MORE NEWS, 1-27: WHEN SUN GOES BACK TO CONGRESS; THE ALGAE CONTROVERSY; BIG YEAR FOR EFFICIENCY; UTILITY, SOLAR INSTALLER IN $60 MIL DEAL

WHEN SUN GOES BACK TO CONGRESS
What Solar Should Look for in a National Energy Bill; If a climate bill fails, what national legislation can the solar market hope to see this year?
Shayle Kahn, January 25, 2010 (Greentech Media)

"Prospects for 2010 passage of national climate legislation are dimming. The disappointing outcome in Copenhagen, the prolonged health care debate, and the election of another opposing Senator have led some members of the democratic leadership to all but give up on the issue before the November midterm elections.

"…[S]ome members of the Senate are considering stripping off the energy provisions…viewed as more bipartisan, and passing them alone. There has even been some speculation that an energy bill will be absorbed into a jobs bill…[A] pure energy bill could still have a significant impact on the U.S. solar market… [T]he American Clean Energy and Security Act of 2009 (ACES), is also known as Waxman-Markey… passed through the House of Representatives…[T]he Senate Energy and Natural Resources Committee did pass a version of the bill, called the American Clean Energy Leadership Act of 2009 (ACELA). The full Senate is yet to vote on ACELA…[T]he provisions that will most directly affect the solar market…in either ACES, ACELA, or both."

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"[A] National Renewable [Electricity] Standard [ReS]…[would] require utilities to generate a percentage of their electricity from [New Energy] by a specified date…ACES sets a target of 20 percent renewable energy by 2020 with up to 5 percent through energy efficiency, reducing the effective target to 15 percent by 2020. The ACELA [RES] is weaker, requiring only 15 percent renewable energy by 2021 with up to 26.67 percent to be met through energy efficiency…State [RESs] have been most successful in promoting solar when there is specific target for solar power or distributed generation. While neither bill contains such a requirement, they both provide 3x credit multipliers for distributed generation…In order for a national [RES] to truly incentivize solar, it needs to have a larger overall target and specific requirements for solar or distributed generation.

"[A] Clean Energy Deployment Administration (CEDA)…the "Green Bank," …could have a large impact on solar project financing…[A] government-owned corporation would be arranged with the express intent of providing and catalyzing financing for [New Energy]…[S]imilar to other government-run private banks…The Green Bank would have the authority to provide financial assistance…including loans, loan guarantees, and insurance products…The key element here is capitalization…[A] Green Bank should be allocated significantly more than the $7.5 billion to $10 billion offered in ACES and ACELA. SEIA suggests a minimum of $50 billion, with authority to issue bonds for another $50 billion…[to] provide a valuable service to the solar industry."

Like net metering, many of the things on solar's legislative agenda are part of the Solar Bill of Rights. Click thru to find out more.

"Interconnection and Net Metering Provisions…are present in varying degrees at the state level and provide the backbone of every growing solar market…ACES addresses net metering for federal facilities, but not for the general public. ACELA requires national interconnection standards, but doesn't cover net metering. Ideally, a national energy bill will ultimately include both.

"The battle to pass a comprehensive climate/energy bill isn't yet lost. The New York Times editorial board just released a worthy call for President Obama to make the case for a 2010 climate bill during his State of the Union address this week. And the issue is too important to leave unresolved, even if just to ride out the midterm elections…[D]ebate over energy legislation [will] begin in earnest once the health care debate subsides…"


THE ALGAE CONTROVERSY
Algal Biomass Organization Questions Accuracy of University of Virginia Algae Life Cycle Study; ABO Believes That Reliance on Obsolete Data and Faulty Assumptions Undermines All Conclusions
January 25, 2010 (Algal Biomass Organization via Business Wire)

"The Algal Biomass Organization (ABO), the trade association for the algae industry, …challenged the conclusions of Environmental Life Cycle Comparison of Algae to Other Bioenergy Feedstocks claiming that “conventional crops have lower environmental impacts than algae in energy use, greenhouse gas emissions and water.” [ABO said the] report was based upon obsolete data and grossly outdated business models, and overlooked tremendous improvements in technology and processes across the production cycle…seriously [undermining] the credibility of the study’s conclusions…Among the many concerns of ABO…

"[1] Assumptions about algae growth systems…[abandoned] years ago…[for] a variety of more advanced cultivation systems, some of which are unrelated to the methods the authors sought to assess…[2] Assumptions about co-location…assuming the production facility is not co-located with a large CO2 emitter…resulting in a higher attribution of CO2 for algae plants. Most commercial-scale algae projects are being developed alongside major emitters…"

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"[3] Assumptions about water use…A sustainable industrial algae production model uses non-potable, non-agricultural water [and not fresh water] in the process of making liquid fuels…[4] Assumptions about nutrient use…[ignoring] the opportunity to consider the ability of algae producers to recycle nutrients…"

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"[5] Assumptions about energy use…[in] the full algae fuel cycle…[that overlooked] energy reuse through biodigester biogas combustion coupled with the carbon recycling...[and] errantly [gave] a higher emissions burden…[6] Assumptions about purchase of CO2 and fertilizer…[which is] so prohibitively expensive it would never happen in reality…[yet drive] the negative impacts in the study.

