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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 1
REGULARS
From the Editor............................................................. 4
News/analysis............................................................... 8
A roundup of news from around the world
Company Results ..................................................... 54
Diary ................................................................................ 59
Advertisers Index..................................................... 60
THE LAST WORD
Moving solar forward ................................. 57
While the solar PV industry has made tremendous strides in the
Canadian market in the past year, there is still signifcant work to
be done and each province faces different challenges. Ontarios
renewables programme proved that feed-in tariffs are a very
effective means of creating market demand. Now the rest of the
country needs to follow suit, and a national solar energy policy
must be developed.
By Jared Donald
THE BIG QUESTION
Whats ahead for renewables in 2012? ...... 16
For our frst Big Question feature of 2012, we asked readers to
give us their hopes and fears, opinions and predictions for the year
ahead, and to share their thoughts on what the industry might look
like 12 months from now given the outcomes of the Durban
negotiations, the on-going shakeouts in major renewable energy
sectors and the challenging global economic climate.
FEATURES
PV market forecast: value chain blues ...... 22
At the turn of the year, photovoltaics manufacturers are faced with
diffcult choices: continue selling at prices that dont allow for
positive margins, or shutter production and wait for the current
situation to settle down. With tension between the demand and
supply sides of the PV market (signifcant inventory on the supply
side, and expectations on the demand side for continued low
pricing), the correction is likely to be long and painful.
By Paula Mints
A big future for small wind ......................... 28
The small (less than 100 kW) wind turbine market has more than
doubled over the past fve years, spurred by increasing
incentives and by growing end user awareness. According to
GlobalDatas small wind turbine market report the sector has a
huge potential for further growth, if the right incentives are
put in place.
By Raghunandan Kothamasu
CONTENTS
82 16
JANUARYFEBRUARY 2012 VOLUME 15 NUMBER 1
JANUARYFEBRUARY 2012 VOLUME 15 NUMBER 1
WHERE NEXT FOR ITALY?
Newopportunities and challenges in a
changing renewables market
HIGH-TECH TRANSPORT
Moving wind turbines offshore safely,
swiftly and cheaply
Survive the slowdown
SOLAR
STRATEGY
44
49
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2 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
CONTENTS
22 34
38
What will happen to Italys FiTs?................. 34
European eyes are on the new Italian government to see what will
happen to the nations renewable energy incentives under a
technocratic regime. The renewables market saw remarkable
growth under the Berlusconi government, but are the current
incentive mechanisms sustainable? Our analysis of a new KPMG
report paints a complete picture of Italys renewable energy
landscape for potential investors.
By Rachana Raizada
Converting from coal to bioenergy ............ 38
British utility RWE npowers 1100 MW coal fred Tilbury power
plant near London is being converted to a 750 MW biomass plant
after closing in 2011. When fully operational, the 750 MW Tilbury
plant will be the worlds largest biomass plant. We profle the
project, examining the technical challenges of converting a
41-year-old coal plant into a cutting-edge renewable energy
power plant. Fuel supply chain issues will be critical in determining
whether more coal plants can convert to biomass.
By Tim Probert
Solar process heat for Europe................... 44
There is enormous potential for using solar thermal systems
in industry: about 30% of the total industrial heat demand is at
temperature levels below 100C, which can be provided with
commercially available solar thermal collectors. But the market in
Europe and globally is very much in its infancy; only a few hundred
installations exist. The SO-PRO project aims to tackle these
barriers and to trigger the startup of markets for solar process heat
in six European regions.
By Christiane Egger and Christine hlinger
High-tech offshore transport .................... 49
The pressure to lower the overall cost of wind power means
that where turbines are built and how they move between
factory, base port and feld are more critical than ever.
Manufacturers, developers and the rest of the offshore wind
supply chain are working fat out to use the latest logistics
technology in transporting turbines to Europes massive offshore
wind resource safely, swiftly and at the lowest possible cost. We
talk to the key players to fnd out what theyre doing.
By James Lawson
28
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________________
4 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
Group Publisher Ralph Boon
Chief Editor David Appleyard
Associate Editor Tildy Bayar
Consulting Editor Jackie Jones
Production Editor Piers Evans
Design/Production Shyam Gosai
Production Manager Kimberlee Smith
Production Controller Rebecca Crews
Sales Managers Peter Andersen, Natasha Cole,
Dan Harper, Kate Hart, Alasdair Evans, Sandra
Spencer
Digital Sales Manager Leo Wolfert
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A new KPMG report suggests that energy and power projects are set to offer the
best investment opportunities for the construction sector over the coming year, with
renewable energy inevitably playing a major part.
The companys Global Construction Survey fnds that the industry expects growth
this year, yet economic uncertainty and government defcit or debt in some regions
are still major concerns. Furthermore, a perceived lack of policies and leadership are
seen as the biggest barriers to public-private partnership investment in infrastructure.
Richard Threlfall, UK head of KPMGs infrastructure, building and construction
practice, explains: Amidst a global energy crunch signifcant investments are
needed in energy infrastructure to provide energy security at current levels and to
allow for a low-carbon transition of our energy systems.
Threlfall adds: With austerity policies in many countries constraining the scope for
public sector spending, it is vital to create an environment that encourages private
sector investment.
Indeed, the survey shows that economic uncertainty is still seen as the greatest
systemic threat, with an overwhelming 80% citing concerns about governments
ability to drive infrastructure spending and lack of offcial leadership as barriers to
investment. Moreover, two-thirds of engineering and construction leaders believe
that the private sector is not showing enough initiative, the company says.
This analysis of the construction market follows on the heels of the latest in the
ongoing quarterly series of renewable investment country attractiveness indices from
Ernst & Young.
According to this edition, China maintains its position at the top of the all-renewables
index with the US, Germany, India and Italy leading the pack and the UK, France,
Canada, Spain and Brazil fnishing up the top 10.
The report observes that competition for limited capital and drive for increased
effciencies have combined to defne the renewable energy sector over the past
12 months. As with KPMGs analysis, the report says that investor hesitation
has grown because of conficting government policy signals, ranging from
decreased FiTs to a drop-off in loan guarantees. But, at the same time, these same
governments are struggling to overcome the dilemma of how to deliver secure,
low-cost energy without impeding the market and while also creating jobs.
It seems that there are clear, if somewhat disturbing, conclusions to be drawn from
these reports. Evidently the appetite for new energy infrastructure has, if anything,
grown in the last year, and this trend is expected to continue and intensify as the
move to a low-carbon world accelerates.
Simultaneously, with public sector fnances largely in disarray, governments are
consistently falling far short of the mark if their intention to drive private sector
renewable energy investment is to be achieved.
David
Appleyard
Chief Editor
FROM THE EDITOR
Member, BPA Worldwide
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8 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
NEWS ANALYSIS
RENEWABLE MERGERS AND
ACQUISITIONS HIT STRIDE
POLICY & MARKETS
D
eal values for renewable
energy rose 40% year on
year, from US$38.2 billion
in 2010 to a record $53.5 billion
in 2011, reports Pricewaterhouse
Coopers (PwC) in its annual global
analysis of merger and acquisition
(M&A) transactions in the sector.
With renewable technologies
entering the big time and driving
the market to new record highs,
billion dollar deals dominated as
solar, wind and energy effciency
overtook hydropower as the driver
for big values for the frst time.
One in every three deals in 2011
was solar and overall deal value
for the sector is up 56% from
$10.2 billion to $15.8 billion.
There was also continued strong
momentum behind deal activity
in the energy effciency sector
and, buoyed by the increase in
big transactions, deal value in
these two sectors nearly doubled
year on year. Together, these two
sectors accounted for the vast
majority (79%) of the $15.3 billion
increase in the total value of all
renewables deals.
According to the PwC analysis,
European deal volumes dipped
6% but overall value rose 80%
from $16.7 billion to $30 billion,
while North American deal volumes
dipped a similar amount at 5%,
but with deal value also down 5%
from $13 billion to $412.4 billion.
However, South American deal
volumes rose 90%, with total value
up from $3.2 billion to $6.8 billion,
and the Asia Pacifc region saw its
deal volume down by 26% in 2011
over 2010, but value rose 15% from
$4 billion to $4.6 billion.
BEHIND THE INCREASE
PwC suggests that a reappraisal
of the role of nuclear in many
countries national energy
strategies after the Fukushima
emergency has provided an extra
impulse for renewable generation in
certain markets.
Furthermore, falling solar prices
are making solar power more
economical and closer to grid parity
in some markets. The entrance
of pension and insurance funds,
most notably via the $1.3 billion
investment by Danish pension
insurance groups in offshore wind
in Denmark, confrms the trend
towards a maturing market and
the creation of secondary markets.
But the report also warns that
the sector is facing considerable
growing pains.
SOLAR AND WIND
As well as expecting to see a
smaller number of global players
in the solar market, PwC also says
that consolidation among larger
players is likely to occur in the
windpower sector, adding that two
recent proft warnings from Vestas
are the most high-profle example
of the challenges facing some
windpower companies.
Ronan ORegan, director of
renewables and cleantech at
PwC, observed: As offshore wind
projects increase in size, the need
for a strong balance sheet to
support the technology becomes
more important. This creates scope
this year for a landmark wind power
combination between players from
one or more of Asia Pacifc, Europe
and North America.
Commenting on the overall
fndings, Paul Nillesen, partner,
PwC renewables, said: Dealmaking
in the renewables and energy
effciency sectors is intensifying as
the sector evolves. Sustained high
deal numbers and record total value
refect a maturing of the sector. The
trend is all the more noteworthy
given the uncertainty in the
market and in government policies
on renewables.
On the solar sector Nillesen
continues: US and European
manufacturers are coming under
cost pressures. Some Chinese
manufacturers also face heavy debt
and are under competitive strain.
There is signifcant overcapacity
in China. The result is likely to be
a succession of tie-ups within and
between the main manufacturing
territories of the US, Germany and
China leading to a smaller number
of big global players.
Continued rolling uncertainty
on the eurozone crisis will make
the deal environment much more
diffcult for 2012 and a deeper
crisis would undoubtedly dampen
deal fow further, but Nillesen is
optimistic that market uncertainty
might not block the big deals,
saying: Staying out of the markets
in the hope things will improve
cannot be assumed to be the right
strategy. The potential for further
destabilisation domestically, or at
an inter-governmental level, cannot
be ruled out, but if a deal is highly
strategic and mission-critical, then
parties will still feel it is worth doing
on the right terms.
A WIDER CONTEXT
Putting renewables into a wider
energy M&A context, PwC believes
that a major shift in global power
M&A activity is taking place,
ending a six year era of European
dominance in power deals.
According to the companys annual
Power Deals report, the eurozone
crisis is having a double-edged
effect on deals. On the one hand
it is constraining fnance, while on
the other it is expected to lead to
deal fow. It is also prompting a fow
of privatisations as governments
sell power assets as part of their
austerity measures, and leading
to further currency weakness,
strengthening overseas buyers.
Market uncertainty
might not block the
big deals
Asia Pacifc buyers and sellers
were behind the largest number of
deals in 2011 and any softening
of valuations in Europe will likely
reinforce their deal interest in the
European marketplace, as well as
the strength of the yen and renminbi
against the euro, PwC believes.
Indeed, in the last 12 months,
Europe has recorded its lowest
share of worldwide power deal
value since PwC started analysing
deal-making in the sector in 1999,
with the total deal value in Europe
plummeting 43% year on year
to stand at $39.8 billion (from
$70.3 billion the year before). But
this $30.5 billion fall in power deal
target value in Europe was more
than made up for by a $58.5 billion
increase in North America.
DIVESTMENT IN EUROPE
A strong theme which is expected
to intensify this year is European
divestment programmes, with the
major power utilities needing to
strengthen their balance sheets to
make the big investments required
in their core markets while retaining
the fexibility to seek out growth
markets. E.ON and RWE are
both planning major divestments
in 2012.
The capital expenditure and
growth challenges faced by
European utilities are all the greater
because of current constrained
debt markets and more limited
fnancing options. This reduction in
capital-raising options will continue
to spur divestments by the major
European power utilities, PwC says.
Andrew McCrosson, partner,
UK power and utilities, PwC, said:
European utilities face a tricky
balance. Were going to see some
interesting new partnerships in
the years ahead as companies
intensify their relationships with
alternative sources of funding. It
will mean a step-up in partnerships
with sovereign wealth funds,
pension funds and infrastructure
funds. The Chinese state-owned
power companies could play a
role as well as other active Asia
Pacifc investors.
Manfred Wiegand, global power
and utilities leader, PwC, says: Its
a different M&A world that is less
euro-centric. European companies
are looking to South America and
other growth markets. Asia Pacifc
buyers are busy in Europe. The US
deal fow is compelling and has
further to go if current deals get
the regulatory green light. There are
plenty of reasons to expect deal
fow to continue unless the current
crisis has a worldwide recessionary
effect.
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 9
NEWS ANALYSIS
BEST RISK MANAGEMENT
SOLUTIONS ARE IDENTIFIED
POLICY & MARKETS
G
lobal economic woes
have taken their toll, but
investment in renewable
projects is still strong and since
2010 has surpassed investment in
new fossil fuel plants.
But as a new report by the
Economist Intelligence Unit (EIU)
of Swiss Re reminds us as
investment grows, so too do the
risks involved in owning, managing
and operating such installations.
To gain insight into the sectors
own estimation of the signifcant
risks involved in renewable projects,
the EIU surveyed 280 senior
executives in the renewable energy
industry. The respondents were
based in western Europe (Germany,
the UK, Denmark, Spain and Italy),
North America and Australia. The
results detail the ways that industry
executives are managing and
reducing risk, the instruments they
are using to transfer some of these
risks, and the risk management
challenges they face.
RENEWABLES RISING
Although just 33% of survey
respondents said that renewable
energy is highly signifcant for
their business strategy today, 61%
expect this to be the case in three
years time. Almost half (46%)
of respondents expect annual
growth of over 15% in their frms
renewable energy investment.
Interestingly, the respondents
tended to have the highest growth
expectations for the renewable
energy technology in which they
themselves were actively involved.
For example, while 48% of the total
survey sample expected high or
very high growth in installed wind
power capacity, among wind energy
frms the fgure was 73%; and while
47% of the total sample expected
high or very high growth in solar
energy capacity, the fgure among
solar specialists was 86%.
TYPES OF RISK
The report identifes several
signifcant types of risk, including
building and testing risk; business/
strategic risk; environmental
risk; fnancial risk; market risk;
operational risk; political/regulatory
risk; and weather-related volume.
Of those surveyed, 76% identifed
fnancial risk as the most signifcant
associated with renewable energy
projects. 62% identifed political
and regulatory risk as signifcant,
and 66% of respondents involved
in wind power mentioned weather-
related volume risk.
EARLY RISK
The general perception among
survey respondents was that the
earlier stages in the lifecycle of a
renewable energy plant are often
riskier than the latter stages. Some
24% of respondents assessed
the fnancing stage of renewable
energy project development as
high risk more than any other
stage. And 30% of respondents
from companies with revenue
below US$500 million described
the overall degree of risk associated
with fnancing a project as high,
while among larger companies the
survey found a lower fgure (18%).
Another early type of risk, political
and regulatory risk, was identifed
by 15% of survey respondents as a
high risk, second only to fnancial
risk in importance, while a further
46% of respondents rated political
and regulatory risk as medium.
Among the types of risk likely to
materialise in the later stages of a
project, weather-related risk was,
unsurprisingly, rated differently by
survey respondents from different
renewable energy sectors. Some
18% of respondents from the wind
sector described weather-related
volume risk as a high risk, while
47% rated it medium risk. But only
7% of respondents from the solar
sector described weather-related
volume risk as a high risk, while
41% rated it medium.
OBSTACLES
The report points to signifcant
obstacles to risk management in
the renewables industry. Although
70% of respondents say they are
successful in identifying risk, fewer
are successful at mitigating it (61%)
or transferring it (50%). Obstacles
to more effective risk management
include restricted availability of
both industry data and suitable risk
transfer mechanisms.
Many respondents pointed to
diversifcation across geographies
and technologies as the single most
powerful tool to mitigate regulatory
and weather-related volume risk.
And 55% of respondents said they
mitigate operational risk by relying
on proven technologies.
Of the survey respondents,
60% use insurance policies to
transfer risk to third parties,
making it the most common risk
transfer mechanism. However, the
use of alternative mechanisms
such as weather-based fnancial
derivatives appears to be growing,
and the renewable energy sector
also makes heavy use of service
contracts with hardware suppliers
to transfer operational risk. But
some executives told the EIU that
they retain regulatory and weather-
related volume risk because they
see few cost-effective alternatives.
According to the report,
38% of executives expect to
make additional use of fnancial
derivatives to transfer risk over
the next three years, and 34%
special purpose vehicles and 55%
insurance. Renewable energy
executives told the EIU that they
expect wider availability of more
standardised products, notably
weather derivatives, insurance and
hedging contracts.
