit saw the country install more than 8 GW of capacity in the final three months of 2012 alone. All up the US added 13.1 GW of capacity in 2012, leaving it just shy of the estimated 13.2 GW added by China.
"While China paused for breath, both the US and European markets had exceptionally strong years", Steve Sawyer, Secretary General of the Global Wind Energy Council, said in a statement on the group's website. "Asia still led global markets, but with North America a close second, and Europe not far behind".
Europe set a record with 12.4 GW of wind power added, as markets such as Sweden, Romania, Italy and Poland posted quicker growth. The outlook remains uncertain, though, as the region's on-going sovereign debt crises limits government support, the council said. The region, though, continues to lead the market for offshore wind farms, with 1.166 GW added, accounting for more than 90% of total offshore installations of 1.293 GW in 2012, the council said.
Wind power capacity grew 20% globally in 2012, figures show
www.guardian.co.uk
11 Feb 2013
Wind power expanded by almost 20% in 2012 around the world to reach a new peak of 282 GWs (GW) of total installed capacity, while solar power reached more than 100GW, having more than doubled in two years. More than 45GW of new wind turbines arrived in 2012, with China and the US leading the way with 13GW each, while Germany, India and the UK were next with about 2GW apiece.
"While China paused for breath, both the US and European markets had exceptionally strong years", said Steve Sawyer, secretary general of the Global Wind Energy Council (GWEC), which produced the statistics. "Asia still led global markets, but with North America a close second, and Europe not far behind".
The UK now ranks sixth in the world for installed wind power, with 8.5GW. In Europe, only Germany (31GW) and Spain (23GW) have more. China leads the world with 77GW installed and the US is second with 60GW. The UK is by far the world leader in offshore wind deployment, installing 0.85MW in 2012 to bring the total so far to 3GW. Denmark has a total of 0.9GW installed; Belgium is ranked third with 0.4GW.
"We are pleased to be part of this success story", said a spokeswoman for the UK department of energy and climate change. "Wind is an important part of our low-carbon energy future. We're also driving the technology forward with innovative 6MW offshore turbines currently being installed in the North Sea".
The GWEC said market consolidation led to the relative slowdown in China, while "a lapse in policy" caused a similar slowdown in India, but expected Asian dominance of global wind markets to continue.
The record year for installation in the US was driven by a rush to beat an anticipated end to tax credits: 8GW of the total 13GW were installed in the last quarter of 2012. However, the tax credit has since been extended, meaning a dramatic slowdown in the US in 2013 is less likely. GWEC said the outlook for 2013 in Europe was uncertain due to the eurozone debt crisis, but that the EU's legal commitments and 2020 targets for renewable energy ensured "a degree of stability".
There is very little wind power installed in Africa, but sub-Saharan Africa's first large commercial wind farm came on line in 2012, a 52MW project in Ethiopia. "This is just the beginning of the African market", said Sawyer. "With construction started on over 0.5GW in South Africa, we expect Africa to be a substantial new market, where clean, competitive energy generated with indigenous sources is a priority for economic development".
Solar power reached 100GW installed capacity in 2012 for the first time, according to data from the European Photovoltaic Industry Association (EPIA), up from 71GW in 2011 and just 40GW in 2010. The largest market by far is Europe, with Germany (32GW total) and Italy (16GW) the leaders. But while solar panel connections in Europe fell by 5GW in 2012 compared to the previous year, installations rose by 5GW in the rest of the world, notable China, the US, Japan and India.
"Even in tough economic times and despite growing regulatory uncertainty, we have nearly managed to repeat the record year of 2011", said EPIA president Winfried Hoffmann. But the EPIA noted that a continued oversupply of solar panels would most likely make 2013 a "difficult year" for photovoltaic companies.
In January, Bloomberg New Energy Finance reported that global investment in all renewable energy had fallen by 11% in 2012, due largely to drops in government support in the US, Spain and Italy. Investment continued to rise in Asia.
