Subject: #77, TRENDS in RENEWABLE ENERGIES
issue #77 for April 26
A 'heads up' overview of developments in renewable energy.
Forward TRENDS to colleagues; subscription is free.
Archives posted at http://www.renewables.ca./locate/ContentsDirectp/ncepage.htmabstract.html.l
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IN THIS ISSUE:
Renewables will be Key Issue in U-S Deregulation Bill
Northwest China Builds Large Windfarm
Final Four Turbines Installed at Texas Windfarm
CalPX Introduces New Service To Validate Renewables
Membership Grows in U-S Renewables Caucus
Iowa Wind Project Completed
First Turbines Complete at Texas Site
More Churches Vote to Buy Green Power in San Francisco
Largest Thin Film Solar System in the U-S
Group Wonders if U-S Can Generate Sufficient Power
Earth Day Network Launches Campaign for 2000
Utilities say Competition Will Hurt Consumers
Oregon Utility Launches Marketing Campaign for Wind
Myanmar Needs More Electric Power
U-S Grants $1.5 Million For Energy in Other Nations
Which Way Renewables?
Recent Canadian Contracts in Renewables
World Energy Consumption Slowing, says DoE
Congress Looks at New Approach to Hydropower
Hydro Quebec Promotes Large Hydro for GHG Reductions
Small Hydro in China Gets Canadian Support
ABC of Climate Change Gets Canadian Funding
New York Power Head says Public Will Define Electricity
Net Metering May Have Major Impact on Restructuring
Innovative Approach to Hydro Relicensing Announced
Turkish Hydro Sites to be Built by U-S Firms
Energy Tidbits
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Renewables will be Key Issue in U-S Deregulation Bill
The Clinton intention to have renewables generate 7.5% of
electricity in the U-S by 2010, is expected to be "the swing
issue" in approving the 1999 Comprehensive Electricity
Competition Act, according to Pasha Publications / Megawatt
Week. There is powerful opposition in the Senate, where the
chair of the energy committee (Frank Murkowski) says 7.5% is
absurd, too high and impossible to reach with current
technology. The renewable portfolio standard was raised from
5.5% in last year's Bill, and hydropower has been deleted as a
renewable energy source. Many Congressmen also oppose
the increase in renewables, and Edison Electric calls it
unrealistic. Murkowski says a mandate to boost the U-S from
its current 0.2% in renewables to 7.5% "is a quantum leap that
will be very expensive to consumers." The National
Hydropower Association says Clinton has "dropped another
bomb on hydropower" by excluding the source in its list of
renewables included in the RPS.
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Northwest China Builds Large Windfarm
The Xinjiang Region will install more than 63 MW of wind
generating capacity in the Dabancheng wind zone. The 80 by
20 km area has been under development since 1986. Total
capacity now is 100,000 kW, one-third of China's total wind
power. Xinjiang has potential generating capacity of 80
million kW.
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Final Four Turbines Installed at Texas Windfarm
York Research has installed the last four of 46 Vestas turbines
at the Big Spring site, which will sell green power to TU
Electric for 15 years. The $40 million windfarm has 42 V-47
and four V-66 turbines with annual generation of 117 million
kWh. The first units were commissioned last December and
have already generated 16 million kWh of power. The V-66
turbines are 370 feet tall (larger than the Statue of Liberty)
with rotor diameter of 216 feet (longer than the Goodyear
Blimp). TU Electric and Lone Star Gas want York to install
four more V-66 turbines at the same site within 90 days, to
provide 20 million kWh annually.
Details: http://www.tu.com/les.ca./locate/ContentsDirectp/ncepage.htmabstract.html.l
/news_info/press_room/release.cfm?prid=101
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CalPX Introduces New Service To Validate Renewables
The California Power Exchange have launched a Green
Exchange Service to help sellers and buyers of green energy
to validate purchases and sales of power that meet the
California Energy Commission definition of 100% renewable.
The service will confirm green power purchases and sales
scheduled through the CalPX, to support claims for CEC
credits or confirm that designated electricity purchased or sold
was produced from renewable sources.
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Membership Grows in U-S Renewables Caucus
The House Renewable Energy Caucus includes more than
one-third of all Congressmen, now at 148 members (82
Democrats, 65 Republicans, 1 independant). The House
Renewable Energy Caucus was founded in 1996 and acts as
a clearinghouse of information and activities about renewable
energy and energy-efficient technologies. Growth is attributed
to realization by Congressmen of the growing importance of
renewable energy technologies, which create new high-tech
jobs, increase national energy security and contribute to
economic prosperity.
The Sustainable Energy Coalition notes that the Senate
Renewables Caucus now includes 24 members (14
Democrats, 10 Republicans), nearly one-quarter of all
Senators. The Senate caucus was founded in 1998 to serve
the same function in the Senate.
Details: http//www.biomass.org
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Iowa Wind Project Completed
Enron Wind has finished the 80 MW Storm Lake II windfarm
after seven months of construction. Under a 20-year power
purchase agreement with IES, the 107 Zond turbines will
generate 255,000 MWh a year. It will displace 400 million
pounds of carbon dioxide, compared to coal power plants.
Enron Wind has constructed 4,000 turbines that generate
1,000 MW of green power, and owns $30 billion in energy
assets from natural gas.
Details: http://www.wind.enron.com/locate/ContentsDirectp/ncepage.htmabstract.html.l
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First Turbines Complete at Texas Site
The first 19 of 107 NEG Micon wind turbines have been
interconnected with the Texas grid, as the Southwest Mesa
project moves towards the largest wind generating facility in
the state. FPL Energy's $82 million project will supply 75 MW
of electricity under a 20-year purchase agreement with CSW.
CSW is installing 19 PV systems at public schools in Texas,
Louisiana and Arkansas.
Details: http://www.fpl.comron.com/locate/ContentsDirectp/ncepage.htmabstract.html.l or http://www.csw.comron.com/locate/ContentsDirectp/ncepage.htmabstract.html.l
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More Churches Vote to Buy Green Power in San Francisco
Two more Episcopal churches in the Bay area will switch to
100% green electricity, following seven that have made the
switch. Trinity Episcopal consumes large amounts of
electricity, much to run one of two remaining pure Skinner
pipe organs left in the U-S, which features 52 sets of pipes.