CONCLUSIONS
Based on the survey, the report
offers several recommendations,
most importantly that companies
should intensify their efforts to
reduce and mitigate risk. Even so,
given that effective risk transfer
products are limited in availability
developers should focus on
mitigating specifc risks and on
reducing general business risk for
example, by sharing risk with joint
venture partners, or by investing
in late stage developments. The
report also advises companies to
focus on industry collaboration
and partnerships as a way of
reducing risk. Companies might
pool information or spares, or jointly
collect relevant weather data.
Finally, the report advises
renewable power developers
to foster industry expertise and
product development. The EIU
believes that more comprehensive
information and data on renewable
energy technologies, together with
industry education programmes,
may enable the development of
expertise both within the renewable
energy sector and among external
stakeholders, potentially paving the
way for more available and effective
risk transfer products.
As investment in renewable energy grows, so too does the risk.
MAXIME DUPUIS
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10 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
NEWS ANALYSIS
EUROPEAN OFFSHORE WIND
SECTOR HOLDS STEADY
OFFSHORE WIND
W
ith 235 new offshore wind
turbines grid-connected
and worth approximately
2.4 billion, 2011 was a stable
year for the offshore wind industry,
according to the European Wind
Energy Association (EWEA) which
has published its annual offshore
wind statistics for 2011.
A total power capacity of
866 MW were fully grid connected
across nine offshore wind farms
over the year, although EWEA
fgures show this is in fact slightly
down on the 2010 numbers of
883 MW installed and connected.
However, nine offshore wind farms
currently under construction will
bring an additional 2375 MW online
increasing the EUs total installed
offshore wind power capacity by
62%. These fgures compare with
2008s 327 MW and 2009s 584 MW
of offshore wind installed.
A total of 1371 offshore turbines
have now been grid-connected
across the EU, with a total power
capacity of 3813 MW in 53 wind
farms in 10 European countries.
Mostly in northwestern Europe,
new offshore wind farms with a
capacity of 5.6 GW are currently
under construction in the UK,
Germany and Belgium. The majority
(87%) of all newly installed and
grid-connected offshore wind
power in 2011 was in British waters.
European companies are
currently global leaders, with
over 99% of the worlds installed
offshore capacity in European
waters. Siemens supplied 80%
of the MW installed offshore last
year while SSE and RWE Innogy
were the most active developers
and DONG Energy continued to
be the most active equity player in
offshore wind power, EWEA says.
Areas for growth in offshore wind
energy include turbine and turbine
component manufacturing as well
as substructures, vessels, electrical
infrastructure including high voltage
subsea cables, and ports.
Over 141 GW of offshore wind
energy capacity is built, under
construction, consented, or
planned in Europe. These new
wind farms representing 35 times
more capacity than the just under
4 GW installed today would
provide 13.1% of Europes total
electricity production. EWEAs
target for installed EU offshore wind
power capacity by 2020 is 40 GW,
producing approximately 4% of the
EUs total electricity consumption.
In addition, some 169,000
jobs in the EU offshore wind
energy sector are expected to be
created by 2020, rising to 300,000
by 2030, according to EWEAs
latest analysis.
However, the new report warns
that if the offshore wind energy
sectors potential is to be fulflled
in Europe, it is imperative that
suffcient levels of fnancing are
brought in by investors. Also crucial
are the fnancing and building of
offshore power grids in the northern
and Baltic seas, which would
enable huge amounts of electricity
to be transported to consumers.
For the industry itself, there is
the risk of a high-voltage subsea
cable shortage in the next few
years which must be addressed
urgently, says the report, as
well as a possible shortage of
trained workers.
There is huge developer interest
in offshore wind energy across
Europe, observed Arthouros
Zervos, president of EWEA. He
added: Developers, governments
and investors realise that offshore
wind energy offers the growth
and jobs that Europe desperately
needs. The offshore wind energy
sector can replicate the success
of onshore wind technology
development, which is now a
mainstream source of power
competitive with new coal and
gas plants, and a major European
industry. However, to ensure this
happens, EU decision makers
need to set ambitious renewable
energy targets beyond 2020, invest
more in research and develop
an offshore grid.
Commenting on the numbers,
Justin Wilkes, policy director
of EWEA, says: The offshore
wind sector witnessed a stable
market in 2011. Despite the
economy-wide fnancial squeeze,
2011 saw a 40% increase on
the previous year in offshore
non-recourse debt fnancing,
up from 1.46 billion in 2010 to
2.05 billion in 2011.
He concludes: The strong
project pipeline and fnancial
developments highlight the
importance of countries continuing
to provide and develop stable long-
term frameworks for offshore wind
power in order to allow the industry
to continue its development.
According to an even more recent
analysis by EWEA, the EU achieved
its 2010 renewable electricity target
of 21% of electricity consumption
as set out in its 2001 Renewable
Electricity Directive.
According to the trade groups
analysis of provisional EUROSTAT
data, as well as EurObservER and
EURELECTRIC fgures, in 2010
renewable energies produced
between 665 TWh and 673 TWh,
hitting the 21% target given that
total consumption was around
3115 TWh to 3175 TWh.
If renewable electricity
production in the EU continued to
grow at the same rate as it did from
2005 to 2010 it would account for
36.4% of electricity in 2020 and
51.6% in 2030. The renewable
electricity targets set back in 2001
have been realistic as well as
effective, said Wilkes.
He added: The growth achieved
in the last fve years has been
outstanding and if continued
would result in over half of the EUs
electricity coming from renewables
by 2030. A long-term stable
framework, underpinned by an
ambitious 2030 renewable energy
target, is clearly the proven way to
ensure Europe meets its climate,
competitiveness and energy
security goals.
The growth of renewables
between 2005 and 2010 was largely
carried by onshore wind. In future
the renewables sector will beneft
from signifcant growth in offshore
wind and other technologies
as they become more mature,
he concluded.
EUROSTAT is due to publish
defnitive 2010 fgures in a few
months time.
2011 was a stable year for the offshore wind industry
SIEMENS
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Answers for infrastructure.
All indicators point to continued growth for onshore and
offshore wind power for economic reasons and also
because wind power is an important contribution to CO2
emissions reduction in power generation. It pays off to
speed up new wind projects.
ENEAS (Efficient Network and Energy Automation Systems)
generic solutions for wind power are specially designed to
provide an off-the-shelf solution for wind power purposes.
Based on Siemens vast experience in automation of pow-
er-collection grids for wind farms of all sizes, they ensure
optimal processes throughout the entire project life cycle
of a wind power plant.
The preconfigured and pretested, universally applicable
solutions for switchgear on all required voltage levels suit
wind power plants from a single turbine to large-scale
wind farms.
www.siemens.com/eneas-wind
ENEAS generic solutions for wind power considerably
reduce the effort usually required for the clarification of
details and engineering. Comprehensively tested applica-
tions and templates increase the overall project quality
and transparency, and they accelerate the entire project
planning and implementation process.
Out-of-the-box solutions ensure faster
ROI and quick project implementation
Siemens ENEAS generic solutions for wind power
E
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12 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
NEWS ANALYSIS
EUROPEANSOLAR IN GOOD
SHAPE, SAYS LUX ANALYST
FORECASTINGSOLAR DEMAND
E
uropes solar market is in
good shape despite the
global fnancial crisis, a new
study by Lux Research shows.
Small European markets will show
favourable returns in the near term,
the study predicts, while Asian
markets will rise over the next few
years. Portugals market is currently
the hottest for solar investors
able to undertake projects under
the nations installations cap. The
Portuguese internal rate of return
(IRR) remained high in 2011 and
is projected to push the annual
market to nearly 400 MW in 2016.
At number two is the solar market in
Cyprus, followed by Hawaii, Greece
and Israel.
Uncertainty surrounding
Europes fnancial situation
and its countries ability to pay
out incentives will prevent wild
growth keeping that market
relatively constant, explains Matt
Feinstein, the Lux Research analyst
who led the study. However, a
number of Asian markets have high
returns going into 2012 notably
Malaysia at 24.1%, the Philippines
at 22.6%, and Japan at 20.9%.
They will push demand toward that
region in 2012 and 2013.
The study, which Lux Research
terms the Solar Demand Forecaster,
tracks IRR and projects future
growth through 2016 for six key
PV technologies monocrystalline
silicon (c-Si), multicrystalline
silicon (mc-Si), cadmium telluride
(CdTe), copper indium gallium
diselenide (CIGS), thin-flm silicon
(TF-Si) and high concentrating
photovoltaic modules (HCPV). Lux
says the study offers a metric for
investors to compare demand and
project growth for solar across
disparate markets.
REW asked Feinstein to
comment further on the processes
involved in the study and its results.
ANALYST Q&A
REW: You analysed 50 US states,
31 Chinese provinces and semi-
autonomous regions, and 75
countries/regions. How (broadly)
does each category break down?
That is, which states, provinces,
countries etc are most signifcant
and why?
Feinstein: For the US states,
California and northeast states with
SREC markets have shown the
best returns. Even though systems
normally only generate SRECs for
three years or so, prices are so high
that the investment is well worth
it. Among countries elsewhere,
small European subsidies show
favourable returns there, but of
course the fnancial crisis has led
to decreasing confdence about
the growth potential in that market
not to mention that it is already
well-saturated with solar, and
suppliers are looking elsewhere
to enable broader distribution,
immunising their forecasts
from the risk associated with
uncertain subsidies.
REW: You broke down IRR for
residential, commercial and utility
installations. How do these areas
compare broadly in terms of
growth, and how do they compare
between key regions?
Feinstein: It largely depends on
the subsidy scheme, when looking
at specifc regions. In India,
some states prefer utility-scale
installations, whereas others give
generous rebates on residential
systems. In total, the commercial
segment is the largest, but growing
slowest. Residential is smallest and
growing the fastest leading to a
relatively equal split in fve years.
REW: Tell us more about the top
fve locations (Portugal, Cyprus,
Hawaii, Greece and Israel) as they
fgure in your analysis.
Feinstein: Truth is, the numbers
work out nicely there IRR enables
an apples-to-apples comparison
despite the size of a market but
these are all relatively small markets
that wont fgure largely into the
broad demand picture.
REW: Describe the method behind
the SDF.
Feinstein: We compile data
from the solar end module and
balance of systems pricing, module
effciencies, fnancing, O&M costs,
etc and electricity prices and
demand, and solar insolation, by
region. We can then calculate the
levelised cost of energy (LCOE) of a
system by geography, technology,
and application. As we understand
up-front investment, cost-per-kWh
generated, and the value of returns
over time (subsidies, energy), we
can determine IRR. Based on
historical installations and total
addressable market, we correlate
that to projected MW installed.
REW: Finally, can you offer
our readers some more
detailed predictions?
Feinstein: Asia South Asia,
specifcally becomes a heavy
riser medium- and long-term as
Europe declines. North America
specifcally the US takes that
demand in the short-term, as long
as the investment tax credit (ITC) is
still around.
Europe is doing well in the near term but in the coming years will decline in favour of Asia
JUWI
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34 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
POLICY & MARKETS: ITALY
N
ever one to do anything by half-measures, a somewhat surprising
legacy of ex-Prime Minister Silvio Berlusconis government has
been to send installed capacity in Italys photovoltaic (PV) market
soaring through the roof. Reacting to a resounding public vote against
nuclear power in 2011, a fourth edition of feed-in-tariffs (FiTs) was
announced for the sector and though somewhat reduced, they were
still high enough to keep Italys PV counter ticking faster than ever.
According to Gestore dei Servizi Energetici (GSE), the agency which
supports the development of renewable energy on behalf of the Italian
treasury, Italy had reached 10 GW of PV capacity by September, a
calculation based on applications for incentives. By 3 January 2012
this fgure ballooned to 12.5 GW at a cumulative annual cost of
5.4 billion and over 319,000 installations.
However, a recent report published by KPMG Advisory in
Italy, which documents the remarkable growth of Italys renewable
energy market, is emphatic that while these technologies present
an attractive solution for a secure energy supply with reduced
import dependence, the incentive mechanisms which have been so
instrumental to sector growth are unsustainable.
In late November 2011, Investing in Renewables: Trends,
Opportunities and Perspectives was frst presented to an audience
of around 50 key sector players. According to Gianpaolo Attanasio,
the associate partner responsible for the report, the audience
had two major concerns: stability of regulations for the future
and fear that a sharp reduction in future subsidisation of the
sector could halt investment activity and lead to delocalisation to
the neighbouring countries of Eastern Europe. Indeed, with an
unexpectedly new technocratic government in place, a scheduled
talk by the representative of the Ministry of Economic Development
was cancelled. The concerns are not about the evolution of the
regulation itself, says Attanasio, but about the mid-term stability of
this regulation. The big concern in the past was that every 12 months
the regulation kept changing.
As described by Attanasio, the report was driven by two
motivations: to defne quantitative scenarios for green certifcates
for the wind, biomass and mini-hydro sectors based on realistic
assumptions, and to paint a complete picture of Italys renewable
energy landscape for potential investors. The comprehensive report
WHAT WILL HAPPEN
TO ITALIAN FITS?
All eyes are on the Italian government to see what will happen to the nations
renewable energy incentives under the new technocratic regime. Rachana
Raizada takes us through a new KPMG report which paints a complete picture of
Italys current renewable energy landscape for potential investors.
NEW GOVERNMENT, NEW MARKET
Have Italian subsidies for the renwables sector
been too high from a long-term perspective?
ENEL GREEN POWER
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 35
POLICY & MARKETS: ITALY
VERONA, ITALY
MAY 7-8, 2012
4
th
edition
italianpvsummit.com
platinum sponsor gold sponsor
GLOBAL OUTLOOK
Short-term outlook for cell and module markets:
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M&A, partnerships, transition from manufacturing
to system integration: current trends in the consolidation
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Domestic content clauses, state aid les, dumping les:
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erce competition challenge
2013-2016, achievement of the grid parity (Italy being on
the forefront): the cost roadmap of the global PV players,
the convergence of the analysts
Time to market of the emerging markets
ITALY OUTLOOK
The unprecedented boom of 2011 installations:
Italy shines brightest as the worlds rst PV market
Regional burden sharing, streamlining the permitting and
grid access, energy storage: further conditions for growth
The impact of a massive solar generation on the electricity
market price: counterbalancing the cost of the incentives?
Bank deleveraging, the secondary market of PV plants,
the nancing needs of new business models:
the nancing climate for PV amid risks of credit crunch
Efcient production scale, downstream integration,
internationalisation: challenges for the Italian PV industry
summarises the history of incentives for the sector; benchmarks
some of the key players, and touches on more specifc issues such
as reaching grid parity, project fnancing and M&A activity.
Italian attitudes towards renewable energy are not politically
polarised, and it is generally seen as an attractive solution for energy
autonomy given the countrys reliance on imports for 97% of its
gross domestic energy needs. In 2009 energy from non-fossil fuel
sources (including hydro over 1 MW) accounted for 11% of energy
consumption. Limiting the analysis to domestic electrical energy
production, however, Italy, with its absence of nuclear power, is
highly dependent on thermo-electric generation (77% in 2009). In
2011 Italy generated approximately one-quarter of its electricity from
non-fossil fuel energy sources, with large-scale hydro accounting for
the lions share.
The KMPG defnition of renewables excluding hydro over 1 MW
describes technologies used to generate electrical energy without
use of fossil fuels or nuclear power and, most importantly, as
not having reached grid parity and therefore in need of incentives
(wind, PV, biomass and biogas, geothermal and mini hydro). By this
defnition, in 2010, of 106 GW of electrical generation capacity and
an annual production of 299 TWh, thermal electricity generation,
hydro and renewables accounted for 74%, 17% and 9% of national
electrical energy production respectively while having 71%, 16% and
12% of capacity. From 2005 to 2010, production from traditional
thermal electric generation actually decreased by 10%, while hydros
share increased by 40% and that of renewables by 100%.
During these years, as the economic recession led to decreased
electricity consumption, renewables reaped the advantage of their
dispatch priority at the expense of traditional thermal electricity
generation. From 2005 to 2010, the contribution of renewables to
domestic electricity generation increased from 5% to 9%.
The PV incentive scheme seems to have been successful
in decentralising power production. While in 2010 there were
871 thermal electric installations and about 1000 for hydroelectricity,
renewable energy sources accounted for 159,000 installations, with
PV alone accounting for 98% of these.
Based on data from Terna S.p.A, the owner and operator of
the national high-voltage electricity transmission grid, the report
spotlights the remarkable growth rates of the PV, wind and bioenergy
sectors. From 2005 to 2010, installed capacity in PV increased from
7 to 3500 MW a CAGR of 246% compared to a CAGR of 29%
for wind which, with almost 6 MW of installed capacity in 2010,
accounted for 45% of renewable energy production capacity.
When it comes to actual electricity production, however, wind,
geothermal and bioenergy carry the day. In 2010 geothermal, with
only 6% of capacity, accounted for 19% of electricity generation while
bioenergy, with 18% of capacity, accounted for 34% of production,
refecting the relatively higher load factors of these technologies.