In November, the International Energy Agency noted that low-carbon energy was growing quickly, driven largely by state subsidies. But the IEA highlighted that fossil fuels received six times more subsidy-$523bn in 2011, up 30% from 2010 than low-carbon energy.
11 Feb 2013
Wind power expanded by almost 20% in 2012 around the world to reach a new peak of 282 GWs (GW) of total installed capacity, while solar power reached more than 100GW, having more than doubled in two years. More than 45GW of new wind turbines arrived in 2012, with China and the US leading the way with 13GW each, while Germany, India and the UK were next with about 2GW apiece.
"While China paused for breath, both the US and European markets had exceptionally strong years", said Steve Sawyer, secretary general of the Global Wind Energy Council (GWEC), which produced the statistics. "Asia still led global markets, but with North America a close second, and Europe not far behind".
The UK now ranks sixth in the world for installed wind power, with 8.5GW. In Europe, only Germany (31GW) and Spain (23GW) have more. China leads the world with 77GW installed and the US is second with 60GW. The UK is by far the world leader in offshore wind deployment, installing 0.85MW in 2012 to bring the total so far to 3GW. Denmark has a total of 0.9GW installed; Belgium is ranked third with 0.4GW.
"We are pleased to be part of this success story", said a spokeswoman for the UK department of energy and climate change. "Wind is an important part of our low-carbon energy future. We're also driving the technology forward with innovative 6MW offshore turbines currently being installed in the North Sea".
The GWEC said market consolidation led to the relative slowdown in China, while "a lapse in policy" caused a similar slowdown in India, but expected Asian dominance of global wind markets to continue.
The record year for installation in the US was driven by a rush to beat an anticipated end to tax credits: 8GW of the total 13GW were installed in the last quarter of 2012. However, the tax credit has since been extended, meaning a dramatic slowdown in the US in 2013 is less likely. GWEC said the outlook for 2013 in Europe was uncertain due to the eurozone debt crisis, but that the EU's legal commitments and 2020 targets for renewable energy ensured "a degree of stability".
There is very little wind power installed in Africa, but sub-Saharan Africa's first large commercial wind farm came on line in 2012, a 52MW project in Ethiopia. "This is just the beginning of the African market", said Sawyer. "With construction started on over 0.5GW in South Africa, we expect Africa to be a substantial new market, where clean, competitive energy generated with indigenous sources is a priority for economic development".
Solar power reached 100GW installed capacity in 2012 for the first time, according to data from the European Photovoltaic Industry Association (EPIA), up from 71GW in 2011 and just 40GW in 2010. The largest market by far is Europe, with Germany (32GW total) and Italy (16GW) the leaders. But while solar panel connections in Europe fell by 5GW in 2012 compared to the previous year, installations rose by 5GW in the rest of the world, notable China, the US, Japan and India.
"Even in tough economic times and despite growing regulatory uncertainty, we have nearly managed to repeat the record year of 2011", said EPIA president Winfried Hoffmann. But the EPIA noted that a continued oversupply of solar panels would most likely make 2013 a "difficult year" for photovoltaic companies.
In January, Bloomberg New Energy Finance reported that global investment in all renewable energy had fallen by 11% in 2012, due largely to drops in government support in the US, Spain and Italy. Investment continued to rise in Asia.
In November, the International Energy Agency noted that low-carbon energy was growing quickly, driven largely by state subsidies. But the IEA highlighted that fossil fuels received six times more subsidy-$523bn in 2011, up 30% from 2010 than low-carbon energy.
Monday, 11 February 2013
China to boost solar power goal 67% as smog envelops Beijing
www.bloomberg.com
30 Jan 2013
China plans to increase its goal for solar power installations in 2015 by 67% to reduce reliance on fossil fuels blamed for greenhouse gases and as smog in Beijing reached record hazardous levels this month.
The world's biggest emitter of carbon-dioxide plans to raise the solar target to 35 GWs by 2015 from 21 GWs set last year, boosting demand for manufactures that suffer from slowing sales in Europe, Shi Dinghuan, the counselor of China's State Council and the president of Chinese Renewable Energy Society, said today by phone.
