QUICK NEWS, January 3: A CHANCE TO BUY A SOLAR COMPANY CHEAP; EFFICIENCY IN 2011; WHAT EV BUYERS THINK

A CHANCE TO BUY A SOLAR COMPANY CHEAP
First Solar Never So Cheap in Takeover Boon for Energy: Real M&A; For acquirers willing to wager on the future of solar power, First Solar Inc. has gotten $22 billion cheaper.
Tara Lachapelle, Christopher Martin and Richard Weiss (w/Rachel Layne, Sarah Rabil, and Daniel Hauck), December 25, 2011 (Bloomberg News)

"First Solar has tumbled 76 percent this year, the biggest drop in the Standard & Poor’s 500 Inde, as…[it] shifted its focus to large power plants. Once worth $25 billion, First Solar was valued [at the end of 2011] as low as $2.64 billion…The world’s largest maker of thin-film solar panels may now attract takeover interest from General Electric Co. or Siemens AG on the expectation that demand will increase…during the next decade as prices become more competitive with fossil fuels and other forms of electricity…

"… First Solar’s stock…plunged 25 percent since Dec. 14 when it reduced 2011 profit and sales forecasts, projected earnings next year that missed analysts’ estimates and said it will fire about 100 employees in the second restructuring in six weeks. The company is reorganizing to focus on large utility-scale power plants instead of smaller, rooftop installations after ousting its chief executive officer in October and replacing him with Michael Ahearn, the founder and chairman…"

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"Plunging prices for solar panels have eroded profit margins across the industry as manufacturers ramped up production capacity faster than demand increased, creating a global glut of supply. The spot price of solar panels…[fell 47 percent in 2011]…First Solar uses cadmium-telluride in its thin-film panels, which require less time and energy to manufacture than the more common ones based on silicon semiconductors…

"The market for solar power surged 67 percent [in 2010] to $55 billion on new projects with a capacity of about 18,000 megawatts…New solar installations may reach 24,000 megawatts [for 2011] and hold steady at about that rate [in 2012]…[and] climb to as much as 34,700 megawatts in 2013…"


EFFICIENCY IN 2011
Energy Efficiency in 2011: Progress on Many Fronts, Treading Water on Others
Steven Nadel, December 28, 2011 (American Council for an Energy Efficient Economy)

"With 2011 drawing to a close, now is a good time to take stock of energy efficiency accomplishments over the past year...[U]tility-sector spending on energy efficiency programs is likely to be more than $6 billion for the year…[It was also a] peak year for energy efficiency spending by state and local governments using funding under the American Recovery and Reinvestment Act (ARRA—the stimulus bill passed by Congress in 2009). As a result, many homes and buildings were weatherized and millions of pieces of efficient equipment installed.

"…[In addition,] many states were active on energy efficiency policy this year. Our 2011 State Energy Efficiency Scorecard found that 35 states have either adopted building codes specified in ARRA or are on a clear path for doing so, up from 17 states in 2010...Likewise, two states (Arizona and Missouri) have improved the business case for utility investments in energy efficiency, with cases pending in four additional states (Maryland, Ohio, Rhode Island, and Washington)…"

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"At the federal level, the first-ever efficiency standards for heavy-duty trucks were finalized and new standards for passenger vehicles proposed. The truck standard will reduce truck fuel use by 6–23%, depending on truck type, and the passenger vehicle standard is projected to bring average new vehicle fuel economy to just under 50 miles per gallon by 2025. In addition, new standards were established for six categories of appliances…These standards will reduce the energy use of these products by about 10–25%...

"…EPA issued new regulations for emissions of toxic pollutants by power plants…[but 2011] was not a good year for federal energy legislation…[T]wo energy efficiency bills [with] strong bipartisan majorities…[failed to reach the floor]…And in a year-end compromise with the House of Representatives, funding restrictions were enacted on enforcement of lamp efficiency standards. Fortunately, the law is still in effect and U.S. manufacturers have indicated they will follow the law, even if it is not enforced…"


WHAT EV BUYERS THINK
Electric Vehicle Consumer Survey; Consumer Attitudes, Preferences, and Price Sensitivity for Plug-in Electric Vehicles and EV Charging Stations
December 29, 2011 (Pike Research)

"As consumer interest in fuel efficient vehicles remains high, two automakers, Chevrolet and Nissan, ended 2010 with the launch of their first highway-capable plug-in electric vehicles (PEVs) for the mass market. These vehicles...enable drivers to reduce both gasoline expenses and greenhouse gas emissions…

"…[O]ther auto manufacturers are working to electrify their lineups…Toyota plans to launch [a] PEV Prius in January 2012, and [many] other manufacturers have plans to launch plug-in electric models in the near future."

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"To assess consumer demand, preferences, and price sensitivity for PEVs and electric vehicle charging infrastructure, Pike Research conducted a web-based survey of 1,051 U.S. consumers in the fall of 2011…[B]ased on Americans’ driving and commute patterns, PEVs should be a strong fit for a large number of consumers…

"…[R]espondents indicated strong fundamental interest in PEVs, with 40% of participants stating that they would be extremely or very interested in purchasing such a vehicle, assuming the price were right. However, price sensitivity is an issue that continues to loom over the industry, as survey participants’ willingness to pay was much lower than the prices currently planned by automakers…"