Renewable Energy
All Articles Dealing with Wind,Solar,Geothermal,Biomass,Tidal,Wave and other sources of Renewable Energy
June 30, 2011
Note the cost of Hydropower at $1-3/watt are quite large and if not planned and implemented correctly can lead to huge time and cost escalation.The Inga 3 Dam being proposed to be built on the Congo River in the DRC faces tough choices.The Hydro Dam on the Congo which will become the biggest hydro power project in Africa is wresting over design issues.The major choice is between tunneling through rock structures or keeping open channels.Note the total cost of the 7 GW Power Plant will be around $14 billion making it the biggest investment in Congo and the 5th largest Hydro Power Plant in the world.Note Africa suffers from chronic power shortages which will become more acute with rising cots of fossil fuels and increasing per capita electricity demands.Making correct decisions on energy is vitally important for the development of the African continent.China is the country with the largest hydro power capacity at 200 GW which it wants to further increase to a massive 400 GW by 2020.
June 30, 2011
Wind Power in India has been growing at a rapid pace making India the 5th largest global market for wind energy despite limited resources of wind energy.India Wind Power Plants are all set to grow with the entry of new wind power developers like Metal Traders MMTC and Ushudeve International.Note MMTC is the state owned metal trading giant while Ushudev is the 3rd largest private sector trader in metals after Adani and Surana Groups.New Wind Farm Developers like Caparo,Greenko,Genting,Techno Electric have already put agressive wind expansion plans in place.Now MMTC and Ushudev have joined the wind party as the economics of wind energy look enticing given the massive shortage of energy and the incentives given the government like GBI,Tax Breaks etc.
June 28, 2011
REC is looking to invest more than $600 million to set up 300-400 MW capacity in India and is already talking to the Himachal Pradesh government to set up plants there.REC has said that it is looking for power plants with a PLF of more than 50% which automatically rules out wind and solar energy.Its interesting that REC is concentrating on small hydro and biomass power capacity unlike other PSUs which are mainly concentrating on solar energy.India needs massive amounts of investment in renewable energy in order to meet its 15% Renewable Energy Obligation by 2020 from 5% at present.Its instrumental for the large government companies to invest heavily into clean sources of energy.Power Finance Corporation Green Energy has been set up by PFC to become one of the biggest lenders in Green Energy and now REC has also decided to directly invest in Green.More such initiatives will have to be taken to increase the cleantech energy capacity.
June 23, 2011
India has set a target of 20 GW of Nuclear Energy by 2020 from around 5 GW now and has already signed deals with major nuclear equpment suppliers like Areva,GE-Hitachi and Toshiba.However the Nuclear Disaster at Fukushima has changed things on the ground with protests growing by the day.Note only are the proposed nuclear reactors at Jaitapur facing massive protests,even the existing nuclear power plants in India are seeing locals raising their voices.Recently many prominent citizens of India signed a protest letter against the upcoming Jaitapur plants.Note the advantages and disadvantages of nuclear power has been debated on for a long time.The catastropic risk of a nuclear reactor meltdown is the biggest con of nuclear energy and has made it intolerable in a number of countries.After Japan has decided to kill nulcear power in the country,other progressive countries like Germany,Italy and Switzerland too are going to switch off nuclear reactors once the life of the existing plants are over.
June 21, 2011
Japan's Solar Energy Manufacturing Industry is quite large and second only to China which may surprise a lot of readers. Sharp was the largest solar company by revenues and the other six zaibatsus have been present in the solar power manufacturing for a long time.Mitsubishi the Japanese conglomerate with diversified global interests has a big presence in solar and wind energy as well.It has a low profile solar module and system business.The company is known for its high quality panels and has a decent presence in USA and Japan.However like Kyocera it has not been aggressive enough leading to loss in marketshare.