Both churches will reduce energy bills by 5% by using green
power due to rebates from the California Energy Commission.
In 1998, the Commission for the Environment of the Episcopal
Diocese of California adopted a resolution instructing all 87 its
churches in the state to buy renewable power.
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Largest Thin Film Solar System in the U-S
Solarex has commissioned the largest solar electric system in
the U-S using Millennia PV modules. The 43 kW system in
Pennsylvania uses 1,400 modules and will sell 50,000 kWh of
renewable power to Green Mountain Energy for 20 years.
The modules were funded through a Solarex program for solar
electricity (VASE), where the goal is to deploy thin-film
modules. It has secured $8.4 million to install PV systems
from North Carolina to New Jersey, with federal support from
DoE's Commercialization Ventures Program. VASE
complements the Million Solar Roof program.
Details: http://www.solarex.comcom/locate/ContentsDirectp/ncepage.htmabstract.html.l or www.greenmountain.com
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Group Wonders if U-S Can Generate Sufficient Power
A study by Allied Business Intelligence suggests that growing
energy consumption in the U-S will mean power shortages in
several regions. Capacity margins for generation are 15%
over peak demand for a given year but, by 2007, new capacity
of 150 GW will be needed while only 70 GW are planned.
The decline of coal and nuclear, and resulting demand for
gas, means a world shortage may occur, and there may be a
lack of investment capital. Fuel cells, cogen and others may
supply half the needed capacity, and wind could supply 10%
of U-S electricity by 2010, while photovoltaics has a global
manufacturing capacity of 100 MW annually.
Details: http://www.alliedworld.comlocate/ContentsDirectp/ncepage.htmabstract.html.l
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Earth Day Network Launches Campaign for 2000
The coalition of groups involved in Earth Day are already
planning the campaign for 2000 with events and activities that
start this month and culminate in a month of global telecasts,
transcontinental town hall meetings, and worldwide grassroots
mobilization during April 2000. This month, the DoE will
dedicate a PV system on its headquarters roof in Washington.
Under its slogan for 2000, 'New Energy for a New Era',
groups will support the transition to renewable energy sources
and level the playing field by ending government policies that
subsidize combustion energy sources.
Details: http://www.earthday.netcomlocate/ContentsDirectp/ncepage.htmabstract.html.l
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Utilities say Competition Will Hurt Consumers
U-S electricity officials in South Carolina testified that
competition in the sector could hurt homeowners, small
businesses and utilities, and may never guarantee
dependable power. The state is considering legislation to
deregulate the power sector, and utilities note that California
has spent $90 million on consumer education, but less than
1% of customers have switched providers.
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Oregon Utility Launches Marketing Campaign for Wind
On Earth Day, the Eugene Water & Electric Board will allow
its 75,000 customers to buy wind electricity at a $0.07/kWh
premium (70% higher than current rates). Costs will vary by
consumption and percentage of wind power purchased (from
10% to 100%). The Foote Creek Rim windfarm in Wyomong
will generate 41.4 MW of power, of which EWEB has a 21%
share. Revenue from wind sales will pay off the $13 million
investment in turbines and fund some operational costs over a
25-year payback period. A customer choosing 10% wind
would pay an additional $3.09 for every 1,000 kWh of power
($7.73 for 25% option, $15.45 for 50% and $30.90 for 100%).
The average residential monthly charge is $54.46.
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Myanmar Needs More Electric Power
Water shortages at hydro plants in Myanmar for the past two
years have caused shortages in electricity generation. The
state-run utility generated 4.3 billion kWh in 1998, 487 million
kWh less than 1997. Myanmar will ask Chinese companies to
implement three hydropower projects.
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U-S Grants $1.5 Million For Energy in Other Nations
Energy secretary Bill Richardson has given $1.5 million for ten
projects that promote energy efficiency in Russia, Ukraine,
China and several Latin American countries. At a meeting of
70 ministers at the UN Commission of Sustainable
Development, he said the U-S will soon launch a five-year
plan to use more wind energy.
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Which Way Renewables?
(condensed from Energy Insight -- RDI; copyright)
The North American energy industry is fully aware of the finite
nature of generation resources. A series of environmental
initiatives will impose limitations on greenhouse gas emissions
from generating fuels, especially fossil fuels. These limitations
will be economic in nature, based on the notion that cost is the
ultimate deterrent to consumption. But environmental
programs specifically target reliance on fossil fuels, a resource
upon which the economy has become dependent.
One way to reduce the reliance on fossil fuels in electrical
generation is to increase generation from renewable energy
resources. The idea is gaining popularity with U-S government
officials, especially in the context of the Kyoto Protocol and
worldwide reductions in the use of fossil fuels. The Clinton
Administration's 'Comprehensive Electricity Competition Plan'
supports a federal Renewable Portfolio Standard that would
require all electricity sellers by 2010 to cover 7.5% of their
electricity sales with generation from non-hydro renewable
sources, such as wind, solar, biomass or geothermal. Retail
sellers could meet the proposed requirement either by
generating enough electricity using renewables to meet the
standard, or by buying tradeable credits. While there have
been significant increases in generation from coal, nuclear,
and natural gas sources, increases from renewable sources
have not been as forthcoming. Part of this is due to the fact
that renewable energy sources use expensive technologies to
turn fuel into power. This, coupled with the non-transportability
of many renewable resources, means that they have a long
way to go before they can supply significant amounts of
replacement energy.
But in 1998, when technological know-how and substantial
cost reductions were apparent, the alternative to fossil fuels
grasped only a 10% share of total U-S electric generation.
And hydraulic accounted for 98% of that. But hydro generation
is under threat from environmentalists, and it shrank 9% in
1998 due in part to environmental restrictions and to poor
weather conditions. Hardest hit was the Pacific Northwest, a
region well endowed with hydro resources and one that relies
heavily on hydro as an inexpensive source of power.
