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.
Investing in the future of energy is in all our long-term interests but, for those with foresight, the monetary returns could occur sooner than you think.
Friday, April 29, 2011
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
Monday, March 21, 2011
Australia-German partnership for cheaper solar power generation
Australia-German partnership for cheaper solar power generation
THE AUSTRALIAN Solar Institute is entering into a research and development partnership with a German organisation to improve solar power capabilities.
The R&D MoU was signed by Minister for Innovation, Industry, Science and Research Senator Kim Carr.
The European partner is Deutches Zentrum für Luft- und Raumfahrt (DLR), and the partnership will develop concentrating solar power (CSP) technologies.
Australian researchers will be able to investigate cost and efficiency improvements in CSP. The organisations expect the R&D effort to increase efficiency and lower the costs of producing energy from the sun, with the technology possibly becoming commercialised later.
The ASI and DLR have already agreed a number of priority activities for immediate commencement, including high temperature CSP modelling and high temperature receiver performance and analysis.
Australia’s CSIRO will initially lead the scoping of Australia’s involvement in these areas, with the ASI seeking to broaden Australia’s involvement in the near future.
Previously, the ASI signed an MoU with Germany’s Fraunhofer Institute, which focuses on solar photovoltaic technologies. It is also developing the US-Australia Solar Research Collaboration announced in late 2010.
Concentrated solar power technology uses mirrors to concentrate a large area of sunlight onto a small area. Electrical power is produced when the concentrated light is converted to heat to drive a steam turbine connected to an electrical power generator.
The R&D MoU was signed by Minister for Innovation, Industry, Science and Research Senator Kim Carr.
The European partner is Deutches Zentrum für Luft- und Raumfahrt (DLR), and the partnership will develop concentrating solar power (CSP) technologies.
Australian researchers will be able to investigate cost and efficiency improvements in CSP. The organisations expect the R&D effort to increase efficiency and lower the costs of producing energy from the sun, with the technology possibly becoming commercialised later.
The ASI and DLR have already agreed a number of priority activities for immediate commencement, including high temperature CSP modelling and high temperature receiver performance and analysis.
Australia’s CSIRO will initially lead the scoping of Australia’s involvement in these areas, with the ASI seeking to broaden Australia’s involvement in the near future.
Previously, the ASI signed an MoU with Germany’s Fraunhofer Institute, which focuses on solar photovoltaic technologies. It is also developing the US-Australia Solar Research Collaboration announced in late 2010.
Concentrated solar power technology uses mirrors to concentrate a large area of sunlight onto a small area. Electrical power is produced when the concentrated light is converted to heat to drive a steam turbine connected to an electrical power generator.
Czech Solar Tax sent to Supreme Court
On March 3, 2011 a group of 22 Czech senators filed a complaint to the Supreme Court against a new Czech PV law, which introduced a 26% tax on solar energy production. The senators are concerned about the impact of solar arbitrages against the Czech Republic in the near future.
The solar tax imposed by the Czech Government basically means a decrease of the current FiT that was supposed to be guaranteed to investors for 20 years by the Government. The proceeds from the taxes are to be used to reduce the increase in household and industrial electricity prices over the next three years.
The Czech Photovoltaic Industrial Association (CZEPHO) and a group of PV investors have taken great pains during the past 2 months to lobby in the Senate against the solar tax. They managed to obtain a special legal appraisal proving that the solar tax constituted a considerable violation of the Czech Constitution.
Good Outlook
The Supreme Court of the Czech Republic will have to assess the senators´ complaint against the solar tax. This process is likely to take several months. However, the odds are high that the Supreme Court will reject the solar tax legislation on the grounds that it substantially interferes with the legitimate expectations of solar power plant operators in the Czech Republic as well as with other provisions of the Czech Constitution.
Considerable Losses
Investors in solar power are likely to lose over several million euros before the solar tax is cancelled. Based on the available estimates, the incurred losses of the investors amounted to well over 10 million euros in the period from January to February 2011 - and this is why investors will continue their litigations and arbitrations against the Government of the Czech Republic.
New Legislative Battle
It seems that the battle against the solar tax will be successful. However, representatives of the Czech PV industry are concerned about new “solar legislation” they will have to cope with. The reason for this is that Czech officials have been working hard on new “solar legislation” which may affect solar investments in the country in the near future.
The Czech Photovoltaic Industrial Association (CZEPHO) and a group of PV investors have taken great pains during the past 2 months to lobby in the Senate against the solar tax. They managed to obtain a special legal appraisal proving that the solar tax constituted a considerable violation of the Czech Constitution.
Good Outlook
The Supreme Court of the Czech Republic will have to assess the senators´ complaint against the solar tax. This process is likely to take several months. However, the odds are high that the Supreme Court will reject the solar tax legislation on the grounds that it substantially interferes with the legitimate expectations of solar power plant operators in the Czech Republic as well as with other provisions of the Czech Constitution.
Considerable Losses
Investors in solar power are likely to lose over several million euros before the solar tax is cancelled. Based on the available estimates, the incurred losses of the investors amounted to well over 10 million euros in the period from January to February 2011 - and this is why investors will continue their litigations and arbitrations against the Government of the Czech Republic.
New Legislative Battle
It seems that the battle against the solar tax will be successful. However, representatives of the Czech PV industry are concerned about new “solar legislation” they will have to cope with. The reason for this is that Czech officials have been working hard on new “solar legislation” which may affect solar investments in the country in the near future.
Source Solar Plaza http://www.solarplaza.com/article/czech-pv-termination-of-czech-solar-tax
Wednesday, March 16, 2011
Germany shuts Nuclear Plants amid safety fears
Solas Power has learned from The Irish Times www.irishtimes.com that German CHANCELLOR ANGELA Merkel has announced a three-month shutdown of Germany’s oldest nuclear reactors pending a security review.
The explosions in the Japanese nuclear power plant, triggered by last week’s earthquake, have prompted 100,000 Germans to take to the street in protest at Dr Merkel’s government support for the nuclear energy sector.
After taking office, Dr Merkel’s administration set aside a proposal to make Germany nuclear-free by 2020, extending the life of ageing nuclear plants into the mid-2030s.
Dr Merkel reacted yesterday to the growing pressure with a temporary moratorium, during which she has called for a discussion about safety standards and Germany’s continued lack of a storage facility for nuclear waste.
“We are launching a safety review of all nuclear reactors . . . and all reactors in operation since the end of 1980 are to be idled a three-month moratorium,” said Dr Merkel.
“This moratorium will run until June 15th, after which we will know how to proceed.”
Energy companies criticised the move as “rash and expensive”, while the political opposition suggested it was a stunt ahead of state elections this month.
The seven reactors to be shut down have all been operational since before 1980; two are in the southwestern state of Baden-Württemberg where Dr Merkel’s Christian Democrats (CDU) are fighting for re-election on March 27th.
“This is election trickery,” said Sigmar Gabriel, head of the opposition Social Democrats (SPD), saying Dr Merkel would return after the election “and say that everything is okay and that German nuclear plants are safe”.
Dr Merkel’s government reversed the SPD-Green Party nuclear shutdown in 2009, claiming the renewable energy sector could not yet fill the quarter of Germany’s energy needs currently generated by its 17 nuclear energy plants.
The government denied the move marked a nuclear energy renaissance in Germany, pointing out that it would permit no new nuclear energy plants to be built and that it viewed atomic energy as a “bridging technology” until the renewables sector had matured.
The 2009 reversal met with little widespread protests, but the Japanese disaster has reawakened fears of the Chernobyl and Three-Mile Island incidents in Germany.
On Saturday, anti-nuclear protesters formed a 45km human chain from a nuclear plant to Stuttgart.
Recent polls show that 60 per cent of Germans want to shutter all 17 nuclear plants in the country, with 70 per cent fearful that a Japanese-style disaster could happen in Germany.
