Power stations operating `below capacity'

Sydney Morning Herald
Tuesday 6/4/2010 Page: 4

PROPOSED new baseload coal or gas-fired power stations in NSW may not be needed if existing plants were operated at higher capacity, according to the environment group Beyond Zero Emissions. State-owned Macquarie Generation and Delta Energy have received concept approval for new baseload power stations with combined capacity of up to 4000MW near existing plants at Bayswater in the Hunter Valley and Mount Piper in Portland, north-west of Lithgow.

The right to build these power stations, subject to final development approval, will be sold along with the electricity retailers EnergyAustralia, Integral Energy and Country Energy, and rights to the output of existing power stations, under the government's proposed energy reforms. But Beyond Zero Emissions' executive director, Matthew Wright, said many of the state's existing black coal-fired power stations were operated at lower capacity than Victorian brown coal-fired power stations, and the new baseload capacity was not needed.

"Since the establishment of the national energy market, Victorian generators have been able to dump cheap electricity into NSW," he said. "With a looming shortfall in national generating capacity, the NSW government is wanting to get in first, and crowd out potential new Queensland or Victorian generators, or emerging renewable energy supply." According to the most recent figures Macquarie Generation's 2640MW power plant at Bayswater is running at 69% capacity and its Liddell 2000MW plant at 57% capacity. Eraring Energy's 2640MW power plant operated at 67% and older power stations at Vales Point and Munmorah operated at even lower levels, 53% and 40% respectively.

On average, according to Beyond Zero, NSW coal-fired power stations are run at an equivalent of 63% capacity while Victorian plants operate at 85% capacity. Mr Wright said NSW had overcapacity of about 3000MW, roughly the equivalent of two Mount Piper power stations. The 2007 Owen inquiry into electricity supply found NSW would suffer a shortfall of generating capacity from 2013-14 and recommended privatisation of the state's generators and retailers to facilitate investment in new baseload capacity.

Australia `should lead' in solar energy push: Siemens

www.theaustralian.com.au
April 05, 2010

THE German industrial giant Siemens is urging Australia to build a massive renewable energy network to rival that of the Desertec Foundation project that will harness solar energy in northern Africa and deliver it to consumers in Europe. Siemens - - along with Deutsche Bank, Munich Re, ABB, and utility groups E.ON and RWE, among others - - has been one of the driving forces behind the $700 billion Desertec Foundation concept and the creation of energy "super-highways".

Siemens is active in Australia and has made four separate applications under the Australian government's Solar Flagships program, which aims to build two large-scale solar energy facilities by 2015. But chief financial officer Joe Kaeser believes Australia should be much more ambitious and consider its own "Austral-tec" project.

"Australia has everything it needs," Kaeser says, adding that Siemens has already held some preliminary discussions with the government and other corporates. "Australia should be in the lead (in solar energy) and showing the world how it works. If you source solar energy for nothing, and sell natural resources to other countries, it makes for a powerful business case."

Siemens is Europe's largest engineering group and is leading the push into green technology, from where it now sources some $25bn of annual revenues - - nearly one quarter of its global revenues. Kaeser says Siemens' push into green technology came in 2005 after the board analysed the global "mega-trends" and how the company might be placed in 50 years. "The push to sustainability is real. It is not a fashion."

Kaeser says Siemens' hunger for innovation is borne from need. Europe does not enjoy the rate of economic growth of China, or the natural resources of Australia. "Our natural resource is know-how." It spends $1bn on green-tech R&D each year. But Kaeser says the massive redistribution of wealth from new technologies, and the transformation of desolate solar-rich areas such as the Sahara into "economic treasures", will be fiercely resisted and the transition will not be easy.

"There is a lot of economic power behind the current technologies, behind coal-fired power plants, and the factories that produce CO2," he says. "These markets are threatened by a paradigm shift, and that can cause social problems. That is why the government needs to lead the way." He points to the experience of Denmark, which was burned by the oil crisis in the 1970s and supported massive investment in wind technology, where it now leads the world. He also points to Singapore, which with few natural resources in now turning itself into a "Smart City".

Carbon capture a `diversion'
ANOTHER to support a more vigorous push into renewables is professor Stefaan Simons, one of the world's leading experts in low-carbon technologies. Professor Simons addressed a Santos-sponsored event in Adelaide last week. His message is that the focus on carbon capture and storage (CCS) is a "dangerous diversion" that is stalling the transition to renewable energy sources and a highly efficient, low-carbon energy system.

Professor Simons is a specialist in the chemical engineering at the University College London and director of its Centre for CO2 Technology. He is currently on a global research fellowship with the Royal Academy of Engineering that includes time at Australia's Co-operative Centre for Greenhouse Gas Technologies, which is leading research into CCS.

However, he says CCS research (which accounts for more than half of the funds promised by the Australian government for clean energy technologies) is soaking up time, resources and funding that could be better applied in securing a low carbon future. He says CO2 capture is not fit for post-combustion at a large scale - - and therefore most existing fossil fuel plants - - but the real problem lies in technical and legal issues around storage. There will be a role for CCS, he says, but not as broad as its supporters make out.

"I challenge our energy policymakers to reassess whether large-scale deployment of CCS makes sense and whether we should continue to use fossil fuels as our primary energy source, or use these fossil resources to produce higher value forms of energy and chemicals. "We could then replace fossil fuel electricity production with that from renewable sources, at the same time reducing the need for CCS. We also need to mature our thinking, our innovation and our chemical industry so that CO2 becomes a valuable resource, rather than a waste product in need of disposal."

This, Professor Simons says, could provide an opportunity for Australia to use its expertise in coal and gas to lead in the development of to new and existing chemicals from CO2 so that CO2 becomes a valuable feedstock rather than a waste product. "It needs new business models, and policy and market support. If the coal and gas industries do not change, where will they fit into a renewable energy-driven society?"

Thin Film Solar Panels Take A Giant Leap Toward Affordable Renewable Energy

solar.coolerplanet.com
April 01, 2010

Two drawbacks to solar power were cost and the bulk of the panels, but newer panels, called thin-film solar panels are lowering the cost of solar and allowing new types of solar panels to be made. Some are flexible and can either be rolled up or formed into roof tiles, so it's hardly noticeable that you're powering your home with the sun!

Over the past decade continual breakthroughs have made the manufacture of thin-film solar panels less expensive while improving their efficiency in producing electricity. Some are even capable of rivaling the power produced by their heavy silicone counterparts. Abound Solar, a Colorado based company, has claimed they can produce thin-film photovoltaics at $1 per watt. That makes it cost-competitive with fossil fuels. By comparison, crystalline silicone panels cost roughly $4 per watt to make.

