Clean Technology
March 16, 2011
Geothermal Energy is regarded as a poor cousin to its more glamorous cousins Wind and Solar.Geothermal Energy Capacity has been installed and the growth rate is a pathetic 3-4% compared to the over 50% CAGR seen for solar energy and around 30% for Wind Energy.However Geothermal Energy possesses one attribute that the others do not.Its 24 hour generation capability is a massive plus compared to the intermittent nature of Wind and Solar Energy.However long project development time and large capital investments have deterred fast growth in geothermal energy in the world.However some countries like Iceland,Indonesia,Philippines and USA have a strong geothermal energy industry.Note Geothermal Energy has massive use as a heating source for homes and offices,however this article mainly talks from the view of Electricity Generation.
March 15, 2011
This Nuclear Energy Disaster in the Age of Twitter and Facebook will vehemently increase the opposition to the setting up of big Nuclear Plants.The Radiation Leak and subsequent health hazards will make it impossible for a Nuclear Reactor to be located except in very remote areas like the Sahara Desert.NIMBY protests are going to almost kill the Nuclear Industry in the next decade at least in democracies.The Nuclear Industry will take a long time in establishing its trust amongst the citizens.Without Nuclear Energy,the other major forms of Renewable Energy ,Solar and Wind Energy have to gain.Already Switzerland and Germany are deferring the planning and extension of Nuclear Energy.Other countries are putting safety reviews.Note the costs of environment regulation and nuclear waste disposal are already quite high.This will make new nuclear plants uneconomical as they are already facing huge cost overruns . Ask Areva in Finland and Constellation in the US.
March 14, 2011
Biomass Energy accounted for most of Human Energy Consumption before the 20th century before fossil fuels took over.Biomass Energy still accounts for 1/3rd of Energy requirements in a lot of countries and is the primary energy source for heating and cooking in rural communities.Biomass Electricity accounts for around 1% of the world's electricity capacity of around 5000 GW.With advancement in Biomass Technology a number of Large Scale Biomass Energy Plants are being built in Europe.Even in developing countries like India,the government is strongly supportive of biomass energy and is giving various subsidies to support this alternative energy.Biomass Energy can play an essential role in off grid markets where there is a decent availability of feedstock.Each year millions of tons of crop residue and animal waste is converted into carbon emissions without being used up.Biomass Energy can convert this feedstock into useful electricity without adding carbon to the atmosphere.Waste to Energy is the most unexploited forms of energy and there exists enormous potential here also.Here is a list of the Biomass Energy and Wood Pellet Companies in the World.Note most of the companies are small in nature compared to the wind and solar companies.Most of the biomass electricity companies still have their biomass plants in the drawing or construction stage.Wood Pellet Companies are mostly private companies and not traded on the Stock Exchange.
March 14, 2011
India's Biomass Electricity Capacity at 2 GW (including cogeneration) is around 4% of the world's total Biomass Power Capacity of around 50 GW.US is the leader in Biomass Capacity with around 20% of the world's biomass potential.India has set ambitious plans for expanding the biomass power capacity in the next 10 years.India's Ministry of Renewable Energy has set a very high target of multiplying the power capacity by 10 times in the next 10 years.India's Total Biomass Potential with existing Technology is around 25 GW of which around 8% has been realized till date.India produce s 500 million tonnes of biomass per year, 120-150 million tonnes is surplus
March 13, 2011
Wind Power has come under attack in the USA focused around the Cape Wind Project off the eastern shore.The project which was conceived over 10 years ago has not managed to still build the Wind Farm due to countless number of lawsuits filed for myriad reasons most of which are quite groundless.However some of the reasons have some solid facts behind the opposition to Wind Energy.Note Wind Energy unlike other forms of fossil fuel energy should have much less opposition however it is not so.Unlike Coal,Gas and Oil Energy it does not lead to increase in Greenhouse Gas Emissions and contribute to pollution.It does not lead to deaths of hundreds of miners each year nor has the danger of a catastrophic nuclear meltdown leading to death and disability of thousands.It also does not have the drawback of massive ocean pollution leading to an ecological disaster.However there are still protests against building of Wind Power Capacity and this article examines them in details.At the outset let me mention that advantages of Wind Power far outweighs the Disadvantages.
March 13, 2011
The Pros of Wind Energy far outweighs the Cons of Wind Power leading to massive amounts of wind power capacity being installed in almost every part of the world.Wind Power already generates majority of the electricity in countries like Denmark and almost 1/5th in countries with proactive renewable energy policies such as Spain,Germany and Portugal.Wind Power has great potential in USA,China and India which are driving the growth of Wind Power in the world.South America particularly Brazil are also showing strong interests in building up wind farms in the country.The recent increase in the price of oil and the dangers of Nuclear Energy further emphasize the importance of Wind Power Energy.