Japan Nuclear fears raise Solar stocks
Solas Power has seen a sharp rise in support for Solar Power as markets have called solar power the second best thing in clean energy. Solar power stocks have soared since concerns about a nuclear meltdown in one of Japan’s nuclear power plants have sent investors running to alternative clean energy companies.
The market move indicates that investors in clean energy prefer nuclear power as a first option over solar power. That’s because solar power, which uses flat photovoltaic panels that absorb sunlight and convert it to electricity, is still in infancy. Typical wafer-style solar panels can capture around 30 percent of the sunlight shining on them and convert it into electricity. Flexible, thin-film photovoltaic cells that can be placed on most surfaces can only capture anywhere from 15 to 20 percent of the sunlight shining on them.
Nuclear power produces energy by generating controlled nuclear reactions that produce tremendous amounts of heat. That heats up water, which produces steam that spins a turbine. The turbine produces electricity. Nuclear power is considered cleaner than fossil fuel burning power plants, which use natural gas, petroleum and coal. Burning all of those produces greenhouse gasses.
But a critical nuclear reactor nearly experienced a meltdown after an 9.0-magnitude earthquake rocked the northeastern part of Japan last week. Plant officials were able to halt the nuclear reaction by withdrawing the fuel rods that power the reactor, but residual reactions and heat were still causing problems as of Monday. Investors are basically betting that the media frenzy that has taken off as a result of the snafu will generate some additional buzz for solar power, another form of clean energy that has no negative byproducts.
The United States solar power industry seems to be doing well and is on track to have a good year. It’s attracting investment from companies that want to buy up demand. Chinese player LDK Solar, for example, picked up a $33 million majority stake in Solar Power, Inc. There are a number of solar power companies that have already gone public. The U.S. solar power industry also grew 67 percent to $6 billion in 2010, up from $3.8 billion in 2009, according to the Solar Energy Industries Association.
Shares of FirstSolar, which produces thin-film flexible photovoltaic cells, were up more than 4.5 percent in midday trading. Shares of Suntech Power, a Chinese solar panel manufacturer, were up 3.4 percent in midday trading. Other solar panel companies, like SunPower and LDK Solar, were all up more than 1 percent
Friday, February 4, 2011
Emerging Markets in FIT
EMERGING MARKETS in Renewable Energy FITs
Solas Power as part of its global presence is currently seeking new markets and one market that has become of interest are, Turkey, Uganda and Vietnam.
No newcomer to the concept, Turkey revised their program, expanding it modestly, and added a new twist with bonus payments for "Made in Turkey" products.
This week it is the US's former military foe, Vietnam, that dipped its toe into the feed-in tariff waters by announcing a draft proposal.
But it is Uganda that will set heads spinning this week. Quietly, without fanfare, Uganda has announced one of the most sophisticated, if not the most sophisticated program in Africa.
Vietnam
Vietnam's program is il-defined and limited, providing a tariff only for wind energy. Further, the tariff is supplemented by a government subsidy, presumably paid by taxpayers in the communist country.
Solas Power as part of its global presence is currently seeking new markets and one market that has become of interest are, Turkey, Uganda and Vietnam.
No newcomer to the concept, Turkey revised their program, expanding it modestly, and added a new twist with bonus payments for "Made in Turkey" products.
This week it is the US's former military foe, Vietnam, that dipped its toe into the feed-in tariff waters by announcing a draft proposal.
But it is Uganda that will set heads spinning this week. Quietly, without fanfare, Uganda has announced one of the most sophisticated, if not the most sophisticated program in Africa.
Vietnam
Vietnam's program is il-defined and limited, providing a tariff only for wind energy. Further, the tariff is supplemented by a government subsidy, presumably paid by taxpayers in the communist country.
Uganda
Of particular interest are the highly differentiated tariffs for hydro projects from one to eight megawatts. The tariffs are in fact linear but presented in tabular form in increments of 100 kW.
Of particular interest are the highly differentiated tariffs for hydro projects from one to eight megawatts. The tariffs are in fact linear but presented in tabular form in increments of 100 kW.
Further, the Uganda program specifies capacity caps for each technology by year. This is clear policy guidance on how much the country wants of which technology.
Italy, FIT, 2010, exceeding estimates
Solas Power has learned that Italy has officially reported this week that circa. 1,850 MW of new solar photovoltaics (PV) systems were installed in 2010, substantially exceeding industry estimates.
The Gesore dei Servizi Energetici (GSE) added that data is still coming in for 2010 and that the total installed capacity through 2010 may reach 3,000 MW from 150,000 systems.
It isnoted that Italy has installed 711 MW of solar PV in 2009, 340 MW in 2008, and only 60 MW in 2007.
The GSE says that there are an additional 4,000 MW of solar PV from 55,000 systems in the pipeline that potentially will bring total installed capacity to 7,000 MW.
Italy's 2020 target for solar PV is 8,000 MW.
Though there are no official statistics available on solar installations in the USA, industry sources estimate that as much as 800 MW and possibly up to 900 MW of solar PV were installed in 2010.
If true, it appears that Italy with 60 million inhabitants installed three times more solar PV in 2010 than the entire USA with its 330 million people.
Within three years Italy installed 1,000 MW more solar PV capacity than was installed in the USA during the past thirty years.
Italy's rapid development of solar PV has been driven by its system of feed-in tariffs, Conto Energia, that pays for every kilowatt-hour generated by solar panels whether owned by homeowners, small businesses, or the Vatican.
Under Italian conditions, 3,000 MW of solar PV is capable of generating from 3 TWh per year to 4 TWh per year, equivalent to ~1% of the country's electricity consumption.
Solas Power is currently developing in excess of 30MW at present and plans to develop in excess of 100MW within the next 18 months.
The Gesore dei Servizi Energetici (GSE) added that data is still coming in for 2010 and that the total installed capacity through 2010 may reach 3,000 MW from 150,000 systems.
It isnoted that Italy has installed 711 MW of solar PV in 2009, 340 MW in 2008, and only 60 MW in 2007.
The GSE says that there are an additional 4,000 MW of solar PV from 55,000 systems in the pipeline that potentially will bring total installed capacity to 7,000 MW.
Italy's 2020 target for solar PV is 8,000 MW.
Though there are no official statistics available on solar installations in the USA, industry sources estimate that as much as 800 MW and possibly up to 900 MW of solar PV were installed in 2010.
If true, it appears that Italy with 60 million inhabitants installed three times more solar PV in 2010 than the entire USA with its 330 million people.
Within three years Italy installed 1,000 MW more solar PV capacity than was installed in the USA during the past thirty years.
Italy's rapid development of solar PV has been driven by its system of feed-in tariffs, Conto Energia, that pays for every kilowatt-hour generated by solar panels whether owned by homeowners, small businesses, or the Vatican.
Under Italian conditions, 3,000 MW of solar PV is capable of generating from 3 TWh per year to 4 TWh per year, equivalent to ~1% of the country's electricity consumption.
Solas Power is currently developing in excess of 30MW at present and plans to develop in excess of 100MW within the next 18 months.
Tuesday, February 1, 2011
SOLAR MODULE SALES PRICE of $1 per Watt - no longer theory
Solar module sales price of $1 per Watt no longer theory
Edwin Coot of Solar Plaza has stated that In 2010, the objective is to reach a selling price for solar modules of $1 per Watt,” says Lynn Sha, Vice President of Chinese manufacturer QS Solar. In other words, it will become possible in 2011 to produce solar energy cheaper than the cost of electricity from the grid (“grid parity”), and this is without subsidies.