Most home installed systems convert 10% or 11% sun's energy into electricity. But it ranges between 8% and 20%, according to the National Renewable Energy Lab (NREL), which researches and tests new photovoltaic technologies. Traditional crystalline silicone photovoltaic panels (the ones on most homes) are more costly, partly because the silicone used in making them can comprise 40% to 50% of the total cost of the panel. Still, these silicone panels are the most efficient panels and can convert up to 20.3% of the sun's rays. Some thin-film photovoltaics are now reaching that level.

The lab set a world record in 2008 when it made a thin-film solar panel that was 20% efficient using a Copper Indium Gallium diSelenide (CIGS) semiconductor. The other promising technology is cadmium-telluride (CdTe), which has converted solar power at up to 16.8% efficiency. NREL scientist Ingrid Repins foresees that using the 20% efficient formula as the base, companies will be able to roll out kilometer-long sheets of solar cells that achieve 16% efficiency, while using the cheapest materials and emphasizing speed. Repins explains that the cost-savings achieved when the panels reach an average 16% efficiency is huge. The more efficient cells won't need to be as large and use less material. Both of which lower manufacturing and materials cost. And the smaller size also lowers installation costs, she says.

Since it takes less energy to make thin-film photovoltaics they should be able to make less-expensive solar panels for utility and residential uses, according to NREL. These new photovoltaics will be on the market soon. But thin-film solar is already available. Companies like Uni-Solar and SRS Energy are making thin-film solar panels in the form of roof shingles and tiles. And those backpacks and portable solar panels you buy to power your mobile devices while on the go are also thin-film photovoltaics.

Big companies are lining up to start producing thin-film photovoltaics. General Electric recently stopped making hard silicone panels and will begin producing cadmium telluride panels, based on PrimeStar Solar Inc.'s technology, a company GE owns most of.

The company plans to introduce the new panels in 2011. And it plans to be a high-volume producer of the new panels. "After having completed an exhaustive survey of the PV landscape, we determined that thin films were the optimum path for GE," said Danielle Merfeld, GE's solar research and development leader. The company thinks the cadmium telluride technology will allow it to produce low-cost, high efficiency solar cells.

Generation gap in rush of ideas - Research into sustainable energy technologies is powering ahead

Weekend Australian
Saturday 3/4/2010 Page: 4

IN the world of clean energy, it seems some researchers are working on a new generation of products even before their predecessors can establish a commercial foothold. Solar photovoltaic technology is a classic point. Australia has been the source of some of the best research and development in the world, particularly in the area of silicon panels and efficiency ratings. But just as new technology in the form of thin film solar is laying down a challenge for market dominance, a new and even cheaper form of solar PV, organic solar is being researched and developed in universities here and abroad.

The idea is to use organic compounds to capture the energy from the sun, using inexpensive and environmentally friendly materials that are portable and low cost. These can be used on flexible installations such as shade cloth, or painted on roof sheeting and window panels. Several research programs are being funded by state and federal governments in Australia and overseas.

Biofuels are also leaping to the third generation before the first can prove its commercial bona fides. While much is written about the potential effect on food sources of using corn-based ethanol for fuel, much research has been put into so-called second generation biofuels. These include agricultural waste and specialty crops such as Jatropha, while a new generation in the form of algae-based fuels is also being developed. MBD Energy, working with James Cook University, is confident it can develop algae technology that will absorb much of the CO2 emitted by coal and gas-fired power stations, as well as create valuable by-products such as animal feedstock and oils.

One of the themes of the cleantech industry this year will be the development and rollout of electric vehicles, not just producing new models with longer range batteries but the creation of networks that challenge the business conventions that prevail in the multi-trillion-dollar industry. Allied to this is the development of smart grids. These will allow individual users to monitor usage and revolutionise the use and sourcing of energy and allow the grid to reuse energy stored in EV batteries, for example, at times of peak demand. Energy efficiency is also expected to be a focus. The University of Melbourne is part of a global project that aims to reduce the amount of emissions used in telephony and the internet across the world by 99.5%, by introducing smarter data coding.

Another focus will be on the use of waste heat as a secondary power source and of deep-lying geothermal heat as a source for industrial, commercial, and even residential heating and cooling. Energy storage technology for intermittent providers such as solar and wind are also a focus, along with the development of relatively simply storage concepts such as using little-needed night-time energy to make ice, which can then be used during peak periods. A similar concept is being developed in India, where solar energy is used to pump water uphill, where it is stored and used to drive hydro energy installations at times of greater need.

Some of the more mind boggling technology developments contemplated revolve around geo-engineering, defined by the Royal Society as the "deliberate large-scale manipulation of the planetary environment to counteract anthropogenic climate change". In short, it means that if a clean energy revolution and the decarbonisation of the economy don't do the job, then dramatic measures will be needed to reduce the amount of carbon in the atmosphere or reflect heat away from the planet.

Among those technologies canvassed by a year-long Royal Society investigation released late last year are the development of artificial trees, shooting tiny particles into the atmosphere to deflect sunlight, The Royal Society is somewhat sceptical about the potential success of geo-engineering, and the concept is a contentious one in environmental and scientific circles because many of the proposals have unknown side effects.

There are two broad strands to the idea. One is solar radiation management, such as the particles idea, painting lots of human structures white, covering deserts with reflective material and placing shields or deflectors into space. These measures could potentially act quickly, although they do not address the root cause of climate change. But the Royal Society says they could be useful in an emergency to avoid reaching a climate tipping point.

The Royal Society says CO2 removal methods, such as artificial trees, ocean fertilisation, and land use management of the type being championed by Opposition Leader Tony Abbott and many scientists, could be preferable because they are likelier to return the climate system to its natural state, and so involve fewer uncertainties and risks. But it notes that none of these technologies has proven effective at an affordable cost and with acceptable side effects.

Winds of change picking up pace

Weekend Australian
Saturday 3/4/2010 Page: 4

SIX companies are going head on in a global competition sparked by climate change fears in which Australia offers a small, but valued playing field. The name of the game is wind farming, which has emerged from the past decade with a large ramp-up in equipment production despite the effect of the global financial crisis. The six leading companies are Denmark's Vestas, the US's General Electric, Spain's Gamesa, India's Suzlon and two companies based in Germany, Enercon and Siemens.

All are prizewinners and any of them can grab the biggest share of a market that is worth more than $US60 billion ($65.5bn) a year and is set to double by 2014 and again by about 2020. Australia has more than $20bn worth of skin in this competition, according to the latest government estimates of investment plans.

However, these developments are intended to be spread over 10 years. On present estimates, wind power could account for 10% of total global electricity output in 2020. Well out in front of the manufacturers' race today is Vestas, with more than 33,000 units installed in 63 companies, solidly ahead of GE, the next largest. Vestas claims it installs a wind turbine somewhere in the world every four hours.

