Environment
July 5, 2011
Nuclear Power Plants around the globe are being closed at a furious rate particularly in Europe.The Fukushima Disaster has caused a nuclear winter in the nuclear power plant industry.Even Nuclear Power Plant Equipment Leaders like Toshiba are changing their strategy to concentrate on Renewable Energy.Even new Nuclear Power Plants being built in India and China are facing massive opposition.New Nuclear Power Plants being built at Jaitapur and Tamil Nadu have met massive organized protests by local citizens throwing the future of nuclear power plants in jeopary.The Communist Government in China too is going slow on the biggest rollout of nuclear power plants in the world.High Cost Escalation and long project delays had already made building new Nuclear Power Plants in the Developed World almost impossible.Japan and Germany which are two of the largest nuclear countries have decided to shut down all nuclear power plants.Switzerland and Belgium too have decided to kill the nuclear power industry in their countries.In this light it becomes very important to examine the pros and cons of nuclear power plants.A cost benefit analysis of nuclear energy is crucial as new plants cost billions of dollars and can cause massive costs if things go wrong as was the case with Chernobyl and Three Mile Island Disasters in the 1980s.
July 5, 2011
Solar energy usage is an excellent, eco-friendly and cost-effective way to "Go Green". It is a very effective measure to save energy & money. We use the solar energy every day in many different ways.Solar Energy is indirectly responsible for other forms of Energy that we use as well like Coal,Oil,Gas,Hydro Energy etc.The biggest use of Solar Energy is in Agriculture where Sun Light is used by plants to grow and provide food for us.Solar Energy despite many years of development is not used in the generation of Electricity due to its higher costs.However that is going to change as 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 forms just 0.1% of the the total energy supply of the planet currently and analysts and decision makers don’t think that Solar Energy can form a big chunk in the future as well.However I differ strongly in that aspect.The main reason for my very bullish opinion on Solar Energy is based on the simple fact that Solar Energy is the only form of Energy whose costs are declining rapidly on a secular basis.In a world facing the prospects of “peak commodity”,solar energy remains vastly abundant and it remains upto human technology to capture it at the lowest costs
July 5, 2011
PWND is a good Wind ETF with strong weighting on China and Wind Utilities.Note the center of Wind Energy Manufacturing and Development has shifted towards China from the Western world with almost 50% of the world's wind power installations happening in China in 2010.8 out of the top 15 Wind Turbine Manufacturers are now from China which makes it very important that Top Wind Energy Investments have a substantial weighting on Chinese Wind stocks.PWND has a good combination of Wind Utilties and Wind Turbine Stocks from China which gives exposure to the biggest wind power market in the world.It has also got a decent investment in top Wind Utilities in Europe which still have the biggest wind farm portfolios in the world.With 30 stocks,it has not over diversified as well with good concentrated holdings in top wind power stocks.While 0.75% expense ratio is slightly high it is not a deal killer.The 2010 and 2011 performance of Wind Energy has been dismal to say the least with the Copenhagen Global Climate Change Meeting going to the dogs in 2009 end.However there remains little alternative to Wind Energy as Coal,Gas and Oil get increasingly scarce,costly and are continuing to pollute the environment.With only $19 million left as the corpus PWND may not continue long,however if it does it might be the best time to invest in a good WInd Energy ETF when the sector is so unloved.PWND is the best Wind Energy ETF and probably the best wind stock investment out there
July 5, 2011
In 2007 the World Crude Steel output reached 1343 million metric tons and showed a growth of 7.5% over the previous year.China remained the world’s largest Crude Steel producer in 2007 also (489 million metric tons) followed by Japan (112. million metric tons) and USA (97 million metric tons). India occupied the 5 th position (53million metric tons) (Source: IISI). According to an estimate by Credit Suisse, India’s steel consumption will continue to grow at nearly 16% rate annually, till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The scope for raising the total consumption of steel is huge, given that per capita steel consumption is only 40 kg – compared to 150 kg across the world and 250 kg in China.
July 5, 2011
A solar cooker uses solar energy to heat food or drink to cook it . The vast majority of the solar cookers presently in use are relatively cheap devices though expensive devices are more prevalent in developed countries. Solar Cookers use no fuel and require little maintainance, they can help reduce fuel costs for the poor which are mainly depended on firewood for cooking.This will reduce pollution and lead to saving of the forests.
