QUICK NEWS, May 2: GE SEES WIND BUBBLE BEFORE BUST; INDIA’S SOLAR AMBITIONS; ELECTRIC BIKES ON THE GO

GE SEES WIND BUBBLE BEFORE BUST GE says wind business could 'run hot' ahead of PTC expiry; General Electric chief executive Jeff Immelt says the wind business "could run hot" this year ahead of the end of the production tax credit in the US.

Benjamin Romano, April 20, 2012 (ReCharge News)

”…[Jeff Immelt, CEO, GE said the] company took in new orders for 696 wind turbines in the first quarter, up 113% from the year-earlier period. Orders in GE's renewables business were worth $1.5bn, up 59%. Wind orders pricing declined 1.5%.

“Chief financial officer Keith Sherin called that level of orders ‘tremendous’…[and attributed it to the] production tax credits end by the end of the year…The executives did not comment on the US market in 2013, when the expiration of the production tax credit -- the wind industry's key incentive -- is likely to cause a precipitous decline in new installations.”

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”GE wind turbine shipments in the first quarter were up 67% to 611 units, contributing to renewables revenues of $1.5bn, up 30%. The sales price of renewables equipment shipped in the quarter was down 4%...Overall, GE took in $35.2bn in the quarter from continuing operations, down 8%, and recorded operating earnings of $3.6bn, up 1%. Operating earnings per share were $0.34, up 3% from the year-earlier period. Normalized for the impact of one-time financial items, earnings per share increased 17%.

“GE's bullish outlook for natural gas-fired turbine sales reflects the global trends for the wind industry's top competitor…[Immelt said people] everywhere in the world…are moving to gas…[and U.S. growth in electricity demand will…be served by gas…In the quarter, however, gas turbine orders were down to 23 from 27 a year earlier.”

INDIA’S SOLAR AMBITIONS On A Big Solar Mission: How India Slashed Costs, Created 'Bid Euphoria'

Jessica Lillian, 26 April 2012 (Solar Industry)

”Can India build 20 GW of grid-connected solar power by 2022? The country's ambitious Jawaharlal Nehru National Solar Mission (NSM), launched in January 2010, has already reached a few eye-catching milestones.

“Project highlights in just the past month include the completion of the 214 MW Gujarat solar park, which is reportedly the largest PV project in Asia, and a 40 MW plant developed by Reliance Power in Rajasthan. On the concentrating solar power (CSP) side, AREVA Solar recently announced plans to build a 250 MW CSP project - the largest of its kind in Asia - in India.”

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”Moreover, the entire global solar sector has taken notice of remarkable per-kilowatt-hour prices achieved by recent projects. A winning reverse-auction bid submitted by France-based SolaireDirect, for instance, offered a $0.15/kWh price for a 5 MW plant…

“The NSM also offers unique opportunities on the manufacturing side. In fact, for U.S.-based thin-film module manufacturers, gaining a market foothold may be easier in India than anywhere else…A full half of the PV projects in the NSM's first batch use thin-film PV, which has just a 14% market share globally…Although domestic-content requirements require crystalline modules used in NSM projects to be manufactured in India, thin film is currently exempt…”

ELECTRIC BIKES ON THE GO Electric Two-Wheel Vehicles in Asia Pacific; Electric Bicycles, Scooters, and Motorcycles: Market Analysis and Forecasts

2Q 2012 (Pike Research)

”Sales of internal combustion engine (ICE) scooters are strong in China, India, and most Association of Southeast Asian Nations (ASEAN) countries compared to other regions of the world. Two-wheel vehicles (scooters, motorcycles, and bicycles) are a very popular mode of transport due to their fuel efficiency and ease of use in congested traffic. As a result, consumers in Asia Pacific markets are heavily adopting traditional two-wheel vehicles…

“…Largely driven by costs…[t]he growth of the total market for these vehicles within Asia Pacific is also leading to strong expansion of the electric two-wheel vehicle industry in the region…”

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”Adoption of e-bicycles, e-motorcycles, and e-scooters will continue to be driven by rapid urbanization trends and the increase in household incomes. Economic prosperity will result in a greater number of middle and high income level consumers, which will contribute to the growth of the electric two-wheel vehicle market…

“Since the total cost of ownership (TCO) of e-motorcycles and e-scooters remains low enough to see payback on the vehicle with a year or two of purchase, Pike Research’s analysis finds that the market for electric two-wheel vehicles is likely to remain strong in regions with high economic growth rates…”