China solar market kicking in

Jan 27 2012

James Montgomery writes at Renewable Energy World about solar photovoltaic installation records in Asia.

China has added 1.7 GW in the fourth quarter alone, and Asian markets add up to 6 GW for the whole year, which is 165% more than 2010. That’s not bad as a growth rate.

China has over 20 GW of projects in the pipeline. It has increased its capacity by a factor of 5 (500% growth) in 2011.

China may very well surpass Germany in new installations this year, which would be excellent news. It is just about time that some other important countries start catching up.

Another article by Montgomery gives estimates for 2012 and beyond which are also very interesting. It expects a doubling of world wide installations to over 50 GW by as soon as 2014 from the 25 GW installed in 2011.

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American Department of Defense renewable energy spending

Jan 27 2012

This article at Renewable Energy World discusses the plans of the American Department of Defense for renewable energy.

It claims that spending has increased to $1.2 billion by 2009 and is projected to reach over $10 billion annually by 2030. The DoD is the biggest single consumer of energy in the United States. That gives their decisions on which energy they want some influence on the market.

While $1.2 billion is not bad, last year’s investments world wide in renewable energy were $260 billion. That would leave the DoD number way below one percent of the world total market.

If they start understanding that global warming is a much greater threat to the security of the United States than any possible military attack by any other nation, they might start shifting their budgets accordingly. The DoD 2011 budget is estimated as $738.7 billion. Using half of that for countering the most important threat would instantly more than double current world investment in renewable energy.

Anyway, having the American military understand that it is cheaper and safer to get energy at the source directly from solar panels in Afghanistan than driving fuel trucks through hostile territory will be a welcome boost for the market. Every bit of help is welcome.

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European Parliament ACTA ratification

Jan 27 2012

Techdirt reports on the ACTA discussion at the European Parliament. The Member of Parliament in charge of the ratification just resigned from that post, with a strong message of protest.

I think that this kind of legislation should not be done behind closed doors in trade negotiations. The questions addressed have nothing to do with trade. If you want to discuss intellectual property, do so in your national Parliaments in the usual open process. Using the “trade” label as a loophole to work around these requirements leaves you with a Treaty with zero legitimacy.

It will be interesting to see how the ratification process in Parliament will proceed.

I recall having discussed some of the issues in the text of ACTA back in 2010. I am not convinced that there is much merit to that text, even if it were not enacted in this matter offensive to basic values of democracy.

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Prime Minister Noda message

Jan 27 2012

A message to the Davos World Economic Forum by Japanese Prime Minister Noda has been posted at the government’s website. Most of it is delivered in Japanese with English subtitles.

There is a part where he talks about energy. He mentions that the nuclear power stations are shut down after the Fukushima accident. Today’s Yomiuri Shinbun has an article on the front page where they report on Economy Minister Edano assuming that there will be zero nuclear power in Japan in summer.

Prime Minister Noda sees this as a chance to give a large boost to renewable energy and battery technology. He wants a leading role for Japan in that area.

I agree. And I like the spirit of taking a difficult situation as a challenge to find a solution.

I also would like to point some attention to the large Japanese flag seen in the video message. The red circle in the middle is a symbol for the sun.

I think that a nation that has the sun on its flag should be at the top spot in deployment of solar energy. Right now that champion place is taken by Germany, but I sure hope Japan catches up fast with the new feed-in tariff law in place.

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2012 Japanese solar feed-in tariff surcharges

Jan 25 2012

Denryoku Shimbun reports that the various Japanese utilities have published their surcharges for solar feed-in tariffs for 2012.

These are part of a scheme introduced before last year’s legislation that paid 42 yen per KWh last year for rooftop solar. The feed-in tariffs announced vary between utilities, with Hokkaido in the north the cheapest at 0.03 yen and Kyushu in the south the most expensive at 0.15 yen.

These are still very low values. Even for the most expensive area in Kyushu, that means only about 45 yen per month for the average consumer, which won’t even buy one can of coffee from a vending machine.

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Top 10 solar panel producers

Jan 25 2012

This article at “PC’s Solar Photovoltaics Blog” reports on the latest figures. I learned that this is a market with very fierce competition. The largest share anyone has is only 6%, and the top 10 add up to only 44%.

The article also gives numbers on production in quarter three of 2011. I added those up, divided by 0.44 and multiplied by four, which gives an estimate of about 35 GW in solar panel production in 2011.

Since Fraunhofer Institute just estimated only about 50 GW capacity installed at the end of 2011, it will take less than two years to double that capacity at current production rates.

I recall that about 320 GW installed capacity world wide are necessary until solar becomes the cheapest option. That will be reached in much less than a decade (in other words, extremely fast when considering the long time scales needed to plan energy policy) even if there were no further growth in the sector, which is rather unlikely considering that costs have already come down most of the way to that goal.

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Congratulations to Deutsche Bank

Jan 24 2012

They just completed installation of the largest solar photovoltaic installation in Manhattan, which is also the highest over the ground in the world.

Thanks to this Tweet by SolarFred for the link.

