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PV Manufacturing Summit India 2012
1-2 August, Leela Kempinski Hotel, New Delhi
A LANDMARK SUMMIT FOR THE PHOTOVOLTAIC INDUSTRY IN INDIA
PV EXPERTS FROM AROUND THE WORLD:
“ Excellent and intimate venue with top
level networking opportunities and real feedback from the fi eld
” Siemens
Organized by
VITAL REASONS TO ATTEND:• Hear the offi cial perspective from the Ministry of New & Renewable Energy,
answering the key manufacturing questions
• International and local PV manufacturers come together to share experiences and knowledge to drive the Indian industry forward
• Extended breaks, an informal reception and an online networking tool to connect you to every speaker, sponsor and delegate
• 25+ expert speakers and a focused exhibition will bring expertise and contacts from the entire PV value chain
Building inwards, looking outwards: Maximize your PV manufacturing potential to exploit India’s great opportunity and get competitive internationally} Win big in India – Capitalize on the nation’s solar opportunity and lead the
pack in a booming manufacturing landscape
} Take manufacturing further – from the hottest PV markets to scaling up and vertical integration, skyrocket your profi ts
} Get fi nanced – Meet infl uential investors, discover your options and win the fi nance that will transform your business
} Building an unbeatable module - Learn innovative ways to strike the balance between fi rst-class module quality and competitive costs
} Proving the quality - Understand why warranties are now critical to your business, and guarantee your module for the all-important 25 years
“ Well organized conference with
industry-leading speakers
” Belectric
Head to the website for more details: www.pv-insider.com/manufacturing
SEE THE WEBSITE:
PV_Manufac_India12_A4_ad_r2_v1.indd 1 07/06/2012 12:06
In this issue...
J U N E 2 0 1 2EcoSeed and EcoSeed Bridge are published by the
Global Content & Research Ltd.Chief Executive Officer: Saar Herman
Chief Operating Officer: Francis C. PatronAssociate Editor: Eric Dorente
Editors: Katrice R. Jalbuena, Nico ArboledaContent Writer: Catherine Dominguez
Marketing Officer: Karl GoMarketing Assistant: Angielene Cabasag
Marketing Writer and Research Consultant: Gizel Salabao
Editor’s NoteThe sun. A celestial body looming over us, radiating its warm glow throughout diverse landscapes. Everywhere you go, it’s basically there. Perhaps that is the reason why it’s becoming one of the most sought after sources of renewable energy nowadays.
This issue of EcoSeed Bridge brings you an impartial viewpoint on the “hot” issue of the tensions between two powerful countries that play a pivotal role in the solar sector—the US and China. This tension was brought upon by the tariffs that the US had set upon Chinese-made solar equipment, which experts have varying opinions on. We also bring to you different solar events that will be happening in various cities around the world, includ-ing the PV Project Development Summit in India and in South Africa, the Solar Power International Conference in Florida and the East Solar Expo & Convention in Mel-bourne.
The esteemed annual award Zayed Future Energy Prize has opened the submission of entries for its 2013 edi-tion as well as added a new category, the Global High School prize. Entries and nominations are until the 16th of July, 2012 and we’re encouraging you to join or nominate someone who has an innovative idea to get a chance to win part of the $4million prize and worldwide recognition.
This issue also gives you features on the wind sector, particularly the ones from our friends at Wind Energy Update whose focus is to bring their expert view on the construction, installation and power generation of offshore wind farms and also upcoming events that are important to the sector.
The rapid growth of news focused on and featuring re-newable energy signals the growth of a budding indus-try that, in due time, will perhaps lead the world into a healthier and more sustainable lifestyle.
In this issue...June 2012Risk jeopardises European offshore wind
Last Call for Submissions: Zayed Future Energy Prize 2013
Sectors in Brief
US vs China: A Possible Trade War
Wind energy supply chainbest practice from the oil and gas industry
Fact or Fiction: Water as Fuel
Featured Articles
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Featured EventsPV Project Development Summit India 2012
PV Project Development SummitSouth Africa
Solar Power International 12
Optimizaing Wind Power O&M
East Solar Expo & Conference
World Clean Coal WeekChina Focus 2012
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PV Project Development Summit India 201230-31 July 2012 - New Delhi, India
A GROUND BREAKING EVENT FOR THE PROJECT DEVELOPMENT SECTOR OF THE PHOTOVOLTAIC INDUSTRY IN INDIA
1 INNOVATION: The very fi rst event of its kind in India, exclusively dedicated to PV Project Developers
2 KNOWLEDGE TRANSFER: A speaker’s line up formed by 40+ of the most infl uential players who have faced and solved PV challenges and are ready to share it with you!
3 RELATIONSHIPS: Countless opportunities to meet and do business with government offi cials, local and international developers, utilities and investors, all under one roof
4 DIALOGUE: Interactive case studies and Q&A sessions covering the most relevant challenges, in which your questions WILL be answered
5 PIPELINE: Go back to your business armed with the knowledge and contacts that will help you formulate your next steps towards PV domination!
Navigate the PV Project Development Maze and Speed up your Profi tability in a Flourishing Indian Market} Demonstrate the industry’s feasibility to the local banks and get
funded in the process by proving your ROI to those that matter
} From irradiation data to land owner negotiation: Get the right land at the right cost at the right time for your PV project!
