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SEPTEMBEROCTOBER 2011

RENEWABLE

renewable energy world

GROWTH

GLOBAL STATUS REPORT

volume 14 number 5

FACING THE SUN

BRAZILS SUCCESS STORY

How tracking technology


boosts energy yields

New government policy driving


growth into the next decade

SEPTEMBEROCTOBER 2011 VOLUME 14 NUMBER 5

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SEPTEMBER-OCTOBER 2011 VOLUME 14 NUMBER 5

CONTENTS

THE LAST WORD


Water and renewable energy ........................... 89
New trends are emerging to address water availability issues in
renewable energy project development. While recent
technological and policy developments in the US and
collaborations with arid nations will offer many benefits, each
project will have different goals and present different challenges.
By Jerome Muys and Van Hilderbrand

RENEWABLE

GROWTH

GLOBAL STATUS REPORT

FACING THE SUN

BRAZILS SUCCESS STORY

How tracking technology


boosts energy yields

New government policy driving


growth into the next decade

SEPTEMBEROCTOBER 2011 VOLUME 14 NUMBER 5

REGULARS
From the Editor............................................................. 4
News/Analysis ............................................................... 8
A roundup of news from around the world
Company results....................................................... 86
Diary ................................................................................. 91
Advertisers Index ..................................................... 92

59

FEATURES
The Big Question ......................................... 20
Each edition, REW asks leading players in the industry to give their
verdict on a key issue of the moment. In the Big Question feature
for this edition, we asked readers to give us their predictions for
how the UKs recently announced Renewable Heat Incentive (RHI)
will play out. Will this new policy successfully engage industry
and consumers to develop a major new commercial sector and
provide a key route to achieving the policy goals of new renewable
energy and lower carbon emissions? Will it succeed in
influencing other European nations and those further afield to
implement similar initiatives or, as happened with solar PV, will the
success of this new programme lead to a subsequent revision,
and if so what will the outcomes be for manufacturers, consumers
and the commercial and industrial sectors?
Renewables 2011 Global Status Report ..... 24
A positive constant amid the economic turbulence of the last year
has been the global performance of renewable energy. Renewable
sources have grown to supply an estimated 20% of global final
energy consumption in 2010. We explore the state of the global
renewable energy sector.
By Janet L. Sawin and Eric Martinot
A view from the top .................................... 32
Many heads of government around the world, wondering how they
can play their part in the worlds shift to renewable energy, could be
forgiven for looking enviously at Brazil, where energy from
renewable sources already stood at almost 45% in 2010 and is
forecast to rise to over 46% in 2020. With almost half of its energy
supply generated by renewable sources, we explore what makes
Brazil increasingly look like a positive example to the rest of
the world.
By Robin Yapp

20

47

75
RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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CONTENTS

Facing the sun............................................. 39


The use of tracking technology allowing solar modules to follow
the course of the sun (and so optimise the incident angle of
sunlight on their surface) can increase electricity production by
around a third, and some claim by as much as 45% in some
regions, compared with modules at a fixed angle. We look at the
types of solar tracking technology currently available and the key
players in this important market.
By David Appleyard

32

Transforming profits ................................... 47


Wind farms must be designed to maximise generation available for
sale while minimising operating costs. The weak link in most wind
farm designs is often not the turbine but the transformer. Properly
optimised low-core-loss transformers can boost efficiency
and profits.
By Robert Berman
Down to earth energy ................................. 53
Ground Source Heat Pumps (GSHPs), and their application in
geothermal heat extraction, have matured as a technology in recent years. GSHP is one of the most advanced technologies available for heating, hot water and cooling. Following on from the last
issue, which described some of the latest developments in deep
geothermal extraction in Europe and beyond, we look at this rising
technology on domestic, commercial and industrial levels.
By Chris Webb

Solar thermal barriers and trends .............. 73


The latest figures to emerge reveal that the international solar
thermal industry is still very fragmented. A new analysis of the
global solar market reveals a mixed bag of development, with
some countries surging while others are relatively stagnant in the
face of uncertain support.
By Brbel Epp

The perils of protectionism ........................ 59


A mixture of high oil prices and new environmental legislation
points to renewable energy enjoying a period of unparalleled
worldwide growth over the next 10 years. But, while it is often
well meant, we examine how various forms of protectionism in
fact threaten to halt the industry and prevent it from realising
its potential.
By Richard Baillie

Maintaining offshore growth ...................... 75


While wind turbines attract most of the attention when it comes to
the offshore wind business, operation and maintenance account
for almost as high a percentage of the final cost of electricity.
We explore some of the techniques and technologies being
developed to lower costs in this vital sector.
By Alasdair Cameron

A good time to be green ............................. 67


Never in history have renewables entrepreneurs seen such good
times. But who are they? Where do they come from? And why
are they arriving in a flood at renewable energys front gate? We
profile the creative thinkers and risk takers responsible for the rise
of clean energy ventures over the last decade.
By Elisa Wood

Ripe for renewables ................................... 82


At the current rate of development Malaysias disappearing
fossil fuel resources are projected to be viable only for the next 30
years. However, the countrys potential for renewable energy
generation is substantial. We take a look at the policy, markets,
issues and key players in this rapidly expanding market.
By Tildy Bayar

67

RENEWABLE
ENERGY

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24

73

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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REW.hotims.com

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FROM THE EDITOR

Group Publisher Ralph Boon


Chief Editor David Appleyard
Acting Assistant Editor Tildy Bayar
Consulting Editor Jackie Jones
Production Editor Piers Evans
Design/Production Shyam Gosai
Production Manager Kimberlee Smith
Production Controller Rebecca Crews
Sales Managers Peter Andersen, Natasha Cole,
Dan Harper, Kate Hart, Ekow Monney, Sandra
Spencer
Digital Sales Manager Leo Wolfert
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information can be found at
www.RenewableEnergyWorld.com
Advertising: For information on advertising in
future issues of the magazine, please contact:
Ekow Monney on
+44 20 8679 5945 (direct), or
Sandra Spencer on
+44 1992 656 664 (direct), or
Peter Andersen on
+1 603 924 4405 ext 204, or
Dan Harper on
+1 603 924 4405 ext 211
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All rights reserved. No part of this publication may
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While every attempt is made to ensure the
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Opinions expressed in this publication are not
necessarily those of the Publishers or Editor.
SUBSCRIPTIONS: Renewable Energy World is
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Renewable Energy World is published six times
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The Water Tower, Gunpowder Mills, Powdermill
Lane, Waltham Abbey, Essex EN9 1BN, UK, and
distributed in the USA SPP at 75 Aberdeen Road,
Emigsville, PA 17318-043. Periodicals Postage
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eturning from a domestic errand, I was heartened to stumble across a


commercial photovoltaic installation under construction on a sizable patch
of what had previously been arable land. This 4.5 MW plant is to feed power
to the grid and will no doubt operate successfully for 20 or more years, enjoying
decades of the sunshine that once ripened the wheat of previous generations.
It will also perhaps be one of the last to benefit from the governments generous PV
feed-in tariff, now withdrawn for installations above 50 kW. Whether this means an
end to commercial-scale PV development in the UK remains to be seen, but there
can be little doubt that confidence in the sector has been affected. And with solar
having little more than a tenuous grip on the UK energy marketplace, hopes that
PV will make a big impact in the short term have clearly been dented. In the UK
and in many other similarly affected countries, whether this will in fact emerge as a
knockout blow in the longer term depends more than ever on industry passing on
falling costs to consumers and pushing the long-term cost-of-ownership envelope
to below that of conventional energy. Its a tall order even for a relatively mature
technology like PV. Without support, that challenge becomes harder still.
While the aftershocks of this decision are still being very much felt, the UK is
pioneering a new form of feed-in tariff with its Renewable Heat Incentive. This
commendable initiative represents an exciting development that could ultimately
spearhead a new wave of renewable heating policy directives. With support for these
important forms of renewable energy, a new route to a low carbon infrastructure
has opened up. And, after all, some 40% of Europes energy consumption is spent
on space and water heating. But perhaps there are also dangers lurking if, say, the
policy becomes too successful for its own good and, like the PV sector, is again
throttled back just as momentum gathers. We hear more of this debate, and see a
few future scenarios for this novel programme, in our latest Big Question feature,
starting on page 20.
Placing this debate in context and providing a comprehensive overview of
the renewables sector we present our regular snapshot of the REN-21 Global
Status Report and its analysis of the global market for each key renewable energy
technology. In a more detailed look at some of the major renewable technologies, we
have the second article of our two-part geothermal series with an insight into heat
pumps, while on page 39, our Key Players feature reviews the movers and shakers in
the solar tracking sector which, alongside its efficiency advantages, is attracting ever
more interest as CPV technologies become fully commercial.
As always, we also feature policy and market coverage and in this edition, alongside
our regular company results pages, we report on the sometimes far from benign
influence of market protectionist policies. And we can perhaps hope to pick up some
tips as we hear words of wisdom from those entrepreneurs who have made a roaring
success of the renewables industry.
It may well be that the modest 4.5 MW PV installation under construction in rural
Lincolnshire turns out to be the last of its breed, but it is nonetheless extremely hard
to believe that it will be the last of its kind.
PS: For even more in-depth coverage of the key renewable energy markets dont
forget to look out for our two new supplements, as we also present the latest
editions of Large Scale Solar and Wind Technology.

POSTMASTER: send address changes to


Renewable Energy World c/o P.O. Box 437
Emigsville, PA. 17318.
Reprints: High-quality reprints of any article from
this publication are available. These can be tailored
to your requirements to include a printed cover,
logo, advertising or other messages. Minimum
order quantity 50. Please contact the Publishers
for details.
Printed: in the UK by Williams Press Ltd
on elemental chlorine-free paper from
sustainable forests.