Wind accounted for 32% of electricity generation, mini-hydro for 8%,
with PV accounting for the lowest share at 7% or 1.9 TWh.
Though some form of renewable electricity generation is present
in all 20 Italian regions (the highest-level administrative divisions of
the state), the distribution of renewable technologies throughout Italy
refects its diverse geography. In the northern macro-region which
includes the Alps, the major industrial centres and the agricultural
plains of Lombardy, Piedmont and Veneto, bio-energy and mini-
hydro account for 64% and 25% of electricity generation from
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36 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
renewable resources. In the central part of the country, on the other
hand, geothermal resources are the major renewable electricity
generator, accounting for 77% of production, all of it concentrated
in Tuscany. In the windy south (the macro-region is defned to also
include Sicily and Sardinia in addition to the southern regions),
bioenergy accounts for 28% and wind power for 65%.
The southern macro-region, as defned in the report, accounted
for half of renewable electricity generation in 2010. Tuscany alone
accounts for a ffth of Italian renewable electricity generation followed
by Puglia (13.6%) and Sicily and Lombardy with approximately 9%
each. Wind is an important resource in the two southern regions
whereas in Lombardy, where the highly polluted air rarely moves, the
major contributor is bioenergy.
While this uneven development is largely attributed to the terrain
and climate, the report suggests it may also refect the fact that
complicated regulatory processes and grid connection requirements
can vary considerably from region to region.
One of the main original contributions of the report is a section
benchmarking a sample of 25 companies operating in the Italian
market based on publicly available fnancial data. The companies
were chosen as being key players and have been categorised
into three clusters. The frst consists of eight traditional energy
players (of which three are Italian) with divisions for renewable
energy: Enel Green Power (really the major player), Alpiq, BKW,
EDF Energies Nouvelles, Edison, E.ON Climate & Renewables,
International Power (GDF Suez) and Sorgenia. The second cluster
is composed of nine Italian industrial players which have diversifed
into renewables. The fnal cluster, designated startup, is a catch-all
term for some independent companies which, by and large, focus
on the development of renewable energy. Warning that this is a
dynamic business with very heterogenous players and that its a
model diffcult to depict unequivocally, the report offers a summary
of proftability and diversifcation of these major players.
The total sample accounted for around 5400 MW of installed
capacity in 2010 or 43% of national renewable energy capacity. Of
this, the group of eight traditional energy companies account for
24% of national installed capacity while the other two clusters each
account for around one-tenth. The major energy players are found
to be providing almost 100% of geothermal electricity generation
(monopolised by Enel Green Power), 69% of wind power capacity
(4000 MW) and 20% of bioenergy.
The bioenergy sector shows a medium level of concentration
with the fve largest operators accounting for 17% of national
capacity while the PV market is extremely fragmented: the fve
largest account for only 4% of installed capacity as a result of
the low capital cost of entry. The sample collectively accounted
for 30% of renewable electricity production in 2010 or around
8700 GWh. The sample companies focus their electricity production
in the southern macro region where the companies in clusters two
and three have 94% of their installed capacity.
For Attanasio, one of the surprising fndings of the study
is the relatively high yield of investments in this sector. While
acknowledging that it is not possible to estimate the unique
contribution of renewables from overall corporate activities for most
of the traditional energy companies in the frst cluster (for example,
Enel Green Power), the analysis fnds that the ratio of proftability
(as measured by EBITDA margins to revenues) is relatively high
for clusters two and three. While the majority of companies have
revenues under 100 million, the EBITDA margin falls between
35% and 90% with a solitary exception.
Attanasio feels that this points to subsidies for the sector as
having been too high from a long-term perspective. Installed capacity,
particularly in the PV and wind sectors, has rocketed between 2005
and 2010 but at what cost? The report emphasises that it has
been diffcult to achieve equilibrium between continued fnancial
support and the attainment of grid parity.
The analysis clearly identifes how sector growth rates do not
necessarily correlate with contribution to renewable electricity
generation, as in the case of PV with its phenomenal growth rates
and low contribution. Attanasio believes that what the country needs
is a comprehensive national energy policy, not a hastily cobbled
patchwork of incentives for various renewable energy sources.
Currently there are two basic types of incentives: market
incentives (Green Certifcates) and administrative mechanisms
such as the all-inclusive tariff and FiTs. The Green Certifcate
scheme applies to all renewable energy sources (except PV) and
to all installations which commenced operations before the end of
this year. Energy is sold at the market price plus the value of the
incentive as determined by the market; the incentive has a 15-year
lifespan. However, as this mechanism is gradually being phased
out to be replaced with FiTs, for Attanasio the key issue now is the
uncertainty surrounding incentives for wind and biomass. In the past
energy policy was often heavily infuenced by key players, but with a
government that seems to be taking snap decisions before it can be
infuenced, it remains to be seen how the battle will play out.
Distribution of renewable technologies in Italys regions
KPMG
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 37
Another scheme, the all-inclusive tariff, offers smaller
renewable electricity generators from all sources (except PV) an
alternative to the Green Certifcate Scheme whereby the energy is
sold at a price that includes the incentive. The size cutoff depends
on the technology: 1 MW for bioenergy, cogeneration, mini-hydro,
tidal energy and geothermal and up to 200 kW for onshore wind
installations. The incentive applies to installations which enter into
operation before the end of this year, and has a duration of 15 years.
The PV sector, on the other hand, has been supported through
FiTs, with the rates varying through successive plans (Conto
Energia). The most recent and fourth version (IV Conto Energia),
announced in May 2011, once again redefned 20-year incentives
for PV installations which commence operations before the
end of 2016. (All of these schemes were preceded by CIP6 from
1992 to 1999. With a 15-year lifespan it will end soon, and thus
doesnt apply to new market entrants).
The incentive schemes have been costly: increasing from
1.7 billion in 2008 to 3.4 billion in 2010 and to an estimated
6.4 billion in 2011. Of this cost, 80% is the so-called A3
component, shouldered by the fnal consumer through electricity
bills. Given the unpopular austerity measures announced by
the new government, how long will the public continue to
support this sector?
Alarm bells have rung for the PV sector, which saw incentive
costs spiral from 110 million in 2008 to an estimated 3.5 billion in
2011. In contrast, the cost of the Green Certifcate scheme doubled
from 615 million in 2008 to an estmated 2.1 billion in 2011. While
installed capacity has doubled, the cost of the incentives has more
or less quadrupled. PV is singled out as being under-optimised
given the high level of expenditure per TWh.
Notwithstanding these criticisms, however, the report
outlines how the renewable energy sector has been popular as
a cautious investor choice for project fnancing, second only to
telecommunications in terms of the value of fnancing. The countrys
two major banks, Unicredit and Intesa Sanpaolo, together account
for a third of the total number of projects fnanced and just over 40%
of the cumulative value of 50 billion fnanced until the frst half of
2010. However, given the future uncertainty related to incentives,
Attanasio believes there may be a shift towards leasing or corporate
fnancing in the future.
Now all eyes are on the new government to see what will happen.
The new Minister of Economic Development specialises in leading
companies, most recently in banking. His counterpart at the Ministry
of Environment was until recently the Ministrys director general. Hes
a specialist in workplace and public health who has been involved
in environmentally sustainable initiatives throughout his career. They
are described as having little in common except their frst name:
Corrado. But in the Russian roulette of Italian politics, just perhaps
it will be enough.
Rachana Raizada is a freelance journalist focusing on the
energy sector.
e-mail: [email protected]
This article is available on line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
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____________
BIOENERGY: CONVERTING FROM COAL
38 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
CONVERTING
TO BIOENERGY
With legislation increasingly tough on coal-burning plants, many are switching to renewable fuels to ensure
longevity. But supply chain issues may prevent some plants from undertaking the conversion process.
Tim Probert profles the UKs Tilbury power station, a 1960s coal plant which has become the worlds largest
biomass plant, and talks to Drax about the potential to convert its 4 GW coal plant.
BENEFITS AND CHALLENGES
The critical aspect of whether other coal plants in the UK and elsewhere can convert to biomass is fuel supply. DRAX
T
o describe the British town of Tilbury as a green beacon would
require a stretch of the imagination. Home to Londons main
container port and an unsightly 1960s concrete-slab power plant,
with a curious smell emanating from the nearby sewage works,
Tilbury epitomises twentieth century grit, clank, smoke and soot.
Yet a beacon of green energy is exactly what Tilbury power
station has become. In December 2011, Tilbury B, a 1062 MW
coal-fred plant opened in 1967, was successfully converted to a
742 MW biomass plant. Tilbury thus became the largest biomass
burning power generation facility in the world, beating the previous
coal-to-biomass record holder, GDF Suezs 180 MW Rodenhuize
plant in Belgium, by some distance.
Rather than invest in fue gas desulphurisation and other
emissions reduction measures, owner RWE npower opted
Tilbury out of the European Commissions Large Combustion
Plant Directive (LCPD) in 2007, restricting the plant to a further
20,000 operating hours between 2008 and 2015.
Having conducted trials in September 2010 to prove the
technical feasibility of burning biomass exclusively in a coal unit,
RWE npower took the decision to convert the plants three 350 MW
units to biomass two months later.
Tilbury B generated its last kilowatt hour from coal on 4 March
2011. In the nine months between coal and biomass generation,
Tilburys engineering manager Dave Dyson worked frantically to
ensure the plant can burn 2.3 million tonnes of wood pellets, enough
for the remaining 8000 hours, by 31 March 2013, when the number
of Renewable Obligation Certifcates (ROCs) allocated to biomass
conversion plants reduces from 1.5 to 1.
A FINANCIALLY BOLD DECISION
Dyson says the decision to convert Tilbury B to biomass was brave.
The cost of the conversion is in the tens of millions, but the value at
risk is in the hundreds of millions, he says.
We had fxed-price coal contracts and forward power prices
set. Virtually all the power produced from coal was sold forward. We
had to unwind all those contracts and that secure income. Instead
weve taken on contracts for 2.3 million tonnes of wood without
having proven we can use it.
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Burning coal, Tilbury would operate near baseload in the winter
months of December, January and February, two-shifting in spring
and autumn, with often no units running for weeks at a time in
summer. Over the course of a year, this would amount to around
4500 hours. In order to use up the 8000 hours by 31 March next
year and avoid a fnancial hit of around 20/MWh (US$31.14/MWh),
however, Tilbury will run at sub-optimal periods, that is, when the
price of electricity is low.
Dark spreads [the theoretical gross income produced by the
sale of a unit of electricity, less the cost of the fuel to produce the
electricity] could be vastly lower than under a purely commercially
driven aspect, but we need to burn the hours up, says Dyson.
At times our revenues from the power price may be barely above
the ROC price.
TILBURYS MAJOR ADVANTAGE
The design life of the conversion may be only 8000 hours, but
surprisingly little was spent on converting Tilbury from coal to biomass.
The UKs Drax coal power plant, for example, spent 80 million
($125 million) on new biomass burners and fuel conveying and
fltering equipment, plus a railway upgrade which will enable the
plant to co-fre up to 10% biomass, or around one million tonnes
per year.
Tilbury has one distinct advantage for biomass conversion: its
own jetty on the river Thames, which can accommodate Panamax
class vessels of up to 60,000 tonnes and saves an estimated
30 million ($47 million) per year in rail freight costs. Dysons
biggest challenge is dust and most of the investment was spent on
equipment that mitigates dustiness, including two new Kone ship
unloaders, as the existing ones were too abrasive; an elutriator, or
particle separator; and a dedicated pipeline which pneumatically
conveys dust to the furnace.
Due to the lower calorifc content and bulk
density of biomass versus coal, generation
capacity is reduced by around 30%
While coal is typically stored outdoors in huge heaps, biomass
needs to be kept dry. Unlike Drax and other biomass co-fring coal
plants, there is no virtually no biomass stored onsite at Tilbury.
Instead the wood pellets arrive on a vessel and are unloaded and
burned during the course of a week. Once the ships payload is
empty and it departs, another vessel arrives within hours and the
process starts again.
Dyson explains: We store only enough onsite to see through
the few hours where there is no ship on the jetty, around six hours
margin, so we have to have a slick, just-in-time shipping turnaround.
I suspect the fuel handling team will have signifcantly less hair by
April 2013!
IMPACT ON EFFICIENCY AND EMISSIONS
Due to the lower calorifc content and bulk density of biomass versus
coal, Tilburys generation capacity is reduced by around 30% to
742 MW, which in turn reduces the thermal effciency of the plant to
35.3% from 37%.
Physical changes to the combustion system are more tweaks
than transformation; small modifcations have been made to the fuel
mills, feeders and burners. When biomass is put through the grinder,
it splinters and chips, not breaking down into a fne dust like coal.
Combined with the lower calorifc value, this causes the burners to
respond differently.
Therefore, the plants low NOx
burners have been modifed to
ensure a more stable fame and to minimise the required amount of
support fuel, tall oil. This is achieved by creating a fuel mixing zone
(and therefore a fame) nearer to the front of the burner.
Corrosion is also a challenge for biomass conversions. The high
chlorine content will corrode and diminish the existing boiler fuel
pipes. As operation is limited to 8000 hours, however, this is not
expected to present a major problem.
Based on the results of the biomass trial in September
2010, Dyson expects NO
x
emissions to fall from 480 mg/m
3
to
220 mg/m
3
, SO
x
to fall from 800 mg/m
3
to 200 mg/m
3
, and
the volume of ash produced from 40,000 tonnes/TWh to
4000 tonnes/TWh. Lifecycle carbon dioxide emissions are predicted
fall from 0.81 million tonnes/TWh to 0.110.18 million tonnes/TWh,
a 78%87% reduction.
TILBURY & BIOMASS A ONE-OFF?
As things stand, Tilbury B will close once the 8000 hours have been
used up. In July 2010, RWE npower submitted an environmental
assessment scoping report to the UK Infrastructure Planning
Commission for Tilbury C, a proposed 2000 MW combined cycle
gas turbine and 400 MW open cycle gas turbine plant. This replaced
RWEs previous proposal to build a 1600 MW supercritical coal plant
with carbon capture and storage (CCS).
RWE, however, is also considering the possibility of re-permitting
and re-consenting Tilbury B to enable it to continue to operate as
a dedicated biomass plant beyond the LCPD limit. Phase II would
be a completely different proposition and we wont make a decision
until well into the second quarter of 2012, explains Dyson.
It would require a vast upgrade to meet more stringent NOx
and
SO
x
emissions standards and we still have to work out if biomass is
commercially viable with just one ROC. Phase II totally depends on
plant and environmental performance of Phase I.
Dyson says the critical aspect of whether other coal plants in
the UK and elsewhere can convert to biomass is fuel supply. In
theory there is no technical reason why other coal plants couldnt
replicate Tilbury but whether they could be as much of a commercial
BIOENERGY: CONVERTING FROM COAL
RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 39
Biomass is more expensive than coal and trying to get enough of
it to an inland power station is a challenge. Most European plants
will have the same problem. DRAX
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BIOENERGY: CONVERTING FROM COAL
40 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
Drax currently co-fres up to 8% biomass, burning approximately 1.2 million tonnes in 2011, mostly wood chips, straw pellets, oat
and sunfower seed husks. DRAX
success is doubtful. The big question concerns fuel supply logistics.
Biomass is more expensive than coal and trying to get enough of it
to an inland power station is a challenge. Most European plants will
have the same problem.
SOURCING FUEL: THE CENTRAL ISSUE
Around 30% of Tilbury Bs biomass is sourced from RWEs own
750,000 tonnes/year wood pelletisation plant in the US city of
Waycross, Georgia; a further 50% will come from the US and
Canada. The remaining 20% comes from Europe, either the Baltic
States or southern Europe. All fuel is debarked softwood pellets.
Dyson believes it is unlikely RWE will develop a similar biomass
facility in the UK. Sustainability is an issue in Europe. It doesnt have
the same scale as the US. If we could source biomass sustainably
in the UK we would do so, but there are no obvious opportunities to
develop that at present.
According to consultancy frm McKinsey, however, there should
be no shortage of sustainable biomass. In a 2010 report, Sustainable
Bioenergy, McKinsey concluded there is enough land available for
biomass to exceed currently mandated consumption levels by a
factor of two by 2020, even after all other needs were met, i.e. food
and feed crops; domestic frewood; projected demand from the
forest products industry; no deforestation; and only environmentally
sustainable use of virgin land.
Furthermore, the market is responding to greater demand
for biomass. In November 2011, the Dutch energy exchange
APX-ENDEX launched the worlds frst biomass exchange. At
present the Amsterdam-based exchange trades only non-cleared
products where the physical settlement is arranged bilaterally
by the counterparties, but later this year it will offer clearing
services for wood pellet contracts, providing fnancial security to
market participants.
The exchange has been developed in co-operation with the Port
of Rotterdam, which is expecting a boom in biomass handling due to
the Dutch governments Energy Report 2011 that will make biomass
co-fring at coal plants mandatory. According to Koen Overtoom,
commercial director of the Port of Amsterdam, the Netherlands,
Germany, Scandinavia and the UK will require 15 million tonnes
per year of biomass by 2020. Of that fgure, Dutch ports will handle
13.5 million tonnes, up from 1.5 million tonnes at present, with the
Port of Amsterdam alone accounting for 6 million tonnes.
