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Friday, August 5, 2011
Thursday, July 28, 2011
Friday, July 22, 2011
Fiscal deficit forces Spain to slash renewable energy subsidies
Fiscal deficit forces Spain to slash renewable energy subsidies
In March 2007, European Union members agreed that 20% of energy needs will be sourced from renewable energy by 2020. Many EU governments reacted by pouring billions of euros in subsidies into their wind- and solar-energy industries. Yet in Spain, at least, the financial crisis that began in 2008 has exposed serious shortcomings in renewable-energy support policies, giving ammunition to critics who argue that both the wind and solar power sectors would not be viable without government subsidies.
Spain subsidizes renewable energy using ‘feed-in tariffs’, a subsidy mechanism whereby utility companies are legally obliged to purchase the available renewable energy at special above-market rates before they can purchase energy at market prices. Such policies typically guarantee operators of renewable-energy plants above-market rates for 10 or more years in order to increase investor confidence. According to the IEA, it is also good practice for a feed-in tariff to gradually offer lower rates year-on-year for new investments, taking into account cost reductions as technologies mature.
Currently, wind power operators in Spain can choose to sell their energy at either a feed-in tariff rate of €77 (US$ 98 ) per megawatt-hour (MWh) or the market price plus a premium of €30 (US$ 38) per MWh, up to a maximum of €90 (US$ 114) per MWh. The payments are guaranteed for the entire lifetime of the system, although tariffs are reduced a little after the first 20 years of operation. There is no pre-set schedule lowering tariffs for new investments as the technology matures.
Initially, solar power producers could sell their energy at a feed-in tariff rate set at €440 (US$ 565) per MWh, although after the onset of the financial crisis in 2008 this was lowered for any new projects to €259 (US$ 329) per MWh. Payments are again guaranteed for the lifetime of the systems, with slight reductions to the tariffs being made after a longer period than wind, 25 years. According to the IEA, feed-in tariffs are adjusted every quarter for new systems.
By comparison, the market price for electricity, which is set by the cost of energy sources such as natural gas, has been under €45 (US$ 57) per MWh for the last couple of years. This makes Spain one of the biggest renewable-energy subsidizers on the continent.
The feed-in tariffs have been very effective at boosting capacity in Spain, transforming the country into a world leader in wind and solar electricity production in just a few short years. In 2008 Spain accounted for half of the world’s new solar energy installations by wattage. Today it boasts the world’s largest renewable energy company, Valencia-based Iberdrola Renovables, which operates wind farms throughout Europe and the Americas. The heavy investment has also put it on track to meet the EU’s 20% renewable energy target by 2020. In fact, according to figures published by El País, Spain was already producing 20% of its electricity through wind and solar power in 2009.
But the crisis and subsequent European sovereign-debt-default scare has recently forced the government in Madrid to drastically cut spending by, among other things, reviewing its significant expenditure on renewable energy. In 2009 alone the country had spent an estimated €3.2 billion (US$ 4.1 billion) subsidizing solar and wind power.
The strain on government revenue is in part due to the way Spain has designed its feed-in tariff system. Usually, this type of subsidy is paid for by utilities charging more for the electricity they sell to consumers, to cover the cost of buying renewable energy at above-market prices. Therefore no money is actually paid out of government revenues: consumers bear the cost directly by paying higher electricity bills. In Spain, however, the price of electricity has been kept artificially low since 2000. The burden has been shouldered by utilities, which have been operating at a loss on the basis of a government guarantee to eventually pay them back. The sum of this so-called ‘tariff deficit’ has accumulated to over €16 billion (US$ 20 billion) since 2000. For comparison, Spain’s deficit in 2009 was around €90 billion (US$ 116 billion) in 2009 and its accumulated debt around €508 billion (US$ 653 billion).
Due to this growing cost and the need to cut spending, Spain’s ruling Socialist Worker’s Party launched negotiations with the wind- and solar-power sectors earlier this year over cuts to feed-in tariffs. In July, the government managed to reach an agreement with the wind-power sector under which it will cut the top-up rate to wind energy producers by 35% until 2013, a move that could save the country as much as €1.3 billion (US$ 1.6 billion), according to Spanish daily El Mundo.
It has been more difficult to reach an agreement with the solar power sector, which is much more heavily subsidized due to its higher feed-in tariff rate. In 2009, the solar power industry received over €2.6 billion (US$ 3.3 billion) though it supplied only 2% of Spain’s electricity, while wind received €600 million (US$ 764 million) for supplying 18% of the country's electricity.
Having already cut tariffs for new projects in 2008, the Spanish government announced in May of this year that it would again be reviewing subsidies to the solar-power industry, launching rumors that retroactive cuts were being considered, which sent shockwaves through the sector and froze new investment.
After failing to reach an agreement, on 31 July the government announced plans for a further 45% cut in the feed-in tariff for new ground solar installations, the plant-type which currently makes up the majority of solar capacity in Spain. The government is also considering a cap on the amount of electricity that solar companies can sell to utilities, a change which would be retroactive.
Subsidy Watch spoke to Juan Laso, president of the Asociación Empresarial Fotovoltaica (the Photovoltaic Industry Association), who said that the reason that billions of euros had been invested in solar parks throughout the country was because Spain had guaranteed the fixed feed-in tariffs to solar-power producers for 25 years. He argued that the proposed cuts would render existing investments unprofitable and, given that most of the costs associated with solar-power production are paid up-front, could lead to many solar-power companies going bankrupt and defaulting on investment loans.
It is not clear what the future bears for Spain’s once-promising solar-power industry now that investor confidence has clearly been shaken, one of the cardinal sins of a good renewables support policy. It also seems evident that despite the best of intentions regarding environmental sustainability, subsidies to renewables can be economically unsustainable if they are not well-designed – to both the detriment of the public purse and the development of a future, low-carbon energy supply.
In March 2007, European Union members agreed that 20% of energy needs will be sourced from renewable energy by 2020. Many EU governments reacted by pouring billions of euros in subsidies into their wind- and solar-energy industries. Yet in Spain, at least, the financial crisis that began in 2008 has exposed serious shortcomings in renewable-energy support policies, giving ammunition to critics who argue that both the wind and solar power sectors would not be viable without government subsidies.
Spain subsidizes renewable energy using ‘feed-in tariffs’, a subsidy mechanism whereby utility companies are legally obliged to purchase the available renewable energy at special above-market rates before they can purchase energy at market prices. Such policies typically guarantee operators of renewable-energy plants above-market rates for 10 or more years in order to increase investor confidence. According to the IEA, it is also good practice for a feed-in tariff to gradually offer lower rates year-on-year for new investments, taking into account cost reductions as technologies mature.
Currently, wind power operators in Spain can choose to sell their energy at either a feed-in tariff rate of €77 (US$ 98 ) per megawatt-hour (MWh) or the market price plus a premium of €30 (US$ 38) per MWh, up to a maximum of €90 (US$ 114) per MWh. The payments are guaranteed for the entire lifetime of the system, although tariffs are reduced a little after the first 20 years of operation. There is no pre-set schedule lowering tariffs for new investments as the technology matures.
Initially, solar power producers could sell their energy at a feed-in tariff rate set at €440 (US$ 565) per MWh, although after the onset of the financial crisis in 2008 this was lowered for any new projects to €259 (US$ 329) per MWh. Payments are again guaranteed for the lifetime of the systems, with slight reductions to the tariffs being made after a longer period than wind, 25 years. According to the IEA, feed-in tariffs are adjusted every quarter for new systems.
By comparison, the market price for electricity, which is set by the cost of energy sources such as natural gas, has been under €45 (US$ 57) per MWh for the last couple of years. This makes Spain one of the biggest renewable-energy subsidizers on the continent.
The feed-in tariffs have been very effective at boosting capacity in Spain, transforming the country into a world leader in wind and solar electricity production in just a few short years. In 2008 Spain accounted for half of the world’s new solar energy installations by wattage. Today it boasts the world’s largest renewable energy company, Valencia-based Iberdrola Renovables, which operates wind farms throughout Europe and the Americas. The heavy investment has also put it on track to meet the EU’s 20% renewable energy target by 2020. In fact, according to figures published by El País, Spain was already producing 20% of its electricity through wind and solar power in 2009.
But the crisis and subsequent European sovereign-debt-default scare has recently forced the government in Madrid to drastically cut spending by, among other things, reviewing its significant expenditure on renewable energy. In 2009 alone the country had spent an estimated €3.2 billion (US$ 4.1 billion) subsidizing solar and wind power.
The strain on government revenue is in part due to the way Spain has designed its feed-in tariff system. Usually, this type of subsidy is paid for by utilities charging more for the electricity they sell to consumers, to cover the cost of buying renewable energy at above-market prices. Therefore no money is actually paid out of government revenues: consumers bear the cost directly by paying higher electricity bills. In Spain, however, the price of electricity has been kept artificially low since 2000. The burden has been shouldered by utilities, which have been operating at a loss on the basis of a government guarantee to eventually pay them back. The sum of this so-called ‘tariff deficit’ has accumulated to over €16 billion (US$ 20 billion) since 2000. For comparison, Spain’s deficit in 2009 was around €90 billion (US$ 116 billion) in 2009 and its accumulated debt around €508 billion (US$ 653 billion).
Due to this growing cost and the need to cut spending, Spain’s ruling Socialist Worker’s Party launched negotiations with the wind- and solar-power sectors earlier this year over cuts to feed-in tariffs. In July, the government managed to reach an agreement with the wind-power sector under which it will cut the top-up rate to wind energy producers by 35% until 2013, a move that could save the country as much as €1.3 billion (US$ 1.6 billion), according to Spanish daily El Mundo.
It has been more difficult to reach an agreement with the solar power sector, which is much more heavily subsidized due to its higher feed-in tariff rate. In 2009, the solar power industry received over €2.6 billion (US$ 3.3 billion) though it supplied only 2% of Spain’s electricity, while wind received €600 million (US$ 764 million) for supplying 18% of the country's electricity.
Having already cut tariffs for new projects in 2008, the Spanish government announced in May of this year that it would again be reviewing subsidies to the solar-power industry, launching rumors that retroactive cuts were being considered, which sent shockwaves through the sector and froze new investment.
After failing to reach an agreement, on 31 July the government announced plans for a further 45% cut in the feed-in tariff for new ground solar installations, the plant-type which currently makes up the majority of solar capacity in Spain. The government is also considering a cap on the amount of electricity that solar companies can sell to utilities, a change which would be retroactive.
Subsidy Watch spoke to Juan Laso, president of the Asociación Empresarial Fotovoltaica (the Photovoltaic Industry Association), who said that the reason that billions of euros had been invested in solar parks throughout the country was because Spain had guaranteed the fixed feed-in tariffs to solar-power producers for 25 years. He argued that the proposed cuts would render existing investments unprofitable and, given that most of the costs associated with solar-power production are paid up-front, could lead to many solar-power companies going bankrupt and defaulting on investment loans.
It is not clear what the future bears for Spain’s once-promising solar-power industry now that investor confidence has clearly been shaken, one of the cardinal sins of a good renewables support policy. It also seems evident that despite the best of intentions regarding environmental sustainability, subsidies to renewables can be economically unsustainable if they are not well-designed – to both the detriment of the public purse and the development of a future, low-carbon energy supply.
PV FiT
San Francisco, Calif., June 22, 2011—Continued government policy adjustments are causing major shifts in the sizes, growth rates and customer segment mix of photovoltaic (PV) markets in 2011, according to the conclusions of three new Regional Downstream PV Market reports issued by Solarbuzz® today.
Specifically, European markets, led by Germany and Italy, have absorbed Feed-In Tariff (FIT) rate cuts of up to one-third between January 1, 2010 and July 1, 2011. These reductions have caused Q1’11 demand in Germany, the world’s largest PV market, to collapse to less than half of its Q1’10 size. In addition, overall European full year demand is expected to flatten in 2011 after increasing more than 170% from 2009 to 2010. These policy adjustments have particularly hit large ground-mount systems on agricultural land. Even though investment returns across the range of residential and commercial roof-mounted installations remained attractive in 1H’11, end-customers did not start to respond to fast-falling prices until June.
Europe PV Demand Share Slips, While Asia Pacific and US Grow Significantly Over Next Five Years
Europe is now projected to represent 65% of world PV demand in 2011, down from 82% in 2010, while the US will grow from 5% to 9%. The top five Asia Pacific markets led by Japan and China accounted for 11% of global demand in 2010, a share that will grow to 16% in 2011. The market share of these Asia Pacific countries is projected to increase steadily to reach at least 26% by 2015, while the US share rises to 14% by that year. In contrast to the European challenges, PV project pipelines in the US, China and India collectively now stand at a huge 25 gigawatt (GW).
“Project development activity is intense in these countries,” said Craig Stevens, President of Solarbuzz. “Successful delivery of these pipelines will first require a host of incentive mechanisms. Regulatory, financing, project structure and permitting issues must be overcome.”
European distribution margins held up better than expected during 2010 and early 2011, as project margins collapsed, causing a refocusing of business models and channels to market. Europe benefited from sharply lower prices during 1H’11 which, in particular, helped maintain Italian demand impetus. The avoidance of mid-year FIT reductions in Germany will now aid demand recovery in 2H’11. Chinese module supplier prices in Europe were as much as 25% below their European and Japanese competitors back in Q1’10. This discount steadily reduced to a low of only 10% in February 2011. However, it spiked again toward the end of Q2’11.
2010 China PV Demand More than Doubles
In China, domestic demand more than doubled in 2010, with Ningxia and Jiangsu once again the two largest provincial markets, while the utility segment accounted for 49% of the national market. In 2010, China was the second largest market in the Asia Pacific region, second only to a rejuvenated Japan whose 111% Y/Y growth was driven by residential demand, accounting for 82% of the market. Strong solar policy support already in place before the Fukushima nuclear disaster indicates that the Japanese market is projected to grow to between 1.3-1.5 GW in 2011.