Industry attention, however, is on Siemens, which claims it passed Suzlon into fifth spot last year data is still being gathered across the world and says it aims to be third among wind turbine makers in 2012. Already the German engineering giant, a leader in other energy manufacturing sectors, has claimed first place in delivery of offshore turbines, the new growth area for the industry, and is building wind equipment factories in the US and China. It also plans to erect plants in India.

China is the fastest growing market for the wind turbine manufacturers; it has jumped to fourth place in installed wind farm capacity behind the US, Germany and Spain, increasing development tenfold in four years. India, meanwhile, has moved to fifth place on the global wind development table. Still well behind these countries, Brazil, with a strong wind resource and 196 million people needing electricity, is tipped to become another big developer of the technology this decade.

Vestas is a substantial investor in wind factories in China, but its main target in the past few years is the US, where it has spent $US1bn on building factories. While ahead of Vestas in the US, where it has 40% of the market, GE is highly active in China, Europe and India. Spain's Gamesa, with a strong home base, is also hard at work pursuing market share in China and India.

Enercon, which is active in Australia, made headlines last year when it erected 6MW turbines at a wind farm in Belgium, the most powerful generating units by far in the industry. The company has strong footholds in North America and India as well as plants in Brazil, Sweden, Portugal and Turkey. The big six do not have the market to themselves. They are being strongly pursued by Sinovel, the Chinese manufacturer, which has had a meteoric entry to the field in the past decade, carried along by the growth of its domestic market and a burgeoning R&D facility.

Winds of change to power up state

Adelaide Advertiser
Saturday 3/4/2010 Page: 21

SOUTH Australia will have up to 1000 MWs of windpower being generated across the state by July. A study also has indicated that Eyre Peninsula has the potential to provide up to a further 2000MW of power, which is more than enough to meet Adelaide's daily average power consumption of just over 1500MW. Premier Mike Rann said yesterday the installed capacity on Eyre Peninsula potentially could be much higher using new, high-yield turbines.

A consortium headed by the Macquarie Bank is examining the potential for renewable energy projects in SA, especially Eyre Peninsula, in an attempt to capture an estimated $6 billion in green-energy funds. During his visit to California late last year, Mr Rann met green-energy groups interested in investing in SA projects involving wind, solar, wave and geothermal power Mr Rann said yesterday the combined investment by private energy companies in wind farms across the state since 2002 was now nearly $2 billion. "There are currently two more wind projects under construction with a combined capacity of 150 MWs," Mr Rann said.

The latest projects are Infigen Energy's 39MW project at Lake Bonney and the Roaring 40s 111MW stage-one project at Waterloo. "These wind farms will add to the 868MW veneration already installed - which means that total wind generation will pass the 1000MW mark in July," Mr Rann said. Mr Rann said the Macquarie Green Grid study indicated Eyre Peninsula had the sites and wind resources to add a further 2000MW of wind generation turbines operating above 35% capacity - the threshold needed to operate economically. "However, we must first have the ability to link these extra farms to the national electricity grid," he said.

Obama oil deal upsets all sides - Concessions aimed at bolstering climate bill

Age
Friday 2/4/2010 Page: 11

PRESIDENT Barack Obama's about-turn on offshore oil exploration drew scathing criticism yesterday from environmentalists and congressional representatives who argued that his policy would do little to secure the energy future of the United States.

It was a calculated stove to win political support for comprehensive climate legislation aimed at reducing greenhouse gas emissions while mandating a switch to renewable energy "Drilling alone can't come close to meeting our long-terns energy needs, and for the sake of our planet and our energy independence, we need to begin the transition to cleaner fuels now," Mr Obama said at his policy launch at Andrews Naval Air Facility in Maryland, just outside Washington, DC.

"I know that we can come together to pass comprehensive energy and climate legislation that's going to foster new energy, new industries, create millions of new jobs, protect our planet, and help us become more energy independent." But green groups and some Democrats said plans to expand drilling for oil along vast lengths of the North American coastline threatened marine life and coastal environs, and sent the wrong signal in the face of climate change. Republicans labelled the President's concession as too cautious. They said the additional exploration would do little to reduce US dependence on foreign oil.

The new drilling opportunities fall well short of the expansion proposed by George Bush in 2008, when Mr Obama, then a presidential candidate, condemned the plan as backWard looking. But he defended his change of heart, saying it was part of an interim solution as the US moved to tap new energy sources. The US had less than 2% of the world's known oil reserves, he said, but consumed more than 20% of current world production. "We are going to need to harness traditional sources of fuel even as we ramp up production of renewable home-grown energy." Mr Obama raised offshore drilling as a prospect for compromise on energy and climate legislation with Republicans in his January State of the Union address.

The Senate may now craft a new version of the stalled legislation. "The cynical view is that this is an attempt to buy a few more votes for a bill that would introduce carbon regulation," a spokesman for the American Gas Association, a Washington based trade group, said. The Republican leader in the House of Representatives, John Boehner, called on the President to lift the drilling ban on the west coast of the US. "Keeping the Pacific Coast and Alaska, as well as the most promising resources off the Gulf of Mexico, under lock and key makes no sense at a time when gasoline prices are rising and Americans are asking, 'Where are the jobs?'," he said.

A long approval process, which would demand time consuming environmental assessments, could delay drilling beyond 2012, however. Some Democrats, including long-time drilling opponent and New Jersey senator Robert Menendez, pledged to fight the exploration plan, describing it as dangerous. Environmentalists, too, complained. "While China and Germany are winning the clean energy race, this act furthers America's addiction to oil," Greenpeace executive director Phil Radford said. "Expanding offshore drilling in areas that have been protected for decades threatens our oceans and the coastal communities that depend on them with devastating oil spills, more pollution and climate change."

A cross-party group of senators are expected to introduce a new energy and climate bill to the Senate within weeks, after an earlier bill failed to win bipartisan support. Mr Obama has already backed the construction of eight nuclear power plants with $US8 billion ($A8.7 billion) of loan guarantees and promoted coal" target="_blank">clean coal technology in an attempt to broaden support for his climate proposals.

Japan plans nuclear power expansion

www.nature.com
31 March 2010

Proposal for eight new reactors and nuclear fuel reprocessing faces public opposition.

Like most countries that embraced nuclear power decades ago, Japan has soured on the technology in recent years. But prompted by worries about climate and energy security, the country's industry ministry last week placed a big bet on a rapid expansion of its nuclear power capability. When the draft energy plan is finalized and signed by the Japanese cabinet in June, it will stand as a roadmap for the country's new government, which campaigned on a platform of reducing carbon emissions by 25% below 1990 levels by 2020 - a promise that is unpopular with the business community. But despite the government's nuclear ambitions, individual reactors will still need approval from local authorities, which is far from certain.