} Get informed on the best PV technology options available to you in India, to guarantee the quality and performance of your power plant
} Speed up the power evacuation process of your PV plant with critical information on transmission, distribution, location and infrastructure variations throughout India
} Understand the JNNSM and avoid costly delays with an A-Z guide to winning bids and setting industry standards to ensure a sustainable future of PV in India
} Take part in an exclusive exchange of expertise and technical knowledge with the most qualifi ed international companies; for the creation of a profi table, investable and long lasting industry
TOP INTERNATIONAL & LOCAL PV SPEAKERS INCLUDING:
TOP 5 CONFERENCE TAKE-AWAYS
Researched & Organized by
Visit the conference website: www.pv-insider.com/indiapv
“ Excellent and intimate
venue with top level networking opportunities and real feedback from
the fi eld
” Siemens
BRONZE SPONSOR:
PV_ProjectDev_India12_A4_ad_r2_v1.indd 1 07/06/2012 12:03
Visit our website: www.pv-insider.com/southafrica
“PV-Insider events are an excellent way to meet and
network with key players in the global PV market space
SunPower Corp
“
“Excellent and intimate venue with top level networking
opportunities and real feedback from the fi eld
Siemens
“
THE VERY BEST PV SPEAKER LINE UP IN SOUTH AFRICA
Deliver a competitive project on time & on budget to increase your share and profi t in the South African PV market in 2012 • Experience matters: Hear the lessons learned in PV project development to
dramatically improve performance and reduce costs for your plant
• Your blueprint for success: Make your PV vision a reality with the very latest methods for streamlined plant design and construction, to guarantee record breaking effi ciency and a competitive LCOE
• Photovoltaic technology roadmap: Examine the risks and advantages of each PV technology and cost out your options to drive performance and achieve the very best ROI
• Demonstrate your bankability: Make the right choices, from technology and interconnection to suppliers and EPC partners, to achieve fast fi nancial closure in South Africa
• Project supply chain management: Benefi t from experience and get expert solutions that promise to save you time, frustration and money
5 REASONS TO ATTEND
1 Only conference 100% dedicated to the successful development of PV projects in South Africa
2 Leading technology and solution providers in the only PV project development focused exhibition
3 Online eNetworker which will allow you to contact fellow attendees pre and post event
4 Targeted agenda on tackling the fi nancial, procurement and technical challenges that are unique to South Africa
5 150 PV experts from EU, USA and South Africa, with top level speakers experienced in executing PV projects worldwide
PV Project Development Summit South Africa3-4 September, Hilton Sandton Hotel, Johannesburg
THE MOST IMPORTANT AND RELEVANT PHOTOVOLTAIC EVENT IN SOUTH AFRICA
Researched & Organized by
Offi cial Partner
SAVE UP TO €500 IF YOU REGISTER EARLY
Feedback from our latest PV events
PV_SA12_ad1_8.5x11_aw.indd 1 23/05/2012 17:36
8
Risk jeopardises European
offshore windConstruction risks for offshore
wind farms in Europe may threatenthe capital market funding required to
install them over the next few years, according to a major ratings agency.
The following article comes from our friends at Wind Energy Update, a compa-ny dedicated to the construction, installation and power generation of offshore wind farms, offering their independent view on what’s happening and why.
by Sam Phipps
The planned expansion of offshore wind farms will only be successful if the high levels of risk in construction, operation and technology are reduced, Fitch Ratings has said.
Most offshore farms so far have been financed mainly from utilities’ cor-porate balance sheets. However, as projects grow in scale other sources of funding will be needed and these may not be forthcoming without a marked drop in risk.“Offshore wind has much less of a proven track record than onshore wind, and experience so far in Europe has shown that adverse weather con-ditions can significantly alter construc-tion schedules as well as project main-tenance schedules,” Jelena Babajeva, director of global infrastructure at Fitch, told Wind Energy Update.
New or imminent turbine models are perceived as bringing more of a tech-nological risk, she said. Siemens and Vestas remain the leaders in offshore turbines, but RePower and Areva are gaining market share with their 5MW units.
“The industry is moving towards bigger (5MW and higher) and more offshore-specific turbine models, for which there is less or even no operat-ing track record,” Babajeva said.
“But offshore wind is certainly on the agenda – there will be more develop-ments, though maybe less than laid out in national plans currently.”
The UK plans to increase installed ca-pacity six-fold to 12GW and Germany, with relatively little installed to date,
by an even bigger factor to about 10GW by 2020. This is partly to com-pensate for its promised phase out of nuclear power.
In a report published on May 23, Con-struction Risk in Offshore Wind Farms, Fitch outlined a series of concerns – from cable installation to complex marine logistics and the involvement of numerous contractors on any given project – as potential barriers to growth in the European industry.
Other construction risks centred on the “sub-investment grade financial strength” of many smaller contractors in the supply chain. In addition, the larger turbines posed extra challenges to ports and vessels.
Taken together, the risks could make it harder for operators to acquire the necessary funding for large offshore projects than has been the case for the oil and gas sector, where debt is usually guaranteed by investment grade sponsors until construction is completed.
Contracting strategiesMelanie Grimmitt, partner at Pinsent Masons law firm in London, said: “We’re seeing the adoption of ideas from other sectors, in particular the use of alliance principles.”
In this respect, the supply chain is developing a collective approach to problem solving for delivery of a project. For example, collaborating on re-sequencing, vessel availability, or pooling experience.
“There are a number of challenges with this approach but it is to the benefit of the industry as a whole if it proves it can drive down the capex [capital expenditure] of these proj-ects.”
A further complication is the OFTO (Offshore Transmission Owner) regime in the UK, under which the transmis-sion assets will be sold to a licensed transmission owner before genera-tion of electricity, Grimmit said. The contracts for the construction of these transmission assets have to reflect
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this eventual on-sale to an unknown purchaser and provide that purchaser with robust remedies in the event of any defects.
“We are seeing this aspect of the de-velopment being packaged up sepa-rately from the rest of the project to make this future transfer easier.”
Also, the requirements of possible future funders must also be taken into consideration from an early stage. The size of the Round 3 projects are such that the developers will inevitably seek joint venture partners and other fund-ing solutions.
A recent example is the EdF Energy/Eneco joint venture for the Navitus Bay Offshore Wind Project.
“At the moment, there are few ex-amples of external funders being engaged prior to completion of con-struction, but as the industry matures and construction risk becomes better understood, that may change.”
Regulatory hurdlesSimon Luby, associate director of Sgurrenergy, said the German offshore market so far had been marked by
delays and confusion, some of it stem-ming from an inconsistent approach by BSH, the Federal Maritime and Hydrographic Agency, which regulates the country’s fledgling industry.
