subsidy
July 4, 2011
South Korea’s Hyundai Industries which is known more for its ship building and heavy engineering ,is also making a big push into the Green Energy Space.Like its South Korean peers,Hyundai is also preferring to enter this space through Solar Energy.Hyundai has already established a 600 MW Solar Cell and Solar Panel Factory making it the largest South Korean manufacturer.Hanwha Solar One is the largest producer of solar panels but it makes most of those in China through its subsidiary Solarfun.Hyundai had earlier bought solar cell equipment from Germany’s Centrotherm as far back as 2008 and had entered a long term contract with LDK Solar for buying solar wafers as raw material for its cell lines.Note Hyundai Heavy has also heavily invested in the Wind Turbine Industry.Hyundai Heavy has started producing 2.5 MW Turbines from a 500 MW Plant in Geoje Island in South Korea.Hyundai Heavy is amongst the many South Korean Chaebols making a big push into Solar Energy like LG and Hanwha.
July 3, 2011
What is a Solar Power Plant
Solar Power Plant is a Device which generates power or electricity using Solar Energy.Note normally solar power plants refers to large ground mounted solar farms rather than the residential solar rooftop projects.However it is only a matter of usage and a solar power plant can refer to a very small solar panel of 5 watts as well as a huge solar plant of 100s of megawatts consisting of hundreds of thousands of solar panels.
Types of Solar Power Plants
Note there are a number of solar energy technologies which convert the power from the sun to electricity.However the two main solar technologies in use are Solar Thermal Technology and Solar Photovoltaic Technology.Current Solar PV Technology accounts of the lion's share of solar power generated globally and is gaining more marketshare as costs of solar power decrease.
July 3, 2011
olar Panel Manufacturers are present in most parts of the world with Korea,China,Taiwan,USA,Japan and Germany dominating.Solar Panels are of mainly 2 type – crystalline and thin film.Most of the solar panels produced today are of the crystalline type and are mostly used in residential rooftops.Thin film panels are mostly used in large ground solar power plants.Thin film solar panels are of lower efficiency and are lower priced as well.However falling costs of crystalline solar panels has led to their increasing dominance.
Solarworld AG
Germany till a couple of years was the home of the biggest solar panel manufacturers in the world.This was driven mainly by the German Renewable Energy Law (EEG) which is the most successful renewable energy subsidy in the world.The German Solar Market has become the biggest in the world for the last 2-3 years and an estimated 25 GW of solar panels would have been installed in Germany.Capitalizing on a large domestic market a number of solar companies like Q-Cells,Solarworld,Solon and others became the biggest in the world.
July 3, 2011
Photovoltaic Cells have grown tremendously in the last few years spurred on by lowering costs and high demand in European countries like Germany.Photovoltaic Cell Manufacturers have also increased particuarly in low labor cost regions of Asia like China and Taiwan.In fact most of the solar panels have solar cells from companies in Asia.Solar Cell Manufacturers have incresased their capacity at a fast pace to meet the increasing demand.Currently due to oversupply of Photovoltaic Cells,the prices of solar cells have crashed with top quality solar cell prices almost 50% down from that one year ago.This is one of the best times to install solar cell panels in your roof given the rapid decline in the cost.Most of the independent solar cell suppliers are from Taiwan and some from China.European solar cell producers have mostly disappeared due to the high cost base of the European factories.
July 3, 2011
What are High Efficiency Cells High Efficiency Solar Cells are those Solar Cells whose average efficiency of converting solar energy into electricity is in general much […]
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 1, 2011
Solar Thin Film Companies are coming under siege again due to the relentless fall in the prices of crystalline silicon panels in recent months of 2011.Note large number of thin film companies went bankrupt the last time polysilicon prices fell off a cliff in the post Lehman crisis period in 2008 end.Applied Material the biggest solar equipment company killed off its SunFab Division which has a large customer list.Applied Materials saw the writing on the wall and concentrated its efforts on crystalline silicon equipment buying HCT Shaping and Baccini to become a billion dollar supplier of solar equipment.A number of weaker hands in solar thin film went out of business.However the prodigious growth in solar demand in 2010 saw large investments being made again.The biggest failure (not complete yet) seems to be the DOE and Obama darling CIGs startup Solyndra which has already used up a billion dollars with nothing much to write home about .Now Republicans are investigating whether the more than $500 million US government loan was done improperly.Abound Solar a CdTe startup has also managed a $400 million loan and I doubt whether it will manage to ever pay off the loan given that the lowest cost manufacturer of solar panels First Solar itself is under pressure from sharp cost reduction by integrated solar panel companies like Trina Solar.
