Archive for renewable

Power bill gets green makeover in CA Senate

With almost no public attention, the California Legislature took a significant step yesterday (May 28) that could help corporations and universities make a complete transition to renewable energy. The Senate Appropriations Committee voted to approve SB 286 with a major amendment requiring that all power sold under the bill to be 100 percent renewable.

Overall, the bill would allow large electricity users to contract with independent power providers through the state’s Direct Access (DA) program, circumventing their local utilities, for an additional statewide total of 8,000 GWh of all-renewable power.

The bill now does exactly what I’ve worked with others to advocate — in a Sacramento Bee op-ed (co-authored with Greg Staple, my colleague at the American Clean Skies Foundation), in the halls of the State Capitol and on this blog.

The text of the amended bill isn’t out yet, and I will post it as soon as it’s available. But the staff analysis published online today summarized the new amendment this way: “Require that all additional DA service be from renewable sources as defined in the RPS (Renewable Portfolio Standard) program.”

What does this really mean? No, it isn’t a complete game-changer. But yes, it will be an important addition to the state’s overall strategy. Consider that the extra 8,000 GWh would lead to greenhouse gas reductions equivalent to a 2 percent rise in the RPS, while renewables now comprise about 24 percent of the statewide power mix. Democratic leaders will need all the help they can get to reach their new goal of 50 percent by 2030.

Yesterday’s decision reflects complex legislative maneuvering. The Appropriations vote moved the bill off the committee’s suspense file and sent it to the Senate floor for a full vote. The suspense file is essentially a legislative black hole, in which the fate of all bills in the file is decided by the Senate leadership before the meeting with zero transparency. It’s the proverbial smoke-filled back room. Whether this process is good or bad is not my point here. But the decision to drastically amend SB 286 suggests that the bill was carefully evaluated by the Committee chair, Sen. Ricardo Lara, and his close ally, Senate President Pro Tem Kevin de León, according to its potential impact on de León’s top legislative priority this year: SB 350, his landmark bill on greenhouse gas emissions reduction. Their apparent conclusion was that any new Direct Access should give the maximum boost to SB 350 — i.e. by being all-renewable. The bill’s author, Sen. Robert Hertzberg (D-Los Angeles), had no choice but to go along.

The switch to 100 percent marks a sharp turnaround for Hertzberg. He introduced SB 286 in February as a mostly brown-power bill, supported by a conventional brown-power alliance of industry groups that simply want cheap electricity with only the legal minimum of renewables. It was a largely Republican, pro-deregulation coalition very similar to the backers of the state’s big deregulatory leap in the late 1990s — which crash-landed in the power crisis of 2000-01. The additional power sold under the bill’s initial version would only have to comply with the state’s RPS, which currently mandates about 24 percent renewables. Then in early May, Hertzberg raised the bar to 51 percent renewables after he ran into opposition in the Senate Energy Committee. The new move to 100 percent risks alienating some of the bill’s industry supporters, some of whom quickly indicated that they are unhappy and may withdraw their backing.

So the bill’s politics have changed along with its substance. A much greener support coalition needs to be organized to help push the bill through the remaining Senate and Assembly votes and to persuade Gov. Jerry Brown to sign it. This effort will be a key test of California’s clean-energy companies as well as the environmental organizationsthat have doggedly pushed the state’s tech firms to go green. Until now, California firms that have seen the light on renewables have found it surprisingly hard to green their in-state power sources, as I have written here and here. But if the amended SB 286 can become law, these firms can become real drivers of the state’s clean-energy transition. They will be able to demonstrate their environmental leadership where it counts most — at home in California.

Solar facility that could power 500 Marin homes

By Janis Mara, Marin IJ

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Roy Phillips, president of REP Energy, leads a tour of an abandoned quarry on June 9 in Novato. His company, REP Energy, wants to build a solar energy facility at the site near the McIsaac Dairy west of Novato. The quarry, no longer in use, was mined for the mineral serpentine, a source of asbestos. (Frankie Frost — Marin Independent Journal)

A proposed solar facility just outside Novato that could generate enough electricity to power more than 500 Marin homes is up for approval at the Marin Planning Commission meeting Monday.

Located on the isolated grounds of a former rock quarry, the solar farm would have 4,272 solar panels up to 6 and a half feet high on 11.5 acres of the 952-acre quarry. The $6 million project would generate 1.98 megawatts of electricity, delivered to Marin Clean Energy via nearby power lines.

The quarry was once mined for serpentine rock, which contains asbestos. Quarry operations shut down in 1990.

Installations like the solar project “are a good way to use formerly disturbed locations” like the quarry, said Andrew Campbell, the executive director of the Energy Institute at Haas, a research and teaching facility at the University of California at Berkeley.

Campbell said the proposed location also was beneficial because it is close to the people who would use the energy.

“Having the generation close to an area where consumers are also has benefits, since some power is lost when it is transmitted over long distances,” the executive director said.

