QUICK NEWS, March 20: WORLD PV SOLAR UP 40%; U.S. WIND GETS READY FOR NO GOVT SUPPORT; A UTILITY THAT WANTS NEW ENERGY

WORLD PV SOLAR UP 40%
World Solar Photovoltaic Market Grew to 27.4 Gigawatts in 2011, Up 40% Y/Y; Incentive Cutbacks in Europe, Falling Prices, Create Major Corporate Challenges in 2012
March 19, 2012 (Solarbuzz)

"Worldwide solar photovoltaic (PV) market installations reached a record high of 27.4 gigawatts (GW) in 2011, up 40% Y/Y, according to the annual [NPD Solarbuzz] PV market report…

"Overall market growth in 2011 was boosted by strong second half demand ahead of further deep cuts in solar incentives. This followed a period of over-production in the first half that triggered the sustained price decline through the PV chain that came to characterize 2011. The dominance of Chinese manufacturers in crystalline silicon wafers, cells and modules grew, the share of thin film declined, and demand in Asian markets grew rapidly."

click to enlarge

"The PV industry generated $93 billion in global revenues in 2011, up 12% Y/Y…[T]he top five PV markets were Germany, Italy, China, the United States, and France—74% of global demand in 2011. China soared 470% Y/Y, rising from to third place from seventh in 2010…European countries accounted for 18.7 GW, or 68% of world demand in 2011, down from 82% in 2010…Germany, Italy and France collectively accounted for 82% of the European market.

"Worldwide solar cell production reached 29.5 GW in 2011, up from 23.0 GW a year earlier, with thin film production accounting for 11% of total production. Production from China and Taiwan accounted for 74% of global cell production, up from 63% in the prior year…Over the next five years, factory-gate module prices are projected to drop between 43% and 53% from 2011 levels…"


U.S. WIND GETS READY FOR NO GOVT SUPPORT
How The Wind Energy Supply Chain Can Prepare For A Possible Post-PTC Era
15 March 2012 (North American Windpower)

"…Barbara Sands, renewable energy expert at PA Consulting Group, [said] if federal renewable energy incentives such as the PTC expire, more than $20 billion (based on approximate capital costs of $2,000/kW in 2012 for installed wind capacity) will be shifted from the federal level to the state level - in other words, from all U.S. taxpayers to just customers in states with renewable portfolio standards.

"The resulting rise in energy costs will test state and, by extension, regulator support for renewables, and participants across the sector will face a number of complex challenges…Wind developers, equipment manufacturers and utilities will all need to face this issue, but proactive planning can…[keep them] profitable…"

Can planning prevent it from happening again? (click to enlarge)

"Wind energy developers, for example, will need to focus on sites and projects that provide the best economics…[U]tilities will need to find a way to recover the high cost of renewables…[P]ressure will be placed on regulators to allow them to recover the higher cost of renewable energy in future rates, thereby passing these costs on to customers…[E]quipment manufacturers…will come under pressure from wind energy developers and wind farm operators to both improve their products’ performance and reduce the cost of their equipment.

"…[A]ssuming the current projected level of natural-gas prices of about $4.50/MMBtu, the capital cost of wind projects would need to be at least 35% lower for wind generation to be competitive with new natural-gas-fired generation, PA Consulting says…[M]anufacturers will need to decrease fixed capital costs and improve efficiency to become cost-competitive."


A UTILITY THAT WANTS NEW ENERGY
Utility Puts Priority On Renewable Energy Projects
Angela Benewal, 16 March 2012 (Renew Grid)

"…[ Puget Sound Energy (PSE) has found that many of its customers have] turned wind into an economic opportunity…PSE is no stranger to developing wind farms…

"…[The 343 megawatt] Lower Snake River wind project is the utility's third project. PSE also developed the Wild Horse Wind and Solar facility, a 149 turbine, 273 MW project in Kittitas County that also features 2,723 photovoltaic solar panels…The utility's 87-turbine, 156 MW Hopkins Ridge wind project is located in Columbia County near the Lower Snake project. In addition to wind and solar, PSE obtains about one-third of its power from hydro…"

Washington state could get more than half its electricity from wind (click to enlarge)

"While it is not out of the ordinary for a utility to develop renewable energy projects, PSE has been in the game since the mid-2000s. Fulfilling Washington state's 15% by 2020 renewable portfolio standard (RPS) is the reason the utility chose to develop. When deciding whether to purchase the renewable energy or build a project, the determining factor came down to economics…

"When the Lower Snake River project begins producing power, PSE will have more than 9% renewable energy. This figure does not include hydro because that resource does not count under the state's RPS…PSE has leases for quite a bit of land in the vicinity of the Lower Snake River project and plans to build a second phase in the future…"