David Appleyard
Chief Editor

Member, BPA Worldwide

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ADVERTISING FEATURE: EWEA OFFSHORE 2011

WORLDS LARGEST
OFFSHORE WIND
ENERGY EVENT
COMES TO THE NETHERLANDS

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ADVERTISING FEATURE: EWEA OFFSHORE 2011

With a programme of 24 conference sessions covering


all aspects of the offshore wind industry, EWEA
OFFSHORE 2011 is not to be missed!

ate this November, the city of Amsterdam known for its


waterways will host EWEAs OFFSHORE 2011 event,
presenting the latest news and views on water-based wind energy
technology. The conference will cover all relevant aspects from the
financial to the political and scientific, and will be complemented
by an exhibition featuring hundreds of companies involved in the
offshore wind industry.
Chairing the conference is Ian Marchant, chief executive officer
of Scottish and Southern Energy (SSE). He says, Electricity from
offshore wind farms can and should play a key part in meeting
Europes energy needs over the next decade. There are many
challenges such as safety, technology and cost. EWEA OFFSHORE
2011 provides an excellent forum in which to consider these
challenges and help ensure they are met so that offshore wind farms
become a sustainable energy source in every sense.
In the next few decades offshore wind energy is expected to
assume a dominant role in Europes energy portfolio. As of 30 June
there are 1247 offshore wind turbines fully grid-connected, with a
total capacity of 3294 MW generated by 49 wind farms
spread between nine European countries.
EWEA estimates that by 2030 there will be 150
GW of offshore wind power providing 14% of
the EUs electricity demand.
By 2025, offshore capacity is expected
to exceed the 2010 capacity of onshore wind,
and is projected to exceed onshore capacity
beyond 2030.
To ensure that the sector realises its potential,
governments and the EU must implement a
progressive and stable policy framework which
includes a binding 2030 renewable energy target,
implementation of a single electricity market and
actions to ensure the construction of an offshore grid.
In addition, EWEA has long called for governments to
facilitate R&D investment to enable the technology to
achieve the same cost reductions as onshore wind.
The EWEA OFFSHORE 2011 event will run from
29 November to 1 December. Attendees will hear
experts discuss logistics, grids and infrastructure,
business and policy practices, the latest technological
innovation, the importance of bringing down the cost
of offshore generation, forecasting, the next generation
of wind farms and demonstration sites. EWEA will also
launch its new offshore report at the event.
7500 participants including the leading companies
in offshore wind and offshore-related industries are
expected at the worlds largest offshore wind energy event,
which will feature 24 conference sessions and an exhibition
venue of 8,000m2 three times larger than OFFSHORE 2009 in
Stockholm. Nearly every company with an interest in the offshore
sector will be there over 300 in total, from 25 different countries.
On the conference side of the event, sessions are organised
around themes to cover all of the issues affecting the industry:

resource assessment, grids, hardware, logistics, lessons learned


and financing. Side events will focus on investment opportunities in
large offshore wind markets.
The opening session will include leading political and industry
figures who will discuss whether the European offshore wind industry
will replicate the success of onshore wind technology in terms of
market deployment, cost-competitiveness and technology maturity.
Through keynote speeches and a moderated debate, speakers will
consider the industrys prospects for growth and discuss which
facilitators are needed from governments, the EU, the industry itself
and the financial sector.
The programme will also feature a technology panel, which
will continue discussion of the questions raised in the opening
session. Respected technical experts will consider the role of
different technologies in the success of offshore wind power. The
conversation will focus on a major issue for the offshore industry:
the use of direct drive technology vs gearboxes, and the bearing this
choice has upon turbine weight, cost and maintenance.
For unbiased information and to get a full picture of the
advances in virtually all aspects of offshore wind energy technology
and market dynamics, this conference is an absolute must. The
programme committee has done its utmost to organise coherent,
well-structured sessions and to select presentations showcasing
cutting edge know-how. said Jos Beurskens, ECN Wind Energy,
lead session chair of Next generation of demonstration sites.
For those new to the wind industry who would like an overview
of the sector prior to the conference, EWEA -- building on its
Wind Energy The Facts publication, widely considered to be the
most authoritative reference to date -- will offer an introduction
to wind energy on 28 November, with a particular focus on the
offshore sector.
And lets not forget the many social events and opportunities to
network, including a conference reception at the Amsterdam Stock
Exchange building an apt location for the exchange of business
know-how and contact details and the conference gala dinner.
This years venue for the dinner, the national maritime museum (Het
Scheepvaartmuseum), is one of Amsterdams biggest 17th century
buildings, a storehouse for the Dutch war fleet dating from 1656.
For further information, please visit: www.ewea.org/
__________
offshore2011
________

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NEWS ANALYSIS

WIND ENERGY MARKETS

SOLID OFFSHORE GROWTH

cenarios
for
onshore
and offshore wind power
deployment in the EU have
been published by trade group the
European Wind Energy Association
(EWEA) ahead of next years
European Commission Energy
Roadmap 2050.
Wind energy will more than
triple its power output by 2020 with
194 billion invested in European
onshore and offshore wind farms
in this decade, said Justin Wilkes,
policy director of EWEA. This
success is mainly driven by a strong
EU regulatory framework to 2020,
which we need also after 2020.
Electricity production from wind
power is expected to increase
from 182 TWh or 5.5% of total EU
demand in 2010, to 581 TWh or
15.7% of total demand in 2020.
By 2020, said EWEA, electricity
production from wind will be
equivalent to the total electricity
consumption of all households in
France, Germany, Poland, Spain
and the UK combined.
By 2030, 1154 TWh (28% of
total demand) is projected to be
produced by wind, more than
the EUs predicted 241 million
private households are expected
to consume in 2030, according to
EWEA forecasts, an increase of a
factor of five on todays figures.

SOLID OFFSHORE GROWTH


EWEA has also published its
offshore wind energy statistics
for the first half of 2011, showing
a comfortable 4.5% increase in
installations of offshore capacity
compared with the first half of 2010.
The sector is coming out of the
financial crisis but is still facing a
potential worsening of the general
economic crisis. The number
of banks providing capital for
offshore wind farm investments is
steadily growing, although there
is a continued need for attracting
an increasing number of large
institutional investors to offshore
wind farms presently the largest
construction projects going on in
Europe, said Christian Kjaer, chief
executive officer of EWEA.
Several wind farms in Germany
and the UK will reach financial close
in 2011, and EWEA says financial

RENEWABLE
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By 2020, electricity production from wind energy will be 581 TWh or 15.7% of total demand in the
European Union, EWEA believes. By 2030, 1154 TWh or 28% of total demand is projected
EWEA

institutions will provide a record


amount of financing to the sector
at over 3 billion. Between three
and five transactions are expected
to close during the course of the
year. Equity financing, including
divestment of stakes in existing
projects in order to initiate new
ones, highlights new approaches
to financing among developers and
power companies following the
financial crisis, the group adds.
In the first six months of 2011,
101 new offshore wind turbines
totalling 348.1 MW were connected
to the power grids of the UK,
Germany and Norway. Offshore
wind farms worth some 8.5 billion
are currently under construction in
European waters. Once completed,
they will represent a total installed
capacity of 2844 MW. In Europe,
as of June 2011, there were 1247
offshore wind turbines fully grid
connected with a total capacity of
3294 MW in 49 wind farms spread
over nine countries.
During the first half of 2011,
average wind turbine capacity
increased to 3.4 MW, as opposed
to 2.9 MW last year a growth
achieved with seven fewer turbines
than in the same period last year.
This is a result of the move towards
deploying larger machines offshore.
This trend is expected to continue
considering the new wind turbine
announcements that have been
made in recent months, said EWEA.
Three
manufacturers
had
offshore wind turbines gridconnected during the first quarter
of 2011. Siemens dominated the
rankings with an 84% market share,
followed by BARD with 16%. The
SWAY 15 kW floating turbine was

installed in Bergen to serve as a


prototype aiming ultimately at the
development of the 10 MW SWAY
floating wind turbine. In addition,
REpower turbines were erected,
but not fully grid-connected during
the first six months of the year.
Financing activity in the offshore
wind farm sector is picking up
following the major transactions
signed in late 2010, including the
debt financings on a non-recourse
basis for C Power (Belgium,
325 MW) and Borkum West 2
(Germany, 200 MW), and the sale
of a minority stake in the 375 MW
Walney site in the UK. While no
debt transactions have been closed
in the first half of 2011, several
projects formally approached the
banking market during that period
and should close in the very near
future, EWEA says. The projects
expected to be financed in 2011
include several wind farms in
Germany such as Globaltech 1
(400 MW), Meerwind (288 MW) and
Baltic 1, and in the UK such as Lincs
(270 MW), and Masdars 20% stake
in the London Array (126 MW).
After the early transactions which
took place mainly in the Benelux
countries, the debt market is now
moving to the countries most active
in offshore wind development.

POSITIVE TRENDS
EWEA noted several positive trends
with respect to these transactions
and the overall market:
The number of banks willing
to take offshore wind risk is
steadily growing more than 20
institutions have now obtained
firm credit committee approval;

The recently unveiled KfW


programme for offshore wind,
which will provide up to 5 billion
to 10 projects in Germany, is a
major step towards ensuring the
development of non-recourse
financing in that country. Two
transactions expected to close
shortly
(Globaltech
1
and
Meerwind) have tapped into the
programme and will demonstrate
its capacity to provide both
volume and cheaper funding to
the sector;
Danish export credit agency EKF
and the European Investment
Bank (EIB) continue to support
transactions; the arrival of
new banks and of KfW is
slowly allowing EKF and the
EIB to reduce their volume of
new commitments, but their
participation in new financing is
still seen as positive by investors
and commercial lenders alike; and
The UKs Green Investment
Bank, announced in May, should
provide
additional
financing
capacity to the industry once it is
up and running.
Non-recourse lending is also
now becoming a large contributor,
and could provide a significant
portion of funding for nearly 50%
of the capacity under construction
by the end of the year, EWEA says.
While no two projects are alike,
EWEA argues that the key lesson
this year is that projects which
want to find debt finance can
do so if they do their homework,
fulfilling the increasingly consistent
requirements of the banks.