The site is west of the city of Novato, east of Stafford Lake and about a mile north of Novato Boulevard. It is not visible from the road. County staff has recommended that the permit be granted, with some qualifications.

Crawford Cooley and Beverly Potter, who own the former quarry, would lease the land to San Rafael-based Danlin Solar, along with San Rafael-based REP Energy. Those two companies would own and build the solar installation.

“That’s a pretty typical arrangement,” Campbell said.

“Solar is a green energy source, no doubt about it. There is no pollution or greenhouse gas emitted at the place where you are generating the power,” the executive director said.

“This would be quite a win if it happened. The people who are very concerned about seeing beautiful agricultural land taken up with solar panels have a valid point. You’d hate to lose a lot of natural Marin. That makes this an ideal project because it’s sitting in an abandoned quarry essentially on bare rock,” said Bob Spofford, vice president of Sustainable San Rafael.

“Solar is in some ways the most ideal of all alternative energy because it doesn’t make noise, it doesn’t pollute, it produces power close to the time when it’s most needed, and it does not harm wildlife,” said Spofford.

Addressing Spofford’s last point, “Photovoltaic panels definitely do not kill birds,” said Michael D. McGehee, a Stanford University associate professor and a senior fellow at the university’s Precourt Institute for Energy. McGehee teaches classes on solar cells. Wind turbines such as the ones at Altamont do pose a danger to avian life, perhaps causing some to confuse the effects of this alternative energy source with those of solar, McGehee said.

No letters of opposition to the project had been received by the staff by Friday.

The state Office of Mines Reclamation and the Department of Public works oversaw the reclamation of the land since the 1990s, according to the county staff report. The project is exempt from the California Environmental Quality Act because it will not cause environmental impacts, the staff report said.

“My job is to work with clients to help them avoid environmental impacts,” said Dana Riggs, a project biologist with San Rafael-based WRA Environmental Consultants. “We planned it (the project) in a manner to avoid impacts on sensitive resources including species and habitat,” Riggs said.

If the permit is granted, construction could begin as early as mid-August and wrap up by November, according to Frank Gobar of Danlin Solar.

LIPA approves solar feed-in tariff program

Originally published: June 29, 2012 8:03 PM

By MARK HARRINGTON  mark.harrington@newsday.com

LIPA trustees this week gave formal approval to a new solar program that will encourage construction of commercial solar power plants around Long Island that will sell electricity back to the authority much the way local power plants do, but without the emissions.

Approval of the so-called solar feed-in tariff on Thursday starts the ball rolling for companies and investors to construct mid- to large-size solar farms on commercial and municipal rooftops and other open spaces beginning July 15, when LIPA begins accepting applications.

Several solar installers at a LIPA trustees meeting this week applauded the program, saying it would likely lead to the creation of hundreds of jobs and up to 50 megawatts of combustion-less power. The Long Island Solar Energy Industries Association called it a “substantial and positive” step to building a local renewable energy portfolio. A megawatt of solar energy produces enough electricity to power 125 homes.

The $11.5 million program, paid for by ratepayers at around 44 cents a month, allows companies to negotiate 20-year contracts to sell solar power to LIPA for 22 cents a kilowatt hour. The program is considered ideal for companies with large warehouse roofs, which can accommodate dozens of solar panels.

The program differs from LIPA’s traditional rebate program — which continues — that gives ratepayers refunds of around a third of the cost of solar systems. With a feed-in tariff, there’s no rebate; producers are paid only for the actual energy their systems produce.

While the new solar program has caught the interest of installers and commercial firms, Michael Deering, vice president of environmental affairs at LIPA, said much of the early interest in the program is coming from municipalities.

“I expect we’ll have a significant number of applications come in right out of the box,” he said.

Solar installations provide two benefits to LIPA: They produce peak power on the long, sunny days of summer when LIPA’s system hits its peak. And they are also dispersed around the region, helping to lower stress on the system by cutting the need to pipe plant power to far-flung places.

LIPA enters the peak summer season without one major power source: the 660-megawatt Neptune Cable. The $1.75 billion cable has been out of service since early June because of two related transformer failures. Michael Hervey, LIPA’s operating chief, said a spare transformer is in place and can be used if needed this summer.

The expansion of solar comes as LIPA continues to review around a dozen proposals for new power around Long Island, including new gas-fired plants in Kings Park, Shoreham and Yaphank, and potentially a new cable. LIPA is also renegotiating its power supply agreement with National Grid, which owns 17 former Lilco plants around Long Island, including large steam-generators in Northport, Island Park and Port Jefferson. LIPA this week said a new agreement with National Grid could give it the flexibility to upgrade the plants to new levels of efficiency.

Paul DeCotis, LIPA’s vice president of power markets, said LIPA is considering opening the bidding process for new power sources that are used primarily for peak power, and said solar peaking units could be among the power sources being considered.

