Grid Parity is the point at which renewables become cost-competitive with traditional grid power--making it the Holy Grail for clean technology. With that in mind, the Green Chip team presents the Grid Parity blog... chronicling the technology advancements and policies that will get us there.
As of Thursday, November 19, India has an official plan for building an extensive solar power network throughout one of the world's top developing countries.
With $19 billion in planned spending, the cabinet is directing the national political and corporate leadership to put more than a gigawatt of installed capacity in place by 2012. The pace of the rollout will have to pick up quickly, since the government is targeting 20 GW of solar generating capacity by 2022.
The plan will go into effect over three phases, using power purchase agreements (PPA) to stabilize demand while driving local production prices down. India's goal, as with China's own solar energy plan, is to develop top-to-bottom solutions for domestic industrial expansion. Quite simply, these emerging markets have their sights set on energy independence and international prominence in clean energy.
You can read about some of the international solar power stocks that will benefit from a broad-based global solar rollout, right here:
-Sam Hopkins
A few weeks ago, I told you that the Chinese had marched into the Lone Star State with $1.5 billion for a 600+ megawatt wind farm.
Then, a few days later, I told you that Senator Charles Schumer (D-N.Y.) wanted the Obama administration to reject an expected request for stimulus funding for this particular wind project because it could end up generating Chinese jobs - not U.S. jobs. According to the Senator, if approved, the funds would be used to buy turbines and other components made in a Chinese plant.
Well, yesterday we found out that the turbine manufacturer for this project, A-Power Energy Systems, is now going to build a turbine production facility in the U.S.
Expected to employ about 1,000 U.S. workers, the new plant will produce more than 1,000 megawatts per year.
I realize there will still be some folks upset over the fact that a U.S. turbine manufacturer is not being used for this project. But if the Chinese are willing to come here and do something we could've started doing years ago - so be it.
That being said, it should also be noted that according to Energy Secretary Steven Chu, companies that have supplied turbines to funded farms had U.S. plants and the farms are in the U.S. - thereby creating local installation jobs and tax revenue. He also cited an industry statistic that indicated 53% of the value of turbine parts installed under the stimulus program were American-made.
Jeff
So it looks like Arizona has been chosen as the location for Suntech's first U.S. manufacturing plant.
Located in Phoenix, initial production capacity will come in at 30 megawatts. Production is expected to start in Q3, 2010.
This particular plant is expected to employ 75 full-time workers.
Also in solar, industry research firm iSupply updated its forecast on the oversupply of solar panels, stating that the glut could be resolved next year. Initially iSupply forecast the oversupply to last throughout 2010.
Of course, based on strong demand in Germany, and new subsidy-driven demand in the U.S. and China, we're not surprised. It doesn't take a rocket scientist to look at the subsidies in the U.S. and China and realize that any solar glut will be short-lived.
And finally, the Spanish government announced on Friday that it plans to bring 8.8 gigawatts of renewable energy generating capacity online by 2012. 5.3 gigawatts will come from wind, and 1.5 gigawatts will come from solar.
Jeff
On Tuesday, the small town of Milford, Utah played host to a renewable energy watershed event of national importance.
First Wind, based in Boston, has finished building Utah's largest wind energy array near Milford.
From Massachusetts to rural Utah to Southern California, the Milford Wind Corridor buildout will advance the interests of First Wind, other connected companies like Wisconsin's engineering and construction firm RMT, and important local governments with ambitious clean energy targets.
The 203.5 MW wind farm led to $86 million in total spending and created hundreds of jobs during its first phases, and ongoing maintenance & operations will provide employment and energy security to the Milford area and the wind farm's customers.
As it happens, Utah's biggest city—Salt Lake City—is not the primary city-level consumer base that First Wind has lined up to tap its new western capacity.
The 97 turbines at Milford will generate power for the Southern California Public Power Authority under a 20-year purchasing power agreement (PPA) that guarantees energy to the SoCal grid and revenue to First Wind.
The city utilities of Pasadena and Burbank are also directly involved in the Milford project, and all parties involved are proving that top wind energy companies can be connected to hungry power markets and can be financed amply—Royal Bank of Scotland arranged $376 million in project financing for First Wind and its partners.