Tildy Bayar

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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NEWS ANALYSIS

GRID TECHNOLOGY

HVDC STEALING A MARCH

ews that power and


technology group ABB
has won an order worth
around US$1 billion to supply a
High Voltage DC (HVDC) power link
connecting offshore North Sea wind
farms to Germanys mainland grid is
clear evidence that the technology
has now emerged as a strong
component in the development of
both on- and offshore wind power.
HVDC
significantly
reduces
transmission losses and is widely
considered to be the only viable
solution for economical, low-loss
transmission of power via cable
longer than around 80 km, as with
longer AC cables a significant
proportion of the electrical energy
transmitted is lost due to reactive
power requirements.
This latest contract, which
ABB says is the largest power
transmission order in its history, will
deploy what it says is the worlds
largest offshore HVDC system, at
more than 900 MW and 320 kV. The
contract is on behalf of the DutchGerman
transmission
system
operator TenneT.
ABB emphasises the key
advantage of the technology, saying
that electrical losses will amount
to less than 1% per converter
station from the 400 MW Gode
Wind II, and other wind farms, to an
offshore HVDC converter station,
which will be used to transmit DC
electricity to the onshore HVDC
station at Drpen on the German
coast via 135 km of underwater and
underground cables. The Drpen
station will feed power to the grid.
Scheduled to be operational
in 2015, under the terms of the
contract ABB will design, engineer,
supply and install the offshore
platform, the offshore and onshore
converter stations and both the
land and sea cable systems.
Offshore wind power is emerging
as a major source of large-scale
renewable energy in Europe to
help meet emission targets and
lower environmental impact, said
Peter Leupp, head of ABBs Power
Systems division, adding that the
company has invested significantly
in these technologies.
The company further claims that
its HVDC Light technology offers

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High Voltage Direct Current has emerged as a strong


component in the development of offshore wind power
ABB

ABB says that electrical losses will amount


to less than 1% per converter station
from the 400 MW Gode Wind II and others
environmental benefits, such as
neutral electromagnetic fields and
compact converter stations.
This is the third recent offshore
wind connection order for ABB in
Germany, following the 800 MW
Dolwin 1 link awarded last year and
previously the BorWin 1 project.
In February ABB also won
a US$180 million order from
utilities Statnett of Norway and
Energinet.dk of Denmark to
supply an HVDC Light solution to
support the interconnection of the
Norwegian and Danish power grids.
The 500 kV underwater link is a
new record in transmission voltage
using this technology, the company
claims, and will boost transmission
capacity between the mainly
hydroelectric-based
Norwegian
system and the wind and thermal

power-based Danish system. It will


enable both networks to add more
renewable energy to their energy
mix, and to use electricity more
efficiently, ABB says.
It will design, supply and
commission two 700 MW converter
stations located at either end of the
240 km-long interconnector, and
will be situated at the same site as
the existing converter stations for
Skagerrak 13 previously supplied
by the company, in Kristiansand,
Norway and Tjele, Denmark.
The bipolar link, scheduled for
commissioning in 2014, will be
operated with the Skagerrak 3
transmission system.
Commenting on the technology,
Leupp said: It will also reduce
the impact of power system
disturbances and contribute to the

stability and reliability of the grids.


The higher voltage level will also
help minimise transmission losses.
Leupp
continued
on
the
technology, adding: It will also
reduce the impact of power system
disturbances and contribute to the
stability and reliability of the grids.
The higher voltage level will also
help minimise transmission losses.
Other recent orders for largescale ABB HVDC systems include
a $700 million order for a 325 kV
HVDC Light power transmission
link connecting three offshore
wind farms in the North Sea to the
German power grid.
While ABB is one of the leading
proponents of HVDC technology,
it is far from the only game in town
with other energy engineering
majors having developed their
own solutions.
Germanys
Siemens,
for
example, has also revealed a
series of recent contracts based
on its HVDC systems in support
renewable energy installations.

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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NEWS ANALYSIS

For instance in August, and


working
in
consortium
with
the Italian cable manufacturer
Prysmian, Siemens Energy said it
was erecting HelWin 2, the HVDC
link between the North Sea offshore
windfarm Amrumbank West and the
onshore grid. Again the customer is
TenneT TSO GmbH and the order is
worth approximately 600 million to
the consortium.
Prysmian
will
provide
complete supply, installation and
commissioning of the submarine
and land cable connections as part
of a larger contract, while Siemens
will deliver the Voltage Sourced
Converter (VSC) system, rated at
690 MW. The turnkey connection
will link the offshore wind park
Amrumbank West, located about
55 km offshore in the North Sea, to
the mainland.
The link is scheduled to
be operational by 2015, gridconnecting the 300-400 MW
Amrumbank West wind farm
project, which is to be located
about 35 km north of Helgoland,
and 37 km west of the North Frisian
island of Amrum.
Power will be transmitted at
320 kV via a submarine high-voltage
cable from the feed-in point on the
platform to the grid connection
point in Bttel, northwest of the city
of Hamburg, over 130 km away.
Together with the Meerwind
and North Sea East offshore wind
farms, Amrumbank West is part
of the North Sea cluster HelWin.
Central to the HelWin 2 link is the
offshore converter platform HelWin
beta, on which the Siemens HVDC
Plus system is installed. Siemens is
responsible for the turnkey supply
of the fully equipped floating and
self-erecting platform.
TenneTs
German
group
Transpower, which it acquired in
2009, has now ordered its third
offshore grid connection from the
Siemens Energy and Prysmian
Powerlink group. The HVDC
connection BorWin2 has a design
capacity of 800 MW will connect
the wind farms Global Tech 1
and Veja Mate to the onshore
transmission grid.
Together with the additional
services
separate
from
the
contract with Siemens/Prysmian,
Transpowers
investment
for
BorWin2 will be worth around
800 million.
Completion
of
the
grid
connection,
stretching
some
200 km to a substation in Diele,
close to Papenburg, is planned for
spring 2013. The substation for the

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RENEWABLE
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first HVDC offshore connection,


the 400 million, 400 MW project
BorWin1 which was completed in
2009, is also located in Diele.
In a related development,
Siemens Energy recently extended
its transformer production location
in Guangzhou, China by setting up
a new facility for the production
of 800 kV converter transformers
intended to serve the future needs
of the Chinese market and the
wider Asia-Pacific region.
In
addition
to
HVDC
transformers, power transformers
with ratings up to 1400 MVA will
also be produced at the new facility.
With our new facility were not only
extending our global network of
HVDC transformer factories and
expanding our product portfolio in
Asia. Through the local production
of HVDC transformers were also
enhancing our competitiveness in
the field of HVDC transmission in
China, said Jrgen Vinkenflgel,
chief executive officer of the
Transformers Business Unit of
Siemens Energy.

with a transmission capacity of


twin 3200 MW systems. For this
project Siemens, again together
with Chinese partners, will supply
the converter valves for the sending
station in Zhaotong, near the
Xiluodu hydro power plant in the
Yunnan/Sichuan region, and for
the receiving station in Conghua of
Guangdong province, a distance of
1286 km.
In late December 2009, Siemens
and China Southern Power Grid put
into operation the first pole of an
HVDC system with a transmission
capacity 5 GW and covering a
distance of over 1400 kilometers.
And, in April, together with the
operating
company
BritNed
Development
Ltd.,
Siemens
commissioned the 260 km BritNed
HVDC transmission link between
the UK and the Netherlands. BritNed
itself a joint venture of National
Grid and TenneT operates the link
which has a transmission capacity
of 1000 MW at 400 kV.
As with the ABB development
in Norway/Denmark, late last year

The demand for HVDC products is rapidly


moving beyond the traditional role
slotted for high-voltage submarine cables
And backing this up, Siemens
says it is to supply key components
for two HVDC transmission projects

Nuozhadu-Guangdong
and
Xiluodu-Guangdong in southern
China. The purchaser is China
Southern Power Grid Co.
Nuozhadu-Guangdong will have
a transmission capacity of 5 GW at
a voltage of 800 kV, while XiluoduGuangdong is to have an overall
capacity of 6.4 GW at 500 kV,
Siemens says. The total order value
for the company is approximately
250 million and commissioning of
the systems is scheduled for 2013.
Large-capacity
hydroelectric
plants such as Nuozhadu and the
12.6 GW Xiluodo in southwest
China will use the low-loss
transmission provided by the
new links to bring energy to the
megacities Guangzhou, Jiangmen,
Dongguan and Shenzhen.
For the Nuozhadu-Guangdong
800 kV HVDC bipole system,
Siemens, together with its Chinese
partners, will supply the converter
valves both for the sending station
in Puer in the province of Yunnan
and for the receiving station in
Jiangmen, Guangdong Province, a
distance of 1451 km.
The Xiluodu-Guangdong project
is a double 500 kV bipole system

Siemens also secured a contract


for its HVDC systems which
exploits another key advantage
of the technology in that it allows
asynchronous grids to effectively
phase frequencies.
The
company
is
building
converter stations in Pssi, Estonia,
and Anttila, Finland, for a new
transmission link between the
two nations. EstLink 2 will have a
transmission capacity of 650 MW
at 450 kV and will comprise 14 km
of overhead, a 145 km submarine
cable across the Gulf of Finland,
and a 12 km buried cable. The
development will increase the
capacity for transmission between
the Baltic and Nordic countries
from 350 MW to 1000 MW, making
the power supply more reliable
for the Fingrid utility based in
Helsinki and the Estonian power
network operator Elering, based
in Tallinn.
Partially funded by the EU,
the contract is worth some
320 million, with Siemens share
about 100 million of that. The
converter stations are planned to
go into operation early in 2014.
Taking the grid integration idea
just one step further comes the Tres
Amigas SuperStation project in
New Mexico, US. Once completed

this transmission hub will ultimately


interconnect
Americas
three
primary electricity grids, the
Eastern (Southwest Power Pool),
Western
(Western
Electricity
Coordinating Council) and Texas
(Electric Reliability Council of
Texas) networks.
In April Alstom Grid announced
a contract worth approximately
150 million by Tres Amigas LLC for
HVDC converters and automation
technology as well as high
availability system maintenance
services for the first stage of
the project.
Under the contract, Alstom
Grid will supply a 750 MW,
345 kV converter scheme utilising
its Voltage Source Converter
(VSC) technology.
With a clutch of the major players
offering commercial HVDC systems
it is perhaps of little surprise that
a new report from Pike Reaserch
concludes: The demand for these
products is rapidly moving beyond
the traditional role slotted for
high-voltage submarine cables,
connecting islands to nearby
national grids. The usage of highvoltage submarine cables for grid
interconnections and connecting
offshore wind farms to nearby
landmasses is on the rise.
However, the report, HVDC
and HVAC Submarine Power
Cables:
Supply
Constraints,
Demand
Drivers,
Technology
Issues, Prominent Projects, Key
Industry Players, and Global
Market Forecasts also issues a
warning. It suggests that with
only a handful of manufacturers
capable of producing and installing
such systems, and indications of
a limited supply chain for cables,
capacity constraints could become
an issue, particularly in light of the
increased demand that offshore
renewable energy production and
grid interconnection will place on
the market.
The report concludes: The
constraints on the supply chain
dont stop with the manufacturers.
The site engineering companies
and cable-laying ships required
are highly specialised and also
in limited supply. As countries
all over the world experience an
increased need for advanced
grid connections and renewable
power, cable manufacturers will
need to significantly increase their
production capabilities to keep up
with the steady demand growth in
the years ahead.