 

What Is Holding Back Solar Feed-In-Tariff Programs In The U.S. Market?

eed-in tariffs (FITs) have spurred the installation of more than three-quarters of global solar capacity. Germany’s FIT – perhaps one of the best-known programs – has led to the development of more than 50,000 MW of solar power and wind power domestically since its inception in 1990.

But despite this roaring success – which has been duplicated on smaller scales in several other countries – FITs continue to fail to make inroads in the U.S. This market instead relies on a patchwork of often inconsistent federal and state incentives in order to make solar power projects work.

Could FITs ever take off in the U.S.? Where have existing local and state FIT programs failed, and what glimmers of hope can they provide? A recent report by John Farrell, senior energy researcher at the Institute for Local Self-Reliance (ILSR), recaps the frustrating path of the U.S.’ FIT programs and makes recommendations for successful future implementation.

FIT programs – generally branded as Clean Local Energy Accessible Now (CLEAN) contracts in the U.S. – currently exist in 14 states. However, installed capacity under all of the programs totals just 132 MW, according to the ILSR report.

Even if the U.S.’ CLEAN programs were built out to their caps, their installed capacity would represent 1% or less of each jurisdiction’s total electricity scales. In comparison, the cap-less German market already has allowed at least 20% electricity to come from FIT sources.

“Experience shows, not surprisingly, that the larger the scale of CLEAN programs, the greater the cost savings,” the report notes. “Germany has nearly a 50 percent price advantage in project-installation costs, due almost entirely to its large, streamlined market for solar.”

Another shortcoming of the U.S.’ CLEAN programs may be their emphasis on large-scale solar projects. Unlike in Germany, where individuals own 40% of the current renewable energy market, few U.S. programs allow participation by owners of residential PV arrays.

The Sacramento Municipal Utility District’s (SMUD) program, for instance, leads the U.S. in terms of installed CLEAN capacity, with two-thirds of the country’s total, but almost all of the capacity was allocated to projects of at least 1 MW, according to the report. A single 30 MW array took up half of SMUD’s capacity.

The ILSR believes that small-scale, locally owned PV projects represent a more effective use of CLEAN programs.

“It is true that larger projects will have lower per-kilowatt costs, although the difference may be minimal,” the report explains. “But many small projects mean [that] many households (and businesses) begin to have an economic self-interest in supporting further renewable energy developments.”

Better administration
All renewable energy incentive programs are dynamic works in progress, and the German government’s ongoing management of its FIT program has not been without controversy. Last year’s boom in PV installations, followed by an announcement of drastic FIT rate cuts, resulted in political wrangling and negotiations that have yet to be resolved.

It is also worth noting that the U.S.’ electricity market and regulatory environment differ from Germany’s – thus making exact duplication of the latter’s FIT program difficult or impossible.

Nevertheless, the U.S. can learn a couple important FIT/CLEAN program management lessons from Germany, according to the ILSR report.

Price differentiation – i.e., providing different rates for different types of technology and project sizes – has allowed various types of renewable energy to grow simultaneously, in addition to allowing more homeowners and their small-scale projects to participate competitively.

At the same time, Germany’s FIT pricing is “all in,” attracting project investors without the need to add other subsidies and partners – and, thus, streamlining investment. U.S. CLEAN contracts, on the other hand, must be employed in tandem with federal and/or state incentives in order to create an attractive investment.

“The reliance on tax incentives constrains U.S. CLEAN programs,” the report says. “Federal tax incentives are subject to the vagaries of congressional politics. Federal tax incentives also increase complexity, as developers often partner with companies seeking tax write-offs, which, in turn, encourages larger projects and increases the overall cost of the project.”

A successful FIT/CLEAN program must also be priced properly. According to the report, the most important feature of Germany’s FIT program has been its “accelerated” price reductions in recent years. In response to market conditions, FIT rates now drop much more rapidly than in the past.

“American CLEAN programs must similarly adapt to a changing market,” the report notes, adding that currently, few U.S. programs offer any year-to-year price transparency, thus making project development more challenging.

With new CLEAN initiatives forthcoming in the U.S. – including programs from the Los Angeles Department of Water and Power, the Long Island Power Authority and the State of Rhode Island – now may be an ideal time for intensive evaluation and possible restructuring.

Despite its criticism, the ILSR is optimistic about the future of CLEAN programs in the U.S. and the role that they can play as solar power continues its downward cost trajectory.

“The CLEAN program makes an ideal transitional incentive, one that can be tailored to the needs and capacities of different states and can be phased out gradually as renewable energy costs decline,” the report says.

Photo: A residential PV installation in Germany. Photo credit: Conergy AG

California Feed-in Tariff for Poor Communities Passes Assembly

May 31, 2012

By Paul Gipe

A bill to create feed-in tariffs for the poor and the disadvantaged passed the California Assembly on 30 May 2012.

The “Solar for All” bill, AB 1990, passed the House by a vote of 49 to 27 and was reported to the Senate.

The move is the first significant action on feed-in tariffs in California during this legislative session. It is also the first time in North America that advocates for the poor and disadvantaged have called for equal opportunity to develop renewable energy through the use of feed-in tariffs.