"We've got more pressure to save energy and reduce emissions as smog worsens due to pollution", he said. China will use renewable energy to cut coal consumption and support the domestic industry amid U.S, and Europe anti-dumping charges against Chinese solar products, Shi said.
The increase in solar installations first appeared in the Economic Observer today. Shares of solar-device maker China Singyes Solar Technologies Holdings Ltd. (750) rose 2.1% in Hong Kong. The new target would increase solar power installations by more than five-fold from 6.5 GWs of capacity as of the end of last year, according to Bloomberg New Energy Finance data.
"China always wants to increase solar power capacity", said Wang Xiaoting, a Beijing-based analyst at New Energy Finance, a unit of Bloomberg LP. "The nation adjusts the targets from time to time with consideration for practical factors such as related policies and construction conditions".
Slower Demand Chinese manufacturers led by Suntech Power Co. (STP) and Yingli Green Energy Holding Co. (YGE) faced weaker demand and a supply glut that has driven panel prices down by 25% in the past year. The U.S, last year imposed tariffs on Chinese-made solar cells and the European Union began probing whether Chinese manufacturers are selling cells and panels below cost in European markets.
Earlier this month, the Chinese government said it planned to install 10 GWs of solar capacity this year. China allocated 13 billion ¥ ($2.1 billion) in subsidies for domestic solar project developers in 2012, the official Xinhua News Agency reported last month. Interest in renewable energy is getting a boost as Beijing warned the city's 20 million people to prepare for at least another day of smog. Officials closed some factories and ordered government cars off the road as pollution remained at hazardous levels.
Premier Wen Jiabao said China should promote energy-saving and reduce emissions to cut pollution, the official Xinhua News Agency reported. The smog has remained dense after hitting record levels on Jan. 12.
30 Jan 2013
China plans to increase its goal for solar power installations in 2015 by 67% to reduce reliance on fossil fuels blamed for greenhouse gases and as smog in Beijing reached record hazardous levels this month.
The world's biggest emitter of carbon-dioxide plans to raise the solar target to 35 GWs by 2015 from 21 GWs set last year, boosting demand for manufactures that suffer from slowing sales in Europe, Shi Dinghuan, the counselor of China's State Council and the president of Chinese Renewable Energy Society, said today by phone.
"We've got more pressure to save energy and reduce emissions as smog worsens due to pollution", he said. China will use renewable energy to cut coal consumption and support the domestic industry amid U.S, and Europe anti-dumping charges against Chinese solar products, Shi said.
The increase in solar installations first appeared in the Economic Observer today. Shares of solar-device maker China Singyes Solar Technologies Holdings Ltd. (750) rose 2.1% in Hong Kong. The new target would increase solar power installations by more than five-fold from 6.5 GWs of capacity as of the end of last year, according to Bloomberg New Energy Finance data.
"China always wants to increase solar power capacity", said Wang Xiaoting, a Beijing-based analyst at New Energy Finance, a unit of Bloomberg LP. "The nation adjusts the targets from time to time with consideration for practical factors such as related policies and construction conditions".
Slower Demand Chinese manufacturers led by Suntech Power Co. (STP) and Yingli Green Energy Holding Co. (YGE) faced weaker demand and a supply glut that has driven panel prices down by 25% in the past year. The U.S, last year imposed tariffs on Chinese-made solar cells and the European Union began probing whether Chinese manufacturers are selling cells and panels below cost in European markets.
Earlier this month, the Chinese government said it planned to install 10 GWs of solar capacity this year. China allocated 13 billion ¥ ($2.1 billion) in subsidies for domestic solar project developers in 2012, the official Xinhua News Agency reported last month. Interest in renewable energy is getting a boost as Beijing warned the city's 20 million people to prepare for at least another day of smog. Officials closed some factories and ordered government cars off the road as pollution remained at hazardous levels.
Premier Wen Jiabao said China should promote energy-saving and reduce emissions to cut pollution, the official Xinhua News Agency reported. The smog has remained dense after hitting record levels on Jan. 12.
