GERMANY: Messe Husum organised a press conference in Kiel on the subject of the energy transition at local level. Speakers included Schleswig-Holstein’s energy transition minister Dr Robert Habeck, Husum’s trade fair boss Peter Becker, the spokesman of the German Small Wind Turbine Association Roger Schneider and the marketing director of Energie aus Wind und Sonne GmbH, Stefan Ebert.
“The energy transition is a project whose success is dependent on private and local initiatives,” said Becker. “Municipalities and local authorities are increasingly relying on energy supply and production using renewable sources, as well as on energy saving, as can be seen from the exhibitors at New Energy Husum.” The leading renewable energy trade fair is being held in Husum for the ninth time, from 21-24 March.
Private consumption pays off
“We want to produce three times as much electricity from renewable sources as we need in Schleswig-Holstein by 2020,” added Dr Habeck. The energy transition minister called upon local authorities and private individuals to achieve this goal together. “We have to save electricity, insulate houses and build wind farms on the small as well as the large scale.”
Another important pillar of the energy transition besides wind power is solar energy. If you use the electricity yourself, you can save or cut the costs for domestic electricity, grid expansion and the renewables levy (EEG-Umlage).
“Despite the massive cuts in feed-in payments, private and commercial photovoltaic plants are still profitable, because the increasing electricity prices of the main power companies make solar power an attractive alternative. This is why there is a focus on power management at storage systems at New Energy Husum,” said Ebert.
The same goes for the small wind turbines. Schneider anticipates that the amortisation period can be reduced to as much as a third when you use the wind power yourself. “A one-family home can use 20 to 60 per cent of the wind power yield itself, and sell the rest”, said the small wind turbine expert. In commercial and industrial plants a turbine could even pay for itself within five to eight years.
Thursday, February 14, 2013
Falling spot market volume shows solar polysilicon price crash is ending
USA: Activity has plunged in the global photovoltaic (PV) polysilicon spot market—one of many hopeful signs corroborating IHS’s prediction that prices for the key solar raw material soon will bottom out as supply comes into better alignment with demand.
The spot market in December of 2012 accounted for 20 percent of total polysilicon sales, down dramatically from its peak of 47 percent in May, according to the IHS Solar Polysilicon Price Index.
The high level of spot market volume in mid 2012 indicated that polysilicon was in an acute state of oversupply. Producers were dumping excess stockpiles on the spot market, driving down prices to bargain levels that lured buyers away from long-term contract agreements.
This phenomenon was associated with a major, sustained plunge in polysilicon prices, with the polysilicon price per kilogram falling to an average of $20.00 per kilogram at the end of 2012, down from $31.00 in February last year.
However, the fact that spot market volumes having fallen by more than half indicates that suppliers have reduced production to accommodate demand—suggesting that pricing is approaching the bottom.
“As IHS predicted in November, solar polysilicon pricing in early 2013 is nearing the end of its long, 24-month decline,” said Dr. Henning Wicht, director and principal analyst, photovoltaics, for IHS. “The drop in spot market volume, along with a range of other indicators, suggest that the price plunge that hamstrung polysilicon supplier profits throughout 2012 will soon come to an end.”
Tier 1 suppliers are leading the way in reducing production, following IHS’s advisory issued in September 2012. These companies are attempting to avoid a replay of 2012’s miserable conditions by controlling volumes and not inflating the spot market.
The top suppliers also have experienced erosion in their profit margins. Even the most competitive suppliers now are warning investors they cannot afford to continue lowering prices to gain market share.
With their factory utilization reduced, these leading companies now are incurring higher unit costs per part manufactured. This also will compel the top-tier suppliers to cease reducing prices.
Pricing is expected to start increasing this month and continues through March. While supply is adjusting to reduced sales, demand is expected to increase only modestly in 2013.
Even if demand increases at a higher rate than expected, Tier 1 suppliers will be reticent to increase production, keeping in mind that oversupply would destroy any price recovery immediately.
IHS Solar believes Tier 2 and Tier 3 suppliers are likely to play a reduced role in the market for several months. It will take prices higher than $25.00 per kilogram to stimulate the ramping-up of the idled factories.
Source: IHS iSuppli, USA.
The spot market in December of 2012 accounted for 20 percent of total polysilicon sales, down dramatically from its peak of 47 percent in May, according to the IHS Solar Polysilicon Price Index.