Introduced by Paul Fong (D-Cupertino), the bill would create feed-in tariffs for 375 MW of small-scale renewable generation that would be specifically designed for disadvantaged communities.

The bill is sponsored by the California Environmental Justice Alliance (CEJA).

CEJA’s bill has received support from some 70 non-governmental organizations that includes a who’s who of the California environmental and social justice community, including Sierra Club California, Union of Concerned Scientists, Natural Resources Defense Council, Asian Pacific Environmental Network (APEN), and Environment California.

Though CEJA dubs the legislation “Solar for All”, the bill itself calls for “clean energy contracts” from all “eligible renewable energy resources” in California.

  • Project size cap: 500 kW
  • Program cap: 375 MW by 2020 at a “regular annual pace”
  • Term: minimum of 20 years
  • Program launch: 2014
  • Tariffs: “sufficient to stimulate the market” in low-income communities, create a diverse range of project sizes and achieve the environmental justice objectives
  • Reporting: annual
  • Administration and Rate Setting: Public Utility Commission (PUC) & local public utilities
  • Cost recovery: ratepayers
  • Cost cap: 0.375% of forecast retails sales in 2020
  • “Eligible” Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Municipal Solid Waste, Energy Storage, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Biodiesel, Fuel Cells using Renewable Fuels

It is not clear whether AB 1990 directs the PUC to set tariffs in two bands for those living in disadvantaged communities who can use federal tax subsidies and those who cannot. The bill only notes that the PUC is to take this into account during its deliberations.

AB 1990 contains a potentially onerous provision requiring that each renewable generator be “inspected” by a licensed contractor every two years.

Though utilities are obligated to provide “expedited interconnection,” they are exempted from the act’s requirements if they claim the grid is “inadequate”, that the generator doesn’t meet the utility’s interconnection requirement, or that the “aggregate of all small-scale renewable generating facilities on a distribution circuit would adversely impact utility operation and load restoration efforts of the distribution system”

Despite these limitations, the introduction alone of AB 1990 by CEJA should put to rest concerns that feed-in tariffs are a regressive form of taxation that penalize the poor. Rather, environmental justice organizers see feed-in tariffs as a more equitable policy tool than existing California programs for developing renewable energy.

CEJA: Solar for All Passes Assembly

AB 1990 Bill Status

AB 1990 Bill History

AB 1990

California Watch: Solar rooftops sought in poor communities

What’s New on Feed-in Tariffs

  • California Feed-in Tariff for Poor Communities Passes Assembly–A bill to create feed-in tariffs for the poor and the disadvantaged passed the California Assembly on 30 May 2012. The “Solar for All” bill, AB 1990, passed the House by a vote of 49 to 27 and was reported to the Senate. . .
  • Canadian Auto Workers: WTO Called Upon to Dismiss Japan, EU Challenge to Ontario Renewable Energy Policy–Canadian NGOs and labour unions, including the CAW, have sent an amicus curiae submission to the World Trade Organization (WTO) prior to a May 15 hearing into Japan’s and the European Union’s joint attack on the Ontario Green Energy Act. . .
  • Japan Times: Leveling the field for renewables–The government has drawn up a design for Japan’s feed-in tariff system to promote the generation of electricity through renewable energy sources. In a nutshell, it has decided the prices at which the nation’s major power companies buy such electricity and the duration of contracts. In principle they must buy all such energy. It is hoped that this system, expected to take effect in July, will help expand the generation and use of renewable energy, and accelerate advances in related technologies. Electricity fees may rise. The government should fully explain the need for the system and how it will work. . .
  • Karl-Friedrich Lenz’s analysis of Japan’s Feed-in Tariffs–The second fundamental flaw is the fact that the proposal doesn’t distinguish between onshore and offshore wind. That difference has a rather large influence on cost. Therefore, German law pays 8.93 cents for onshore and 15 cents for offshore wind. . .
  • Chronicle Herald: Nova Scotia Plans to Tap into Tidal Energy with FITs–Energy Minister Charlie Parker said his department will ask the province’s Utility and Review Board later this year to begin the process of setting a rate, or feed-in tariff, for the companies working on development projects in the Bay of Fundy. . .
  • Anglican Diocese of Oxford: Solar Feed-in Tariff put on a “predictable, certain and sustainable footing”–Churches exploring solar pv should note that buildings with an Energy Performance Certificate rating of less than D will get a reduced tariff rate. Calls have previously been made to examine possible exemptions from this and the national Church of England Shrinking the Footprint campaign has been responding to the consultation and having discussions with DECC with particular emphasis on the issues for churches in achieving an A – D rated Energy Performance Certificate. It is, however, possible to wire panels on one building into another which is easier to upgrade e.g panels on a church roof wired into a church hall. . .
  • Malaysian Reserve: RE industry may see change in feed-in-tariff, says SEDA–The Sustainable Energy Development Authority (SEDA) is looking at adjusting the feed-in-tariff (FiT) for renewable energy (RE) before it calls for the next round of quote in July/ August 2012 as there is an imbalance in the RE resource mix. At a recent talk on renewable energy updates, SEDA chief executive officer Badriyah Abdul Malek highlighted that almost half of the installed capacity for RE being generated, since the beginning of the FiT on Dec 1, 2011, was using solar energy which could be a “wrong signal” for the market. . .
  • Vermont Ups Feed-in Tariff Program Cap Slightly–Vermont’s Democratic Governor Peter Shumlin signed a bill into law 18 May 2012 that slightly increases the cap on the state’s Standard Offer Contract program. Senate Bill 214 extends the small existing 50 MW program by a modest amount. . .
  • Saudi Arabia Launches Massive Renewable Program with Hybrid FITs–While North America continues to dawdle on the road to the renewable revolution, the conservative, oil-rich Kingdom of Saudi Arabia has proposed one of the most sweeping and massive moves to renewable energy on the planet. . .

