QUICK NEWS, February 26: ASIA-PACIFIC SOLAR BOOM GOES ON; SO DAKOTA WANTS WIND; STILL BIG MONEY IN LITHIUM ION BATTERIES

ASIA-PACIFIC SOLAR BOOM GOES ON PV Demand in the Asia Pacific Region to Reach 13.5 GW in 2013…Leading PV Countries in Asia Pacific Starting to Exhibit Diverse Market-Entry Conditions

February 13, 2013 (SolarBuzz)

“Solar photovoltaic (PV) demand from the Asia Pacific (APAC) region is forecast to grow to 13.5 GW in 2013, growing 50% Y/Y…China, Japan, India, and Australia…will account for 90% of APAC demand in 2013. However, discrete end-market demand environments are now evolving in each of these countries. As a result, PV suppliers and technologies are being selected in each territory based upon factors such as domestic manufacturing, policies, import duties, and customer preferences…

“…[A] single go-to-market strategy…is no longer viable…In Australia, the elimination of the Solar Credit Multiplier, along with incentive reductions in Victoria and Queensland, will slow PV growth during 2013. In Japan, demand will peak during Q1’13, ahead of scheduled tariff reductions in April…The Chinese government will likely re-adjust the goals of its 12th Five-Year Solar Development Plan, and the country will see over 75% of its 7 GW demand in 2013 occur in 2H’13…In India, the final version of Phase II of the National Solar Mission program is still pending…[It could drive] a capacity increase from 3.7 to 9 GW, with an increased focus on the off-grid and rooftop sectors.”

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“The threat of further trade wars involving APAC countries, along with other import restrictions, is segmenting the APAC region into country and application-specific markets. Domestic content restrictions on imported modules into India may strongly affect c-Si supply from China or any thin-film imports to India.

“The APAC region is becoming more selective about technologies. In Japan, high-efficiency modules have become the preferred technology for locations with constrained space. In China, domestically manufactured multi c-Si modules are satisfying ground-mounted requirements. And in India, 1 GW of new demand will come from rooftop projects under Phase II of the National Solar Mission, which could further shrink this key market for thin-film suppliers…”

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SO DAKOTA WANTS WIND SD Senate panel endorses incentives for wind power

Chet Brokaw, February 14, 2013 (Bloomberg BusinessWeek)

“…[The] South Dakota Senate Commerce and Energy Committee voted 6-1 to pass a measure…that would provide financial incentives to encourage the stalled construction of wind power projects in the state…[The] construction of wind farms has drawn to a standstill in South Dakota because the state imposes much higher taxes during construction than neighboring states do.

“…South Dakota currently would charge $7 million to $11 million in sales taxes and contractor's excise taxes during the construction phase of a typical wind farm. North Dakota, Minnesota and Iowa would charge only $1 million to $2 million…[T]he committee approved a…[measure that] would give a wind project an incentive payment roughly equal to 2 percent of its final cost. For example, a $5 million project would get a $100,000 incentive payment. One costing $100 million would get a $2 million incentive payment…”

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“Rob Rebenitsch, director of the South Dakota Wind Energy Association, said South Dakota has 784 megawatts of installed wind power, while North Dakota has twice as much. Iowa has 4,536 megawatts of wind power installed…Rebenitsch said more than 13,000 megawatts of wind generation was installed across the nation last year in 192 projects costing $25 billion…[but] none of that generation was installed in South Dakota…

“Wind energy officials said the bill is a good start, but they believe larger incentives are needed…Sen. Mark Johnston, R-Sioux Falls, said he objected to the bill because it deals with only one industry…[S]tate officials and legislators are making progress in devising an overall incentive program that would cover agricultural processing and all other kinds of large construction projects.”

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STILL BIG MONEY IN LITHIUM ION BATTERIES … Global Lithium-ion Market to Double Despite Recent Issues; The market was valued at $11.7 billion at the end of 2012 - Fastest growth can be witnessed in the industrial and automotive segments

21 February 2013 (Frost and Sullivan)

“The global lithium-ion battery market was worth $11.7 billion in 2012 and is expected to double by 2016, according to Frost & Sullivan. This will happen despite the recent issues experienced by Boeing, and despite Airbus decision to abandon these batteries…

“North America holds the highest share of revenues for consumer and industrial applications while Europe boasts the highest revenues for industrial lithium-ion batteries (LiBs). The highest growth in industrial battery demand is expected to come from APAC. China, Japan and South Korea account for close to 85-90% of the global LiB production.”

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“China…has the highest concentration of LiB manufacturers: over 200 players…[in] the consumer segment and around 30-40 companies for automotive…[and many] US companies…have been acquired by Chinese firms…[The] Obama administration’s ARRA funding…[started many LiB companies but many have gone] bankrupt with the funding drying up…[the] economic slowdown…[and the] high cost of EVs…[ Germany and Switzerland are strong contributors to R&D] among European countries and the demand for batteries comes from all the three segments: consumer, industrial and automotive...

“The global LiB market holds immense opportunities for growth and expansion. Although the consumer segment is mature in developed economies, this still is a growing application in Latin America, China, [and] India…The highest potential for growth however is exhibited by the industrial applications. Manufacturers that were previously involved only on producing and selling batteries for the automotive segment…have started to sell LiBs for cordless power tools, forklifts, and garden equipment…”

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