Salmon run has resulted in imposed periods of limited
generation, and ecological assessment has an brought acute
awareness of the effect that dams have on rivers. Of the 306
million MWh generated from U-S hydro projects in 1998, 207
million came from western regions, of which 91% came from
California, Oregon and Washington. Decreases in hydro will
have disproportional effects on regional markets and, in the
western U-S, this reduction in hydro shifted supply to gas-fired
peaking capacity, and resulted in price surges of $6/MWh.
Emission restrictions from the Kyoto Protocol will have an
effect on fossil fuel sources, which provide 70% of generation
in the U-S, of which more than half is provided by coal.
Replacing this capacity with renewable energy within Kyoto
time frames appears to be a daunting task, and costs of such
a change will be enormous.
Renewables offer only a faint glimmer of hope at present.
After removing hydro, renewable sources from geothermal,
solar and wind accounted for almost 0.16% of total generation
in 1998, which has actually declined over the last five years
despite efforts to bolster renewable generation options.
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Recent Canadian Contracts in Renewables
Contracts have been awarded for work in renewables:
- Solar Collector Absorber Coatings ($15,889) Thermics
Research, Kingston
- Wind Monitoring Data ($11,760) Zephyr North, Burlington
- Micro-pump Controller ($12,840) Agile Systems, Waterloo
- Improve Wind Turbine Blades ($85,600) Ph Composites,
Huron Park
- Wind Resource Assessment ($38,455) Zephyr North,
Burlington
- Case Studies of the Impact of Subsidies on Renewable
Energy Investments in Remote Communities ($38,573)
Enermodal Engineering, Kitchener
- Canadian Wind Energy ($15,750) MSC Enterprises, Ottawa
- Solar Crop Drying ($31,639) Enermodal Engineering,
Kitchener
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World Energy Consumption Slowing, says DoE
The annual growth in global energy consumption slowed to
1.1% in 1997, down from 2.8% increase in 1996 and below
the 1.3% average growth since 1988, says the 'International
Energy Annual 1997' of DoE. Slower growth was due to
declines in consumption of natural gas and nuclear power.
Total energy production increased 1.7% in 1997 (versus 2.7%
in 1996) but greater than the 1.4% average annual growth
since 1988. Growth rates in 1997 were higher for geothermal,
solar, wind electricity, and petroleum. CO2 emissions from
fossil fuels grew 1.2% in 1997 (vs 2.8% in 1996) but higher
than the 0.8% average growth since 1988.
The report shows that five countries (U-S, States, China,
Russia, Japan, Germany) consumed half the world's energy in
1997; and five (U-S, Russia, China, Saudi Arabia, Canada)
produced half the world's energy in that year. Five (U-S,
China, Russia, Japan, India) emitted half of global CO2 from
consumption fuels.
Details: http://www.eia.doe.gov/emeu/iea/contents.htmlctp/ncepage.htmabstract.html.l
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Congress Looks at New Approach to Hydropower
(condensed from Energy.com)
Is hydropower a good thing? Yes, say millions of Americans
who enjoy low-cost, reliable, pollution-free electricity from
dams across the country. But experts increasingly point out
that costly federal relicensing requirements are so
burdensome that they threaten the very existence of the
industry. Under federal relicensing law, dozens of regulatory
agencies and other stakeholders must be permitted to
participate in the process. The result is frequently haphazard
maze of state and federal regulatory requirements that can
take as long as 24 years. National Hydropower Association
says people are not willing to take that route, and show
dozens of feasible hydro sites but only a handful of new
projects during the past 20 years.
A proposal that reforms continue environmental requirements
('mandatory conditioning') as part of the relicensing process
for hydro facilities on federally-controlled waterways has been
made by a Senator and a Congressman, but the concept
would require federal agencies to consider the benefits of
hydro (air quality, recreational uses, power generation,
navigation, flood control) before imposing requirements that
could discourage operators from continuing to generate. It
would also require Federal Energy Regulatory Commission
(which oversees the relicensing process) to place a time limit
of not more than one year for regulatory agencies to impose
conditions as part of the relicensing.
Opponents of the hydropower industry argue that the current
process remains workable. A spokesperson for American
Rivers disagrees with a legislative approach, adding that
recent FERC efforts to promote cooperation in the relicensing
process adequately address those concerns. Greenpeace
activists say they do not actively oppose reform, they oppose
any legislation that might strengthen the hydro industry, which
they say is to blame for dwindling fish populations on many
rivers.
Hydro officials dismiss the allegations, adding that the bill
retains all existing environmental protections, and simply tries
to reduce costs while protecting the environment under
increased competition in the electric industry.
Ultimately, competition may be the biggest factor in the
debate. Canada's hydropower industry faces few of the
environmental restrictions confronting U-S counterparts, and
increasing amounts of cheap Canadian hydroelectricity will
soon be imported under NAFTA. Many Canadian facilities
were built with surplus generating capacity, and Americans
must find ways to maintain existing environmental protections
while keeping the domestic hydro industry viable, or accept
that the U-S industry will disappear and be replaced by a
Canadian industry with far fewer environmental protections.
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Hydro Quebec Promotes Large Hydro for GHG Reductions
The $54 billion utility says that generation from hydro emits no
greenhouse gas, and hydroelectric heating emits 12 times
less GHG than competitor sources and 40 times less SO2.
Large reservoirs release 29 times less GHG net emissions
than fuel oil, and 34 times less than coal. Almost all of the 14
TWh generation is from hydro, which Hydro Quebec says will
reduce Canada's GHG emissions by 2%. Since Canada
agreed to the Kyoto protocol, Quebec is the only province to
maintain its GHG emissions at 1990 levels, due to the reliance
on hydropower. Environmental officials estimate that the
development of only half of Quebec's unexploited hydro
potential would allow Canada to reduce its GHG emissions by
16%. HQ's La Grande Complex generates 85 TWh per year,
which is equivalent to burning 40 million tons of coal.
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Small Hydro in China Gets Canadian Support
A Canadian firm and the federal government will invest almost
two million in a small hydro site in China. Powerbase
Automation Systems will install its turbine control unit at five
hydro plants, with $1.1 of its own money and more than
$800,000 from the energy department and Canada's climate
change action program (the five sites should reduce CO2
emissions by 30,000 tonnes per year). China will invest $1.5
million. The market for automated small-hydro control units in
China alone is $21 million per year for the next decade, and
$14 million per year after that.