By Edwin Koot, Solarplaza
Revolutionary price level will mark start of solar revolution
This revolutionary price level could be sufficient to create sustainable growth in the solar energy market (PV) even without the availability of any government incentives. “The solar industry has always claimed that its goal was to attain this level of $1 per Watt. Reaching this benchmark will be the turning point from which markets will emerge and grow without any government aid. It is the start of the solar future,” says Edwin Koot, CEO of SolarPlaza, the global, independent solar energy platform.
Module prices are currently under pressure. Last year’s enormous growth of the solar industry and market by more than 100% was caused by a generous feed-in tariff in Spain. Many new companies started production of solar modules. This year, support in Spain has been decreased and capped. “This could not have come at a more dramatic moment. The simultaneous loss of Spain as a major market, the inevitable industry oversupply, and the financial crisis have pushed down module prices since Q3 last year,” says Koot. “Good for customers, challenging for the industry.”
QS Solar started production of its amorphous silicon thin-film modules last year. “We will bring down the sales price to our goal of $0.75/Wp through the continuous expansion of our production capacity and process optimization.” The company currently has 3 production lines with an installed capacity of 95 MegaWatts, and it plans to increase another 4 lines by 2009, which will lead to a total capacity of 235 MW by next year.
The $1 per Watt level is already sufficient to achieve grid parity in many markets. A lower level might not even be needed to serve an infinite global market potential for photovoltaic solar energy.
Lynn Sha and CEOs from the world's leading PV companies (such as Q-Cells, Suntech Power, Applied Materials, and Akeena Solar) will be discussing the above topics at "The Solar Future" conference organized by SolarPlaza on May 26th in Munich.
About SolarPlaza
SolarPlaza, based in Rotterdam, Netherlands, Solarplaza.com is the independent global platform for knowledge, trade and events for the photovoltaic solar energy (PV) industry.
Edwin Coot of Solar Plaza has stated that In 2010, the objective is to reach a selling price for solar modules of $1 per Watt,” says Lynn Sha, Vice President of Chinese manufacturer QS Solar. In other words, it will become possible in 2011 to produce solar energy cheaper than the cost of electricity from the grid (“grid parity”), and this is without subsidies.
By Edwin Koot, Solarplaza
Revolutionary price level will mark start of solar revolution
This revolutionary price level could be sufficient to create sustainable growth in the solar energy market (PV) even without the availability of any government incentives. “The solar industry has always claimed that its goal was to attain this level of $1 per Watt. Reaching this benchmark will be the turning point from which markets will emerge and grow without any government aid. It is the start of the solar future,” says Edwin Koot, CEO of SolarPlaza, the global, independent solar energy platform.
Module prices are currently under pressure. Last year’s enormous growth of the solar industry and market by more than 100% was caused by a generous feed-in tariff in Spain. Many new companies started production of solar modules. This year, support in Spain has been decreased and capped. “This could not have come at a more dramatic moment. The simultaneous loss of Spain as a major market, the inevitable industry oversupply, and the financial crisis have pushed down module prices since Q3 last year,” says Koot. “Good for customers, challenging for the industry.”
QS Solar started production of its amorphous silicon thin-film modules last year. “We will bring down the sales price to our goal of $0.75/Wp through the continuous expansion of our production capacity and process optimization.” The company currently has 3 production lines with an installed capacity of 95 MegaWatts, and it plans to increase another 4 lines by 2009, which will lead to a total capacity of 235 MW by next year.
The $1 per Watt level is already sufficient to achieve grid parity in many markets. A lower level might not even be needed to serve an infinite global market potential for photovoltaic solar energy.
Lynn Sha and CEOs from the world's leading PV companies (such as Q-Cells, Suntech Power, Applied Materials, and Akeena Solar) will be discussing the above topics at "The Solar Future" conference organized by SolarPlaza on May 26th in Munich.
About SolarPlaza
SolarPlaza, based in Rotterdam, Netherlands, Solarplaza.com is the independent global platform for knowledge, trade and events for the photovoltaic solar energy (PV) industry.
EEG compromise: PV-funding to be tailored to installed capacity
Solas Power has learned that a heated debate was had in Berlin between branch representatives and members of the German government on the adjustment of solar incentives, a step which can indeed be seen as an earlier than planned reduction. Future feed-in-tariffs (FIT) are to be adjusted in accordance with annual installed capacity. Possible cutbacks are being brought forward to July 1. Market experts see the danger of an artificial stimulation of the market and warn against a misinterpretation of the possible pull-forward effects.
The German solar industry association (BSW-Solar) has agreed to a new compromise on PV funding with the German Federal Ministry for the Environment. The resolution sees further reductions to FIT’s in accordance with the amount of solar electricity installed annually. The expected installed capacity for the year 2011 will be based on the figures for new installations in the period from March to May. By multiplying the result by a factor of four, the Federal Net Agency should then come to a projection of the estimated installed capacity for the year 2011.
Should the calculated PV market capacity be more than 3, 500 MW, further reductions of 3 percent are to be introduced mid-year on July 1. The resolution reached between legislators and BSW-Solar has determined a decline of 6 percent should projected capacity be over 4,500 MW, annually installed capacity of over 5,500 MW would incur cuts of a further 9 percent, more than 6,500 MW by 12 percent and an installed capacity to the same amount as last year, over 7,500 MW, will be subject to a 15 percent reduction. As the planning of open-space plants requires more time, their degression will not come into effect until September 1, 2011.
Funding is, as previously planned, to be cut by a further 9 percent at the turn of the year, 2012. Furthermore, an audit carried out by the Federal Net Agency will verify that the estimations made in spring 2011 were accurate. According to the announcement, subsequent corrections will be made should this be of necessity.
Right Direction – Questionable Impact
Following this announcement, the adjustments presented by Norbert Röttgen, Minister for the Environment and Günter Cramer, president of BSW-Solar are to be sent to parliament for deliberation. A final decision is expected in February. As the country will soon be in the throws of state elections, experts assume that there will not be a lengthy bargaining process on percentage points, as was seen in the year before last.
„The modification of incentives in line with market conditions along with a regular review of tariffs is generally a step in the right direction and is supported by the industry” assessed Markus A.W. Hoehner, CEO of the market research and consulting house EuPD Research. Generally speaking, the fact that tariffs are to be aligned with the figures for installation should also be greeted. However, as to what extent a reduction in FIT’s can contribute to a pacifying of the markets is open to doubt. “The announcement, itself, of an early adjustment on July 1 equates to a simulation of the market,” says the expert and warns against potential pull-forward effects.
Hoehner, a market observer with over a decade of expertise in international markets of renewable energies points out: “The German PV market is still overheated, the reoccurring discussion on amendments to incentives fuels this situation further.” Germany currently finds itself in a dilemma. Without further adjustments the market is threatened by excessive growth, a point which speaks for the measures suggested. Yet a “run” in the first half of the year is likely to overcompensate for the slowdown effects of said adjustments.
„The review of the EEG in 2012 will play a decisive role in the future of photovoltaic in Germany“, believes Markus A.W. Hoehner. “Legislators, industry representatives and stakeholders now face the challenge of developing a concept that encompasses all sources of renewable energy. A clear message on the future of the German renewable energy industry should also be sent to international markets in order to strengthen investment security”. Hoehner sees the tone in which this discussion has taken place as positive. In comparison to last year, there is a greater willingness to enter talks and a clearer course of action can be recognized. Although the current debate may not be crucial to the long-term development of the industry, it certainly shows the direction to be taken. It is imperative that a destabilization of the markets, as seen recently in France, Spain or Czech Republic, is avoided.
The German solar industry association (BSW-Solar) has agreed to a new compromise on PV funding with the German Federal Ministry for the Environment. The resolution sees further reductions to FIT’s in accordance with the amount of solar electricity installed annually. The expected installed capacity for the year 2011 will be based on the figures for new installations in the period from March to May. By multiplying the result by a factor of four, the Federal Net Agency should then come to a projection of the estimated installed capacity for the year 2011.