We'll keep you up to date with this important step in making the cities of the Southwest cleaner and less prone to power outages.
-Sam Hopkins
For those who oppose any kind of meaningful action on global climate change, consider the latest findings on the cost of inaction.
According to the International Energy Agency (IEA), the world will have to spend an extra $500 billion to cut carbon emissions for each year it delays implementing serious action on global warming. This would be on top of the $10.5 trillion investment needed from 2010 to 2030 to boost renewable energy development and improve energy efficiency.
Of that $10.5 trillion, the IEA states that about 45 percent, or $4.7 trillion in investment will be in transportation. Just one more reason we continue to remain so bullish on the electrification of our transportation infrastructure, mass transit and high speed rail.
The IEA report also pointed out that to continue current trends of energy demand and burning fossil fuels would lead almost certainly to massive climate change and irreparable damage to the planet.
Of course, if the international community does take significant and decisive action on climate change, the IEA scenario shows that - in regards to transportation - by 2030, conventional internal combustion engines will represent only about 40 percent of vehicle sales, with hybrids taking up 30 percent, and the rest being taken up by plug-in hybrids and electric vehicles.
We remain bullish on the premise that the international community does move forward - despite heavy lobbying that seeks to deter or at least slow progress on climate change legislation. There's too much at stake - politically, environmentally and economically - to assume otherwise.
Jeff
The California Public Utilities Commission (CPUC) has issued its quarterly staff report on California's Renewable Portfolio Standard (RPS).
According to the report, more renewable energy generation came online in 2008 than in the entire 2003-2007 time period. And forecasts show that new installed capacity in 2009 will almost match the amount that came online in 2008.
And Sanyo announced yesterday that it's planning to increase investment in its battery and solar business. This news comes as the company moves closer to being acquired by Panasonic.
With the completion of this expected takeover, Panasonic could become a major player in hybrid car batteries and solar power.
Meanwhile, now that Sanyo is making more of its own silicon and initiating other strategic moves, the company could be able to cut the cost of its solar panels by as much as 33 percent by the end of next year.
Jeff
Earlier this week I told you that China marched into the Lone Star State with $1.5 billion for a 600+ megawatt wind farm. The project is actually a joint venture with Cielo Wind Power, U.S. Renewable Energy Group, and Shenyang Power Group. When completed, it will supply enough power for about 180,000 homes.
Well, now it looks like Senator Charles Schumer (D-N.Y.), wants the Obama administration to reject an expected request for stimulus funding for this particular wind project because it could end up generating Chinese jobs - not U.S. jobs. According to the Senator, if approved, the funds would be used to buy turbines and other components made in a Chinese plant.
Certainly I agree that stimulus money should be provided for projects that create domestic jobs (especially in the manufacturing sector). But it will be interesting to see how this one plays out.
I suspect that part of the whole deal hinged on Chinese manufacturer, A-Power Generation Systems providing the turbines. And I can't imagine the Chinese will set up manufacturing facilities in the U.S. just for this one project.
It's actually quite frustrating when you think about it. After all, we have fantastic wind resources in Texas, yet at this point, the only folks willing to pony up the cash to develop this particular project are in China.
Don't get me wrong. If China wants to invest in these projects (and make huge profits) because we can't seem to get it done - so be it. Because the bottom line is that we need to build out our renewable energy mix and strengthen our electric infrastructure now. Not tomorrow. And if China's willing to step in because we won't - well, that's on us.
And don't kid yourself. China already has a huge stake in all of this anyway. Whether through turbines, solar panels and batteries or the rare earth elements that are necessary to build these things - China's influence on OUR energy economy is real...and it's massive.
Of course, it's no secret that the opportunity for renewable energy development in the U.S. is huge. And if a Chinese company wants to invest in a Texas wind farm or set up shop here in the United States, and use domestic workers to manufacture this stuff - I'm all for it. Certainly that's what companies like Vestas, Gamesa and Siemens have done.
But with unemployment likely to remain at unacceptable levels for years to come, we can't afford to lose out on a single job.
