QUICK NEWS, April 26: SOLAR SHAKEOUT; WIND GETTING BIGGER; BIG COMPUTING GOES GREEN

SOLAR SHAKEOUT Surviving The Shakeout: With PV Stocks Plunging, Where Are We Headed?

Jessica Lillian, 24 April 2012 (Solar Industry)

“…[T]hin-film PV manufacturer First Solar…[anounced it] would cut 2,000 jobs and shut down its manufacturing operations in Germany …[and] the company's stock hit an all-time low as analysts questioned its core business model in an era of low polysilicon prices…[M]ost analysis indicates that First Solar's woes are representative of a broader corporate-finance trend in the solar sector. While many companies will survive and emerge as more competitive players, the worst may be yet to come for others.

“During the first quarter of 2012 (Q1'12)…[the] Lincoln International [solar index] declined by 4%, underperforming the S&P 500 index…Two of the four solar segments studied - cells and modules, and vertically integrated firms - posted quarter-over-quarter declines. Stock performance for manufacturers of cells and modules slid the most, decreasing 6.5% quarter-over-quarter, while the index for vertically integrated manufacturers declined 0.8%...Only the wafers/ingots segment and the engineering, procurement and construction (EPC) contractor and developer segment measured increases…[But] relatively few EPC providers and project developers factor into solar stock trends…”

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“…Lincoln International's index ranks ReneSola, China Sunergy, Solar Power Inc. and Akeena Solar Inc. as the best performers in their respective industry segments. LDK Solar, Solon, SolarWorld and Premier Power fared the worst in Q1'12…Lincoln International's solar index declined less in Q1'12 than in the three previous quarters. The worst drop came in Q3'11, when the index plunged more than 50%...[and Lincoln International predicted that companies] closer to the actual solar projects and to the end purchasers of solar projects should weather the current difficulties better than the manufacturers…

“…[C]ould First Solar be one of those survivors? The company's project-development plays have expanded in recent years as it has sought to diversify its market activities…At the same time, however, First Solar - like many other PV manufacturers that have bulked up their project-development pipelines in recent years - focuses on utility-scale projects…[and] this segment comes with its own set of vulnerabilities, and less exposure may enable a solar firm to be better positioned…”

WIND GETTING BIGGER Goldwind developing 10MW wind turbine

James Quilter, 25 April 2012 (Windpower Monthly)

“Goldwind is working on a 10MW turbine according to its annual report for 2011…Technically, this makes Goldwind the second manufacturer to be working on a 10MW turbine. Last year Sinovel also said it was developing one although it is believed this was largely based on AMSC's SeaTitan design.

“Goldwind's plan follows guidelines set out in China’s five-year economic plan for 2011 to 2015 published last year. The government has already set out its intention of prioritising the development of 3MW to 5MW onshore and 5MW to 10MW offshore wind turbines.”

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“Additionally, Goldwind looks to be moving away from direct drive. The company is believed to be testing a medium-speed model fitted with a locally made gearbox, a system described as ‘half direct drive’…[because] it would be more profitable for Goldwind to sell the expensive rare earths directly at the market…

“Earlier this year, Goldwind said it was also set to unveil a 6MW prototype by the end of 1H. It has been working on the design, with German subsidiary Vensys, since 2010.”

BIG COMPUTING GOES GREEN Energy Efficient Technologies and Practices Could Limit Total Data Center Greenhouse Gas Emissions by 13% Through 2016

April 25, 2012 (Pike Research)

“…[T]he demand for data center capacity continues to rise. The rapid adoption of IT use in the emerging economies is also providing a powerful engine for the growth of data center capacity…[All this] is further increasing these facilities’ energy footprint. Today’s data center industry consumes around 1.5%% of the world’s energy. Data center operators are struggling to keep energy demand in check while continuing to grow their capacity…

“…The need to reduce energy consumption is being driven by a diverse set of factors that includes the rising price of electricity, greenhouse gas emissions, information technology improvements, cloud computing, virtualization, large advances in cooling techniques, and significant improvements in monitoring and management tool suites.”

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“According to a new report from Pike Research, the widespread adoption of energy efficient data center technologies and best practices could significantly limit the growth of emissions of greenhouse gases (GHGs) from data centers…If current trends continue, GHG emissions from data centers are expected to total 1326 million tons of carbon dioxide-equivalent; green data center best practices could reduce that total to 1156 tons, a difference of 13% …

“Pike Research forecasts that the green data center will offer an annual market opportunity that exceeds $45 billion worldwide by 2016. The Asia Pacific region is projected to have the highest revenue growth through 2016, with a compound annual growth rate (CAGR) of just under 30% between 2011 and 2016. Double-digit revenue growth is also projected for Europe and North America (CAGRs of almost 27% for both markets)…”