Japan relies on imports for more than 80% of its total energy needs; the plan aims to reduce that figure to just 30% by 2030. "With the balance of energy demand changing dramatically we really have to think about energy security," says Ken Sasaji, director of the ministry's energy planning office. Japan already has 54 reactors with a total generating capacity of 49 GWs, accounting for about a quarter of its electricity supplies (see 'Japan's energy mix'). But following a series of accidents between 1997 and 2007, growing public resistance meant that only five reactors were built in the past decade. The new plan proposes building eight reactors by 2020 to supply an additional 11.4 GWs of electricity.

To ensure that those reactors have fuel, Japan forged a nuclear-energy deal in March with Kazakhstan, which holds the world's second-largest uranium reserves and mines about 20% of the world's uranium ore, making it the world's biggest producer. Japan has promised to supply nuclear-energy technology to Kazakhstan in return for a stable supply of uranium. And last week, Itochu, a Tokyo-based trading company backed by the government, bought a 15% stake in Kalahari Minerals, headquartered in London, which is developing a large uranium mine in Namibia. The mine is expected to begin producing more than 5,000 tonnes of uranium per year in 2013 - roughly 10% of the total uranium mined around the world in 2008.

Japan is also counting on its nuclear recycling programme, which recently started after years of failed efforts to convince local residents of its necessity and safety (see Nature 440, 138; 2006). In December 2009, a reactor on the southern island of Kyushu started burning mixed oxide fuel, made by mixing uranium with plutonium from spent fuel. And in February, the Japanese Nuclear Safety Commission gave its approval for a restart of the Monju fast-breeder test reactor in Tsuruga, which will use some of the neutrons generated during the fission process to turn non-fissile uranium isotopes into plutonium that can be extracted from the spent fuel.

There are also plans to squeeze extra energy from the country's existing reactors, some of which are around 40 years old. At a 19 March meeting of the US–Japan Nuclear Energy Steering Committee in Washington DC, the partners agreed to collaborate on studies aimed at extending the life of old reactors. But the Japanese government will face a struggle to secure public acceptance of its nuclear ambitions, which are open for public comment until 7 April. Confidence in nuclear power was shaken in 2007 when a magnitude-6.8 earthquake caused a shutdown of the Kashiwazaki-Kariwa plant in Niigata after radioactive cooling water leaked into the sea (see Nature 448, 392–393; 2007).

And fresh objections are being raised about Monju. After decades of experimentation, most countries with significant nuclear capabilities have given up on fast-breeder technology, partly because of safety concerns. Monju itself has been closed since 1995 when leaking coolant damaged the plant, and a cover-up attempt damaged the plant's reputation. With safety and earthquake-resistance tests completed in February, the Japan Atomic Energy Agency, which runs Monju, now only needs the local Fukui government to sign on.

On 11 March, however, 29 scientists opposed to restarting Monju released a letter on the Citi Investment Researchzens' Nuclear Information Center website claiming that checks of key pipes have been inadequate and that the current reactor set-up does not serve as a useful prototype for future fast-breeder reactors. The group argues that because Monju's construction costs were five times greater than a conventional reactor, a full-scale plant would have to be very different from the Monju protoype to be commercially viable.

Japan's situation contrasts with that of its neighbour, China, where more than 20 reactors are under construction and face little public opposition. China aims to reach at least 70 GWs of nuclear power by 2020. For Japan, eight new reactors over the next decade will be a struggle, says Takuyuki Kawauchi of the industry ministry's nuclear-energy policy division. "We can't just start putting reactors wherever we want," he says. "We have to get the understanding of the local residents, and that takes time."

USA and Vietnam agree to nuclear cooperation

www.world-nuclear-news.org
31 March 2010

The USA has signed with Vietnam for increased cooperation in the peaceful use of nuclear energy. Meanwhile, it has moved closer to opening nuclear trade with India with an agreement on nuclear fuel reprocessing. America's memorandum of understanding (MoU) with Vietnam was signed in Hanoi yesterday by Le Dinh Tien, Vietnam's deputy minister of science and technology, and Michael Michalak, US Ambassador to the country. In a statement, the US Department of State said, "This MoU will open the door for increased cooperation in such areas as the development of human resources and safety and security infrastructure, access to reliable sources of nuclear fuel, and the management of radioactive waste and used fuel."

It added, "Vietnam has demonstrated its commitment to the responsible expansion of nuclear power through careful steps taken in cooperation with the United States, among other international partners, towards the development of the robust nuclear infrastructure needed to oversee the deployment of its first nuclear power plants over the coming decades."

Speaking at the signing ceremony, Michalak commented: "Pursuant to the MoU, the United States and Vietnam will continue our current efforts to develop the regulatory and physical infrastructure needed for a safe and secure Vietnamese civilian nuclear power sector. This MoU will facilitate our two nations cooperating in areas such as requirements for power reactor and fuel service arrangements, including the establishment of a reliable source of nuclear fuel for future Vietnamese civilian nuclear reactors, allowing Vietnam to rely upon international markets for nuclear fuel services." He noted that the signing of the MoU is "the culmination of many months of detailed negotiations, building on several years of ongoing cooperation."

Michalak added, "I anticipate that our signatures on the MoU will serve as a stepping stone towards negotiation of a legally binding government-to-government Peaceful Uses of Nuclear Energy Agreement, known as a Section 123 Agreement, which would allow even broader and deeper nuclear cooperation between our two countries and would facilitate the participation of the US companies in the Vietnamese nuclear sector." Tien noted that Vietnam is "willing to cooperate with international partners in the field on the basis of respect to national independence, sovereignty and mutual benefits."

The USA and Vietnam have signed several agreements to boost nuclear cooperation over the past few years, including a 2007 agreement between the US Department of Energy's (DoE's) National Nuclear Security Administration (NNSA) and Vietnam's Ministry of Science and Technology (MOST) for cooperation and information exchange on the peaceful uses of nuclear energy. A similar agreement was signed in 2008 between the US Nuclear Regulatory Commission (NRC) and the Vietnam Agency for Radiation and Nuclear Safety (Varans). The DoE and NRC have also provided technical assistance to Vietnamese drafters of the new Atomic Energy Law passed in June 2008.

In addition to the USA, Vietnam has signed nuclear cooperation and assistance agreements with countries including Japan, France, China, South Korea and Canada. The Vietnamese government approved a nuclear power development plan in 2007, aiming for a 2000 MWe nuclear power plant to be online by 2020, and a general law on nuclear energy was passed in mid 2008. The plan calls for two reactors with a combined capacity of 2000 MWe to be constructed from 2014 at Phuoc Dinh in the southern Ninh Thuan province and come into operation from about 2020, followed by another 2000 MWe at Vinh Hai in the Ninh Hai district.