Chinese Module Suppliers Gain Share in US Market
In the US, soaring utility demand is redefining end-market, product mix and channels to market. Chinese module manufacturer market share increased to 37% in 2010, led by Suntech Power, Trina Solar and Yingli Solar, with their share building again during Q1’11. In 2010, distribution channel shipment share saw a small drop to 23%, while project developer and direct utility procurement emerged as formidable new channels. In 2011, the US market is projected to reach around 2 GW, growing to as high as 6.4 GW by 2015.
“With the US utility segment projected to soar to 54% of the total market in 2012, significant changes in module supplier, inverter manufacturer, project developer, distributor, and system integrator market shares are likely to occur over the next five years,” added Stevens.
Figure 1. Global Photovoltaic Demand Share in 2010 and 2015 Forecast
Source: Solarbuzz Regional Downstream PV Market
To learn more about the European PV Market 2011, United States PV Market 2011 and Major Asia/Pacific Markets 2011 reports, please contact us at our seven global locations, email us at contact@solarbuzz.com, or call Charles Camaroto at 1.516.625.2452 for more information.
About Solarbuzz
Solarbuzz, part of The NPD Group, is a globally recognized market research business focused on solar energy and photovoltaic industries. Since 2001, Solarbuzz has grown its client-base to include many of the largest global PV manufacturers, major investment banks, equipment manufacturers, materials suppliers, hedge fund companies, and a vast range of other multi-nationals. Solarbuzz offers a wide array of reports, including Marketbuzz, an annual global PV industry report, and Solarbuzz® Quarterly, which details both historical and forecast data on the global PV supply chain. The company’s research also provides annual downstream PV market reports by region for Europe, Asia Pacific and US markets. In addition, Solarbuzz.com is a recognized and respected online resource within the solar industry. For more information, visit www.solarbuzz.com or follow us on Twitter at @Solarbuzz.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit www.npd.com and www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.
Specifically, European markets, led by Germany and Italy, have absorbed Feed-In Tariff (FIT) rate cuts of up to one-third between January 1, 2010 and July 1, 2011. These reductions have caused Q1’11 demand in Germany, the world’s largest PV market, to collapse to less than half of its Q1’10 size. In addition, overall European full year demand is expected to flatten in 2011 after increasing more than 170% from 2009 to 2010. These policy adjustments have particularly hit large ground-mount systems on agricultural land. Even though investment returns across the range of residential and commercial roof-mounted installations remained attractive in 1H’11, end-customers did not start to respond to fast-falling prices until June.
Europe PV Demand Share Slips, While Asia Pacific and US Grow Significantly Over Next Five Years
Europe is now projected to represent 65% of world PV demand in 2011, down from 82% in 2010, while the US will grow from 5% to 9%. The top five Asia Pacific markets led by Japan and China accounted for 11% of global demand in 2010, a share that will grow to 16% in 2011. The market share of these Asia Pacific countries is projected to increase steadily to reach at least 26% by 2015, while the US share rises to 14% by that year. In contrast to the European challenges, PV project pipelines in the US, China and India collectively now stand at a huge 25 gigawatt (GW).
“Project development activity is intense in these countries,” said Craig Stevens, President of Solarbuzz. “Successful delivery of these pipelines will first require a host of incentive mechanisms. Regulatory, financing, project structure and permitting issues must be overcome.”
European distribution margins held up better than expected during 2010 and early 2011, as project margins collapsed, causing a refocusing of business models and channels to market. Europe benefited from sharply lower prices during 1H’11 which, in particular, helped maintain Italian demand impetus. The avoidance of mid-year FIT reductions in Germany will now aid demand recovery in 2H’11. Chinese module supplier prices in Europe were as much as 25% below their European and Japanese competitors back in Q1’10. This discount steadily reduced to a low of only 10% in February 2011. However, it spiked again toward the end of Q2’11.
2010 China PV Demand More than Doubles
In China, domestic demand more than doubled in 2010, with Ningxia and Jiangsu once again the two largest provincial markets, while the utility segment accounted for 49% of the national market. In 2010, China was the second largest market in the Asia Pacific region, second only to a rejuvenated Japan whose 111% Y/Y growth was driven by residential demand, accounting for 82% of the market. Strong solar policy support already in place before the Fukushima nuclear disaster indicates that the Japanese market is projected to grow to between 1.3-1.5 GW in 2011.
Chinese Module Suppliers Gain Share in US Market
In the US, soaring utility demand is redefining end-market, product mix and channels to market. Chinese module manufacturer market share increased to 37% in 2010, led by Suntech Power, Trina Solar and Yingli Solar, with their share building again during Q1’11. In 2010, distribution channel shipment share saw a small drop to 23%, while project developer and direct utility procurement emerged as formidable new channels. In 2011, the US market is projected to reach around 2 GW, growing to as high as 6.4 GW by 2015.
“With the US utility segment projected to soar to 54% of the total market in 2012, significant changes in module supplier, inverter manufacturer, project developer, distributor, and system integrator market shares are likely to occur over the next five years,” added Stevens.
Figure 1. Global Photovoltaic Demand Share in 2010 and 2015 Forecast
Source: Solarbuzz Regional Downstream PV Market
To learn more about the European PV Market 2011, United States PV Market 2011 and Major Asia/Pacific Markets 2011 reports, please contact us at our seven global locations, email us at contact@solarbuzz.com, or call Charles Camaroto at 1.516.625.2452 for more information.
About Solarbuzz
Solarbuzz, part of The NPD Group, is a globally recognized market research business focused on solar energy and photovoltaic industries. Since 2001, Solarbuzz has grown its client-base to include many of the largest global PV manufacturers, major investment banks, equipment manufacturers, materials suppliers, hedge fund companies, and a vast range of other multi-nationals. Solarbuzz offers a wide array of reports, including Marketbuzz, an annual global PV industry report, and Solarbuzz® Quarterly, which details both historical and forecast data on the global PV supply chain. The company’s research also provides annual downstream PV market reports by region for Europe, Asia Pacific and US markets. In addition, Solarbuzz.com is a recognized and respected online resource within the solar industry. For more information, visit www.solarbuzz.com or follow us on Twitter at @Solarbuzz.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit www.npd.com and www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.
Thursday, July 21, 2011
Investor Update - I005 (Grid Connection Point)
We are pleased to annount that I005 has been granted its grid connection point and shall now progress to the next stage.
Monday, July 11, 2011
UK Solar FiT
Commenting on the current state of the UK solar PV market Edwin Koot, Chief Executive of Solarplaza, said: “There are two sides to the UK market today: a buoyant market for domestic and smaller commercial installations that is very competitive, but which will undoubtedly be subject to a reduced tariff from next year; and a large-scale market that’s in a state of shock and depression. But with module prices falling so rapidly, the economics of even large-scale projects can change very quickly. The UK is an interesting place to be involved in solar right now. Manufacturers, installers and investors need to be prepared to react quickly to the opportunities that arise, and to do that they need a very good understanding of the business context.”
Responding to the outcome of the fast-track FiTs review, Shadow Energy Minister Huw Irranca-Davies said: “The announcement on the FiT smacks of a Government strong on words, lacking in action and at odds with its stated aim of being ‘the greenest Government ever’. Minister Greg Barker’s decision to go ahead with the proposed tariff reductions for solar PV installations larger than 50kW hammers a nail into the coffin of many future modest medium-scale community, school and hospital schemes, risking thousands of jobs in an industry that was beginning to flourish, and shows there is no coherent strategy for decentralised energy.”
Meanwhile Ray Noble, solar photovoltaic (PV) specialist at the Renewable Energy Association, blames the Treasury for the outcome of the review. He said, “The UK Government appears in total chaos relating to the future of solar energy all as a result of calamitous mistake by DECC in its previous Comprehensive Spending Review submission to the Treasury. The Treasury will not allow DECC to correct its error and this could seriously affect the rate of growth of solar in the UK. The solar industry is calling on the Prime Minister to intervene.
“The solar industry is reducing prices significantly and is playing its part in moving solar energy in the UK towards being a mainstream electricity generator, the latest predictions show grid parity could be reached before 2017.”
Speaking of what needs to happen now, Juliet Davenport, CEO and founder of 100% renewable electricity supplier Good Energy, said, “Good Energy thinks the Government needs to do a lot more to recognise the important role solar has to play in Britain’s future energy mix. One of the casualties of the FiT review will be community-sized schemes, as well as others involving public buildings such as libraries, schools and hospitals, which all have the potential to contribute to a low-carbon future. Other countries with a similar climate to the UK, such as Germany, have placed solar at the heart of their renewable energy policy and Britain is in danger of being left behind. What is important now is that the Government learns the lessons from the FiT review and develops a clear strategy to support decentralised energy in the UK.”
Responding to the outcome of the fast-track FiTs review, Shadow Energy Minister Huw Irranca-Davies said: “The announcement on the FiT smacks of a Government strong on words, lacking in action and at odds with its stated aim of being ‘the greenest Government ever’. Minister Greg Barker’s decision to go ahead with the proposed tariff reductions for solar PV installations larger than 50kW hammers a nail into the coffin of many future modest medium-scale community, school and hospital schemes, risking thousands of jobs in an industry that was beginning to flourish, and shows there is no coherent strategy for decentralised energy.”
Meanwhile Ray Noble, solar photovoltaic (PV) specialist at the Renewable Energy Association, blames the Treasury for the outcome of the review. He said, “The UK Government appears in total chaos relating to the future of solar energy all as a result of calamitous mistake by DECC in its previous Comprehensive Spending Review submission to the Treasury. The Treasury will not allow DECC to correct its error and this could seriously affect the rate of growth of solar in the UK. The solar industry is calling on the Prime Minister to intervene.
“The solar industry is reducing prices significantly and is playing its part in moving solar energy in the UK towards being a mainstream electricity generator, the latest predictions show grid parity could be reached before 2017.”
Speaking of what needs to happen now, Juliet Davenport, CEO and founder of 100% renewable electricity supplier Good Energy, said, “Good Energy thinks the Government needs to do a lot more to recognise the important role solar has to play in Britain’s future energy mix. One of the casualties of the FiT review will be community-sized schemes, as well as others involving public buildings such as libraries, schools and hospitals, which all have the potential to contribute to a low-carbon future. Other countries with a similar climate to the UK, such as Germany, have placed solar at the heart of their renewable energy policy and Britain is in danger of being left behind. What is important now is that the Government learns the lessons from the FiT review and develops a clear strategy to support decentralised energy in the UK.”
Friday, June 17, 2011
Germany looking strong for investment
German government bonds headed for a second weekly gain as stock markets declined amid concern that Greece will default on its debt, fueling demand for the region’s safest securities.
The 10-year bund yield was within two basis points of a five-month low as Greek Prime Minister George Papandreou failed to win support in parliament for more austerity. The two-year note yield was within two basis points of the lowest since Feb. 22. The MSCI Asia Pacific Index of stocks fell for a third straight day, losing 0.5 percent, while Japan’s Nikkei 225 (NKY) Stock Average index dropped 0.6 percent.
The 10-year bund yield was little changed at 2.92 percent as of 8:17 a.m. in London, down four basis points from June 10. It reached 2.91 percent yesterday, the lowest since Jan. 11. The 3.25 percent security due July 2021 fell 0.035, or 35 euro cents per 1,000-euro ($1,417) face amount, to 102.82. Yields on two- year notes were at 1.45 percent. They dropped to 1.43 percent yesterday.
German government bonds have returned 0.7 percent this year, according to indexes compiled by the European Federation of Financial Analysts Societies and Bloomberg, while Treasuries have returned a gain of 3.4 percent. Greek debt has lost 20 percent, the indexes show.
To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh News at lmnyanda@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
The 10-year bund yield was within two basis points of a five-month low as Greek Prime Minister George Papandreou failed to win support in parliament for more austerity. The two-year note yield was within two basis points of the lowest since Feb. 22. The MSCI Asia Pacific Index of stocks fell for a third straight day, losing 0.5 percent, while Japan’s Nikkei 225 (NKY) Stock Average index dropped 0.6 percent.
The 10-year bund yield was little changed at 2.92 percent as of 8:17 a.m. in London, down four basis points from June 10. It reached 2.91 percent yesterday, the lowest since Jan. 11. The 3.25 percent security due July 2021 fell 0.035, or 35 euro cents per 1,000-euro ($1,417) face amount, to 102.82. Yields on two- year notes were at 1.45 percent. They dropped to 1.43 percent yesterday.
German government bonds have returned 0.7 percent this year, according to indexes compiled by the European Federation of Financial Analysts Societies and Bloomberg, while Treasuries have returned a gain of 3.4 percent. Greek debt has lost 20 percent, the indexes show.
To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh News at lmnyanda@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
Germans scrap FIT reduction
The German government scrapped plans to reduce subsidized power prices paid for photovoltaic energy in July because new installations fell short of the level needed to trigger a cut.
About 700 megawatts of solar modules were installed in March through May and more than 875 megawatts would have been necessary to force a reduction, the Federal Network Agency said today in a statement. Under a law passed in January, the forecast for the year based on these three months needed to be more than 3.5 gigawatts to demand the July cut. Rates are still set to be reduced by as much as 24 percent in January 2012.
“The implications are significant,” Jenny Chase, lead solar analyst at Bloomberg New Energy Finance, said in an e- mail. “Chances are that by postponing the one-off cut, the government will ensure another year of 6 gigawatts to 7 gigawatts, overshooting its target again, and the cut will happen in the third quarter instead.”