March 10, 2011
India had set up around 500 MW of Biomass Capacity by 2007 and has increased it by almost 150 MW since then to reach around 1 GW capacity today.Most of Indias' Biomass Electricity is being generated in Andhra Pradesh,Maharashtra,Tamil Nadu,Karnataka and Rajasthan.A lot of new capacity is being built in Punjab and Chattisgarh as well.India with a total biomass capacity of around 1 GW is planning to increase it by 10 times to 10 GW by 2020 by setting up a number of 1-2 MW biomass plants around the country.Around 400-600 acres of land are required to support 1 Mw of Biomass Capacity and 200-300 acres using energy intensive crops.This is much more than what is required for even thin film solar energy which is around 10 acres.The large land requirements make Biomass Energy Scalding a difficult proposition,however it has a great use in niche applications where there is a large amount of crop and animal residue/waste
Biomass Energy is clearly seeing a massive investment of private capital by a number of Green Energy companies.A number of these companies are backed by Private Equity Players.Almost all Sugar Companies in the country co-generate biomass power at their sugar plants.The size of the segment is quite large and has not been listed here.In India 3 types of companies are focused on biomass electricity - Sugar Companies,Rice Companies and Green Energy Utilities.The first 2 categories will be successful as their cost of feedstock is essentially zero while the the success of the third kind will depend on the management and execution.
March 10, 2011
CPV companies have recently started winning some utility scale power plant projects in recent times with Amonix wining a deal to supply 30 MW for a project being built for Xcel Energy.Now speciality wafer French company Soitec subsidiary Concentrix has won a massive 150 MW solar plant order from Tenaska Solar Ventures to produce 150 MW which will be supplied to Californian utility San Diego Gas & Electric under a PPA signed earlier.Note California has a RPS to generate 33% of its electricity from Renewable Energy Sources.Soitec will also build a new factory in the San Diego region to manufacture its proprietary CPV modules with 200 MW capacity.Note this will be the largest CPV plant in the world when built by 2015 much bigger than any CPV plant on the drawing board right now.This also pushes Soitec ahead of the other US CPV companies like Amonix,Solfocus
March 10, 2011
Interest in India's Renewable Sector is growing by the day with massive potential in Wind,Solar,Biomass and Nuclear Energy.Renewable Energy in India is going to more than quadruple in capacity over the next decade providing amply growth and profit opportunities.Foreign and domestic makers are already making a beeline to the Indian market to get a first mover advantage.Here are some of the main news in the Green Industry Space in India
March 9, 2011
The Costs of Biomass Energy Production fall in a very wide range because of the wide variety of feedstock it uses.The costs of biomass energy also depend on the distance of the feedstock from the biomass power plant.Great distances lead to the biomass plant being unfeasible.Also some forms of Biomass are more expensive than others.Urban Waste and Waste Wood are some of the cheapest forms of biomass available.Similarly,Biomass plants also can be built over a wide range of investments.Co-generation plants or CHP plants are the cheapest biomass plants while standalone biomass plants which can use a variety of feedstock are quite expensive in nature.Note unlike solar and wind power,the investments in power plants based on biomass are not fixed.Some of the technology like boilers and turbines for generating biomass energy are common industrial equipment.The costs of a biomass energy can also depend greatly on how the feedstock is procured,managed and used up by a biomass plant.A good manager of a biomass plant is very important to lower running costs of a biomass plant.
March 9, 2011
Biomass Power Plants are increasing rapidly as the costs of fossil fuels go up and the need for renewable energy is increasing.Biomass Power is attractive because of its clean character and supplies a large portion of the energy needs in rural communities.With advancements in gasifier technology and energy conversion,biomass power plants have become quite popular.Biomass Power Plants are increasing in scale from around 20-50 MW to more than 100 MW as the technology has advanced quite a bit.The only problem for these large plants is securing feedstock for these power plants and storing them.Biomass Energy has a number of advantages over conventional forms of energy and depending on the feedstock cost can be generated at prices on par with fossil fuels.Biomass Energy also leads to higher energy security as biomass is almost always secured locally.
March 9, 2011
Biomass Energy is highly under-appreciated as a renewable source of energy despite being the most important source of energy during most of human history.Till the 19th century biomass energy used to account for 70% of the world's energy consumption and still accounts for around 10% of the world consumption.In developing countries the share of biomass energy is still quite high at 30% and it is the major source for energy for rural and backward communities.Biomass primarily consists of
March 7, 2011
CLP India which is a subsidiary of Hong Kong-listed Power Company CLP is one of the largest private power generation companies in India The company is the biggest wind farm operator in India with around 450 MW of capacity which it plans to raise by another 50% to around 640 MW.Two New Wind Farms will be built in Jaisalmer in Rajasthan and Andhra Pradhesh.The company will use i WTG supplier Enercon with whom it has long relationship.Note India has seen a sharp jump in Wind Energy growth in 2010 due to state and federal subsidies.With Wind Power forming almost 70% of India's current Renewable Energy Capacity,around 1.5-2 GW of new Wind Capacity will be built each year.CLP plans to add around 200-300 MW every year to keep up its pole position.