Details: http://www.NRCan.gc.ca/css/imb/hqlib/9934a.htmtp/ncepage.htmabstract.html.l
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ABC of Climate Change Gets Canadian Funding
The Energy Council of Canada will receive $600,000 from
Canada's Climate Change Action Fund to launch a program
on GHG emissions through 'ABC's of Climate Change --
Action By Canadians initiative.' Using the model of the United
Way, Canadians will be encouraged to pledge to reduce their
own emissions.
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New York Power Head says Public Will Define Electricity
NYPA president Eugene Zeltmann says consumers will tell the
utility industry "in growing numbers" about their desire for
environmentally clean power. Fuel cells, rooftop PV systems
and microturbines are technically feasible, and NYPA is
staking its future in the new industry.
Details: http://www.nypa.gov.ca/css/imb/hqlib/9934a.htmtp/ncepage.htmabstract.html.l
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Net Metering May Have Major Impact on Restructuring
U-S legislation to restructure the electricity industry includes
'net metering', which is designed to help meet the 2010 goal of
7.5% of retail electricity from non-fossil sources. Equipment
needs standards to allow interconnection to the grid, and the
issue is under study by the Institute of Electrical + Electronics
Engineers. Eligible onsite facilities would be limited to peak
generating capacity of under 20 kW (most residential rooftop
PV units are under 4 kW). The limit on size could encourage
small businesses to install panels, if it is profitable, and net
metering will also encourage development of other distributed
power sources such as fuel cells and gas-fired microturbines.
At least half the U-S states have laws on net metering; New
Jersey and Virginia passed bills in January; Montana, Oregon
and Nebraska will adopt laws by December. Some utilities
offer net metering, and California pays one-third of the cost to
install a PV system, plus gives a property tax exemption.
Details: http://www.energy.com/news/cover/cv041599.aspmtp/ncepage.htmabstract.html.l
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Innovative Approach to Hydro Relicensing Announced
(condensed from Energy.com)
While environmental activists and U-S hydro industry officials
remain far apart on the future role, if any, of hydro in the
energy mix, both sides agree that this week's commitment to
relicense two large hydro facilities along Idaho's Clark Fork
River could serve as a model for future cooperation between
environmentalists and the industry. Spokane's Avista and the
environmental group Trout Unlimited will act as partners, not
opponents, in the relicensing of Avista's Clark Fork River
facilities. Even more surprising is that Avista will help fund
Trout Unlimited's participation in the process.
Why would Avista cooperate with Trout Unlimited, a group that
some say is dedicated to the destruction of hydro industry?
Under federal law, privately-owned hydro facilities are initially
licensed by FERC for 50 years, after which the plant operator
must apply for a new license. But that process can be difficult
for licensees, with regulatory proceedings for years and legal
fees easily running into the seven-figure range. Recognizing
this, both Trout Unlimited and Avista decided to work together
with stakeholders (39 organizations, including native tribes,
environmental groups, community interests, government
agencies) to reach a comprehensive agreement prior to filing
a formal relicensing application.
To accomplish these goals, Avista and Trout Unlimited agreed
at the beginning of the process that consensus would be the
decision-making tool to reach overall agreement, and both
agreed that collaboration would be the start of an ongoing
relationship in which both sides would work together to
manage the river resource.
Both sides achieved important objectives under the deal;
environmental groups welcome the $320 million in funding to
restore the river and local fish. While this is a big sum for a
company facing an increasingly competitive electric industry,
Avista will benefit because the agreement will be at lower cost
compared with litigation. The agreement has also been
formally endorsed by FERC as a model for use in future hydro
license renewals.
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Turkish Hydro Sites to be Built by U-S Firms
Nine or ten small hydro plants will be built under a bilateral
Turkey-US energy protocol. Total cost is $1.5 billion, and
have total capacity of 1,507 MW. Ankara expects electricity
demand to grow at 10% a year, and will also build gas-fired,
coal-fired and Turkey's first nuclear power plant.
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Energy Tidbits
- Earth Day celebrations planned for DoE's National
Renewable Energy Laboratory in Colorado have been
canceled because of a snow storm. Tours of the NREL facility
are offered two days a month.
- A former Assistant Secretary for Renewable Energy has
been appointed as first chief staff officer of the U-S Green
Building Council. Christine Ervin was Clinton's top
renewables official from 1993 to 1997 (www.usgbc.org).
- Colorado has extended its solar energy rebate program until
the end of this year to meet growing demand and interest.
Consumers get a cash incentive of up to 25% for installing
grid-connected PV and solar DHW systems.
- The $117 million Yucan run-of-the-river hydro facility will
harness two rivers in Peru to generate 134 MW of electricity.
Twenty kilometers of tunnels will be bored through the Andes
(www.skanska.com/news/pressreleases/arkiv/1999/9932.htm).
- Organizers of an Earth Day celebration awarded British
Petroleum for its environmental practices, but the award was
criticized by Greenpeace, who said BP has more investment
in fossil fuels responsible for global warming than in solar energy.
- Officials from Los Angeles will travel to China to promote the
use of renewable energy generation as a means of cleaning
the environment.
- A weak Canadian dollar helped boost Hydro-Quebec's
exports of electricity by 36.6% in 1998, to $814 million from
$596 million in 1997. Exports to the U-S doubled, while sales
to the rest of Canada fell. Total revenue for the utility
surpassed $8 billion.
- Green Mountain Energy will donate $20 for each of its
customers in the Santa Cruz / Monterey (CA), towards
community projects in coastal environment and homeless. It
will donate $35 to the Redwood Alliance for each new
customer in the Arcata/Eureka area www.greenmountain.com
or www.igc.org/~redwood).
- Keystone Energy will work with American Forests to plant at
least 20,000 trees by 2001, and name each for its customers
of green energy.
- The Civano community in Tucson (AZ) will provide 2,600
homes that integrate solar technologies and energy efficiency
construction. The standards will displace one billion pounds
of carbon emissions from entering the atmosphere
(www.civano.com).
- More than 400 students from 60 schools in Los Angeles
submitted ideas for posters to depict green power, and the LA
utility will incorporate them into a campaign to market its new
option for renewable energy (www.GreenLA.org).