BSH has made extra demands on op-erators and contractors after financial close of construction projects, Luby said.
“Offshore wind is still difficult, still expensive and risky for everyone involved,” he said. “But it can be done. In the German context you have to remember they have effectively gone from zero to Round 3 with nothing in between, whereas the UK, Dutch and Belgian markets have done it gradu-ally.”
Colin Morgan, regional manager of GL Garrad Hassan, said offshore wind had progressed significantly in terms of operations.
“Access has always been known to be a critical problem, so it is paramount to get reliable turbine design right first time. Offshore is windier, turbines spend a lot more time under high-load/high drive-train loads. So things break more often or more quickly and
if you can’t get there to fix it, it be-comes an extended period of down-time.
But a lot of problems five or six years ago stemmed from having the wrong vessels and poor landing techniques, he said, and these have improved.
“You’ve got game changers like dy-namic walkways. Helicopters look like they will play an increasingly impor-tant role in the offshore wind business too, which will clearly take a lot of the weather factor out of the equation,” Morgan said.
“Operational risks will continue to impact on the industry but not to the point that it stops it from growing.”
To respond to this article, please write to the Editor: Rikki Stancich at [email protected]
An offshore wind farm in Denmarkphoto by IStock
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Feature Last Call for submissions: Zayed Future Energy Prize
2013Is your company, organization or school working on an innovative renewable energy idea? You could receive part of a $4M prize fund for your novel idea!The prestigious Zayed Future Energy Prize is an annual award that honours outstanding person-alities, companies, and NGOs that have made a significant impact in the field of renewable energy and sustainability. Launched in 2008, the prize is named in honour of the late Sheikh Zayed bin Sultan Al Nahyan, Founding Father of the United Arab Emirates. His legacy of environmental stewardship and sustainability was pivotal in the country’s history and heritage and is taken forward by the current leadership and expressed anew in the spirit of the annual Zayed Future Energy Prize.
Applications have been open for the 2013 edition of the Zayed Fu-ture Energy Prize campaign since March 5, 2102. Large companies, non-profit organizations, small and medium enterprises, individu-als and global high schools are all eligible to join.
Submissions close on July 16, 2012. Should you want to nomi-nate an individual for the Lifetime Achievement Award, you should do so, taking into consideration that they would need to submit their candidacy by the close of submissions date.
Throughout the past four years, The Zayed Future Energy Prize has received over 1,800 nominations from over 100 countries. Previous winners include Toyota Corpora-tion, Vestas, Dipal Barua of Bright Green Energy Foundation, Sch-neider Electric, The Carbon Disclo-sure Project and Dr. Ashok Gadgil of Lawrence Berkeley National Laboratory.
The 2013 ZFEP awards include a Global High Schools Prize cat-egory in addition to the expanded categories from 2012: Large Cor-porations, Small and Medium Enterprises, Non-Governmental Or-ganizations and Lifetime Achieve-ment for an individual.
Large Corporation would receive a recognition award. The winner for Small and Medium Enterprise will receive $1.5 M, the winner for, Non-Governmental Organizations will receive $1.5M and the Lifetime Achievement winner would receive $500,000. Winning schools from Asia, Africa, the Americas, Ocea-nia and Europe will receive up to $100,000 each.
The Zayed Future Energy Prize aims not only to recognize contri-butions to the future of renewable energy, but also to promote the ad-vocacy of sustainability all the way to the grassroots level. Join today!
For more information, visit the Zayed Future Energy Prize website at http://www.zayedfutureenergyprize.com/en/. Applications and nomina-tions may also be done directly at http://www.zayedfutureenergyprize.com/en/application-process/how_to_apply/.
Global investment in renewable energy soared to a new high last year despite the recession. However, some experts say that this may show signs of slowing down unless current market conditions improve. New projects being built this year, especially in the solar sector, may help keep the momentum strong.
Solar power has surpassed wind power in amount of investments made, a significant fact as wind power usually receives the largest amount of global investments. The rapid spread of photovoltaic and other solar technology projects as well as the deadlock decision of the US Senate on the Wind Production Tax Credit may be a possible contributing factor.
Renewable sources now supply 16.7% of global energy consumption, according to the report entitled Global Trends in Renewable Energy Investment 2012 released by the United Nations Environment Program (UNEP).
The US solar sector has been the subject of much discussion as the issue on the US solar tariffs on Chinese-made solar systems continues. Last May 17, Commerce have
slapped on 31% for 59 companies including Suntech and Trina Solar while other companies will have 250%. This is Commerce’s preliminary decision on Solar-World AG’s complaint of Chinese companies illegally using subsidies in lowering their products’ prices and giving themselves an unfair advantage in the market. Many have predicted that the tariffs imposed on solar cells made in China would result in decreasing Chinese solar shipments to North America by as much as 75% in 2012. It was estimated that China was accounted for 2 giga-watts (GW) of imports, now estimated to drop to 1.5 GW. This may result in an increase in the cost of solar components by as much as 12%, hurting the solar
industry and the renewable industry as a whole. The Commerce Department an-nounced that the final decision on the tariffs will be handed down early October.
Despite the US trade tariffs on China, the solar industry is busy elsewhere as many solar companies announced installations and fundings of various projects worldwide. Sun-
tech Power Holdings Company, in particular, signed a 120-MW PV deal with distributor Krannich Solar for projects in Europe and Australia. CBD Energy in Australia closed $25 million in funding for construction of a project in Europe.
SPI Solar announced that it ended its first quarter of this year with a $300,000 loss, a minor recovery in comparison to the $1.9 million loss suffered in Q1 of last year. Their partnership with Thermi-Taneo Venture Capital Fund may have contributed to this increase as the two entered into agreements, two of which were successfully executed Q1 this year to increase solar energy facilities in Greece.