Germany, the world’s largest solar market, installed 7.4 gigawatts of solar power last year as developers were spurred by its subsidized rate for clean energy known as a feed-in-tariff. The government had planned in July to advance 3 to 15 percent of the cut scheduled January 2012 to prevent a similar boom.
The new installation figures show that there is no room for further cuts to solar subsidies, according to Carsten Koernig, managing director of BSW, the German solar industry trade group. The industry hopes to install 5 gigawatts of solar capacity in Germany this year, he said by phone today.
To contact the reporters on this story: Marc Roca in London at mroca6@bloomberg.net; Stefan Nicola in Berlin at snicola2@bloomberg.net.
To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.
http://www.bloomberg.com/news/2011-06-16/germany-won-t-cut-subsidies-for-solar-panels-starting-after-july.html
About 700 megawatts of solar modules were installed in March through May and more than 875 megawatts would have been necessary to force a reduction, the Federal Network Agency said today in a statement. Under a law passed in January, the forecast for the year based on these three months needed to be more than 3.5 gigawatts to demand the July cut. Rates are still set to be reduced by as much as 24 percent in January 2012.
“The implications are significant,” Jenny Chase, lead solar analyst at Bloomberg New Energy Finance, said in an e- mail. “Chances are that by postponing the one-off cut, the government will ensure another year of 6 gigawatts to 7 gigawatts, overshooting its target again, and the cut will happen in the third quarter instead.”
Germany, the world’s largest solar market, installed 7.4 gigawatts of solar power last year as developers were spurred by its subsidized rate for clean energy known as a feed-in-tariff. The government had planned in July to advance 3 to 15 percent of the cut scheduled January 2012 to prevent a similar boom.
The new installation figures show that there is no room for further cuts to solar subsidies, according to Carsten Koernig, managing director of BSW, the German solar industry trade group. The industry hopes to install 5 gigawatts of solar capacity in Germany this year, he said by phone today.
To contact the reporters on this story: Marc Roca in London at mroca6@bloomberg.net; Stefan Nicola in Berlin at snicola2@bloomberg.net.
To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.
http://www.bloomberg.com/news/2011-06-16/germany-won-t-cut-subsidies-for-solar-panels-starting-after-july.html
Germany FIT not to be reduced for 2011
Germany’s Federal Environment Ministry has confirmed that the installed photovoltaic capacity between March and May of this year amounts to around 700 megawatts. Nevertheless, the economic wing still wants to cap the market.
While it looks like Germany's photovoltaic FITs won't be cut, there is uncertainty over how much installed capacity will be added throughout the year.
The feed-in tariffs in Germany won’t be cut on July 1. "Only 700 MW were installed," Environment Secretary Katherina Reiche (CDU) told Thursday’s Financial Times Deutschland. This figure has been confirmed by the Germany grid agency (Bundesnetzagentur).
As such, expectations are that a projected 2.8 gigawatts will be installed throughout 2011. This figure falls rather short of industry expectations, however, as pv magazine heard during this year’s Intersolar Europe, held last week in Munich, that between 4.5 to five GW worth of photovoltaic systems will be installed this year.
Furthermore, analysts at Jefferies & Company believe that between five and six GW could be installed. In an industry note issued, they commented: "Our estimates are still for 5.5 GW this year in Germany. We recently polled some 50 industry participants throughout the value chain at Intersolar in Munich last week with consensus sticking to five to six GW for the year."
If just 2.8 GW are installed, this would even be less capacity than the government had originally envisioned in its targets, which had projected between three and 3.5 GW.
"The clear market decrease in the past months shows that no clearance exists for a still faster sinking of solar electricity," explained Carsten Körnig, managing director of Germany’s solar association, BSW-Solar. He warned the government, with an eye on the upcoming amendments to Germany’s renewable energy law (EEG), against further cutting the country’s solar incentives.
While it looks like Germany's photovoltaic FITs won't be cut, there is uncertainty over how much installed capacity will be added throughout the year.
The feed-in tariffs in Germany won’t be cut on July 1. "Only 700 MW were installed," Environment Secretary Katherina Reiche (CDU) told Thursday’s Financial Times Deutschland. This figure has been confirmed by the Germany grid agency (Bundesnetzagentur).
As such, expectations are that a projected 2.8 gigawatts will be installed throughout 2011. This figure falls rather short of industry expectations, however, as pv magazine heard during this year’s Intersolar Europe, held last week in Munich, that between 4.5 to five GW worth of photovoltaic systems will be installed this year.
Furthermore, analysts at Jefferies & Company believe that between five and six GW could be installed. In an industry note issued, they commented: "Our estimates are still for 5.5 GW this year in Germany. We recently polled some 50 industry participants throughout the value chain at Intersolar in Munich last week with consensus sticking to five to six GW for the year."
If just 2.8 GW are installed, this would even be less capacity than the government had originally envisioned in its targets, which had projected between three and 3.5 GW.
"The clear market decrease in the past months shows that no clearance exists for a still faster sinking of solar electricity," explained Carsten Körnig, managing director of Germany’s solar association, BSW-Solar. He warned the government, with an eye on the upcoming amendments to Germany’s renewable energy law (EEG), against further cutting the country’s solar incentives.
Monday, June 13, 2011
UK Cuts FIT in favour of 50kWp projects
As expected, the government on Thursday announced cuts to the subsidies given to large-scale solar photovoltaic installations. The cuts were introduced in a bid to ensure that the money assigned to the feed-in tariffs (Fits) programme for the period of the current parliament didn't get quickly eaten up by large investor-driven solar systems, leaving nothing for householders and small community projects. As Greg Barker told me last week, "the focus of the current scheme needs to be on the small scale, to get the maximum number of installations".
Given that the total amount of money that can be given out via the Fits is capped, skewing the scheme in favour of small systems is reasonable, but two important questions remain unanswered. First, given the rate of small-scale installations, how long will the Fits funding pot last? Second, why is there a cap in the first place?
The government line on the first of these question is that the issue will be explored during the comprehensive review of the feed-in tariffs, which is already underway. The initial tariff rates were always intended to last only until April 2012, and from that date the rates can be tweaked downwards to ensure that the scheme doesn't exceed its spending cap. The rates "will come down", Barker confirmed when we spoke last week.
But industry insiders claim there's a crisis brewing. Ray Noble, solar specialist for the Renewable Energy Association, says that small and medium-sized systems are going up so fast that – despite yesterday's announcement – virtually the entire budget for the feed-in tariffs could be used by the middle of next year. By then, he says, "it's unlikely they'll have much budget, and there may be no feed-in tariff".
If Noble is correct, the implication for anyone thinking of installing solar at home over the next few years is clear: do it now or risk getting locked out. The message for the solar industry is even starker: be prepared for the possibility that Fits money could dry up completely or almost completely much sooner than thought.
All of which raises the second question: why is there a cap on Fits spending anyway?
The cap was introduced by the coalition as part of last year's government-wide spending review. (The scheme is actually funded by a levy on electricity bills, rather than directly from the coffers of the Department for Energy and Climate Change (Decc), but it's still considered a form of tax and spending, and therefore was reviewed along with the rest of government expenditure.) As far as I can gather, the government line is that a £900m budget was allocated to the Fits when Labour originally set up the scheme in 2010, and all the coalition did was to trim 10% from the part of that budget intended for 2014-15 – a modest concession in the context of much deeper cuts in other areas.
But Labour and the solar industry claim this line is misleading, as the £900m was never intended to be a cap. Shadow energy minister, Huw Irranca-Davies, confirms this. "No cap existed before", he said. "It was an indicative amount, subject to review across Whitehall depending on take-up."
Howard Johns, chair of the Solar Trade Association, claims that the coalition's decision to turn this indicative figure into a hard cap "was pushed through without consultation, based on a spreadsheet that no one had seen".
Why did this happen? Pressure from the Treasury to reduce all public spending is the most obvious answer, but according to some sources the situation was made worse by incompetence within Decc, which would not comment on the 'why' beyond talking about the need to prevent excessive energy bill rises and reiterating that there had been no cap before October's spending review.
During our interview last week, Barker said he would be gathering senior staff from across Decc to reappraise solar in light of developments in cost and technology, and to think creatively about "new pathways" for supporting large-scale solar projects. If the Fits budget does run out sooner than expected, the same team may also find themselves brainstorming new ways to support domestic-scale solar, too – unless, that is, Greg Barker can persuade George Osborne to unlock some extra cash. I wonder what his chances are.
Given that the total amount of money that can be given out via the Fits is capped, skewing the scheme in favour of small systems is reasonable, but two important questions remain unanswered. First, given the rate of small-scale installations, how long will the Fits funding pot last? Second, why is there a cap in the first place?
The government line on the first of these question is that the issue will be explored during the comprehensive review of the feed-in tariffs, which is already underway. The initial tariff rates were always intended to last only until April 2012, and from that date the rates can be tweaked downwards to ensure that the scheme doesn't exceed its spending cap. The rates "will come down", Barker confirmed when we spoke last week.
But industry insiders claim there's a crisis brewing. Ray Noble, solar specialist for the Renewable Energy Association, says that small and medium-sized systems are going up so fast that – despite yesterday's announcement – virtually the entire budget for the feed-in tariffs could be used by the middle of next year. By then, he says, "it's unlikely they'll have much budget, and there may be no feed-in tariff".
If Noble is correct, the implication for anyone thinking of installing solar at home over the next few years is clear: do it now or risk getting locked out. The message for the solar industry is even starker: be prepared for the possibility that Fits money could dry up completely or almost completely much sooner than thought.
All of which raises the second question: why is there a cap on Fits spending anyway?
The cap was introduced by the coalition as part of last year's government-wide spending review. (The scheme is actually funded by a levy on electricity bills, rather than directly from the coffers of the Department for Energy and Climate Change (Decc), but it's still considered a form of tax and spending, and therefore was reviewed along with the rest of government expenditure.) As far as I can gather, the government line is that a £900m budget was allocated to the Fits when Labour originally set up the scheme in 2010, and all the coalition did was to trim 10% from the part of that budget intended for 2014-15 – a modest concession in the context of much deeper cuts in other areas.
But Labour and the solar industry claim this line is misleading, as the £900m was never intended to be a cap. Shadow energy minister, Huw Irranca-Davies, confirms this. "No cap existed before", he said. "It was an indicative amount, subject to review across Whitehall depending on take-up."
Howard Johns, chair of the Solar Trade Association, claims that the coalition's decision to turn this indicative figure into a hard cap "was pushed through without consultation, based on a spreadsheet that no one had seen".
Why did this happen? Pressure from the Treasury to reduce all public spending is the most obvious answer, but according to some sources the situation was made worse by incompetence within Decc, which would not comment on the 'why' beyond talking about the need to prevent excessive energy bill rises and reiterating that there had been no cap before October's spending review.
During our interview last week, Barker said he would be gathering senior staff from across Decc to reappraise solar in light of developments in cost and technology, and to think creatively about "new pathways" for supporting large-scale solar projects. If the Fits budget does run out sooner than expected, the same team may also find themselves brainstorming new ways to support domestic-scale solar, too – unless, that is, Greg Barker can persuade George Osborne to unlock some extra cash. I wonder what his chances are.
Wednesday, June 8, 2011
Germany Scraps Solar Energy Subsidy Cut as Merkel Exits Nuclear
In a report by Bloomberg Germany has scrapped a planned cut in subsidies paid to solar panel owners as Europe’s biggest electricity market seeks to exit nuclear power, according to a draft law published on the Environment Ministry’s website.
“There are no significant changes for electricity from photovoltaic facilities from those made in 2010,” reads the document, which details scheduled cuts in above-market rates paid to solar panel owners. Environment Minister Norbert Roettgen has said he considered an additional reduction in March next year.
Germany, which uses nuclear for 23 percent of its power, plans to switch to renewable energy output after Japan’s reactor disaster stoked safety concerns. The government is balancing aid for energy from solar panels and wind turbines with the associated cost for citizens and industrial users, who finance the technology’s roll-out through their power bills.
“There is no change of mind,” Roettgen said today in Berlin. “We’re having a discussion about how the degression, which is possible because of technological and market developments in solar, is technically implemented in the law.”
This can be done with one-time reductions, by increasing cuts or by forecasting the installation of technology and the scaling back of subsidies in half-year steps on Jan. 1 and July 1 each year, rather than Jan. 1 of the following year, he said.
The minister told reporters on May 30 that he considered a 6 percent aid cut in March 2012 that would come on top of reductions of as much as 24 percent between July and next January to adapt the subsidy to falling panel prices.
To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net Rainer Buergin in Berlin at bparkin@bloomberg.net
To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net James Hertling at jhertling@bloomberg.net
“There are no significant changes for electricity from photovoltaic facilities from those made in 2010,” reads the document, which details scheduled cuts in above-market rates paid to solar panel owners. Environment Minister Norbert Roettgen has said he considered an additional reduction in March next year.
Germany, which uses nuclear for 23 percent of its power, plans to switch to renewable energy output after Japan’s reactor disaster stoked safety concerns. The government is balancing aid for energy from solar panels and wind turbines with the associated cost for citizens and industrial users, who finance the technology’s roll-out through their power bills.
“There is no change of mind,” Roettgen said today in Berlin. “We’re having a discussion about how the degression, which is possible because of technological and market developments in solar, is technically implemented in the law.”
This can be done with one-time reductions, by increasing cuts or by forecasting the installation of technology and the scaling back of subsidies in half-year steps on Jan. 1 and July 1 each year, rather than Jan. 1 of the following year, he said.
The minister told reporters on May 30 that he considered a 6 percent aid cut in March 2012 that would come on top of reductions of as much as 24 percent between July and next January to adapt the subsidy to falling panel prices.