David Appleyard

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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NEWS ANALYSIS

BIOFUELS MARKETS: US

US PLAN FOR FUEL, NOT FOOD

recent feature story in UK


newspaper The Guardian
reported that the financial
crisis in the US and the
countrys pressing need to cut its
federal budget by US$1.3 trillion
had combined to spur lawmakers
to reevaluate three decades of corn
ethanol subsidies.
A significant factor in this
equation was the global food
crisis, which has illuminated
the consequences of biofuel
production rising food prices as
farmland is converted to produce
biofuels and created a public
backlash against biofuels.
The Senate had already voted
overwhelmingly in June to end the
tax credits and trade protection
that benefit the ethanol industry. In
its story The Guardian reported that
Congress was also expected to end
$6 billion in subsidies to the ethanol
industry as part of its recent debt
ceiling negotiations.
Federal pro-ethanol policies,
including subsidies, helped to
grow US ethanol production to
13.3 billion US gallons (50 billion
litres) in 2010, up from 1.6 billion
gallons (6 billion litres) 10 years
before. These subsidies had flowed
to oil companies whose products
are partly constituted from ethanol.
The industry had planned to
redirect parts of the funds toward
petrol station refits, enabling the
stations to use more ethanol,
under a Senate deal made last
July. But the drastic budget cuts
required by the debt deal resulted
in a Senate vote blocking federal
money from paying for special
ethanol-blending pumps.
The Omaha, Nebraska-based
World-Herald
newspaper
also
reported on the ethanol industrys
preparation for life after federal
subsidies. The paper wrote that
there seemed to be no political
will to extend the $6 billion per
year in subsidies. Although there
had been one proposal to extend
existing tax credits that support
cellulosic (non-corn based) ethanol,
Congress had left Washington for
its summer recess without acting

14

RENEWABLE
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on it, which means its not going


to happen, according to several
US senators and ethanol industry
representatives.
The ethanol industry, speculated
the World-Herald, would now be
forced to think of new ways to
market their fuel, as it would no
longer be cheaper than regular
petrol (which was its major selling
point for US consumers), and to
seek other means of acquiring
government support that would
be more politically palatable in
other words, that would no longer
resemble subsidies.
Many ethanol plants located
close to corn supplies, such as
those in the corn-belt states of
Iowa and Nebraska, were forecast
to remain economically viable and,
argues the World-Herald, would
be able to continue production in
a post-subsidy environment. Iowa
is projected to use 58% of its corn
crop for ethanol in 2011, and some
Iowa farmers may sell up to 70% of
their crops for ethanol production.
However, more marginal plants
in states without abundant corn
supplies could be driven out of
business, according to Monte
Shaw, executive director of the
Iowa Renewable Fuels Association.
In all of these events public
opinion cannot be underestimated.
Environmental groups and foodfocused charities have mounted
powerful campaigns to raise
awareness of the contributions
to the current world food crisis of
biofuel production processes and,
especially, land use, and these
campaigns have made significant
headway in terms of turning
public opinion against corn-based
fuels. The results of this turn may
perhaps be seen most clearly in
the Senate vote to cut subsidies,
which garnered broad bipartisan
support. It was noteworthy that
33 Republican Senators (with 40
Democrats) voted for the cuts.

HOWEVER...
In mid-August the US Department
of Agriculture announced that
the Obama administration will

New US projects will involve biofuel production from wood


chips and the inedible parts of plants, rather than from corn.
EQUITY ENERGY RESOURCES

implement a $510 million initiative


to boost the production of nextgeneration biofuels. The plan, jointly
sponsored by the Departments
of Energy and Agriculture and the
Navy, will support a public-private
partnership in which companies
will be invited to bid on new biofuel
projects and the government will
match their investment.
The new projects will involve
biofuel production from wood chips
and the inedible parts of plants,
rather than from corn. The Obama
administration is presenting the
plan as a new route to US energy
independence which avoids the
food-or-fuel controversy associated
with corn-based ethanol, and as the
basis for a new industry based in
rural areas of the country which will
form part of the governments jobcreation programme. In addition
to building new biofuel plants, the
initiative will fund the retrofitting of
existing corn-based plants.
The new proposals will support
development of a new, ruralfocused industry that will replace
imported crude oil with secure,
renewable fuels made here in
the US, said energy secretary
Steven Chu.
The participation of the Navy is
due to the initiatives focus on the
production of advanced dropin aviation and marine biofuels
chemical copies of their fossil

fuel counterparts which will


power military and commercial
transportation. Because these
biofuels
possess
the
same
characteristics
as
petroleumbased fuels, asserts the Renewable
Energy Institute, it is not necessary
to modify pipelines, other fuel or
transportation infrastructure, or
engines in order to use it.
In order to accelerate the
production of bio-based jet
and diesel fuel for military and
commercial purposes, secretary of
agriculture Tom Vilsack, Chu and
secretary of the Navy Ray Mabus
have developed a plan to jointly
construct or retrofit several dropin biofuel plants and refineries.
For the military, over-dependence
on imported oil can mean real
vulnerabilities, said Vilsack. The
Navys preoccupation with security
dovetails with national attitudes
about dependence on foreign
oil and the pressing need for job
creation at home.
It would seem, then, that
rumours of the demise of the
US biofuels industry have been
greatly exaggerated. An end to
subsidies may perhaps signal an
end but, depending on how the
governments new initiative plays
out, the industry may also turn out
to be reborn.

Tildy Bayar

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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_______________

NEWS ANALYSIS

Smart grids allow for more efficient monitoring, control


and adjustment of power distribution.
MAPAWATT

SMART GRID REVOLUTION

GRIDS GET A
BIT SMARTER
___________

elecom giant Alcatel-Lucent,


headquartered in France,
has announced that it is
teaming up with Chinas State Grid
Information & Telecommunication
Company Ltd (SGIT) to help utilities
manage peak electricity demand,
identify opportunities for power
savings and cut down on energy
usage. The two companies plan to
do this by increasing the intelligence
in utilities power distribution
systems, or smart grids, which
allow the continuous measurement,
monitoring, control and adjustment
of power distribution.
Alcatel-Lucent and SGIT, a
subsidiary of State Grid Corporation
of China, will address some of the
challenges related to smart grids,
accessing data used to track energy
usage from a plethora of devices
including smart meters, analysing
that data and delivering information
to the utility. This information can
then be used by utility companies
to monitor and control demand and
manage delivery.

These solutions will also provide


the customers of utility companies
with access to more reliable power
distribution systems as well as
information on their own power
usage, allowing them to make
educated decisions about their
power consumption, for example
changing their normal usage
patterns to take advantage of lower
pricing structures at off-peak times.
Meanwhile,
the
Gridwise
Alliance, a US coalition advocating
the transformation of the electricity
system, has released The US
Smart Grid Revolution: Smart
Grid Workforce Trends 2011, a
new report that examines how
the continued development and
deployment of smart grids impacts
on the electric energy industry
workforce. The report, prepared
by global consulting, testing and
certification firm KEMA, stresses the
important role education initiatives
play in maximising improvements
for all those connected to the
electric system.

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__________
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NEWS ANALYSIS

their efforts and equip their employees with


new skills needed to achieve success with the
transformed grid, he added.
As an example, Vivint, one of the largest US
home automation companies, recently opened
the first US smart grid training centre of its kind,
designed to prepare technicians for full-scale
deployment, including the installation of home
area network (HAN) and load control devices,
electric vehicle (EV) chargers and much more.
The 10,000 square foot (3048 m2) facility,
located in Austin, Texas, also houses two fully
equipped model smart homes outfitted with
Vivints energy technologies. The companys
Vivint Smart Grid Solutions arm provides smart

meter installation services for electric, gas and


water automated meter reading and advanced
meter infrastructure projects.
The future of the smart grid continues to be
very strong, says the KEMA report, noting that
investment continues to flow into businesses
active in the smart grid sector, driving innovation,
job creation and significant change.
Indeed, according to Microsofts 2011
Industry Survey, utilities are already moving from
the planning to the deployment stage of smart
grids, and budgets to support these efforts are
consequently on the rise.