June 1, 2011
Indian Telecom Companies are using more than $500 million in fuel subsidies meant for the poor and generating more than 6 million tons of carbon dioxide every year by using diesel gensets at telecom towers not connected to the grid.Note the Telecom Industry in India has not exactly covered itself with glory on other matters with the 2G Telecom Scam already putting top executives in jail and implicating top telecom companies as well.The issues of massive fuel wastage in telecom towers has been raised in the past in greenworldinvestor as telecom tower companies viom,gtl,airtel and others have tried to put lipstick on the pig by making a mockery of green initiatives by committing to convert only a minuscule number of total towers to renewable energy.
May 31, 2011
Malaysia is one of the biggest hubs of solar manufacturing in the world through aggressive government support programs and tax holidays.It is home to the biggest manufacturing site for the world's most valued solar company First Solar and has been the preferred choice for solar investment from leading global solar companies .The Reasons behind Malaysia’s Success is government support in the forms of tax breaks,loans,simple regulation and low labor costs.While many of these subsidies have been given by other countries like Singapore,Malaysia has done it with a finesse and dedication that has made it a winner.Many world class companies have started solar manufacturing operations in Malaysia like Flextronics,Q-Cells,Sunpower and First Solar.The country has been planning to implement an ambitious Feed in Tariff program to subsidize Renewable Energy generation.The country has been inspired by Germany whose FIT policy has led it to become the largest solar generating country in the world despite its low solar radiation.
May 31, 2011
Japanese Nuclear Giant Toshiba which is the second largest seller of complex nuclear equipment globally is looking to shift its focus towards Renewable Energy and Energy Efficiency.The company is already facing delays in shipping nuclear reactors to customers as the Fukushima Disaster makes governments around the world rethink their nuclear power ambitions.The Nuclear Energy Disadvantages are winning over the Advantages currently in public sentiment.Toshiba which acquired US Westinghouse has a target of selling 39 nuclear reactors which is getting delayed.With advanced nuclear power countries like Germany,Switzerland and Japan killing nuclear energy,the going looks tough for Toshiba.The company was already facing tough competition from the GE-Hitachi and Areva as well as new players from South Korea and China in the nuclear equipment market.
May 30, 2011
German utilities have protested against the move as recently they were buoyed by the decision of the Merkel led government to extend the life of the nuclear reactors by more than 10 years.However the weight of public opinion has made the German government go into the damage control phase ( though too late in my opinion.German power companies too know that going against popular opposition will be quite fruitless.Note Germany faces problems as the replacement of the 7 shutdown nuclear reactors will be difficult to replace.Solar Power has been playing an important role but in winter this problem may become acute.According to some analysts,Germany will have to import power (nuclear as well) from other European countries.This will lead to increase in electricity prices.However its a great win for all forms of Green Energy as Germany has no alternative but to go with Green Energy as Germany does not have abundant reserves of Cheap Gas (like USA).Also Coal has its disadvantages which make it very difficult in an environmentally conscious country like Germany.
May 29, 2011
Switzerland has voted to not build any new nuclear reactors and not to extend the life of the existing nuclear plants once their expected life ends.The […]
May 12, 2011
Poland is one of the largest countries in Europe to have such a high dependence on Coal Energy to meet its Electricity Needs.Note European Union has a target to meet 20% of its Energy by 2020 from Renewable Energy sources which has mad the fossil fuel dependent Eastern European countries looks towards Wind,Solar and Biomass Energy.Note Eastern European countries like Romania have seen a boom in wind energy driven by incorrect Green Energy subsidy policies while the Solar Boom in Czech led to a drastic increase in electricity prices forcing the government to Bust it with a combination of FIT cuts,tax increases and strict regulation.Poland which is the largest Eastern European country in the EU has traditionally depended on Coal to meet most of its Energy Needs.Despite the major disadvantages of Coal,Poland has resisted reducing the support given to the Thermal Power Industry.The cheapness and abudance of Coal has made it hard for Poland to shift its Energy Policy like other Coal dependent nations like South Africa,China and India.