"Lastly, the authors make it very clear that their approach is stochastic …a randomly determined sequence of observations…[and] should not be given the same weight as studies and analyses based on facts and other measurable data…In general, the Algal Biomass Organization firmly believes life cycle assessments [LCAs] are critical to the development of the industry, given the need to accurately assess and quantify the environmental impact of algae-derived energy…[but questions the methodology of this one]…"


BIG YEAR FOR EFFICIENCY
Energy efficiency to shine in 2010
Dana Hall, January 24, 2010 (San Jose Mercury News)

"Solar and wind power may get the headlines and attention, but green-tech experts say 2010 will be dominated by energy efficiency, the mundane but critical process of cutting the amount of gas and electricity that homes and offices use.

"Energy Secretary Steven Chu regularly describes himself as an 'energy-efficiency nut.' Sixteen states, including California and New York, have passed legislation enabling homeowners to finance energy-efficiency upgrades through their property taxes…President Barack Obama even declared insulation 'sexy' at a Home Depot…Venture capital investment in energy efficiency hit a record in 2009: at least 115 deals worth nearly $1 billion…up 39 percent from 2008. Meanwhile, solar, which had 84 deals worth about $1.2 billion, was down 64 percent from 2008…"

Complete efficiency = zero emissions = enormous savings that will pay for New Energy. (click to enlarge)

"Energy efficiency generally refers to a wide range of technologies designed to cut energy use such as improved lighting, greener building materials and sophisticated software that monitors power consumption…[I]t's increasingly seen as an effective way to create desperately needed jobs, save struggling consumers money, wean America from its dependence on foreign oil and reduce carbon emissions — all at the same time."

Efficiency is the first choice because it will pay for New Energy. (click to enlarge)

"Home energy use accounts for 21 percent of the nation's carbon footprint — roughly twice the carbon emissions of passenger cars…There are 100 million homes in America, and energy-saving measures like insulation, caulking, and heating and cooling system upgrades can reduce household energy consumption by 10 percent to 40 percent…And saving energy saves money: Californians pay an average of [only] $84 a month for electricity…"

[Kevin Surace, CEO, Serious Materials:] "I remember standing with a piece of drywall at the Cleantech Forum in 2006…Every other company was solar, wind and biofuel. People were like: What are you doing at our conference? …All the cleantech conferences are efficiency, efficiency, efficiency [now]…When you really break it down, every dollar spent on energy efficiency pays back the investment four or five times. It saves people money and creates jobs. And it has bipartisan support."


UTILITY, SOLAR INSTALLER IN $60 MIL DEAL
PG&E Corporation and SolarCity Announce $60 Million in Financing to Install Solar Power for Business
25 January 2010 (PR-USA-Net)

"Pacific Venture Capital, LLC, a subsidiary of PG&E Corporation and SolarCity Corp., a national leader in solar power system design, financing, installation, monitoring and related services…announced $60 million in tax equity financing for solar installations for U.S. homes and businesses…funded by PG&E Corporation shareholders…

"[It] is expected to allow SolarCity to install more than 1,000 solar systems for U.S. homeowners and businesses via the company's SolarLease® and Power Purchase Agreement financing options. SolarCity's financing options allow homeowners and businesses to adopt solar power with no upfront investment and to save money from day one on energy costs."

click thru for more on the SolarCity program

"Under the agreement, in return for providing the upfront investment needed for the new systems, Pacific Venture Capital will receive lease revenues from SolarCity customers, along with the benefits of federal investment tax credits and local rebates for the solar energy projects. The transaction represents the first such tax equity financing investment by a utility holding company and the first such collaboration between a utility holding company and a solar power provider…

"The solar systems funded under the agreement are expected to be installed in 2010, predominantly in California, with some in Arizona and Colorado. SolarCity already has more than 1,700 solar customers in Pacific Gas and Electric Company's service area and more than 5,000 solar customers overall…"