- General Motors and Toyota will jointly commit hundreds of
engineers to projects on electric vehicles, hybrid EVs and fuel
cells for EVs. GM launched the EV1 in 1996 and has spent $1
billion on the technology. It has promised a hybrid EV by
2001 and an fuel cell EV by 2004.
- Ballard Power is testing zero-emission vehicle technology in
California.
- New York Police have installed a fuel cell power plant in its
Central Park police station, to reduce GHG emissions while
supplying the station's power and charging electric vehicles
for police use.
- The Royal Dutch / Shell Group has joined the California Fuel
Cell Partnership (the state of California, energy companies
and automobile manufacturers) to test hydrogen fuel cell
vehicles under real driving conditions.
- Sales of natural gas in Canada in February rose 5.5% from
last year, to 7,053 million cubic metres, due to higher demand
by electric utilities and cold weather.
- Canada's inflation in March was up 1.0% from last year, due
to a 13.1% increase in the price of piped gas. The material
price of gas has jumped 22.9% due to higher demand for
natural gas and a tightening of the supply in Canada.
- Southern California Gas, the largest gas distribution utility in
the U-S, will invest $7.5 million in residential fuel cell
developer Plug Power.
- Lagos will spend $320 million to build four waste-to-energy
plants.
- The average U-S household consumed 12% of electricity for
air conditioning and 11% for space heating. Three-quarters of
all homes have air-conditioners (47% central A/C, 25%
window units).
- Wisconsin Gas will market outdoor gas-powered generators
to respond to focus groups that want an automatic generator
in the event of a power outage. The 5-25 kW units cost up to
$15,000, including installation and gas piping
(www.power-now.com).
- Research in Ireland show that cannabis has strong potential
as a fuel crop, but it is not expected to be commercialized in
the near term. Despite some downsides, hemp has good
yield, burns efficiently and produces little sulfur.
- Federal legislation is needed to protect the reliability of the
U-S electric grid as the power industry deregulates, the North
American Electric Reliability Council told Congress.
- Toyota is the first automaker to meet its commitment under
California's zero-emission deal, under which advanced battery
zero-emission vehicles would be on the market by 2003.
Toyota had to sell 322 but, during 1998, sold 359 RAV4-EV
cars, the best-selling electric vehicle in the U-S.
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TRENDS in RENEWABLE ENERGIES is circulated by the
Canadian Association for Renewable Energies. Many sources
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Canadian Association for Renewable Energies
Bill Eggertson
We CARE
mailto:info@renewables.ca
TRENDS in RENEWABLE ENERGIES
issue #78 for May 3
A 'heads up' overview of developments in renewable energy.
Forward TRENDS to colleagues; subscription is free.
Archives posted at http://www.renewables.ca.s/cover/cv041599.aspmtp/ncepage.htmabstract.html.l
If contact information is not provided, it is not available.
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IN THIS ISSUE:
Renewables Meet Cost Drops but not Penetration Goal
Wind Passes 10,000 MW Mark
Renewables Restrained by Low Fossil Fuel Prices
U-S Government Starts Campaign for Renewables
Taxation: U-S Watches From Sidelines
Spire Solar May be Up for Sale
U-S Launches Green Energy Program for National Parks
Downtown Windmill in Toronto
DoE Gives $500,000 for Clean Energy Projects
Geothermal Energy from The Geysers
Calpine Sells Green Electricity to Commonwealth Energy
A Decade of World Energy
Photovoltaic Roof on DoE Headquarters
Green Supplier Works with Religious and Ecology Groups
Green Mountain Draws Investor Interest in Renewables
South Asia Needs More Electricity Capacity
U-S Senators Launch Alternative to Kyoto Curbs
U-S Politicians Want to Stop Emissions Trade
An Opinion
Energy Tidbits
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Renewables Meet Cost Drops but not Penetration Goal
Despite U-S support for renewable energy for 30 years, these
technologies have failed to emerge as a prominent component
of the energy infrastructure, according to a study by the RFF
think tank in Washington. This has created the impression
that renewables have not met the claims of proponents and,
after several decades of support without success, "it is time to
pull the plug on renewables." The study reviewed 25 studies
on biomass, geothermal, photovoltaics, solar thermal and
wind, that projected costs or market penetration, and found
that renewables "have failed to meet expectations with respect
to market penetration", with the exceptions of wind (which met
projections from the 1980s) and biomass (where market
penetration has exceeded projections). However, renewable
technologies have succeeded in meeting expectations with
respect to cost. In virtually every case, the path of actual cost
has equaled or been below the projections for that period in
time. The only exception was the capital cost for PV.
"These findings refute the premise that renewable
technologies have failed to meet public policy goals,
especially with respect to projections of cost, which we
perceive to be the more important measure. This is
remarkable, given that renewable technologies have not
significantly penetrated the market, nor have they attracted
large-scale investment and production that can contribute to
technological development or economies of scale in
production, as many analysts anticipated when forming their
cost projections. The small market share of renewables
appears to have more to do with changes outside their own
development--principally regulatory reform and changes in
conventional technologies--than with their technological
performance. The industry appears to have been most
successful with respect to factors most within their control."
The analysis indicates the market share for renewables is
more affected by changes outside the technology than with
technological performance, such as declining costs for
conventional fuels. "Any argument that public policy support
for renewable technologies should be ended because 'past
efforts have been unsuccessful' is based on a faulty premise."
Details: http://www.rff.org/disc_papers/summaries/9928.htmncepage.htmabstract.html.l
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Wind Passes 10,000 MW Mark
Global wind energy capacity has surpassed 10,000 MW, says
the International Energy Agency. Five nations account for
more than 80% of installed capacity (Germany, U-S, Denmark,
India, Spain) and wind was the world's fastest-growing
renewable energy source for the fourth straight year in 1998,
with 2,100 MW installed and equipment sales of $2 billion.
Growth has been driven by improved wind technology and
supportive government policies, and the European Union
estimates that 40,000 MW will be installed in Europe by 2010
(including offshore sites in Denmark and Holland). The U-S
says 10,000 MW will be installed domestically by 2010.