Inquiry call into waste from Anglesey nuclear power

news.bbc.co.uk
30 March 2010

A call for a public inquiry into how to deal with waste from a planned Anglesey nuclear power station has been backed by the Welsh Assembly Government. Proposals for a new reactor at Wylfa are welcomed by local politicians like AM Ieuan Wyn Jones and MP Albert Owen, but condemned by environmentalists. However, the assembly cabinet has been, and remains, generally opposed to nuclear power. But an assembly government spokesperson said it would engage with the project. She said this would ensure maximum local and regional benefit from the building and operating of the new power station.

The decision on Wylfa will be a matter for the UK government and the Infrastructure Planning Commission (IPC) planning process. The assembly government spokesperson said: "We have a way to go in justifying to the public what must be done in dealing with future nuclear waste. "We therefore support the call for a public inquiry on dealing with the waste arising from new nuclear build on the grounds of concern over the safety and security of its management."

It also remained of the view that exploiting potential for renewable energy "reduces the need for other, more hazardous, forms of low carbon energy and obviates the need for new nuclear power stations in Wales." Mr Jones, who is also Plaid Cymru leader, and deputy first minister and the economy and transport minister, said it would be "essential" that local businesses benefit from contracts on the site and supply chain opportunities. He said these would need to "built into" any planning consents. Mr Jones added: "Given the job losses that we have had on the island during the last 18 months this economic boost would be very welcome."

Waste concern
However, his view is in contrast to the position taken by his party, and a Plaid spokesman said: "Plaid remains opposed to nuclear power." But the Plaid spokesman added that the party "understands" that Mr Jones, the prospective general election candidate, Dylan Rees, and party members on the island have to "give full consideration to the needs of its communities and economy" when taking a view on any developments. Albert Owen MP said the announcement by Horizon Power Nuclear Power that Anglesey was its "number one site" for a new station was "a vote of confidence" in the island's community and workforce.

He said: "It is also a vote of confidence in the UK government's energy policy on new nuclear and its vision in developing a low carbon future. "Getting to this point did not happen by accident, but by design; through strong campaigning." Mr Owen added: "Safety is, of course, top of the agenda, as is the economic impact with the new skills and thousands of new jobs such a development would bring, in creating apprenticeships, jobs for life in construction and generating jobs through the supply chain.

"Being the number one site means additional benefits. For example, a stimulator can be based on the island and used as a model for other locations and become a centre of excellence for the industry". Gordon James, director of Friends of the Earth Cymru, condemned the scheme and Mr Jones's support for it. He said it would be a "dangerous distraction", diverting political attention and scarce resources from better solutions.

He said no-one had yet "convincingly addressed the massive problems of hazardous waste, terrorism and nuclear proliferation" and said that "allowing this nuclear power station to go ahead would seriously undermine democracy in Wales". "This decision would be imposed upon us by the unelected and unaccountable Planning Infrastructure Commission (IPC), against the wishes of the Welsh Assembly Government. "We find it incredible that Ieuan Wyn Jones can support this."

Legal threat
Greenpeace said the nuclear industry could not change the fact that nuclear power is "eye-wateringly expensive" and that there's "no solution to dealing with nuclear waste". "These are very real problems to which the nuclear industry has no answers," he said. Friends of the Earth warned the UK government it was likely to take legal action against what it calls "the seriously flawed IPC process." Conservatives said the development would "of course be welcome news" for the local economy, but "we should not pretend it will provide a quick fix to the current economic difficulties facing the island.

A Tory spokesperson said: "An earlier decision by the UK government on new nuclear power stations might also have saved jobs at Anglesey Aluminium which relied on the plant for power." Welsh Liberal Democrat environment spokesman Mike German said his party opposed nuclear power and believed "the massive investment required would be better spent on creating jobs that will deliver low carbon energy quickly, safely, cheaply and reliably for the area and Wales".

Mr German said: "We've seen a lack of ambition from this government in pushing for cleaner forms of energy production that can provide jobs for people in the area. "Nuclear power is not the answer to Wales' energy needs as there are plenty of unseen costs - the cost to people's health and the environment - which cannot be paid for." He said: "We've seen a lack of ambition from this government in pushing for cleaner forms of energy production that can provide jobs for people in the area."

Ohio plugs wind power on Lake Erie

www.businessweek.com
March 29, 2010

Ohio officials outlined plans Monday to put Lake Erie, the shallowest of the Great Lakes, at the forefront of offshore wind power development. Gov. Ted Strickland and U.S. Sen. Sherrod Brown joined industry and education leaders to detail tax-cut and regulatory measures to jump-start wind power development on Lake Erie. The lake's comparatively shallow depth is seen as an advantage when erecting towers to produce wind power. Strickland said his proposal to eliminate the tangible personal property tax on wind and solar generation equipment would make Ohio competitive in developing wind power.

The measure, now before state lawmakers, would cover wind and solar facilities where ground is broken this year and energy is being produced by 2012. Last week regulators approved the state's first large-scale wind farms, all in western Ohio: two farms in Hardin County and an operation in Champaign County. Construction is scheduled to begin this summer. Under Ohio's alternative energy plan, 25% of electricity sold in the state must be generated from alternative energy sources by 2025.

Brown said legislation he is backing in Congress would expand federal tax incentives for offshore wind development. The measure will provide a guide for federal agencies coordinating the development of the industry, he said. Ohio already leads the nation in the number of clean-energy jobs funded by the federal economic stimulus package, Brown said at a news conference at the Great Lakes Science Center, which has a 150-foot tall wind turbine tower. He urged people to look beyond the upfront cost of developing wind power and other clean-energy sources, saying it could create jobs in the U.S, energy industry and Americans already are spending money to buy overseas oil.

According to the U.S. Energy Information Administration, 57% of the petroleum used in the U.S, in 2008 was imported, with 45% of imports coming from the western hemisphere, 22% from Africa, 21% from the Persian Gulf and the remainder from other sources. "As we develop this industry, instead of importing wind turbines from China and other places, we're going to be doing the development in this country," Brown said. Cuyahoga County Prosecutor Bill Mason, working with the Lake Erie Energy Development Corp., released a request Monday seeking proposals from developers for an initial wind-power project off Cleveland. The goal is to reduce startup costs for developers and make wind power attractive.

Pakistan in ‘civil nuclear deal’ with China

www.dailytimes.com.pk
March 30, 2010

ISLAMABAD: Pakistan has entered a civil nuclear deal with China for the establishment of two nuclear power projects of 640 MWs in Chashma, Daily Times has learnt. The breakthrough deal – under which Pakistan would be provided a loan, technology and installation facilities – was finalised ahead of the latest round of the Pak-US strategic dialogue, as the federal cabinet granted financial approval at a meeting on March 24. Sources privy to the deal said the federal cabinet had approved an inter-government framework agreement on the financing of 'Chashma Nuclear Power Project 3' and 'Chashma Nuclear Power Project 4' with China. The sources said under the agreement, China would provide 82% of the total $1.912 billion financing to Pakistan as a 20-year soft loan, with an eight-year grace period.