May 12, 2011
Offshore Wind Energy is supposed to increase from around 3 GW today to 75 GW by 2020 as countries in Europe,Asia and North America heavily support this industry.Onshore wind energy growth on the other hand is expected to slow down as 38 GW of Wind Capacity were installed in 2010 with Western Markets showing a sharp slowdown.Note every industry sees costs declining with large capacity except the mature industries.For example Wind Energy has seen a 10% decline in costs for every 100% increase in installed capacity.Note offshore wind projects offer even more Wind Energy Advantages than normal Land Based Wind Farms.The only problem facing offshore wind power is high costs as the industry still is on the learning curve.PWC has come up with a survey where most of the participants say that it will take 10-15 years for offshore wind energy to reach grid parity.What this means is that Offshore Wind Energy Companies will continue to depend on government subsidies like higher electricity prices,tax breaks,low interest loans to survive.
May 12, 2011
Power Finance Corporation Green Energy has been floated as a subsidiary of one of India's biggest power sector financier Power Finance Corporation.As the name implies the company's mission is to provide loans to India's Green Energy Industry.Note India requires around $10 billion dollars according to the government plans of building 17 GW of Alternative Energy Capacity in India between 2012-2017 which is low in my view.However even this low target will require a massive amount of debt financing to the tune of around $6-7 billion annually.Power Finance Corporation is one India's largest infrastructure financing companies owned by the government.The company which has billions of dollars of loan assets to the Power sector in India has naturally entered the fast growing Green Energy area as well.
May 11, 2011
Nuclear Energy has been dealt a very heavy blow with Japan deciding to stop building any new nuclear plants from now onwards.PM Kan in a dramatic move announced that Japan's plan to build 14 new nuclear reactors which would increase the share of nuclear power to 50% from 30% has been canceled.The new energy plan of Japan will have more focus on renewable energy and energy efficiency.Note Germany had already shut down 7 of its old nuclear plants with immediate effect following the Fukushima disaster.These nuclear reactors have almost no chance of being started back as hundreds of thousands of German protested against nuclear energy and the Green Party won its first government in Germany.Italy and Switzerland too have put their nuclear power plants under review while other countries too are slowing down the approval process for new nuclear reactors.Nuclear Power in its current form seems to be dying in the developed world with other developed countries too facing opposition to nuclear plants.Note the effects of Nuclear Radiation are quite deadly and widespread even in lower doses or sieverts as was brought to the fore during the Fukushima disaster.It can lead to billions of dollars in lost economic activity.Already 3 major disasters have unfolded in the last 40 years in USA,Russia and Japan despite the safety touted by the Nuclear Industry.
May 10, 2011
JSW Energy has set up JSW Green Energy a 100% subsidiary to enter the renewable energy in India.Not while Wind Power in India is already a huge industry with more than $3 billion in annual investment,Solar Power in India is set to eclipse this soon.JSW Green Energy is looking to set up solar power plants and solar rooftops in the country.For this it has ordered 500 KW of CIGs solar panels from embattled American Thin Film company Energy Conversion Devices.Note ENER is already under huge pressure as it fails to compete with low cost Chinese players.ENER which markets its BIPV Solar Panels under the United Solar brand sells mostly in France and Italy which have higher subsidies for BIPV Panels.Like other American companies ECD has significantly ramped down and moved Green Jobs to Mexico in order to suriveNote CIGs Panels are of lower efficiency than the normal mainstream crystalline solar panels.ENER Solar Panels are mostly used in BIPV and BAPV applications since they are not as cost effective and efficient as normal solar panels.Thin Film in India is rapidly increasing penetration with the Thin Film Leader First Solar targeting 100 MW of Solar Panels in 2010 itself which would make it the biggest solar panel supplier in India.