The high level of spot market volume in mid 2012 indicated that polysilicon was in an acute state of oversupply. Producers were dumping excess stockpiles on the spot market, driving down prices to bargain levels that lured buyers away from long-term contract agreements.
This phenomenon was associated with a major, sustained plunge in polysilicon prices, with the polysilicon price per kilogram falling to an average of $20.00 per kilogram at the end of 2012, down from $31.00 in February last year.
However, the fact that spot market volumes having fallen by more than half indicates that suppliers have reduced production to accommodate demand—suggesting that pricing is approaching the bottom.
“As IHS predicted in November, solar polysilicon pricing in early 2013 is nearing the end of its long, 24-month decline,” said Dr. Henning Wicht, director and principal analyst, photovoltaics, for IHS. “The drop in spot market volume, along with a range of other indicators, suggest that the price plunge that hamstrung polysilicon supplier profits throughout 2012 will soon come to an end.”
Tier 1 suppliers are leading the way in reducing production, following IHS’s advisory issued in September 2012. These companies are attempting to avoid a replay of 2012’s miserable conditions by controlling volumes and not inflating the spot market.
The top suppliers also have experienced erosion in their profit margins. Even the most competitive suppliers now are warning investors they cannot afford to continue lowering prices to gain market share.
With their factory utilization reduced, these leading companies now are incurring higher unit costs per part manufactured. This also will compel the top-tier suppliers to cease reducing prices.
Pricing is expected to start increasing this month and continues through March. While supply is adjusting to reduced sales, demand is expected to increase only modestly in 2013.
Even if demand increases at a higher rate than expected, Tier 1 suppliers will be reticent to increase production, keeping in mind that oversupply would destroy any price recovery immediately.
IHS Solar believes Tier 2 and Tier 3 suppliers are likely to play a reduced role in the market for several months. It will take prices higher than $25.00 per kilogram to stimulate the ramping-up of the idled factories.
Source: IHS iSuppli, USA.
Wednesday, February 13, 2013
Third-party-owned solar generated over $900 million for California in 2012
USA: Sunrun, the USA's leading home solar company, and PV Solar Report, an authority on solar market data, announced that third-party-owned solar delivered more than $938 million to the California economy in 2012. The single-year record means that California third-party-owned solar generated about the same amount in 12 months as in the previous five years combined. The third-party total represents 74 percent of the state’s 2012 home solar market.
An August 2012 report showed the business modeled had delivered $1 billion in growth for the state since it became a homeowner choice in 2007. Also called solar power service, third-party-owned solar means a provider like Sunrun owns, maintains and insures solar panels on a homeowner's roof.
Homeowners switch to solar without the high upfront cost, avoid the responsibilities of ownership, and save money on electricity bills. Sunrun pioneered the solar service model for home solar and is the market leader, installing $2 million in solar equipment every day.
“Nearly 75 percent of homeowners who went solar in 2012 chose third-party-owned, compared to 56 percent in 2011,” said Stephen Torres, founder and managing director of PV Solar Report. “We are seeing the most growth in low and median-income zip codes as companies like Sunrun continue to remove the barriers to access.”
As part of the 2012 analysis, Sunrun and PV Solar Report announced California’s Top Solar Cities for 2012 based on solar system contracts sold. Third-party-owned solar represented 75 percent of the 2012 home solar market among these cities. The state leaders for 2012 in order of total home solar contract value are:
1) San Diego; 2) San Jose; 3) Bakersfield; 4) Los Angeles; 5) Fresno; 6) San Francisco; 7) Corona; 8) Murrieta; 9) Clovis; and 10) Temecula.
“Solar service is bringing solar to more American families not only because it eliminates the upfront cost, but also because it removes the hassles of ownership,” said Sunrun co-CEO Lynn Jurich. “Homeowners feel the impact of a tight economy and are looking for ways to own less in order to save more money. Our business model meets those needs, plus it helps the planet.”
The $938 million from third-party-owned solar for 2012 went directly to California local businesses and communities while helping homeowners of all income levels switch to solar. Two-thirds of home solar installations are now occurring in low and median income neighborhoods, according to a July 2012 assessment from California Solar Initiative (CSI).
An August 2012 report showed the business modeled had delivered $1 billion in growth for the state since it became a homeowner choice in 2007. Also called solar power service, third-party-owned solar means a provider like Sunrun owns, maintains and insures solar panels on a homeowner's roof.