Thursday, 31 January 2013
Wind power delivers too much to ignore
www.newscientist.com
21 Jan 2013
Although aesthetic concerns need to be heard, qualms about wind's reliability are wide of the mark, argues energy policy researcher Reg Platt
THE location of the British Isles at Europe's wild and windy western fringe does not always seem like a blessing. But in one important respect it is: the UK has the greatest potential for wind power, both onshore and offshore, of any European country.
Onshore wind power has expanded steadily across the UK in recent years and is a key plank of the country's commitment to greening its electricity supply. But as the turbines have gone up across the countryside, so has the level of opposition. Wind power has become a deeply divisive issue in British politics.
The issue exploded last year when 106 members of parliament, mostly Conservatives representing rural constituencies, signed a letter to Conservative Prime Minister David Cameron. They urged him to cut subsidies for the onshore wind industry, describing wind technology as "inefficient and intermittent".
Things escalated in the autumn when the recently appointed Conservative energy minister, John Hayes, told two newspapers that "enough is enough" and that no new onshore wind farms would be built. He was slapped down by his boss Edward Davey, the secretary of state for energy and climate change and a member of the Liberal Democrat party. But simmering tensions remain at the top level of the coalition government. Another Conservative, finance minister George Osborne, is known to be sympathetic to the anti-wind cause. Wind turbines also became an important point of contention between the parties in a recent by-election.
Two of the anti-wind campaigners' main concerns are the impact of turbines on the beauty of the countryside and the opposition of local people. It is absolutely right that these be taken into account. But they need to be balanced against the bulk of public opinion, which strongly supports the increased use of wind turbines.
Any misgivings must also be balanced against the important role that this technology can play for the UK, both in fulfilling its climate-change commitments and for future economic success.
Anti-wind campaigners frequently make claims about the shortcomings of wind power. Their main complaints are that the turbines are so inefficient that they actually increase CO₂ emissions, and so unreliable that they require constant backup from conventional coal and gas-fired stations. If correct, these claims would be devastating to wind power. But they are not.
My organisation, the Institute for Public Policy Research, recently published a report tackling these questions. Our conclusions are unambiguous. Onshore wind power reduces carbon emissions and is a reliable source of electricity, at least up to the capacity of wind power that is forecast to be installed in the UK by 2020.
To answer the carbon question, we used a simple model of the UK electricity market. As demand increases, say on a weekday morning when people are waking up and getting ready to go to work, power plants increase output to meet it. Plants with the lowest marginal cost-that is, those that can produce additional electricity most cheaply-are selected first by the market. Here wind beats gas and coal, as no fuel is needed to generate electricity.
The upshot is that, in theory, adding wind power to the energy mix should displace coal and gas, and hence cut carbon. This is backed up by empirical data on emissions reductions from wind power in the US.
There is another way of looking at it. In 2011, wind power contributed approximately 15.5 TWs of electricity to the UK. If this had been supplied by fossil fuels instead, CO₂ emissions would have been at least 5.5 million tonnes higher, and as much as 12 million tonnes higher.
Read More…
21 Jan 2013
Although aesthetic concerns need to be heard, qualms about wind's reliability are wide of the mark, argues energy policy researcher Reg Platt
THE location of the British Isles at Europe's wild and windy western fringe does not always seem like a blessing. But in one important respect it is: the UK has the greatest potential for wind power, both onshore and offshore, of any European country.
Onshore wind power has expanded steadily across the UK in recent years and is a key plank of the country's commitment to greening its electricity supply. But as the turbines have gone up across the countryside, so has the level of opposition. Wind power has become a deeply divisive issue in British politics.
The issue exploded last year when 106 members of parliament, mostly Conservatives representing rural constituencies, signed a letter to Conservative Prime Minister David Cameron. They urged him to cut subsidies for the onshore wind industry, describing wind technology as "inefficient and intermittent".