Details: http:/www.iea.org/impagr/imporg/iadesc/windpres.htm
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Renewables Restrained by Low Fossil Fuel Prices
The use of renewable energies, natural gas and coal will grow
around the world, according to DoE's latest International
Energy Outlook, with gas posting annual growth of 3.3%
through 2020. Consumption of renewables will grow by 2.0%
per year, but low prices for fossil fuels will impede increases in
the total share of renewables. There will be strong demand
for coal in developing nations, and only nuclear power will
decline during the forecast period. Global consumption will
reach 612 quadrillion Btu in 2020, which means that total
consumption will have tripled in the past 50 years. Ratification
of the Kyoto Climate Change Protocol could affect many of
DoE's projections, as industrialized nations try to reduce
consumption of fossil fuels by the equivalent of 30 million
barrels of oil per day. If not, world carbon emissions will reach
9.8 billion tons per year in 2020, 70% over 1990 levels.
Details: http://www.eia.doe.gov/emeu/plugs/plieo99.htmlhtmncepage.htmabstract.html.l
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U-S Government Starts Campaign for Renewables
Energy secretary Bill Richardson says "we need to make the
transition to clean, renewable energy sources and ... to
explore the alternatives that can help us reach our goal of
affordable clean energy supplies for the future." He told a
conservation group that the 'Comprehensive Electricity
Competition Plan' before Congress would reduce greenhouse
gas emissions by up to 60 million tonnes a year by requiring
that 7.5% of all electricity sold by 2010 is from renewable
resources, and would create a Public Benefits Fund to help
programs that promote renewables R+D. "Renewable energy
sources such as wind and solar can help us ensure economic
growth for ourselves and our children while protecting and
improving the environment."
Budget proposals for renewables and energy efficiency "are
already coming under attack," and he called for "all the help
we can get" from groups that care about renewables.
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Taxation: U-S Watches From Sidelines
(copyright: Financial Times)
Not all countries are keen to tax their way to a cleaner
environment, but Germany has started a major long-term
ecological tax reform with the introduction of a new energy tax
on April 1.
With a carbon tax already agreed in Italy, significant energy
tax increases tabled in the U-K, energy excise duty
harmonization across the European Union now likely, and
energy and carbon taxes already an integral part of tax reform
in the Nordic region and the Netherlands, there is plenty of
political will behind the issue in Europe.
In North America, there is little opportunity for this type of
debate, but in Japan energy taxes may emerge as part of the
country's emissions-cutting 'Kyoto plan'.
With oil prices falling from $28 in 1984 to as low as $9 per
barrel this year, and energy prices lower in real terms than
they were in 1993, how important are these developments?
For some they mark the beginnings of substantial tax reform.
For others they simply balance out some of the energy price
decreases over the past ten years.
The U-K Climate Change Levy proposal reflects current
political realities. Government support for the coal industry
and its pledge not to raise domestic energy taxes has stymied
a straightforward carbon tax. Instead, the tax will raise around
£1.75 billion by increasing the wholesale price of electricity by
17% (0.6p/ kWh) and gas by close to 40% (0.21p/kWh), while
reducing the employee tax costs to employers
Despite the government's words of support for renewable
energy, it is not exempt from the tax.
The German energy tax does give signals of support, and will
be used to reduce labour taxes to 40% while raising energy
prices by 10% over three years. Many industries and farmers
will be exempt from the tax, but renewable energy sold on the
grid will not (although the tax income will be used to fund
renewable energy programs).
A European Union Directive increasing minimum level energy
excise duties is part of a wider EU tax harmonization package,
which would increase minimum levels of excise duty on fuels,
while introducing them for natural gas and coal.
The Dutch and Danish tax systems already have a range of
energy and carbon taxes, including the recycling of tax
revenues to both reduce other taxes and assist renewable
energy investments. Four different energy taxes apply in the
Netherlands, which provides a 40% tax credit for selected
renewable energy measures.
In the U-S, no energy tax proposals have been mooted since
a modest increase scraped through during President Clinton's
first term of office. Although U-S carbon emissions are
increasing alarmingly for a country with a 7% reduction target
by 2010, the Sierra Club says "energy tax proposals are a
non-starter." As the largest GHG emitter in the world, the U-S
hopes that it can carbon-trade its way out of the problem
created by its own obsession with cheap energy.
Details: http://www.usa.ft.com/ftsurveys/q5422.htm.htmlhtmncepage.htmabstract.html.l
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Spire Solar May be Up for Sale
Massachusetts-based Spire is exploring "strategic options",
including joint ventures, a merger, or the sale of some of all of
its photovoltaic business. The world's largest supplier of PV
manufacturing technology and turn-key production lines has
equipment in 142 facilities in 38 countries, and also works in
optoelectronics and biomedical areas. It has hired a financial
advisor to determine the company's options.
Details: http:/www.spirecorp.com
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U-S Launches Green Energy Program for National Parks
Federal and local agencies, including DoE and Department of
the Interior, have launched the Green Energy Parks Program
to demonstrate and promote use of renewables and energy
efficient technologies in more than 20 national parks. The
budget is more than $1.5 million, and will reduce energy costs
in one site (Presidio) by $6 million over ten years. A solar
system will also be installed at Alcatraz prison.
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Downtown Windmill in Toronto
Toronto Hydro will reconfigure an existing windmill at its
downtown Riverdale Farm, to eliminate grid power for a
groundwater pump. The turbine will also divert and recycle
storm water and groundwater, improving the habitat for the
pond's ecosystem. Officials say the educational facility should
use a wind-powered pump to show visitors how renewable
energy sources work and their environmental benefits, and to
remind consumers that wind power is a viable energy
alternative. Toronto Hydro is the second largest municipal
distribution utility in North America, and distributes 25% of
electricity in Ontario with a peak load of 4,500 MW and
650,000 customers.
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DoE Gives $500,000 for Clean Energy Projects
DoE's Office of Energy Efficiency + Renewable Energy will
provide $500,000 for electric power projects that significantly
reduce greenhouse gas emissions in projects in developing
countries. Solicitation DE-PS01-99EE10649 is limited to
projects that reduce at least 500,000 tons of CO2 per year.