German firm Belectric made headlines as it became the world’s first company to install more than 1 GW of photovoltaic power in a span of 10 years. Their installations included 62 power plants worth 391MW-176MW in Germany, 125MW in France, 47 MW in Italy; 31 MW in the U.S; 8 MW in Europe, the Middle East and Africa; and 4 MW across the rest of the world, a 67.8MW park in Alt Daber, Germany and, most recently, a 70MW array in Brandenburg, also in Germany.
In India, the 40MW Dahanu Solar Plant in west Rajasthan costing $147.5 million is now generating power capable of lighting 70, 000 households. The plant is owned by Reliance Power Ltd and is said to be India’s largest photovoltaic plant. In the US, Cogentric Energy LLC’s 30MW Alamosa Solar Generating power plant in Colorado has begun generating power and is said to be the world’s largest concentrated photovoltaic system. The plant’s design consists of 500 dual-axis pedestal mounted tracker assemblies that are capable of producing 60 kw of energy each.
In California, the 550MW Topaz Solar Farm in San Luis Obispo County recently installed its first solar panel. The Topaz project is owned by Midamerican Solar and First Solar Inc. and is said to be one of the largest solar projects under construction in the world, costing $2 billion. Expected to be completed in 2015, the Topaz project will provide energy for around 160, 000 Califor-nia homes. 11
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China currently leads as the country with the most growth in the wind energy industry; 43% of new global installations are from them. However, due to technical issues of distribution and grid connection, the actual power they generate is less than the maximum capacity their systems can reach.
China plans to invest more than $400 billion to develop its existing wind systems; by 2015, they aim to bring their systems up to par with the total number of in-stalled wind systems across the globe.
Various companies announced plans of setting up and developing wind power systems around the globe. Vestas, the leading wind energy company that recently shipped 30 3-megawatt turbines to a wind farm in Ukraine, announced that South Korea has a potential for offshore wind power development as it has a substantial amount of coastal area. British Petroleum’s BP Wind Energy and Sempra US Gas & Power have plans in building a 21-megawatt wind farm in Hawaii that can power
Wind
up to 10,000 households. Construction has already begun and commercial operation is expected by the end of the year. Western Wind Energy said in a press release that they generated an increase of 855% rev-enue, from last year’s $511, 350 to this year’s $4, 883, 077. This increase is due to two newly operational generating facilities, Windstar in California and Kingman in Arizona, which generated 199% increase in energy production of more than 38MW for the first three months of the year.
A number of countries also have plans to develop their wind power systems. Japan plans to set up test sites for offshore wind power and marine energy in an effort to increase the use of renewable energy sources following the nuclear disaster last year. Romania’s wind power industry looks bright as the country attracted investors including Iberdrola SA (IBE), Portugal’s biggest utility EDP (EDP), Germany’s biggest utility EON AG and Italy’s Enel SA with its incentive program. The incentive program offered by Romania basically involves so-called green certificates, with a value of 28 euros to 58 euros given for each megawatt-hour of energy produced from wind. With its investment, Romania can double its wind capacity this year. Pakistan recently received an approval of $133 million worth of funds from Islamic Development Bank and Asian Development Bank to finance development of two wind projects.
Hydropower in the US may have a better future with the passage of a bipartisan bill. The Hydro-power Regulatory Efficiency Act of 2012 was recently introduced by representatives Republican Cathy McMorris Rodgers of Washington and Democratic Diane DeGette of Colorado. The Subcommittee of the House Energy and Commerce Committee held a hearing on the draft of the legislation that would improve the regulatory framework for hydropower development last May.
The bill may also help in shortening the time it takes to license hydropower projects, since currently it takes longer to license such projects than the licensing of other renew-able energy sources.
Another bill passed last April regarding hydroelectric generation eligibility for Califor-nia’s renewable portfolio standard would result in the state having large hydroelectric projects, bringing it closer to its goal of having a third of its power supplied by green energy. California is the second-largest U.S. hydroelectric producer, second only to Washington.
Klamath Irrigation District has a project in Oregon called “C-Drop” that searches for power from canal systems instead of dams. “C-Drop” works on a hydrokinetic system that relies on the ambient flow of water rather than the stored pressure in dams. Although conventional dams supply more power, canal systems are more efficient in supplying rural areas with energy.
Water
Research from the University of Wisconsin and Iowa State University shows that domestically pro-duced ethanol helped lower US gas prices by an average of $1.09 per gallon in 2011 compared to the $0.29 per gallon decrease in 2000. The price drop was due to an increase in ethanol production and higher inclusion of ethanol as oil and gasoline prices soared.
The USDA recently released its summarized report of stakeholders’ feedback regarding the road-map of how to successfully achieve the goal of 21 billion gallons of biofuel annually by 2022 set by the US Renewable Fuel Standard (RFS). The almost 1,000 feedbacks were garnered from 57 workshops held by the USDA since 2010, garnering key insights into common areas of interest such as policy stability, market development, complete economic analysis, additional biomass re-sources, and conservation reserve programs. Approaches towards local energy and utilizing wood and biomass for heat and power were also discussed. Bioenergy
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Wind
A Pike Research report stated that the industry of smart transportation systems is expected to see more invest-ments despite a decrease of spending in public infrastructures. The amount of investments is seen to approach $13.7 billion from 2011-2017.
Toyota in partnership with Tesla unveiled an electric version of the RAV4 at the 26th an-nual Electric Vehicle Symposium in Los Angeles, heralding it as the only all-electric SUV
on the market. Tesla supplied the RAV4’s battery and its electric powertrain, both rated to have an expected driving rate of 100 miles, an approximate charging time of 6 hours
and a battery warranty of 8 years or 100,000 miles.
Ferrari’s new hybrid F70 is said to replace the iconic Enzo as their most powerful and most expensive model with a price tag higher than the $850, 000 limited edition Enzo.