In a bid to guarantee financing for the two plants, the inter-government framework agreement requires both countries to enter three loan agreements. Under the first loan agreement, Pakistan would be provided $104 million with an annual interest rate of 1%, management fee of 0.2% and a commitment fee of 0.2%. Under the second preferential buyer credit agreement, Pakistan would get $1 billion with an annual interest rate of 2%, a management fee of 0.2% and a commitment fee of 0.2% – while the third buyers credit agreement would provide Pakistan $474 million with an annual interest rate of 6%, a management fee of 0.75%, a commitment fee of 0.5% and an insurance rate of 7%.

However, according to the inter-government framework agreement, the annual composite interest rate would not exceed three% in any case. The sources said that frequent visits by President Asif Ali Zardar and Prime Minister Yousaf Raza Gilani helped secure the deal. They said the Executive Committee of the National Economic Council (ECNEC) had already approved the two projects. The Pakistan Atomic Energy Commission would be the executing agency for the establishment of the two plants – which would be completed in eight years. The sources said each 320-MW unit would contain a nuclear steam supply system, a turbine-generator set and the associated auxiliary equipment and installations.

U.S., India reach agreement on nuclear fuel reprocessing

www.washingtonpost.com
March 30, 2010

NEW DELHI - - India and the United States announced Monday the successful conclusion of negotiations granting rights to India to reprocess spent nuclear fuel, a new step toward opening nuclear commerce between the two countries, potentially worth billions of dollars. The accord is part of the historic civilian nuclear-energy agreement that ended more than three decades of nuclear isolation for India by facilitating its access to nuclear fuel and technology, even though it has not signed the Non-Proliferation Treaty. The agreement, negotiated for more than nine months, lays out conditions to safeguard against the diversion of American nuclear fuel into India's weapons program, but critics warned that the accord would create new dangers of spreading nuclear materials.

The U.S. State Department and India's Department of Atomic Energy released a short statement announcing the deal. Timothy J. Roemer, U.S, ambassador to India, said it was "part of the great, win-win narrative of the U.S.-India global partnership." Last year's agreement raised hopes of new business deals for U.S, companies, but so far those have not been fulfilled. Although the nuclear deal was signed in 2008, and two sites have been identified by India for U.S, reactors, no American company has signed contracts. India has yet to pass a controversial nuclear-liability law and give a letter of assurance on nonproliferation, a licensing requirement that governs all commercial nuclear exports. Meanwhile, India has signed deals with state-owned French and Russian nuclear companies.

Monday's announcement comes just two weeks before the Obama administration is scheduled to host an international summit on nuclear security. Sources in the Indian and American nuclear power industries said India has secured significant concessions in the reprocessing accord. The sources spoke on the condition of anonymity because the details have not been made public. One element is that the reprocessing will not be monitored by the United States directly, but by the watchdog International Atomic Energy Agency (IAEA) in Vienna, according to a source in the U.S. nuclear industry. "Indians did not want direct American oversight with an American flag on them. It is a symbolic, sovereignty issue for Indians," said the source, who is familiar with the negotiations.

The United States follows this model only with Europe and Japan. "India is now in a special circle. This is a big deal," said Ted Jones, director of policy advocacy at the U.S.-India Business Council. Another thorny issue that slowed negotiations was that India insisted on having more than one reprocessing plant, saying it was risky to transport fuel from one place to another through densely populated regions. American negotiators initially resisted, but the Indian argument prevailed, said an official in India's state-run nuclear power company.

Many nonproliferation advocates have expressed concern about how India would handle the plutonium that would be extracted from imported spent fuel, which can be used to make nuclear bombs. "At a time when nuclear terrorism and proliferation concerns are only increasing, the United States should be doing everything it can to stop existing reprocessing, not facilitate more," said Edwin Lyman, an expert on nuclear proliferation at the Union of Concerned Scientists.

He said it remains unclear what would be done with the plutonium produced by an Indian reprocessing plant. Although India has a breeder reactor capable of using plutonium as fuel, India has refused to put that reactor under the supervision of the IAEA. India has pledged not to use the plutonium for its weapons program, although it diverted civilian nuclear fuel to build its first nuclear weapons three decades ago.

The pact will go into effect unless Congress passes a resolution of disapproval. "We've debated and voted on this twice," said Rep. Gary L. Ackerman (D-N.Y.), chairman of the House Foreign Affairs subcommittee on the Middle East and South Asia. He said Congress would not do so again. But, he added, he was disappointed that India has not adopted measures to limit U.S. nuclear companies' liability. "We were hoping the Indians would be doing a lot better on that score," he said.

Out-of-pocket green home auditors plan legal action

Canberra Times
Tuesday 30/3/2010 Page: 2

The Rudd Government could face a class action lawsuit from home sustainability assessors left financially out of pocket by the suspension of its flawed Green Loans scheme. A campaign website has been set tip by a group of assessors, with a Western Australian lawyer enlisted to lead the bid to take legal action against the federal environment department. So far, 180 people who incurred debts as a result of the scheme's training, insurance, registration and equipment costs have signed up to take part in a class action.

Fieldforce, the biggest business operating under the loans program, is also seeking compensation, claiming changes to the scheme have put 500 jobs at risk. The loans component of the program was axed last month. The Government also announced the number of assessors would be capped at 5000, with each assessor able to conduct only five home audits a week. Australian Greens deputy leader Christine Milne said thousands of people had been plunged into debt after paying more than $3000 to train as green home auditors under the scheme.

"We have received hundreds of heart-breaking entails and letters from people who are in terrible financial trouble as a result of the Green Loans scheme," Senator Milne said. "We have letters from people who invested savings, borrowed money from their parents or mortgaged their house to train as home assessors. They are utterly crushed."

The $175 million loans program is part of the same energy efficiency package as the Government's $2.7 billion home insulation scheme, which was dumped last month after being linked to four deaths and more than 100 house fires. Both schemes were part of the Rudd Government's $42 billion economic stimulus package. The Green Loans program aimed to cut energy and water use by training and paying assessors to conduct free home audits. The assessors advised householders on applying for interest-free loans to finance changes such as installing solar panels, grey water systems and rainwater tanks.

Following questions raised by Senator Milne and Simon Birmingham during a Senate estimates, the program is being investigated by the Auditor-General and a Senate environment committee inquiry. Federal Climate Change Minister Penny Wong has also called for "a frank assessment of the program". Australian utility and business services group, UXG is seeking compensation for assessors working under its subsidiary, Fieldforce Services. The company's finance director Mark Hubbard told business media yesterday Fieldforce had been in discussions with the Government "for some time" regarding compensation.