Details: http:/www.pr.doe.gov/solicit.html
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Geothermal Energy from The Geysers
The northern California region known as The Geysers, is the
world's single largest producer of geothermal electricity,
generating 1,000 MW of renewable energy from steam from
within the earth. About 80% of The Geysers is owned by
Calpine of San Jose, which produces marginal energy at
half-a-cent per kWh. When water runs out in future, 95% of
the heat will remain, and Calpine plans to pipe in wastewater
from local communities, and inject it into the ground to extend
the life of the water. It also plans to develop 500 MW in Glass
Mountain, near the Oregon border. In the U-S, geothermal
generates 3,000 MW; worldwide, the total is 8,000 MW. It
also supplies heat to 17 district heating systems in the U-S
and others internationally.
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Calpine Sells Green Electricity to Commonwealth Energy
Calpine will sell geothermal energy from The Geysers to
Commonwealth Energy for three years. Calpine generates
800 MW of green electricity from the steam, and CE will
purchase 60 MW during 1999, increasing to 125 MW by June
2002. Total revenue for the period will be $90 million.
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A Decade of World Energy
Between 1988 and 1997, world output of energy increased at
an average annual rate of 1.4%, with petroleum supplying
40% of primary production. Geothermal, solar and wind
electricity provided 6.9%, 6.3%, and 0.5% respectively, with
an increase of 276% over the decade, from 35 billion to 131
billion kilowatt-hours (part due to changes in reporting). In
1997, Energy Insight -- RDI says the 2.1 quadrillion BTU of
biomass, geothermal and solar energy produced in the U-S
and not used for generating electricity, represented 0.6% of
world primary energy production.
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Photovoltaic Roof on DoE Headquarters
The U-S Department of Energy has a solar panel on the roof
of its headquarters in Washington, that will generate 4,500
kWh a year. DoE granted $600,000 to 18 partnerships to
encourage home builders to include solar systems in homes
and to develop financing options for solar systems. It will also
work on development of standard building codes for solar
units and develop training programs for inspectors.
Details: http://198.124.130.244/news/releases99/aprpr/pr99087.htm.htmabstract.html.l
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Green Supplier Works with Religious and Ecology Groups
Commonwealth Energy and the North American Coalition on
Religion + Ecology will promote the benefits of green power to
30,000 non-profit organizations throughout California. Under
the 'Greensmart Renewable Energy Project', NACRE will
recommend that religious and non-profit organizations in the
state switch to Commonwealth's green energy options for
environmental reasons.
Details: http://www.powersavers.coms/releases99/aprpr/pr99087.htm.htmabstract.html.l
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Green Mountain Draws Investor Interest in Renewables
(copyright Philadelphia Inquirer and Knight Ridder/Tribune)
With the ceremonial pull of a switch, 1,400 PV panels are
turning sunlight into electrons at a 43 kW facility on the roof of
BJ's Warehouse, the largest solar generator in Pennsylvania.
Yet, even on a sunny day, it won't produce enough power for
the lights and refrigerators in the store itself. On one overcast
morning, only four kilowatts were actually being generated.
Ninety-eight percent of Pennsylvania's electricity comes from
nuclear, coal and fossil fuels, with the remainder from water
power. But if renewable energy remains years from being a
significant source of power in Pennsylvania, it is proving quite
a potent marketing device for Green Mountain Energy, which
is purchasing the output of the new solar facility.
The company's $33 million marketing campaign last year
netted it 21,000 customers in California and 36,000 in
Pennsylvania. In California, where consumers have little
monetary incentive to choose a new supplier, virtually all
those who are switching have chosen GME or two other
'green' products from traditional utilities. In Pennsylvania,
which opened its electricity market to competition in January,
29% of those who switched chose GME's no-coal, no-nuclear
power, tied with Peco's Exelon brand for first place. GME's
success has come even though its rates are 13-45% higher
than their cheapest competitor, and 20% higher than Peco's
current rate.
"They are the most recognized supplier in the market, whether
or not the customers are green purchasers," concluded a
recent study by the consulting firm Xenergy. Two other groups
are offering energy from renewable sources, but neither has
done much marketing of the products.
GME is a long way from earning a profit, having piled up $60
million in losses since it was founded two years ago.
Expanding its heavy marketing campaign to other states as
they open to electricity competition would soon exhaust even
the bankroll of Texas financier Sam Wyly, whose family has
invested $95 million to date. So the company will issue a
public stock offering to raise $600 million in funding.
Investors may find the company's approach compelling. While
other providers are appealing for customers based on low
prices or home-town sentiment, only GME is tapping eco-guilt
to brand the electrons themselves. But GME is a mere
grasshopper among the wooly mammoths of the electric
industry and could be crushed by companies with greater
financial backing. In addition, the state-by-state nature of
deregulation makes it uncertain how quickly the company will
be able to expand its offerings. And the resumes of its top two
executives include some noteworthy business failures. Wyly,
GME's chairman, has had a roller-coaster business career
that included a 1979 consent order over what the SEC called
an illegal financing scheme. Forbes magazine described Wyly
as "one of those go-go businessmen who at times seem to
know what they're doing and at other times seem not to know
at all."
As GME's CEO, Wyly chose David White, 37, a former VP for
Boston Chicken who helped build a bagel company. The
stocks of both fast-food chains have collapsed amid
allegations that they misled investors with deceptive financial
statements.
GME officials say securities rules prohibited Wyly and White
from answering questions about their background, during the
'quiet period' before shares go public. The rules also prohibit
them from talking about plans beyond what is stated in the
tentative prospectus filed with the SEC.
But in an interview last June, Kevin Hartley, GME's senior vice
president for marketing, explained the company's strategy.
"If Ben + Jerry's, Patagonia, Saturn and Starbucks got
together and started an energy brand -- that's us," said
Hartley, 38, who speaks of his company's mission in almost
evangelical terms. GME's tentative prospectus outlines plans
to go beyond electricity to use its web site to market solar
generators, co-branded credit cards, eco-tourism and
environmentally responsible investments. Americans spend
$75 billion on residential electricity, for every market-share
point is worth $80 million.
GME is the offspring of Green Mountain Power, a Vermont
utility that won customers with mailings of spruce seedlings
and offers of emissions-free power, although some
environmentalists said the source was Hydro-Quebec's
environmentally unfriendly large dams.