Nuclear Power, Japan, Feed-in Tariffs, and the Rapid Development of Renewables

  • Andrew Dewit: A Crossroads for Japan: Revive Nuclear or Go Green?–May 5 marked the shutdown of the last of Japan’s 50 viable nuclear reactors, with poor prospects for any restarts before the summer. The central government, the nuclear industry, most big business associations, and many international observers seem convinced that this will invite chaos through escalating fossil fuel costs and the risk of blackouts. But polls suggest a growing segment of the Japanese population see things differently. . .
  • Mainichi: Atomic Energy panel members call for independent probe into secret meetings–Some members of a Japan Atomic Energy Commission (JAEC) panel working out new nuclear energy policy have called for a third-party probe into revelations that business operators in favor of the nuclear fuel cycle project were invited to secret meetings before an assessment was altered to help promote the project. . .
  • Guardian: Only renewables – not nuclear – could be too cheap to meter–Germany’s long support for wind and solar energy is delivering zero-cost electricity at times. In contrast, the UK’s new energy policy seeks to underwrite the rising cost of nuclear. . .

 

What’s New on Solar Energy

 

What’s New on Community Power

  • Renewable Energy Tour to Germany & the World Wind Energy Conference 2012–The Ontario Sustainable Energy Association is leading a tour to renewable energy sites in Germany June 30 to July 8 including participation in the World Wind Energy Association Conference in Bonn, and visits to a biogas plant, a wind turbine manufacture, community-owned wind turbines, a leading research institute on grid integration, and a solar power plant. . .
  • Aaron Bartley: Community Power vs. the Kochs–In Germany, where the stranglehold of corporate energy has been loosened, renewables now comprise 20 percent, of national energy production, thanks to national policies such as feed-in tariffs which guarantee a stable price for power produced by wind, solar and geothermal systems. More than half of German energy is now produced in decentralized sites like homes, farms and community co-ops. This trend toward distributed generation conflicts directly with the corporate energy paradigm of centralized control. The German model shows that national policies can have a transformative impact that both increases overall renewable energy production while placing ownership in the hands of farmers, small businesses and homeowners. . .
  • Mount Alexander Community Wind–Mount Alexander Community Wind is a community driven project seeking to establish a locally owned and operated wind plant to supply a significant portion of the energy needs of our Shire. Clean renewable energy will be generated to replace energy derived from burning non-renewable coal. . .

 

What’s New on Wind Energy


This feed-in tariff news update is sponsored by the , An Environmental Trust, and the David Blittersdorf Family Foundation in cooperation with the Institute for Local Self-Reliance. The views expressed are those of Paul Gipe and are not necessarily those of the sponsors.



JCM Capital Launches $10,000,000 Solar Development Capital Fund for FIT Projects in Ontario, Canada

TORONTO, Apr 24, 2012 (BUSINESS WIRE) — JCM Capital (JCM) announced today that they have launched a $10 million solar development capital fund that will invest in early-stage photovoltaic (PV) projects installed on large commercial and industrial buildings across Ontario, leveraging the Province’s Feed-in-Tariff (FIT) program. The aim of the fund is to target application-ready projects to be submitted into the upcoming Ontario Power Authority’s (OPA) application window, and as such, assist with early-stage development costs such as FIT application fees, structural engineering assessments, FIT security deposits and grid connection impact assessment (CIA) costs. The fund will also invest in Ontario-based FIT contracted projects that have not yet reached commercial operation.

CEO of JCM, Christian Wray stated that despite the recent changes to the Province’s Green Energy Program, the fund will ensure that necessary capital is available for quality projects that meet the requirements of the revised FIT 2.0 program. “JCM has and will continue to support the small to mid-size solar market in Ontario with the belief that our investment in distributed solar power generation will provide the maximum benefit to all stakeholders. The fund creates a unique solution for local PV development companies that have few options when funding early-stage projects that require significant risk capital.” Wray also noted that JCM has a strong track record in working with solar developers in Ontario and looks forward to partnering with and supporting other experienced developers as the program continues.