A Yahoo! Autos survey shows that majority of Americans say that they prefer smaller, more fuel-efficient vehicles. 49% of respondents said they would rather have bought a smaller vehicle while less than ten percent said they would consider buying if gas prices soared to $4-$5 a gallon. Regarding hybrids, a 55% majority said that a $1,000 difference was reason-able while 38% disagreed. Hybrids are generally $1, 200 more expensive than similar gas-only models.
Green Transportation
Green Buildings, Smart Grid and Energy EfficiencyMore “green homes” are expected to be built over the next years as demand increases. A report released by McGraw-Hill Construction at the National Association of Home Builders’ National Green Building Conference and Expo said that there is a perception that green homes are better built and more “high quality” than traditional homes, and that this would drive the market for the next 5 years. It is estimated that by 2016 energy efficient homes would make up 29-38% of the total con-struction market and would bring in $87-$114 billion in investments.
Another report done by Pike research said that the energy efficient homes market will reach $84 billion by 2020. With a growth rate of 44% due to energy efficiency and carbon mandates, the European Union will be seeing the strongest growth while rising economies in the Asia Pacific would expect a potential rise in green residential construction. North America, on the other hand, would be seeing the slowest development since existing building stock currently remains largely unad-dressed.
IBM in cooperation with the US General Services Administration will be installing an advanced “smart building” technology to monitor building performance and stream data to a central facility for analysis. Information generated would be used to make better decisions on how to save energy and reduce operating costs, an act that could save up to $15 million of tax-
payer’s money every year.
According to a report by GTM Research, East Asian countries China, Japan and South Korea have a collective smart grid market of about $8.5 billion. The number is anticipated to increase to up to
$19 billion dollars by the year 2016. In the US, a report by Zpryme states that the US smart grid market is forecast to grow 21% annually from 2012-2020. The network management system market is estimated to reach $1.05 billion in 2020 from $225 million this year while the cu-mulative total of global smart grid connected devices is expected to grow from $65 million to
$330 million in the same time frame.
Bioenergy
US vs China:A Possible
Trade War?by Gizel M. Salabao
The solar industry is expanding at an incredible rate; the number of PV installations for the first quarter of 2012 is 85% higher compared to PV installations from the first quarter of 2011. Solar industry investments have even surpassed those made for the wind industry, despite the latter being one of the most frequently targeted renew-able energy industries. However, a dark cloud might be on its way to loom over the sunny skies of the solar industry.
Tensions run high between the United States and China with the is-sue of the tariff imposition between them. One side says the other’s product pricing is illegal and is putting them out of business, while the other side says tariffs are only going to make the solar industry’s prices soar. With the conflict of opinion from these two sides, will the future of the solar industry in the US, and perhaps around the world as well, hang in the balance?
Tariffs: At the Core of It AllLast October, SolarWorld AG, on
on behalf of six other companies, filed a complaint against Chinese manufacturers saying the companies are being harmed by unfair trade practices. The company claimed Chinese companies were misusing government subsidies in order to lower their product prices, there-fore giving them an unfair edge in the market. Chinese manufacturers were also blamed for the bankrupt-cy of several US-based companies, including Solyndra, and the job layoffs that came with it.
In February, the US Department of Commerce released its preliminary findings on the case and confirmed that Chinese manufacturers were indeed illegally using the subsidies to gain an unfair advantage. Com-merce issued light tariffs of 2.9% to 4.73%, relatively small amounts that were unlikely to have much impact towards manufacturers. Last May, however, Commerce released another preliminary decision impos-ing a much higher tariff that was to be added to the last imposed one. Suntech Power Co. Ltd. and Trina Solar, along with 59 other
companies, will have a total rate of 31% while other companies will have 250%. This is much higher than the 15% Chinese companies expected. Commerce stated that their basis for the calculations for the tariffs was the determination of how the estimated costs of Chi-nese manufacturers fell below the cost of solar panels in the US. This sparked a controversy for countries that have non - market economies and where the government has a huge role in allocating land, credit and other resources, obscuring the real cost of a certain product.
A final decision on the tariffs is14
is expected on October.
Opposing ViewsThe imposition of a much larger tariff will re-establish a natural balance in the global marketplace, according to SolarWorld president Gordon Brinser. Brinser also added that cheap Chinese imports were to blame for the distortion of the US Market. Others also hold the opinion that the tariffs are to pave the way for more jobs in the US and to prevent layoffs from happening again. Alan Price from Wiley Rein, a law firm representing US compa-nies in cases involving the solar and wind industries, described China
“This will only lead to the increase of solar product
prices in the US which can have an effect on the
development of the industry in the country.”
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as a threat to America’s growing green energy division. Price said that “China’s method is straightfor-ward: it sets forth industry-specific Five-Year Plans and then uses all forms of national and local subsi-dies and other governmental sup-port to quickly transfer jobs, supply chains, intellectual property and wealth, to the permanent detriment of U.S. and global manufacturers.” He also added, “China’s ability to ramp up and overwhelm an industry is unique and particularly devastat-ing with new and emerging tech-nologies, where global competitors may be less established and can be knocked out more easily and quickly.”
Chinese manufacturers expressed their disappointment in the ruling and denied that it sold products below the cost of production. Shen Danyang, a spokesman for the Ministry of Commerce said in a statement on the ministry’s website: “The US decision lacks fairness and China expresses its strong displea-sure.” Li Junfeng, the president of government-controlled Chinese Renewable Energy Industries As-sociation said that the decision was a “surprise”, also stating that Chinese companies will retaliate by filing a case towards the Ministry of Commerce about the US alleg-edly dumping polysilicon, the main ingredient used in solar panels, on the Chinese market. China also ac-cuses the US of acting inconsistently with two World Trade Organization (WTO) rules and rulings in many aspects in their investigation on the illegal usage of subsidies for Chi-nese solar cells.
Chinese companies and other US-based companies who are against the tariffs say that this will only lead to the increase of solar prod-uct prices in the US which can have an effect on the development of the industry in the country. Opponents also say that the US benefits from inexpensive Chinese products as Chinese manufacturers often buy equipment used to make solar pan-els from American companies. They even hire local American workers for installation, set-up and repairs of the systems.