To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net Rainer Buergin in Berlin at bparkin@bloomberg.net
To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net James Hertling at jhertling@bloomberg.net
NSW abandons FIT cut
The government of Australian state New South Wales has decided not to implement a previously proposed reduction of its feed-in tariff (FIT), sparking relief from the country’s solar sector.
It had sought to cut the FIT payment by one third to 40 cents from 60 cents and implement this reduction retroactively, but now the state government has taken a u-turn in its decision following pressure from the country’s nascent solar industry.
The UK has similarly proposed to reduce its FIT payments, but the change would not affect previously guaranteed payments under its present government.
New South Wales Premier Barry O’Farrell said this week that he will renege on introducing the rate cut retroactively, according to local reports.
Taking retrospective action calls into question the validity of government guarantees for set power rates under the FIT scheme.
It had sought to cut the FIT payment by one third to 40 cents from 60 cents and implement this reduction retroactively, but now the state government has taken a u-turn in its decision following pressure from the country’s nascent solar industry.
The UK has similarly proposed to reduce its FIT payments, but the change would not affect previously guaranteed payments under its present government.
New South Wales Premier Barry O’Farrell said this week that he will renege on introducing the rate cut retroactively, according to local reports.
Taking retrospective action calls into question the validity of government guarantees for set power rates under the FIT scheme.
What does Germany's no to Nuclear really mean?
Removing one fifth of its power generation facilities is an extraordinary step for Europe’s industrial powerhouse Germany as it pledges to shutdown all its nuclear facilities by 2022.
While the role of nuclear and its building processes have proved controversial and expensive, the technology does supply a large proportion of baseload power to any grid system. The likely outcome of the decision to exit from such a reliable power source will mean the need to replace it with an equally constant type of energy generation. Germany, with an absence of oil, has so far relied on coal-fired power stations as its largest resource, with as much as 50 per cent of its energy demand being met with by this fossil fuel.
The decision to shun nuclear may mean a push towards renewable power sources such as solar and offshore wind. But due to the high levels of intermittency witnessed with both – until energy storage solutions are brought down in price – investment in an alternative, reliable power source seems inevitable.
In theory the fastest, low carbon alternative to providing back up power for the German system would be the construction of more natural gas fired power stations. At a build price of about £800m and a reasonably quick construction time it would appear that the next ten years may see a new dash for gas in Germany.
This may also put even more impetus behind the pressure to build gas pipelines across Europe, with projects such as Nabucco continuing to be high on the energy security agenda.
With German industry gradually coming out of recession, the supply of cheap electricity to power its factories remains vital to such an economic recovery. But with Germany sitting on significant coal reserves, alongside natural gas and offshore wind development, the temptation for the country to expand its carbon capture and storage (CCS) initiative seems compelling.
The major coal player in Germany investing in CCS research and development is Vattenfall, which according to a Reuters report is ‘mulling’ over its flagship project in the east of the country. The German government is also set to develop a legal framework for CCS project development in the coming months.
CCS technology is often described as fledgling, and this is a fair comment. It is not currently a mainstream power solution. However, it must be remembered that the components of the technology are all being used in different places around the world. Piping carbon dioxide (CO²) has, for instance, been taking place for years in North American oil industry.
The technology behind the development of moving CO² in what is termed ‘the dense phase’, that is before it becomes super critical – where a gas under a certain pressure will form a liquid – has been studied and now needs applying to new projects such as Long Gannet in Scotland. Collection and storage of CO² has been commercially proven by Statoil at Sliepner since 1996, where one million tonnes a year have been now been stored in a Saline Aquifer.
Many of these commercial-scale projects do not represent much more than an experiment but with the theory working in practical applications, the main threat to its development appears to be the rising cost of coal-fired power stations and public sentiment to switch to renewables.
It also remains to be seen to see if there is enough geological storage suitable for the housing of such gases. What is clear from the nuclear decision is the power of the green lobby in Germany and its capacity for affecting an extreme policy outcome. Opposition to burning coal in Germany could do for CCS what it has now done for nuclear. Vattenfall and its peers are no doubt watching the space carefully.
http://www.newenergyworldnetwork.com/cleantech-features/by-technology-f/energy-efficiency-f/what-does-germany%e2%80%99s-no-to-nuclear-really-mean.html
While the role of nuclear and its building processes have proved controversial and expensive, the technology does supply a large proportion of baseload power to any grid system. The likely outcome of the decision to exit from such a reliable power source will mean the need to replace it with an equally constant type of energy generation. Germany, with an absence of oil, has so far relied on coal-fired power stations as its largest resource, with as much as 50 per cent of its energy demand being met with by this fossil fuel.
The decision to shun nuclear may mean a push towards renewable power sources such as solar and offshore wind. But due to the high levels of intermittency witnessed with both – until energy storage solutions are brought down in price – investment in an alternative, reliable power source seems inevitable.
In theory the fastest, low carbon alternative to providing back up power for the German system would be the construction of more natural gas fired power stations. At a build price of about £800m and a reasonably quick construction time it would appear that the next ten years may see a new dash for gas in Germany.
This may also put even more impetus behind the pressure to build gas pipelines across Europe, with projects such as Nabucco continuing to be high on the energy security agenda.
With German industry gradually coming out of recession, the supply of cheap electricity to power its factories remains vital to such an economic recovery. But with Germany sitting on significant coal reserves, alongside natural gas and offshore wind development, the temptation for the country to expand its carbon capture and storage (CCS) initiative seems compelling.
The major coal player in Germany investing in CCS research and development is Vattenfall, which according to a Reuters report is ‘mulling’ over its flagship project in the east of the country. The German government is also set to develop a legal framework for CCS project development in the coming months.
CCS technology is often described as fledgling, and this is a fair comment. It is not currently a mainstream power solution. However, it must be remembered that the components of the technology are all being used in different places around the world. Piping carbon dioxide (CO²) has, for instance, been taking place for years in North American oil industry.
The technology behind the development of moving CO² in what is termed ‘the dense phase’, that is before it becomes super critical – where a gas under a certain pressure will form a liquid – has been studied and now needs applying to new projects such as Long Gannet in Scotland. Collection and storage of CO² has been commercially proven by Statoil at Sliepner since 1996, where one million tonnes a year have been now been stored in a Saline Aquifer.
Many of these commercial-scale projects do not represent much more than an experiment but with the theory working in practical applications, the main threat to its development appears to be the rising cost of coal-fired power stations and public sentiment to switch to renewables.
It also remains to be seen to see if there is enough geological storage suitable for the housing of such gases. What is clear from the nuclear decision is the power of the green lobby in Germany and its capacity for affecting an extreme policy outcome. Opposition to burning coal in Germany could do for CCS what it has now done for nuclear. Vattenfall and its peers are no doubt watching the space carefully.
http://www.newenergyworldnetwork.com/cleantech-features/by-technology-f/energy-efficiency-f/what-does-germany%e2%80%99s-no-to-nuclear-really-mean.html
Tuesday, June 7, 2011
Overview of EEG law in Germany
Feed-in tariff (EEG feed-in tariff) as of the 12.01.2011
The most important means to promote electricity from renewable sources in Germany is the feed-in tariff as set out in the EEG.
Promoted technologies
In general, all technologies used in the generation of electricity from renewable sources are eligible for feed-in tariffs (§ 16 par. 1 EEG). The following conditions shall be met:
System registration. In pursuance of the EEG, electricity generated by a renewable energy system is eligible for the feed-in tariff only if the system operator has applied for the system to be registered in the "Register of Installations" (§ 16 par. 2 EEG). The Register of Installations has not yet been introduced. The date of its introduction is yet to be decided on. Systems that generate electricity from solar radiation or from bioliquids must be registered in separate registers.
Systems with a capacity of over 100 kW. Systems with a capacity of over 100 kW are eligible for tariffs only if they are equipped with a technical or operational facility to reduce output by remote means in the event of grid overload and to call up the current electricity exports (§§ 16 par. 6; 6 EEG). Operators of solar installations with a capacity of over 100 kW are also recommended to install a technical facility to reduce output.
Direct selling. System operators that sell their electricity directly are not entitled to the tariff (§ 17 par. 1 sentence 2 EEG). System operators may sell their electricity directly if they report this to the grid operator before the start of the previous calendar month (§ 17 EEG).
Wind energy
Both onshore and offshore generation are eligible with the following exceptions (§§ 29; 31 EEG):
Inefficient onshore generation. Electricity from wind energy is not eligible if generated by systems whose output exceeds 50 KW and for which the system operator provided no proof prior to commissioning that they are able to achieve at least 60 per cent of the reference yield at the planned location (§ 29 par. 3; 4 EEG). This proof shall be furnished by presenting a technical expert opinion (§ 29 par. 4 sentence 1; Annex 5 EEG).Offshore generation in protected areas. Electricity is not eligible if generated by systems located in an area of environmental importance, such as systems constructed in a protected area or at a site of Community importance (§ 31 par. 3 EEG).
Solar energy
Eligible unless one of the following circumstances is present (§§ 32; 33 EEG):
Future production sites. Electricity from a ground-mounted system is eligible only if the system was erected within the territorial application of a formal development plan (e.g. a local development plan). Systems erected within the territorial application of a local development plan drawn up after 01/01/2009 must be located on certain plots of land.
The most important means to promote electricity from renewable sources in Germany is the feed-in tariff as set out in the EEG.
Promoted technologies
In general, all technologies used in the generation of electricity from renewable sources are eligible for feed-in tariffs (§ 16 par. 1 EEG). The following conditions shall be met:
System registration. In pursuance of the EEG, electricity generated by a renewable energy system is eligible for the feed-in tariff only if the system operator has applied for the system to be registered in the "Register of Installations" (§ 16 par. 2 EEG). The Register of Installations has not yet been introduced. The date of its introduction is yet to be decided on. Systems that generate electricity from solar radiation or from bioliquids must be registered in separate registers.
Systems with a capacity of over 100 kW. Systems with a capacity of over 100 kW are eligible for tariffs only if they are equipped with a technical or operational facility to reduce output by remote means in the event of grid overload and to call up the current electricity exports (§§ 16 par. 6; 6 EEG). Operators of solar installations with a capacity of over 100 kW are also recommended to install a technical facility to reduce output.
Direct selling. System operators that sell their electricity directly are not entitled to the tariff (§ 17 par. 1 sentence 2 EEG). System operators may sell their electricity directly if they report this to the grid operator before the start of the previous calendar month (§ 17 EEG).
Wind energy
Both onshore and offshore generation are eligible with the following exceptions (§§ 29; 31 EEG):
Inefficient onshore generation. Electricity from wind energy is not eligible if generated by systems whose output exceeds 50 KW and for which the system operator provided no proof prior to commissioning that they are able to achieve at least 60 per cent of the reference yield at the planned location (§ 29 par. 3; 4 EEG). This proof shall be furnished by presenting a technical expert opinion (§ 29 par. 4 sentence 1; Annex 5 EEG).Offshore generation in protected areas. Electricity is not eligible if generated by systems located in an area of environmental importance, such as systems constructed in a protected area or at a site of Community importance (§ 31 par. 3 EEG).
Solar energy
Eligible unless one of the following circumstances is present (§§ 32; 33 EEG):
Future production sites. Electricity from a ground-mounted system is eligible only if the system was erected within the territorial application of a formal development plan (e.g. a local development plan). Systems erected within the territorial application of a local development plan drawn up after 01/01/2009 must be located on certain plots of land.
Where a solar installation is attached to a building, this building must meet certain statutory requirements (§§ 33, 32 par. 2 EEG).Reporting of installations to the Federal Network Agency.
Electricity from a ground-mounted system or a solar installation attached to a building structure used for the generation of electricity is eligible only if the system operator has reported the location and capacity of the system to the Federal Network Agency (§ 16 par. 2 EEG).
Amount
Calculation. The amount of tariff for a given system is the statutorily fixed tariff minus the degression percentage, which depends on the year in which the system was put into operation. The current version of the EEG sets out the tariffs for 2009.
Differentiation according to technology. The amount of tariff differs for every source of energy (§§ 23 – 33 EEG). For some technologies there are several tariffs depending on the system capacity, the system location and the technology and raw materials used. The more efficient the respective technology is, the more closely the tariff will reflect the market price.
Special system classification if tariff is output-based. In cases where the tariff is based on system output (e.g. photovoltaic energy, biomass), several systems shall be classified as one installation, notwithstanding ownership, and solely for the purpose of determining the tariff to be paid. For this rule to apply, the systems must be located on the same plot of land or in direct spatial proximity, generate electricity from the same kind of renewable energy source and have been commissioned within a period of twelve consecutive calendar months (§ 19 EEG). This regulation aims to prevent system operators from splitting their systems in order to avoid higher output categories. Whether several systems shall be regarded as one will be established on a case-by-case basis.
Criteria for amount of tariff. The amount of tariff depends on the costs of constructing and operating a certain type of plant, i.e. investment costs, operational costs, the costs of measurement and the cost of capital. Cost and efficiency audits are carried out in exceptional cases only. The calculation of the tariff is based on the expected costs. This aims to guarantee the cost-effective operation of most systems.
Solar energy
31.94 – 43.01 €ct/kWh (depending on energy source and system size) (§ 32 par. 1 EEG; § 33 par. 1 EEG).Payment of 25.01 €ct/kWh for electricity the operator uses himself (§ 33 par. 2 EEG).
Degression
The tariffs will be gradually reduced. The degression principle is meant to provide an incentive to reduce costs through technological progress. The tariffs for new systems will be reduced by a legally fixed percentage depending on the year of commissioning and the energy source used (§ 20 EEG). The degression percentage is fixed for all technologies except for electricity from solar radiation. The reference tariff applicable in the year a given system is put into operation is applicable during the entire period in which the tariff is paid. A progress report shall be filed on a regular basis to evaluate the tariffs and recommend adjustments (§ 65 EEG).