Homeowners switch to solar without the high upfront cost, avoid the responsibilities of ownership, and save money on electricity bills. Sunrun pioneered the solar service model for home solar and is the market leader, installing $2 million in solar equipment every day.
“Nearly 75 percent of homeowners who went solar in 2012 chose third-party-owned, compared to 56 percent in 2011,” said Stephen Torres, founder and managing director of PV Solar Report. “We are seeing the most growth in low and median-income zip codes as companies like Sunrun continue to remove the barriers to access.”
As part of the 2012 analysis, Sunrun and PV Solar Report announced California’s Top Solar Cities for 2012 based on solar system contracts sold. Third-party-owned solar represented 75 percent of the 2012 home solar market among these cities. The state leaders for 2012 in order of total home solar contract value are:
1) San Diego; 2) San Jose; 3) Bakersfield; 4) Los Angeles; 5) Fresno; 6) San Francisco; 7) Corona; 8) Murrieta; 9) Clovis; and 10) Temecula.
“Solar service is bringing solar to more American families not only because it eliminates the upfront cost, but also because it removes the hassles of ownership,” said Sunrun co-CEO Lynn Jurich. “Homeowners feel the impact of a tight economy and are looking for ways to own less in order to save more money. Our business model meets those needs, plus it helps the planet.”
The $938 million from third-party-owned solar for 2012 went directly to California local businesses and communities while helping homeowners of all income levels switch to solar. Two-thirds of home solar installations are now occurring in low and median income neighborhoods, according to a July 2012 assessment from California Solar Initiative (CSI).
SOLON completes 459 kW solar project for Gila Bend water treatment facility
USA: SOLON Corp. has completed construction of a 459 kilowatt (kW) PV system at the Reverse Osmosis Water Treatment Facility for the Town of Gila Bend, Arizona.
The system is expected to offset the energy usage of the water treatment facility by 86 percent, which will save money for the Town of Gila Bend through reduced utility bills.
“The incorporation of solar into this water treatment facility is another great example of solar’s versatility at reducing power costs across the electric demand spectrum,” said Jared Schoch, VP and GM of Power Plants at SOLON. “We are very excited to complete this PV project for the community of Gila Bend.”
SOLON engineered, designed, constructed, and commissioned the fixed-tilt system. As a full service system provider, SOLON will continue to operate and maintain the system on behalf of Gila Bend.
“As part of our strategic focus on renewables and PV to drive down electric costs incurred by the Town of Gila Bend, our water treatment facility was selected because it had the largest electric draw of any Town-owned facility,” said Frederick Buss, Town Manager for Gila Bend. “This system will mitigate those costs greatly. SOLON has done a tremendous job yet again.”
The project development and system ownership was financed through a State of Arizona Water Infrastructure Finance Authority (WIFA) grant awarded to the Town of Gila Bend for drinking water infrastructure improvements.
SOLON has installed nearly 65 MW of solar in Arizona, and 90 MW nationwide.
The system is expected to offset the energy usage of the water treatment facility by 86 percent, which will save money for the Town of Gila Bend through reduced utility bills.
“The incorporation of solar into this water treatment facility is another great example of solar’s versatility at reducing power costs across the electric demand spectrum,” said Jared Schoch, VP and GM of Power Plants at SOLON. “We are very excited to complete this PV project for the community of Gila Bend.”
SOLON engineered, designed, constructed, and commissioned the fixed-tilt system. As a full service system provider, SOLON will continue to operate and maintain the system on behalf of Gila Bend.
“As part of our strategic focus on renewables and PV to drive down electric costs incurred by the Town of Gila Bend, our water treatment facility was selected because it had the largest electric draw of any Town-owned facility,” said Frederick Buss, Town Manager for Gila Bend. “This system will mitigate those costs greatly. SOLON has done a tremendous job yet again.”
The project development and system ownership was financed through a State of Arizona Water Infrastructure Finance Authority (WIFA) grant awarded to the Town of Gila Bend for drinking water infrastructure improvements.
SOLON has installed nearly 65 MW of solar in Arizona, and 90 MW nationwide.
Solar capacity tops 100 GW on Asian markets
USA: Global solar-power capacity rose to at least 101 gigawatts last year as growth in China, the USA and Japan outstripped some markets in Europe.
About 30 to 32 gigawatts were completed worldwide, compared with almost 30 gigawatts in 2011, the European Photovoltaic Industry Association (EPIA) said in a statement. Solar photovoltaic plants can now generate as much electricity as about 16 mid-sized nuclear power stations, the lobby group said.