Tildy Bayar

SOLGLIDE LONG-LIFE BEARINGS


SUPERIOR PERFORMANCE IN
SOLAR TRACKING ASSEMBLIES

In its key findings, KEMA discovered that


continuous investment in the smart grid sector
has expanded opportunities across the entire
electric energy industry. This is crucial as job
creation and the development of an industry
native to the US are national priorities. The report
also concludes that the smart grid continues to
be a primary example of a technological area that
is ripe with opportunity and ready for continued
innovation and creativity. In order to maximise its
potential for economic growth, the report says,
the US must retrain current employees in the
new, higher-level skills required to modernise the
transmission and distribution grid.
The report emphasised that a successful
organisational transition to the smart grid
and smart grid job creation and growth must
include retraining programmes, engineering and
technical curricula, efforts to familiarise workers
with smart grid technology and systems, and
educating current students who will be the smart
grid workforce of tomorrow.
In the utilities sector, the shifting requirements
of existing jobs makes retraining the workforce
a signficant priority, particularly for those utilities
that are in the process of deploying smart grid
solutions. While new jobs are being created, this
retraining effort to enable current employees
within the utility smart grid workforce to adapt
and take on new roles is particularly active.
This report takes the industrys first
comprehensive look at not only how the
expansion of the smart grid will strengthen the
American economy but also the critical steps
America must take to ensure its workforce is
prepared to maximise this new technology,
said GridWise Alliance Board liaison for the
Education and Workforce Group, Randy Berry.
All levels of the electrical energy industry chain
can learn from this report on how best to reform

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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________
RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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2011 PV FORECAST

GROWING MARKET DEMAND

espite a very weak start


to the year, IMS Research
has recently increased its
photovoltaics (PV) forecast for
the full year by more than 1 GW
and predicts that more than 22
GW of new PV capacity will be
added in 2011. The research firm
cited growing demand in all major
markets, notably in Asia and the
Americas, as well as a pick-up in
the sluggish German market, and
projects that installations in the
second half will be nearly double
that seen in the first six months.

A STRONG SECOND HALF


IMS Researchs latest Global
PV
Demand
report,
which
analyses installations rather than
registrations or connections in
more than 60 downstream markets,

predicts that despite weak first and


second quarters, demand will grow
rapidly in the second half of 2011
due to rapidly falling module prices,
incoming incentives in new markets
and planned end of year cuts in
existing markets.
Senior research director for PV
Ash Sharma commented, Although
installations grew just 13% in Q2
from Q1 the results of our latest
report show that there will be a
huge surge in installations in the
second half of the year. Several
mid-sized markets like the USA are
growing massively whilst markets
like Germany and Italy are starting
to pick up too.

EUROPE FLAT IN 2011


According to the new report,
several
European
markets,

including Germany, are predicted


to see a major slowdown or even
a fall in 2011. (For more on recent
developments in Germany, see
page 17 of our Large Scale Solar
supplement.) However, Europe
overall will be only 1% down
this year due to geographic
diversification, with high demand
coming from a number of new
countries such as Slovakia and
the UK. The report revealed that
11 countries in Europe will install
at least 100 MW this year, with 20
countries globally installing this
amount or more up from just 13
the previous year. This increasing
diversity in the market is helping
to support demand and provide
stability to a market that was
once dependent for growth on
just one or two countries.

Wind farm production


Wind farm production
Wind farm efficiency
Power production of WTGs
Wind atlas generation

CHINA IS KEY
One significant factor in IMS
Researchs increased forecast is
the recently introduced national
feed-in tariff (FiT) in China, which
was revealed by the National
Development
and
Reform
Commission (NDRC) in August.
This FiT pays a premium for
installations completed this year,
but continues past the end of
the year and is in addition to the
countrys Golden Sun scheme. We
earlier predicted the introduction of
a PV FiT in China once prices had
fallen to an acceptable level and
were forecasting installations of
1.3 GW this year and more than 2
GW in 2012, commented Sharma.
In the longer term, IMS projects that
China will become a key player for
PV and not just for production,

WAsP 10.1
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Power production calculations
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Wind atlas generation
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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________
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RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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with the country becoming one of


the top three markets in 2015.

TOP 10 MARKETS IN 2011


IMS Research has also updated
and released its top 10 markets
for 2011, and reveals that although
Europe still dominates the global
PV market, only four of the 10 most
important markets in 2011 will
be European, with Asian markets
ranking prominently. At the same
time, its important to remember
that Europe will still account for
close to 70% of global installations
this year and in fact the next five
largest markets are all European,
added Sharma.

THE RANKINGS
The 10 most important PV markets
in 2011, according to IMS Research,
will be:
1. Germany
2. Italy
3. USA
4. China
5. Japan
6. France
7. Australia
8. India
9. Spain
10. Canada

With some notable changes in


position, this result contrasts in
several ways with IMSs list of the
10 most important PV markets of
last year:
1. Germany
2. Italy
3. Czech Republic
4. USA
5. France
6. Japan
7. Spain
8. Belgium
9. China
10. Australia
While Germany and Italy hold
their places this year at first and
second respectively, the US
despite a slow start to the year
moves into third position, up from
number four last year. (To find out
whos building what in the US,
see US Solar Utility Rankings on
page 7 of our Large Scale Solar
supplement.)
France loses a point, moving
down to number six from fifth
place last year. And Japan, where
the government is aggressively
expanding its solar targets in the
wake of the Fukushima disaster,
moves up from sixth to fifth.

Spain falls two slots, down from


number seven in 2010 to number
nine this year. This is largely as
a result of the countrys reduced
FiT, which came into effect in
the second quarter of this year.
Under the cuts, remuneration
declined by 8% to 28.88 cents
for smaller rooftop installations,
by 27% to 20.37 cents for larger
rooftop systems and by 46.5% to
13.46 cents for ground-mounted.
Australia moves up from last
years number 10 to number seven
this year, a significant jump. There is
currently strong policy commitment
to solar energy from the Australian
government, most notably with its
Solar Cities programme. Demand
is also increasing in rural areas
where connection to the grid may
not be feasible.
India, which had failed to feature
in the rankings last year, enters this
year at a respectable number eight.
The countrys thriving renewable
energy sector and strong growth in
PV manufacturing are supported by
incentive packages, soft loans and
the innovative Jawaharlal Nehru
Solar Mission, which has set a
target to acheieve 20 GW of gridconnected solar power installed
and on-line by 2020.

However, Belgium, number eight


in 2010, falls off the chart entirely
this year.
Canada where the solar PV
market in Ontario alone is forecast
by ClearSky Advisors of Toronto
to grow a whopping 270% by the
end of this year, becoming the
largest regional market in North
America enters the rankings at
number 10.
The biggest leap forward for
2011, of course, is Chinas jump
from number nine last year to
number four this year.

INCREASING OPTIMISM
IMS is now also more optimistic
about the mid-term future for the
PV industry and has also raised its
projections for 2012. Despite many
still predicting doom and gloom,
our latest research presents a very
different picture. The decision by the
Chinese government to introduce
a national FiT to boost flagging
demand, as well as a diversifying
global market and the introduction
of new incentive schemes globally
presents a much more optimistic,
but still very challenging future for
the industry, concluded Sharma.

Tildy Bayar

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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________
RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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THE BIG QUESTION


TISUN

IG
THE BO
N
APTOPIX

QUESTI

RITTER SOLAR

RHI: Success, failure or


something in between?
Each issue, Renewable Energy World asks leading players in the
industry to give their verdict on a key issue of the moment.
In this edition's Big Question feature, we asked readers to give us
their predictions for how the UK's recently announced Renewable
Heat Incentive will play out. Will this new policy successfully
engage industry and consumers? What will the outcomes be for
manufacturers, consumers and industrial sectors?

DAVID THORNE, CEO, GEMSERV


The Renewable Heat Incentive
(RHI) is the first scheme of its
type and all eyes will be on the
UK to determine its success
and whether it can be replicated
by other countries.
It is vital that the tariff bands
are set correctly to prevent the
market from being distorted and
to create a level of stability which
will ensure economic success.
Currently, the government has
sought to set tariff levels to
achieve a 12% annual rate of
return for installing renewable
heat technology. However, it is
unable to predict all changes to
the industry and the impact the

20

RENEWABLE
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RHI will have. Therefore it is vital


that the tariff bands are regularly
reviewed to ensure the market
is not over incentivised and to
take into account changing
technology costs.
Dramatic changes in the
incentives would, however,
result in unease within the
industry, especially with regards
to investment opportunities
in the technology. Since
the budget for the scheme
is set by the Treasury each
year, its important that larger
installations dont take too
big a piece of the pie, so to
speak. The larger the system,

the greater the heat generated


and amount paid (albeit at a
lower tariff rate), so to ensure
that smaller-scale domestic
installations gain access, any
subsequent tariff cuts are most
likely to be imposed on the
larger scale non-residential
installations in other words,
the commercial and industrial
sectors. There is, of course,
a fine balance to be achieved,
since these sectors will deliver
the largest proportion of overall
renewable heat generation.
Naturally, any reduction in tariff
bands could adversely affect
demand for renewable heat

WESSEX GROUP

technology across the board


for manufacturers, consumers
and the commercial and
industrial sectors.

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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THE BIG QUESTION

XAVIER NOYON, SECRETARY GENERAL, EUROPEAN SOLAR THERMAL INDUSTRY FEDERATION


On the whole, both the
European
Solar
Thermal
Industry Federation (ESTIF)
and the solar heating industry
were enthusiastic when the
RHI consultation was launched
in 2009. For years ESTIF has
been promoting renewable heat
as a sector with huge potential
but requiring specific policies.
Industry had already pointed
out the benefits of financial
incentives based on a systems
performance/output rather than
on mere square metres. On both
counts the outline of the RHI
was promising.
At the time, we did
not
contradict
some
of
the
preliminary
studies
commissioned in preparation
for the RHI, such as the
NERA/AEA (2009) and the
NERA (2010) reports on initial
and levelised costs that were

biased, with a negative effect on


solar thermal. Besides warmly
welcoming the initiative, ESTIF
concentrated its efforts on the
recognition of the Solar Keymark
alongside national marks and
on the importance of a proper
and accurate measurement
methodology
based
on
European standards.
Following
the
initial
consultation phase, there was
a long period of uncertainty due
to both the political changes
and the 2011 financial situation.
Once the financial decisions
were made and it became
obvious that the RHI would be
maintained in some form, a first
period of consultation resulted
in the launch of the RHI for the
non-domestic sector. In this
scheme, solar thermal does
not get fair treatment and the
negative effects of the originally

flawed cost analysis to be found


in the background studies result
in a tariff for solar thermal which
does not offer a satisfying return
on investment.

the full potential of solar thermal.