Things escalated in the autumn when the recently appointed Conservative energy minister, John Hayes, told two newspapers that "enough is enough" and that no new onshore wind farms would be built. He was slapped down by his boss Edward Davey, the secretary of state for energy and climate change and a member of the Liberal Democrat party. But simmering tensions remain at the top level of the coalition government. Another Conservative, finance minister George Osborne, is known to be sympathetic to the anti-wind cause. Wind turbines also became an important point of contention between the parties in a recent by-election.
Two of the anti-wind campaigners' main concerns are the impact of turbines on the beauty of the countryside and the opposition of local people. It is absolutely right that these be taken into account. But they need to be balanced against the bulk of public opinion, which strongly supports the increased use of wind turbines.
Any misgivings must also be balanced against the important role that this technology can play for the UK, both in fulfilling its climate-change commitments and for future economic success.
Anti-wind campaigners frequently make claims about the shortcomings of wind power. Their main complaints are that the turbines are so inefficient that they actually increase CO₂ emissions, and so unreliable that they require constant backup from conventional coal and gas-fired stations. If correct, these claims would be devastating to wind power. But they are not.
My organisation, the Institute for Public Policy Research, recently published a report tackling these questions. Our conclusions are unambiguous. Onshore wind power reduces carbon emissions and is a reliable source of electricity, at least up to the capacity of wind power that is forecast to be installed in the UK by 2020.
To answer the carbon question, we used a simple model of the UK electricity market. As demand increases, say on a weekday morning when people are waking up and getting ready to go to work, power plants increase output to meet it. Plants with the lowest marginal cost-that is, those that can produce additional electricity most cheaply-are selected first by the market. Here wind beats gas and coal, as no fuel is needed to generate electricity.
The upshot is that, in theory, adding wind power to the energy mix should displace coal and gas, and hence cut carbon. This is backed up by empirical data on emissions reductions from wind power in the US.
There is another way of looking at it. In 2011, wind power contributed approximately 15.5 TWs of electricity to the UK. If this had been supplied by fossil fuels instead, CO₂ emissions would have been at least 5.5 million tonnes higher, and as much as 12 million tonnes higher.
Read More…
U.S. Wind Power Accounted for 6% of Generation Capacity in 2012
www.bloomberg.com
18 Jan 2013
US wind power accounted for 6% of the nation's total electricity generation capacity after developers rushed to finish projects before expiration of a subsidy, Bloomberg New Energy Finance said.
The threat that the US Production Tax Credit would lapse on Dec. 31 prompted developers to complete as many projects as they could last month, the London-based research group said. A record 13.2 GWs of turbines were installed last year including 5.5 GWs in December, the most ever for a single month. Total wind capacity is about 60 GWs.
"It's clear that the economics, aided by the Production Tax Credit, drove wind growth in 2012," said Amy Grace, lead analyst on wind in North America for New Energy Finance. "Capacity was built without any near-term state mandated demand. This means that in most areas, utilities are buying wind power because they want to, not because they have to."
The credit has been extended for a year to cover wind farms that start construction in 2013. Previously it only covered projects that started working by the expiration date. Uncertainty about whether the credit would be extended meant developers and investors haven't built up a backlog of projects for 2013.
Asset financing for US wind farms dropped to $4.3 billion in the second-half from $9.6 billion in the first six months of last year. This has hurt component makers such as Vestas Wind Systems (VWS) AS, Gamesa Corp Tecnologica SA (GAM) and Clipper Marine Windpower Ltd., which is owned by Paltinum Equity LLC.
Share Drops
Vestas Wind Systems declined as much as 41% in the past year and Gamesa Corp by 39%.
Equipment prices for wind have dropped by more than 21% since 2010, and the performance of turbines has risen. This has resulted in a 21% decrease in the overall cost of electricity from wind for a typical US project since 2010, New Energy Finance said.
Last year's numbers are especially "striking" given the current price of natural gas which sank below $2 per million British thermal unit in April, the lowest in a decade. At this price, natural gas plants present "stiff" competition for wind projects, the research company owned by Bloomberg LP said.