March 6, 2011
India has around 300,000 Telecom Towers around the country , a large portion of which is not connected to the electricity grid.Another large portion does not have access to reliable electricity implying they have to install backup power systems in order to run without interruptions.Diesel Generators have been the choice of telecom operators despite their high carbon imprint.This is because of the ease of buying and installing diesel generators as well as the lower fuel costs as the government in India heavily subsidizes diesel.Note India's Fossil Fuel Subsidies have led to hundreds of distortions in the economy.Corruption,Pilfering,Adulteration is carried out on a large scale due to government subsidies.In fact a senior government official was burnt alive by the Kerosene Mafia a direct outcome of this subsidy policy.But that is a separate issue.
March 6, 2011
Blackrock the Giant Asset Manger with $3.6 Trillions (yet it is Trillions) has decided to join hands with Irish Company NTR to form a new JV.The purpose of this JV will be to invest directly into cleantech assets and infrastructure.The JV will be a part of the Alternative Energy division of Blackrock which already has $110 billion in cleantech funds.Note NTR is an Irish firm with interest in waste management,ethanol,biomass energy and solar thermal energy.It recently ran into major problems as its subsidiary Tessera Energy faced major delays in implementing 2 Solar Thermal Plants in USA (Imperial Valley and Calico) despite getting US Govt approvals.Tessera problems had a dire effect on the parent company financials resulting in the selling of these 2 solar thermal projects.
March 6, 2011
India has been trying to build tidal power plants in order to take advantage of around 8 GW of potential tidal wave power capacity potential in India.Note Gujarat has been at the forefront of these efforts with most of the tidal power capacity Gulf of Cambay and Gulf of Kutch.While there have been reports of the go-ahead for these tidal energy plants,nothing concrete has come out of it .Note Tidal Energy is in a very immature stage compared to other forms of Renewable Energy like Solar,Wind and Biomass Energy.Tidal Energy like Wave Energy is still in the demo stage even in developed countries of the West where technology innovation is much higher.
March 6, 2011
A Clean Technology REIT is about to be launched which is going to invest in real estate which generates clean energy.The strategy is simple to invest in properties which have green energy power plants.Note Clean Tech Investing has yielded terrible results for public investors in the last couple of years.The failure of Copenhagen,Cancun Climate Meets and the Lehman crisis has led to a bloodbath for Green Investors.Don't know how successful this strategy will be for I don't know how much alpha a Clean Tech REIT can generate over a normal REIT.However the performance of DLR has been quite awesome over the last few years.
March 6, 2011
There exists a reasonable number of ETFs in the US Stock Market which are dedicated to Clean Technology.However the performance of these ETFs has been quite […]
March 5, 2011
I have been consistently writing that Solar PV has leapfrogged far ahead of Solar Thermal Technology in the last couple of years.The entry of the low cost Chinese with huge scale and the fall in polysilicon costs have suddenly made the future survival of Solar Thermal Technology suspect.The Solar Thermal Advantages of energy storage is also overrated because it is cheaper to add energy storage to Solar PV as the following article shows.Note Solar PV has many other advantages of Solar Thermal anyway.The Rapidly Declining Costs of Solar PV in fact pose a massive threat to all other forms of Solar Technology including Thin Film which has recently seen a number of players gone bankrupt.The recent conversion of Solar Thermal Plants by Tessera,the losses being made by Solar Millenium due to delays are further evidence of the decline and possible obsolescence of Solar Thermal Technology.
March 3, 2011
Solar Energy is the only form of Energy whose costs are continuously declining compared to other forms of Energy.This is one of the biggest advantages of Solar Power over other renewable and non-renewable forms of energy.Solar Energy costs have declined by over 50% in the last 2-3 years even as Coal,Oil,Gas and other Energy costs have gone up.While Wind Energy costs have declined in the last year the overall trend is increasing as the costs of copper and steel go up.This is one of the main reasons why solar energy demand has gone up by 150% in 2010.With solar costs going down by another 10% each year over the next few years,expect Solar Energy to grow at a further fast rate in the future as well after growing at 50% CAGR over the last decade.Here are some of the advantages of Solar Energy over other non-renewable energy forms
February 28, 2011
Renewable Energy Certificate (REC) are one of the most important tools for promoting alternative energy in India.The Central Regulatory Commission (CERC) alongwith energy exchanges has been working on making trading in RECs happen since the last one year.Trading in RECs started last week with small amounts of REC trading at the Delhi based Indian Energy Exchange.Note most of the volumes are expected to be traded in the July-Sept Wind Season and October Bagasse planting season.While only small amounts were traded as physical trade is only allowed for 2 hours on last Wednesday of every month,volumes trading should start in 2012.The IEX is targeting around $8 billion in REC trade by 2017 as Renewable Energy in India grows at a faster rate.