Solar energy
The degression rate is statutorily fixed and applies to a statutorily defined capacity of new installations ("regular degression"). When the total capacity of new installations exceeds or falls below a certain amount, the degression percentage increases or decreases by a statutorily fixed number of percentage points ("flexible cap"). The amount of degression differs for roof-top and ground-mounted systems. For example: From 2011 onwards the regular degression for ground-mounted systems will be 9 % (§ 20 par. 2 EEG). According to market developments
in 2011, this percentage will increase by up to 4 percentage points or decrease by up to 3 percentage points.in 2012, this percentage will increase by up to 12 percentage points or decrease by up to 7.5 percentage points (§ 20 par. 3 EEG). Every autumn, the Federal Network Agency will publish the tariffs applicable in the following year on its website http://www.bundesnetzagentur.de/
Amount
Calculation. The amount of tariff for a given system is the statutorily fixed tariff minus the degression percentage, which depends on the year in which the system was put into operation. The current version of the EEG sets out the tariffs for 2009.
Differentiation according to technology. The amount of tariff differs for every source of energy (§§ 23 – 33 EEG). For some technologies there are several tariffs depending on the system capacity, the system location and the technology and raw materials used. The more efficient the respective technology is, the more closely the tariff will reflect the market price.
Special system classification if tariff is output-based. In cases where the tariff is based on system output (e.g. photovoltaic energy, biomass), several systems shall be classified as one installation, notwithstanding ownership, and solely for the purpose of determining the tariff to be paid. For this rule to apply, the systems must be located on the same plot of land or in direct spatial proximity, generate electricity from the same kind of renewable energy source and have been commissioned within a period of twelve consecutive calendar months (§ 19 EEG). This regulation aims to prevent system operators from splitting their systems in order to avoid higher output categories. Whether several systems shall be regarded as one will be established on a case-by-case basis.
Criteria for amount of tariff. The amount of tariff depends on the costs of constructing and operating a certain type of plant, i.e. investment costs, operational costs, the costs of measurement and the cost of capital. Cost and efficiency audits are carried out in exceptional cases only. The calculation of the tariff is based on the expected costs. This aims to guarantee the cost-effective operation of most systems.
Solar energy
31.94 – 43.01 €ct/kWh (depending on energy source and system size) (§ 32 par. 1 EEG; § 33 par. 1 EEG).Payment of 25.01 €ct/kWh for electricity the operator uses himself (§ 33 par. 2 EEG).
Degression
The tariffs will be gradually reduced. The degression principle is meant to provide an incentive to reduce costs through technological progress. The tariffs for new systems will be reduced by a legally fixed percentage depending on the year of commissioning and the energy source used (§ 20 EEG). The degression percentage is fixed for all technologies except for electricity from solar radiation. The reference tariff applicable in the year a given system is put into operation is applicable during the entire period in which the tariff is paid. A progress report shall be filed on a regular basis to evaluate the tariffs and recommend adjustments (§ 65 EEG).
Solar energy
The degression rate is statutorily fixed and applies to a statutorily defined capacity of new installations ("regular degression"). When the total capacity of new installations exceeds or falls below a certain amount, the degression percentage increases or decreases by a statutorily fixed number of percentage points ("flexible cap"). The amount of degression differs for roof-top and ground-mounted systems. For example: From 2011 onwards the regular degression for ground-mounted systems will be 9 % (§ 20 par. 2 EEG). According to market developments
in 2011, this percentage will increase by up to 4 percentage points or decrease by up to 3 percentage points.in 2012, this percentage will increase by up to 12 percentage points or decrease by up to 7.5 percentage points (§ 20 par. 3 EEG). Every autumn, the Federal Network Agency will publish the tariffs applicable in the following year on its website http://www.bundesnetzagentur.de/
Cap
The EEG does not limit the total annual electricity production or the total installed capacity to be covered by the feed-in tariff.
Eligibility period
Duration of payment. Entitlement to the payment of tariffs as guaranteed by the EEG is limited in time and is usually 20 years plus the year of commissioning of the installation. Hydro-electric power stations are subject to a different eligibility period. The tariffs for hydro-electricity from large installations is 15 years plus the year of commissioning of the installation (§ 21 par. 2 EEG).Credit for direct selling. The period in which electricity is sold directly is credited against the duration of the payment of the tariffs (§ 17 par. 1 EEG).
Addressees
The system operator is entitled against the grid operator to the payment of tariffs (§ 16 par. 1 EEG). A system operator is one who, irrespective of the issue of ownership, uses a system to generate electricity from renewable energy sources or from mine gas (§ 3 no. 2 EEG). Grid operators are the operators of grid systems of all voltages for general electricity supply (§ 3 no. 8 EEG). The conclusion of a contract must not be made a condition for the entitlement to tariffs (§ 4 par. 1 EEG).
Procedure
Procedure Statutory law does not provide for a formal tariff procedure. According to the EEG, the conclusion of a contract between the grid operator and the system operator must not be made a condition for the payment of tariffs (§ 4 par. 1 EEG). Only systems generating electricity from solar radiation and systems generating electricity from bioliquids have to complete a registration procedure.
Competent authority The implementation of the EEG is not managed or monitored by a designated authority, as the EEG is a framework for private individuals – system operators and grid operators – rather than authorities. The Act is evaluated by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety on behalf of the Federal Government (§ 65 EEG).
Cooperation mechanism
The feed-in tariffs will not be used to implement the Flexibility Mechanism.
Funding
Consumer
The costs of the feed-in tariffs are borne by the final consumers.
Distribution mechanism
System operator—grid operator. On the first level, power is transferred from the system operator to the grid operator because of the obligation to purchase electricity and pay tariffs (§§ 8 par. 1, 16 par. 1 EEG).Grid operator – transmission system operator. On the second level, the grid operator is obliged to transfer the electricity received to the transmission system operator without undue delay (§ 34 EEG). The grid operator is entitled to the purchase of and payment for the quantity of electricity he has paid tariff for (§ 35 par. 1 EEG). Transmission system operator – transmission system operator. On the third level, the transmission system operators divide the power as defined by the EEG among themselves according to the quantity of energy and the fees paid (§ 36 par. 1-3 EEG).Transmission system operator – spot market. On the fourth level, the transmission system operators sell electricity from renewable sources on the spot market at the stock exchange price (§ 2 AusglMechV).Transmission grid operator – utility company. On the fifth level, costs are passed on to the utility companies, which are obliged to reimburse the transmission system operators for their costs (§ 3 AusglMechV). Utility companies – final consumers. On the sixth level, which is not explicitly covered by law, the final consumers have to pay their electricity bills, which reflect the amount of power consumed. Final consumers that are manufacturing companies or rail operators are exempt from this regulation. Their costs arising from the compensation payments as specified by the EEG may be reduced upon request ("special equalisation scheme", §§ 40 ff. EEG).
The system operator is entitled against the grid operator to the payment of tariffs (§ 16 par. 1 EEG). A system operator is one who, irrespective of the issue of ownership, uses a system to generate electricity from renewable energy sources or from mine gas (§ 3 no. 2 EEG). Grid operators are the operators of grid systems of all voltages for general electricity supply (§ 3 no. 8 EEG). The conclusion of a contract must not be made a condition for the entitlement to tariffs (§ 4 par. 1 EEG).
Procedure
Procedure Statutory law does not provide for a formal tariff procedure. According to the EEG, the conclusion of a contract between the grid operator and the system operator must not be made a condition for the payment of tariffs (§ 4 par. 1 EEG). Only systems generating electricity from solar radiation and systems generating electricity from bioliquids have to complete a registration procedure.
Competent authority The implementation of the EEG is not managed or monitored by a designated authority, as the EEG is a framework for private individuals – system operators and grid operators – rather than authorities. The Act is evaluated by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety on behalf of the Federal Government (§ 65 EEG).
Cooperation mechanism
The feed-in tariffs will not be used to implement the Flexibility Mechanism.
Funding
Consumer
The costs of the feed-in tariffs are borne by the final consumers.
Distribution mechanism
System operator—grid operator. On the first level, power is transferred from the system operator to the grid operator because of the obligation to purchase electricity and pay tariffs (§§ 8 par. 1, 16 par. 1 EEG).Grid operator – transmission system operator. On the second level, the grid operator is obliged to transfer the electricity received to the transmission system operator without undue delay (§ 34 EEG). The grid operator is entitled to the purchase of and payment for the quantity of electricity he has paid tariff for (§ 35 par. 1 EEG). Transmission system operator – transmission system operator. On the third level, the transmission system operators divide the power as defined by the EEG among themselves according to the quantity of energy and the fees paid (§ 36 par. 1-3 EEG).Transmission system operator – spot market. On the fourth level, the transmission system operators sell electricity from renewable sources on the spot market at the stock exchange price (§ 2 AusglMechV).Transmission grid operator – utility company. On the fifth level, costs are passed on to the utility companies, which are obliged to reimburse the transmission system operators for their costs (§ 3 AusglMechV). Utility companies – final consumers. On the sixth level, which is not explicitly covered by law, the final consumers have to pay their electricity bills, which reflect the amount of power consumed. Final consumers that are manufacturing companies or rail operators are exempt from this regulation. Their costs arising from the compensation payments as specified by the EEG may be reduced upon request ("special equalisation scheme", §§ 40 ff. EEG).
German Solar FIT may be reduced by 9% on the 1st July
Solas Power has learned that a decision by the German Federal Network Agency as to the scale of the downward revision is yet to be announced, some predictions are that the final scheduled reduction will amount to a nine percent cut on July 1, followed by another on January 1, 2010.
Just last week German Federal Minister for the Environment, Nature Conservation and Nuclear Safety Norbert Röttgen, announced that solar subsidies were to be cut by a further six percent as of March 1, 2012. This reduction had found its way into amendments to the EEG during the departmental approval process. However, reports are that Chancellor Angela Merkel gave a free hand to members of the ruling coalition parties during consultation, and the unscheduled six percent cuts were removed.
This morning the Cabinet of the German federal government discussed and approved the EEG amendments, at the same time deciding to abandon nuclear energy. The result is a phased shutdown of nuclear power plants in Germany by the year 2022.
On Wednesday, the Environmental Committee of the Lower House of Parliament will discuss the amendments to the Renewable Energy Act (EEG). Experts on the topic will then be heard during the public meeting. The law will then be discussed in the Lower House of Parliament and – according to government plans – is to be adopted even before the summer parliamentary recess. Approval by the Upper House of Parliament is not required for the EEG amendments.
Just last week German Federal Minister for the Environment, Nature Conservation and Nuclear Safety Norbert Röttgen, announced that solar subsidies were to be cut by a further six percent as of March 1, 2012. This reduction had found its way into amendments to the EEG during the departmental approval process. However, reports are that Chancellor Angela Merkel gave a free hand to members of the ruling coalition parties during consultation, and the unscheduled six percent cuts were removed.
This morning the Cabinet of the German federal government discussed and approved the EEG amendments, at the same time deciding to abandon nuclear energy. The result is a phased shutdown of nuclear power plants in Germany by the year 2022.
On Wednesday, the Environmental Committee of the Lower House of Parliament will discuss the amendments to the Renewable Energy Act (EEG). Experts on the topic will then be heard during the public meeting. The law will then be discussed in the Lower House of Parliament and – according to government plans – is to be adopted even before the summer parliamentary recess. Approval by the Upper House of Parliament is not required for the EEG amendments.
Monday, June 6, 2011
PV FIT for 2011 may remain unchanged
Solas Power has learned from a German PV expert that it has been mooted that the FIT will go up again. However, this has not been offically confirmed and it is believed that this is not finally decided yet.
Although, the FIT for wind will be very much supported as wind turbines are more efficient and generate more energy.
IT is believed that the FIT for PV will probably be frozen until end of this year but nobody knows when or whether it will really come into force.
This week during the Intersolar in Munich everybody hopes that there will be a final decision made, but politicians are slow and the lobby of the nuclear power is always very strong and in opposition to support renewables.
Although, the FIT for wind will be very much supported as wind turbines are more efficient and generate more energy.
IT is believed that the FIT for PV will probably be frozen until end of this year but nobody knows when or whether it will really come into force.
This week during the Intersolar in Munich everybody hopes that there will be a final decision made, but politicians are slow and the lobby of the nuclear power is always very strong and in opposition to support renewables.
German Givernment drops plans to reduce FIT in March 2012
The German government has dropped its plans to add a further unscheduled cut in incentives for photovoltaic energy in March 2012, according to a draft of the reform of the Renewable Energy Act obtained by Solas Power on Monday.
Environment Minister Norbert Roettgen had said on 30th May that the government was considering cutting the feed-in tariff (FIT), or incentives, for photovoltaic by an additional 6% in March 2012 But in the draft of the Renewable Energy Act's reform there are no longer any plans for a further cut in March 2012.
There are already cuts in the FIT of about nine percent set to take effect on July 1 and then again on 1st January, 2012.
Solar Industry saved from extra Feed-in tariff cuts in Germany
Solar industry saved from extra feed-in tariff cuts in Germany
The German cabinet, under the leadership of Chancellor Angela Merkel has removed controversial proposals to include an extra 6% cut to the German feed-in tariff next year.
The German cabinet, under the leadership of Chancellor Angela Merkel has removed controversial proposals to include an extra 6% cut to the German feed-in tariff next year.
The German cabinet, under the leadership of Chancellor Angela Merkel has removed a controversial proposals to include an extra 6% cut to the German feed-in tariff next year. The German cabinet today agreed on closing all its nuclear power plants between 2015 and 2022. Although wind energy will be supported at higher rates to secure 35% of its energy needs come from renewables, the solar industry retains support but without the extra FiT reductions.