July 4, 2011
Japan has decided to from 5 consortia of three to nine companies to bid for large solar projects in Asia and Africa.The Japanese government will support these consortia with subsidies and diplomacy to take on the Chinese solar companies.Note Chinese companies have soundly beaten the Japanese in solar company rankings despite the early mover advantage.Japanese zaibatsus are falling behind the Chinese in the global solar marketshare as low costs,cheap capital and huge subsidies have bankrupted European and American solar companies.Solar Energy in Japan has a long future dating back to 1994 when the government introduced capital subsidies to boost solar energy installations on rooftops.Till 2004,Japan was the largest solar market in the world after which it was overtaken by Germany.After 2004,the growth in the solar industry tapered off as the government reduced the subsidies for solar panels to almost zero.The huge domestic market gave rise to Japanese companies like Sharp,Mitsubishi,Kyocera,Panasonic-Sanyo become top solar panel producers in the world.However the low cost Chinese solar module producers have pushed back most of the Japanese companies
July 4, 2011
.The cost of the solar panel can also vary a lot depending on the retailer,size of the solar panel,technology and the brand.This makes buying solar panels a confusing problem though most residential and commercial buyers are not involved leaving the decision to the solar installer/EPC company.The advent of Chinese solar panels has made the Western and European solar panel companies lost marketshare rapidly.In fact most of the European companies are shutting factories to open plant in Asia where the costs are much lower.Japanese solar companies however continue to keep their manufacturing in developed countries as they get a premium for their solar panels which are considered of superior quality.
Kyocera is one of the oldest solar panel manufacturers and is second only to Sharp amongst the Japanese companies.It also manufactures industrial ceramics, telecommunications equipment, office document imaging equipment, electronic components, semiconductor packages, cutting tools, and components for medical and dental implant systems.Kyocera Solar Corp. in Japan was founded in 1996, and Kyocera Solar, Inc. in the U.S. in 1999.The company has production bases in Japan, Mexico, Europe and China and is planning a factory in California as well.The company plans to reach 1000 MW of production by 2013.
July 4, 2011
Sharp,the Japanese Zaibatsu known more for its Electronics Products is also the world’s No 1 Company in terms Solar Module Revenues.Sharp has been the solar world leader since the past 4-5 years despite stiff competition recently from upcoming Chinese Crystalline Solar (c-Si) players and Thin Film Leader First SolarSharp’s c-Si division is not cost competitive with the Chinese and Taiwanese companies as its cost structure is almost 30-40% higher than the cheapest Chinese producers.Though the quality of Sharp’s crystalline silicon modules is considered much better,the cost difference has become too big in a rapidly commoditizing industry.While companies like Masdar are abandoning their Thin Film plans,Sharp has started shipping a-Si modules from its 1 GW capacity plant in Sakai.With its established distribution strengths and technological abilities in LCD Technology,Sharp is one company that can survive the c-Si onslaught.
July 4, 2011
India has become the third country in the world to start a National Green Tribunal (NGT) which is a judicial body exclusively meant to judge environmental cases.Note Environment has become the one of the most important issues in the country affecting the broader society.Alongwith Land Acquisition,environment has become the most frequent conflict flashpoint.There have been numerous case where large industries have been confronted by local people fighting for the environement.Recent cases like the Vedanta Bauxite smelter in Orissa,Thermal Power Plants in Andhra Pradesh,the Jaitapur Nuclear Power Plant in Maharashtra have seen huge controversy and protests.Note Vedanta Resources has found itself in the centre of controversy over mining bauxite in Niyamgiri Hills which are held sacred by the Dongria Kondh tribal group.With powerful political and bureaucratic patrons,Vedanta has managed to ride roughshod over Tribal Rights.
Having a National Green Tribunal (NGT) has become essential for the country so that development can proceed with peace between various stakeholders .Note normal judges and courts don't have the expertise to understand the massive complexities and intricacies involved in billion dollar industrial projects and their impact on the environment.The NGT will have each judge having an environmental expert to guide him/her on the ecological issues so that they can come to an informed judgment.
July 4, 2011
Green Banking in India has started increasing at a rapid pace as concerns over Global Warming increase.Most of India's Banks are pushing for Clean Technology in their separate ways.Though there is lack of regulation on funding of environment friendly projects,Banks are pushing ahead on their own anyway.India's Financial Sector has seen the writing on the wall as the largest bank SBI is using Wind Energy for captive consumption to reduce its carbon footprint.The Bank is also reducing the interest rates for Green Projects beside helping in carbon consulting of customers.SBI is also implementing thousands of Green Kiosks to reduce the need for paper.ICICI Bank is helping funding research in clean technology using TFD while Canara Bank has funded almost 50,000 units of Solar Lighting .
July 4, 2011
Fly Ash Pollution of nearby water bodies had forced the Orissa State Pollution Control Board (OSPCB) to issue a notice to the massive 3000 MW NTPC Talcher Thermal Power Plant.While the notice asked for immediate shutdown of 4 untis of 500 MW,NTPC has only closed down 1 unit citing that closing more units will lead to massive power disruptions in nearby states.The action comes following NTPC bad fly ash managment system which has led to two past incidences of water pollution.There was a danger that the massive amounts of fly ash being generated would lead to breakdown of the storage dykes and lead to more pollution.