DRAX A TOTALLY DIFFERENT CONVERSION PROPOSITION
At 3960 MW, Drax is the second largest power plant in Europe.
Unlike Tilbury, Drax complied with the LCPD, thus allowing it
to run without restriction. In 2016, however, another European
regulation, the Industrial Emissions Directive (IED), will force coal
plants to install selective catalytic reduction (SCR), which removes
NOx
from fue gases.
The cost of IED compliance for each of the plants six 660 MW
coal units would probably run to hundreds of millions of pounds.
Throw in the UK Treasurys carbon foor price and full auctioning
of Phase III European Union Emissions Trading Scheme (EU ETS)
carbon permits and one can see why Draxs production director
Peter Emery is considering other fuel options.
Drax currently co-fres up to 8% biomass, burning approximately
1.2 million tonnes in 2011, mostly wood chips, straw pellets, oat
and sunfower seed husks, and it is now considering converting the
entire plant to biomass. When it became clear that UK government
policy was not just pricing carbon into power production via the EU
ETS but also the carbon foor price, we felt we had to do something
radical, says Emery.
If we cant compete in a world post-2016 with a very high carbon
price we would opt out of the IED. Plants like Tilbury which opted out
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of the LCPD may just close rather than convert to biomass. Plants
that opted in may fnd that the economics stack up. So biomass will
enable us to be competitive and enable us to develop the business.
Drax is converting one of its 660 MW units to biomass. If it was to
convert fully, says Emery, the capacity of each unit would be reduced
to around 500 MW, each burning 2.53 million tonnes per year.
Sourcing this volume of biomass would be a major challenge:
Drax is unable to source enough biomass at the right price in order
to co-fre the permitted 12.5% limit, let alone a 100% conversion.
The biomass market isnt there, and sourcing it is not as simple
as having a group of traders with telephones, Emery explains. Were
having to negotiate deals to build pellet plants and set up shipping
contracts, or encourage British farmers to grow miscanthus, willow
or eucalyptus. Could we get hold of 1518 million tonnes of biomass
tomorrow? Yes. But biomass that has been harvested, pelleted and
processed for power plants? Clearly not. Our challenge is to develop
the supply chain, which may take 2030 years.
Drax wants the UK government to think again about reducing
the number of ROCs allocated to biomass conversions. Theres a
massive potential for biomass to be industrialised in Britain and the
ROCs would help us to develop the infrastructure. If the government
commits to a frm biomass policy over the next 1520 years, the rest
will follow.
CONVERSION = ADDICTION TO SUBSIDY?
Based on 2010 generation of 26.4 TWh at an average power price of
51.60/MWh ($80.33) and burning 15 million tonnes of biomass at
80100/tonne ($124$156), Drax could expect revenues
(including one ROC) to comfortably outstrip the higher fuel costs by
hundreds of millions, even with the anticipated 25% drop in output.
Add in exemptions from the EU ETS and the carbon foor price, and
biomass conversion looks attractive.
But converting to 100% biomass would mean Drax is reliant on
subsidy to be commercially viable. Is it fair to ask British taxpayers
to keep Drax alive this way? This is about starting a brand new
industry, says Emery. The idea is not to generate super profts
versus coal, but to give an adequate return on investment for burning
biomass. The government has got renewables targets to hit, it wants
to reduce CO2
, and the beauty of co-fring and unit conversion is that
its cheap. Its broadly half the cost of offshore wind and broadly in
parity with onshore wind, but biomass is also fully dispatchable. The
taxpayer would think thats very fair.
Is Drax doomed without biomass? We are not doomed, but the
direction of government policy means that coal-fred generation in its
current guise is doomed. Biomass gives us a route to market with
cost-effective low-carbon generation.
As REW goes to press, German utility E.ON has announced
that it plans to convert one of two 500 MW units at its coal-fred
Ironbridge power plant in the UK to biomass, with the option to
convert the second unit at a later date. The utility has applied for
planning permission to build a fuel store on-site. The plant chose to
opt out of the LCPD, and will open in 2013.
Tim Probert is a freelance journalist focusing on the energy
sector.
e-mail: [email protected]
This article is available on line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
BIOENERGY: CONVERTING FROM COAL
42 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
Tilburys jetty on the river Thames, which can accommodate Panamax class vessels of up to 60,000 tonnes, saves an estimated
30 million ($47 million) per year in rail freight costs. RWE NPOWER
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44 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
POLICY & MARKETS: SOLAR THERMAL PROCESS HEAT
SOLAR PROCESS
HEAT FOR EUROPE
Solar thermal systems have enormous potential to be used in industry. About 30% of total industrial
heat demand is at temperature levels below 100C, which can be provided with commercially available
solar thermal collectors. However, the global and European markets are very much in their infancy; only
a few hundred installations currently exist. Christiane Egger and Christine hlinger discuss the
SO-PRO project, which aims to tackle these barriers and to trigger the startup of markets for solar
process heat in six European regions.
DEVELOPING THE MARKET
Upper Austria is one of the leading solar thermal regions in
the world, with 0.8 m of solar thermal installed per capita.
Upper Austria has committed to installing 3 million m of
solar thermal by 2030, which will equate to 2.2 m per capita.
SO-PRO
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 45
POLICY & MARKETS: SOLAR THERMAL PROCESS HEAT
U
sing solar thermal process heat in European industrial processes
presents manifold benefts. It will support companies in long-
term cost stability of their hot water provision and thereby contribute
to their competitiveness; it will open up a new business feld for
the renewable energy industry and thereby promote business
development and green jobs; and it will contribute to the energy,
climate and environmental goals of the EU, its Member States, its
regions and cities.
However, in order to realise this potential and to deliver these
benefts, signifcant existing market barriers for solar process
heat must be overcome. One problem is the economic viability of
solar process heat installations, which is often due among other
reasons to very low prices for fossil fuels in industry and the
short payback periods for investments expected in many industrial
companies. Also, in an early phase of market development, costs
for planning and setup tend to be high due to the lack of experience
of the companies involved.
Then there is the no interest no know-how no market
problem. There is a great lack of information across the value chain
because, frstly, solar companies often lack an understanding of
the complexity of industrial processes and system integration as
well as the skills for successful marketing to industrial companies.
Secondly, specialists in industrial energy systems generally
know very little about solar thermal technologies. They tend to
overestimate the costs and to underestimate the energy production,
and therefore have no experience in system integration. Also,
management in industrial companies is not aware of the possibility
of using solar thermal for industrial processes and therefore does not
ask planners to include this option in their offers. And there is a lack
of standardised solutions and communication among these groups:
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__________
POLICY & MARKETS: SOLAR THERMAL PROCESS HEAT
policymakers at European, national and regional levels are generally
not aware of solar process heat.
The project Solar Process Heat SO-PRO aimed to tackle
these barriers and to trigger the startup of markets for solar process
heat in six European regions, most of which feature colder climates
(Upper Austria, the regions of Castillas y Madrid in Spain, South
Bohemia in the Czech Republic, North-Rhine Westphalia and
Saxony in Germany and the Maribor region in Slovenia). The project
was supported by the Intelligent Energy Europe programme and
co-ordinated by O.. Energiesparverband, the energy agency of
Upper Austria.
PROMISING APPLICATIONS
SO-PRO focused its activities on low-temperature industrial
processes which are suitable to be supplied by solar thermal
collectors. Promising processes include cleaning and washing,
heating of baths and vessels, and drying as well as heating of
make-up water for steam networks. These processes are used
very frequently in a wide range of industries. Special attention
was paid to continuous open processes with no mass or heat
recovery, since they can have a high potential for the integration of
solar thermal.
For the economic viability of solar process heat, the load profle
of the process is crucial. Heat demand should occur on at least
fve days of the week and also during the summer months. Other
important factors for solar heat integration include the available
temperature levels in the plant as well as the process temperature
itself, often economically best if below 50C. Solar thermal energy
can be directly integrated into the processes or into the heat
distribution network.
Within the SO-PRO project, self-assessment checklists were
developed which would allow decision-makers in industry to make
a preliminary analysis of whether solar thermal could be suitable
for their processes. The checklists were split into two steps. The
K.O. criteria included the questions: Does the company need
process heat below 100? Is space available to install solar thermal
collectors at the company site? Is this space oriented towards
south/south-east/south-west or on a fat roof? Does the company
use fossil fuels for process heat during summer months? If any
of the K.O questions are answered with no, it is rather unlikely
that solar process heat will be economically feasible in most
European climates.
The O.K. criteria included the questions: Is process heat
required from March to September? At least during fve days per
week? Are there plans for reconstruction/expansion at the site
during the coming years? Is heat recovery from other processes
technically or economically impossible? Is a payback period of more
than fve years for energy investments acceptable? Is there a general
interest in the use of renewable energy sources?
Additionally, a design guide on integrating solar thermal into
industrial processes was developed by Fraunhofer ISE and adapted
by the partners to their regional contexts. The design guide includes
load profles, nomograms and system concepts for the four
applications (heating of hot water for washing or cleaning; heating
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POLICY & MARKETS: SOLAR THERMAL PROCESS HEAT
RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 47
EUROPEAN EXAMPLES
Montesano: Iberic products in Spain
Montesano specialises in meat products and is well-known for its Iberic ham.
As in many food industries, the production process requires large amounts of
warm water for cleaning and washing processes. A solar thermal system of
252 m was installed in Jerez de los Caballeros, with two 15,000 litre buffer storages.
The investment costs were 175,000, with a payback time of about seven years.
SOVEN: Sheep wool processing in Slovenia
SOVEN is a sheep wool processing company in Selnica ob Dravi. Its hot water demand
is mostly for washing, sanitising and colouring processes, which require temperatures
of 4045C. A solar thermal system with 7 m was installed. Investment costs were
about 5500. The annual solar fraction is calculated to be 70%.
Hustert Galvanik: Electroplating in Germany
Hustert Galvanik in Rahden specialises in surface treatment and electroplating
(galvanising). A solar thermal installation with 221 m (vacuum tubes) was installed,
supporting the heating process for the industrial baths which require 80C.
The solar fraction is expected to be about 40%. Total investment costs were
about 160,000.
Asamer: Concrete plant in Upper Austria
Asamer operates a gravel and concrete plant. As part of a comprehensive renovation
which also included a thermal retroftting of the offce building a heat distribution
grid supplied by biomass and a solar thermal system (167 m of fat plate collectors)
and two buffer storage tanks were installed. During the summer months the solar
installation is calculated to cover all heat needs at the company site.
of make-up water for steam networks; bath
or vessel heating; and convective drying
with hot air).
MARKET OUTLOOK
In principle, the market outlook for solar
process heat is rather positive. Especially
in well-developed solar thermal markets in
Europe, noticeable market development
could take place in the coming years.
However, a faster market uptake needs
dedicated programmes and concerted
efforts by market actors to tackle the
economic barriers as well as information
gaps across the value chain.
Promising approaches to starting market
development could include solar thermal
action plans with concrete measures for
solar process heat; support to R & D as well
as demonstration programmes (for example,
the frst 100, the frst 1000 installations);
fnancial support, either through subsidies
or tax incentives; promotional measures
to make solar process heat better known
among decision-makers in industry; building
up skills in the relevant products and service
provider companies and monitoring of
systems and quality assurance.
In technical and practical terms, solar
process heat is more often linked to
energy effciency measures in an industrial
process than to the generation of renewable
electricity. Therefore, policy support and
promotional activities should also be taken
in connection with measures for energy
effciency in industry.
Christiane Egger is deputy manager
and Christine hlinger is head
of sector, international tasks at
O.. Energiesparverband.
e-mail: [email protected]
For information on the SO-PRO project,
visit: www.solar-process-heat.eu
This article is available on line. To
comment on it or forward it to a colleague,
visit: www.RenewableEnergyWorld.com
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 49
HIGH-TECH
TRANSPORT
WIND: OFFSHORE TRANSPORT & LOGISTICS
Manufacturers, developers and the rest of the offshore wind supply chain are working fat out
to use the latest logistics technology in transporting turbines to Europes massive offshore
wind resource safely, swiftly and at the lowest possible cost. James Lawson explores
what companies are doing.
MOVING TURBINES OFFSHORE
The pressure to lower the overall cost of wind power means
that where turbines are built and how they move between
factory, base port and feld are more critical than ever.
SCHEURLE
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WIND: OFFSHORE TRANSPORT & LOGISTICS
50 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
W
ind turbines are awkward creatures. Their heavy towers
and nacelles, and long, fragile blades do not ft easily with
conventional transportation methods. Its technically possible to
move anything from A to B, but transport then becomes a signifcant
part of the overall expense. The pressure to lower the overall cost of
wind power means that where turbines are built and how they move
between factory, base port and feld are more critical than ever.
With their huge size, the latest generation of 67 MW turbines
only increases the challenge. To address this, manufacturers and
developers are evolving tested technologies and innovating with
new machinery, techniques and processes.
Turbines can travel in sections blades, hub, nacelle, tower
and generator so keeping the weight of each load to a minimum.
Blades are the most problematic component, and transportation is
a fundamental part of their design. This means building in lifting and
clamping points that will withstand the movement from horizontal to
vertical or the loadings incurred when a ship is at maximum tilt in a
storm. Racks and carriers specifc to each blade model must handle
these forces without damaging the blade.
In road transport, manufacturers have long worked closely with
specialist manufacturers to make sure that there will be trailers
available to ft the components of their latest turbines. Tower
sections can be moved using special wheeled dollies bolted to
each end. These are usually specifc to each tower type, though
French company Nicolass telescopic adapter technology can
transport both towers and nacelles by changing the clamps used.
Every tower is different, says David Collett, managing director
of Collett and Sons. The frst trailers we bought became obsolete
within two or three years and we have invested millions since then.
Blades require extendable trailers with steerable axles,
helping them negotiate tight turns. Collett provides a swept path
GIS-based service that analyses exactly the route a component
will travel. This means a developer will know which items of road
furniture to remove, and also where a large component cannot
pass at all. The larger the blade, the more obstacles, says Collett.
Not all software works so well. We have turned up to fnd access
roads built in the wrong place.
Coping with extreme challenges like Alpine hairpin bends
has led to ingenious solutions. Scheuerles trailer-mounted blade
adapter grips the root of the blade and, using hydraulic power, can
lift it to an angle of 23, lower it and turn it left or right. This means
the blade can foat over supporting walls, trees, buildings or other
obstacles. In addition, it can be turned on its own longitudinal axis
to reduce wind loading.
In America, Vestas employs custom railway wagons to ship its
blades including the 55-metre blades of the V112 from its factory
in Windsor, Colorado to the nearest port in Houston. Clamping the
blade root to one wagon while the tip freely overhangs another
means the train can safely negotiate the bends on the line.
The trend toward much larger rotor diameters in the latest
generation of high output turbines challenges both logistics and
turbine design. The square-cube rule dictates that energy output
increases with the square of the rotor diameter, but loads increase
with the cube. Though manufacturers are using new materials and
structural designs to limit the increase in top head and tower mass,
the new turbines generally have larger and heavier components to
handle the higher bending moments and other loads.
With its rotor diameter of 126 metres, REpowers 5/6M series
is the largest currently operating offshore. Those in development
are even bigger. For example, the rotor of Nordexs proposed
N150/6000 will measure 150 metres, while Vestas 7 MW V164 will
have 80 metre long blades; both comfortably exceed the London
Eyes 135 metre diameter.
To move the huge 63 metre blades of its 7.5 MW E-126 turbine
by road, Enercon came up with a simple solution. They simply fold
them in half. No part is longer than an E-82 blade, says Henri
Joppier, Enercons head of UK sales. We deliver the nacelle in
sections and its very easy to commission on-site. Its a matter of
design, at the end of the day.
Enercon is the only manufacturer to do this, and even the
cleverest trailers are reaching their limits with the largest one-piece
blades. Blades for the latest 6 MW turbines cannot practically travel
by road, says Collett.
So, with proximity to a deepwater port required to transport
the latest turbines, on-site manufacturing is the rational way to
reduce both logistical complexity and cost. Ideally, turbine and
foundation manufacturers would load out from their back door
onto the deployment vessel, but a central location for shipping to
the main development sites is the next best option. Currently, sea
freight is exempt from carbon tax and, though shipping costs (and
congestion) rose up to 2008, they have since stabilised. If and when
either of these factors changes, moving manufacturing closer to the
deployment site will be even more attractive.
We are trying to drive down the cost of offshore wind so we need
to locate where we manufacture the various components carefully,
says Rob Sauven, managing director of Vestas Technology UK. You
want to move an 80 metre blade as few times as possible. Every
time you handle it, the cost goes up.
REpowers Bremerhaven factory is ideally located for felds
like RWEs Nordsee Ost. With the developers operations base
just around the corner at Bremerhaven container port, the
48 6M turbines REpower is supplying for the project will have a very
short journey.