May 10, 2011
Ontario Canada has a comprehensive solar subsidy policy which mandate that a large percentage of solar components be manufactured in Ontario in order to receive the Feed in Tariffs.This has led to a mini manufacturing boom in the province with a number of companies like Conergy,MEMC,Enphase,Canadian Solar putting up factories to take advantage of the FIT.Japan which is also a large manufacturer of solar panels with major Japanese solar companies like Sharp,Kyocera has taken Canada to the WTO citing improper competitive practises.India which has one of the largest potential in solar energy installation too has promulgated a law that requires domestic content requirements.Solar Modules must be produced in India to gain FIT under the JNNSM.This law is expected to become stricter with solar cells also to be produced in the country in the future.This has drawn howls of protest from American officials who too tried domestic content in their subsidies under the Stimulus Act.
May 8, 2011
Gujarat has been leading Indian states in the Solar Energy sector signing PPAs to build more than 900 MW of power capacity in the next couple of years even as the federal subsidy JNNSM flounders.Gujarat is one of the leading industrialized states in the country and has been looking to boost renewable energy sources like Tidal Energy,Offshore Wind Energy,Geothermal Energy as well.Wind Energy has also been in the radar of the state government which is looking to realize the 10 GW potential of Wind Energy in the state.After a strong 2009 when 295 MW of Wind Power was installed that slowed down to 100 MW.The main reason was the unavailability of the power grid to connect wind power plants.Note Gujarat possesses one of the best wind sites in the country in the western part of Saurahstra.
May 7, 2011
HAREDA which is the state renewable energy development agency akin to MNRE at the centre will put these solar farms under a fast track approval process.Note Red Tape in India is quite notorious especially for small project developers who lack the connections and resources to get things done.Note Haryana gives seperate incentives on its own for solar energy,solar water heaters and solar lighting as well.Haryana is desperately deficient in renewable energy despite being one of the most industrialized and fastest growing states in the country.Haryana cities like Gurgaon and Faridabad have benefited hugely from being part of India’s National Capital Region (NCR).However Haryana only generates 0.5% of its 4000 MW of Electricity from Renewable Energy Sources.The state has negligible Wind or Biomass Energy.Despite a Department of Renewable Energy being setup to specifically promote the use of Alternative Energy Sources,the state has not had much success.Haryana is richly endowed with Solar Energy Resources with 320 days sunny days.The State has managed to win some allocation from the centre’s JNNSM scheme.It is also promoting the use of solar energy through disseminating solar kits amongst 2000 schools and providing solar lighting in around 500 villages.
May 7, 2011
Renewable Energy in India has seen decent growth in the past mainly driven by Wind Energy which accounts for almsot 65% of the estimated 20 GW of Green Energy capacity installed in the country.However to meet India's 2020 Green Energy Target of 15% of power to be generated from renewable sources set by CERC,at least 40 GW more would need to be installed (that is a conservative estimate as load factors for green energy are lower).This is assuming that India meets its target of raising the power capacity to 400 GW by 2020 from around 175 GW at present.Solar Energy in India has not got off to a good start despite immense potential as the federal subsidy program JNNSM has seen irrational bidding by bit players and debt financing is difficult.Wind Power in India has seen the most growth amongst the green sources of power but it too faces hurdles as good quality wind sites have all been taken.
May 7, 2011
India's Power Sector is seeing massive investments with innumerable business groups setting up thermal power plants in the country spurred by the electricity deficit of more than 15% and the GDP growth of more than 8% expected in the next decade.India's private power companies are competing with each other in setting up massive ultra mega thermal power plants of 4 GW capacity.However India's pathetic state of electricity distribution may lead to huge losses for the investors in the power sector.The reason is that the electricity distribution is controlled by the state utilities which have cumulative losses of $13 billion which is expected to double to $26 billion in another 5 years.These "discoms' don't have money to pay the private producers of power even with an electricity deficit.With India's electricity market a tangle of red tape,losses and government control the situation looks bleak for all the business groups deciding to enter the power sector.