But the head of Green Mountain Power, Douglas Hyde, was
so taken with the potential that he quit his post to start GME
as a green power subsidiary and connected Dallas financier
Wyly. A Business Week profile says Wyly's successes have
featured "some spectacular wrecks," including a bankruptcy
and a failed challenge to AT&T. In 1979, Wyly signed a
consent decree settling SEC charges that he skirted
bankruptcy by giving his top creditor a consulting contract that
he concealed from other investors. Wyly and his family anted
up $30 million for two-thirds of GME in 1997, and increased
their total stake to $90 million this year, after buying out Green
Mountain Power's shares for $1 million in December. He then
eased out Hyde in favor of White, who attended grade school
with Wyly's son. There has been controversy over Boston
Chicken's growth, including charges that most of its income
was not from royalties or food, but from repayments of money
lent to franchisees.
White left Boston Chicken in June 1997, about the time the
first of a series of class-action stockholder suits was filed
accusing the company of accounting fraud, and raised money
for Einstein/Noah Bagel, which became the subject of
shareholder suits over similar fraud allegations. White was
not named a defendant in either of the class actions.
GME, which owns no generation facilities, says it will not
purchase power from coal- or nuclear-fired generators. Its
products come from large hydro and gas generators, with
small percentages of renewable energy from landfill gas. Its
California blends claim to be 100% renewable, with the
promise of 25% 'new' renewables for the most expensive
blends.
Securities analysts have been impressed by GME's strategy,
and have been surprised that people would pay more for
green power. In California last year, GME spent $1.1 million
for electricity it sold for $1.5 million, a gross margin of 28%.
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South Asia Needs More Electricity Capacity
About 60% of electricity in the South Asia region is generated
from coal, 19% from hydro, 10% from gas, 6% from oil, and
2% from nuclear, and less than 1% from renewable energy.
By 2020, regional generation will increase 300%, with wind
considered the most promising of the non-hydro renewables,
according to a DoE analysis.
Details: http://www.eia.doe.gov/emeu/cabs/sasia.htmlr/pr99087.htm.htmabstract.html.l
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U-S Senators Launch Alternative to Kyoto Curbs
Political opponents of the Kyoto protocol warn that compliance
with reductions in greenhouse gas emissions would boost U-S
cost for gasoline and electricity by 86% by 2010, and a
number of Senators have introduced legislation to allow
voluntary, market-based programs. Led by Energy Committee
chair Frank Murkowski, the bill would allocate $2 billion to
R+D on GHG control technologies.
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U-S Politicians Want to Stop Emissions Trade
New York lawmakers are drafting legislation to stop local
companies from selling pollution credits in upwind states,
where they could be used to generate emissions that could
cause acid rain in New York. Under the measure, utilities that
sell their federal emissions credits would be fined for the value
of the transaction. In 1997, New York utilities owned 200,000
extra emissions credits because emissions standards in that
state are more strict than federal ones.
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An Opinion
An energy.com feature ('In your opinion') recently asked for
ideas for renewable energy products, and it quotes "an
industry professional" with this idea:
"The air stream (wind) is generated when a car is driven. If
one or several fans are connected to the engine, the wind will
turn the fans and the wind generated power will push the
engine piston. The excessive energy should be kept in a
battery for engine ignition and low wind condition, such as at
low speed driving."
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Energy Tidbits
- Canadian Hydro Developers will provide the Chateau Lake
Louise Hotel with 840,000 kWh of EcoLogo 'green energy'
during 1999 from its run-of-river' site in southwestern Alberta,
one of eight small hydro sites operated by the company.
Canadian Hydro is developing a 12.7 MW project in southern
Alberta with Edmonton's EPCOR Utilities.
- Toronto has commissioned its first PV-powered phone in
High Park, a popular but remote public park in the city.
- Jilin Province in the northeast of China will build the second
phase of the Tongyu windfarm, which will have 30 turbines
and total installed capacity of 18 MW.
- Wobben Windpower has build a 10 MW plant in Brazil,
following its construction of a 5 and 2.5 MW sites.
- Ethiopia's national utility will undertake 27 electric power
projects, including new hydro stations of 184 and 73 MW
capacity. An investment of $150 million is required.
- Real Goods Trading, a California retailer that claims to be
the world's largest seller of renewable energy products
through catalogues and the Internet, is looking for a new CEO
following the resignation of Ron Zell (www.realgoods.com).
- Keystone Energy claims that it has signed more than 7,000
customers to its EarthChoice renewable electricity option.
- Crystalox, a British producer of silicon ingots for PV cells,
has increased its exports due to Japanese subsidies of 30%
for solar installations. The firm is looking at Germany's
interest-free loans for solar systems, but officials say the
driving force for solar is environmental, not price.
- Four agencies will install a 7 kW fuel cell at DoE's
Brookhaven National Lab to evaluate performance.
- The legislature in New Mexico is considering an electricity
restructuring bill that would introduce competition in 2001, and
earmark $20 million a year for renewable energy.
- China will not start any new nuclear projects within the next
three years, say officials of the country's nuclear industry.
When current and new plants are complete by 2006, nuclear
will contribute 3% of China's total power output, much lower
than the world average of 17%.
- Russia will work with western companies to export electric
energy to Europe.
- China will slow construction of new capacity in favour of
enhancing power quality. It will eliminate old power plants
and prohibit construction of some new coal plants, and
emphasize projects that use local equipment.
- Prices for electricity in most western U-S states are rising
because of limited nuclear power, transmission constraints,
and lower hydroelectric generation.
- Canada's crude oil production in February dropped 10.4%
from last year, to 9.1 million m2. Exports (which account for
55.2% of production) fell 19.0% and imports rose 8.8%.
- Canada's production of natural gas was down 2.0% in
February, to 12,522 million cubic metres. Domestic sales
were up 5.5% to 7,053 mcm, and exports continued to rise,
posting a 3.9% gain to 7,179 mcm.
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TRENDS in RENEWABLE ENERGIES is circulated by the
Canadian Association for Renewable Energies. Many sources
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credible; however, CARE is not responsible for content.
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