The proposed UK factories for Siemens in Hull and Vestas in
Sheerness also promise cost-effective, on-site manufacturing: both
have excellent access to the UKs east coast where hundreds of
turbines will be installed in the coming years.
Sheerness is appealing for many reasons: access to deepwater
docks is one of them and a huge load-out space around the size of
New wind turbine installation vessels (WTIVs) have far more deck
space with extra fexibility to cater for different projects, and can
jack their heavier payloads in deeper water. RWE
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 51
70 football felds is another. V164 blade manufacturing and nacelle
assembly is planned here, though this still depends on a frm order
pipeline from developers.
Logic says build it directly on the quayside, says Anders Se-
Jensen, president of Vestas Offshore. Getting the components in is
not a problem but getting them out is, so you want to build it in the
port from where its going to be loaded out.
Though green technology is creeping into marine engineering
with the likes of Damen Shipyards ASD 3212 diesel-electric-
propelled Green Tug, transhipment between factory and project
base relies almost exclusively on conventional vessels. Notable
exceptions are Vestas two custom-built Bladerunner boats
which move blades from the companys R&D facility on the Isle
of Wight to Southampton port for transhipment, and Enercons
E-Ship 1 which, fttingly, harnesses wind power to help transport
wind turbine components.
E-Ship 1 has four 27 metre-high Flettner rotors mounted on
its deck. These are spun up using excess energy derived from the
diesel engines exhaust gas, so making use of the force a spinning
body in a moving airstream produces (the Magnus Effect) to help
drive the ship. The same force is what causes the curved motion
of a spinning football or cricket ball. This extra power reduces fuel
consumption by up to 40%, and the ships adjustable cargo bay also
lets it load many more wind turbine components than a conventional
cargo vessel of the same size.
Transhipment also brings its own quayside challenges. For very
heavy items such as nacelles, built-up towers and jackets, Collett
uses self-propelled modular transporters (SPMTs) that have been
used for many years in sectors like oil and gas, and petrochemicals.
Moving blades up to 60 metres and nacelles between 200 and
400 tonnes is completely possible, but thats strictly between the
quayside and the storage area, says Collett. You work out the
number of axles you need and bolt them together.
Offshore installation as a proportion of total
CAPEX is predicted to fall from 23% to 18%
by 2020, spurred by innovative technology
Netherlands-based transportation specialist Wagenborg used
SPMTs in various confgurations to load out the REpower nacelles
and rotors for the Alpha Ventus feld last year. 20-axle lines of
Scheuerle SPMTs transported complete rotors with diameters of
between 116 and 118 metres, and weighing nearly 150 tonnes
each, while the vast tripod foundations required a set of 22+8 axle
SPMTs under each leg. To add to the challenge, the rotors had to
slide right out over the dockside before the barge cranes were able
to pick up the load.
The trip to the feld is the next leg of the offshore turbine journey.
Increased effciency and lower costs are again the goal: offshore
installation as a proportion of total CAPEX is predicted to fall from
23% to 18% by 2020, and innovative technology is paving the way.
For example, the GBF consortiums gravity base foundation
is deployed via a purpose-built barge. By adding or subtracting
ballast, the barge can be sunk and raised in order to load a turbine,
WAsP Engineering 3
Prediction of wind conditions
for turbine safety
Main features:
Extreme wind speeds
Turbulence statistics
Wind profiles
Wind shear
Flow inclination angle
Fast linear flow model
Spatial and transect views
Turbulence simulation
Visual Basic scripting
IEC 61400-1
site assessment with
Windfarm Assessment
Tool (requires WAsP 10)
DTU Wind Energy (formerly Ris DTU) Roskilde Denmark Tel +45 46 77 59 43 [email protected]
New in version 3: Revised extreme-wind model Spatial views in Google Earth Revised obstacle
model New WAT launcher Flow model set up directly from grid maps Work with larger model domain
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52 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
tow it to sea, sink it in position and then refoat in order to pick up
the next one.
Suction bucket footings are also quick and cheap to install in
soft seabed conditions. Mercon and ALEs new EMI technology
uses a standard barge equipped with a tilting frame in order to install
monopiles or met masts with a multiple suction-bucket footing.
Driving down deployment costs also means fnding the most
effcient process for each offshore project for example, whether to
assemble the whole rotor onshore or to ship the blades and hubs
individually and assemble them on-site. Lifting whole rotors means
fewer offshore lifts and can be done in rougher weather, but racks of
blades can be loaded more quickly at the quayside.
You want the lowest cost solution for that particular set of
components for that weather window, explains Sauven. Water
depth, time of year, distance from port: each changes the equation
and you need the fexibility to optimise for each site.
Another choice is whether to ship turbine components out in
smaller boats, giving better utilisation of the expensive on-site
installation vessel. Specialist wind turbine installation vessels (WTIVs)
can carry and install turbines and foundations themselves, but
will be off-site when restocking back at the base port. With more
demanding far offshore projects looming, the mono-vessel concept
is gaining the upper hand.
The available feet of vessels require tugs and are much slower
than the next generation new-builds, so there is no sense in using
them to collect the components, says Katie Faulkner, A2Seas sales
support manager. Because Sea Installer has a larger capacity and
is self-propelled, she will be able to cut out the middle man, and
collect the components directly from the production line, take them
straight out to the site and carry out the installation.
The jack-ups currently used for turbine installation were mostly
built for the oil and gas industry and adapted for wind, while the new
WTIVs are bigger and more capable in every way, even compared to
frst generation installers like the MPI Discovery.
These are absolute beasts in comparison to previous vessels,
says Max Paterson, sales and marketing coordinator at Seajacks,
whose own WTIV will arrive this year. Existing boats have blade
racks overhanging the front, but Zaratan can stack them across the
back of the deck.
Todays foundations can weigh over 700 tonnes, with nacelles
tipping the scales at over 350 tonnes and towers in excess of
260 tonnes. Cranes must have the reach and radius to install these
at more than 100 metres above sea level. Crane loads are going up
from 300600 tonnes to 8001200 tonnes or more, and employ a
wrap around the leg design for optimum deck access.
New WTIVs have far more deck space with extra fexibility to
cater for different projects, and can jack their heavier payloads in
deeper water. DP2 capability comes as standard, transit speeds are
higher, and accommodation allows for extra installation workers: all
attributes intended to support far offshore deployment.
At Thornton Bank, we were taking out one turbine per cycle,
says Richard Hatton, head of UK offshore sales at REpower. This
year we were taking out two sets. The new vessels will be able to
take six or seven sets per cycle.
RWE considers this area so important that it built its own boats
and founded a dedicated company to manage all aspects of offshore
Blades are the most problematic component of offshore wind turbines, and transportation is a fundamental part of their design.
SCHEURLE
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 53
On to the next
HUSUM WindEnergy!
18 22 September 2012
in Husum of course.
www.husumwindenergy.com
A co-operation between
MESSE HUSUM & CONGRESS
Book now for HUSUM 2014:
23 26 September
logistics. Its two SeaBreeze class vessels are now working on the
Nordsee Ost and Gwynt y Mr felds respectively. Contrary to fears
of a shortage in only two or three years, there are now numerous
WTIVs appearing on the market.
Since we launched our plans, a lot of companies are building
vessels. Every one is different, and in the next few years we will see
which one is best, says a spokesman for RWE Innogy.
Swire Blue Oceans Pacifc Orca exemplifes the new generation.
It will have a 1200 tonne crane, a transit speed of 13 knots and
accommodation for 111 people. With a deck area in excess of
4000 m
2
and an 8400 tonne jackable weight, it will operate in up to
75 metres of water.
Fred. Olsen Windcarriers two boats, Brave Tern and Bold Tern,
will be delivered in the second half of this year. They are built to cope
with a 10 MW turbine and a 470 tonne hub weight, says commercial
manager Carl Erik Gurrik.
GeoSeas Neptune will shortly start work on Thornton Bank
while other new vessels due this year include Workfoxs Seafox 5,
MPIs Adventure and Discovery, another WTIV from Van Oord, and
HGO InfraSea Solutions Innovation. The latter is the biggest yet,
with a 1500 tonne crane and an 8000 tonne payload.
Deep water is the new frontier for turbine deployment. Going
beyond 45 metres makes jacking impossible for almost all current
vessels, and foating WTIVs would be the likely solution.
Dynamic stabilisation is an important technology here (and in
all lifts involving foating vessels), reducing roll and so the dynamic
crane loading, thus permitting relatively heavier lifts. Manufacturers
like Liebherr are also working to improve the heave compensation
systems already built into many marine cranes. We lifted turbine
components from foating vessels on the Beatrice Demonstrator in
45 metres of water, says Hatton. Its faster because theres no need
to jack but it cuts down on the weather window. Better dynamic
stabilisation is coming but its still a long way from being proven.
Designers are now pushing vessel capability even further. For
example, W3G Marine Ltds OWTIS (offshore wind turbine installation
ship) concept offers a 1500 tonne crane. Gaohs twin-hull offshore
installation shuttle would carry two complete turbines or foundations
on a high gantry. Employing a combination of dynamic positioning
along with both vessel and hoisting compensation systems would
give it a claimed 80% operational window in the North Sea.
Offshore wind development is often compared with the early
days of North Sea oil exploration. Here, the comparison has real
resonance. Manufacturers, developers and the rest of the supply
chain are working fat out to use the latest logistics technology to
access Europes massive offshore wind resource safely, swiftly and
at the lowest possible cost.
James Lawson is a freelance journalist focusing on the energy
sector.
e-mail: [email protected]
This article is available on line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
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54 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
China not immune to
solar market shocks
W
ith the solar bubble apparently bursting around the industrys
ears in late 2011, as 2012 opens its doors for business much
attention has been focused on the sector. The markets are certainly
wise to be cautious given the impact of the downturn, regulatory
instability and an increasingly price-competitive and oversupplied
market. Indeed, it is clear that no-one in the solar sector has
escaped unscathed. For while there are those who would like to
lay the blame for the current squeeze on Chinas doorstep, even
some Chinese majors have suffered a noticeable dip. Take Trina
Solar, which announced its Q3 fgures late last year. It reported that
solar module shipments were approximately 370 MW for the third
quarter of 2011, representing a decrease of 6.6% sequentially with
396.4 MW in the second quarter of 2011, though an increase of
27.4% year-on-year compared with 2010 Q3 of 290.5 MW. The
decrease was primarily due to a reduction in available fnancing
for some European projects and an increased customer credit risk
management strategy, Trina says.
More signifcantly, net revenues were US$481.9 million, a
decrease of 16.8% sequentially and 5.2% below the equivalent
quarter of 2010, despite the signifcant increase in shipments.
Losses from operations were $23.5 million, compared to a
positive income of $32.8 million in the second quarter of 2011 and
$113.0 million in the third quarter of 2010.
During the third quarter of 2011, the company announced
supply agreements with Huanghe Hydropower Development Co.,
Ltd, a subsidiary of China Power Investment Corporation, for two
ground-mounted solar projects in Qinghai, China for a total of
30 MW. It also signed a strategic partnership agreement with Origin
Energy Australia to supply approximately 22 MW of PV modules.
Commenting on the fgures, Jifan Gao, Trinas chairman and
CEO, said: To best position Trina Solar going forward, we are refning
our marketing and product strategies to address larger and more
diversifed distribution channels, in both established and emerging
solar markets. These include growing the US residential leasing
channel, where we recently signed a 60 MW supply agreement in
the fourth quarter.
Looking forward, for the fourth quarter of 2011, Trina says it
expects to ship between 320 MW-350 MW of modules. Based on
this assessment it has revised its outlook for the full year 2011 PV
module shipment down to approximately 1.4 GW, compared with
previous guidance of 1.75 GW-1.8 GW.
Similarly, in its latest fgures Suntech Power Holdings Co.,
Ltd, the worlds largest producer of solar panels, showed total net
revenues of $809.8 million in the third quarter of 2011, compared
with $830.7 million a decrease of 2.5% on the previous quarter,
and an increase of 8.9% year-on-year with $743.7 million in the third
quarter of 2010. Suntechs total PV shipments also increased, in this
case approximately 16% sequentially, and 36% year-on-year with
1.6 GW of silicon ingot and wafer capacity and 2.4 GW of cell and
module capacity as of the end of Q3 2011.
The sequential decrease in revenues was primarily due to a
decline in the average selling price of PV products, partially offset by
an increase of shipments, Suntech says.
Loss from operations in the third quarter of 2011 was
$16.0 million and operating margin was -2%, compared to losses
from operations of $170.3 million and operating margin of -20.5% in
the second quarter of 2011. These fgures compare with an income
of $62.6 million and an operating margin of 8.4% in Q3 2010.
Dr Zhengrong Shi, Suntechs chairman and CEO, said: Looking
forward, we expect excess capacity to fuel strong competition
and consolidation in the next two to three quarters. This will be
challenging for all solar companies. The company plans to meet
these challenges by reducing operating expenses by 20% in 2012
and holding off on planned capacity expansion this year.
The markets are wise to be cautious, as
it is clear that no-one in the solar sector
has escaped the downturn unscathed
Yingli Green Energy Holding Company Ltd also announced
its Q3 results, saying that PV module shipments in fact increased
by 21.9% from the second quarter of 2011, reaching a new
high. But although total net revenues were RMB4258.6 million
($667.7 million) and gross proft was RMB458.5 million
($71.9 million), operating loss was RMB 5.5 million ($0.9 million), an
operating margin of -0.1%. Based on current market and operating
conditions, estimated production capacity and forecasted customer
demand, the company has revised its PV module shipment target
downwards to an estimated range of 1580 MW1630 MW from the
previous range of 1700 MW1750 MW for fscal year 2011.
Putting this into a European context, we see Q-Cells Q3 fgures
showing revenues of 228.8 million, compared with 316 million in
Q2, and a revenue target of 1 billion confrmed for FY2011. Q-Cells
says it expects that the implementation of several major utility
projects in the fourth quarter will produce revenues of a level similar
to Q2. In the third quarter, the operating result was again negative,
standing at -47.3 million.
Like Yingli, Schott Solar AG, the parent company of Schott Solar
PV, Inc, also reported an increase in module sales. For its fscal
year, ending September 30, 2011, that percentage of growth was in
the double digits, despite a rather diffcult market environment, the
company says.
Schott said it will be discontinuing its wafer manufacturing
activities at its site in Jena, also in Germany, with 290 employees
affected. Overcapacities and severe declines in prices, particularly
with wafers and cells, have been the dominating factors. They
lowered their prices for modules once again by more than 40% just
like they did in 2009, a statement from the company says.
David Appleyard
Company Results
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 57
While the solar PV industry has made tremendous strides in the Canadian market
in the past year, there is still signifcant work to be done and each province faces
different challenges. Jared Donald argues for the development of a national solar
energy policy.
MOVING SOLAR FORWARD
FEDERAL-LEVEL INCENTIVES ARE NEEDED
T
he solar industry has worked diligently over the last year to inform
and educate the Canadian public and the federal government on
the environmental and economic benefts of solar energy. As part of
these efforts, representatives and members from the Canadian Solar
Industries Association (CanSIA) met with the Department of Finance
and Natural Resources to discuss a national incentive structure.
In addition, CanSIA representatives stood as witnesses before
the Senate Standing Committee on Energy and the Environment,
presenting the benefts of solar PV for Canadians. These efforts
were instrumental in garnering recommendations for the furthering
of solar technology on a national level in the most recent Report
of the Standing Committee on Finance. While the industry has
made tremendous strides in the Canadian market in the past year,
there is still signifcant work to be done and each province faces
different challenges.
Without a national incentive structure, some provincial
governments have developed policy infrastructures to support the
deployment of solar within their respective provinces. In Ontario, the
implementation of the feed-in tariff (FiT) and microFiT programmes
has increased employment and brought in local manufacturing.
Ontarios solar industry supports approximately 8200 full-time jobs
and more than 30 PV module and inverter manufacturing facilities.
Through the FiT programmes frst two years it faced a number of
implementation challenges, mostly due to a lack of visibility and
an inability of contract offers to keep pace with applications. The
government has recently halted the programme while it reviews
how FiTs should be administered in 2012 and beyond. Through
this review Ontario requested that CanSIA, as the trusted voice in
the solar industry, provide feedback outlining how the programme
can be improved. CanSIA members developed very specifc and
practical recommendations for presentation to the government.
I believe that these actionable recommendations and the many
in-person consultations between industry proponents and Provincial
government representatives will signifcantly improve the design of
the FiT programme for longer-term sustainability. One of the main
improvements we hope to see in the new FiT programme is greater
transparency, which will help all members of the value chain.
While Ontarios solar incentive policies are far ahead of those of
other provinces, the aforementioned FiT review process is having a
detrimental impact on its industry. Most installers and manufacturers
are in a holding pattern until the new rules are determined and
released, causing layoffs across the industry and requiring solar
professionals to either take extended vacations or search for new
employment outside the industry. The work being done at the
government and regulatory level appears to be occurring in a manner
that will allow the development of a more sustainable FiT programme,
but until the policy framework is resolved the industry will remain in a
very challenging state of fux.
