QUICK NEWS, 3-9: CHINA UPS NEW ENERGY AIMS; WORLD WIND POWER TRIMS U.S.; SUN’S PARTS DRIVING ITS WHOLE; WIND LOOKS FOR BEST BIRD PROTECTIONS

CHINA UPS NEW ENERGY AIMS
China aims for greener economy over next 5 yrs: former energy head
Zhang Xiang, March 4, 2011 (Xinhua News)

"China will set directives for greater use of clean energy and lower carbon emissions to put its economy on the track of sustainable development, Zhang Guobao, former head of the National Energy Administration, said…China aims to increase the proportion of non-fossil fuels in overall primary energy use to 11.4 percent by 2015 from the current 8 percent…

"The target has been included in the draft of the 12th Five-Year Program (2011-2015) and will be mandatory, said Zhang, a member of the Standing Committee of the 11th National Committee of the Chinese People's Political Consultative Conference [and thought to be a leading candidate to succeed President Hu or Premier Wen]. It will keep China on course to achieve its pledge to up its use of non-fossil fuels to 15 percent by 2020…The draft will be reviewed and is expected to be approved by the country's lawmakers attending the annual session of the National People's Congress…"

China has 2 of the top 5 turbine makers in the world...(click to enlarge)

"As China's economy has greatly expanded over the past three decades, so too has its consumption of energy which mainly comes from coal. Zhang said coal accounts for around 70 percent of China's energy mix, 30 percentage points higher than the world's average…To have a greener economy, China should trim its dependency on coal and promote greater use of cleaner fuels, he said, referring to nuclear power and wind, solar and biomass energy.

"By the end of 2010, China's installed wind power capacity exceeded 41 million kilowatts to be the world's largest. China also is presently constructing 28.71 million kilowatts of nuclear power capacity, also the most in the world…Zhang said the five-year plan will aim to boost the development of nuclear power while ensuring the safety. China will start construction of its first inland nuclear power plant this year…By 2020, more than half of the 15 percent non-fossil share will come from hydropower…"

...and 5 of the top 15 solar makers. (click to enlarge)

"Greater use of clean and renewable fuels is part of the government's efforts to promote [energy security,] energy saving and environmental protection as the country's economic success has come with steep costs: unsustainable growth and pollution…Chinese Premier Wen Jiabao said on Feb. 27 that the government must not sacrifice the environment for the sake of rapid growth any longer.

"…[Wen set China’s] annual economic growth target at 7 percent…to 2015, lower than the 7.5 percent goal…[for] 2006-2010…Wen also…wants to] cut the amount of energy and carbon dioxide emissions needed for every unit of gross domestic product by 16 to 17 percent from this year to…2015…[toward] the government's goal of 40 to 45 percent reduction in carbon intensity by 2020…Zhang said the two goals will be included as mandatory in the new five-year plan, which will also demand higher energy efficiency…[and] impose a cap on its total energy consumption at 4 billion tonnes of coal equivalent by 2015, compared with 3.2 billion tonnes consumed last year…an average annual increase of 4.24 percent in energy use…"


WORLD WIND POWER TRIMS U.S.
Iberdrola Pulls Back Guidance; Cuts U.S. Development
Mark Del Franco, 3 March 2011 (North American Windpower)

"Iberdrola Renewables, one of the world's largest wind developers, says new wind capacity additions will slow this year and next, including wind farms planned for the U.S. The developer plans to install 1.5 GW this year, down from 1.78 GW in 2010.

"Iberdrola now plans to install 750 MW - 400 MW planned for Europe and 350 MW planned for the U.S. - in 2012. This is a major cut for Iberdrola…With 62 GW under development worldwide, Iberdrola boasts one of the world's largest project pipelines. Because most of its development pipeline is located in the U.S. and Spain, its future growth rates are tied to policy measures in these two markets…Iberdrola's tepid development plans underscore the need for clear [post-2012] policy in the U.S. and Spain…"

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"…[T]he investment tax credit (ITC) in the U.S. expires at the end of this year, but…will include projects in 2012 if construction begins by the end of the year…In May 2010, Iberdrola announced that it would install 1 GW in the U.S. in 2011 and 2012. At the time, the company said its U.S. efforts were significantly bolstered by $976 million in so-called stimulus funds, including a $109 million grant for the start-up of its 202 MW Penascal II wind farm in southeastern Texas.

