QUICK NEWS, 5-4: GOOGLE BUYS WIND; THE GREEN POWER STUDY 2010; FACTCHECK – BRAZIL, ETHANOL & OIL; SOLAR STOCKS TURNING UPWARD

GOOGLE BUYS WIND
Google Invests $39 Million In Wind Farms
Miguel Helft, May 3, 2010 (NY Times)

"…[Internet giant Google] invested $38.8 million in two North Dakota wind farms built by NextEra Energy Resources, a subsidiary of FPL Group, a $16 billion electricity company based in Florida. Google’s investments represent a minority interest in a $190 million round of financing for the projects.

"The two wind farms have already been built, and Google said that its investment will provide funds for NextEra to invest in additional renewable energy projects. Google’s investment…will earn a return based on the tax credits awarded by the government for renewable energy projects…[T]he energy from the wind farms will not be used to power Google’s data centers, which consume vast amounts of electricity."

Wind is increasingly important. (click to enlarge)

"…Google’s primary goal [is] to earn a return from its investment but…[it] also hopes to accelerate the deployment of renewable energy."

It'a about time SOMEBODY developed these assets. (click to enlarge)

"Conscious of its high electricity bills and its impact on the environment, Google has long had an interest in green energy. Its projects in the area run the gamut from a large solar power installation on its campus, to the promotion of plug-in hybrids, investments in clean energy startups like eSolar and AltaRock, a controversial project to tap geothermal energy in Northern California. Google has also worked on making its data centers more efficient, promoted changes in energy policy and developed technologies to to let people monitor their home energy use.

"But…[this is Google’s first investment in] the generation of renewable energy…[T]he NextEra wind farms…generate 169.5 megawatts, or enough electricity to power more than 55,000 homes…"


THE GREEN POWER STUDY 2010
NREL Highlights Utility Green Power Leaders; Annual assessment shows more consumers making clean power choices
May 3, 2010 (National Renewable Energy Laboratory)

"The U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL)…released its annual assessment of leading utility green power programs. Under these voluntary programs, consumers can choose to help support additional electricity production from renewable resources such as wind and solar.

"According to the NREL analysis, more than 850 utilities across the United States now offer green power programs. Utility green power sales in 2009 exceeded 6 billion kilowatt-hours (kWh), and they represent more than 5 percent of total electricity sales for some of the most popular programs. Wind energy represents approximately two-thirds of electricity generated for green energy programs nationwide…"

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"Using information provided by utilities, [NREL's Strategic Energy Analysis Center (SEAC)] developed “Top 10” rankings of utility programs for 2009…[for] total sales of renewable energy to program participants, total number of customer participants, the percentage of customer participation, green power sales as a percentage of total utility retail electricity sales, and the lowest price premium charged for a green power program using new renewable resources.

"Ranked by renewable energy sales (kWh/year), Austin Energy in Austin, Texas sold the largest amount of renewable energy in the nation through its voluntary green power program…[B]y the percentage of customer participation, the top [utility is] City of Palo Alto Utilities (Calif.)… More than 650,000 customers are participating in utility programs nationwide."

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"Utility green pricing programs are one segment of a larger green power marketing industry that counts Fortune 500 companies, government agencies and colleges and universities among its customers, and helps support more than 6,000 MW of renewable electricity generation capacity.

"NREL analysts attribute the success of many programs to continued efforts by utilities and their partners to raise awareness of the availability of green power options. In addition, the rate premium that customers pay for green power continues to drop. The average net price premium for utility green power products has decreased from 3.48¢/kWh in 2000 to 1.75¢/kWh in 2009…"


FACTCHECK – BRAZIL, ETHANOL & OIL
"Brazil got off oil in the last 30 years."; Bill Maher and George Will spar over oil and Brazil. We play the ref.
May 3, 2010 (Politifact)

"A potential ecological disaster in the Gulf of Mexico led to a spirited debate on U.S. energy policy on ABC News' This Week.

"Liberal commentator Bill Maher lamented the fact that both major political parties, including President Barack Obama, have supported offshore oil drilling…instead of being more aggressive about renewable energy…[and asserted that] ‘…Brazil got off oil in the last 30 years; we certainly could have…’"

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"Conservative columnist George Will challenged Maher about Brazil. ‘Could you just explain to me in what sense has Brazil got off oil?’

"…[W]e dug into the research on Brazil and energy…Brazil does produce a lot of sugarcane ethanol, as Maher said…[It] is one of the largest producers of ethanol in the world…[and] more than half of all cars in Brazil are flexible-fuel capable, which means they can run on 100 percent ethanol or an ethanol-gasoline mixture…But even though Brazil aggressively uses biofuels, and invests quite a bit in hydroelectric power, it still produces and consumes a lot of oil…"

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"In 2008, Brazil ranked No. 7 on the list of the world's countries that consume the most oil, using about 2.5 million barrels per day. In first place was the United States at 19.5 million barrels per day, followed by China, Japan, India, Russia, and Germany…Brazil also produces a lot of oil through drilling near its coasts…[and is predicted to] become a net exporter of oil this year…

"Getting back to our factcheck, Maher was likely remembering Brazil's aggresive efforts to promote ethanol, and certainly Brazil has outpaced the United States in getting flexible fuel vehicles on the road. But…Brazil still consumes a great deal of oil. It's also embarking on more offshore drilling in some of the deepest waters for exploration. Brazil is hardly ‘off oil.’ So we rate Maher's statement False."


SOLAR STOCKS TURNING UPWARD
Soak up the sun…It's time to take another look at solar stocks
Michael Kahn, May 3, 2010 (MarketWatch)

"…From a zenith near $30 in May 2008, the Claymore/MAC Global Solar Energy Index exchange-traded fund (TAN) collapsed to a low under five bucks 10 months later…Talk about the sun setting…Solar stocks have been moving quietly sideways for many months, and in technical parlance they have been building a base from which to rise again.

"A base is simply a chart pattern, possibly a regular trading range, which allows bulls and bears to reassess their positions…Nobody cares about solar stocks anymore…And that is just the time savvy investors start to take another look."

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"The solar ETF has been in such a base between $8.75 and $11.50. At the top of the range, investors consider it to be expensive and selling pressures increase. What is more interesting is that investors stepped up their buying at the bottom of the range even though the news was mostly negative. In other words, investors are not dissuaded by bad news and that suggests an underlying demand for shares.

"Using a long-term investment perspective, technicals suggest that nibbling on these stocks is a good plan for the patient…JA Solar Holdings (JASO), a China-based manufacturer of solar cells, has actually been in a bona fide rising trend since March 2009…[and] has outperformed the Standard & Poor's 500 Index…In the short term, the stock does look a bit shaky but should it pull back to its rising trend line…"

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"First Solar Inc. (FSLR) is another candidate for patient investors…[with] a chart formation called a triangle…Rallies and declines within the pattern become smaller…[suggesting] that interest in the sector and the stock in particular has declined. Again, that is when savvy investors should start to look at it once again…With its floor near 100, the stock has plenty of short-term risk…[but] on several occasions over the past 19 months, investors found 100 to be a cheap price. If and when the stock gets there, the risk/reward ratio will once again be on investors' sides.

"To be sure, the solar energy group carries a higher degree of risk and volatility than the broader stock market. But if you believe that rising energy prices due to a recovering economy, if not other factors, are on the horizon then alternatives make sense. And now that the charts show that the sector has gone through a sizable period of healing it makes sense to put solar energy stocks back on your radar screen."