Should the calculated PV market capacity be more than 3, 500 MW, further reductions of 3 percent are to be introduced mid-year on July 1. The resolution reached between legislators and BSW-Solar has determined a decline of 6 percent should projected capacity be over 4,500 MW, annually installed capacity of over 5,500 MW would incur cuts of a further 9 percent, more than 6,500 MW by 12 percent and an installed capacity to the same amount as last year, over 7,500 MW, will be subject to a 15 percent reduction. As the planning of open-space plants requires more time, their degression will not come into effect until September 1, 2011.
Funding is, as previously planned, to be cut by a further 9 percent at the turn of the year, 2012. Furthermore, an audit carried out by the Federal Net Agency will verify that the estimations made in spring 2011 were accurate. According to the announcement, subsequent corrections will be made should this be of necessity.
Right Direction – Questionable Impact
Following this announcement, the adjustments presented by Norbert Röttgen, Minister for the Environment and Günter Cramer, president of BSW-Solar are to be sent to parliament for deliberation. A final decision is expected in February. As the country will soon be in the throws of state elections, experts assume that there will not be a lengthy bargaining process on percentage points, as was seen in the year before last.
„The modification of incentives in line with market conditions along with a regular review of tariffs is generally a step in the right direction and is supported by the industry” assessed Markus A.W. Hoehner, CEO of the market research and consulting house EuPD Research. Generally speaking, the fact that tariffs are to be aligned with the figures for installation should also be greeted. However, as to what extent a reduction in FIT’s can contribute to a pacifying of the markets is open to doubt. “The announcement, itself, of an early adjustment on July 1 equates to a simulation of the market,” says the expert and warns against potential pull-forward effects.
Hoehner, a market observer with over a decade of expertise in international markets of renewable energies points out: “The German PV market is still overheated, the reoccurring discussion on amendments to incentives fuels this situation further.” Germany currently finds itself in a dilemma. Without further adjustments the market is threatened by excessive growth, a point which speaks for the measures suggested. Yet a “run” in the first half of the year is likely to overcompensate for the slowdown effects of said adjustments.
„The review of the EEG in 2012 will play a decisive role in the future of photovoltaic in Germany“, believes Markus A.W. Hoehner. “Legislators, industry representatives and stakeholders now face the challenge of developing a concept that encompasses all sources of renewable energy. A clear message on the future of the German renewable energy industry should also be sent to international markets in order to strengthen investment security”. Hoehner sees the tone in which this discussion has taken place as positive. In comparison to last year, there is a greater willingness to enter talks and a clearer course of action can be recognized. Although the current debate may not be crucial to the long-term development of the industry, it certainly shows the direction to be taken. It is imperative that a destabilization of the markets, as seen recently in France, Spain or Czech Republic, is avoided.
Thursday, January 27, 2011
Investors may walk after Spains Solar Cut
Solas Power has noted that the Spanish Governent has again placed their financial future in jeopardy by cutting Solar FIT subsidies. In an article in the Financial Times recently it detailed the Spanish position. This again demonstrates Solas Power's choice of Germany and Italy and why we have always stayed away from the Spanish solar market.
For a full account of the article see the linkbelow "...pre-agreed “trade-in tariffs” for the country’s solar-photovoltaic energy producers by 30 per cent, or €3bn...years. Although many other countries have cut subsidies for new solar energy developments, Spain is the first to do so for existing... "
http://www.ft.com/cms/s/0/a2982e50-1a95-11e0-b100-00144feab49a.html
Italian PV systems growth is accelerating above forecasts
A recent announcement from Italy's GSE, revealing that cumulative applications for PV systems reached 7 GW by the end of 2010, appears to confirm IMS Research's earlier prediction that global installations reached 17.5 GW last year, several GW higher than most forecasts; though it also suggests the market researcher’s estimate of 3.5 GW for Italy may have been conservative. However, these numbers from GSE may not reveal the whole truth as they also include partially completed PV systems.
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IMS Research’s previously released ‘mid-case’ estimates for Italy placed installations at a minimum of 3.5 GW in 2010. Subsequent checks with suppliers and integrators on the Italian market now make the market analyst’s believe installations may in fact reach its ‘upper-case’ estimates of 4.4 GW, based on the announcement from the GSE.
The market research firm’s predictions for global installation reaching 17.5 GW in 2010 is somewhat higher than most analysts, banks, and major suppliers estimated; however, the discrepancy had been attributed to Italy; where many others had expected around 1-2 GW to have been installed versus IMS Research’s 3.5 GW. Following IMS Research’s multiple checks on the supply chain and downstream indicated the company has correctly identified that the Italian market had grown much more than most anticipated.
Although the GSE has revealed that cumulative installations reached 7 GW at the end of 2010, implying new installations of some 5.8 GW in the year, it is not totally clear how many of these applications are for completed systems or even for systems that have not even been started. IMS Research’s subsequent analysis of the industry has found that lack of module and inverter availability in Italy would make 5.8 GW impossible and information from suppliers active in Italy has found that many developers have simply applied for grid-connection on partly constructed projects (that may not even have modules installed) in order to benefit from the higher tariff. Based on this latest information, IMS Research believes 3.5-4.2 GW of fully installed PV capacity was added in Italy in 2010.
PV Research Director, Ash Sharma commented on the outlook for the Italian market in 2011: “These massive numbers from GSE will undoubtedly shock the industry and will have serious repercussions for 2011. PV capacity growth in Italy is now well ahead of the Government’s intended roadmap and may now lead to an early intervention to curb growth in this over-heating market. This may then lead to the unwanted consequence of a further boom in demand as developers seek to complete projects in time, as they did in Germany in early 2010”.
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IMS Research’s previously released ‘mid-case’ estimates for Italy placed installations at a minimum of 3.5 GW in 2010. Subsequent checks with suppliers and integrators on the Italian market now make the market analyst’s believe installations may in fact reach its ‘upper-case’ estimates of 4.4 GW, based on the announcement from the GSE.
The market research firm’s predictions for global installation reaching 17.5 GW in 2010 is somewhat higher than most analysts, banks, and major suppliers estimated; however, the discrepancy had been attributed to Italy; where many others had expected around 1-2 GW to have been installed versus IMS Research’s 3.5 GW. Following IMS Research’s multiple checks on the supply chain and downstream indicated the company has correctly identified that the Italian market had grown much more than most anticipated.
Although the GSE has revealed that cumulative installations reached 7 GW at the end of 2010, implying new installations of some 5.8 GW in the year, it is not totally clear how many of these applications are for completed systems or even for systems that have not even been started. IMS Research’s subsequent analysis of the industry has found that lack of module and inverter availability in Italy would make 5.8 GW impossible and information from suppliers active in Italy has found that many developers have simply applied for grid-connection on partly constructed projects (that may not even have modules installed) in order to benefit from the higher tariff. Based on this latest information, IMS Research believes 3.5-4.2 GW of fully installed PV capacity was added in Italy in 2010.
PV Research Director, Ash Sharma commented on the outlook for the Italian market in 2011: “These massive numbers from GSE will undoubtedly shock the industry and will have serious repercussions for 2011. PV capacity growth in Italy is now well ahead of the Government’s intended roadmap and may now lead to an early intervention to curb growth in this over-heating market. This may then lead to the unwanted consequence of a further boom in demand as developers seek to complete projects in time, as they did in Germany in early 2010”.
Solas Power Outlook
Solas Power has seen that thanks largely to hefty government support, Germany's solar market has become the largest in the world. Germany has installed half the world's solar power every year since 2007, adding 8.8 gigawatts in 2010 alone. The trend is expected to continue in 2011, with German installations providing nearly half the world's 20 new gigawatts, according to data provided by research and analysis firm iSuppli Corp. and confirmed by other analysts.
