QUICK NEWS, November 1: DISTRIBUTED PV TO BOOM; PAYING FOR OFFSHORE WIND; WHAT MAKES SOMETHING ‘WINDMADE’

DISTRIBUTED PV TO BOOM
Distributed Solar Energy Generation; Demand Drivers and Barriers, Technology Issues, Competitive Landscape, and Global Market Forecasts
4Q 2011 (Pike Research)

"Solar photovoltaic (PV) capacity was added in more than 100 countries during 2010. The distributed solar PV market is dominated by residential and commercial grid-connected PV systems and is concentrated in regions with favorable financial incentives, such as premium feed-in tariffs (FITs) including Germany, Italy, France, the Czech Republic, Japan, the United States (led by California), and Canada (led by Ontario)…

"…Europe will continue to be the largest market for distributed solar PV during this forecast period…China and India’s growing economies and high percentages of population without access to electricity represent large market opportunities."

click to enlarge

"Consumer demand for distributed systems is growing…[T]he cost of PV modules [continues to fall]…Combined with innovative financing and leasing options, third-party and utility ownership models, and highly-effective feed-in tariff programs, solar PV is expanding faster than most expected…

"…[T]he solar PV market is all about cost, which is good for consumers and installers, but brutal for manufacturers. Costs are expected to continue their rapid decline as Chinese crystalline silicon manufacturers gain market share and thin-film increases in efficiency. Pike Research forecasts almost $600 billion in revenues throughout the distributed solar PV value chain during the period between 2011 and 2015…"


PAYING FOR OFFSHORE WIND
Offshore Wind Project Finance 101: Learning From Europe's Example
Mark Del Franco, 25 October 2011 (North American Windpower)

"Historically, European offshore wind projects were balance-sheet financed, typically by large utilities. However, several recent European offshore wind deals have been project financed, which could signal good news for U.S. developers seeking financing for offshore wind projects…Eight offshore wind deals have been project financed…[T]he 288 MW Meerwind project in the North Sea…was backed by U.S. investor Blackstone…

"Balance-sheet financing does have some clear advantages - namely, fewer parties involved, less risk and a cheaper cost of capital…However, project financing has become increasingly common, because it can reduce the amount of capital needed from an offshore wind project's sponsor, thus insulating the sponsor from risk…"

click to enlarge

"…[B]ecause more non-utility investors are willing to invest in offshore wind, they typically need to employ the project-finance model because they lack the deep pockets of, for example, a major European utility…[A]bout 30 banks have demonstrated an appetite for risk when it comes to offshore wind projects…[And] the offshore wind market has been strengthened by participation from…the major turbine manufacturers…

"…[T]he structure of the construction contracts, equipment supply agreements, warranties and service agreements…[as well as] what information is required for due diligence and risk allocation for offshore wind [has been settled in Europe]…[I]nformation contained in engineering and insurance reports - as well as risk allocation for weather risk, availability/performance risk during operation, and grid interruption risk - form the underpinning of the deal analysis, pricing and structuring…"


WHAT MAKES SOMETHING ‘WINDMADE’
WindMade reveals certification criteria for clean power company label
13 October 2011 (WindMade)

"…WindMade launched the technical standard for the first global consumer label for companies and organisations to buy wind power and other clean renewable energy. The label is backed by the UN Global Compact, WWF, Vestas Wind Systems, the Global Wind Energy Council (GWEC), the LEGO Group, Bloomberg and PricewaterhouseCoopers.

"…[T]he WindMade standard allows interested entities to apply for use of the label to communicate the share of wind power and other renewable sources in their overall power consumption demand…"

click thru for more info

"The WindMade Standard specifies the requirements for the use of the WindMade label, requiring participating companies to source a minimum of 25 percent of their electricity consumption from wind power…

"…The wind energy share can be procured through a company-owned wind power generation facility, a long-term Power Purchase Agreement for wind power, or the purchase of high quality Renewable Energy Certificates approved by WindMade. The exact percentage of the wind energy share will be stated on the label…"