QUICK NEWS, January 11: CHINA – EU AIRLINES EMISSIONS WAR; BUFFETT BUYS MORE WIND; LA RENEWS ROOFTOP SUN PUSH

CHINA – EU AIRLINES EMISSIONS WAR
China airlines won't pay EU carbon tax
Alison Leung and Harry Suhartono (w/Narayanan Somasundaram, Edmund Klamann, Matt Driskill and Ian Geoghegan), January 6, 2012 (Reuters)

"China's airlines will refuse to pay any charges under the European Union's new carbon trading scheme, while other Asia Pacific carriers, already battling a weak travel market, are likely to pass on the extra cost to passengers…The EU's Emissions Trading Scheme ETS.L was launched in 2005 as one of the major pillars of the bloc's efforts to combat climate change. From January 1, all airlines using EU airports are included in the cap-and-trade scheme."

[Cai Haibo, deputy secretary-general, China Air Transport Association CATA.L:] "China will not cooperate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax…"

From a University of Minnesota/Duluth greenhouse gas inventory (click to enlarge)

"CATA represents the country's four major airlines: flag-carrier Air China Ltd (0753.HK) (601111.SS), China Southern Airlines (600029.SS) (1055.HK), China Eastern Airlines (600115.SS) (0670.HK) and Hainan Airlines (600221.SS)…Chinese airlines would consider taking legal action against the EU over the move to charge for carbon emissions on flights to and from Europe…[and will] take their time on this, mindful that U.S. airlines recently lost a legal challenge against the ETS, and given that collection of the tax from airlines will not be until March 2013…

"CATA estimates the scheme will cost Chinese airlines 800 million yuan in the first year and more than triple that by 2020…Germany's Lufthansa (LHAG.DE), the world's second-largest long-haul carrier after Dubai's Emirates, warned passengers…to brace for higher ticket prices…The EU says its ETS, which already applies to other industries, is the fairest way to cope with aviation's contribution to global warming…[T}he International Air Transport Association (IATA), has said the ETS would cost airlines 900 million euros in 2012 and the industry will not generally be able to pass this on to consumers because the market is too weak…The IATA forecast a 49 percent fall in 2012 industry-wide profit to $3.5 billion…"


BUFFETT BUYS MORE WIND
Buffett's MidAmerican Utility Buys Three Iowa Wind Energy Projects. MidAmerican Energy Holdings Co. acquired three wind farm projects in Iowa that will have a combined wind power capacity of 404.8 megawatts at completion and 176 wind turbines.
January 9, 2012 (Regulacion Eolica con Vehiculos Electricos)

"MidAmerican Energy…[will] develop new wind farm projects in Iowa. As part of its latest wind energy plans, the company has also entered into agreements to acquire three wind power projects in Iowa that will have a combined capacity of 404.8MW with 176 wind turbines…

"Des Moines-based MidAmerican Energy is announcing it will build three new wind farm plants in five Iowa counties. Ann Thelen, spokeswoman for MidAmerican, says the moves will enhance the company’s wind energy portfolio, adding more than 400 megawatts of wind power…[Through] an agreement with Clipper Windpower…[MidAmerican will] acquire about 200 megawatts of wind farm projects in Audubon and Guthrie counties and also a 101.2 megawatt wind farm in Adair County…"

The nation's 7th best wind resource (click to enlarge)

"Another agreement is with RPM Access for a 103 megawatt wind farm in Marshall and Tama counties. Combined, 176 new wind turbines will reach into the sky with the wind farm projects. There will also be expansion at the existing Rolling Hills wind farm, which covers parts of Adair, Adams and Cass counties.

"…[When the wind farm projects are complete, approximately 29% of [MidAmerican’s] total generation capacity will be powered by wind energy…{MidAmerian has] invested approximately four-billion dollars in the state of Iowa for our wind power generation…[It] will again be working with Seimens Energy to manufacture the wind turbines at its [Iowa] facility in Fort Madison…"


LA RENEWS ROOFTOP SUN PUSH
New proposal seeks to encourage solar panels on LA rooftops, parking lots
Molly Peterson, January 9, 2012 (KPCC/NPR)

"Ambitious goals Los Angeles city officials have set for solar energy remain out of reach. Changes in leadership at the L.A. Department of Water and Power have slowed renewable energy policies. So has the domestic economy. Now the DWP is floating a new proposal designed to encourage solar farms on large rooftops and parking lots…Germany started its own program to encourage solar farms on large buildings 21 years ago; in English, the German policy of buying power from large rooftops translates as ‘feed-in tariff’… California law now requires that utilities do something like that…

"DWP plans to buy solar energy generated on big buildings under long-term fixed-rate contracts. These projects would be at least five times bigger than most residential solar systems, and they’re different from home systems, where the electric meter spins forward and back…[F]eed-in tariff contracts offer more predictability as DWP tallies its energy resources. Local businesses recognize the value too…"

click to enlarge

"…[M]illions of dollars in tax revenue could juice L.A.'s coffers if large local solar projects take off…[but] this kind of system creates a new market for power. That’s tricky…

"…How much to pay for solar energy is only one the matter DWP’s cautious about…It’ll take different engineering to deliver electricity in the other direction on transmission lines…A study…found that a full 600 megawatt feed-in tariff program would create up to 18,000 jobs…"