The company has suggested to the Government it could take over running a revamped Green Loans program. "One form of compensation could be its delivering the program entirely," Mr Hubbard said. During the recent Senate estimates hearing it was revealed Fieldforce's call centre had preferential direct email access to the federal Environment Department to book home assessments, while other companies said they spent up to three hours on the telephone trying to book audits. They claimed the preferential arrangement allowed Fieldforce to secure up to 30% of audits.

Siemens to build UK wind turbine plant

www.guardian.co.uk
29 March 2010

The government will receive another boost to its green manufacturing momentum this week when Siemens of Germany announces plans to create hundreds of jobs in Britain and invest more than £75m in a new wind turbine plant. The move comes despite claims made today by the EEF, the manufacturers' organisation, that the UK tax system is still stacked against manufacturing and needs a shake-up if the economy is to become less geared towards financial services. The Siemens factory has particular significance because it shows Britain can beat off competition from Denmark and Germany to house a plant capable of making a new generation of extra-large blades.

The facility will demonstrate, too, that Britain can be at the centre of the German manufacturer's worldwide wind ambitions, because Siemens already has a wind power training centre in Newcastle upon Tyne and a global centre for offshore grid connections in Manchester. It is also sponsoring significant research work into renewables at Sheffield and Keele universities. Siemens declined to comment ahead of an announcement but well placed sources said that a deal had been struck at the highest possible level of government for the company to locate a facility in Britain, probably on the east coast of England.

The decision comes after months of talks – including meetings at 10 Downing Street with the Siemens president, Peter Löscher – and is believed to have been finalised as a result of an important change in the budget last week, which brought public grants for ports to build green manufacturing hubs around them. The Siemens facility is expected to create 700 direct jobs and perhaps as many as 1,500 more in the supply chain. The plans will be announced only days after GE, the American conglomerate, announced a similar initiative in Britain, with investment of £100m, creating 2,000 jobs. Mitsubishi of Japan and Clipper Windpower of the US have also announced schemes to make bigger and better blades that could bring down the cost of producing wind offshore.

Big utilities such as E.ON and RWE have won acreage under the Round Three (R3) licensing scheme to develop wind farms many miles off the coast of Britain. But some have warned that the economics remain fragile, given the deep water levels and other factors involved, unless development costs can be driven down. Alistair Darling announced £60m worth of grants in the budget to develop onshore manufacturing around dock areas, as well as a plan to create a green investment bank that would be capable of taking equity stakes in R3 schemes.

Some of these financial incentives seem to have been enough to persuade Siemens to build in Britain, going some way towards repairing the damage done by Vestas' decision to close the UK's only functioning wind turbine factory last summer in the Isle of Wight. There has also been dismay that 90% of the supply contracts for Britain's biggest offshore wind farm, the London Array, went abroad, many of them to Siemens in Germany and Denmark. The British wind power industry has estimated that eventually 70,000 green-collar jobs could be created on the back of more than £100bn of private sector investment needed under R3 proposals.

But the report out today from the EEF, entitled "Tax reform for a balanced economy", says that for UK manufacturing to succeed in the future, a range of reforms to the system of investment allowances will be needed. The engineering sector also wants a cut in corporation tax, an increase in VAT and a return of the top rate of income tax to 40p.

The EEF warns that failure to tackle the tax system will stop the economy from being rebalanced away from the City and encourage companies to move overseas. "While there have been some helpful changes to the tax regime in recent years, we still lack a coherent tax system that encourages manufacturers to invest and sends the signal that they should be doing it here," the EEF's director of policy, Steve Radley, said. "The next government must think and act differently. In particular, it can achieve much larger benefits from any new measures if its approach is more predictable and transparent."

Overview of onshore and offshore wind power

www.glgroup.com
March 28, 2010

Potential for Wind
Professor Mark Jacobson from Stanford University recently shared that the potential energy from all wind over land in high-wind areas outside Antarctica is between 70 and 170 TW. To put this in perspective, currently the entire world energy demand is around 13TW and it is predicted that we will be at 17TW by 2030. Of course a lot of the potential is in off-shore wind as most of the prime land in the developed world has been used up.

In their recent report, Credit Suisse concluded that "Wind energy is the second most economical power generation source… However we note its limitation not only as an intermittent source, but the high probability that on peak energy use days (for example, when it is very hot or very cold), wind resource tends to be lower than usual. In addition, transmission investment would be required because wind resources tend to be far from where the electricity is needed."

On-shore Wind
To-date we have an installed a little more than 100 GWs of on-shore wind capacity from a total potential of 1,000GW. For comparison, in 2007 the total electrical generation capacity in the U.K, was 80GW (based on latest IEA data). It is generally accepted that on-shore wind can compete with traditional generation sources, without subsidy, in areas where wind speeds are high enough. However, subsidies in the form of feed-in tariffs have clearly helped increase adoption in many industrialized regions.

Some of the potential problems with on-shore wind is that most of the prime real estate has been used up. Moreover, like most RE projects, the implementation of these sources are capital intensive – requiring substantial up-front investments which makes ROI vulnerable to interest rates. In the current climate, financing projects at a cost that makes economic sense will be challenging absent policy support via subsidies and incentives.

Furthermore, as most of these wind-farms are far from consumers, the cost to connect to the grid should also be factored in. Longer term, blade and turbine supply may challenge the supply chain. Innovation is also required to reduce exposure to volatile commodities (steel/copper) that go into the manufacturing of these systems. When looking at on-shore wind, it is interesting to consider the footprint of various RE generation sources to meet consumption. The following maps shows the footprint of RE sources if we were to power 100% of on-road vehicles and 50% of all US Energy from Wind.

Offshore Wind
As mentioned, a lot of prime land based locations have been exhausted, so the next place to look for wind is off-shore. Wind is stronger and a lot more consistent off-shore which makes it the natural next fit for wind-power. However, it does have some logistical and design challenges such as the high cost of running sub-sea cables to connect to the grid along with the harsh environmental conditions that can exasperate wear and tear on the equipment.

As discussed at the World Economic Forum, significant work by Siemens, Vestas REpower and others have resolved many of the reliability issues by strengthening and improving components and insulating internal mechanisms from salt laden sea air. This has come at a cost though with considerable compromises made on weight and upfront costs.

Just as the oil and gas industry had to master deep water operations to build and maintain off-shore oil and gas platforms, the off-shore wind industry faces similar challenges which will have an impact on the cost to operate and maintain such systems. This reality in effect further increases the upfront capital expenses needed to get such projects going (ROI will be interest rate sensitive) with the potential risk of higher costs during project maturation related to maintenance and repair activities.