Market ImpactAnalysts agree that tariffs will result in the increase of costs by as much as 12%, slowing the demand for polysilicon. The change can hurt not just the solar industry but the whole renewable energy industry as well. According to Bloomberg, about $2.6 billion in exports were reported in 2011, with $700 million worth of exports towards China. On the other hand, China was reported to be responsible for 1.5-2 gigawatts of import but it is estimated that this will drop to as much as 75% this year.
SolarWorld AG stated that it should not be blamed for any trade war that will happen as its purpose for filing a complaint was a response to the thousands of job losses that were due to Chinese trade practices. DZ Bank analyst Sven Kuerten said that there will be no huge essential improvement for SolarWorld, adding that the tariff only helps the company in the US but China can sell their products to other countries, increasing the price pressure there.
Chinese solar companies report-edly hold more than 60% in the global market, 20% sales of which are held by the US market alone.
With huge tariffs limiting the sales in the US, companies in China are already looking for other countries to supply. Their sights are set par-ticularly on the growing markets of Japan that started present incen-tives for solar energy systems.
Workers at the Suntech Power Holdings Co. factory in Wuxi, Jiangsu Province, ChinaImage by Qilai Shen, Bloomberg
REGISTER NOW AND SAVE.www.solarpowerinternational.com
Generating BusinessThe solar energy industry is in high gear, and it’s time for you to grow with it. At Solar Power International 2012, plug in to the technologies, personal connections and professional insights that give rise to new opportunity. Growing your energy business begins at SPI.
Presented by:
September 10–13, 2012Orange County Convention CenterOrlando, Floridawww.solarpowerinternational.com
17Workers at the Suntech Power Holdings Co. factory in Wuxi, Jiangsu Province, ChinaImage by Qilai Shen, Bloomberg
2012:Focusing on the impending problems for the wind industry
Future prospects for the developing wind farm industry look uncertain with the dead-lock vote of the US Senate for the extension of the wind Pro-duction Tax Credit (PTC). This poses more problems like diffi-culty in increasing the revenues for owner-operators’ existing wind farms and dawdling de-velopment which will increase competition in the after-sales market for OEMs and service providers. And it doesn’t end there.
The main problem the wind energy industry will be facing is the looming threat of another boom-bust cycle that had happened before when the PTC was allowed to expire. A great percentage of instal-lations have dropped along with corresponding job layoffs. American manufacturers found themselves with no orders as wind project developers abroad were not making plans in the U.S.
The PTC is basically a per-kilo-watt tax credit for
electricity generated by mostly renewable energy resources. With the PTC, renewable energy industries like the wind energy are able to lower the costs of the power they provide to vari-ous households and encourage renewable energy production in the process. No PTC simply means higher costs and less ef-ficient ways of supplying en-ergy. However, issues like these can be put to a minimum with the right kind of knowledge and the right kind of people.
The Optimizing Wind Power Conference plans to bring together various people from the wind energy industry in an interactive forum based on real challenges and experi-ences. It seeks to minimize problems that will face the wind farm industry through critical discussions on how to make rationally and strategi-cally effective decisions. The 4th Annual Wind Power O&M will be taking place in Chicago, Illinois from the 25th to the 26th of September, 2012.
Its agenda will prioritize case studies based on real data and will include key topics on the improvement of mainte-nance and operations in the wind farming industry. This year will have more owner-operators as guest speakers, namely:
•Dan Brake, Wind Fleet General Manager, NextEra Energy Re-sources (Over 8500 MW opera-tional)•Brian Hayes, Executive Vice President, Asset Operations, EDP Renewables (3422 MW op-erational)•Gerrud Wallaert, Regional Operations Manager - Midwest/Northeast Operations, E.ON Climate and Renewables (2200 MW operational)•Todd Wynn, General Manager, Wind Operations, Enel Green Power (606.3 MW operational)•Dave Magill, Senior Vice Presi-dent, Asset Management, Com-petitive Power Ventures (253 MW operational)•Emil Moroz, Director of Tech-nical Services, AES Wind Gen-eration (1346 MW operational)
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Featured Event
•Magin Reyes, Wind Operations and Service Manager, Exelon (895 MW operational)•Gabriel Vaca, Director, Asset Management, NaturEner (210 MW operational)•Jean Lemaire, Project Director, Akuo Energy (348 MW opera-tional)•Ryan McGraw, Head of Asset Management, Orion Renewable Energy Group•John McGuinness, Wind Plat-form Leader, GE•Valerie Peters, Wind Reliability Lead Analyst, Sandia National Laboratory•Kevin Borgia, Manager, Public Policy, Wind on the Wires•Philip Totaro, Principal, Totaro & Associates•John Vanden Bosche, Principal Engineer, Chinook Wind•Senior Representative, S&C Electric Company
With a clean, abundant and affordable energy source, the wind energy industry is growing. Optimizing Wind Power O&M aims to develop its growth by helping with the improvement in the operations
in less ways to prevent future setback that owner-operators might face.
Last year’s Optimizing Wind Power Performance had been well received. This year is expected to be even more en-gaging with planned roundtable discussions to allow attendees to extend their networks and learn how to handle challenges that their colleagues have expe-rienced.
The event is a critical annual meeting for major wind energy players ranging from wind maintenance, wind opera
tions practitioners, wind plant owners, wind turbine manu-facturers, ISPs and technical experts.
The 4th Annual Opti-mizing Wind Power O&M will be held at The Mid-America Club in Chicago. Check out the event or register at http://www.greenpowercon-ferences.com/EF/?sSubSy-stem=Registration&sEventCode=WE1209US&sSessionID=209257c4d0a513b0ebddc0fdc73970a8-12738122..
For more information, check out the Optimizing Wind Power Conference site at http://www.greenpowerconferences.com/EF/?sSubSystem=Prospectus&sEventCode=WE1209US&sSessionID=3073436c54748e52bc559486159de1b7-13125116.