The RHI is an excellent
example of a very ambitious
and well-conceived policy that
results in conflicting effects in

In this scheme solar thermal does not get


a fair treatment and the tariff does not offer
a satisfying return on investment
The announcement on the
crucial domestic sector was
postponed and Renewable
Heat Premium Payments have
just been introduced as an
intermediate solution. Today we
do not know what will be the
tariff for domestic solar thermal,
but considering the premium
payments and the non-domestic
scheme there are no grounds
for optimism. Despite the fact
that the UK is home to some
pioneers of the solar thermal
industry, it fails to acknowledge

the market due to problems in


its implementation.
The concept of a tariff
for renewable heat is making
progress in Europe (Spain,
Italy) and the UK will serve to
test large-scale implementation
of such innovative schemes,
testing issues such as monthly
payments, metering and so on.
However, the great uncertainties
surrounding the domestic
RHI are discouraging for both
consumers and industry, leading
to a stagnating market in 2011.

NEIL SCHOFIELD, HEAD OF EXTERNAL AND


GOV'T AFFAIRS, WORCESTER-BOSCH
The first thing to say is that the
RHI is a very welcome initiative
by the government which could
be a game changer in terms of
the UK's uptake of renewable
technologies, in particular solar
thermal and heat pumps.
However, there is good and
bad news. Any government
incentive will drive the market as
we have already seen with the
feed-in tariff for solar PV. If, on
the back of the RHI, take-up is
greater than anticipated it is not
impossible that the government
could again begin to rein
demand back in.
It has been made clear
by
government
that
the
860 million (US$1.3 billion)
set aside for the RHI is set in
stone and will not be increased.
However, it has also been made
clear that this money is ringfenced and will not be reduced.

My concern now is that the


government may be forced to
eke out the cash to make it last
for the full three years, which
could lead to a stop-start, stopstart approach, which we are
already seeing with the gap
between the end of the RHI
Premium Payment and the full
start of the programme in 2012.
Longer term, the government
has taken a very risk-averse
approach to implementation
due to fears of abuse of the
system. However, this has led
to the development of a highly
complicated system which is a
potential red-tape headache for
commercial applicants with the
potential to put off domestic
households altogether.
This is particularly ironic
given that the government has
said it wants to cut red tape for
small businesses.

__________

_____

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
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RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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THE BIG QUESTION

PAUL THOMPSON, HEAD OF POLICY, REA


DECC decided to split the policy
in two phases, so that issues
they could not resolve in time for
2011 dont hold back the RHI
as a whole. Although there are
plenty of quibbles to make on
phase one, the main concerns
are not over what has been
missed out which, we hope,
will be included in Phase 2
from 2012.
As with the FiT, the big
question is whether there
is enough money to back
the
scheme.
The
RHIs
budget to 20142015 has
been divided into four annual
budgets. There is no flexibility
between
years,
so
any
overspend in one year will
have to be made up elsewhere
and any underspend goes
straight back to the Treasury.
This makes the task of getting
the RHI up and running even
harder. The longer a project

takes to complete, the harder it


will be to live with the risk of tariff
changes

a
particularly
unfortunate outcome as these
will generally be claiming the
lower rates.
Treatment of CHP is another
issue. At the time of writing,
we are still waiting for the
governments proposals on the
future of the CHP uplift within
the Renewables Obligation.
If the uplift is removed, those
projects will be dependent on
the RHI. As were talking about
a relatively small number of large
projects, this would compound
the difficulty of staying in budget.
The RHI is a major
achievement, and certainly has
the potential to deliver. But there
is still a great deal that could go
wrong, and government must
be very careful to finish the job
in Phase 2 and implement it as
promised by autumn 2012.

PETER VERKEMPYNCK, MANAGING


DIRECTOR, DAIKIN UK
Although its first phase may not
have extended as far as many
would have liked, the fact that
the government has stuck to
the principle of accelerating the
widespread domestic take-up of
renewable heating technologies
should be applauded.
This incentive is a muchneeded fillip for an industry which
until now has been inundated
with lots of sticks in the form of
standards and regulations but
very few carrots.
In the domestic heating
sector there is no doubt that its
introduction is good news for
all concerned. Payments will
be made to the home owner
in addition to any savings
resulting from the installation.
By embracing the opportunities
that the RHI brings, it is possible
to set homes apart by offering
a real marketing advantage

both in the private market and


for social housing (where fuel
poverty is high on the agenda).
The inclusion of air-to-water
heat pumps in the long awaited
details of the one-off Renewable
Heat Premium Payment is a
welcome demonstration that the
government has confidence in
this technology. Given this, the
next logical step is to include
them as part of the wider RHI.
We see the continued
development and widespread
adoption of air-to-water heat
pumps as an investment in the
UKs future. However, at the
moment only a small minority of
homes will benefit from explicit
incentives. The decision to
restrict some RHI payments to
the fewer than three million UK
homes in off-gas areas means
that more than 19 million homes
will not currently benefit.

ROBIN WELLING, MANAGING DIRECTOR,


TISUN GMBH
The UK government is to be
applauded for being the first
to implement an incentive of
this nature. However, there is
a lesson for other countries
wishing to implement similar
schemes, in that any scheme
needs to be executed within the
time frames announced. The
UK government has repeatedly
delayed the implementation of
the scheme resulting in possible
purchasers holding off from
investing in a solar system.
This has achieved the opposite
of what the RHI was intended
to do, which was to stimulate
the market for renewable
heating. Investor confidence
has not been increased by the
lack of information over the
past two years, and as yet the
government has not announced
the all important details of
domestic RHI payments.

______

Now that the RHI has been


confirmed for implementation
for commercial installations
at the end of September, we
believe that the uptake of solar
thermal will see increases similar
to the effect that the feed-in tariff
had on solar PV.
While the payment of
8.5 p/kWh is far below the
43 p/kWh that solar PV is
awarded, the lower capital cost
of solar thermal will generally
achieve payback in under
10 years, according to our
modelling. If there are further
increases in the cost of fuel like
the recent 18% increase in the
UK, the case for solar thermal is
clearly strengthened.
In summary, although the
governments vacillation has
damaged the solar thermal
industry, the RHI will still result in
increased uptake.

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
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THE BIG QUESTION

CATHY DEBENHAM, FOUNDER AND


DIRECTOR, YOUGEN
WDS GREEN ENERGY

Heating our leaky old housing


stock is a significant cost for
most people in the UK, and with
oil and gas prices rising is only
likely to get greater. This means
more people in fuel poverty.
Its also a significant cause of
carbon emissions. So it makes
sense to incentivise people to
both to reduce their needs and
switch to renewable heat.
There is much to welcome
in the domestic element of the
Renewable Heat Incentive.
Im pleased that basic energy
efficiency measures must be in
place to qualify, and it's great
to hear that there's going to
be research into how people
use renewable heat, and how
well it works in practice. I also
welcome its integration with the
Green Deal. But (there had to be
one) policy seems to be being
made on the hoof:
The six-month window for
applying for the renewable heat
premium payments (RHPP) is
during the winter, when you
dont really want to be doing
major renovations on your
heating system. Then there
are five warm months before
the launch of the RHI proper
will that be sufficient time to
obtain any meaningful data

and feed it into the design


of the RHI?
And how high will takeup be? The government still
hasn't announced what rates
will be available for the domestic
incentives, and what the
eligibility criteria are. Without this
information, such investment is
still prohibitively expensive for
most people.
Many
installers
have
dismissed
the
renewable
heat payments as too small
to make a difference. A
change in the price of oil is
much more likely to get their
phones ringing.
I realise that this is a
difficult
'chicken-and-egg'
situation. Without the findings
of their research, the eventual
Renewable
Heat
Incentive
probably won't be as effective
in incentivising uptake of solar
thermal, biomass boilers and
heat pumps. But unless people
know the long-term financial
implications of investment, I
dont think these relatively small
grants are likely to be enough.
As for the domestic RHI its
difficult to comment on whether
it will be a success until we have
more information. I really hope it
will be.

December 1416, 2011


Indias International Exhibition and
Conference for the Solar Industry
Bombay Exhibition Centre, Mumbai

250 Exhibitors
20,000 sqm Exhibition Space
6,000+ Visitors

www.intersolar.in

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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STATE OF THE
GLOBAL MARKET

REN21: RENEWABLES 2011


GLOBAL STATUS REPORT
Renewables accounted for half of new
global electricity capacity added in 2010
SHUTTERSTOCK

A positive constant amid the economic turbulence of the last year has been
the global performance of renewable energy. Renewable sources grew
to supply an estimated 16% of global final energy consumption in 2010.
In this article Janet L. Sawin and Eric Martinot explore the state of the
global renewable electricity sector.

n the last year, the world has seen many significant developments
that have had an impact both direct and indirect on renewable
energy. The global economic recession entered a new phase in
2010, marked by massive public finance crises felt most acutely
in Europe that led several governments to announce incentive
cuts for solar energy. Natural gas prices remained low, temporarily
reducing the competitiveness of renewable energy. At the same
time, worldwide developments highlighted the security, economic
and human costs of relying so heavily on fossil and nuclear energy.
Global energy consumption rebounded strongly in 2010 after an
overall downturn in 2009, with annual growth of 5.4%, well above
the historical average. Renewable energy, which had no downturn in
2009, also continued its strong growth.
Indeed, renewable energy accounted for approximately half of
the estimated 194 GW of new electric capacity added globally during
2010 while existing renewable power capacity worldwide reached an
estimated 1320 GW in 2010, up almost 8% from 2009. Renewables
now comprise about a quarter of total global power generating

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capacity (estimated at 4950 GW in 2010) and supplies close to 20%


of global electricity, with most of this provided by hydropower. When
hydropower is not included, renewables reached a total of 312 GW
in 2010, a 25% increase over the 2009 figure of 250 GW. Among all
renewables, global wind power capacity increased the most in 2010,
followed by hydropower and solar photovoltaics (PV).
While this article focuses on the electricity sector, renewables
also play increasingly significant roles in the heating/cooling and
transportation sectors, as detailed in the REN21 report.
WIND POWER
Among all renewables, wind capacity increased the most in 2010,
by 39 GW over three times the 11.5 GW added worldwide just five
years earlier. As a result, capacity increased more than 24% relative
to 2009, with total global capacity nearing 198 GW by years end.
At least 52 countries increased wind capacity during 2010, and
83 countries now use it on a commercial basis. Over the five years to
end-2010, annual growth rates of cumulative wind power capacity