But things could get shaky in 2012. Revisions to the country's Renewable Energy Sources Act are due in mid-2011. If the powers that be decide to cut "feed-in" tariffs—which encourage homeowners to add their unused alternative energy to the grid—it will put the brakes on Germany's solar surge.
New photovoltaic output is projected to continue growing globally over the next five years, as other key markets offset the relative decline in Germany. Leading the pack will be Italy and the United States. The U.S. market alone will rise almost tenfold, from less than half a gigawatt in 2009 to more than 4 GW in 2014, according to iSuppli. Japan will lead a fivefold increase in Asia. The European Photovoltaic Industry Association also foresees fresh demand from markets such as Canada, China, Greece, India, and the United Kingdom. According to Solarbuzz's 2010 industry report, "even in the slowest growth scenario, the global market will be 2.5 times its current size by 2014."
Solar Update, FIT, Italy,
Photovoltaic market to see sunny 2011
Global photovoltaic (PV) solar instillations in 2011 will rise by 39.3% on the strength of Italian and US demand, with growth during the year limited only by reductions in government incentives in certain European countries, according to Solas Power.
It has been recently reported that growth in the PV market in 2011 will cool significantly from the 120.5% increase it saw in 2010, but noted that worldwide installations of renewable solar energy systems this year still will increase at a healthy rate, reaching 22.2 GW, up from 16 GW in 2010.
Germany will continue to be the world's largest PV market this year with an estimated 9.4 GW worth of installations. Italy will be second, Solas Power said, noting that it represents an accelerating market that promises one of the world's highest internal rates of return. Indeed, Solas Power said it expects solar installations in Italy this year will double, growing a full 100% to 3.9GW, up from 1.95GW in 2010, compared to Germany's 19.8% expansion.
The United States is expected to come in third, projected to see 2.1GW worth of PV installations this year. However, commentators cautioned that with federal incentives less likely to be renewed in the near term following a shift to a more conservative US Congress, power now will reside more with individual states to carry out initiatives.
Solas Power woud also warn that the German market might see a further reduction in feed-in tariffs (FIT) in addition to the scheduled annual cut intended to bolster the solar industry. Should the country's FIT be cut by mid-year, PV installations in 2011 might end up at the 7GW level, not the more optimistic forecast of 9.4GW without the FIT rollback, the company said.
Solas Power further reported that the PV markets in Spain, France, and the Czech Republic are not expected to expand in 2011, given the serious measures under way to trim the solar investor business in those countries.
Brightened by the German, Italian, and US markets, photovoltaic solar instillations are expected to rise in 2011, but rollbacks in other countries add clouds to Solas Power's positive outlook.
Global photovoltaic (PV) solar instillations in 2011 will rise by 39.3% on the strength of Italian and US demand, with growth during the year limited only by reductions in government incentives in certain European countries, according to Solas Power.
It has been recently reported that growth in the PV market in 2011 will cool significantly from the 120.5% increase it saw in 2010, but noted that worldwide installations of renewable solar energy systems this year still will increase at a healthy rate, reaching 22.2 GW, up from 16 GW in 2010.
Germany will continue to be the world's largest PV market this year with an estimated 9.4 GW worth of installations. Italy will be second, Solas Power said, noting that it represents an accelerating market that promises one of the world's highest internal rates of return. Indeed, Solas Power said it expects solar installations in Italy this year will double, growing a full 100% to 3.9GW, up from 1.95GW in 2010, compared to Germany's 19.8% expansion.
The United States is expected to come in third, projected to see 2.1GW worth of PV installations this year. However, commentators cautioned that with federal incentives less likely to be renewed in the near term following a shift to a more conservative US Congress, power now will reside more with individual states to carry out initiatives.
Solas Power woud also warn that the German market might see a further reduction in feed-in tariffs (FIT) in addition to the scheduled annual cut intended to bolster the solar industry. Should the country's FIT be cut by mid-year, PV installations in 2011 might end up at the 7GW level, not the more optimistic forecast of 9.4GW without the FIT rollback, the company said.
Solas Power further reported that the PV markets in Spain, France, and the Czech Republic are not expected to expand in 2011, given the serious measures under way to trim the solar investor business in those countries.
German Solar "Gold Rush"; Act now to capitalise on this Opportunity
German Solar "Gold Rush" now on, Invest now.
Solas Power has noted that Germany has mooted that the should cap solar power subsidies, cutting payments for new plants once added capacity exceeds 1 gigawatts nationally in any one year, a panel of experts that advisesChancellor Angela Merkel said.
The Berlin-based panel’s findings, released in a 680-page report today, call on Merkel to steadily reduce aid annually as well as apply a cap on subsidizing “overcapacity.” A jump in capacity is pushing up German power prices and squeezing out investments in other renewable energy sources, the panel said.
“A drastic throttling of solar subsidies in coming years is a must,” the panel said. The subsidies are pushing up power prices at a rate that is “endangering the acceptance” of renewable energy, they said. The government forecasts an added 9.5 gigawatts of solar capacity this year, almost 10-fold growth over what the panel said is acceptable.
Merkel’s government is steadily paring solar aid rates to curb the cost to consumers who pay for subsidies in their power bills.
Solar-panel prices fell about 50 percent in the last two years, spurring a boom in new installations on roof-tops and fields and led to a glut on the German market. The government has so far shied from implementing a cap, which solar power federations claim would dry up panel sales.
The findings of the panel will shore up support among lawmakers in Merkel’s Christian Democrats in parliament who want inclusion of a cap on solar subsidies in a revamp of the renewal energy legislation law this year.
The panel’s recommendation of a 1-gigawatt cap “confirms the policy position” of the Christian Democrats, their economic spokesman Joachim Pfeiffer, said in an interview. “We have to look at solar subsidies as well as a cap in the course of amending the renewable energy law,” Pfeiffer said.
Solas Power believes that now is the time to act if investors are to take advantage of the German FIT system and that the window for opportunity is fast closing.
The Berlin-based panel’s findings, released in a 680-page report today, call on Merkel to steadily reduce aid annually as well as apply a cap on subsidizing “overcapacity.” A jump in capacity is pushing up German power prices and squeezing out investments in other renewable energy sources, the panel said.
“A drastic throttling of solar subsidies in coming years is a must,” the panel said. The subsidies are pushing up power prices at a rate that is “endangering the acceptance” of renewable energy, they said. The government forecasts an added 9.5 gigawatts of solar capacity this year, almost 10-fold growth over what the panel said is acceptable.
Merkel’s government is steadily paring solar aid rates to curb the cost to consumers who pay for subsidies in their power bills.
Solar-panel prices fell about 50 percent in the last two years, spurring a boom in new installations on roof-tops and fields and led to a glut on the German market. The government has so far shied from implementing a cap, which solar power federations claim would dry up panel sales.
The findings of the panel will shore up support among lawmakers in Merkel’s Christian Democrats in parliament who want inclusion of a cap on solar subsidies in a revamp of the renewal energy legislation law this year.
The panel’s recommendation of a 1-gigawatt cap “confirms the policy position” of the Christian Democrats, their economic spokesman Joachim Pfeiffer, said in an interview. “We have to look at solar subsidies as well as a cap in the course of amending the renewable energy law,” Pfeiffer said.
Solas Power believes that now is the time to act if investors are to take advantage of the German FIT system and that the window for opportunity is fast closing.
SRU releases report on 100% renewable energy and capping of subsidies
Solas Power has confirmed that the Advisory Committee on Environmental Issues to the German Parliament (Sachverständigenrat für Umweltfragen – SRU) today submitted its special report on ways to achieve a 100% renewable electricity supply to Federal Environment Minister Röttgen. 100% renewable electricity generation is possible by 2050. Subsidies for new PV systems should be capped.