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19
Wind energy supply chain best practice from the oil
and gas industryThe following article comes from our friends at Wind Energy Update, a company dedicated to the construction, installation and power generation of offshore wind farms, offering their independent view on what’s happening and why.
The wind industry supply chain is expanding. It is important to implement the successful supply chain strategies of established industries such as; oil &gas, aerospace and automotive. Wind energy’s long term commercial success depends on correct implementation of the supply chain. An exclusive report has been produced by leading supply chain experts from inside and outside the wind industry. Contributions from: Kay Biebler project manager of REpower, and leading consultants Kevin Druggan, Bruce Arlinghaus and Stephan Freichel. They discuss the best practice from other industries and how they can be implemented into the wind energy supply chain.
Due to the relatively young age of the industry, the wind supply chain has the opportunity to learn from other industries and implement their successes. Kay Biebler believes “wind has to have its own way with elements of a couple of industries”. Through taking on board what established industries have learnt is right and wrong, wind has the opportunity to be even more successful. Bruce, on this point, explains that “the main thing is that wind does not need to repeat the mistakes made by others beforehand.”
So how does the wind industry ensure that these mistakes are not repeated? In this report Kevin Drug-gan explains that “Strong supply chains are designed based on principles and guidelines, not manage-ment and meetings.” Stephan has a similar feeling , “One of the key areas, where people will lose or make money, I believe, is planning of the supply chain.” So with the right principles and planning the wind energy supply chain can expand, whilst implementing best practice.Hear how to implement best practices into your own supply chain strategy.
Get a free copy of the 14 page report at http://www.windenergyupdate.com/supply-chain/content5.phpThe contributors will be speaking at the 4th Annual Wind Turbine Supply Chain Conference. Download the conference brochure to see who else will be presenting; including Areva, Nordex, Vattenfall at http://www.windenergyupdate.com/supply-chain/conference-event-brochure.php
For comments and suggestions feel free to contactCarrianne MattaVP Supply Chain | Wind Energy Update+44 (0)207 3757 164 | [email protected]
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22
Fact or Fiction:Water as Fuel?
b y G i z e l M . S a l a b a o
In this technological age, the demand for more energy to fuel the things we use in our everyday lives is increasing exponentially, and so does the search for new energy sources that are more
efficient and less costly. However, a new breakthrough in clean energy
technology is making quite a stir as it promises tremendous amounts of energy from a most peculiar source:
water vapour.
Blacklight Power, a company from Cranbury, New Jersey founded in 1991,
claims to have discovered a simple and inexpensive way to harness vast
amounts of energy from hydrogen atoms from water. He describes it as
a non-polluting process of harnessing energy to form “hydrinos”. These are
smaller, more stable forms of hydrogen which can produce 200 times more energy than burning the equivalent
amount of H2 in H2O, an incredible feat that may potentially boost not just the energy industry but also the
economy. However, there is one slight catch: the process opposes the theories
of quantum mechanics as most scien-tists say.
Water Vapour FuelDr. Randell L. Mills, a physician who studied engineering and chemistry at
Harvard University, is also the founder of Blacklight Power and its
A potentially revolutionary idea that sparks debate as the theory behind
it goes against almost a century’s worth of known science.
technological advance, the hydrinos. These are said to be a form of hydro-
gen in a state lower than its ground state. According to Dr. Mills, there is data that indicates that hydrinos are
the dark matter of the universe; dark matter which comprises essentially all
of the matter in the universe. Hydrinos are said to be formed by extracting the hydrogen from water or water vapour;
electricity is then produced by means of a Catalyst Induced Hydrino Transi-
tion (CIHT) cell, which is similar to a fuel cell. Dr. Mills’ process involves the collision of hydrogen atoms with
certain other atoms or ions, which are referred to as “catalysts”. The cata-
lyst is the individual or nascent HOH molecule formed by the reaction of
hydroxide ions of the electrolyte with hydrogen at the anode in the CIHT cell as the hydroxide ion is oxidized or loses an electron to the external circuit to propagate electricity. The
collision causes two things: the shrink-ing of hydrogen atoms to hydrinos
and the release of energy. The hydri-nos can then still become smaller as
they collide with other catalysts, thus becoming smaller and releasing more
energy than what was produced in the previous collision. Dr. Mills states that the energy will be released as external
electricity that completes the circuit through the internal flow of chemicals
of the cell, which in turn propagates additional hydrino formation in a con-
tinuing cycle.
This process is far less expensive than other conventional energy sources that
involve hydrogen as there is no need for costly hydrogen sources, fuel infra-
structures, grid backup or load levelling power. The only fuel the CIHT needs is
water in any form or purity. Dr. Mills further explains that in less than two months of utilizing it, the CIHT unit
can save enough in electricity costs to pay for the cost of acquiring the unit,
whereas current hydrogen systems are not as competitive with conventional
sources of electricity.
Last May 2012, BLP announced through a press release that hydrino
technology has been validated by experts in six independent studies
done by experts from the California Institute of Technology and Massachu-setts Institute of Technology, and that the company has managed to collect
around $5 million in funding. Dr. Mills plans to complete a 100 W unit by the
end of the year and another 1.5 kW pilot unit for 2013. The cost is antici-
pated to be less than $100 per kW and the projected development cost of the
1.5 kW unit is $20 M.
BLP also plans to expand its market outside residential power and into
transportation. Dr. Mills has his eye on the electronic car Tesla Roadster as a
good model to hold a scaled CIHT cell.
Controversy and CriticismsA technological breakthrough like this is not without its downside and criti-
cisms. For starters, it sounds too good to be true, and with profound reason.
Most scientists say Dr. Mills’ concept goes against the known theories of quantum mechanics. Dr. Mills even
formulated a new form of quantum mechanics called “The Grand Unified
23
Theory of Classical Quantum Mechan-ics” to back up his explanation of the
hydrino formation.