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.
July 1, 2011
Australia has seen a big increase in solar panel installations due to generous subsidies given by individual states in Australia like New South Wales and others.Unlike other parts of the world where solar installations have started with large solar farms,residential rooftop installations have powered Solar Energy in Australia.The sharp growth in solar power has attracted most of the largest solar panel manufacturers in the world like Suntech, Canadian, REC, Kyocera, Sharp, Sanyo, Yingli, Suntech, Trina Solar and others.The major Solar Panel Suppliers in Australia are foreign manufacturers as Australia does not have a local content policy to promote manufacturing of solar cells or solar panels.Only a few handful of companies have manufacturing operations in the country.Almost all of the solar panels sold in Australia are imported.
June 30, 2011
Financing of Solar Energy Projects in India under JNNSM is proving to be a huge problem for the winners of Phase 1 auction under the federal subsidy scheme.Solar Energy in India has huge potential and attracted a number of companies to the first phase of the government tender under the 2020 plan to install 20 GW of solar energy.Note 620 MW of projects in the 5 MW and above category were awarded to 37 solar companies.Many of these firms had no background and had bid irrationally low to win these projects.With little experience and no established financial infrastructure it was an accident waiting to happen.MNRE offical has revealed that 18 of the companies have failed to achieve financial closure and would probably lose their license by the July 9 deadline.Note most of these bids were irrationally low and would not have made profits.Indian Banks and power financing institutions have refused to lend quite prudently.Note these companies are not putting collateral using their parent company's assets which means that they too doubt the feasibility of their projects.Only huge penalties will deter future non serious participants as at least half of the solar power capacity won't get installed in JNNSM Phase 1.It remains to be seen how this affects the future of the Indian Solar Mission.
June 30, 2011
Huge Solar Panel Projects are being planned in the USA by solar developers and utilities as solar panel prices have fallen by 20-30% in the second quarter of 2011 as solar panel manufacturers are faced with oversupply and inventory issues.Note building both coal and nuclear power plants in the US has become increasingly difficult with pollution and climate change issues coming to the fore.While natural gas is getting a boost due to cheap shale gas discoveries,solar energy is picking up pace due to the government support in the form of DOE Loan guarantees and Treasury Grant programs like 1705.Recently two very large solar panel projects have been announced or are in the process over the next 3-4 years.
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 23, 2011
GoldPoly,SunOasis,China Technology Development Group Corplto invest $10 billion in European Solar Projects using Financing from China Development Bank and Merchants Bank.Note these 3 companies have integrated facilities from processing of polysilicon into wafers to making solar panels.Its the first time that 3 Chinese companies have combined to promote such a massive project.The 3 companies are not listed in the US stock or HK stock exchange unlike other major Chinese solar companies like Trina,GCL,Suntech,LDK and others.Note China Development Bank (CDB) which is owned by the Chinese government has already extended billions of dollars in credit to Chinese solar panel companies like JA Solar,LDK and others.
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 23, 2011
Solar Industry Mergers and Acquisitions (M&A) have picked up pace in recent times with a number of companies in distress with supply exceeding demand as Italy suddenly changed its solar subsidy policy in April 2011.With high inventory levels and prices crashing only the biggest and best solar panel manufacturers are managing to thrive.Note the Solar PV Industry has not seen too much M&A unlike the Solar Thermal Industry which has always been a hot area for M&A activity as giant industrial groups like Siemens,Areva,Alstom and GE have bought startups to improve their technology offerings.With the Solar PV industry having crossed more than $50 billion mark in 2010,more and more MNC conglomerates have now starting buying solar companies at cheap valuations.Here is a list of the recent buyouts,stake buys and mergers in the Solar PV Industry that have taken place recently.