In a week that sees the global PV industry verge on Munich, Germany for Intersolar Europe, a serious concern held by the industry that PV installations in Germany would suffer a serious decline due to the continued cuts has been lifted.
The German cabinet agreement means that on January 1st, 2012 only a 9% cut to the FiT is expected. However, each annual gigawatt of PV installations over the quota of 3.5GW will result in a further 3% cut in the FiT. This will be applied to the 12-months to the end of each September.
A 24% ceiling cut has also been proposed should installations reach over 7.5GW. The same system will also be adopted for 2013, potentially giving much needed mid-term stability to the tariff conditions.
According to a research note from Jeffries International, ‘The German solar market is going to remain the bedrock of global solar at least for the next three years with the minimum annual goal of 3.5GW.’
Ratification is expected later this month
In a week that sees the global PV industry verge on Munich, Germany for Intersolar Europe, a serious concern held by the industry that PV installations in Germany would suffer a serious decline due to the continued cuts has been lifted.
The German cabinet agreement means that on January 1st, 2012 only a 9% cut to the FiT is expected. However, each annual gigawatt of PV installations over the quota of 3.5GW will result in a further 3% cut in the FiT. This will be applied to the 12-months to the end of each September.
A 24% ceiling cut has also been proposed should installations reach over 7.5GW. The same system will also be adopted for 2013, potentially giving much needed mid-term stability to the tariff conditions.
According to a research note from Jeffries International, ‘The German solar market is going to remain the bedrock of global solar at least for the next three years with the minimum annual goal of 3.5GW.’
Ratification is expected later this month
Monday, May 30, 2011
Germans to shut down Nuclear Plants by 2022
Germany's coalition government has announced a reversal of policy that will see all the country's nuclear power plants phased out by 2022.
The decision makes Germany the biggest industrial power to announce plans to give up nuclear energy.
Environment Minister Norbert Rottgen made the announcement following late-night talks.
Chancellor Angela Merkel set up a panel to review nuclear power following the crisis at Fukushima in Japan.
There have been mass anti-nuclear protests across Germany in the wake of March's Fukushima crisis, triggered by an earthquake and tsunami.
'Sustainable energy'
Mr Rottgen said the seven oldest reactors - which were taken offline for a safety review immediately after the Japanese crisis - would never be used again. An eighth plant - the Kruemmel facility in northern Germany, which was already offline and has been plagued by technical problems, would also be shut down for good.
Six others would go offline by 2021 at the latest and the three newest by 2022, he said.
Continue reading the main story
Analysis
Stephen Evans
BBC News, Berlin
--------------------------------------------------------------------------------
Nearly a quarter of German's electricity comes from nuclear power so the question becomes: How do you make up the short-fall?
The official commission which has studied the issue reckons that electricity use can be cut by 10% in the next decade through more efficient machinery and buildings.
The intention is also to increase the share of wind energy. This, though, would mean re-jigging the electricity distribution system because much of the extra wind power would come from farms on the North Sea to replace atomic power stations in the south.
Protest groups are already vocal in the beautiful, forested centre of the country which, they fear, will become a north-south "energie autobahn" of pylons and high-voltage cables.
Some independent analysts believe that coal power will benefit if the wind plans don't deliver what is needed.
And on either side of Germany is France, with its big nuclear industry, and Poland, which has announced an intention to build two nuclear power stations.
Mr Rottgen said: "It's definite. The latest end for the last three nuclear power plants is 2022. There will be no clause for revision."
Mr Rottgen said a tax on spent fuel rods, expected to raise 2.3bn euros (£1.9bn) a year from this year, would remain despite the shutdown.
Mrs Merkel's centre-right Christian Democrats met their junior partners on Sunday after the ethics panel had delivered its conclusions.
Before the meeting she said: "I think we're on a good path but very, very many questions have to be considered.
"If you want to exit something, you also have to prove how the change will work and how we can enter into a durable and sustainable energy provision."
The previous German government - a coalition of the centre-left Social Democrats (SPD) and the Greens - decided to shut down Germany's nuclear power stations by 2021.
However, last September Chancellor Angela Merkel's coalition scrapped those plans - announcing it would extend the life of the country's nuclear reactors by an average of 12 years.
Ministers said they needed to keep nuclear energy as a "bridging technology" to a greener future.
The decision to extend was unpopular in Germany even before the radioactive leaks at the Fukushima plant.
But following Fukushima, Mrs Merkel promptly scrapped her extension plan, and announced a review.
Greens boosted
Germany's nuclear industry has argued that an early shutdown would be hugely damaging to the country's industrial base.
Before March's moratorium on the older power plants, Germany relied on nuclear power for 23% of its energy.
The anti-nuclear drive boosted Germany's Green party, which took control of the Christian Democrat stronghold of Baden-Wuerttemberg, in late March.
Shaun Burnie, nuclear adviser for environmental campaign group Greenpeace International, told the BBC World Service that Germany had already invested heavily in renewable energy.
"The various studies from the Intergovernmental Panel on Climate Change show that renewables could deliver, basically, global electricity by 2050," he said.
"Germany is going to be ahead of the game on that and it is going to make a lot of money, so the message to Germany's industrial competitors is that you can base your energy policy not on nuclear, not on coal, but on renewables."
Shares in German nuclear utilities RWE and E.On fell on the news, though it had been widely expected.
But it was good news for manufacturers of renewable energy infrustructure.
German solar manufacturer, Solarworld, was up 7.6% whilst Danish wind turbine maker Vestas gained more than 3%.
Thursday, May 5, 2011
MIT researchers use virus to improve solar cell efficiency by a third
MIT researchers use virus to improve solar cell efficiency by a third
Solas Power has learned that researchers at MIT have found a way to make significant improvements to the power-conversion efficiency of solar cells by enlisting the services of tiny viruses to perform detailed assembly work at the microscopic level, according to MIT News.
In a solar cell, sunlight hits a light-harvesting material, causing it to release electrons that can be harnessed to produce an electric current. The new research, published online in the journal Nature Nanotechnology, is based on findings that carbon nanotubes — microscopic, hollow cylinders of pure carbon — can enhance the efficiency of electron collection from a solar cell’s surface.
Previous attempts to use the nanotubes, however, had been thwarted by two problems. First, the making of carbon nanotubes generally produces a mix of two types, some of which act as semiconductors (sometimes allowing an electric current to flow, sometimes not) or metals (which act like wires, allowing current to flow easily). The new research, for the first time, showed that the effects of these two types tend to be different, because the semiconducting nanotubes can enhance the performance of solar cells, but the metallic ones have the opposite effect. Second, nanotubes tend to clump together, which reduces their effectiveness.
And that’s where viruses come to the rescue. Graduate students Xiangnan Dang and Hyunjung Yi — working with Angela Belcher, the W. M. Keck Professor of Energy, and several other researchers — found that a genetically engineered version of a virus called M13, which normally infects bacteria, can be used to control the arrangement of the nanotubes on a surface, keeping the tubes separate so they can’t short out the circuits, and keeping the tubes apart so they don’t clump.
The system the researchers tested used a type of solar cell known as dye-sensitized solar cells, a lightweight and inexpensive type where the active layer is composed of titanium dioxide, rather than the silicon used in conventional solar cells. But the same technique could be applied to other types as well, including quantum-dot and organic solar cells, the researchers say. In their tests, adding the virus-built structures enhanced the power conversion efficiency to 10.6% from 8% — almost a one-third improvement.
This dramatic improvement takes place even though the viruses and the nanotubes make up only 0.1% by weight of the finished cell. “A little biology goes a long way,” Belcher says. With further work, the researchers think they can ramp up the efficiency even further.
The viruses are used to help improve one particular step in the process of converting sunlight to electricity. In a solar cell, the first step is for the energy of the light to knock electrons loose from the solar-cell material (usually silicon); then, those electrons need to be funneled toward a collector, from which they can form a current that flows to charge a battery or power a device. After that, they return to the original material, where the cycle can start again. The new system is intended to enhance the efficiency of the second step, helping the electrons find their way: Adding the carbon nanotubes to the cell “provides a more direct path to the current collector,” Belcher says.
The viruses actually perform two different functions in this process. First, they possess short proteins called peptides that can bind tightly to the carbon nanotubes, holding them in place and keeping them separated from each other. Each virus can hold five to 10 nanotubes, each of which is held firmly in place by about 300 of the virus’s peptide molecules. In addition, the virus was engineered to produce a coating of titanium dioxide (TiO2), a key ingredient for dye-sensitized solar cells, over each of the nanotubes, putting the titanium dioxide in close proximity to the wire-like nanotubes that carry the electrons.
The two functions are carried out in succession by the same virus, whose activity is “switched” from one function to the next by changing the acidity of its environment. This switching feature is an important new capability that has been demonstrated for the first time in this research, Belcher says.
In addition, the viruses make the nanotubes soluble in water, which makes it possible to incorporate the nanotubes into the solar cell using a water-based process that works at room temperature.
Prashant Kamat, a professor of chemistry and biochemistry at Notre Dame University who has done extensive work on dye-sensitized solar cells, says that while others have attempted to use carbon nanotubes to improve solar cell efficiency, “the improvements observed in earlier studies were marginal,” while the improvements by the MIT team using the virus assembly method are “impressive.”
“It is likely that the virus template assembly has enabled the researchers to establish a better contact between the TiO2 nanoparticles and carbon nanotubes. Such close contact with TiO2 nanoparticles is essential to drive away the photo-generated electrons quickly and transport it efficiently to the collecting electrode surface.”
Kamat thinks the process could well lead to a viable commercial product: “Dye-sensitized solar cells have already been commercialized in Japan, Korea and Taiwan,” he says. If the addition of carbon nanotubes via the virus process can improve their efficiency, “the industry is likely to adopt such processes.”
Belcher and her colleagues have previously used differently engineered versions of the same virus to enhance the performance of batteries and other devices, but the method used to enhance solar cell performance is quite different, she says.
Because the process would just add one simple step to a standard solar-cell manufacturing process, it should be quite easy to adapt existing production facilities and thus should be possible to implement relatively rapidly, Belcher says.
The research team also included Paula Hammond, the Bayer Professor of Chemical Engineering; Michael Strano, the Charles (1951) and Hilda Roddey Career Development Associate Professor of Chemical Engineering; and four other graduate students and postdoctoral researchers. The work was funded by the Italian company Eni, through the MIT Energy Initiative’s Solar Futures Program.
MIT News web.mit.edu/newsoffice
Solas Power has learned that researchers at MIT have found a way to make significant improvements to the power-conversion efficiency of solar cells by enlisting the services of tiny viruses to perform detailed assembly work at the microscopic level, according to MIT News.
In a solar cell, sunlight hits a light-harvesting material, causing it to release electrons that can be harnessed to produce an electric current. The new research, published online in the journal Nature Nanotechnology, is based on findings that carbon nanotubes — microscopic, hollow cylinders of pure carbon — can enhance the efficiency of electron collection from a solar cell’s surface.
Previous attempts to use the nanotubes, however, had been thwarted by two problems. First, the making of carbon nanotubes generally produces a mix of two types, some of which act as semiconductors (sometimes allowing an electric current to flow, sometimes not) or metals (which act like wires, allowing current to flow easily). The new research, for the first time, showed that the effects of these two types tend to be different, because the semiconducting nanotubes can enhance the performance of solar cells, but the metallic ones have the opposite effect. Second, nanotubes tend to clump together, which reduces their effectiveness.
And that’s where viruses come to the rescue. Graduate students Xiangnan Dang and Hyunjung Yi — working with Angela Belcher, the W. M. Keck Professor of Energy, and several other researchers — found that a genetically engineered version of a virus called M13, which normally infects bacteria, can be used to control the arrangement of the nanotubes on a surface, keeping the tubes separate so they can’t short out the circuits, and keeping the tubes apart so they don’t clump.
The system the researchers tested used a type of solar cell known as dye-sensitized solar cells, a lightweight and inexpensive type where the active layer is composed of titanium dioxide, rather than the silicon used in conventional solar cells. But the same technique could be applied to other types as well, including quantum-dot and organic solar cells, the researchers say. In their tests, adding the virus-built structures enhanced the power conversion efficiency to 10.6% from 8% — almost a one-third improvement.
This dramatic improvement takes place even though the viruses and the nanotubes make up only 0.1% by weight of the finished cell. “A little biology goes a long way,” Belcher says. With further work, the researchers think they can ramp up the efficiency even further.
The viruses are used to help improve one particular step in the process of converting sunlight to electricity. In a solar cell, the first step is for the energy of the light to knock electrons loose from the solar-cell material (usually silicon); then, those electrons need to be funneled toward a collector, from which they can form a current that flows to charge a battery or power a device. After that, they return to the original material, where the cycle can start again. The new system is intended to enhance the efficiency of the second step, helping the electrons find their way: Adding the carbon nanotubes to the cell “provides a more direct path to the current collector,” Belcher says.
The viruses actually perform two different functions in this process. First, they possess short proteins called peptides that can bind tightly to the carbon nanotubes, holding them in place and keeping them separated from each other. Each virus can hold five to 10 nanotubes, each of which is held firmly in place by about 300 of the virus’s peptide molecules. In addition, the virus was engineered to produce a coating of titanium dioxide (TiO2), a key ingredient for dye-sensitized solar cells, over each of the nanotubes, putting the titanium dioxide in close proximity to the wire-like nanotubes that carry the electrons.
The two functions are carried out in succession by the same virus, whose activity is “switched” from one function to the next by changing the acidity of its environment. This switching feature is an important new capability that has been demonstrated for the first time in this research, Belcher says.
In addition, the viruses make the nanotubes soluble in water, which makes it possible to incorporate the nanotubes into the solar cell using a water-based process that works at room temperature.