Governments from India to Chile are promoting sun-based power to satisfy growing energy demand while meeting emission targets. Global installations expanded last year after an equipment glut drove down solar-panel prices, even as European markets slowed following a reduction in state subsidies.
About 30 to 32 gigawatts were completed worldwide, compared with almost 30 gigawatts in 2011, the European Photovoltaic Industry Association (EPIA) said in a statement. Solar photovoltaic plants can now generate as much electricity as about 16 mid-sized nuclear power stations, the lobby group said.
Governments from India to Chile are promoting sun-based power to satisfy growing energy demand while meeting emission targets. Global installations expanded last year after an equipment glut drove down solar-panel prices, even as European markets slowed following a reduction in state subsidies.
SEIA statement on President Obama's state of the union address
USA: Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA), released the following statement in response to President Obama’s State of the Union Address to Congress:
“In tonight’s State of the Union Address, President Obama laid out a vision for the American energy economy that is in line with what SEIA is working to achieve – a robust clean energy industry that powers our homes and businesses while growing our economy and protecting our environment. Energy is a primary input to our nation’s economic system, so it’s appropriate that President Obama is placing emphasis on developing our nation’s robust clean energy resources to help rebuild the nation’s economy.
“We are especially encouraged by the president’s commitment to securing America’s place as a leader in clean energy innovation throughout the world. President Obama understands that the stakes are high and we must not fall behind other nations as the world shifts to emissions-free clean energy technologies like solar.
“We thank President Obama for his leadership and look forward to continuing to work with Congress and the White House to make solar an increasingly-important component of the nation’s energy portfolio.”
“In tonight’s State of the Union Address, President Obama laid out a vision for the American energy economy that is in line with what SEIA is working to achieve – a robust clean energy industry that powers our homes and businesses while growing our economy and protecting our environment. Energy is a primary input to our nation’s economic system, so it’s appropriate that President Obama is placing emphasis on developing our nation’s robust clean energy resources to help rebuild the nation’s economy.
“We are especially encouraged by the president’s commitment to securing America’s place as a leader in clean energy innovation throughout the world. President Obama understands that the stakes are high and we must not fall behind other nations as the world shifts to emissions-free clean energy technologies like solar.
“We thank President Obama for his leadership and look forward to continuing to work with Congress and the White House to make solar an increasingly-important component of the nation’s energy portfolio.”
Global wind energy capacity grows 19 per cent in 2012
CANADA: The Global Wind Energy Council (GWEC) recently released its 2012 market statistics, showing continued expansion of the market, with global installed wind energy capacity increasing by 19 per cent in 2012 to 282,000 MW.
Canada remains a global wind energy leader as it experienced the 9th largest increase in installed capacity in 2012 (936 MW). Both China and the United States, the world's wind energy leaders, installed more than 13,000 MW of new capacity in 2012.
"While China paused for breath, both the US and European markets had exceptionally strong years," said Steve Sawyer , Secretary General of GWEC. "Asia still led global markets, but with North America a close second, and Europe not far behind."
Canada now ranks 9th globally in total installed capacity with more than 6,500 MW of wind energy in operation - providing enough power to meet the annual needs of almost 2,000,000 Canadian homes. Ontario is the Canadian leader in the production of clean wind energy with more than 2,000 MW of installed capacity now supplying over 3 per cent of the province's electricity demand.
Both Ontario and Quebec will lead the country with new installations of clean wind energy in 2013 as the Canadian Wind Energy Association (CanWEA) expects to see a record year for new installations with the addition of almost 1,500 MW of new capacity - driving over $3 billion in new investments.
The growth of wind energy development in Ontario and Quebec continues to have strong public support. A 69 per cent majority of Ontarians agreed "Ontario should be a leader in wind and solar energy production", compared to only 20 per cent that disagreed, according to the results of a January Oracle Research poll commissioned by CanWEA. Eleven per cent of respondents were neutral on the issue.
The same poll also found that solar and wind energy scored highest in a top-of-mind question about Ontarians' preferred choice for new electricity generation. A February 9 public opinion poll (available in French only) published in Quebec's Le Devoir newspaper showed 79 per cent of respondents support continued wind energy development in that province.