Each province is at a different state in terms of solar energy
implementation and each has very different goals, infuenced by
politics, economics and other considerations. Without a nationally
administered solar energy directive, each province will continue
to develop and administer its own policies in accordance with its
own political, economic and environmental goals. This evolutionary
development will greatly assist the growth of the solar industry in
Canada, but it will occur in a slower and more fragmented manner.
The Ontario programme proved that FiTs are a very effective
mechanism for creating market demand, but they are only one of
many tools that support the effective growth of solar energy. It is
hoped that jurisdictions outside Ontario take notice of the benefts
the FiT programme has generated for that province and implement
funding programmes with the same end goal: to further bolster the
solar industry across Canada.
Jared Donald is president of Conergy Canada.
e-mail: [email protected]
This article is available on line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com
THE LAST
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RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012 59
Send details of your event to: Renewable Energy World [email protected]
World Future Energy Summit
Abu Dhabi, UAE
1619 January 2012
Reed Exhibitions Middle East
P.O. Box 60799, Abu Dhabi
United Arab Emirates
T: +971 2 444 61 13
F: +971 2 444 37 68
W: http://www.
worldfutureenergysummit.com/
Solar Power Generation USA 2012
Las Vegas, US
31 January2 February 2012
Green Thinking (Services) Ltd.
Southbank House,
Black Prince Road,
Vauxhall, London, SE1 7SJ, UK
T: +44 (0) 20 3355 4205
E: james.brady@
greenpowerconferences.com
W: http://www.
solarpowergenerationusa.com/
Renewable Energy World
Conference & Expo North
America 2012
California, US
1416 February 2012
PennWell International, Sarah Jantz
1421 S. Sheridan Road
Tulsa, Oklahoma 74112
T: +1 918.831.9430
F: +1 918.831.9729
E: [email protected]
W: http://www.
renewableenergyworld-events.com
ExpoSolar 2012
Kintex, Korea
1517 February 2012
EXPO Solar 2012 Exhibition Bureau
13th foor Shinhan DM building
33-1 Mapo-dong
Mapo-gu, Seoul, 121708, Korea
T: +82 2 718 6931
F: +82 2 715 8245
E: [email protected]
W: http://www.exposolar.org/2012/
SolarTech Bangladesh
Sonargon, Bangladesh
1618 February 2012
215, Outer Circular Road (4th foor)
Bara Maghbazar
Dhaka1217, Bangladesh
T: +88 (02) 8321726, 9351745
F: +88 (02) 9348871
E: [email protected]
W: www.solartechbd.com
CIPV EXPO 2012
Beijing, China
2225 February 2012
Koelnmesse Co Ltd
Ms Helen Chen
T: +86 10 6590 7766 ext 736
F: +86 10 6590 6139
E: [email protected]
W: http://www.cipvexpochina.com/
Renewable Energy Finance
Forum Germany
Berlin, Germany
2829 February 2012
Euromoney Energy Events
T: +44 20 7779 8999
W: www.euromoneyenergy.com
5th International Photovoltaic
Power Generation Expo
Tokyo, Japan
29 February2 March 2012
Reed Exhibitions Japan Ltd
18F Shinjuku-Nomura Bldg.,
1-26-2 Nishishinjuku
Shinjuku-ku, Tokyo 163-0570, Japan
T: +81-3-3349-8576
F: +81-3-3349-8535
E: [email protected]
W: http://www.pvexpo.jp
HydroVision Russia
Moscow, Russia
57 March 2012
PennWell International,
Crispin Coulson
The Water Tower
Gun Powder Mill
Powdermill Lane
Waltham Abbey
Essex, EN9 1BN, UK
T: +44 1992 656 646
F:+44 1992 656 700
E: [email protected]
W: www.hydrovision-russia.com
Photovoltaics World Expo
810 March 2012
Tampa, Florida, US
PennWell Corporation
Stephanie Moore
T: 918.832.9382
F: 918-831-9729
E: [email protected]
W: http://www.pvworldevent.com
RenewableUK Wave & Tidal 2012
Edinburgh, UK
15 March 2012
RenewableUK, Simon Becker
Greencoat House
Francis Street
London, SW1P 1DH, UK
T: +44 (0)20 7901 3032
E: [email protected]
W: http://events.renewable-uk.com/
ECOBUILD
Excel London
2022 March 2012
International Business Events Limited
Ludgate House
245 Blackfriars Road
London SE1 9UY, UK
T: +44 (0) 207 560 4458
F: +44 (0) 207 560 4470
E: [email protected]
W: www.ecobuild.co.uk
Green Energy Expo PV KOREA
Daegu, Korea
2830 March 2012
(702-712) 90, Yutongdanji-ro (St.),
Buk-gu, Daegu, Korea
T: +82 53 601 5371
F: +82 53 601 5372
E: [email protected]
W: http://www.pvkorea.co.kr/eng/
European Offshore Wind 2012
Conference and Exhibition,
EWEA 2012
Copenhagen, Denmark
1619 April 2012
EWEA, Rue dArlon 80
1040 Bruxelles, Belgium
T: +32 2 213 18 60
E: [email protected]
W: http://events.ewea.org/
annual2012/
Renewable Energy World India
New Delhi, India
1921 April 2012
PennWell International, Helen Lomas
The Water Tower
Gun Powder Mill
Powdermill Lane
Waltham Abbey
Essex, EN9 1BN, UK
T: +44 1992 656 654
F: +44 1992 656 700
E: [email protected]
W: http://www.
renewableenergyworldindia.com
Hannover Messe
Hannover, Germany
2327 April 2012
HANNOVER MESSE Team
Deutsche Messe
Messegelnde
30521 Hannover
T: +49 0511 89-0
F: +49 0511 89-32626
W: www.hannovermesse.de/en/
homepage
Solarexpo 2012
Verona, Italy
0911 May 2012
Largo Panflo Castaldi 1
32032 Feltre (BL)
T: +39 0439 84 98 55
F: +39 0439 84 98 54
W: http://www.solarexpo.com/
World Renewable Energy Forum &
Exhibition 2012 (WREF 2012)
Colorado, US
1317 May 2012
Prof. A. Sayigh
P.O. Box 362
Brighton, BN2 1YH, UK
T: +44 (0)1273 625643
F: +44 (0)1273 625768
E: [email protected]
W: http://www.wrenuk.co.uk
6TH SNEC PV POWER EXPO
Shanghai, China
1618 May 2012
Shanghai New Energy Industry
Association (SNEIA)
Rm. 902, Building 1, #2020
Zhongshan Rd. (W)
Shanghai, China, 2020 1,902
T: +86 21 64276991
W: www.snec.org.cn
Sustainabilitylive!
Birmingham, UK
2224 May 2012
Faversham House Group Ltd,
Jordana Gavin
Faversham House,
232a Addington Road,
South Croydon, Surrey, CR2 8LE, UK
T: +44 (0)20 8651 7088
E: [email protected]
W: http://www.sustainabilitylive.com
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DIARY
60 RENEWABLE ENERGY WORLD JANUARYFEBRUARY 2012
Advertisers index
ABB OY 15, 48
BECHTEL 17
BEIJING SUNDA SOLAR ENERGY
TECHNOLOGY COMPANY, LTD. 45
BINSWANGER 19
EWEA - EWEA 2012 ANNUAL EVENT41
GO TOPEKA ECONOMIC
PARTNERSHIP 47
HANWHA SOLARONE IFC
HYUNDAI HEAVY INDUSTRIES
CO LTD 3, 5
MESSE HUSUM - HUSUM
WINDENERGY 2012 53
MULTI-CONTACT AG 27
NAVIGANT CONSULTING INC 32
NORDEX SE 29
PENNWELLS HYDRO GROUP
WORLDWIDE CONFERENCES 56
POWER-GEN INTERNATIONAL 2012
CONFERENCE & EXHIBITION 58
RENEWABLE ENERGY WORLD
AFRICA 2012 CONFERENCE &
EXHIBITION 31
RENEWABLE ENERGY WORLD ASIA
2012 CONFERENCE & EXHIBITION 55
RENEWABLE ENERGY WORLD INDIA
2012 CONFERENCE & EXHIBITION 43
REPOWER SYSTEMS AG 33
RISO NATIONAL LABORATORY 51
SANYO COMPONENT
EUROPE GMBH 25
SHANGHAI NEW ENERGY INDUSTRY
ASSOCIATION - SNEC PV POWER
EXPO 2012 IFC
SIEMENS AG 11
SMA SOLAR TECHNOLOGY AG 6-7
SOLAR PROMOTION GMBH -
INTERSOLAR EUROPE 2012 37
SOLAREXPO & GREENBUILDING -
ITALIAN PV SUMMIT 35
SOLAREXPO & GREENBUILDING -
SOLAREXPO 2012 21
TROJAN BATTERY COMPANY 13
VESTAS BC
Renewable
Energy World
All Energy 2012
Aberdeen, UK
2324 May 2012
Media Generation Group plc
11A Princes Square
Harrogate
HG1 1ND, UK
T: +44 (0)20 8241 1912;
F: +44 (0)20 8940 6211
E: [email protected]
W: http://www.all-energy.co.uk/
World Bioenergy 2012
Jnkping, Sweden
2931 May 2012
Svebio, Torsgatan 12 plan 3,
111 23 Stockholm
T: +46 (0)8-441 70 80,
F: +46 (0)8-441 70 89
E: [email protected]
W: www.worldbioenergy.com
WINDPOWER 2011
Atlanta, Georgia, US
36 June 2012
American Wind Energy Association
1501 M Street NW, Suite 1000
Washington, DC 20005 USA
T: +1 202.383.2500
F: +1 202.383.2505
E: [email protected]
W: http://www.windpowerexpo.org/
Renewable Energy World Europe
Conference and Expo 2012
Cologne, Germany
1214 June 2012
PennWell International, Helen Lomas
The Water Tower
Gun Powder Mill
Powdermill Lane
Waltham Abbey
Essex, EN9 1BN UK
T: +44 1992 656 654
F: +44 1992 656 700
E: [email protected]
W: http://www.
renewableenergyworld-europe.com
Renewable UK Offshore Wind 2012
London, UK
1314 June
RenewableUK
Level 2 Greencoat House
Francis Street
London SW1P 1DH, UK
T: +44 (0)20 7901 3000
F: +44 (0)20 7901 3001
W: http://www.renewable-uk.com
Intersolar Europe
Munich, Germany
1315 June 2012
Freiburg Wirtschaft Touristik und
Messe GmbH & Co KG
Solar Promotion GmbH
P.O. Box 100 170
75101 Pforzheim, Germany
T.: +49 7231 58598-0
F: +49 7231 58598-28
E: [email protected]
W: http://www.intersolar.de/en
Intersolar North America
San Francisco, CA, US
1012 July 2012
Mariel Firmacion
Antenna Group
A Beckerman Company
T: +1 415 977 1914
F: +1 415 896 1094
W: www.intersolar.us
Brazil Windpower 2012
Rio de Janeiro, Brazil
2931 August 2012
E: [email protected]
W: www.brazilwindpower.org/en/
Husum WindEnergy
Husum, Germany
1822 September 2012
Messe Husum & Congress
NCC NordseeCongressCentrum
Am Messeplatz 1618
D-25813 Husum
W: http://www.husumwindenergy.
com
Wind Power India 2012
Chennai, India
2830 November 2012
E: [email protected]
W: www.windpowerindia.in
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_____________________
Generating
performance.
The V112-3.0 MW,
powered by blades with
55% greater windswept area.
The truly innovative design of the V112-3.0 MW blades
is the result of Vestas 30 years at the forefront of wind
energy. A remarkable new blade length and multiple design
advances mean the V112-3.0 MW can operate protably
even at lower wind speeds. Engineered for optimum
performance, the blades feature higher rotor efciency,
a robust performing prole for higher operating lift, and
the ability to withstand harsh environmental factors.
Learn how the V112-3.0 MW can help ensure the
performance of your investment at vestas.com/v112.
For more information, enter 31 at REW.hotims.com
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US Renewable Energy Companies
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Hurst alternative fuel boilers lead the market with H t lt ti f l b il l d th k t ith
innovative gaseous and solid-fuel designs.
Complete modular construction for easy low cost installation.
Hurst has 45 years specializing in custom design of design of
alternative fuel steam plants and cogenerattionnn ssssys ys ys ys y te te te tems ms ms ms..
S100 SERIES
Firebox Construction Fi b C t ti Fi b C t ti
Biogas
Biomass
Natural Gas
Propane Gas
Biodiesel
Digestion Gas
Landll Gas
Pellet Fuels
For more information, enter 33 at REW.hotims.com
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____________________
REW Guide to US Renewable Energy Companies 2012 2
CONTENTS
5
Introduction
10
Large-scale renewables
24
Small-scale renewables
29
Transmission
33
US company listings
44
AZ Index of companies
2012
REW GUIDE TO US RENEWABLE ENERGY COMPANIES
Group Publisher Ralph Boon
Chief Editor David Appleyard
Associate Editor Tildy Bayar
Author Elisa Wood
Production Editor Piers Evans
Design Chad Wimmer
Production Controller Kimberlee Smith
Sales Managers Peter Anderson
Kate Hart
Rick Peredina
Alasdair Evans
Dan Harper
Sandra Spencer
BUYERS GUIDE STAFF
Buyers Guide Director Monica Gauba
Production/Database Manager Jessica Ross
Production/Database Specialist Lisa Hollis
Database Production Supervisor Tammy Croft
Editorial Assistant Jean Gallagher
Senior Input Processor Heidi Seiders
Database Administrators Christine Algie
Linda Smith-Quinn
Sandy Taylor
This guide has been prepared and published by
PennWell International Publications Ltd
The Water Tower, Gunpowder Mills, Powdermill Lane,
Waltham Abbey,
Essex EN9 1BN, UK
Tel: +44 1992 65 6600
Fax: +44 1992 65 6700
e-mail: [email protected]
Web: www.RenewableEnergyWorld.com
With special thanks to all those who helped
with this edition of the Guide.
Cover Photo: courtesy of Intel
2012 PennWell International Publications Ltd
All rights reserved. No part of this publication may be
reproduced in any form or by any means, whether
electronic, mechanical or otherwise including
photocopying, recording or any information storage
or retrieval system without the prior written consent
of the Publishers.
Opinions expressed in this publication are not
necessarily those of the Publishers or Editor.
Please note too that the listings are complied for
information purposes only; inclusion of a company
in these listings does not constitute any form of
recognition or endorsement by the Publishers or
any other party.
A searchable version of these listings is available on
our website at www.RenewableEnergyWorld.com. If
you spot any omissions or errors please let us know.
You can do this by visiting the website,
www.RenewableEnergyWorld.com, click on the
Buyers Guide link and then Edit My Listing or
Get Listed for Free links.
You may also contact us at +1 603 891 9459 or
email: [email protected]
We compile the company information from our own
questionnaires and data collection, from research
and from trade association membership lists. While
every attempt is made to ensure the accuracy of the
information contained in this magazine, neither the
Publishers nor the authors accept any liability for
errors or omissions.
Printed: In the UK by Williams Press.
ISSN 1462-6381
NOTE FROM THE EDITOR
Welcome to the 2012 Renewable Energy World
Guide to US Renewable Energy Companies.
We hope this latest edition, our ffth, once
again provides both a valuable resource and
comprehensive reference for those working in
the renewable energy sector both within and
beyond the United States.
Perhaps more than ever, this year is expected
to be defnitive for the US renewables industry.
For while there is inevitably some uncertainty
regarding policy developments over the coming
months, there is no doubt that the US has moved
well beyond the if and when of renewables
integration into the energy mix. Now the issue is
how these plans can be implemented as quickly
and as cheaply as possible. And, as grid parity
draws ever closer, regulators, policymakers,
investors, developers, owners, operators, and
grid operators are already focusing on the fner
engineering and market aspects that will enable
this industrys vast potential to be realised.
For the US, this can manifest itself not only in
terms of lower carbon emissions, lower imports
of fossil fuels and reduced energy pricing
volatility. This transformation means investment
in manufacturing, jobs and economic growth.
With policymakers and industry now
recognising this for the opportunity it is, the
US energy systems evolution has begun in
earnest. In all, wind accounted for 35% of new
US generation over the last four years, more
than all other forms of electricity generation
except natural gas. And last year the US solar
industry broke all of its records in the third
quarter by installing 449 MW of PV, more than
was installed in all of 2009. With CSP and solar
thermal included, this fgure rises to around 1
GW for the frst three quarters. This large-scale
development took place despite a lagging
economy and limited sources of fnancing,
making the achievement even more remarkable.
America is known as the land of opportunity; for
US renewables that has never been more true.
As always, if readers wish to be included
in future editions then we welcome your
engagement, simply refer to our website:
www.RenewableEnergyWorld.com where
you can add to or update our existing on-line
listings database if details have changed.