To date JCM has successfully deployed over $5 million of development capital, enabling the advancement of an initial 20MW commercial rooftop solar portfolio. When completed, the aggregate construction costs of this initial portfolio will exceed $80 million and will offset approximately 20,000 tons of harmful C02 from being released into the earth’s atmosphere – the equivalent of planting 2 million trees or removing 60,000 cars from the road.

The fund will also help create further jobs in accordance with the Province’s Green Energy Act initiative.

For more information, please visit www.jcmcapital.ca

About JCM Capital (JCM)

JCM Capital is a financial advisory company that focuses primarily on financing and the co-development of solar energy projects in Ontario, Canada. The Company provides commercial solar energy developers early-stage development capital and/or equity financing solutions for ‘construction-ready’ and operational solar projects while offering strategic and project management support. Current portfolios include rooftop and ground-mounted projects spanning from Southwestern to Eastern Ontario. The Company is looking to expand it’s reach through the cultivation of new partnerships and associations.

SOURCE: JCM Capital

US military sets its sights on solar to sideline fossil fuels

By:  Cheryl Kaften

The U.S. Department of Defense (DOD) moved ahead this week with its plans to mete out “more fight for less fuel”. With support from the White House, the Pentagon intends to reduce reliance on fossil fuels by building next-generation combat vehicles, making energy storage safer and more effective, and increasing the deployment of renewable energy across America’s Armed Forces to three gigawatts (GW) by 2025.

US flag

The DOD is said to be making one of the largest commitments to clean energy in history.

Flickr/Jeff Kubina

“We haven’t been standing still on this,” commented Sharon E. Burke, assistant secretary of defense for Operational Energy Plans and Programs. Already, Burke said, the Army’s ground troops and the Marines have reduced their energy consumption at the tactical edge in Afghanistan by using solar rechargeable batteries, solar microgrids, more efficient tents, and better fixed shelters. The Navy also is incorporating energy considerations into its acquisitions process, she said.

Less demand for energy and more conservation reduce the risk to troops who transport fuel through battle zones, explained Burke. “When you’re focused on the fight, the most important thing is that the energy be there … But people also are beginning to understand there is a cost to using and moving that much fuel.”

Last June, DOD officials released a strategy outlining the need for energy conservation in military operations. The plan calls for a Defense Operational Energy Board to oversee the department’s progress. Military services and DOD agencies are to report to the board on their energy consumption during 2011 and on their projected consumption for the next five years, the plan says. The board will work with the services and agencies on actions needed to improve their consumption baselines.

Fast-forward to renewable energy

According to a statement from the White House on April 11, the DOD is making one of the largest commitments to clean energy in history, by developing a goal to deploy three GW of renewable energy, including solar, wind, biomass, and geothermal, on Army, Navy, and Air Force installations by 2025. That would be enough power to meet the needs of 750,000 homes.

According to White House Press Secretary Jay Carney, “This effort furthers the commitment President Obama made during the State of the Union (Address) to develop one gigawatt of renewable energy on Navy installations by 2020. The Air Force goal of obtaining 1 gigawatt by 2016 and the Army goal of obtaining 1 gigawatt by 2025 support the broader DOD goal to meet 25 percent of its energy needs with renewable energy by 2025.”

Together with emerging microgrid and storage technologies, reliable, local sources of renewable power will be used increase the energy security of U.S. military installations. To meet these goals at no additional cost to the taxpayer, DOD will leverage private sector financing through authorities such as power purchase agreements, enhanced use leasing, utility energy savings contracts, and energy savings performance contracts.

Testing new technologies

In brief, among the other energy conservation initiatives launched by the DOD and the White House this week are the following:

  • New lab for next-generation vehicles: On April 11, the Army opened a 30,000-square-foot research facility, called the Ground Systems Power and Energy Lab (GSPEL), at Detroit Arsenal that will develop cutting-edge energy technologies for the next generation of combat vehicles.
  • Green Warrior Convoy: As part of required road tests of technologies developed at the GSPEL, the Army will launch a Green Warrior Convoy of vehicles in 2013. The convoy—which will make stops at schools, community facilities, and military bases— will test and demonstrate the Army’s advanced vehicle power and technology including fuel cells, hybrid systems, battery technologies and alternative fuels.
  • Energy storage competition: Through its Advanced Research Projects Agency– Energy (ARPA-E), the Department of Energy will fund a $30 million research competition that will engage America’s brightest scientists, engineers, and entrepreneurs in improving the capability of energy storage devices, including batteries. ARPA-E’s new “Advanced Management and Protection of Energy-storage Devices” (AMPED) program will promote the development of next-generation energy storage sensing and control technologies, including enhancing the performance of hybrid energy storage modules being developed by the DOD for war-fighting equipment.
  • Biuofuel development: As part of his Blueprint for a Secure Energy Future, President Obama has challenged the Departments of Navy, Energy, and Agriculture to partner with private industry to accelerate the commercialization of drop-in biofuels for military and commercial use. The three departments have developed a plan to spur private industry and financiers to construct or retrofit multiple integrated biorefineries—capable of producing millions of gallons of fuel annually from domestic feedstocks at a competitive price.