18 Jan 2013
US wind power accounted for 6% of the nation's total electricity generation capacity after developers rushed to finish projects before expiration of a subsidy, Bloomberg New Energy Finance said.
The threat that the US Production Tax Credit would lapse on Dec. 31 prompted developers to complete as many projects as they could last month, the London-based research group said. A record 13.2 GWs of turbines were installed last year including 5.5 GWs in December, the most ever for a single month. Total wind capacity is about 60 GWs.
"It's clear that the economics, aided by the Production Tax Credit, drove wind growth in 2012," said Amy Grace, lead analyst on wind in North America for New Energy Finance. "Capacity was built without any near-term state mandated demand. This means that in most areas, utilities are buying wind power because they want to, not because they have to."
The credit has been extended for a year to cover wind farms that start construction in 2013. Previously it only covered projects that started working by the expiration date. Uncertainty about whether the credit would be extended meant developers and investors haven't built up a backlog of projects for 2013.
Asset financing for US wind farms dropped to $4.3 billion in the second-half from $9.6 billion in the first six months of last year. This has hurt component makers such as Vestas Wind Systems (VWS) AS, Gamesa Corp Tecnologica SA (GAM) and Clipper Marine Windpower Ltd., which is owned by Paltinum Equity LLC.
Share Drops
Vestas Wind Systems declined as much as 41% in the past year and Gamesa Corp by 39%.
Equipment prices for wind have dropped by more than 21% since 2010, and the performance of turbines has risen. This has resulted in a 21% decrease in the overall cost of electricity from wind for a typical US project since 2010, New Energy Finance said.
Last year's numbers are especially "striking" given the current price of natural gas which sank below $2 per million British thermal unit in April, the lowest in a decade. At this price, natural gas plants present "stiff" competition for wind projects, the research company owned by Bloomberg LP said.
Monday, 28 January 2013
China revs up wind power amid challenges
www.upi.com
16 Jan 2013
BEIJING, Jan. 16 (UPI) -- As the world's largest wind power market, China continues to push forward with wind power installations, yet it faces ongoing problems with grid connection. New wind power installations in China in 2012 brought the country's grid-connected capacity to more than 60 GWs, says the State Electricity Regulatory Commission.
While a total of 100.4 billion kW hours of electricity was generated by wind power last year -- an increase of 35.5% over 2011 -- only 12.85 GWs was connected to the grid, compared to 2011's figure of 16 GWs
"In the past few years, wind farm development has been too rapid and grid construction has not been able to keep up. The huge gap put a lot of pressure on the grid," said Ma Jinru, vice-president and secretary of the board at Goldwind Science & Technology Co Group, one of China's biggest manufacturers of wind power equipment, China Daily reports.
In a news release Monday promoting a Shanghai wind power exposition, the deputy director general of China's National Energy Administration said that wind power is China's third largest source of electricity. "Wind power has become the third-largest electric power in China," Liu Qi said. "There is no electric power to substitute the position of wind power as number three, following thermal power and hydroelectric."
As part of the National Energy Administration's renewable energy development plan announced last August, China is aiming for 100 GWs of wind power to be connected to the grid by 2015, including 5 GWs of offshore wind power. Improved grid construction and dispatching, enhanced equipment performance help the wind power sector reach to reach the 100 GW goal, the news release states.
Also as part of the 2011-15 energy plan, State Grid Corp. of China will invest more than $80 billion to extend the ultra-high-voltage electricity transmission networks in North, Central and Eastern China, China Daily reports. Meanwhile, China's wind sector face challenges following a US decision to increase import duties on Chinese wind turbines.
In its final verdict in December on anti-dumping and counter-subsidy duties against wind turbine towers imported from China and Vietnam, the US Department of Commerce said that Chinese producers dumped towers in the United States and set anti-dumping duties of 44.99-70.63
"With rates of duty like this, it's impossible for the products of Chinese wind tower manufacturers to enter the US market," Zheng Kangsheng, secretary of the board of Titan Wind Energy (Suzhou) Co. was quoted as saying by China Daily. "The company's US market share will definitely decline sharply," he added.