Prashant Kamat, a professor of chemistry and biochemistry at Notre Dame University who has done extensive work on dye-sensitized solar cells, says that while others have attempted to use carbon nanotubes to improve solar cell efficiency, “the improvements observed in earlier studies were marginal,” while the improvements by the MIT team using the virus assembly method are “impressive.”
“It is likely that the virus template assembly has enabled the researchers to establish a better contact between the TiO2 nanoparticles and carbon nanotubes. Such close contact with TiO2 nanoparticles is essential to drive away the photo-generated electrons quickly and transport it efficiently to the collecting electrode surface.”
Kamat thinks the process could well lead to a viable commercial product: “Dye-sensitized solar cells have already been commercialized in Japan, Korea and Taiwan,” he says. If the addition of carbon nanotubes via the virus process can improve their efficiency, “the industry is likely to adopt such processes.”
Belcher and her colleagues have previously used differently engineered versions of the same virus to enhance the performance of batteries and other devices, but the method used to enhance solar cell performance is quite different, she says.
Because the process would just add one simple step to a standard solar-cell manufacturing process, it should be quite easy to adapt existing production facilities and thus should be possible to implement relatively rapidly, Belcher says.
The research team also included Paula Hammond, the Bayer Professor of Chemical Engineering; Michael Strano, the Charles (1951) and Hilda Roddey Career Development Associate Professor of Chemical Engineering; and four other graduate students and postdoctoral researchers. The work was funded by the Italian company Eni, through the MIT Energy Initiative’s Solar Futures Program.
MIT News web.mit.edu/newsoffice
Tuesday, May 3, 2011
German Green Party move forward in Germany
Germany’s Green party will make its debut in power this May as part of a coalition with the Social Democrats in one of the country’s south-western states.
The centre-left Social Democrat party SPD reportedly signed an agreement with the Greens this week after beating the conservative party for the rein in Baden-Wuerttemberg in March.
Green party politician Winfried Kretschmann will be the party’s first member to lead a German state.
The change follows 58 years of control by the Christian Democrats in the state.
The Green party will have a greater share of power in the state as it led the votes by one percentile point.
Kretschmann said he hopes the coalition seat will become a model for other states in the country, according to reports.
Concerns over nuclear power are thought to have prompted the switch to green leadership. Germany’s Chancellor Angela Merkel has until now supported nuclear power, but put a moratorium on seven nuclear plants following radiation leaks at the Fukushima plant in Japan.
The newly-found power in the hands of the Greens could signal a step-change away from nuclear power in the rest of the country.
The centre-left Social Democrat party SPD reportedly signed an agreement with the Greens this week after beating the conservative party for the rein in Baden-Wuerttemberg in March.
Green party politician Winfried Kretschmann will be the party’s first member to lead a German state.
The change follows 58 years of control by the Christian Democrats in the state.
The Green party will have a greater share of power in the state as it led the votes by one percentile point.
Kretschmann said he hopes the coalition seat will become a model for other states in the country, according to reports.
Concerns over nuclear power are thought to have prompted the switch to green leadership. Germany’s Chancellor Angela Merkel has until now supported nuclear power, but put a moratorium on seven nuclear plants following radiation leaks at the Fukushima plant in Japan.
The newly-found power in the hands of the Greens could signal a step-change away from nuclear power in the rest of the country.
Friday, April 29, 2011
Italy PV still in vogue
The closely watched Italian solar market is only slightly relieved by the announcement that Italy will extend its current solar incentives until the end of August.
Italy's regional governments had said previously that they would seek less severe cuts to state incentives for the solar power sector, which were due to end in June. The regional leaders also rejected draft proposals from the government after a meeting today.
Environment Minister Stefania Prestigiacomo said they had also asked for an extension of the current incentives, not until the end of August, but until the end of 2011. The three-month extension until the end of August is under discussion.
The Italian government instituted policies to promote solar in its country, which despite its abundant sunshine, has to import 87% of its electricity. Solar installations in Italy took off—growing from just 60MW installed in 2007 to nearly 2GW in 2010.
Feed-in tariffs were expected to be reduced in June, which many thought would curtail the expected 4GW installed in 2011. An extension through August may send the market soaring through the summer months, though uncertainty may follow.
Italy's regional governments had said previously that they would seek less severe cuts to state incentives for the solar power sector, which were due to end in June. The regional leaders also rejected draft proposals from the government after a meeting today.
Environment Minister Stefania Prestigiacomo said they had also asked for an extension of the current incentives, not until the end of August, but until the end of 2011. The three-month extension until the end of August is under discussion.
The Italian government instituted policies to promote solar in its country, which despite its abundant sunshine, has to import 87% of its electricity. Solar installations in Italy took off—growing from just 60MW installed in 2007 to nearly 2GW in 2010.
Feed-in tariffs were expected to be reduced in June, which many thought would curtail the expected 4GW installed in 2011. An extension through August may send the market soaring through the summer months, though uncertainty may follow.
Wednesday, April 6, 2011
German Legal Overview
GERMAN LEGAL FRAMEWORK SOLAS POWER: log onto the German government website for details on the German FIT and legal framework see http://www.res-legal.de/en/search-for-countries/germany.html
Solas Power in negotiations with large EPC
Solas Power is in negotiations with a large EPC to built upwards of 20MW in Germany for the second half of 2011.
Tuesday, April 5, 2011
1MW Grid Connected Project For Sale - €4.3M
FOR SALE: 1MW Photovoltaic plant in Apulia, Italy. This project is already connected to the grid and has been awarded the 2010 tariff by GSE. The plant is fitted with LDK 220 modules, and SIAC-SIEL 250x4 inverters. The price is €4,300,000 and in case of interest an immediate meeting with the legal representative of the prospective buyer should be arranged who, upon positive outcome of the meeting, should deposit in escrow with a notary public a sum to be mutually agreed upon in order to obtain full documentation for the DD. It must be also noted that, due to the fact that the plant is already in operation, the time granted for the DD operations will very likely not exceed ten days.
Thursday, March 24, 2011
Solar Panel Efficiency:
If we're trying to judge solar panel efficiency we should probably know what "efficiency" means?
Module efficiency refers to the ratio of output power to input power.
In other words: How much electricity can a solar panel produce from a certain amount of sunlight.
So if a solar panel creates a hundred watts of power from a thousand watts of sunlight, it has an efficiency of 10%.
Solar panel efficiency can be a tricky issue. Different companies claim to have the most efficient panel and they're not lying, they are just making their judgments on different criteria.
The two main category separations for "most efficient" are:
1.Lab results vs. commercially available product
2.Flat-panel vs. crystalline silicon panel
We can say generally that solar panel efficiency ranges from about 6% to over 20%. That's quite a range isn't it? But there is a good reason for it and it involves the flat-panel vs. crystalline silicon panel issue.
In the 6% efficiency range we have the products of companies like Uni-Solar and Kaneka. As you may have guessed, these companies produce thin-film solar products and not the traditional solar panels we're used to.
Why would anyone buy these less efficient panels? Well, the main reason is that they're cheaper. So if you look at it from the "how much electricity do I get for my money" point of view, thin-film technology is competitive with traditional solar panels.
Also, thin-film technology is actually more efficient than traditional solar panels in cloudy conditions and on hot days. Depending on your climate, this could be a big plus.
The average efficiency for crystalline silicon ("traditional") solar panels is in the 11%-13% range. So how have some panels achieved 20% efficiency? They've combined thin-film technology with crystalline silicon technology.
Sanyo is the leader in this "bifacial" module market. Sanyo's "HIT Double" line uses crystalline silicon for the majority of the module's power output. Thin-film technology is then used on the back of the panel to capture ambient light reflected off surrounding surfaces.
This bifacial idea may be a perfect solution if you have limited space and are looking to maximize power output.
Also, SunPower has just announced that they have developed a 333 Watt solar panel with a 20.4% total area efficiency. Unfortunately it will still be a while before it's available commercially.
The important thing to remember is that unless you have a pressing reason to go with high-efficiency panels (e.g. limited space), you should be more concerned with how many watts of power you're getting for your Euro.
Module efficiency refers to the ratio of output power to input power.
In other words: How much electricity can a solar panel produce from a certain amount of sunlight.
So if a solar panel creates a hundred watts of power from a thousand watts of sunlight, it has an efficiency of 10%.
Solar panel efficiency can be a tricky issue. Different companies claim to have the most efficient panel and they're not lying, they are just making their judgments on different criteria.
The two main category separations for "most efficient" are:
1.Lab results vs. commercially available product
2.Flat-panel vs. crystalline silicon panel
We can say generally that solar panel efficiency ranges from about 6% to over 20%. That's quite a range isn't it? But there is a good reason for it and it involves the flat-panel vs. crystalline silicon panel issue.
In the 6% efficiency range we have the products of companies like Uni-Solar and Kaneka. As you may have guessed, these companies produce thin-film solar products and not the traditional solar panels we're used to.
Why would anyone buy these less efficient panels? Well, the main reason is that they're cheaper. So if you look at it from the "how much electricity do I get for my money" point of view, thin-film technology is competitive with traditional solar panels.
Also, thin-film technology is actually more efficient than traditional solar panels in cloudy conditions and on hot days. Depending on your climate, this could be a big plus.
The average efficiency for crystalline silicon ("traditional") solar panels is in the 11%-13% range. So how have some panels achieved 20% efficiency? They've combined thin-film technology with crystalline silicon technology.
Sanyo is the leader in this "bifacial" module market. Sanyo's "HIT Double" line uses crystalline silicon for the majority of the module's power output. Thin-film technology is then used on the back of the panel to capture ambient light reflected off surrounding surfaces.
This bifacial idea may be a perfect solution if you have limited space and are looking to maximize power output.
Also, SunPower has just announced that they have developed a 333 Watt solar panel with a 20.4% total area efficiency. Unfortunately it will still be a while before it's available commercially.
The important thing to remember is that unless you have a pressing reason to go with high-efficiency panels (e.g. limited space), you should be more concerned with how many watts of power you're getting for your Euro.
Wednesday, March 23, 2011
Tuesday, March 22, 2011
Solas Power to close deal on 6MW in Italy
Solas Power has entered into inital negotiations with a large EPC contractor to purchase 6MW which are to be installed at 2010 Conto Engeria FIT.
Solas Power secures a further 7MW
Solas Power has secured a further 7MW of Roof Top Projects in Germany. These proejcts will benefit from the Quarter 2, 2011 FIT. These will be built over the next 12 months and will have a capital expenditure cost exceeding €17,500,000.
Project I004 - Update
I004 is a 183.6kWp project located in Germany and is now at an advanced stage. Having completed all roof repairs, and module mountings it is awaiting Modules.
New Project Acquired for Solas Power Investors - I012
Solas Power has acquired a 350kWp project as part of its portfolio.
Comparing a Solar kWh with a nuclear kWh is not pertinent
Rotterdam/Marseille, November 3rd 2010 – Will solar energy be one day cheaper than nuclear energy? In the state of North Carolina, in the U.S., this is already a reality, based on a study published this summer (1). According to the authors of this report, two researchers at Duke University, the cost of solar energy is currently competing with nuclear energy, cancelling out public financial subsidies.
Will solar power one day replace nuclear power in France?
“This is certainly not the right question to ask, ” warns Arnaud Mine, chairman of Soler, the photovoltaic branch of the Syndicat des Energies Renouvelables (Syndicate of Renewable Energies). “Rationally speaking, we cannot compare the costs of these two types of energy one against the other, because they don’t represent the same thing. ” When we quote the price of a kWh produced by a nuclear power station, we don’t take in account the cost of its delivery to the user, the home or the company. Nor does it comprise the cost of the power station’s disassembly, or the cost of waste management and storage, etc. “A solar kWh does not include all these supplementary costs, ” emphasizes Arnaud Mine, “since it is produced in proximity to the consumer ”.
The specialist also notes that whereas a nuclear kWh produces approximately the same energy all year round, this is not the case of the solar kWh. The latter is produced mostly during the summer and during daytime, which actually corresponds very well to the consumption profile of the south of France in particular, and of the building market where it is quickly becoming a competitor.
In Arnaud Mine’s view, we must compare the solar kWh to the kWh of the final retail price once the photovoltaic generators are installed in the buildings. And as far as this plan goes, Mine has no doubt whatsoever: “the solar kWh will become absolutely pertinent in the next five years, ” he estimates. “With the optimization of output, the release of new technologies, the drop in prices, and the volunteer approach of the manufacturers, the consumer price of a solar kWh should get down to 15 cents at that point”. Today, the buying price is around 35 to 37 cents. Eventually, if we’re to trust the specialist, photovoltaic energy will be technologically significant and should become an undeniable solution for building. This includes France, where the market is dominated by nuclear energy. The future of solar energy will be the theme of the conference organized by Solarplaza on the 9th of the coming month of November, in Marseille.
Website: http://www.thesolarfuture.fr/
(1) Solar and Nuclear Costs - The Historic Crossover : Solar Energy is Now the Better Buy; a study carried out by John O. Blackburn and Sam Cunningham - Duke University of North Carolina, with the participation of the non-government organization NC WARN (Waste Awareness & Reduction Network).
Source: www.solarplaza.com
Greg Barker outlines proposals to protect green electricity scheme
UK FIT reduction good news for German SolarProposals to reduce the financial support available to larger scale solar-produced electricity have been published by the Government today as part of plans to protect financial support for homes, communities and small businesses. The consultation follows the launch in February of a fast-track review into how the Feed-in Tariffs (FITs) work for solar photovoltaic (PV) over 50 kW after evidence showing that there could already be 169 MW of large scale solar capacity in the planning system - equivalent to funding solar panels on the roofs of around 50,000 homes if tariffs are left unchanged.