"Wind energy continues to enjoy strong majority support as a choice for new electricity generation in Ontario and Quebec because it is understood to be both good for the environment and a provider of significant economic benefits for local economies that host developments," said Robert Hornung , president of CanWEA. "Less well known is the fact that wind energy is also now cost-competitive with virtually every option for new electricity generation. It is for these reasons that wind energy continues to be the fastest growing mainstream source of electricity in the world."
The rapid growth of wind energy in Canada is also reflected south of the border where the American wind industry had its best year ever in 2012, with more than 13,000 MW installed. The extension of the Production Tax Credit (PTC) in the US means that although the market will slow substantially in 2013, it is unlikely to be as much of a slowdown as originally expected, said Sawyer.
Other highlights from the global annual market update include:
* Mexico more than doubled its installed capacity, installing 801 MW for a total of 1,370 MW joining the list of countries (now 24) with more than 1,000 MW of wind power capacity.
* European markets, led by Germany and the UK, with surprising contributions from 'emerging markets' in Sweden, Romania, Italy and Poland, accounted for 12.4 GW last year, a new record.
* Both the Chinese and Indian markets slowed somewhat in 2012, but their annual installations still came in at 13.2 and 2.3 GW respectively.
* Brazil led the Latin America market with 1,077 MW, to bring its total installed capacity to just over 2,500 MW, and Australia accounted for all of the new installations in the Pacific region, with 358 MW of new capacity in 2012 for a cumulative total of 2,584 MW.
Canada remains a global wind energy leader as it experienced the 9th largest increase in installed capacity in 2012 (936 MW). Both China and the United States, the world's wind energy leaders, installed more than 13,000 MW of new capacity in 2012.
"While China paused for breath, both the US and European markets had exceptionally strong years," said Steve Sawyer , Secretary General of GWEC. "Asia still led global markets, but with North America a close second, and Europe not far behind."
Canada now ranks 9th globally in total installed capacity with more than 6,500 MW of wind energy in operation - providing enough power to meet the annual needs of almost 2,000,000 Canadian homes. Ontario is the Canadian leader in the production of clean wind energy with more than 2,000 MW of installed capacity now supplying over 3 per cent of the province's electricity demand.
Both Ontario and Quebec will lead the country with new installations of clean wind energy in 2013 as the Canadian Wind Energy Association (CanWEA) expects to see a record year for new installations with the addition of almost 1,500 MW of new capacity - driving over $3 billion in new investments.
The growth of wind energy development in Ontario and Quebec continues to have strong public support. A 69 per cent majority of Ontarians agreed "Ontario should be a leader in wind and solar energy production", compared to only 20 per cent that disagreed, according to the results of a January Oracle Research poll commissioned by CanWEA. Eleven per cent of respondents were neutral on the issue.
The same poll also found that solar and wind energy scored highest in a top-of-mind question about Ontarians' preferred choice for new electricity generation. A February 9 public opinion poll (available in French only) published in Quebec's Le Devoir newspaper showed 79 per cent of respondents support continued wind energy development in that province.
"Wind energy continues to enjoy strong majority support as a choice for new electricity generation in Ontario and Quebec because it is understood to be both good for the environment and a provider of significant economic benefits for local economies that host developments," said Robert Hornung , president of CanWEA. "Less well known is the fact that wind energy is also now cost-competitive with virtually every option for new electricity generation. It is for these reasons that wind energy continues to be the fastest growing mainstream source of electricity in the world."
The rapid growth of wind energy in Canada is also reflected south of the border where the American wind industry had its best year ever in 2012, with more than 13,000 MW installed. The extension of the Production Tax Credit (PTC) in the US means that although the market will slow substantially in 2013, it is unlikely to be as much of a slowdown as originally expected, said Sawyer.
Other highlights from the global annual market update include:
* Mexico more than doubled its installed capacity, installing 801 MW for a total of 1,370 MW joining the list of countries (now 24) with more than 1,000 MW of wind power capacity.
* European markets, led by Germany and the UK, with surprising contributions from 'emerging markets' in Sweden, Romania, Italy and Poland, accounted for 12.4 GW last year, a new record.
* Both the Chinese and Indian markets slowed somewhat in 2012, but their annual installations still came in at 13.2 and 2.3 GW respectively.
* Brazil led the Latin America market with 1,077 MW, to bring its total installed capacity to just over 2,500 MW, and Australia accounted for all of the new installations in the Pacific region, with 358 MW of new capacity in 2012 for a cumulative total of 2,584 MW.
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