Carney emphasized that the plans outlined this week in support of fossil fuel independence are part of the administration’s broader goals for the nation. “These new steps build on President Obama’s unwavering commitment to energy security for America’s warfighters, and to a sustained, comprehensive strategy to ensure a secure energy future for all Americans.”

Suntech Weathers Turmoil in Solar Industry

by Aaron Back
Wall Street Journal

China-based Suntech, the world’s largest producer of solar panels, hasn’t been immune to turmoil in the industry world-wide, but the company’s founder and chief executive, Shi Zhengrong, believes increasing consolidation in the sector will buoy large players.

Dr. Shi is a foreign-educated solar scientist. He earned a Ph.D. in electrical engineering from the University of New South Wales in Australia in 1992, and gained Australian citizenship. From 1995 to 2001 he was research director and executive director of Pacific Solar Pty. Ltd., an Australia-based maker of solar components.

Associated PressShi Zhengrong, founder and chief executive of Suntech Power Co. Ltd.

The solar industry globally has fallen on hard times, beset by falling subsidies in Europe, a key market, and global overcapacity for solar panels and their components. In a recent high-profile case, the German government has been in talks with the solar industry to begin monthly reductions in feed-in tariffs, the fixed price at which solar energy is purchased. U.S. trade authorities are also investigating complaints of alleged dumping of solar panels on the U.S. market by Chinese producers, including Suntech.

Dr. Shi has said he sees consolidation of the sector ahead, which could benefit large players like Suntech. Still, the company has been vulnerable to forces buffeting the industry. Suntech posted a $116 million loss in the third quarter, compared with a year-earlier profit of $33.3 million, hurt by a foreign-exchange loss due to volatility in the euro and dollar exchange rates. The company said it expects to post revenue of between $3 billion and $3.1 billion for 2011, up from $2.9 billion in 2010.

Dr. Shi talked with Aaron Back in Davos, Switzerland. The following interview has been edited.

WSJ: You earned a Ph.D. in Australia and took an Australian citizenship. How did this experience shape your management philosophy?

Mr. Shi: I spent 14 years living in Sydney, Australia. When I first went to Australia I was 23 years old. I was a young man. I did my Ph.D. with professor Martin Green, and to be honest, before that I never thought I could be a good scientist.

After [finishing my Ph.D. in] 2.5 years, record time at the University of New South Wales, and afterwards working in the laboratory for about 2-3 years, based on my patents together with the professor, we were able to raise about $50 million to start a spinoff company called Pacific Solar, and I was appointed as deputy research director. So that was actually very important for my career in a way. Before, my background and research specialty was on laser physics, and that really changed my specialty to solar.

WSJ: So was it something of a coincidence that you became involved with solar technology?

Dr. Shi: It was a coincidence for me to come to know professor Martin Green. I knocked on his door at 5 p.m. to ask him for a job. So then I said “I don’t want a full-time job, I just want something like part-time research assistance or something.” So then he said, “OK, come in.” So we started chatting, and he knew my background, he knew I had masters degree, I think based on the credentials of other Chinese students he guessed I was at least above average. That’s how I got into solar.

WSJ: Has your dual role as a Chinese entrepreneur and an Australian citizen been key to your success?

Dr. Shi: I think it’s extremely important for Suntech. If you look at our culture and DNA, a lot of things have to do with my experience in Australia. I got to know Western culture a lot, their way of thinking, their way of doing things. Of course I also kept the essence of Chinese culture, if you look at the style of management in the company, we’re really multinational with a global management team. For our regional sales and operations, we really depend on local culture, local faces and local language to really represent Suntech. And also, because as we know, Australia has leading technology in crystalline silicon solar cell technology, so that also gives us a leading position in research and development and innovation.

WSJ: You’ve said recently that the solar sector will face consolidation. How do you see this playing out?

Dr. Shi: If you look at China there are probably more than 1,000 companies in this sector, but at this moment, 50% at least have either shut down production or partially ended production. Whether they are going to shut down permanently or whether there will be some M&A I think all depends. You know, Chinese companies have very strong survivability. So it all depends on how long this situation will last. But the market consolidation is already happening. If you look at 2011 Q2 and Q3 figures, the top six manufacturers (globally) had 55% to 60% of market share. But in 2010, it was only about 25%. So it’s already happening because customers care more about brand, R&D, sustainability, service and so on.

WSJ: But are you yourself going to go out and buying any struggling rivals? Is that something you would consider?

Dr. Shi: Not really, but we are open-minded to seize any opportunity that fits with our strategy…Anything is possible.

WSJ: Germany has recently cut its solar feed-in tariffs, and it seems around the world in this era there is less money for solar subsidies. So what does that mean for you?