Last May, SRU presented a report, according to which a 100% renewable, yet affordable energy supply was possible in Germany by 2050. The new 663 page expert opinion looks at 8 scenarios for 100% renewable electricity generation. It contains suggestions for an amendment of the Renewable Energy Sources Act (EEG), so as to obtain a cost-efficient renewable energy portfolio by 2050.
SRU member Prof. Dr. Karin Holm-Müller, an economist, called the EEG a success story, which was copied by other countries. Its supporting pillars, the obligation of grid operators to purchase renewable energy (Einspeisevorrang) and the fixed feed-in tariffs, should continue to apply in the future. However, there was a need to amend feed-in tariff to curb costs, Mrs Holm-Müller said. Feed-in tariffs for the rapidly growing but relatively expensive solar electricity should be reduced and capped, SRU demanded.
Solar tariffs were much too high, the report says. Despite cuts in the past, the industry was growing, and expansion forecasts for 2010 exceeded estimates. This expansion was not cost-efficient. There was still a great cost savings potential in the PV market. Not only did the high PV costs endanger consumer acceptance of the EEG system as a whole, but expenses for solar electricity also limited funds for producing renewable energy from more cost-efficient sources.
Therefore, SRU calls for a cap on new PV capacities. Once the annual cap is reached, funding is suspended until next year.
SRU’s recommendations follow shortly after the Federal Ministry for the Environment (BMU) and the solar industry association BSW Solar jointly presented a proposal of solar feed-in tariffs cuts of up to 15% on 1 July and 1 September 2011. The proposal does not contain a hard cap on solar expansion, which has been strictly opposed by the industry association BSW Solar. The magazine Spiegel therefore said the SRU proposal challenged Minister Röttgen. Thomas Bareiß, energy spokesman of the Christian Democratic Party in the Bundestag, a fellow-party member of Minister Röttgen, has repeatedly called a cap the ultima ratio. In October last year, he told Handelsblatt he favoured a cap of 2,000 MWp.
While the SRU report stresses that it was up to the government where exactly it wanted to set the cap, Financial Times Deutschland said SRU member Prof. Olav Hohmeyer spoke out in favour of a 1,000 MWp cap in an article to be published by the newspaper Die Zeit on Thursday. The economist, who lectures at the university of Flensburg, said he believed that PV would only play a “miniscule role” in the renewable energy supply of the future.
SRU does not consider the extension of the operation times of the German nuclear power stations necessary. Furthermore, it does not consider the construction of new coal-fired power plants using CCS technology necessary.
The report also focuses on ways to accelerate the necessary national and international grid expansion, as well as efforts to link the national transformation process with the European energy and climate policy.
SRU also suggests to accelerate grid expansion by drawing up a national plan for transmission networks until 2030 (Bundesfachplan Stromübertragungsnetz 2030). Besides, the committee recommends to render investments in networks more attractive and to hold tender procedures for important power lines. Also, the great storage potential that exists in Norway with its hydro power plants, should be made accessible, SRU says. To this end the German government should strive for a close cooperation with Norway, SRU recommends.
SRU believes that it is of great importance that the national transitition process towards a renewable energy supply is supplemented by a European climate and energy policy, in particular an expansion of the European transmission networks and a “European Renewable Energy Roadmap until 2030″.
Last May, SRU presented a report, according to which a 100% renewable, yet affordable energy supply was possible in Germany by 2050. The new 663 page expert opinion looks at 8 scenarios for 100% renewable electricity generation. It contains suggestions for an amendment of the Renewable Energy Sources Act (EEG), so as to obtain a cost-efficient renewable energy portfolio by 2050.
SRU member Prof. Dr. Karin Holm-Müller, an economist, called the EEG a success story, which was copied by other countries. Its supporting pillars, the obligation of grid operators to purchase renewable energy (Einspeisevorrang) and the fixed feed-in tariffs, should continue to apply in the future. However, there was a need to amend feed-in tariff to curb costs, Mrs Holm-Müller said. Feed-in tariffs for the rapidly growing but relatively expensive solar electricity should be reduced and capped, SRU demanded.
Solar tariffs were much too high, the report says. Despite cuts in the past, the industry was growing, and expansion forecasts for 2010 exceeded estimates. This expansion was not cost-efficient. There was still a great cost savings potential in the PV market. Not only did the high PV costs endanger consumer acceptance of the EEG system as a whole, but expenses for solar electricity also limited funds for producing renewable energy from more cost-efficient sources.
Therefore, SRU calls for a cap on new PV capacities. Once the annual cap is reached, funding is suspended until next year.
SRU’s recommendations follow shortly after the Federal Ministry for the Environment (BMU) and the solar industry association BSW Solar jointly presented a proposal of solar feed-in tariffs cuts of up to 15% on 1 July and 1 September 2011. The proposal does not contain a hard cap on solar expansion, which has been strictly opposed by the industry association BSW Solar. The magazine Spiegel therefore said the SRU proposal challenged Minister Röttgen. Thomas Bareiß, energy spokesman of the Christian Democratic Party in the Bundestag, a fellow-party member of Minister Röttgen, has repeatedly called a cap the ultima ratio. In October last year, he told Handelsblatt he favoured a cap of 2,000 MWp.
While the SRU report stresses that it was up to the government where exactly it wanted to set the cap, Financial Times Deutschland said SRU member Prof. Olav Hohmeyer spoke out in favour of a 1,000 MWp cap in an article to be published by the newspaper Die Zeit on Thursday. The economist, who lectures at the university of Flensburg, said he believed that PV would only play a “miniscule role” in the renewable energy supply of the future.
SRU does not consider the extension of the operation times of the German nuclear power stations necessary. Furthermore, it does not consider the construction of new coal-fired power plants using CCS technology necessary.
The report also focuses on ways to accelerate the necessary national and international grid expansion, as well as efforts to link the national transformation process with the European energy and climate policy.
SRU also suggests to accelerate grid expansion by drawing up a national plan for transmission networks until 2030 (Bundesfachplan Stromübertragungsnetz 2030). Besides, the committee recommends to render investments in networks more attractive and to hold tender procedures for important power lines. Also, the great storage potential that exists in Norway with its hydro power plants, should be made accessible, SRU says. To this end the German government should strive for a close cooperation with Norway, SRU recommends.
SRU believes that it is of great importance that the national transitition process towards a renewable energy supply is supplemented by a European climate and energy policy, in particular an expansion of the European transmission networks and a “European Renewable Energy Roadmap until 2030″.
Discussion About Mid-Year Solar Feed-in Tariff Cuts Gathers Momentum
Solas Power News has learned that with massive solar expansion despite regular cuts of feed-in tariffs and rising electricity prices, the debate about further cuts is gathering momentum. However, information about an agreement between the Federal Government and the solar industry is still limited.
According to the news agency Reuters, the ministries involved and the solar industry agreed to bring forward the solar feed-in cuts due at the beginning of next year to July of this year. Cuts could be as high as 12%, depending on the expansion.
Referring to information from dpa, the internet site Verivox, a provider of electricity price comparisons, confirms that additional mid-year cuts of up to 12% are being discussed, but says a spokesperson of Environment Minister Norbert Röttgen (CDU) had pointed out that the details are still to be decided.
A number of papers reported that the solar industry association BSW Solar continues to be strictly opposed to a cap on solar expansion. Thomas Bareiß, energy spokesman of the Christian Democratic Party in the Bundestag, a fellow-party member of Minister Röttgen, has repeatedly called a cap the ultima ratio. At the beginning of the week, Minister Röttgen stressed in the newspaper Weser Kurier that solar feed-in tariffs should pave the way for a market introduction of solar power, but were not intended to become long-term subsidies.
