QUICK NEWS, January 5: ABOUT BETTING ON SOLAR; EVER BIGGER WIND; $$$ TO TRANSCONTINENTAL WIRE HOOKUP

ABOUT BETTING ON SOLAR
Fundamentals For Solar Energy Look Great, But Companies With The Right Strategy Are Lacking
Simit Patel, December 25, 2011 (Seeking Alpha)

"…Here is a short summary…of the current situation in the solar energy market:

"...Solar ETFs have been some of the worst performing ETFs in 2011 -- which of course piques my buying interest quite a bit…[T]hese stocks could continue to go further down…[but] the underlying fundamentals have changed; concerns over peak oil and the need to transition away from fossil fuels are only growing, and players like China and Google are still viable candidates for being the "smart money" that can bring the demand to push prices higher -- demand upon which small-time players like individual investors can piggyback on…"

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"...But while solar as a sector is set to grow for years and will help the world transition away from fossil fuels, not all parts of the solar value network are the same…[T]he value network is still evolving rapidly as new technologies -- particularly those related to storage -- continue to come on to the scene…[O]ne trend that…will drive much of how the value network changes and profit opportunities are created, is the rapidly declining price of solar panels. As solar panels continue to fall in price, I suspect profit opportunities will transition to firms that specialize in installation and the development of custom solar solutions…companies that are more service-oriented and customer-relations centric rather than pure product makers."

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"And here is… why I have yet to make an investment in the solar sector. There simply isn't a company I've found that has the strategy…a stable balance sheet and competent leadership. The solar ETFs, KWT and TAN, could be viable ways of playing the entire sector, though I don't think they have the right kind of companies…in their portfolio. And so, I'm still on the sidelines when it comes to solar…"


EVER BIGGER WIND
For taller wind turbines, generating power is a breeze
Mark Jaffe, December 25, 2011 (Denver Post)

"…[T]he National Renewable Energy Laboratory in Golden had to redo its wind maps…as wind-turbine towers get taller and blades get longer…[T]he industry standard…[was 50 meters and] is now 80 meters…

"…[A]s the towers have grown from 164 feet to 262 feet, they have edged into the reaches where the winds are stronger and more sustained…At 80 meters above ground level, the wind speeds across a large portion of [Colorado’s] Eastern Plains and Front Range [have gone from 7.4 meters to 8.4 meters a second to] between 8.5 meters and 10 meters a second…[For Indiana]…80-meter towers and technology has meant the difference between not having an economical wind source and having one…"

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"…The new technology combined with the steadier winds are driving down the costs of wind generation, according to economic analyses…A California Energy Commission analysis estimated that a 0.5 meter increase in wind speed — raising the resource from "good" to "excellent" — would cut 1.2 cents off the cost of electricity from a new wind farm to 10.8 cents a kilowatt-hour…In a U.S. Energy Information Administration study, the difference between a top wind resource and a poor one is more than 3 cents a kilowatt-hour, with the best resource producing wind at 8.1 cents a kilowatt-hour.

"It isn't just that the taller towers and bigger blades capture more wind at 80 meters, it is that they can also turn more of the time…Electricity from coal and gas is cheaper because the sources can run 70 percent to 90 percent of the time — this is called the capacity factor…The capacity factor for wind farms has been around 30 percent…[Some wind project] capacity factors [are now up] to 50 percent…[and] wind power has become more marketable…"


$$$ TO TRANSCONTINENTAL WIRE HOOKUP
Tres Amigas Announces $12 Million Investment from Mitsui & Co., Ltd.; Smart Green Information Technology and Renewables to be Focus
December 27, 2011 (Business Wire)

"…[T]he U.S.-based national grid interconnection project known as the Tres Amigas SuperStation, announced…Mitsui & Co., Ltd., a global trading, IT and industrial infrastructure services company, has agreed to invest $12 million. In exchange, Mitsui will obtain an equity position and…further internationalize their…Smart Grid IT, renewable energy development and management, and CO2 emissions mitigation strategies.

"The SuperStation project represents, in essence, the world’s first high capacity 'Renewable Energy Hub,' although trading of conventional sources of electricity will be accommodated, too. This first-of-its-kind power transmission hub is designed to interconnect America’s three primary electricity grids, the Eastern (Southwest Power Pool), Western (Western Electricity Coordinating Council) and Texas (Electric Reliability Council of Texas) networks by utilizing information technology…"

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"…Coordinated via market-based dispatch through the Tres Amigas SuperStation…the new strategy will allow customers to purchase a reliable portfolio of power with the largest possible component of solar and wind power. The clean generating capacities and the needs of varying regions, including the state’s renewable portfolio standard requirements, will have more opportunities to be accommodated.

"The buildout of the $1.5 billion SuperStation is expected to occur in stages. Engineering design for Phase I is well underway, with construction scheduled to commence in 2012, and Phase I commercial operations scheduled for 2015. The initial power transfer capacity will be 750 MW between the Western and Eastern grids…[allowing] energy producers and marketers…to transfer sizable blocks of power from region to region. Energy purchasers will also have access to regions heretofore inaccessible…In addition to improving the reliability, efficiency and economics of the nation’s separate grids, the SuperStation will provide value-added services and larger market opportunities to intermittent power sources such as wind, solar, geothermal and storage…"