QUICK NEWS, 1-6: FIRST SOLAR IN CHINA MEGA-PROJECT; HUGE WIND MERGER IN OFFING; IRELAND GETS 1/3 POWER FROM WIND; CALIF RENEWABLES UP, RATES DOWN

FIRST SOLAR IN CHINA MEGA-PROJECT
First Solar Moves Closer to Delayed China Project
Ucilla Wang, January 5, 2011 (Earth2Tech via Reuters)

"…First Solar’s big plan to eventually build 2 GW of solar power plants in China’s Inner Mongolia has moved ahead. The company signed a memorandum of understanding with China Guangdong Nuclear Solar Energy Development Co…to develop the first phase, 30-MW project.

"First Solar will supply its cadmium-telluride solar panels (and advice) to China Guangdong for the engineering and construction – as well as the operation and maintenance – of the power plant…The company is working on finalizing details of the project and hoping to get approval to start construction in 2011…Completion will then be set for 2012."

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"…First Solar had hoped to start construction by June 2010…[after signing] an MOU for the 2-GW master plan in September 2009…Government approval of key steps of the project [caused the delay]…The Chinese government was supposed to approve solar electricity pricing for the project by the end of 2009, but didn’t. Without guaranteed solar electric rates, or feed-in tariffs, First Solar didn’t want to move ahead…[T]he pricing issue [remains un resolved]…First Solar and China Guangdong will submit a business plan to the government in order to ask for feed-in tariffs…

"…First Solar had hoped to complete phase 2 and 3 of the project, totaling 970 MW, by 2014. It wanted to finish the last phase of 1 GW by 2019…[The project is] the first large-scale solar collaboration between China and the United States…"

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"China is a potentially large solar market, but many non-Chinese companies believe they are at a disadvantage if they want to sell their equipment to, or develop projects in, China because the Chinese government is more likely to support goods and services from domestic companies, such as Suntech Power, Trina Solar and Yingli Green Energy…[making] First Solar’s 2-gigawatt plan all the more remarkable. But getting it done, of course, hasn’t happened…

"First Solar is eager to diversify its market reach beyond Europe. Germany has been its largest market, but the country’s solar incentives are declining. First Solar CEO Rob Gillette has talked about exploring markets in India, Africa and the Middle East. Last December, the company said it had signed a deal to sell 15 megawatts of solar panels to ACME Tele Power in India…[It] is developing many projects in North America…Plutonic Power Corp. and GE Energy Financial Services will buy three, yet-to-be-built power plants totaling 50 megawatts…in Ontario, Canada…"


HUGE WIND MERGER IN OFFING
Suzlon's Tanti in stake sale talks; A deal with Gamesa seen valuing firm at $3 bn
January 5, 2011 (Business Standard)

"India’s largest wind-turbine maker Suzlon Energy is in talks with Gamesa Corporacion Tecnologica of Spain for a strategic alliance…Suzlon [may sell] a majority stake in the company…Merrill Lynch is believed to be one of the advisors to the transaction…[E]ven though talks between the two have been going on for a while, closure may still take some time…Contours of the deal are still being worked out.

"Gamesa and Suzlon are two of the world’s top wind-turbine makers. While Gamesa had sales of [$3.4 billion (Rs 19,298 crore) last year, the Suzlon Group had revenues of Rs 20,620 crore ($4.3 billion) in 2009-10. Gamesa has an installed capacity of 18,000 mega watt (Mw) in over 20 countries, while the Suzlon Group has an over 15,000 Mw installed capacity in over 25 countries…[I]t is not entirely clear whether the stake sale would remain restricted only to Suzlon or involve European subsidiary REpower, which is one of the largest wind-turbine makers in Europe."