David Appleyard
Chief Editor
Renewable Energy World
10
24
29
ADVANCED ENERGY INDUSTRIES INC. 4
APTRONIC AG 25
BUILDGROUP 13
DPW SOLAR 17
FASTENER TECHNOLOGIES INC. 9
GROWATT NEW ENERGY NORTH AMERICA C2
HURST BOILER 1
HYTORC, DIVISION OF UNEX CORP. C4
LIFELINE ENERGY USA, INC. C3
RENEWABLE ENERGY SYSTEMS AMERICAS INC. 7
RUSSTECH LANGUAGE SERVICES, INC. 19
SCHNEIDER ELECTRIC 15
SIKA CORPORATION 16
SPIRE CORPORATION 27
TWR LIGHTING, INC. 60
UNITED STATES RENEWABLE ENERGY ASSOCIATION 21
VESTAS WIND SYSTEMS 3
Advertisers Index
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Certainty.
It means the most tested
turbine in the industry.
It means the V112-3.0 MW.
At the worlds largest wind turbine test center, Vestas
engineering experts use advanced methods such as
Highly Accelerated Life Testing (HALT) to ensure that
all critical components of the V112-3.0 MW meet
exacting standards for safety, performance and
reliability throughout their 20-year service life.
We push every component of the V112-3.0 MW
platform beyond the limits of its specications
to deliver rock-solid reliability in the eld.
The V112-3.0 MW is the product of 30 years
of experience managing and overcoming risks
at the forefront of wind energy development.
Find out more at vestas.com/v112.
For more information, enter 34 at REW.hotims.com
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Ideal for large commercial and utility-scale projects
Youve been asking for a 500 kW inverter with all
the renowned benets of a PV Powered solution.
Here you go. The PVP500kW gives you industry-leading
reliability, performance, and innovation combined
into one fully-integrated system that delivers nancial
gains at every turn.
Were not just another solar energy company.
Were empowering the industry.
advanced-energy.com/PVP500kW
For more information, enter 35 at REW.hotims.com
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5 REW Guide to US Renewable Energy Companies 2012
R
enewable energy
continues to
buck the trend
and prosper as
other industries
falter in the sluggish
economy. The US wind
energy industry added nearly
80% more capacity in third
quarter 2011 than in third
quarter 2010. Simultaneously,
the solar industry reported
a spectacular 140% growth
quarter over quarter for
the same period. Analysts
forecast continued expansion
into 2012 for both industries,
making them coveted job-
builders in an economy where
unemployment hovers at a
crippling 8%9%.
Meanwhile, US innovators
increasingly turn their talents
to improving and refning
renewable energy technologies.
Californias Silicon Valley, a
worldwide centre of high-tech
genius, is focusing more and
more on solar and smart grid
inventions. You cant throw a
softball around here without
hitting another solar company,
quipped Dan Shugar, one of the
solar industrys early pioneers
and now CEO of Solaria, a
Fremont company that makes
silicon photovoltaic products.
From these innovators
come more effcient and
easier-to-install solar panels
and growing integration of the
technology with the smart grid.
At the same time, the wind
industry is producing new wind
turbines suited for locations that
were previously inhospitable to
the resource, opening up more
terrain for wind development.
Biomass production is
becoming more cost-effective
and versatile, as companies
achieve greater crop production
per acre with less water use.
For geothermal, research and
development are leading the
way to new exploration and
drilling, mineral recovery, and
low-temperature technologies.
This explosion of innovation
offers a dual advantage for the
US. First, it makes renewable
energy cheaper and more
consumer-friendly, which
leads to more households,
businesses and utilities going
green. Second, many of these
new innovations especially
those that advance distributed
generation fll market needs in
developing countries, so create
new export opportunities for
US companies.
Of course, the industry also
faces bumps in the road. As
youll learn in these pages, wind
energys prospects depend
on a federal incentive that
could expire. And the US solar
industry fnds itself embroiled
in a trade dispute with China,
while manufacturers suffer as
panel prices tumble. But the
renewable energy industry
tackles these issues from a
position of strength. Now viewed
as a credible indeed preferred
energy resource by consumers,
businesses and political leaders,
renewable energy enters 2012
as one of the US economys
success stories.
STATES LEAD
With the nations two major
political parties at a near
stalemate and an election year
ahead, the federal government
is expected to achieve little in
the way of signifcant energy
legislation in 2012. Still, pundits
expect renewable energy to
thrive as state governments
continue to lead the way with
renewable portfolio standards
(RPS) and other policy measures
that encourage green energy
development. The American
Council on Renewable Energy
credits RPS programmes for
50% of US wind development
since 2001. And ACORE fnds
that such policies in California,
Illinois, Minnesota, New Jersey
and Texas create the fve largest
markets for renewable energy
growth in the country.
Within their RPS programmes,
states are refning their use of
renewable energy credits (RECs)
as a vehicle to help projects
accrue revenue. (One MWh of
renewable energy typically equals
one REC.) In many states, utilities
must acquire an increasing
number of the credits over the
next several years to meet legal
mandates for green energy use.
Policymakers are creating new,
more specifc credits or set-
asides to foster development
of certain kinds of renewable
energy. One of the most well
known is the solar renewable
energy credit, or SREC. More
recent entrants are the OREC
or offshore renewable energy
credit; ZREC or zero emissions
renewable energy credit; and
LREC or low emissions renewable
energy credit.
RECs of all kinds will become
increasingly sought after in coming
years as states demand that
utilities acquire more and more
renewable energy under RPS
rules. The National Renewable
Energy Laboratory (NREL) says
that by 2015, states will need
150 TWh of green energy to
meet RPS requirements, up from
55 TWh in 2010.
WHOS GREENEST?
Research frm Clean Edge
looks annually at how the
states compare based on
various clean energy metrics.
Three states derived more than
10% of their utility-scale power
from wind, solar, or geothermal
in the companys 2011
analysis. Iowa was frst with
15.4% of its electricity from
wind; North Dakota second with
11.99% from wind; and California
third with 10.06% from wind,
solar, and geothermal. California
INTRODUCTION
RENEWABLES
& PROSPERITY
TOP 10 STATES FOR
CLEAN ENERGY
Rank State Score
1. California 95.3
2. Oregon 79.4
3. Massachusetts 71.8
4. New York 63.1
5. Colorado 60.2
6. Washington 60
7. New Mexico 57
8. Minnesota 57
9. Connecticut 56.9
10 Vermont 53.2
Clean Edge compiled the above
list as part of its second annual US
Clean Energy Leadership Index, which
examined 70 different indicators to
ranks states for technology, policy and
capital. See http://www.cleanedge.
com/leadership
P
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REW Guide to US Renewable Energy Companies 2012 6
GREEN PRICING PROGRAMME RENEWABLE ENERGY SALES
Rank Utility Resources Used Sales
(kWh/year)
1 Austin Energy Wind, landfll gas 754,203,479
2 Portland
General Electric
Wind, biomass, geothermal 735,745,202
3 PacifCorp Wind, biomass, landfll gas,
solar
587,373,391
4 SMUD Wind, hydro, biomass,
solar
395,537,564
5 Xcel Energy Wind, solar 388,837,429
6 Puget Sound
Energy
Wind, landfll gas, biomass,
small hydro, solar
314,892,507
7 CLP/UI Wind, hydro 229,408,999
8 CPS Energy Wind 186,880,675
9 National Grid Biomass, wind, small
hydro, solar
167,149,902
10 We Energies Wind, landfll gas, solar 164,546,605
2010 data published May 2011 NREL
ranked number one when it
came to attracting venture
capital. Renewable energy made
up more of the electricity mix
(84%) in Idaho than in any other
state. Other states that got more
than 60% of their electricity from
renewables were Washington
(71.59%), South Dakota (65%),
and Oregon (63.84%). Clean
Edge ranked these states as
the overall clean energy leaders,
based on several parameters.
TOP 10 UTILITIES
Renewables also continue to
prosper through green pricing
programmes offered by utilities.
Under these programmes,
utility customers choose to
buy their electricity under a
special rate set up to support
renewables. Green power sales
from utility programmes exceed
6 TWh, according to a May
2011 report issued by NREL.
Wind energy represents
more than 75% of electricity
generated for US green
pricing programmes, the
report says.
About 850 utilities now allow
customers to subscribe to green
energy programmes, where
a portion of the customers
monthly electric payment goes
toward renewable energy
development. Utility green pricing
programmes are one segment of
a larger green power marketing
industry that encompasses
1.5 million customers, and helps
support more than 9000 MW of
renewable capacity, according
to NREL.
Texas-based Austin Energy
sold the largest amount of
renewable energy in the nation
through its green pricing
programme, according to
NREL. The top 10 utilities are
listed in the chart below.
NREL noted a signifcant trend
in movement toward community
solar programmes, also called
solar gardens (see Small-scale
Renewables chapter). Under
these programmes customers
buy a share of a solar system
and receive net metering
benefts from the project,
typically a credit on their bill.
Utilities and third parties
are increasingly developing
community solar programmes
as one way to support local
renewable energy development,
said NREL analyst Jenny
Sumner. Customers can invest
in solar through community
solar programmes even if they
are renters or own homes with
shaded roofs.
In El Jebel, Colorado, the
80 kW Holy Cross Energy
solar project provides
an 11 cents/kWh credit
on the monthly bills of
18 participants that purchased
shares for $3.15/watt or
$3150/kW. Other community
solar programmes highlighted by
NREL can be found in Ashland,
Oregon; Bainbridge Island,
Washington; Delta-Montrose
Electric Association, Colorado;
Ellensburg, Washington; Florida
Keys Electric Coop, Florida;
Holy Cross Energy, Colorado;
Okanogan Electric Cooperative,
Washington; Poulsbo Project,
Washington; Sacramento
Municipal Utility District,
California; St. George, Utah;
Trico Electric, Arizona; and
United Power, Colorado.
BIG GREEN ENERGY USERS
The US Environmental Agency
tracks green energy purchases
among large businesses,
institutions and government
entities that participate in its
Green Power Partnership.
The top 50 organisations in its
programme accounted for 14
TWh of renewables annually
as of October 2011. Intel
Corporation again topped the
list as the largest buyer of green
power with the purchase of
more than 2.5 TWh annually, up
from 1.4 TWh last year. Kohls
Department Stores and Whole
Foods Market also held their
positions, again this year, as
second and third. Starbucks
slipped from fourth to ffth,
bested this year by the city of
Austin, Texas. See the full list on
page 8.
Among colleges and
universities, the University of
Pennsylvania topped the EPA
list for green energy purchases
with 48% of its electricity coming
from solar and wind. Next
in line was Carnegie Mellon,
followed by the University of
Utah, Oregon State University,
and Drexel.
Local governments that
ranked highest for green energy
use were: Houston, Austin,
Dallas, District of Columbia
and Chicago. The top user of
on-site energy was
Kimberly-Clark, which gets
8% of its power from on-site
biomass. The US Air Force
came next, followed by BMW
Manufacturing, Wal-Mart, and
the City of San Jose, California.
US-CHINA PARTNERSHIP
While the US-China dispute
over solar panel prices
made headlines in 2011 (see
Small-scale Renewables
chapter), the two countries
collaborate in many ways on
renewable energy. Several
groups hope the dispute will not
chill this business relationship.
Partnerships with China can
help US companies overcome
todays fnancing hurdles,
according to the Fall 2011 US-
China Quarterly Market report
by ACORE and the Chinese
Renewable Energy Industries
Association (CREIA).
Specifcally, the report
envisions a marriage of
American labour for installation,
operations and maintenance
with Chinese goods and
fnance. This would give US solar
installations a temporary boost.
To retain their market share,
Chinese manufacturers will be
required to move manufacturing
to the US to maintain supply
chain management, says
the report.
SAFEST ENERGY
Another beneft of renewable
energy became apparent in
2011: it is probably the safest
form of generation. The issue
of safety came to the fore in
March following explosions
and radiation leaks at Japans
Fukushima Daiichi nuclear
plant after it was hit by a
tsunami. Renewable energy
is considered to be safer than
nuclear or fossil fuel plants
during natural disasters because
it uses no explosive materials or
radioactive elements.
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Renewable Energy Systems Americas Inc.
11101 W. 120th Ave.|Suite 400|Broomfield, CO 80021
303.439.4200 res-americas.com
Develops | Constructs | Owns | Operates
54 projects - 5,714 MW
(constructed and/or under construction)
Founded in 1997, Renewable Energy Systems Americas Inc.
(RES Americas) is a fully-integrated renewable energy company.
We are in a class of our own with the in-house expertise we offer,
ranging from resource analysis, development, site design,
procurement, engineering, construction, through to operations.
RES Americas can:
Sell its developed and constructed
projects to others,
Construct projects developed by others,
Operate projects, and/or
Own projects
One Company Many Solutions
For more info, scan the QR code with your smartphone. If you don't have a QR code app, it can be downloaded for free.
Jitendra Morankar
Solar Engineering Manager
Steve Reutcke
VP, HSQE
Roark Lanning
Turbine Engineering Manager
Jasmine Powers
Manager HSQE
Jenny Bredt
Development Manager
Tom Duckett
Construction Development, Manager
For more information, enter 36 at REW.hotims.com
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REW Guide to US Renewable Energy Companies 2012 8
Wind power, in particular, won
kudos following the devastating
tidal wave. The seven turbines
at Japans Kamisu offshore
wind farm not only remained
erect but continued to operate
providing much-needed power.
If you think about it, when it
comes to a tsunami, its hard
to get much better than a wind
turbine for a source of energy
production that will survive the
event, said Mark Rodgers,
communications director for
NATIONAL TOP 10 EPA GREEN POWER PARTNERSHIP
Annual Green
Power Usage
(kWh)
GP % of To-
tal Electricity
Use*
Organization
Type
Providers (listed in descending order
by kWh supplied to Partner)
Green Power
Resources
1. Intel Corporation
2,502,052,000 88% Information
Technology
Sterling Planet, PNM, On-site
Generation
Solar, Wind
2. Kohls Department Stores
1,420,080,000 101% Retail 3Degrees, Sterling Planet, Nexant,
On-site Generation
Solar, Wind
3. Whole Foods Market
752,257,623 100% Retail 3Degrees, NextEra Energy
Resources, Renewable Choice
Energy, On-site Generation
Solar, Wind
4. City of Houston, TX
438,000,000 34% Govt. (Local,
Municipal)
Reliant Energy Wind
5. Starbucks
421,921,000 52% Restaurants &
Food Srvcs.
3Degrees, Nexant Wind
6. Johnson & Johnson
416,510,688 39% Health Care 3Degrees, PNM, NextEra Energy
Resources, GDF Suez Energy
Resources NA, Sempra Energy,
Liberty Power, On-site Generation
Biomass,
Solar, Wind
7. City of Austin, TX
406,000,000 100% Govt. (Local,
Municipal)
Austin Energy Wind
8. Staples
341,509,408 52% Retail Sterling Planet, Avista Utilities,
Pacifc Power, Tennessee Valley
Authority, Portland General Electric,
Constellation NewEnergy
Biogas, Solar,
Wind
9. Hilton Worldwide
315,000,000 94% Travel &
Leisure
Renewable Choice Energy Various
10. City of Dallas, TX
302,880,000 40% Govt. (Local,
Municipal)
GDF Suez Energy Resources NA Wind
*Refects the amount of green power as a percentage of total electricity use. Partners choosing to purchase green power in
an amount exceeding 100% of their US organisation-wide electricity use are listed as such.
Indicates Provider is selling Partner a third-party certifed green power product. For more information on third-party certif-
cation, visit http://www.epa.gov/greenpower/buygp/certifed.htm
EPA GREEN POWER PARTNERSHIP, OCTOBER 2011
Cape Wind, a 130 turbine
project in planning off the New
England coast. Its smooth,
cylindrical steel tower allows the
water to easily slide past and
around it, defecting most of the
force of the oncoming surge of
water and if its an offshore
wind turbine so much the better
because it is already designed
for salt water exposure.
THE FUTURE
As the renewable energy
industry moves into 2012,
macroeconomic uncertainty
continues to create question
marks about its pace of
growth. But the industry
appears positioned to remain
a bright spot in the economy,
one that provides new jobs,
cleaner energy and perhaps
new exports of US clean
technology. Much will depend
on consumer support for
the resource.
Research by NREL indicates
that consumers associate
renewable energy primarily with
the environment and appear
unaware of its other benefts. To
capture consumer attention, the
technology needs to be linked
more closely with prosperity in
the US psyche.
Why is this important? The
renewables industry continues
to face the same problem as
the larger electricity market.
Electricity is delivered so
seamlessly that it is invisible to
the consumer. As a result, even
though US consumers support
renewable energy, only about
14% know they can actually
buy it, says NRELs report,
Consumer Attitudes About
Renewable Energy: Trends and
Regional Differences.
Consumers obviously need
to know they have the option
of putting their money where
their values are, NREL says.