July 4, 2011
Indian Electricity Companies are crying for a bailout from the government after coal prices surged last year amidst shortages of coal.Note before the Lehman crisis,Indian private […]
July 3, 2011
Solar Products in India are set to grow at a tremendous rate in the future driven by the declining costs of solar power and the increasing price of fossil fuel energy products.Already we are seeing massive power cuts across the country due to shortage of coal.Beside this,the prices of electricity has increased tremendously as well and is approaching seriously high levels due the increasing price of coal and gas.This has made it inevitable that people will turn towards solar products which are not only becoming cheaper but are also greener.Solar Products comes in a wide variety and range from almost all electrical home appliances.You can solar air conditioners,solar fans,solar toys etc.The main uses of solar products however are those in generating electric power .These are known as solar panels and poised to become ubiquitous in the days to come.The day is not far off when almost every house in India will have solar panels on their roofs to generate cheap electric power.Beside this solar lanterns are already replacing expensive and polluting kerosene lamps in poor households.Solar Lighting is also increasing particularly in those areas where the electricity power grid cannot reach.Solar Heaters have become extremely popular in southern India as solar water heaters are much cheaper than normal electricity powered water heaters.Though Solar Cookers have not caught on in a big way,there are also very cost effective and clean.Below is listed out the main solar products sold in India along-with their suppliers
July 3, 2011
Natural Gas in USA is seeing massive investments and interest due to very large shale gas discoveries enabled by improvements in Gas Drilling and Extraction Technology.Billions of Dollars have been invested by domestic and international oil and gas companies.Plans are being made to Export Natural Gas from America as the price of Natural Gas in USA has now become considerably lower than other parts of the world.While prices of other Fossil Fuels like Oil and Coal are rising at steep rate,Natural Gas Prices have fallen even below the 2008 crisis levels and are now at around $3.5/mmbtu.With production increasing Natural Gas is increasingly looking to garner marketshare gains in the energy sector in the US.Countries around the world like India and China are also looking to tap shale gas deposits as Energy Scarcity increases around the globe.
July 3, 2011
Solar Cells are the basic building blocks of solar panels which are used to generate electricity from the sun.Note Solar Cells are made from Solar Wafers which are composed of Polysilicon the same material which is used to make your Electronic Products like iPods.While most people will never encounter Solar Cells since they buy and see Solar Panels,some enthusiasts want to make their own DIY Solar Panels.While in my opinion DIY Solar Panels are a Scam for people who are trying to save money ,its nonetheless a good thing for students and adopters.Its gives you an idea about how solar energy is converted into electricity.Note making solar cells is almost impossible for the layman so building your own solar panels requires you to buy solar cells.Nowadays solar panel prices have crashed making it easier to buy cheap solar cells on the market.
July 2, 2011
Vestas has been getting bigger orders and has been streamlining operations,however its stock price has continued to go down as investors see bleak future prospects wit hthe entry of Korean shipbuilders into the industry.Other heavyweights like Gamesa and Suzlon too have faced massive losses as margins have evaporated in the face of declining topline and prices.But now Vestas has got a lifeline from the renewable energy subsidiary of the French giant utility EDF.The order from is for 2000 MW of Wind Turbines over the next few years.While pricing was not disclosed,it would be certainly be at a discount to the normally premium prices charged by Vestas.This given order visibility to Vestas and provides price safety for EDF.The next frontier for Wind Energy Companies is going to be Offshore Wind and Siemens has stolen a march.Vestas is not going down without a fight recently introducing a 7 MW wind turbine for this segment
July 2, 2011
Indian Businessmen and Politicians have been looting the citizens and the treasury of billions of dollars through numerous corruption scams and scandals.While the focus has been on the big corruption scandals at the centre being perpetrated by ruling party politicians,opposition party has not been far behind.The Nira Radia Tapes revealed the extent to which the Indian politicians have sold the state to big business.Major ministers are appointed by the major industrial conglomerates leading to billions of dollars in embezzlement.There are numerous instances like the Commonwealth Games Scam,Adarsh Scam,the 2G Telecom Scam etc.Many of the politicians are now big businessmen themselves owning companies legally and illegally.According to Nira Radi,India's agricultural minister is the benami owner of one of the largest realty companies DB Realty whose CEO is cooling his heels in jail for the 2G Scam.The concerned minister is also involved in the Lavasa City Scam in which a whole city was built in partnership with HCC flouting all environmental norms and regulations.