Dr. Shi: Well, I think its natural and it’s the way it should be. If you look at the [German Renewable Energy Act] initiated by the German government in 2004, that was just trying to help the industry to create a market. So once you have a market, industry will innovate and try to reduce costs. So in the last few years, costs have come down so dramatically…The law was designed to reduce feed-in tariffs annually, say once a year maybe around 10%, but in the last two years, apart from this annual reduction, there were additional 15% feed-in tariff cuts. So that gives you an idea—there’s an accelerated reduction of feed-in tariffs, due to accelerated reduction of solar panel costs.

WSJ: Late last year, some U.S. solar-panel manufacturers asked for anti-dumping investigations against Chinese rivals, including Suntech. Where do you think this is headed?

Dr. Shi: Unfortunately it’s a lose-lose situation. Nobody wins: The U.S. government, U.S. consumers, and the solar industry are all losers in this game. We believe the accusation is not true.

If there’s a tariff or trade war, it would really be a big setback for the industry…Because of [a possible tariff] many projects that were realistic due to reduced prices become impractical because the economics doesn’t work anymore. What does that mean? It means, you will lose jobs. I think in the U.S. currently there are about 150,000 people employed in the solar industry. Globally around 800,000, with 300,000 in Europe. For every 10 jobs we create in factories, there will be 15 jobs created downstream, in installation, financing, project development, distribution.

Write to Aaron Back at aaron.back@dowjones.com

Résumé

Education: Ph.D. in electrical engineering from the University of New South Wales (1992)

Career: Pacific Solar Pty. Ltd. research director and executive director (1995-2001)

On antidumping investigations: “If there’s a tariff or trade war, it would really be a big setback for the industry…Because of [a possible tariff] many projects that were realistic due to reduced prices become impractical because the economics doesn’t work anymore.”

Spain suspends FITs

28. January 2012 | Top News, Applications & Installations, Industry & Suppliers, Global PV markets, Markets & Trends | By:  Oliver Ristau

In a surprise move, the Spanish Council of ministers has implemented a temporary suspension of the renewable energy feed-in-tariffs (FIT) for new installations in Spain.

Spanish flag

No further renewable energy projects, which includes photovoltaics, will receive FITs.

Solarpack

As a reaction to the financial crisis in the Mediterranean country, the new Spanish government, under Prime Minister Mariano Rajoy, has approved a new law, by which the current system of remuneration for renewable energies will be discontinued.

As the Council of Ministers announced on Friday, the government won’t give any economic incentive to fund new renewable installations, and the relevant administrative and funding systems will be suspended.

While it was said that the suspension will be temporary, the government did not disclose any timeframe for when the FITs may be resumed.

In a statement released, it argued that “to maintain the current system of remuneration is incompatible to the current economic crisis.” It did stress, however, that the new measures will not be retroactive. They won’t effect “either the installations in operation, or those that are already registered.”

New British and Malaysian FIT Programs Launch

World First–British Feed-in Tariffs for Renewable Heat

Solar DHW Tariff Scheduled for Fall 2012

Malaysia Seeks 1,250 MW of Solar Photovoltaics by 2020

December 4, 2011

By Paul Gipe

Two innovative feed-in tariff programs launched last week. Malaysia methodically stepped into the fray of developing countries moving aggressively toward renewable energy. Meanwhile, despite the Eurozone’s debt crisis, strikes, and turmoil in its FIT program for electricity, Britain quietly launched a groundbreaking program to pay feed-in tariffs for renewable heat.

Regardless of uncertainty in world financial markets, the launch of these long-planned, long-discussed programs indicates that the march toward more countries using feed-in tariffs to develop renewable energy continues undiminished.

The British program, dubbed the Renewable Heat Incentive (RHI), for non-domestic generators opened for applications on Monday November 28, 2011. Malaysia opened their electronic doors to applications December 1, 2011. Both programs expected a flood of applications.

Britain’s RHI

For the first time, a program will pay for the heat generated by solar panels. Britain’s RHI will pay £0.085/kWh ($0.13/kWh) for metered heat from solar thermal systems up to 200 kW in size. The program will also pay £0.043/kWh (~$0.07/kWh) for heat from ground-source heat pumps less than 100 kW in size, and £0.03/kWh (~$0.05/kWh) for heat pumps greater than 100 kW.

The original program proposed to pay £0.18/kWh ($0.28/kWh) for heat from residential-scale solar domestic hot water systems. Implementation of the residential heat program has been delayed to October 2012.

 

Malaysia’s Advanced Renewable Tariffs

Unlike some developed countries, Malaysia launched a full-featured program of Advanced Renewable Tariffs from the start. The tariff schedule is fully differentiated by technology and size, and includes bonus payments for locally manufactured products.

The ambitious program expects to develop more than 3,000 MW of new renewables by 2020, of which more than one-third will be from solar photovoltaics alone. Biomass will contribute another one-third.

 

DECC: Renewable Heat Incentive

Malaysia Adopts Sophisticated System of Feed-in Tariffs