That being said, if we don't get our act together soon and start getting aggressive on providing the necessary funding and manufacturing for our own renewable energy development - rest assured, someone else will. With or without stimulus funds.
Jeff
Well, I can't say I'm surprised.
Climate Change legislation on the Hill has proven to be exactly what we should have expected all along - a partisan bickering match comparable to playground scuffles I recall from my elementary school days.
On cue, the Republicans moved to boycott this week's work session on a climate change bill, stating that they want more time to study the EPA's economic analysis. Interestingly enough, these folks had nothing to say when the Bush Administration used the EPA as a pawn in the game of delaying serious climate change debate. But you know how it is - it's all politics.
Certainly we saw much of this kind of behavior from the Democrats during the Bush years. It's really not much different.
That being said, the request for more time to review the EPA's economic analysis is nothing more than a stall tactic. There has been plenty of time for everyone to review the EPA's findings. They're just not happy with the results because the results further erode the argument that climate change initiatives will put us in the poor house. It's not true, and anyone who wants to be honest about this, knows it's not true.
Of course, I won't lie. This whole cap and trade concept plays out as a very complex system that seeks to achieve a goal which can be achieved without it.
The best way to reduce greenhouse gas emissions is to go full force on renewable energy and transportation alternatives (like electric vehicles and rail), cut all subsidies for the petroleum industry (don't think for a second that what you're paying at the pump is the appropriate price for that gasoline) and figure in ALL environmental costs in any type of power production. Some folks want to roll their eyes at that one. So come talk to me after the last bit of remaining fresh water we have has been polluted by tar sands operations and mercury pollution from coal-fired power plants.
Listen: We can sit here all day and debate energy costs. But when the air's toxic and the water is no longer safe to drink - debate on energy costs will be irrelevant. Just ask the Chinese. Not only are they pouring billions into renewable energy development, but they're also funding new renewable energy operations here in the U.S.
And what are we doing? Oh, we're playing partisan games, telling folks that requiring utilities to cut their carbon emissions will hurt the economy.
No my friends. What hurts the economy is our continued reliance on oil, the never-ending environmental costs involved with our reliance on coal-fired power, and the continued utilization of a crumbling infrastructure.
And let's not back away from the real issue here. Any costs related to any kind of pollution stemming from power production should be considered operational costs anyway. If you make a mess, you clean it up. If it ends up costing the consumer more. . .well guess what - that's the price of power.
We've become dangerously accustomed to insanely cheap power because for far too long these costs have been externalized. But they still exist. They didn't just disappear because some politician handed off the problem to someone else. And maybe it's about time we pay the REAL cost for power production, anyway. After all, this would certainly encourage alternatives. And in the long run, we'll all be better off economically.
Think about it: The costs of producing and burning fossil fuels will only continue to go up. But the costs for renewable energy will continue to fall for decades.
It's about investing in the future, folks. It's about not being OK with complacency and handing off this burden to future generations.
Enough with partisan dust storms. Enough with misinformation campaigns and political prejudices. Enough with denials.
The future is going to be powered by renewables. Conventional fossil fuels are extreme environmental and economic strains. And anyone who's willing to look at this honestly - without the influence of political motives - knows this is true.
So the choice is ours. Continue walking down the path of complacency while the rest of the world embraces progress, or take a stand for future economic and environmental prosperity. But make no mistake, if we miss this opportunity, we're dead in the water in twenty years. A second-rate nation with a great history of accomplishments, but one major, game-changing regret.
Jeff
Sign up for the FREE
Green Chip Review e-Letter:
You'll immediately receive Wind Energy Investments--our breakthrough report from alternative energy expert Jeff Siegel.
Your privacy is assured.
Get your FREE copy of Jeff Siegel's new book, Investing in Renewable Energy: Making Money on Green Chip Stocks. Click here now.
The Plunge Protection Team's Historic "Tip-Off"
Some people think the PPT is an Oliver Stone-style conspiracy theory.
Yet this secretive group is as real as the day is long.
And they recently leaked investors to another bombshell of an opportunity... the fuse, of which, has just been lit.
Click here to learn more about the Plunge Protection Team -- and the once-in-a-lifetime money-making opportunity behind it.
Subscribe to