Experts at Davos concluded that in the foreseeable future, off-shore turbines will have lower profit margins than onshore turbines, and as long as onshore development continues to be healthy, turbine manufacturers will focus on producing onshore turbines, which may lead to potential bottlenecks for offshore turbine projects.

With this background information, it is important for US Investors to recognize that state tax and financial incentives, as well as state renewable portfolio standards (RPS MetOcean), will have an important effect on this resource. Furthermore, as larger and more efficient turbines erode the grid parity cost premium for wind-power, federal tax incentives and other subsidies will increase new wind installations.

Of the various policy drivers, it appears that State RPS MetOcean may be the most effective driver for this technology in the United States. Of course, each state must direct policy and incentives to address constraints such as the wind resource locations and quality of such locations, cost of traditional generation sources, electricity growth projections, the willingness of power utilities to integrate wind into their network, permitting and siting of wind farm locations, and the rules that govern the transmission system.

Largest First Solar Photovoltaic Power Plant In Spain

www.i-newswire.com
30/03/10

The Spanish system integrator, Assyce Fotovoltaica, is constructing the largest FirstSolar free-field solar power plant in Extremadura, with a capacity of more than 26 MW. The power plant with a land area of 69 hectares should be completed by the end of the year and will generate more than 42 million kW-hours of electricity per year.

"The area offers very good conditions for photovoltaics," explains Luis Garrido, managing director of Assyce Fotovoltaica. "Due to the high level of solar radiation in the south of Spain, we can expect a very good yield of electricity." The electricity yield will also benefit from the implementation of a new transformer technology. "In contrast to traditional power plants, electricity loss is considerably reduced," says Luis Garrido. Assyce is also implementing in this project the worldwide established inverter system technology from market-leader SMA Technology AG, based in Kassel, Germany. 36 transformer stations will be built up on the 69-hectare site.

With more than 337,000 modules capturing solar radiation, Assyce Fotovoltaica, currently the only FirstSolar system integrator in Spain, is putting its trust in FirstSolar's thin film technology which has already proven its worth in many other solar power plants. "The modules are very effective and durable and they are perfect for use in hot climate regions," explains Luis Garrido. The FirstSolar modules offer a high level of operating reliability for the project. Assyce Fotovoltaica has been working together with FirstSolar with excellent success for years. Basically this partnership makes the realisation of this remarkable large-scale project possible.

The construction of the free-field solar power plant began at the end of January. The whole power plant should be completed by the end of the year at the latest. With the eco-friendly solar electricity over 30 tonnes of CO2 could be saved every year and the electricity yield is enough to energize more than 14,000 four-person households for a whole year. "We are making an important contribution to the climate protection and to the expansion of renewable energy resources," explains Luis Garrido. "Power from the sun always has a future and will remain an important pillar of renewable energy."

Due to the limitation of 200 MWs per year for new free-field solar power plants (since the end of 2008), Assyce is particularly excited about being able to construct a power plant with a dimension of 10% of the total annual volume together with FirstSolar. Assyce Fotovoltaica is one of the pioneers in the Spanish free-field solar power plant market. The company, based in Padul (Granada), has already constructed more than 12 solar power plants all over Spain over the last few years.

Smart Grids To Overhaul Power Sector

Australian
Monday 29/3/2010 Page: 26

JUST as mobile phones allowed the long-standing business models of the telecommunications industry to be broken, so it seems that the emergence of electric car networks and smart grids will turn the multi-trillion-dollar car and energy industries on their head. No longer will these industries be dominated by the old carmakers, petroleum groups and centralised utilities. Indeed, they seem destined to follow the path of AT&T and Telstra broken up, downsized and desperately defending a declining traditional business while trying to match wits and expertise with innovative and fast-moving competitors.

How exactly this plays out in energy markets is exercising the thoughts of strategists everywhere, fascinated and animated by the potential incursions of Google, which now has a generator's licence in the US, and the likes of India's mobile phone group Airvoice, which is involved in a joint venture to build $50 billion worth of large-scale solar and wind capacity. One of the principal technologies that will allow these dramatic changes is the development of the smart grid, essentially an energy network that allows communication, monitoring, control and two-way sales. GE's Bob Gilligan, who heads the company's push into digital energy, describes it as an "energy internet".

But how will smart grids affect the average consumer, apart from rendering the electricity bill as impenetrable as the mobile phone bill? Gilligan says it could reduce the size of the bills, lead to the purchase of more efficient appliances and prioritise their use at different times of the day. Portugal is now one of the most advanced renewable nations in the world, producing 44% of its energy needs from renewables on one day last year, and recently lifting its annual target to 31% by 2020.

Logica's Jose Antunes, who led the technology side of Portuguese utility EDP's Invogrid Project, says one of the most interesting developments has been the emergence of the "prosumer", home owners equipped with solar panels and wind turbines who are now using the smart grid to sell energy back into the network for five times the price it would cost them to buy. So far, there are 100,000 such prosumers, and the monthly online "auction" of new positions has to be closed down within an hour.

"Consumers are able to reshape their behaviour in way which allows them to save, reduce consumption at peak time, and allows utilities to better manager their networks," Antunes says. "If you can do that in such a way which means you no longer have to build a $1bn peaking plant, then you can start to understand the benefits of smart grids."

GE's Gilligan says smart grids will be essential as the world moves towards electric vehicles and electric car networks, which will probably be charged in off-grid hours and could conceivably sell energy back into the grid to cope with peak demands. Gilligan says smart grids and smarter usage will allow the current power generating sources in the US to support the transition of cars to EV. This suggests the businesses that dominate the energy industry of the future may not be the biggest power providers, but those with the smartest software. "We are seeing a massive business change affecting a very large set of infrastructure businesses," Gilligan says.

China in the lead on green energy spend

Adelaide Advertiser
Saturday 27/3/2010 Page: 84

CHINA has taken the lead in investments in clean energy - spending nearly double what the US did last year - as it ramps up projects in renewable and traditional energy, a report out yesterday says. China's investment and financing for clean energy rose to $US34.6 billion last year, out of $162 billion invested globally, the report by the non-profit Pew Research Center Charitable Trusts says. US spending ranked second, at $18.6 billion, with European nations also recording strong growth. The report comes as China is clinching energy and resource-related deals meant to help ensure access to the commodities needed to keep its fast-growing economy booming.

Its offshore oil and gas company, CNOOC, this week agreed to buy 3.6 million tonnes of liquefied natural gas a year, for 20 years, from an Australian energy project operated by BG Group. The deal is estimated it at $80 billion. The US leads on installed renewable energy, with 52.2 GWs of wind, small hydro-electric, biomass and waste generating capacity, the report says. China quickly is closing the gap, as a doubling in wind energy capacity alone boosted its own installed renewable energy capacity to 49.7 GWs last year.