QUICK NEWS, June 19: UTILITIES UNDER PRESSURE; CANADA-U.S. WIND PARTNERSHIP; A SOLAR SURVEY

UTILITIES UNDER PRESSURE Sluggish Economy Places Financial Pressure On Utilities

13 June 2012 (Renew Grid)

“Like many others in the U.S., utilities are very concerned about financial issues and their ramifications, according to Black & Veatch's sixth annual Strategic Directions in the U.S. Electric Utility Industry report…[C]urrent and emerging financial issues will largely be affected by the need to invest in operational technologies and competitive generation resources, as well as environmental and regulatory compliance programs.

“Strong financial planning continues to be necessary in order to gauge economic risk from factors such as smart grid investments, capital spending programs, the potential for cessation of production tax credits and distributed renewable energy generation…”

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“Utility respondents report that cost-cutting measures are in place, and more than two-thirds say these measures are having a detrimental impact on operational effectiveness. In the face of upward cost pressures, it appears that utilities will continue to look inward for additional savings while expanding technology investments. Approximately 75% of respondents indicated that cost-cutting gains must be shared, in part or in whole, with customers...

“Reflecting the impact of several major government-sponsored initiatives and significant private investment, overall renewable energy generation has doubled over the last five years, while electric load growth has remained flat…[C]ontinued growth in renewable energy generation will be driven by renewable portfolio standards…Growing industry confidence in renewable energy generation - and the ability of these technologies to address a broad array of electric industry concerns…”

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CANADA-U.S. WIND PARTNERSHIP First Wind, Emera Form Wind Energy Investment Company

18 June 2012 (North American Windpower)

“…[Boston] wind energy developer First Wind Holdings…and Canadian utility Emera Inc…[will] jointly own and operate wind projects in the northeastern U.S…[through] Northeast Wind Partners, [jointly created] to invest in the projects. First Wind will retain 51% of the new company, and Emera has invested a total of $211 million to acquire the remaining 49%.

“Emera will also make a $150 million loan to an intermediate subsidiary company of Northeast Wind Partners that will be repaid in five years. Emera will finance this transaction through existing credit facilities.”

[Because the U.S. Congress has failed to expend wind's production tax credit, there is going to be a lot more wind on this map by the end of next year.]

“First Wind’s 385 MW portfolio of wind energy projects in the Northeast, including eight operating projects in three states, have been transferred to Northeast Wind Partners. First Wind will serve as the managing partner and will continue to operate the projects…Emera affiliate Emera Energy Services will provide energy management services…

“…First Wind will exclusively manage the development business and, as such, continue to develop new wind projects in the Northeast…First Wind will have the ability to transfer up to an additional 1.2 GW of new projects into the new joint venture…According to First Wind, the completion of the joint venture could lead to up to $3 billion in future economic investment in the region in the coming years.”

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A SOLAR SURVEY Solar Survey Reveals Optimism, But Consumer Misperceptions Persist

18 June 2012 (Solar Industry)

“Consumers in China, India, Japan and the U.S. believe that solar power has high growth potential, according to the results of the fourth annual solar energy survey from Applied Materials, a study that measures consumers' understanding and awareness of solar energy…[but] many respondents had a mixed understanding of the current cost and adoption rates of solar technology, highlighting what is arguably the greatest challenge to solar energy use - lack of consumer awareness.

“Last year at this time, industry data suggested that by 2020, 98% of the world's population would have achieved grid parity, or solar energy power that is cost-competitive with traditional energy prices, but data now suggest this milestone will be achieved by the end of 2012…Fifty-five percent of all respondents recognize this shift and believe solar energy is less expensive than traditional energy sources, such as coal. Respondents in India were most likely (68%) to believe solar power was less expensive…[but] respondents in Japan were most likely (51%) to believe solar power was more expensive…”

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“Nearly half (46%) of all respondents believe the growth of the solar market would create jobs. The U.S. is most optimistic in this regard, with nearly six in 10 consumers (58%) expressing this view…China and India are nearly equal in second place…at 49% and 48%, respectively. Consumers in Japan are the most cautious…Twenty-five percent of people surveyed internationally think that solar will reduce the number of jobs.

“Nearly six in 10 (58%) consumers in China believe that the projected rate of solar energy adoption to 15 GW by 2015 is too slow…[W]hen respondents in India were asked about the government's Ministry of New and Renewable Energy's goal of increasing the contribution of renewable energy to 6% of India's total energy mix by 2022, more than half (51%) voiced concern that the rate of adoption was too slow…Survey respondents were most likely to believe the U.S. (26%) followed by Japan (22%) had installed the greatest number of solar panels, while only 17% correctly identified Germany as the leader in solar installations…”

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