16 Jan 2013
BEIJING, Jan. 16 (UPI) -- As the world's largest wind power market, China continues to push forward with wind power installations, yet it faces ongoing problems with grid connection. New wind power installations in China in 2012 brought the country's grid-connected capacity to more than 60 GWs, says the State Electricity Regulatory Commission.
While a total of 100.4 billion kW hours of electricity was generated by wind power last year -- an increase of 35.5% over 2011 -- only 12.85 GWs was connected to the grid, compared to 2011's figure of 16 GWs
"In the past few years, wind farm development has been too rapid and grid construction has not been able to keep up. The huge gap put a lot of pressure on the grid," said Ma Jinru, vice-president and secretary of the board at Goldwind Science & Technology Co Group, one of China's biggest manufacturers of wind power equipment, China Daily reports.
In a news release Monday promoting a Shanghai wind power exposition, the deputy director general of China's National Energy Administration said that wind power is China's third largest source of electricity. "Wind power has become the third-largest electric power in China," Liu Qi said. "There is no electric power to substitute the position of wind power as number three, following thermal power and hydroelectric."
As part of the National Energy Administration's renewable energy development plan announced last August, China is aiming for 100 GWs of wind power to be connected to the grid by 2015, including 5 GWs of offshore wind power. Improved grid construction and dispatching, enhanced equipment performance help the wind power sector reach to reach the 100 GW goal, the news release states.
Also as part of the 2011-15 energy plan, State Grid Corp. of China will invest more than $80 billion to extend the ultra-high-voltage electricity transmission networks in North, Central and Eastern China, China Daily reports. Meanwhile, China's wind sector face challenges following a US decision to increase import duties on Chinese wind turbines.
In its final verdict in December on anti-dumping and counter-subsidy duties against wind turbine towers imported from China and Vietnam, the US Department of Commerce said that Chinese producers dumped towers in the United States and set anti-dumping duties of 44.99-70.63
"With rates of duty like this, it's impossible for the products of Chinese wind tower manufacturers to enter the US market," Zheng Kangsheng, secretary of the board of Titan Wind Energy (Suzhou) Co. was quoted as saying by China Daily. "The company's US market share will definitely decline sharply," he added.
Tuesday, 15 January 2013
Wind power deadline sees US firms rush to build turbines
www.bbc.co.uk
29 Dec 2012
US energy companies are racing to install wind turbines before a federal tax credit expires at the end of this year. Experts say that wind power has exceeded the construction of natural gas plants in recent months. However the financial incentive for wind could be lost as congress struggles to avoid financial deadlock.
Even if the credit is extended it is expected that new installations will decline in 2013. According to industry analysts, the federal government's production tax credit has played an important role in the expansion of wind power across the US since it was first introduced in 1992.
Wind passes gas
At that point there was less than 1.5 GWs of power generating capacity provided by wind across the country. That figure has grown dramatically. This year has seen around 12 GWs of wind power capacity installed, outpacing even natural gas projects which have boomed on the back of cheap shale.
The government subsidy works out at 2.2 ¢ per kW hour of power produced over ten years. This amounts to around $1m (£620,000) for every large turbine. However the deadline is absolute-to get the money the blades on new installations must be turning and generating power before the 31st of December.
"There's a lot of rushing right now to get projects completed by the end of the year", says Rob Gramlich, senior vice president at the American Wind Energy Association. "It is not a great way to run a business with this policy-induced uncertainty". The tax credit has proved contentious with some lawmakers criticising it as too generous. It lapsed previously in 1999, 2001 and 2003. Each time it lead to a collapse in new construction.