May 3, 2011
Coal M&A is picking up at a feverish pace as the demand and price of coal shoot through the roof.Note Coal is the cheapest fossil fuel and powers most of the world's power plants despite its disadvantages.The abundance and cheapness of coal has managed to hide its deleterious effects.Indian and Chinese companies are gobbling up coal mines and companies globally as they rush to secure raw material for the growing thermal power plant capacity.The Adani Group is one of the leading Indian private power companies setting up gigawatts of new thermal power plant capacity.Mundhra Port the Adani Flagship has been buying up coal plants,ports and building power plants to vertically integrate itself in the whole coal supply chain.It recently bought the Australian Linnc Energy's Gaililee coal project for USD 2.7 billion.It has followed it up by buying Abbot Point Coal Terminal from the Queensland state of Australia for 1.8 billion Australian dollars.
May 2, 2011
Indian government seems not to have learned much from the Fukushima Nuclear Meltdown which has thrown millions of Japanese lives out of gear and caused massive disruption to the economy.The Jaitapur Nuclear Power Plant to be built by NPCIL using Areva's experimental nuclear reactors has got the federal government's environmental clearance.Note the protests against the plant had got a political color with local opposition parties getting involved.A number of villagers have already been killed by police firing and further protests are expected.Note India's activist environment minister Jairam Ramesh has proven to be selectively biased towards large industrial projects in Congress ruled states.After appearing to be hero stopping the Niyamgiri project from Vedanta,Ramesh has given the go ahead to politically favored projects.Not a surprise given the endemic corruption present in the ruling coalition which has given birth to a number of corruption scams and scandals.Like everything,even a project of this criticality has acquired a political cover with everyone sounding their party positions without worrying about the possibility of a nuclear meltdown in India.
May 1, 2011
NTPC,India's largest power generating utility with around 35 GW of electricity capacity is set to enter renewable energy in a big way as it has singed 500 MW of PPAs with state distribution companies for supplying green energy.Note India's electricity regulator CERC has mandated a 6% Renewable Purchase Obligation (RPO) in 2011 which will increase by 1% each year to 15% by 2020.A number of states have fallen behind in meeting their RPO and would need to either generate or buy Green Energy to meet the CERC targets for renewable energy.NTPC which is predominantly a thermal power utility has been planning to set up wind and solar power plants but nothing has been done till now.However after signing these PPA with the Madhya Pradesh,Orissa and Karnataka government,the renewable energy projects should get accelerated.
April 25, 2011
China has recently put increased scrutiny and control over the mining,smelting and export of important minerals like tungsten and rare earth oxides.Note mining in China often takes place illegaly without any regard to environment in quest for a quick buck.Japan which is the largest importer of rare earth oxides from China gets most of its demand met through illegal mining.However China has cracked down on this practise as it regards these minerals like tungsten,iron,rare earth,antimony and molybdenum as important for national goals.China has severely curtailed the exports of rare earth exports leading to a sharp rise in rare earth prices and stocks of rare earth companies.This has sparked concern in developed countries and blocks like EU,Japan and USA which has taken the case to the WTO.
April 15, 2011
Renewable Energy Companies have started going public in a big way in the last 5 years as the Wind Industry has gone by around 30% CAGR in the last 10 years and the Solar Industry has grown by 50% CAGR.Both these industries have seen investments of more than $70 billion each in 2010.Solar companies which did not exist in public stock markets before 2006 have seen over 100 listings in the last 5 years in different stock exchanges around the world.Wind Industry which has been around much longer has not seen a lot of listings in the last 5 years as most of the companies are already listed.However a number of Chinese companies which have seen spectacular growth driven by the 100% growth per annum in the Chinese market have seen a number of listings.Other Renewable Energy companies have not been that prolific in public IPOs,though a number of clean technology companies have listed in the NASDAQ Market like Amyris,Tesla,Zipcars,A123 Systems and have gotten a good response.However for Renewable Energy Companies the USA Stock Markets have not proven very receptive in the last couple of years after seeing a boom of Chinese Solar Company listings.So which is the best stock market and the worst stock market to list if you are a Renewable Energy CFO?