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EU Iran oil embargo

Jan 24 2012

The EU decision to ban imports of Iranian oil is a step in the right direction.

While I have no opinion on whether that will help stop Iranian nuclear programs or if doing so is desirable or not, it is only common sense that this kind of policy will lead to higher oil prices. Not by much, because only 18% of Iranian oil is sold to the EU in the first place.

But any bit of higher price helps.

Until the sale of oil from any source is completely banned everywhere (that might still take another couple of years), I am happy with anything standing even slightly in the way of burning the stuff.

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Anti-solar ingrates

Jan 24 2012

The usual anti-solar talking point that it is much too expensive is wrong in lots of different ways. It is also a rather irritating lack of gratefulness when coming from non-Germans.

For example, Mark Lynas yesterday tweeted the latest dumb shallow Spiegel article with exactly that talking point to his followers. Here is his Tweet:

German solar subsidies exceed 100bn euros – zero electricity for weeks (cloudy, dark), 3% overall for year: (Link to Spiegel article)

First off, I note that “3% overall” doesn’t sound like much, but the 18 TWh generated in 2011 would power the Maldives easily more than ten times over, assuming that Lynas’ estimate of 542 MWh electricity needed is correct. (I am wrong here, see update below).

Even if this Spiegel article was a fair assessment of the costs instead of a misleading propaganda piece, I don’t understand why Mark Lynas should worry about German rate payers financing the more costly part of the solar learning curve. Largely because of the German feed-in tariff, solar has seen massive price reductions over the last ten years, which have been extremely fast lately.

Someone has to pay for that. If Germany goes ahead and shoulders a lot of that burden, why should non-Germans object?

He gets the benefit of extremely reduced solar costs for his project of decarbonizing the Maldives before anyone there has to pay anything. I hear that solar is rated as “crucial” in the latest plan.

Shouldn’t the Germans deserve a big thank you for their effort, which will be vital in getting rid of fossil fuel? Hasn’t Lynas ever heard of that little global warming problem, which might be somewhat more serious than reducing German rate payers’ burden by a relatively trivial amount?

I think he has heard of that. And I think he should thank Germany for investing big in the solution instead of trying to stand in the way.

Update: Lynas kindly replies with this Tweet:

@Kf_Lenz No, most manufacturing cost reductions come from China I think. Also 18 TWh should be GWh in your blog?

18 TWh for solar in Germany 2011 is correct, though 18.52 TWh would be a more exact figure. See for example the reference in this recent post here.

But the 552 MWh for the Maldives is wrong. It must be 552 GWh. Thank you to Mark Lynas for pointing out my mistake.

While it is true that manufacturing cost reductions came from China, that country wouldn’t have a solar panel industry in the first place without the German market. See Daniel Yergin’s “The Quest” on page 580. He quotes Suntech founder Shi Zhengrong with this statement:

“I was very lucky,” he said. “In 2004 Germany created the world market.”

I think it was not only Shi who was lucky, but the whole world, which might just barely be able to harvest the vast solar resources in time to help with that global warming problem.

 

 

 

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German discussions on solar feed-in

Jan 23 2012

Spiegel has published a dumb shallow anti-solar article by one of its journalists and an interview with a leading solar feed-in opponent in the CDU (the ruling party).

The journalist is very smart. He has noticed that there is less sun in Germany’s winter.

He also trots out the old talking point of solar being much too expensive.

I am looking forward to when solar becomes the cheapest generation option in less than a decade so that this talking point favoring fossil fuel and making global climate change worse will finally be retired for good.

News flash: The feed-in tariffs were introduced for solar because it was – and is still – expensive in the first place. And much of the problems are due to the fact that they have been too successful in bringing prices down. Solar panel prices dropped by 50% last year. The reductions in feed-in tariffs had trouble to keep up with that pace, which means some happy owners of solar installations in Germany who will collect a very attractive and secure income from their investments.

And even if the horrible number of 200 Euro per year for the average consumer the Spiegel journalist predicts was true (it isn’t, since at the most only about half of that is for solar), that would still be only about 17 Euro per month and household. You want to bitch about that completely trivial cost and risk killing everyone on the planet by Venus Syndrome (runaway global warming)? Don’t count on me supporting that.

The CDU politician is also worried about cost. He wants to “protect the consumer”. News flash: By a large margin, most of the owners of solar installations are consumers. In contrast to coal and nuclear power plants, which are only operated by large utilities.

The anti-solar coalition engaged in a last ditch effort to kill solar energy and save the fossil fuel industry has some powerful members, including the Spiegel magazine and the German Minister of Economy (whose party has now support of only 2%, or about half of the market share of solar in electricity consumption). I can’t wait for the next election which will boot this guy out of office.

If they succeed, ironically, that will drive down prices for solar panels even more. Basic law of economics. Remove a large chunk of demand and you will see prices drop. With feed-in tariffs now kicking in in Japan and China, some other countries’ consumers will then share some of the burden of financing the solar learning curve.

It is very likely too late for the German anti-solar coalition to save their fossil fuel friends at the big utilities.

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