Such projects could potentially soak up the subsidy that would otherwise go to smaller renewable schemes or other technologies such as wind, hydro and anaerobic digestion.
Projections at the start of the scheme had shown no large scale solar under the FITs was expected until at least 2013.
Today’s consultation also covers proposals to provide added support to farm-scale anaerobic digestion given the disappointing uptake of such technologies to date.
Greg Barker, Climate Change Minister said:
“Our cash for green electricity scheme is a great way to reward homes, communities and small businesses that produce their own renewable power.
“I’m committed to an ambitious roll out of microgeneration technologies as part of the Coalition’s green vision of a much more decentralised energy economy.
“I want to make sure that we capture the benefits of fast falling costs in solar technology to allow even more homes to benefit from feed in tariffs, rather than see that money go in bumper profits to a small number of big investors.
“These proposals aim to rebalance the scheme and put a stop to the threat of larger-scale solar soaking up the cash. The FITs scheme was never designed to be a profit generator for big business and financiers.
“Britain’s solar industry is a vital part of our renewables future and our growing green economy. The new tariff rates we’re putting forward today for consultation will provide a level of support for all solar PV and ensure a sustained growth path for industry.
“Taking a pro-active approach to changing tariffs will allow us to avoid the boom-and-bust approach we have seen in other countries and enable us to support more homes and community schemes, and a wider range of technologies such as wind, hydro and anaerobic digestion.”
As solar PV technology has developed, its costs have reduced, and are now believed to be around 30% lower than originally projected. This means the technology does not need as much support to be competitive.
The Government is therefore proposing reducing the support for all new PV installations larger than microgeneration size (50kW) and stand alone installations. The new proposed rates are:
* 19p/kWh for 50kW to 150kW
* 15p/kWh for 150kW to 250kW
* 8.5p/kWh for 250kW to 5MW and stand-alone installations
These compare with the tariffs that would otherwise apply from 1 April of:
* 32.9p/kWh for 10kw to 100kw
* 30.7/kWh for 100kw to 5MW and stand-alone installations
Such changes are in line with amendments made to similar schemes in Europe where in Germany, France and Spain tariffs for PV have been reduced sharply over the past year.
Alongside the fast-track review of solar, a short study has also been undertaken into the lack of uptake of FITs for farm-scale anaerobic digestion. The study suggests that the tariff for this technology is not high enough to make such schemes worthwhile. The proposed new tariffs are:
* 14p/kWh for AD installations with a total installed capacity of up to 250 kW
* 13p/kWh for AD installations with a total installed capacity of between 250 kW and 500 kW
These compare with the tariffs that would otherwise apply from 1 April of 12.1p/kWh for AD up to 500 kW.
Government policy is specifically to deliver an increase in energy from waste through anaerobic digestion, not to promote energy crops, particularly where these are grown to the exclusion of food producing crops. DECC is talking to Defra and others about the best way to implement controls to make sure this does not happen.
The Government will not act retrospectively and any changes to generation tariffs implemented as a result of the review will only affect new entrants into the FITs scheme. Installations which are already accredited for FITs will not be affected. Solar PV installations less than 50kW are not affected by this fast track review.
These changes are proposed to be implemented in advance of the comprehensive review of FITs, which is currently underway and will look at all aspects of the scheme.
Such projects could potentially soak up the subsidy that would otherwise go to smaller renewable schemes or other technologies such as wind, hydro and anaerobic digestion.
Projections at the start of the scheme had shown no large scale solar under the FITs was expected until at least 2013.
Today’s consultation also covers proposals to provide added support to farm-scale anaerobic digestion given the disappointing uptake of such technologies to date.
Greg Barker, Climate Change Minister said:
“Our cash for green electricity scheme is a great way to reward homes, communities and small businesses that produce their own renewable power.
“I’m committed to an ambitious roll out of microgeneration technologies as part of the Coalition’s green vision of a much more decentralised energy economy.
“I want to make sure that we capture the benefits of fast falling costs in solar technology to allow even more homes to benefit from feed in tariffs, rather than see that money go in bumper profits to a small number of big investors.
“These proposals aim to rebalance the scheme and put a stop to the threat of larger-scale solar soaking up the cash. The FITs scheme was never designed to be a profit generator for big business and financiers.
“Britain’s solar industry is a vital part of our renewables future and our growing green economy. The new tariff rates we’re putting forward today for consultation will provide a level of support for all solar PV and ensure a sustained growth path for industry.
“Taking a pro-active approach to changing tariffs will allow us to avoid the boom-and-bust approach we have seen in other countries and enable us to support more homes and community schemes, and a wider range of technologies such as wind, hydro and anaerobic digestion.”
As solar PV technology has developed, its costs have reduced, and are now believed to be around 30% lower than originally projected. This means the technology does not need as much support to be competitive.
The Government is therefore proposing reducing the support for all new PV installations larger than microgeneration size (50kW) and stand alone installations. The new proposed rates are:
* 19p/kWh for 50kW to 150kW
* 15p/kWh for 150kW to 250kW
* 8.5p/kWh for 250kW to 5MW and stand-alone installations
These compare with the tariffs that would otherwise apply from 1 April of:
* 32.9p/kWh for 10kw to 100kw
* 30.7/kWh for 100kw to 5MW and stand-alone installations
Such changes are in line with amendments made to similar schemes in Europe where in Germany, France and Spain tariffs for PV have been reduced sharply over the past year.
Alongside the fast-track review of solar, a short study has also been undertaken into the lack of uptake of FITs for farm-scale anaerobic digestion. The study suggests that the tariff for this technology is not high enough to make such schemes worthwhile. The proposed new tariffs are:
* 14p/kWh for AD installations with a total installed capacity of up to 250 kW
* 13p/kWh for AD installations with a total installed capacity of between 250 kW and 500 kW
These compare with the tariffs that would otherwise apply from 1 April of 12.1p/kWh for AD up to 500 kW.
Government policy is specifically to deliver an increase in energy from waste through anaerobic digestion, not to promote energy crops, particularly where these are grown to the exclusion of food producing crops. DECC is talking to Defra and others about the best way to implement controls to make sure this does not happen.
The Government will not act retrospectively and any changes to generation tariffs implemented as a result of the review will only affect new entrants into the FITs scheme. Installations which are already accredited for FITs will not be affected. Solar PV installations less than 50kW are not affected by this fast track review.
These changes are proposed to be implemented in advance of the comprehensive review of FITs, which is currently underway and will look at all aspects of the scheme.
Testing of New Technology
Solas Power is currently testing new technology which will revolutionise the Solar industry. This technology will result in a 10% increase in output of your Solar plant. We are currently carrying tests on this system and once completed will be implementing this on all of our plants.
The testing involves two identical sites with the same solar modules, inverters and orientation. The new technology is then incorporated into site one for 1 week and then the modules are swapped over and the test carried out again.
We will keep you updated as these tests progress.
Solas Power I008 Project - Update
Project I008 - Under-construction on Roof 1 now complete, We are now awaiting completion of roof repair on Roof 2 of I008.
Photos of roof construction on Project I008 as of the 13th January 2011
Project I008 Roof preparation on 13th January 2011
Solas Power Project I010 in Final stages of Construction
Solas Power are pleased to announce that one of our German projects is nearing completion as Modules are fitted.
Japan's ill wind may blow positives for German Solar
Solas Power has noted that the nuclear power plant crisis unfolding in Japan after the massive earthquake has already caused political fallout in Germany and could usher in a new era of renewable energy in Europe's largest economy.
On Tuesday Germany became the first European country to shut nuclear plants in the wake of the crisis in Japan. The move by the German government to temporarily close seven older plants came just one day after Chancellor Angela Merkel had imposed a three-month moratorium on the extension of the country’s 17 nuclear power stations.
During this time, experts will carry out new security checks at all reactors and, equally important, policymakers in Berlin will debate whether or not to permanently reverse a policy that could have allowed energy companies to extend the operating lives of their reactors for 12 years.
Last year, Merkel’s center-right coalition took the controversial step of prolonging the lives of nuclear power stations in a move that the chancellor said would secure the supply of affordable electricity while the country converts to renewable energy sources. That decision reversed an earlier ruling taken by the previous center-left government in 2002 to phase out all nuclear plants by 2021.
Other European governments have been scrambling to step up efforts to assess nuclear safety as well. Switzerland, for instance, has imposed a moratorium on three plants while Finland announced plans to the safety of its nuclear reactors. Along its coastlines, the Nordic country operates seven boiling water reactors of the type affected in Japan.
As European countries and others around the world rethink their nuclear power strategies, traders are shifting their money into renewable energy, solar in particular. German solar panel company, Solarworld AG, is among the biggest beneficiaries; the company has seen its stock soared more than 30 percent since the government announced its decision to shut down seven plants and reassess its long-term nuclear power strategy.
Renewable energy interest groups in Germany are seizing the opportunity to promote alternative energy sources.
"If the federal government is really serious about an accelerated development of renewable energy, it must permanently withdraw the lifetime extension of nuclear power plants and not just for three months," said Dietmar Schutz, president of the German Renewable Energy Federation (BEE). "The extension is not a bridge, but a serious obstacle to the necessary restructuring of our energy system."
Currently, nuclear energy accounts for 23 percent of German energy and renewable energies 16 percent. Schutz said that renewable energies would be able to cover 47 percent of German energy demand by 2020.
Solar energy is developing rapidly in Germany, thanks largely to its favorable feed-in tariffs. Solar capacity is now around 17 GW, with 7 GW added last year alone.
In cloudy Germany, however, the government sees the greatest potential in wind power. At the end of 2009, the country had 21,164 wind power stations with a capacity of 25.7 GW. By 2025, wind power is expected to account for 25 percent of electricity generation. About 40 off-shore wind farms are planned along the country’s northern coastlines with a capacity of 25 GW.
But Germany will have to invest in new grids that can not only transport energy from the new wind parks but are also capable of handling fluctuating levels of wind and solar energy and of managing energy generated by many small facilities spread across the country.
That will cost money and that could be an issue in a country where energy prices have been going nowhere but up. The Japanese nuclear disaster, however, has heightened fears of the technology and strengthened an anti-nuclear lobby and the opposition of the Social Democratic Party (SPD) and Green Party ahead of upcoming regional elections. Numerous anti-nuclear rallies have taken place across the country.
Germans, who have been closely following the ongoing nuclear catastrophe in Japan, may now be willing to pay more for energy they view as safer and more environmentally friendly.
Source: http://www.renewableenergyworld.com/rea/news/article/2011/03/german-solar-energy-may-get-a-boost-from-japans-nuclear-disaster?cmpid=SolarNL-Tuesday-March22-2011
On Tuesday Germany became the first European country to shut nuclear plants in the wake of the crisis in Japan. The move by the German government to temporarily close seven older plants came just one day after Chancellor Angela Merkel had imposed a three-month moratorium on the extension of the country’s 17 nuclear power stations.
During this time, experts will carry out new security checks at all reactors and, equally important, policymakers in Berlin will debate whether or not to permanently reverse a policy that could have allowed energy companies to extend the operating lives of their reactors for 12 years.
Last year, Merkel’s center-right coalition took the controversial step of prolonging the lives of nuclear power stations in a move that the chancellor said would secure the supply of affordable electricity while the country converts to renewable energy sources. That decision reversed an earlier ruling taken by the previous center-left government in 2002 to phase out all nuclear plants by 2021.
Other European governments have been scrambling to step up efforts to assess nuclear safety as well. Switzerland, for instance, has imposed a moratorium on three plants while Finland announced plans to the safety of its nuclear reactors. Along its coastlines, the Nordic country operates seven boiling water reactors of the type affected in Japan.
As European countries and others around the world rethink their nuclear power strategies, traders are shifting their money into renewable energy, solar in particular. German solar panel company, Solarworld AG, is among the biggest beneficiaries; the company has seen its stock soared more than 30 percent since the government announced its decision to shut down seven plants and reassess its long-term nuclear power strategy.
Renewable energy interest groups in Germany are seizing the opportunity to promote alternative energy sources.
"If the federal government is really serious about an accelerated development of renewable energy, it must permanently withdraw the lifetime extension of nuclear power plants and not just for three months," said Dietmar Schutz, president of the German Renewable Energy Federation (BEE). "The extension is not a bridge, but a serious obstacle to the necessary restructuring of our energy system."
Currently, nuclear energy accounts for 23 percent of German energy and renewable energies 16 percent. Schutz said that renewable energies would be able to cover 47 percent of German energy demand by 2020.
Solar energy is developing rapidly in Germany, thanks largely to its favorable feed-in tariffs. Solar capacity is now around 17 GW, with 7 GW added last year alone.
In cloudy Germany, however, the government sees the greatest potential in wind power. At the end of 2009, the country had 21,164 wind power stations with a capacity of 25.7 GW. By 2025, wind power is expected to account for 25 percent of electricity generation. About 40 off-shore wind farms are planned along the country’s northern coastlines with a capacity of 25 GW.
But Germany will have to invest in new grids that can not only transport energy from the new wind parks but are also capable of handling fluctuating levels of wind and solar energy and of managing energy generated by many small facilities spread across the country.
That will cost money and that could be an issue in a country where energy prices have been going nowhere but up. The Japanese nuclear disaster, however, has heightened fears of the technology and strengthened an anti-nuclear lobby and the opposition of the Social Democratic Party (SPD) and Green Party ahead of upcoming regional elections. Numerous anti-nuclear rallies have taken place across the country.
Germans, who have been closely following the ongoing nuclear catastrophe in Japan, may now be willing to pay more for energy they view as safer and more environmentally friendly.
Source: http://www.renewableenergyworld.com/rea/news/article/2011/03/german-solar-energy-may-get-a-boost-from-japans-nuclear-disaster?cmpid=SolarNL-Tuesday-March22-2011
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