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averaged 27%. The annual global wind power market held steady in
2010, just slightly above 2009, due to slower growth in the US and
Europe brought on by policy uncertainty, by the continuing economic
crisis, and by depressed electricity demand in many developed
countries. As a result, for the first time, the majority of new turbine
capacity was added in developing countries and emerging markets
rather than in winds traditional markets. This growth was driven
primarily by China, which accounted for 50% of global capacity
additions in 2010, up from 4.4% in 2005. China added 18.9 GW
of new wind, a 37% increase over 2009, bringing the country into
the global lead with a total of 44.7 GW. However, about 13 GW
of this capacity had not yet been commercially certified by yearend, although all but 2 GW was in fact already feeding electricity
to the grid.
The US added just over 5 GW in 2010, compared with more
than 10 GW the previous year, bringing its total to 40.2 GW, a 15%
increase over 2009. By year-end, wind accounted for 2.3% of
generation (up from 1.8% in 2009). Texas, with 10.1 GW, had more
than one quarter of existing US capacity at the end of the year.
The European Union installed nearly 9.5 GW in 2010, down
slightly compared with 2009 but bringing the total to about 84 GW.
For the first year since 2007, wind did not account for the largest
share of new capacity and in fact came in third behind natural
gas and PV.
Germany maintained its lead in Europe with 27.2 GW operating at
the end of 2010, generating 36.5 TWh during the year. Nevertheless,
the annual addition of 1.6 GW represented a 19% reduction in new
capacity relative to 2009 and the smallest annual German wind
market since 1999; if dismantled systems are accounted for, net
capacity additions totaled 1.5 GW.

For the first time, the majority of new


wind capacity was added in developing
countries and emerging markets
Spain again led Europe in terms of new installations, adding
nearly 1.8 GW for a total of over 20.7 GW. This made it the worlds
fourth largest market for new wind, although Spain saw its slowest
growth since 2003 in absolute terms. Despite having less capacity in
operation than Germany, Spain produced more electricity (43 TWh)
in 2010, due largely to higher winds and more advanced turbines.
France, Italy, and the UK (adding 1.1 GW, 0.9 GW and just
under 0.9 GW respectively) were the other top markets in Europe.
Meanwhile, emerging-market EU countries helped to offset the
decline in mature EU markets, with significant growth in Bulgaria,
Lithuania, Poland, and Romania.
India was the third largest market in 2010, adding nearly 2.3 GW
to reach an estimated 13.2 GW and maintain its fifth-place ranking
for total wind capacity.
Other markets around the world are also starting to take off.
In Latin America and the Caribbean, total installed capacity rose
54% during 2010, with Brazil and Mexico each adding about
0.3 GW. However, Latin America still accounts for a very small share.
The same is true in Africa and the Middle East, although at least 11
countries in the region had commercial wind installations in 2010.
Although its share of total wind capacity remains small, offshore
wind continued to pick up speed, increasing by 1.2 GW to 3.1 GW

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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________
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at the end of 2010, with most of this in Europe and the rest in China
(0.1 GW) and Japan (0.02 GW). The European offshore market grew
more than 50% during 2010, bringing total capacity to 3 GW.
SOLAR POWER
More than 100 countries added new solar photovoltaic (PV) during
2010, ensuring that PV remained the worlds fastest growing
technology with an estimated 17 GW of new capacity (compared
with just under 7.3 GW in 2009). This brought the global total to
about 40 GW more than seven times that of five years earlier.
Total existing capacity of all PV grew 72% relative to 2009,
with the average annual growth rate over the 20052010 period
exceeding 49%. For the first time since 2005, thin-films share of
the market declined, from 17% in 2009 to 13% in 2010, although
sales increased. The PV market was driven by falling costs, new
applications, strong investor interest, and continued strong policy
support, but also by accelerated tariff digressions in some countries.
The EU dominated the global market, accounting for 80% of the
total with about 13.2 GW newly installed. And, led by Germany and
Italy, Europe added more PV than wind for the first time ever.
Germany added more PV (7.4 GW) in 2010 than the entire world
did the previous year, ending 2010 with 17.3 GW of capacity. During
the first quarter of 2011, Germany also generated 2.75 TWh from
PV, an increase of 87% over the same period in 2010. Italy added
some 2.3 GW, bringing the official PV total to nearly 3.5 GW, though
actual installations were likely higher. And, in the Czech Republic,
the combination of high feed-in tariff rates and the reduction in

_________________

equipment costs led to a second strong year (1.5 GW), lifting the
country from virtually zero in 2008 to nearly 2 GW in 2010.
Other major European installers in 2010 included France (adding
0.7 GW), which more than tripled its additions relative to 2009,
followed by Belgium (0.4 GW) and Greece (almost 0.2 GW), which
more than quadrupled its 2009 additions. Spain saw a second
consecutive year with installations well below the 2008 peak as
a result of a cap on ground-mounted systems and uncertainties
associated with the new regulatory framework; less than 0.4 GW
were added in 2010, bringing total PV capacity to 3.8 GW.
Beyond Europe, the largest PV markets were Japan (nearly
1 GW), the United States (0.9 GW), and China (0.6 GW). The
Japanese and US PV markets almost doubled relative to 2009, with
Japans total existing capacity reaching 3.6 GW and the US passing
the 2.5 GW mark. More than a quarter of additional US capacity
was in utility-scale projects, and electric utilities are becoming a key
driver of future growth in the country.
The trend toward utility-scale (>200 kW) PV plants continued,
with the number of such systems exceeding 5000 in 2010, up from
just over 3200 in 2009. These facilities totaled some 9.7 GW of
capacity by the end of 2010, an increase of more than 3 GW during
the year, and accounted for almost 25% of total global PV capacity.
Interest in concentrating PV (CPV) is also on the rise, with as
much as 0.02 GW connected to the grid worldwide during 2010
and early 2011.
After years of inactivity, the concentrating solar thermal power
(CSP) market has seen about 740 MW added between 2007 and
end-2010. More than half of this capacity (approximately 478 MW)
was installed during 2010, bringing the global total to 1095 MW.
The global market was dominated by parabolic trough plants, which
account for 90% of CSP plants and for nearly all existing capacity.
Spain added 400 MW in 2010, taking the global lead with a total
of 632 MW, while the US ended the year with 509 MW after adding
78 MW, including two fossil-CSP hybrid plants.
CSP growth is expected to continue at a rapid pace. As of
April 2011, another 946 MW were under construction in Spain with
total new capacity of 1789 MW expected to be in operation by the
end of 2013. In the US, a further 1.5 GW of parabolic trough and
power-tower plants were under construction as of early 2011, and
contracts signed for at least another 6.2 GW. Interest is also notable
in North Africa and the Middle East, as well as India and China.
BIOMASS POWER
Significant increases in biomass for power production were seen
during 2010 in a number of European countries, the US, and in
China, India, and several other developing nations. Globally, an
estimated 62 GW of biomass power capacity was in place by
the end of 2010, with the US continuing to lead. Other significant
producers included the EU led by Germany, Sweden, and the
UK and Brazil, China, and Japan. Less than 0.3 GW of capacity
was added in the US during 2010, bringing the total to 10.4 GW
(excluding municipal organic waste), and biomass generated about
48 TWh during 2010.
The European Unions gross electricity production from biomass
increased nearly 10.2% between 2008 and 2009 (the most recent
year for which complete data are available), from 79.3 TWh to 87.4
TWh. Solid biomass accounted for 62.2 TWh about 71% and

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
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POLICY & MARKETS: GLOBAL RENEWABLES REPORT

biogas accounted for the remainder. About half of Europes biomass


power production came from electric-only facilities and half came
from combined heat and power (CHP) plants.
Although biogas experienced the most significant increase in
the EU (up almost 18%), generation from all biomass sources has
increased rapidly. For example, EU electricity production from solid
biomass tripled between 2001 and 2009, and by early 2010 some
800 solid biomass plants (an estimated 7.1 GW) were operating.
The top three countries in Europe Germany, Sweden, and the
UK accounted for nearly 50% of the regions electricity production
from biomass in 2009; Germany alone accounted for about 50% of
the EUs biogas generation and almost 30% of total EU electricity
generation from biomass. Other significant biomass power
producers included Finland, Poland, Italy, and the Netherlands.
Future high growth, particularly in biogas use, is expected in
Italy, France, Spain, and the UK, and new markets are emerging in
the Czech Republic, Hungary, and Slovakia.
Brazils biomass power capacity, nearly all cogeneration, has
also been increasing steadily. Capacity reached 7.8 GW in 2010,
generating 28 TWh. It has also grown in several other Latin American
countries, including Costa Rica, Mexico, and Uruguay.
Japan generated an estimated 10 TWh with biomass in 2010,
excluding co-firing. Elsewhere in Asia, Chinas capacity rose about
25% in 2010 to 4 GW using a combination of bagasse, solid biomass,
organic waste, and biogas (including from livestock wastes).
India added about 0.3 GW of biomass power capacity in 2010
for a total of 3 GW at year-end. Thailand added only 0.003 GW

of solid biomass capacity in 2010, ending the year with 1.3 GW,
but it nearly doubled its biogas capacity in 2009 to 0.05 GW and
increased it a further 37% in 2010 to 0.07 GW. Malaysia is seeing
significant biogas expansion as well.
There is also increasing interest in Africa and the Middle East,
where several countries including Cameroon, Kenya, Tanzania, and
Uganda have existing biomass capacity or development plans.
GEOTHERMAL POWER
Since 2005, significant additions of geothermal electric capacity
have occurred in Iceland, Indonesia, New Zealand, the US, and
Turkey, and global power production has increased more than 20%.
Countries with lower capacity levels but high growth rates during
this period include El Salvador (35%), Guatemala (58%), Papua New
Guinea (more than 800%), and Portugal (81%). By the end of 2010,
global installations came to over 11 GW, up an estimated 240 MW
from 2009, generating about 67.2 TWh.
Although geothermal developments slowed in 2010 relative to
2009, the lull was expected to be temporary. The lack of available
drilling rigs (due to competition with the oil and gas industry) has
hindered developers, while the lack of a qualified workforce has
presented problems in Kenya and elsewhere.
The three largest plants commissioned in 2010 were in New
Zealand, Italy and Kenya. The addition in Kenya increased the
plants capacity to 0.1 GW, making it the largest in Africa.