According to the news agency Reuters, the ministries involved and the solar industry agreed to bring forward the solar feed-in cuts due at the beginning of next year to July of this year. Cuts could be as high as 12%, depending on the expansion.
Referring to information from dpa, the internet site Verivox, a provider of electricity price comparisons, confirms that additional mid-year cuts of up to 12% are being discussed, but says a spokesperson of Environment Minister Norbert Röttgen (CDU) had pointed out that the details are still to be decided.
A number of papers reported that the solar industry association BSW Solar continues to be strictly opposed to a cap on solar expansion. Thomas Bareiß, energy spokesman of the Christian Democratic Party in the Bundestag, a fellow-party member of Minister Röttgen, has repeatedly called a cap the ultima ratio. At the beginning of the week, Minister Röttgen stressed in the newspaper Weser Kurier that solar feed-in tariffs should pave the way for a market introduction of solar power, but were not intended to become long-term subsidies.
GERMAN FIT TO BE REDUCED FROM 1st July 2011
SOLAS POWER has learned that the Federal Ministry for the Environment (BMU) and the solar industry association BSW Solar jointly presented a proposal to bring forward parts of the regular 2012 solar feed-in tariff cuts to 1 July and 1 September 2011. The July/September reductions up to 15% shall depend on PV capacity installed in March, April and May 2011. The move is due to the continued massive solar expansion and the increasing costs for consumers in the recent past, which triggered criticism from various parties, including consumer protection agencies.
The proposal contains the following main elements:
•The proposed 1 July/1 September 2011 reduction shall bring forward parts of the 2012 degression currently contained in the Renewable Energy Sources Act (EEG);
•For freestanding PV systems, the degression shall be effective 1 September, for other systems it shall be 1 July 2011;
•The July/September reduction will cover the quantity dependent part of the 2012 degression, i.e. the part of the 2012 reduction that depends on the additionally installed capacity in 2011 ( additional 3% above 3,500/4,500/5,500/6,500 MWp);
•For capacity growth exceeding 7,500 MWp, an additional 3% degression shall be introduced. This brings the maximum mid-year reduction to 15% (i.e. 5 times 3%);
•The 9% reduction for 2012 that applies regardless of additionally installed capacity remains unchanged and shall remain to become effective 1 January 2012;
•The 2011 mid-year degression rates will be based on a forecast for which the new capacities of March to May 2011 will be extrapolated for the whole year by the Federal Network Agency;
•For installations starting operation after 1 January 2012, the degression rate shall depend on the actual market growth in 2011 (and not the extrapolated figures used for the July/September 2011 reduction).
Based on this proposal, a hard cap on solar expansion, which had been strictly opposed by the industry association BSW Solar, is off the table for the time being. ”We welcome the decision, which expresses the political commitment with respect to the expansion of photovoltaics, the German production facilities, and the 130,000 jobs created by the industry”, Günther Cramer, President of BSW Solar said.
After having heavily opposed last year’s feed-in tariff cuts, the solar sector itself is in favour of the cuts now proposed, as Björn Klusmann, managing director of the German Renewable Energy Federation (BEE) told the newspaper Frankfurter Allgemeine. Without a further reduction of solar feed-in tariffs, the whole renewables sector might have come under pressure because of the rising electricity prices.
According to BSW Solar, more than 230,000 solar power plants with a total capacity of 7 to 8 GW have been connected to the grid in Germany in 2010. Solar energy meanwhile accounts for about 2% of total final energy consumption. However, almost half of the estimated EUR 13 billion in reallocation charges paid pursuant to the EEG are attributable to solar energy, the newspaper Frankfurter Allgemeine Zeitung writes. With the so-called EEG reallocation charge, consumers have to pay the difference between market prices for renewable energy and the feed-in tariffs pursuant to the EEG.
BMU also proposes to contain the costs of the “Green Power Privilege” (Grünstromprivileg). This relates to an exemption for utilities that supply electricity deriving at least for 50% from renewable energy sources. We will cover this proposal in a separate blog post.
The proposal for the new 2011 feed-in tariff reduction will be presented to the Bundestag for decision, and may be amended during the parliamentary process. Technically, the proposal is likely to be added to an existing proposal to amend the EEG in the context of the European renewable energies directive (Directive 2009/28/EC). This would allow an expedited parliamentary procedure to introduce the 2011 reductions.
The proposal contains the following main elements:
•The proposed 1 July/1 September 2011 reduction shall bring forward parts of the 2012 degression currently contained in the Renewable Energy Sources Act (EEG);
•For freestanding PV systems, the degression shall be effective 1 September, for other systems it shall be 1 July 2011;
•The July/September reduction will cover the quantity dependent part of the 2012 degression, i.e. the part of the 2012 reduction that depends on the additionally installed capacity in 2011 ( additional 3% above 3,500/4,500/5,500/6,500 MWp);
•For capacity growth exceeding 7,500 MWp, an additional 3% degression shall be introduced. This brings the maximum mid-year reduction to 15% (i.e. 5 times 3%);
•The 9% reduction for 2012 that applies regardless of additionally installed capacity remains unchanged and shall remain to become effective 1 January 2012;
•The 2011 mid-year degression rates will be based on a forecast for which the new capacities of March to May 2011 will be extrapolated for the whole year by the Federal Network Agency;
•For installations starting operation after 1 January 2012, the degression rate shall depend on the actual market growth in 2011 (and not the extrapolated figures used for the July/September 2011 reduction).
Based on this proposal, a hard cap on solar expansion, which had been strictly opposed by the industry association BSW Solar, is off the table for the time being. ”We welcome the decision, which expresses the political commitment with respect to the expansion of photovoltaics, the German production facilities, and the 130,000 jobs created by the industry”, Günther Cramer, President of BSW Solar said.
After having heavily opposed last year’s feed-in tariff cuts, the solar sector itself is in favour of the cuts now proposed, as Björn Klusmann, managing director of the German Renewable Energy Federation (BEE) told the newspaper Frankfurter Allgemeine. Without a further reduction of solar feed-in tariffs, the whole renewables sector might have come under pressure because of the rising electricity prices.
According to BSW Solar, more than 230,000 solar power plants with a total capacity of 7 to 8 GW have been connected to the grid in Germany in 2010. Solar energy meanwhile accounts for about 2% of total final energy consumption. However, almost half of the estimated EUR 13 billion in reallocation charges paid pursuant to the EEG are attributable to solar energy, the newspaper Frankfurter Allgemeine Zeitung writes. With the so-called EEG reallocation charge, consumers have to pay the difference between market prices for renewable energy and the feed-in tariffs pursuant to the EEG.
BMU also proposes to contain the costs of the “Green Power Privilege” (Grünstromprivileg). This relates to an exemption for utilities that supply electricity deriving at least for 50% from renewable energy sources. We will cover this proposal in a separate blog post.
The proposal for the new 2011 feed-in tariff reduction will be presented to the Bundestag for decision, and may be amended during the parliamentary process. Technically, the proposal is likely to be added to an existing proposal to amend the EEG in the context of the European renewable energies directive (Directive 2009/28/EC). This would allow an expedited parliamentary procedure to introduce the 2011 reductions.
Proposal to Change exemption in EEG for utilities
Solas Power has learned that the Federal Ministry for the Environment (BMU) today also published a proposal to change the so-called Green Power Privilege (Grünstrom Privileg), an exemption in the Renewable Energy Sources Act (EEG) for utilities that mainly supply renewable energy.
Section 37 para. 1 sentence 2 EEG stipulates that utilities shall be exempted from the so-called EEG reallocation charge if they supply electricity originating for at least 50% from renewable energy sources. The exemption applies to the total electricity supply of the utility, hence also to conventional electricity. With the EEG reallocation charge, consumers have to pay the difference between market prices for renewable energy and the feed-in tariffs pursuant to the EEG.