June 23, 2011
Solar Energy in India has immense potential due to the massive growing demand of energy in an already deficient country.The Indian government too has realized this and set an ambitious plan of 20 GW by 2020 under JNNSM.Despite teething problems in the first phase of JNNSM,India should manage to grow its solar power capacity by more than 10x in 2011 to 700 MW.According to IREDA which is the main government renewable energy finance $2.2 billion would be invested in 2011 to grow the capacity to 700 MW.Note despite this impressive rise,note solar power in India comprises less than 0.5% of the total installed electricity capacity in the country and the growth comes off almost a non-existent base.
June 21, 2011
India's JNNSM on the other hand has seen the first phase marked by a number of teething problems like debt financing,absurdly low bidding by noname companies,poor electricity infrastructure.The Second Phase is supposed to ally these problems but the first plans do not seem to be too great.The support for large solar farms will be increased from the current 5 MW cap to 20-25 MW cap.This will lead to only large investors,utilities and companies being left in the fray and lead to lesser competition.Also there is no support for rooftop solar which will help to broadbase the reach of solar energy.A Policy which helps distributed solar like Germany will do much more to boost solar in the country than supporting massive solar plants that will only help large companies making the most of the taxpayer subsidies.Note Delhi is the only state in India which is giing primacy to rooftop solar systems and is in the process of announcing a capital subsidy soon.The reason may be that Delhi mostly consists of urban homes and they have little option.
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
India's policymaker keep making dumb policies to promote agriculture in the country which leads to huge losses for taxpayers and leads to no gains for poor farmers.One such policy is to give a interest rate subsidy of 3% to farmers who have repaid their loans.This means that if you are getting a loan from the banks at 7.5% normally,you will now get it at 4% if you are a farmer who has repaid his loans.Note the condition "repaid his loan" is meant to sound as it he has great thing like saving someone from a burning building.Last time I though all loans were meant to be repaid.But evidently different rules apply to farmers who were in the election year in 2009 were given a loan waiver.The government effectively allowed the farmers to convert their loans to a grant.It was an indirect gifting of billions of dollars to farmers to get votes and it worked splendidly for the ruling Congress party.A winning idea is seldom abandoned even it leads to perverse economic outcomes.
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
Central Energy Regulatory Commission (CERC),India's Electricity Regulator is planning to increase the frequency of compliance of the Renewable Purchase Obligation (RPO) for states from an annual affair to a bi or quad annual affair.Note Renewable Energy Certificate (REC) Trading in India started in 2011 to facilitate the development of the Renewable Energy Industry in India.According to the RPO,a certain percentage of a state's electricity generation must come from clean energy sources.States and utilities which can't meet their renewable energy requirements can buy REC from Indian Energy Exchanges to meet their needs.Power Exchanges in India have already set the ball rolling in terms of trading in RECs.
May 31, 2011
Solar Lamps in India are one of the most successful solar products in India as they provide economical value without requiring huge subsidies.Note India’s Solar Mission […]
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 31, 2011
According to the Financial Express, a top US Thin Film Based module manufacturer is exploring the possibility of setting up a facility in Tamil Nadu with an investment of $500 million (approximately R2,255 crore) in the coming months.Note the sources have not revealed the name of the company but it is evident from the investment amount,solar technology that the company is First Solar.A a top level team from the company is expected to visit sometime early next week to initiate discussions with the state government officials.Note First Solar has been emphasizing the importance of India for its growth aiming to supply 100 MW of solar panels in 2011 itself which would make it a leader in the Indian solar industry.Other top solar panel companies like Suntech and Trina too have been investing heavily in selling their solar panels in India through partnerships with local companies.
May 31, 2011
DuPont Apollo is a wholly-owned subsidiary of DuPont started a 50 MW thin-film photovoltaic module manufacturing facility at Shenzen in 2010. DuPont Apollo is focused on the China domestic market but seems like that they are not getting too much traction in the hyper competitive Chinese market and now trying its hand in the Indian market where solar manufacturing industry is not too competitive.
Indian Solar Energy Market has seen the entry of many foreign companies eager to tap this huge opportunity.This list of foreign solar companies in India keeps growing on a daily basis with both startups like Abound and large companies like First Solar,Suntech making India as an integral part of their global growth strategy.DuPont the global chemicals giant too has entered the solar energy industry in partnership with Wipro EcoEnergy.DuPont Apollo will supply Wipro with its Thin Film Amorphous Silicon Solar Panels which will be used in the grid projects.Note a number of Joint Ventures in Indian solar industry have been recently formed.