Such education efforts will
become increasingly important
in 2012 and beyond, as the US
continues to push for renewable
energy to become a much
larger part of its electric power
portfolio. This guide attempts
to lend a hand by painting
an annual portrait of the US
renewable energy industry and
its successes.
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___________________________
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__________________
REW Guide to US Renewable Energy Companies 2012 10
LARGE-SCALE RENEWABLES
LARGE-SCALE RENEWABLES:
WHY WE NEED
MORE
N
ever before has electricity been more important. As the US economy
becomes increasingly high-tech, it needs more power and it needs that
power to be green. By 2035, we will use 31% more electricity than we
do today. Where will this power come from? If we continue to rely on
coal-fred plants, we will foul our air and water. So instead we turn to
wind, sun, water and biomass to power our computers, air conditioners and our
coming electric cars. That is why, despite the economic downturn, the US has
continued to invest in large-scale wind farms, solar plants and other renewable
generators that are connected to the grid. As other industries have faltered, the
renewable energy sector has thrived, offering a rare centre of economic vitality
and new jobs in an otherwise troubled economy.
WIND STRONG; FUTURE CLOUDY
The US wind industry represents one of renewable energys largest success
stories, and it continued to grow in 2011 at a pace most industries would
envy. Over the last four years, wind energy produced more than one-third of
US electric capacity. By the end of the third quarter, US wind energy capacity
totaled about 43.5 GW, according to the American Wind Energy Association
(AWEA). The industry added about 1204 MW in the third quarter, a 79% increase
over the same period in 2010.
Bent Tree Wind Farm
ALLIANT ENERGY
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Wind power installations top 20 states
Through 2010
1Q 2011
2Q 2011
3Q 2011
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000
Capacity installed (MW)
Texas
Iowa
California
Minnesota
Illinois
Washington
Oregon
Colorado
Oklahoma
North Dakota
Wyoming
New York
Indiana
Kansas
South Dakota
Pennsylvania
New Mexico
West Virginia
Wisconsin
Missouri
Most capacity installed
during 3Q 2011
Capacity
(MW)
Colorado 501.00
Minnesota 163.00
Oklahoma 129.60
West Virginia 97.60
Texas 88.20
Fastest growing states
during 3Q 2011
Growth
rate %
Ohio 66.7
Colorado 38.6
West Virginia 22.7
Maine 22.5
Michigan 12.6
AWEA
LARGE-SCALE RENEWABLES
11 REW Guide to US Renewable Energy Companies 2012
except natural gas-fred power.
Still the industry worries about
its future, and with good reason.
Financing remains diffcult to
secure and federal stimulus
programmes are winding down.
A key federal incentive, the
production tax credit, or PTC,
expires at the end of 2012 and
to the chagrin of wind advocates
Congress fnished its work in
2011 without extending it.
Further, the US has been
slow to build transmission that
can connect wind power to
distant cities. Transmission
projects often face not-in-my-
backyard opposition that can
delay them for many years. And
new transmission is expensive,
costing about $1 million per mile
to build. Wind developers shy
away from proposing wind farms
where no transmission yet exists,
and utilities dont want to put
money into building transmission
unless a generator stands ready
to use the lines. Wind industry
insiders call this the transmission
chicken and egg dilemma.
While these problems could
stymie wind development in the
short term, the industrys long-
term prospects remain strong.
Large wind developers with deep
pockets have secured excellent
wind sites, but are biding their
time until the economy improves
and more transmission is built. In
addition, about three ffths of the
states have aggressive goals to
add more green energy. These
requirements are known as
renewable portfolio standards,
or RPS. The policy differs from
state to state, but generally
an RPS requires that about
15%20% of a states electricity
come from green sources by
specifed dates. To meet the
requirements, most states will
need to build large, new wind
farms over the next 515 years.
KEY INCENTIVE TO EXPIRE
Congress tends to approve
wind energys PTC for only short
periods of time. As a result, the
US wind industry goes through
periods of boom and bust.
Congress has let the PTC lapse
three times: in 1999, 2001 and
2003. In the years following
expiration, installations dropped
by between 73% and 93%,
only to revive again once the
credit was restored, according
to AWEA. The 2.2 cents/kWh
credit is again set to expire at
the end of 2012. In addition, a
30% cash grant in lieu of the
PTC ended at the close of 2011.
AWEA and other renewable
energy advocates are pressing
hard for continued support
from Congress, but the going
is diffcult as the federal
government seeks ways to lower
its large defcit. Some industry
insiders are predicting little to
no new development in 2013
unless the PTC is renewed.
The PTC has been stable
for the last four years, and as a
result the wind industry attracted
about $17 billion per year in
private investment, according
to a December 2011 study by
Navigant Consulting. The US
could save about 54,000 jobs in
the next four years, and keep the
wind sector on track to support
500,000 jobs by 2030
by preserving the PTC.
Colorado, Texas, Iowa, Illinois,
Pennsylvania, California,
Oregon, North Dakota and Ohio
would see the greatest gains.
But cutting the PTC would wipe
out two thirds of the private
investment in the industry and
half of its jobs, the report says.
American manufacturing
jobs are coming back, with
tens of thousands of new jobs
from wind power, said Denise
Bode, AWEA CEO. But these
jobs could vanish if Congress
allows the Production Tax Credit
to expire, in effect enacting
a targeted tax increase,
and sending our jobs to
foreign countries.
PTC UNDER THREAT
According to Navigant
Consultings Impact of the
In all, 45 new wind farms
began operating in 25 states
in 2011. Colorado added
the most capacity, about
500 MW, and Ohio demonstrated
the overall fastest growth rate
of 66.7%. Colorado is home to
two of the largest wind farms
built in the frst nine months of
the year: the 250 MW Cedar
Creek II, developed and owned
by BP Wind Energy; and the
250 MW Cedar Point Wind
Energy, developed by RES
Americas and owned by
Enbridge. Both projects are
selling their output to Xcel
Energy. Midwest Wind Energy
fnished the 239 MW Big Sky
Wind in Illinois for the Edison
Mission Group, which will sell
the output on the merchant
market. Wind Capital Group and
Alliant Energy brought on line the
201 MW Bent Tree, a Minnesota
project owned by Wisconsin
Power & Light. Terra-Gen Power
completed three phases of its
Alta project in California: the
150 MW Alta III, 102 MW Alta IV,
and 168 MW Alta V. The projects
will sell their output to Southern
California Edison.
Although development has
slowed in Texas, it continues
to have far more wind power in
operation than any other state.
Texas also is home to seven of
the nations top 10 largest wind
farms, including all of the top
fve. Figures released by AWEA
in autumn of 2011 show Texas
with 10,223 MW of installed
capacity, followed by Iowa with
3708 MW; California 3599 MW;
Oregon 2305 MW; Washington
2356 MW; Illinois 2438 MW;
Minnesota 2681 MW; Oklahoma
1612 MW; Wyoming 1412 MW;
New York 1349 MW; Colorado
1800 MW; and Indiana
1339 MW.
AWEA found the third
quarter to be busiest in terms
of new construction since
2008, with work underway
on about 90 projects in 29
states representing 8400 MW.
In all, wind has accounted for
35% of new US generation over
the last four years, besting all
other forms of electric energy
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REW Guide to US Renewable Energy Companies 2012 12
Production Tax Credit on the US
Wind Market report, released
in mid-December 2011, with
no PTC extension the US wind
market will shrink signifcantly
in 2013:
Annual installations will be
2 GW in 2013, down from
>8 GW in 2012;
Total wind-supported jobs
will drop by nearly half, from
78,000 in 2012 to 41,000
in 2013;
Total wind investment will
drop by nearly two-thirds,
from $15.6 billion in 2012 to
$5.5 billion in 2013.
With a four-year PTC
extension, however, the
US wind market will grow
through 2016:
Annual installations will be
810 GW through 2016;
Total wind-supported jobs
will grow to 95,000 by 2016;
Total wind investment will
grow to $16.3 billion in 2016.
OFFSHORE WIND PERSEVERES
The US has yet to build any
offshore wind, and 2011
brought mixed results for the
industry. A handful of projects
moved closer to construction,
as the federal government
bolstered its support. Other
projects, however, fell to the
wayside, stymied by economic
and siting woes.
Offshore wind could produce
four times the nations current
generation capacity, about
4150 GW, according to a 2010
report by NREL. However, its
not possible to build offshore
wind farms in many places.
The west coast, for example,
is considered inhospitable
because of its rocky shoreline
and near-shore deep waters.
Most of the nations offshore
wind development is occurring
along the eastern seaboard,
where shallow, sandy shoals
offer easier construction. Until
recently, the Great Lakes also
appeared to be a likely location
for development.
The industry found itself
stymied in 2011 by the falling
price of natural gas. Offshore
wind prices are high. A newer
technology, it has yet to achieve
the economies of scale of
onshore wind. It was these high
prices that caused the New
York Power Authority (NYPA) in
September to cancel plans for
120500 MW of offshore wind
on the US side of the Great
Lakes. NYPA said that the fve
competitive bids it received
from developers were two to
four times more expensive than
land-based wind. Earlier in
the year, the offshore wind
industry also faced rejection
on the Canadian side of the
Great Lakes, when Ontarios
provincial government placed
a moratorium on development.
Government offcials said they
need more time to study the
impact of wind turbines on fresh
water ecosystems.
In addition, in late
2011 NRG Energy put its
200 MW Delaware project
on hold, canceling its power
purchase agreement (PPA)
with Delmarva Power & Light.
NRG cited as reason for the
withdrawal its inability to fnd an
investment partner, Congresss
decision to cut the federal
loan guarantee programme for
offshore wind and the uncertain
future of the federal PTC.
However, many projects are
proceeding. In New England,
the 420 MW Cape Wind
continued to seek fnancing and
a buyer for half of its output.
Being developed off the coast
of Massachusetts by a private
frm, Energy Management Inc,
the project has a PPA for the
other half of its output with
National Grid at a beginning
price of 18.7 cents/kWh in 2013
with a 3.5% annual escalator.
The frst offshore wind farm
proposed in the US, it also
became the frst to receive
a lease to operate in federal
waters. The project is expected
to contribute signifcantly to the
states RPS that requires 15% of
power to come from renewables
by 2020, and Governor
Patrick Devals target to build
2000 MW of wind power in the
state by the same year. Offcials
said Cape Wind also would help
Massachusetts reach its goal
of reducing greenhouse gases
10%25% below 1990 emission
levels by 2020. And fnally, the
state sees wind power as an
effective hedge against volatile
fossil fuel prices.
The project has now won
all major regulatory approvals,
but still faces legal hurdles, as
its long-time foe, the Alliance
to Protect Nantucket Sound,
continues to challenge the
project in court. However, Cape
Wind supporters are optimistic
the project will win on the
legal front given the opposition
groups lack of success in
court so far.
In nearby Rhode Island,
another offshore project has
also secured a power purchase
agreement with National Grid.
New Jersey-based Deepwater
Wind plans to build a 30 MW
project off Block Island. State
offcials have attempted to spare
the Deepwater Wind project the
long battle endured by Cape
Wind by selecting Deepwater
as a preferred vendor and
designating areas of the states
coast for expedited zoning
review. Power from that project
is priced at 24.4 cents/kWh
beginning in 2013. Deepwater
Wind says its project carries a
high price tag because it is a
small pilot project and lacks the
economies of scale of the lower-
priced Cape Wind. Deepwater
signed a contract in October
to purchase fve 6 MW turbines
from Siemens for the project,
which it hopes to bring online
in 2013/2014.
Deepwater Wind also plans
to build a 1000 MW wind
farm further offshore, about
2025 miles (3240 km) off
New England, which will serve
several northeastern states. The
project includes an extensive
underwater transmission
project, the New England-Long
Island Interconnector (NELI),
connecting DWEC to southern
New England and eastern Long
Island. NELI will allow the wind
farm to send power to multiple
states in the region. Deepwater
BUREAU OF OCEAN ENERGY MANAGEMENT RFI RESPONDENTS BY STATE AND COMPANY TYPE
State
Respondents
Existing US offshore player Major North American wind player Other
Delaware NRG-Bluewater
Maryland NRG-Bluewater
Fishermens Energy
Energy Management Inc.
Apex (Maryland Offshore)
Iberdrola
RES America
Seawind Renewable Energy
Orisol Energy
Massachusetts Energy Management Inc.
Fishermens Energy
NRG-Bluewater
Iberdrola Condor Wind Energy
Free Flow Power Corp.
Neptune Wind
No Fossil Fuel
Offshore MW
US Wind Inc.
New Jersey Garden State Offshore Energy
(PSEG & Deepwater Wind)
NRG-Bluewater
Fishermens Energy
Apex (New Jersey Offshore Wind)
TCI Renewables
Mainstream Renewable Power
enXco
Iberdrola
Offshore MW
Neptune Wind
US Wind Inc.
Rhode Island Deepwater Wind
Energy Management Inc.
Fishermens Energy
enXco
Iberdrola
Mainstream Renewable Power
Neptune Wind
US Wind Inc.
IHS EMERGING ENERGY RESEARCH
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_____________
___________
GE
49.7%
Siemens
16.2%
Gamesa
11.0%
Mitsubishi
6.8%
Suzlon
6.1%
Vestas 4.3%
Acciona 1.9%
Clipper 1.4%
REpower 1.3%
Other 1.2%
US Wind Industry annual market report year ending 2010 AWEA
US wind turbine market share 2010
Total installations:
5115 MW
LARGE-SCALE RENEWABLES
REW Guide to US Renewable Energy Companies 2012 14
Wind hopes to have the project
under construction in 2014/2015
and operating in 2016/2017.
Meanwhile, New Jersey
continues to investigate
an innovative approach to
development intended to
fnance about 1100 MW of
offshore wind through the
sale of offshore renewable
energy credits, or ORECs.
New Jersey plans to offer the
credits through competitive
bidding. In nearby New York, a
group that includes NYPA, the
Long Island Power Authority
and Consolidated Edison is
exploring the possibility of
developing 350700 MW about
1317 miles (2127 km) off the
south shore of Long Island.
In addition, several offshore
projects have emerged as a
result of plans by the US Bureau
of Ocean Energy Management,
or BOEM, to offer commercial
leases along the outer continental
shelf off the East Coast. BOEM
issued a solicitation to determine
developer interest in the leases.
The chart on page 12 lists the
companies that responded.
MANUFACTURING THRIVES
The stability of winds chief
tax credit, the PTC, over the
last four years has helped
the wind industry create one
of the USs fastest growing
manufacturing sectors. In
fact, domestic production of
wind turbine components has
grown twelvefold to more than
400 facilities in 43 states over
the last six years, according
to AWEA. Many European
manufacturers have opened
plants in the US.
As a result, the wind industry
has become less reliant on
foreign imports for turbines.
Imports fell 46% between 2009
and 2010, from $2.3 billion to
$1.2 billion, according to a 2011
report by Andrew David, Offce
of Industries, US International
Trade Commission.
There were nearly
400 wind turbine manufacturing
facilities based in the US as of
2010. These include assembly
plants and factories producing
components such as large
bearings, castings, electrical
wiring, fasteners, hydraulics,
and power electronics.
The sector was bolstered
during the fnancial crisis by
funding provided through the
American Reinvestment and
Recovery Act.
Given wind powers worldwide
growth, US manufacturers are
positioned to increase exports
of advanced wind energy
components. Canada, Mexico
and South America offer prime
export opportunities. But the
US exported no more than
$150 million of assembled wind
turbines in 2010, according
to a Congressional Research
Service report published in
September 2011. Competition
is emerging from China, which
headquartered four of the
top 10 manufacturers as of
2010. By some estimates,
China can make turbines for
30% less than Europe, the
US or Japan. But China faces
limits on its sales because
its turbines are perceived to
lack quality compared with
US products.
A DAZZLING SOLAR MARKET
Solar appears on track to
become the fastest growing
new energy sector by 2014.
The US solar industry broke all
of its records in the third quarter
of 2011 by installing 449 MW of
photovoltaics (PV), more than
was installed in all of 2009,
according to Greentech Media
(GTM) and the Solar Energy
Industries Association (SEIA).
Large-scale solar
development occurred despite
a lagging economy and limited
sources of fnancing. Third
quarter, grid-connected PV
installations grew 140% over
the same period in 2010. The
US added over 200 MW of
utility-scale installations alone.
In fact, over 1 GW of solar
was installed in the frst three
quarters, more than the US
has seen in any given year.
The total US market reached
3.1 GW of installed capacity,
10 times the market size of 2005.
And this number could grow to
10 GW by 2015, according to
Rhone Resch, president and
CEO of SEIA.
MOST ACTIVE STATES
California remains the biggest
PV market, followed by New
Jersey, New Mexico, Arizona,
Pennsylvania, North Carolina,
Colorado, Massachusetts,
Hawaii, New York and Nevada.
And there is still a lot room to
expand in these markets. We
only have 1% solar penetration
in existing markets, so there
is still a lot of potential to go
deeper into these markets, said
Ken Ebbit, director of product
management at SunRun, a solar
leasing company in California.
CAPX2020
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