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.
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
United States Commerce Secretary Gary Locke said on Thursday that China is moving to allow more parts from foreign manufacturers to be included in the Middle Kingdom's domestic wind power projects.
As it stands, Beijing requires that 70% of the components in wind energy turbines erected around China be produced by factories within the country.
Locke couldn't say exactly when the rule would change, but after the 20th U.S.-China Joint Commission on Commerce and Trade, America's top industrial diplomat did indicate that a policy shift is on the way.
That will be a boon to American wind energy component producers like American Superconductor (NASDAQ:AMSC), whose stock rose by over 10% in the week from October 26, compared to a 3% decline for the S&P 500.
China's loosening of domestic manufacturing requirements for wind power is also part of a bi-national wind power exchange that involves companies of all sizes.
In Texas, a consortium just announced a $1.5 billion Sino-American joint venture between Shenyang Power Group, Cielo Wind Power, and the U.S. Renewable Energy Group, a private equity fund. That collaborative effort will bring turbines from China to the Lone Star State via Chinese turbine maker A-Power Energy (NASDAQ:APWR).
Look for more news soon on the growing exchange in U.S. and Chinese wind power infrastructure expansion and the wind power stocks that could profit.
-Sam Hopkins
Global acres —acres that have been adjusted according to world average biomass productivity to be compared across regions— are used to generate our ecological footprint on the planet. The're determined and compared after computing our ecological footprint in relation to the world's biocapacity. Each global acre corresponds to one acre of biologically productive space with world average productivity.
To determine the world's biocapacity, the amount of water, food, fiber, timer, and carbon sequestration provided by the Earth in a single year is measured and converted to a land area in global acres. To determine our ecological footprint, how much water, food, fiber, and timber we consume plus how much carbon we emit is measured and compared to the first number. These results are then converted to a land area in global acres. When the two are compared, our ecological footprint emerges.
According to the most recent 2009 estimates, our total world ecological footprint is 40% higher than the world's biocapacity. This is not an encouraging statistic.
Unfortunately, this number means we are consuming resources faster than they are being regenerated, and are now depleting the earth's natural capital. If we continue at this pace, we will eventually destroy the only assets we have without the option of regeneration. Well known examples of this destruction include the disappearing forests, falling water tables, and eroding soils. A key factor in the disappearance of many things is climate change, also affected by our ecological footprint.
We've all been paying attention to the warnings associated with the depletion of our resources, yet the statistics of consumption, particularly in America, continue to skyrocket. WWF's Living Planet Report puts the United States as the world's worst culprit per-capita after the United Arab Emirates. To put it into a greater perspective, North America's ecological footprint is the largest of any continent in the world, almost doubling the ecological footprint of Europe.
However, while the United States has been a major contributor to this rising issue, we have also taken many initiatives to develop innovative technology hoping to reverse this trend. Yet the battle has just begun.
The best way to reduce our ecological footprint is to improve the efficiency with which goods and services are provided, reduce per capita consumption of goods and services, and increase overall biocapacity by conserving and restoring ecosystems before all of our resources are permanently destroyed.
Until next time,
—Emily
Yesterday afternoon at the Solar Power International Conference, Solar Energy Industries Association CEO Rhone Resch, announced a Solar Bill of Rights. I thought it was exceptional, so I decided to pass it along to you today.
Here's what Resch delivered. . .
"We declare these rights not on behalf of our companies, but on behalf of our customers and our country. We seek no more than the freedom to compete on equal terms and no more than the liberty for consumers to choose the energy source they think best."
1. Americans have the right to put solar on their homes or businesses Restrictive covenants, onerous connection rules, and excessive permitting and inspections fees prevent many American homes and businesses from going solar.
2. Americans have the right to connect their solar energy system to the grid with uniform national standards. This should be as simple as connecting a telephone or appliance. No matter where they live, consumers should expect a single standard for connecting their system to the electric grid.3. Americans have the right to Net Meter and be compensated at the very least with full retail electricity rates. When customers generate excess solar power utilities should pay them consumer at least the retail value of that power.
4. The solar industry has the right to a fair competitive environment. The highly profitable fossil fuel industries have received tens of billions of dollars for decades. The solar energy expects a fair playing field, especially since the American public overwhelmingly supports the development and use of solar.
5. The solar industry has the right to equal access to public lands. America has the best solar resources in the world, yet solar companies have zero access to public lands compared to the 45 million acres used by oil and natural gas companies.
6. The solar industry has the right to interconnect and build new transmission lines. When America updates its electric grid, it must connect the vast solar resources in the Southwest to population centers across the nation.
7. Americans have the right to buy solar electricity from their utility. Consumers have no choice to buy clean, reliable solar energy from their utilities instead of the dirty fossil fuels of the past.
8. Americans have the right, and should expect, the highest ethical treatment from the solar industry. Consumers should expect the solar energy industry to minimize its environmental impact, provide systems that work better than advertised, and communicate incentives clearly and accurately.
This is great stuff!!!
Jeff
So it looks like the government is going to pony up $3.4 billion in grants for smart grid development.
In an effort to help consumers save money on electric bills, reduce blackouts and move a wealth of new wind and solar, these grants will go to 100 companies, utilities, manufacturers, cities and various other partners in 49 states.
The winning companies have also secured another $4.7 billion in private investment, bringing the total to $8.1 billion in total smart grid investments.
And in wind news, SeaEnergy announced today that it's looking to build offshore wind farms in Taiwan with energy project developer, Taiwan Generations Corporation.
The two companies will start with an offshore wind farm on the west coast of Taiwan, which will have a capacity of up to 600 megawatts.
Taiwan currently has a renewable energy target of 15 percent by 2025.
Jeff
N-Vision Energy has announced it will invest up to $210.5 million to build a 100 MW wind farm in Bulgaria.
The wind farm, which will be the second largest in Bulgaria (the largest is a 156 MW farm on the northern Black Sea coast), is going to be built about 42 miles south of Sofia. Operations are expected to begin in 2011.
And in solar news, the ENN Group has signed an agreement with Duke Energy to register a joint venture with the goal of becoming a PV systems provider in the U.S. The JV will focus on utility-scale solar farms and commercial distributed generation projects.
ENN operates China's first silicon thin-film photovoltaic module production line. The company's capacity has reached 70 megawatts, although expansion plans are expected to take capacity to 500 megawatts over the next two years.
Jeff
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