April 15, 2011
Renewable Energy Investments surpassed investments in Fossil Fuel Electricity investments in Europe and USA in 2010 as developed countries focused on alternative energy as a solution to the problem of Global Warming and higher Fossil Fuel Costs.While Wind and Solar Energy are currently the dominant forms in different types of Renewable Energy,others like Tidal and Wave Energy are also seeing a lot of investment in R&D.The major advantage of Renewable Energy is that it does not emit GHG which is the leading cause of Climate Change.While this is the biggest Need for Renewable Energy other needs are equally if not more important.Here are the most important needs of Renewable Energy
April 13, 2011
Nuclear Waste is one of the most difficult waste products to transport and store because of its dangerous radioactive effects.Given the long life of some of the transuranic elements Nuclear Waste has to be stored in a safe manner for thousands of years which is a tough given that the chances of leakage become enormous in such a long time scale.Storing of Nuclear Waste has to be performed in a extremely complicated manner which is also enormously costly.Also there are problems of NIMBY with Nuclear Waste Storage as nearby residents don't want such toxic waste stored anywhere close especially as it does not bring any economic or social benefits.Not there is no permanent storage site despite many decades of planning and billions of dollars being spent.While Japan and Europe reprocess the fuel in the hope that they will be used again that remains a dream with thousands of tons of HLW piling up.USA does not reprocess and also has more than 60,000 tons of nuclear waste waiting for a final home.Till then most of the spent nuclear fuel is being stored in spent fuel pools and dry casks making them vulnerable just like another Fukushima
April 12, 2011
Type of Renewable Energy have been increasing with development in Technology and the imperative of using Alternative Energy as Fossil Fuels deplete and increase in costs.Besides Global Warming has made the benefits of Renewable Energy seem more attractive with each passing year.Note though there are many niches Renewable Energy types,the Three Major Forms of Renewable Energy are Solar Energy,Wind Energy and Biomass Energy (Biofuels).Nuclear and Hydro Energy are not considered as Renewable Energy according to the strict definition of Renewable Energy.However Hydro and Nuclear Energy both are responsible for more than 15% of global electricity production each.The clean energy industry saw a 30% increase in investments to $243 billion in 2010 which was another record year for Renewable Energy Capacity addition.Around 18 GW of Solar Energy and 38 GW of Wind Energy were installed with Solar Energy Capacity increasing by a whopping 150% from 2009.\wind power continued to lead at $95 billion. The solar sector is experiencing significant growth, with investments growing at 53% to $79 billion (source Pew).
April 12, 2011
Renewable Energy has become a very hot topic amongst the masses and global leaders as the problems with non-renewable energy manifest themselves in various virulent forms like the BP Oil Spill,Coal Mine Deaths,Energy Insecurity etc.Renewable Energy as the name implies has the greatest benefit of being renewable that is it does not get exhausted like the Oil beneath the Earth.Fossil Fuels which are the primary non-Renewable Energy form suffers from the problem that it releases Carbon sequestered in the ground in the form of Carbon Dioxide and other Greenhouse Gases.These GHG emissions lead to Global Warming which can have catastrophic effect on mankind even endangering the very existence in the worst case scenario.However Fossil Fuel Lobbies are very strong and have tried to obfuscate the Climate Change Issue.They have been able to do that because Climate Change is highly complex and the outcome is not 100% or even 90% certain.But repeated studies have shown that human induced Carbon Emissions will lead to major changes in the weather,sea level rise and other disasters.We can see Climate Changing already with massive floods and droughts and the highest temperature recorded in the last 200 or so years.
April 12, 2011
A study of soil samples conducted by a team of experts from Kyoto University and Hiroshima University has revealed that as much as 400 times the normal levels of radiation could remain in communities beyond a 30-kilometer radius from the Fukushima No. 1 nuclear power plant.The study found cesium-137 at levels between about 590,000 and 2.19 million becquerels per cubic meter.After the Chernobyl nuclear accident in the former Soviet Union in 1986, residents who lived in areas where cesium-137 levels exceeded 555,000 becquerels were forced to move elsewhere.