Many experts have termed his concept as a “pseudoscience”. Wolfgang Ket-
terle, an MIT scientist and Nobel Prize laureate in Physics, called it a “scientific nonsense” and that hydrogen, the most
abundant element in the universe, has had enough time to find its ground
state. Anthony Leggett, another Nobel laureate and a physics professor at the University of Illinois at Urbana-Cham-paign stated that quantum mechanics is already “consistent with just about
everything we know about atomic physics, so the onus is firmly on any-
one who wants to discard it to prove his case.” Another well-known critic
of Dr. Mills is Robert L. Park, a retired physics professor from the University of Maryland whose mocking column
about the company, along with an outside query which was made anony-
mously, was said to have prompted the patent director to withdraw the BLP’s patent application for further review
back in 2002.
Dr. Mills’ response to critics’ statements was that they are only based on the
assumption that the Theory of Quan-tum Mechanics is correct rather than
physical laws. He says BLP’s data relies on physical laws to prove the process.
Many experts have termed his concept as a “pseudoscience”. Wolfgang Ket-
terle, an MIT scientist and Nobel Prize laureate in Physics, called it a “scientific nonsense” and that hydrogen, the most
abundant element in the universe, has had enough time to find its ground
state. Anthony Leggett, another Nobel laureate and a physics professor at the University of Illinois at Urbana-Cham-
paign stated that quantum mechanics is already “consistent with just about ev-erything we know about atomic phys-
ics, so the onus is firmly on anyone who wants to discard it to prove his
case.” Another well-known critic of Dr. Mills is Robert L. Park, a retired physics professor from the University of Mary-land whose mocking column about the company, along with an outside query
which was made anonymously, was
B l a c k l i g h t P o w e r L o g oI m a g e s f r o m b l a c k l i g h t p o w e r . c o m
said to have prompted the patent director to withdraw the BLP’s patent application for further review back in
2002.
Dr. Mills’ response to critics’ statements was that they are only based on the
assumption that the Theory of Quan-tum Mechanics is correct rather than
physical laws. He says BLP’s data relies on physical laws to prove the process.
In 2011, The European Physical Journal D selected a paper co-authored by Dr.
Mills titled “Time-resolved hydrino continuum transitions with cutoffs at
22.8 nm and 10.1 nm” as the high-lighted paper. However, an editorial
in the journal clarified that choosing it as the highlighted paper did not mean
endorsement of Dr. Mills’ theory. It also adds that “despite the reserva-
tions about the “hydrino” hypothesis expressed by some members of the
scientific community, we decided that, after ensuring that the paper passed all
necessary refereeing procedures (re-view by two independent senior mem-bers of the academic community), we should publish this paper rather than silence the discussion by rejecting it.
We view this as the most effective way to stimulate scientific discourse, encour-
age debate, and engage in a meaning-ful dialogue about what is admittedly a
controversial postulate.”
What’s equally interesting in this dispute of science vs. pseudoscience is that the concept of hydrinos has been
around in as early as 1986.
BLP has announced through a number of its press releases commercialization of the technology, first in 1999, then
again in 2005, in 2009 and, most recently, last May 2012. The first three
announcements yielded no form of commercialization despite the com-pany earning around $60 million in
2009, in addition to the recently an-nounced $5 million funding collected. There have also been numerous deals with larger companies for utilization
over the years but there is still no real output to date. When asked about this issue, Dr. Mills’ response was “At each trial moving ever closer, Edison toiled
at 6000 filaments before he finally succeeded in providing the world with
incandescent electric lighting. Science is often not a “perfect science” and trial and error is inherent to the process of
scientific discovery. After facing and overcoming extraordinary challenges,
we finally achieved electricity using this technology.”
Will 2012 mark a change in BLP’s claims, proving to the world, its crit-ics, and almost a century’s worth of
known physics, that water vapour fuel and the theories surrounding it is not just a claim but is indeed a reality, or
will it continue with its track record of always inciting optimistic and intrigu-
ing expectations but never showing any real outcome? Only time will tell.
But for now, whether this ingenious yet idiosyncratic concept is a real, feasible science or an out of reach fantasy still
to be realized, you be the judge.
New ERA, New VISION, New OPPORTUNITIES
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WCCW Advisory Committee
Thomas SarkusDirectorNETL, DOE
Li JinPingPresidentLu'an Group
Dennis BracyCEOUS-China Clean Energy Forum
Andrew MinchenerAssoicate PrincipalIEA CCC
Peter SallansChairmanAdvisory Council,Underground Coal Gasification Association
Fredrick D. PalmerSenior Vice PresidentPeabody Energy
Chen Xiang'enPresidentHenan Coal Chemical Industry Group
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Huang ShenchuPresidentChina Coal Information Institute & National Institute for Occupational Safety
World Clean Coal WeekChina Focus 20123
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New ERA, New VISION, New OPPORTUNITIES
Hear from senior government officials from China, Japan, India, Indonesia and the U.S.Project updates on the CTL, CTG, MTO and MTP demonstration projects in ChinaInnovations and key developments in clean coal technology – Gasification, Liquefaction, MethanationOne tailor-made mini-workshop to meet policy makers from the authority of XINJIANGTwo-day post-conference FIELD TRIP to two key sites in Inner Mongolia
WCCW Advisory Committee
Thomas SarkusDirectorNETL, DOE
Li JinPingPresidentLu'an Group
Dennis BracyCEOUS-China Clean Energy Forum
Andrew MinchenerAssoicate PrincipalIEA CCC
Peter SallansChairmanAdvisory Council,Underground Coal Gasification Association
Fredrick D. PalmerSenior Vice PresidentPeabody Energy
Chen Xiang'enPresidentHenan Coal Chemical Industry Group
Gu ZongqinPresidentChina National Petroleum and Chemical Planning Institute
Zhang MinglinVice General ManagerYan Kuang Group
Huang ShenchuPresidentChina Coal Information Institute & National Institute for Occupational Safety
November 5-8, 2012
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