July 1, 2011
Cheap Financing by massive state owned Chinese Banks like Chiina Development Bank (CDB),China Construction Bank etc is being used as a strategic weapon to push Chinese renewable energy exports.Note cheap financing has always been used by big nations like Japan and USA to push exports by their domestic companies.United States EXIM Bank has been financing solar projects in India at very cheap interest rates to help First Solar sells its Solar Panels.Similarly China too has started using the huge balance sheet of its state owned banks to push its large green companies.Note CDB has extended almost $35 billion in credit lines to big Chinese solar companies like Suntech,Trina,Yingli,LDK and others.These credit lines can be used by renewable energy companies to finance the projects of their customers.Note Chinese Banks had bankrolled massive power equipment purchases in India being made by Dongfang and Shanghar Electric Groups.
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
NGO Krishi Bikash Shilpa Kendra (KBSK) members have been involved in the past in job heist schemes where they have fleeced money from unsuspecting villages using jobs as incentives.5 members of the organization had been arrested in West Bengal .The organization had also used the names of central officials and the national emblem to embezzle money from poor villages.It does not have an inspiring track record with a former secretary in jail as well.There is little details about how this NGO will go about this program or how it would get funds to do it as well.
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
Orb Energy a non-profit supplier of off grid solar systems in Southern India has got a million dollars in additional funding from Acumen Fund.Orb Energy supplies solar systems to both residential and commercial customers in 4 states in India Kerala,Maharashtra,Tamil Nadu and Karnataka.It is headquartered in Bangalore and received initial funding from Zouk Ventures.Acumen Fund invests in socially relevant enterprises and has also invested in D.Light which is one of the major producers of LED Solar Lanterns in India.Note Orb Energy in its websites says that it sells around 1000 systems a month and plans to double the size of its operations by increasing the number of branches,employees.Solar System is a massive opportunity as Solar Power in India is set to grow exponentially in the coming years.Note Orb Energy is a system installer and does not manufacture solar panels in India.
June 28, 2011
European Carbon Trading Market goes into a Huge Slump on Greek concerns,post 2012 Kyoto uncertainity
The European Carbon Trading Market which is the biggest cap and trade market in the world has gone into a monster slump with carbon credit prices having fallen to around 10 euros which is the lowest since March 2009 when almost every global asset had fallen to multi year lows.The trigger for the correction in prices is the future of the EUA scheme in which major carbon emitters in Europe are restricted to quotas and have to buy carbon credits if they exceed their limits.A huge amounts of United Nations CERs are sold into this market as they are allowed to to so.This has led to the mushrooming of a huge growth of carbon consultancies in India and China which help projects in obtaining these lucrative CERs.Note this has recently become highly controversial with a number of frauds happening in trading of these carbon credits.Top investment banks have been convicted of fraud and big sellers of CERs like the HFC producing companies have made ludicrous windfalls of hundreds of millions of Euros.Some of these companies have now started focusing in winning these CERs which are much more profitable than their core operations.
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 23, 2011
China installed almost 50% of the world's wind power energy capacity in 2010 as its market exploded from almost nothing to around 18 GW.China's massive energy needs and its growing emissions and pollution problems have led to strong tailwinds for the wind industry.This has also led to the growth of a massive domestic industry which has led to 8 Chinese Wind Turbine Producers among the top 15 global WTG suppliers.Now China is looking to make major inroads into offshore wind energy which is dominated by Europe.China has the only offshore wind farm in Asia off Shanghai and is looking to rapidly ramp up as its energy needs keep growing.With more than 70% of China's electricity coming from dirty coal and the country already consuming 3 billion tons of coal a year,energy sources have to be diversified urgently.
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
Wind Power in India has shown sharp growth in 2010 and looks to have a bright future with a number of wind farm developers investing aggressively to expand capacity.Wind Turbine Companies have also been putting up factories in India to catch a slice of the world's fifth largest wind energy market.Even Chinese companies like Dongfang and Shanghai Electric have managed to win contracts from power companies like KSK Energy.Greenko one of the first Green Utilities in India is raising funds to put even more wind turbines in India while Caparo has the biggest expansion plans in place.CLP which is the largest wind energy capacity owner in India too is plowing ahead with plans to add to the wind capacity.The most surprising entry is by Malaysian casino developer Genting which has raised debt from HSBC to put up a 92 MW Wind Farm in India.
June 1, 2011
Top European Wind Companies Vestas,Gamesa and Enercon have gained marketshare in 2010 in the Indian Wind Power Market.Note Indian Wind Energy Companies have been competing with each other as the Indian Wind Power Market starts slowing down.India installed more than 2 GW in Wind Capacity and is the world's fifth largest market.Suzlon the biggest Indian Wind Turbine Company has seen its marketshare go below 50% for the first time to 41% as aggressive initiatives by foreign wind manufacturers pay off.Note GE,Siemens and others have been setting up blade and turbine factories in India to lower costs and improve their position.Gamesa has been the biggest winner by gaining a 10 percent marketshare taking the No.3 position from the world's largest wind turbine company Vestas.Enercon maintaines its 2nd position with 500 MW of installations despite severe legal problems between the domestic unit and the German parent.
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.