"Iberdrola is the second-largest renewables operator in the U.S. and has a presence in 23 states. It has an installed capacity of 3.8 GW spread over 41 wind farms, with 850 MW currently under construction…[It] has a workforce of 800 employees in the U.S. and has created over 14,200 indirect jobs there since 2006. It has also made some $5.5 billion of purchases from U.S. companies over the last three years…"

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"…Iberdrola's apparent pullback greatly affects Gamesa, a major turbine supplier to Iberdrola….[because] Iberdrola is Gamesa's largest shareholder, with a stake of about 15%…"

[Dan Shreve, principal, MAKE consulting:] "The magnitude of Iberdrola's investment reduction comes as a surprise, especially given the looming 2012 expiration of key tax incentives and uncertainty regarding ITC or production tax credit extension…Order consolidation amongst GE, Siemens and Vestas is pressuring smaller players in the U.S. market…Without the strategic support of Iberdrola, Gamesa's performance in the U.S. market is certain to suffer, and [Iberdrola's decision] increases the criticality of [Gamesa's] activities in Brazil and Mexico."


SUN’S PARTS DRIVING ITS WHOLE
PV R&D Increasingly Driven by Supply Chain, According to Report
Bettina Weiss, March 3, 2011 (PV Group)

"…R&D spending by cell and module makers…remains very low…in comparison to other high-tech industries. In c-Si…[t]he majority of process innovations are currently being generated by the equipment manufacturers. Patent applications are also dominated by material and equipment suppliers…according to the recently released report on the PV Materials Market by SEMI and Linx-AEI Consulting.

"This underscores the need for effective industry collaboration and the absolute requirement that supply chain participants need to have a shared cost reduction strategy…through scaling product or process efficiency improvements…[l]ong term technical developments…[and] leveraging cost savings through standards across the global supply chain…"

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"...[A]dvanced chemicals and materials used in PV solar cells and modules…grew by 89 percent in 2010 to $8.6 billion…[and] is projected to grow to a forecasted $22.4 billion in 2015. The outlook for materials sales in 2011 will slow slightly as PV module demand in Germany adjusts to new incentive policies and module prices decline. Growth resumes in 2012 as new markets emerge, according to the industry report…"

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"Summaries of the IP filings in the USPTO and WPO show that over 2000 publications were screened in 2010 and the most prolific filers are DuPont and Applied Materials…Trailing with less than 50% of the number of solar patent applications were leaders Sunpower, Sanyo, and LG Electronics. More patents were filed in process and equipment than PV device or system technology…

"The report outlines key PV technology developments in major market segments…[such as] c-Si…[and] thin film…a-Si / Tandem…CIGS…[and] CdTe…As the industry implements these new technologies, it is opening the door for greater participation from chemicals and materials suppliers and OEMS to drive more innovative solutions…"


WIND LOOKS FOR BEST BIRD PROTECTIONS
AWEA Urges Return To Earlier 'Consensus' On Eagle Guidelines
Mark Del Franco, 2 March 2011 (North American Windpower)

"Still reeling from turbine-siting and eagle-specific guidelines released by the U.S. Fish & Wildlife Service (FWS) last month, the American Wind Energy Association (AWEA) is urging a return to what it calls "consensus recommendations," which the association claims were broadly supported by stakeholders.

"John Anderson, AWEA's director of siting policy, [said] the March 2010 recommendations that were delivered to Ken Salazar, secretary of the U.S. Department of the Interior (DOI), were widely supported by stakeholders and were the culmination of a more than two-year collaborative Federal Advisory Committee process, which also included representatives of states, tribes and wildlife conservation groups…"

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"…[T]he turbine and eagle-specific guidelines the FWS released in mid-February deviated significantly from what AWEA had advocated…The first document, "Draft Voluntary, Land-Based Wind Energy Guidelines," has been developed for the industry to avoid and minimize impacts to federally protected migratory birds, bats and other wildlife resulting from the site selection, construction, and operation and maintenance of land-based wind energy facilities…The second document, "Draft Eagle Conservation Plan Guidance," is used by FWS employees who must evaluate impacts from proposed wind projects to eagles protected by the Bald and Golden Eagle Protection Act…

"…Wind developers will have to follow the guidelines in order to obtain a take permit…AWEA claims the guidance could delay the construction of projects by up to three years and require operating projects to retroactively conduct post-construction wildlife studies for a minimum of two years and as much as five years, adding unforeseen costs to the operating budgets of these facilities."

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"AWEA says such a ruling could require adaptive management, meaning increased operational changes - such as shutting off turbines at certain times of the year - that will add further costs to projects already permitted and operating…[although] adaptive management would [likely] be left open to wind developers...AWEA also says that the ruling will expand applicability for the National Environmental Policy Act to projects built on private lands, adding time and costs to developing wind projects when there is no federal staff to perform an increased amount of administrative work.

"According to an analysis complied by AWEA, the guidelines affect more than 34 GW of potential wind power development and $68 billion in investment…[and] an estimated 27,000 jobs are at risk due to the FWS policies on golden eagles…AWEA says it cannot support the [draft] guidelines…"