BMU proposes to retain the exemption but modify it as follows so as to reduce costs for consumers:
•The EEG reallocation charge exemption will be reduced to 2.0 Cent/kWh. The current normal reallocation charge is 3.53 Cent/kWh;
•The amendment shall become effective on 1 July 2011.
The amendment is essential to avoid a further increase of the reallocation charge, BMU argues. In view of the increase from 2.047 Cent/kwh in 2010 to 3,53 Cent/kWh in 2011, it is to be expected that more and more utilities try to benefit from the exemption. This would lead to a higher EEG reallocation charge for the others, as costs would have to be split among fewer consumers. The proposal of a reduced EEG reallocation charge of 2.0 Cent/kWh i roughly equivalent to the charge in 2010. An potential further amendment shall be examined as part of the EEG progress report due on 31 December 2011 (Section 65 EEG).
Section 37 para. 1 sentence 2 EEG stipulates that utilities shall be exempted from the so-called EEG reallocation charge if they supply electricity originating for at least 50% from renewable energy sources. The exemption applies to the total electricity supply of the utility, hence also to conventional electricity. With the EEG reallocation charge, consumers have to pay the difference between market prices for renewable energy and the feed-in tariffs pursuant to the EEG.
BMU proposes to retain the exemption but modify it as follows so as to reduce costs for consumers:
•The EEG reallocation charge exemption will be reduced to 2.0 Cent/kWh. The current normal reallocation charge is 3.53 Cent/kWh;
•The amendment shall become effective on 1 July 2011.
The amendment is essential to avoid a further increase of the reallocation charge, BMU argues. In view of the increase from 2.047 Cent/kwh in 2010 to 3,53 Cent/kWh in 2011, it is to be expected that more and more utilities try to benefit from the exemption. This would lead to a higher EEG reallocation charge for the others, as costs would have to be split among fewer consumers. The proposal of a reduced EEG reallocation charge of 2.0 Cent/kWh i roughly equivalent to the charge in 2010. An potential further amendment shall be examined as part of the EEG progress report due on 31 December 2011 (Section 65 EEG).
Wednesday, January 26, 2011
GERMANY BACK IN THE FAST LANE
Solas Power has seen from recent reports that German, French and Belgian business sentiment picked up by an unexpectedly high degree at the start of the year, suggesting that Germany’s broadening economic recovery is sustaining manufacturing in other parts of the eurozone.
Germany’s Ifo institute said its business climate index hit 110.3 points in January, up from 109.8 the previous month and its highest level since it started tracking sentiment 20 years ago.
The French statistics agency Insee said its manufacturing sentiment index jumped 6 points to 108, the biggest monthly rise since mid-1999, while Belgium’s central bank said its business confidence tally rose 1.4 points to 4.5. With foreign orders filling Belgian companies’ order books, François Cabau at Barclays Capital said the country’s economic momentum “has a lot to do with the pace of its trading partners – most importantly Germany”.
Economists see Europe’s largest economy growing about 2.5 per cent this year, against forecast French growth of only 1.5 per cent and a Belgian rate of 1.8 per cent as public spending cuts and oil price rises bite.
But some said the uptick in sentiment could be a sign that German demand is sustaining French companies in particular more than expected. The two countries are each other’s biggest export markets.
“German and French companies are powering ahead in Europe, reinforcing the upswing of each other,” said Andreas Rees at UniCredit in Munich. He welcomed the revival “of the good old Franco-German economic axis”.
This would cut Germany’s reliance on exports to Asia, he added. With fewer jobless, stronger private consumption and business investing once more, “one should not exclude” the possibility of German growth nudging 3 per cent.
Carsten Brzeski, economist at ING bank in Brussels, said the Ifo data were “a strong signal” that the German economy would “continue to power ahead” after its stellar growth of 3.6 per cent in 2010.
Last year’s export-led recovery drove unemployment down, spurring private consumption for the first time in years. Now economists are expecting domestic demand to receive a further boost from corporate investment.
“The conditions to initiate a virtuous circle [of growth] have hardly been better in 15 years,” Mr Brzeski said in a note to clients.
The German government on Wednesday forecast that the economy would grow 2.3 per cent this year – up half a point from its autumn forecast – with the average jobless rate falling to 7 per cent from 7.7 per cent in 2010.
Aided by more private spending and corporate investment, domestic consumption would raise GDP by 2 per cent, contributing three-quarters of economic growth, up on a two-thirds share last year.
Germany’s Ifo institute said its business climate index hit 110.3 points in January, up from 109.8 the previous month and its highest level since it started tracking sentiment 20 years ago.
The French statistics agency Insee said its manufacturing sentiment index jumped 6 points to 108, the biggest monthly rise since mid-1999, while Belgium’s central bank said its business confidence tally rose 1.4 points to 4.5. With foreign orders filling Belgian companies’ order books, François Cabau at Barclays Capital said the country’s economic momentum “has a lot to do with the pace of its trading partners – most importantly Germany”.
Economists see Europe’s largest economy growing about 2.5 per cent this year, against forecast French growth of only 1.5 per cent and a Belgian rate of 1.8 per cent as public spending cuts and oil price rises bite.
But some said the uptick in sentiment could be a sign that German demand is sustaining French companies in particular more than expected. The two countries are each other’s biggest export markets.
“German and French companies are powering ahead in Europe, reinforcing the upswing of each other,” said Andreas Rees at UniCredit in Munich. He welcomed the revival “of the good old Franco-German economic axis”.
This would cut Germany’s reliance on exports to Asia, he added. With fewer jobless, stronger private consumption and business investing once more, “one should not exclude” the possibility of German growth nudging 3 per cent.
Carsten Brzeski, economist at ING bank in Brussels, said the Ifo data were “a strong signal” that the German economy would “continue to power ahead” after its stellar growth of 3.6 per cent in 2010.
Last year’s export-led recovery drove unemployment down, spurring private consumption for the first time in years. Now economists are expecting domestic demand to receive a further boost from corporate investment.
“The conditions to initiate a virtuous circle [of growth] have hardly been better in 15 years,” Mr Brzeski said in a note to clients.
The German government on Wednesday forecast that the economy would grow 2.3 per cent this year – up half a point from its autumn forecast – with the average jobless rate falling to 7 per cent from 7.7 per cent in 2010.
Aided by more private spending and corporate investment, domestic consumption would raise GDP by 2 per cent, contributing three-quarters of economic growth, up on a two-thirds share last year.
German FIT Analysis
Figure 1. End-user electricity consumption (gray columns, left Y-axis), and physically measured cumulative feed-in of renewable electricity with EEG incentives (green columns, right Y-axis). 2000 has been measured only from April 1st (BMU spreadsheet). Germany's end-user electricity consumption more or less stabilized in 2005-2008. 2009 has been a global crisis year, with a considerable drop in electricity consumption (Germany: minus 5,6% as compared to 2008). Renewable electricity production under EEG feed-in conditions - almost all fed directly into the net - grew continuously, up till 74,9 TWh in that "crisis" year, with strong to massive (PV) growth of new installations promising more full-year renewable electricity production in coming years. Average growth of EEG production in this period has been 7,2 TWh/year. Year-on-year growth percentage was, on average, 26%.
Tuesday, January 25, 2011
German Government announces FIT reduction for 2011
Solas Power News - The German Government has reached an agreement with the country’s solar industry to tailor solar photovoltaic (PV) feed-in tariffs to installed capacity.
Monday, January 24, 2011
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Solas Power Investments is about understanding energy market trends and adapting and adjusting to future energy market demands by integrating professionals with a very unique skill set and experience together in order to realise and unlock growth potential in investments.
Solas Power Investments engages in best engineering practices we harness, manage and distribute renewable energy solutions, generate wealth and provide the power to sustain and build a cleaner earth.
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