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"Conceived in 1995 with just 20 people by the textile entrepreneur Tulsi Tanti, Suzlon is now a leading wind power company, employing over 16,000 people. Globally, Suzlon and REpower together are ranked as the third largest manufacturer of wind turbines…Suzlon on Tuesday closed at Rs 55.65 a share,…It has a current market cap of Rs 9,890.95 crore ($ 2.2 billion)…[A] deal may be struck at Rs 77 a share…valuing Suzlon’s market cap at Rs 13,685.5 crore ($ 3.04 billion)…

"Suzlon, a darling of private equity and foreign institutional investors, has fallen on bad times in recent years. Two years ago, Suzlon suspended large-scale capital expansion plans due to sluggish conditions in the wind-energy market as a result of the global economic slowdown…Faced with liquidity problems, Suzlon also had to refinance loans of close to Rs 10,000 crore and sold a 35 per cent stake in subsidiary Hansen Transmission for around $370 million (Rs 2,500 crore) to reduce its debt…Its industrial gearbox division was also sold to Sumitomo Heavy Industries for Rs 465 crore ($75 million)."

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"Gamesa, one of the largest wind-turbine manufacturers in the world with a manufacturing capacity of 4,400 Mw a year, is planning to make India one of its main manufacturing bases and markets for wind turbines in the Asia-Pacific region. It plans to close down some facilities in Spain to reduce capacity from about 2,200 Mw to 1,000 Mw in and move production to China and India…[It] has more than 30 production facilities in Spain, the US and Asia…[and] is planning five new plants in India between 2010 and 2012 to attain 800 Mw capacity by the end of that period…

"Gamesa launched its operation in India last February with subsidiary Gamesa Wind Turbines…[that] will manufacture Gamesa G58-850 kW turbines and have an initial annual production capacity of 200 Mw, which could be raised to 500 Mw. Within three months of starting operations here, Gamesa secured orders in excess of 60 Mw in India and neighbouring countries."


IRELAND GETS 1/3 POWER FROM WIND
Ireland Generated Record Wind Power on Dec. 26, Government Says
Alex Morales, January 5, 2011 (Bloomberg News)

"Irish wind turbines generated power at a record level of 1,228 megawatts on Dec. 26, [almost one-third of the nation’s power use]…[according to] electricity grid operator EirGrid.

"Peak production that was enough for almost 800,000 homes was reached at 4:25 p.m. The average generation for the day was about 1,000 megawatts, enough for 650,000 homes..."

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[Energy Minister Eamon Ryan:]“This is proof that even on colder days, wind power can contribute greatly to Ireland’s electricity system…Government policy is to facilitate investment in wind energy, to deliver a low- carbon, sustainable energy future for Ireland.”

"The record generation followed about 400 million euros ($526 million) of private investment in the Irish wind energy industry in 2010…[According to the European Wind Energy Association,] Ireland is on track to meet 36 percent of electricity demand from wind turbines in 2020, the highest proportion in the 27-nation European Union."


CALIF RENEWABLES UP, RATES DOWN
PG&E Rates to Decrease Slightly on January 1; Next Rate Change Expected in March
December 30, 2010 (Pacific Gas & Electric)

"Pacific Gas and Electric Company (PG&E)…average system-wide bundled electric rate will decrease 0.8% on January 1…This rate change will be followed by a slight forecasted increase in March 2011 that is approximately 2.3% less than what the rate was in March 2010. Actual bill impacts in March will vary depending on usage."

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[Tom Bottorff, Senior Vice President of Regulatory Relations, PG&E:] "We know our customers care more than ever about their electricity bills during these tough economic times so we are focused on keeping rates down…Smart energy purchasing strategies coupled with lower gas prices have allowed us to pass on savings to the millions of Californians who rely on us for their energy needs."

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"The January rate change reflects higher operating costs, offset by lower energy purchasing costs. The March rate change will take into account additional transmission-related costs and is expected to include the utility's 2011-2013 General Rate Case (GRC) revenue requirements. PG&E in September filed a settlement with consumer groups on its GRC revenue request and expects a California Public Utilities Commission decision in early 2011."