The American Wind Energy Association are hoping the tax credit will be passed as part of a compromise package of legislation to help the US avoid the so-called fiscal cliff. The say the most likely outcome is a short term extension of the subsidy. "There's a good chance we could get this extension, it is very hard to predict, but the industry is not making bets on the Congress getting it done", says Mr Gramlich,
Even if there is an extension there is likely to be a significant curtailment of wind installations in 2013. Wind energy companies say they need longer time frames to negotiate deals to sell the power they generate. Iberdrola Renewables is the second largest developer of wind power projects in the United States. The company is racing to finalise new wind installations in Massachusetts and New Hampshire. However the prospects for new turbines in 2013 are slim according to Paul Copleman, communications manager for Iberdrola.
"Even if the tax credit is extended, our new construction plans likely will be ramped back substantially in 2013 compared with the last few years. So much time has passed without certainty that a normal one-year extension would not be a game-changer for our 2013 build plans".
Some analysts argue that all subsidies to wind should end and the industry should stand on its own two feet. They say that the current arrangements mean that energy companies continue to make money even when there is a surplus of wind and the market price is negative.
Dan Kish is with the Institute for Energy Research, a body long critical of subsidies for renewables. He told BBC News the extension of the tax credit was expensive, unnecessary and destabilising to the electricity grid. "Wind produces power at a fraction of its stated capacity, and is increasingly adding unnecessary costs to consumers, just as it is in the UK", he said "They are creations of government and serve only to make their builders and owners wealthy at the expense of the public".
29 Dec 2012
US energy companies are racing to install wind turbines before a federal tax credit expires at the end of this year. Experts say that wind power has exceeded the construction of natural gas plants in recent months. However the financial incentive for wind could be lost as congress struggles to avoid financial deadlock.Even if the credit is extended it is expected that new installations will decline in 2013. According to industry analysts, the federal government's production tax credit has played an important role in the expansion of wind power across the US since it was first introduced in 1992.
Wind passes gas
At that point there was less than 1.5 GWs of power generating capacity provided by wind across the country. That figure has grown dramatically. This year has seen around 12 GWs of wind power capacity installed, outpacing even natural gas projects which have boomed on the back of cheap shale.
The government subsidy works out at 2.2 ¢ per kW hour of power produced over ten years. This amounts to around $1m (£620,000) for every large turbine. However the deadline is absolute-to get the money the blades on new installations must be turning and generating power before the 31st of December.
"There's a lot of rushing right now to get projects completed by the end of the year", says Rob Gramlich, senior vice president at the American Wind Energy Association. "It is not a great way to run a business with this policy-induced uncertainty". The tax credit has proved contentious with some lawmakers criticising it as too generous. It lapsed previously in 1999, 2001 and 2003. Each time it lead to a collapse in new construction.
The American Wind Energy Association are hoping the tax credit will be passed as part of a compromise package of legislation to help the US avoid the so-called fiscal cliff. The say the most likely outcome is a short term extension of the subsidy. "There's a good chance we could get this extension, it is very hard to predict, but the industry is not making bets on the Congress getting it done", says Mr Gramlich,
Even if there is an extension there is likely to be a significant curtailment of wind installations in 2013. Wind energy companies say they need longer time frames to negotiate deals to sell the power they generate. Iberdrola Renewables is the second largest developer of wind power projects in the United States. The company is racing to finalise new wind installations in Massachusetts and New Hampshire. However the prospects for new turbines in 2013 are slim according to Paul Copleman, communications manager for Iberdrola.
"Even if the tax credit is extended, our new construction plans likely will be ramped back substantially in 2013 compared with the last few years. So much time has passed without certainty that a normal one-year extension would not be a game-changer for our 2013 build plans".
Some analysts argue that all subsidies to wind should end and the industry should stand on its own two feet. They say that the current arrangements mean that energy companies continue to make money even when there is a surplus of wind and the market price is negative.
Dan Kish is with the Institute for Energy Research, a body long critical of subsidies for renewables. He told BBC News the extension of the tax credit was expensive, unnecessary and destabilising to the electricity grid. "Wind produces power at a fraction of its stated capacity, and is increasingly adding unnecessary costs to consumers, just as it is in the UK", he said "They are creations of government and serve only to make their builders and owners wealthy at the expense of the public".
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