Since 2005, significant additions of


geothermal electric capacity have occured
in Iceland, Indonesia, NZ, the US and Turkey
By the beginning of 2011, geothermal plants were operating in
at least 24 countries, but the vast majority of capacity was located
in eight: the US (3.1 GW), the Philippines (1.9 GW), Indonesia (1.2
GW), Mexico (just under 1 GW), Italy (0.9 GW), New Zealand (nearly
0.8 GW), Iceland (0.6 GW), and Japan (0.5 GW).
Iceland, the leader on a per capita basis, generated about 26%
of its electricity with geothermal power in 2010, and the Philippines
generated approximately 18%.
As the market continues to broaden, a significant acceleration
in the rate of deployment is expected, with advanced technologies
allowing for development in new countries. As of early 2011, nearly
0.8 GW of new capacity was in the drilling or construction phase in
the US and was expected to be generating by 2015; and a total of
123 confirmed projects (accounting for up to 1.4 GW of resources)
in 15 US states were in development.
Iceland expects to add nearly 0.1 GW in 2011, and much more
capacity is in pipelines around the globe, with 46 countries forecast
to have new geothermal installed within the next five years. By
late 2010, Germany had an estimated 150 pipeline projects, and
projects were underway in Chile (0.2 GW), Costa Rica (0.4 GW),
India (nearly 0.3 GW), and the UK (0.01 GW), among others.

__________

________

HYDROELECTRICITY
Currently in use in some 150 countries, global hydropower
production increased more than 5% in 2010 due greatly to new
capacity and wet weather in China and represented about 16%
of global electricity production. An estimated 30 GW was added

-VYTVYLPUMVYTH[PVULU[LY H[9,>OV[PTZJVT
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Complete Solar
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____________________

POLICY & MARKETS: GLOBAL RENEWABLES REPORT

during 2010, with existing capacity reaching


an estimated 1010 GW.
The top countries for hydro are China,
Brazil, the US, Canada, and Russia,
accounting for 52% of the total. Ranked
by generation, the order is China, Canada,
Brazil, the US, and Russia.
By region, Asia leads for share of installed
hydro capacity, followed by Europe, then
North and South America, with Africa at a
distant fifth. China added 16 GW during 2010
to reach some 213 GW, a significant increase
over the 117 GW at end-2005.
Brazil brought about 5 GW into
operation, bringing its existing capacity
to 80.7 GW, with a further 8.9 GW under
construction. Canada generated about 348
TWh and added 500 MW to end 2010 with
75.6 GW. More than 11 GW of new projects
were under construction across Canada by
early 2011, with an estimated 1.3 GW due
to be operational before the end of 2012. US
development has slowed recently due to the
economic recession, but just over 0.02 GW
of new hydro began operating in 2010 for

by Brazil) are the most active regions for new


hydro. An additional 140 GW are planned in
China over the next five years. Brazil plans
two major projects in the Amazon region,
including a 3.2 GW reservoir project due for
completion in late 2011.
North America and Europe, also
constructing new plants, are the main centres
for modernisation of existing plants and for
the application of pumped storage.
Interest in pumped storage is increasing,
particularly in regions and countries where
variable renewable resources are achieving
relatively high penetration. The vast majority
is in Europe, Japan, and the US. About 4
GW was added globally in 2010, bringing the
world total to approximately 136 GW, up from
98 GW in 2005.
Ocean energy is the least mature of the
technologies considered and by the end
of 2010, only tidal barrage systems had
achieved commercial scale, accounting for
most of the worlds installed capacity.
However, in 2010 there were a handful of
pre-commercial projects. Although existing

China added an estimated 29 GW of grid-connected


renewable electricity capacity in 2010, for a total
of 263 GW, an increase of 12% compared with 2009
a total of 78 GW (plus 20.5 GW of pumped
storage), producing 257 TWh during the year
(up from 233.6 TWh in 2009).
Russia has an estimated 55 GW, which
represents about one fifth of the countrys
total capacity. Brazil and Canada generate
roughly 80% and 61%, respectively, of their
electricity with hydropower. Many countries
in Africa produce close to 100% of their gridbased electricity with hydro, as does Norway.
India, which ranks sixth worldwide for
total hydro, with an existing capacity of more
than 40 GW (including 37.4 GW of largescale), added about 0.3 GW of small hydro
in 2010 for a cumulative small-scale hydro
capacity of 2.9 GW at year-end; another
0.9 GW of small hydro were under construction
as of early 2011. Brazil had 53 small hydro
projects (0.7 GW) under construction by early
2011, and 149 additional plants (2.1 GW) had
been authorised. Canada, Iran, Kazakhstan,
and Switzerland also had significant amounts
of small hydro under construction or in
planning. Rwanda aimed to have 0.04 GW of
small hydro capacity by 2015.
Asia (led by China) and Latin America (led

capacity remained low relative to other


renewable technologies, numerous projects
were in development or under contract, and
at least 25 countries were involved in ocean
energy development activities. At years
end, an estimated total of 6 MW of wave
(2 MW) and tidal stream (4 MW) capacity
had been installed worldwide. Most of these
projects were in Europe, with the majority
operating off the coasts of Portugal and the
UK. A few prototypes were initiating first
steps toward commercialisation.
REGIONAL DEVELOPMENTS
By early 2011, at least 118 countries had
some type of policy target or renewable
support policy at the national level, up from
55 countries in early 2005. Developing
countries, which now represent more than
half of all countries with policy targets and
half of all countries with renewable support
policies, are playing an increasingly important
role in advancing renewable energy. This
increasing geographic diversity in markets
and manufacturing is boosting confidence
that renewables are less vulnerable to policy

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or market dislocations in any specific country.


The top five countries for non-hydro renewable power capacity
were the US, China, Germany, Spain, and India. In the US, renewable
energy accounted for an estimated 25% of electric capacity additions
in 2010 and 11.6% of existing capacity at years end.
China added an estimated 29 GW of grid-connected renewables,
for a total of 263 GW, an increase of 12% compared with 2009.
Renewables accounted for about 26% of Chinas total installed
capacity in 2010, and 18% of generation. In the European Union,
renewables accounted for an estimated 41% of newly installed
electric capacity in 2010, with PV accounting for more than half of
the total. Although the share was significantly lower than the more
than 60% of total capacity added in 2009, more renewable power
capacity was added in Europe than ever before (22.6 GW), with total
installations up 31% over the previous year (17.5 GW). Renewable
energys share of total electricity generation in the EU was nearly
20% in 2009.
India added an estimated 2.7 GW of grid-connected renewables
during 2010 mainly from wind but also from biomass, small
hydropower, and solar capacity for a total of nearly 19 GW.
Continued strong growth is expected in all renewable energy
sectors in the coming years, with projects at various stages of
development around the world. China alone plans to install more
than 30 GW of wind power capacity during 2011 and 2012, and
significant additional capacity is under construction in India, the
US, UK, and other countries. At least 5.4 GW of solar PV capacity
was under contract in the US by the end of 2010. Globally, nearly

2.6 GW of additional CSP capacity was under construction by years


end, with all plants expected to be operational by 2014. Significant
geothermal power capacity (and CHP) was in project pipelines
around the globe by year-end, with 46 countries forecast to have
new geothermal capacity installed within the next five years. Major
developments are under way for hydro, ocean energy, and other
renewable technologies as well.
Technology cost reductions in solar PV in particular meant high
growth rates in manufacturing. Cost reductions in wind turbines and
biofuel processing technologies also contributed to growth. At the
same time, there was further industry consolidation, notably in the
biomass and biofuels industries, as traditional energy companies
moved more strongly into the renewable energy space, and as
manufacturing firms continued to move into project development.
Janet L. Sawin is the lead author/research director of the
REN21 Renewables 2011 Global Status Report. Eric Martinot,
who researched and wrote the early editions of the report,
was expert advisor and an author of this years edition, a
collaborative effort which was produced under the direction of
project manager Rana Adib with the REN21 Secretariat. The full
report is available at: www.ren21.net.
e-mail: janet.sawin@ren21.net
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

_________________

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
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RENEWABLE ENERGY WORLD SEPTEMEBROCTOBER 2011

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POLICY & MARKETS: BRAZIL

The country of sun, sea and samba is keen to


showcase its positive example to the world
CRAZY FRANKENSTEIN

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POLICY & MARKETS: BRAZIL

A VIEW FROM
THE TOP
BRAZILS RENEWABLE
ENERGY SUCCESS STORY
With almost half of its energy supply generated by renewable sources,
Brazil increasingly looks like a positive example for the rest of the world.
Robin Yapp reports from So Paulo.

here is an old joke that says Brazil is the country of the future and always will be. But with
rapid economic growth, the government claiming that some 40 million people have been
lifted out of poverty in the past decade and the 2014 World Cup and 2016 Olympics in Rio de
Janeiro on the horizon, it seems the joke is about to fall flat. Brazils time has arrived and the
country of sun, sea and samba is keen to showcase itself to the world as a positive example
of how to exploit renewable energy sources as well as how to perform on the football pitch.
According to the Intergovernmental Panel on Climate Change, up to 77% of the worlds
energy needs could potentially be supplied from renewable sources by 2050, despite the
current figure being a much more modest 13%.
Many heads of government around the world wondering how they can play their part in
such a dramatic transformation could be forgiven for looking enviously at Brazil, where the
figure already stood at 44.8% in 2010 and is forecast to rise to 46.3% in 2020.
While this increase may seem small in percentage terms, it fails to take into account the
huge growth that will be seen in the countrys raw energy demands and the fact that the next
decade could see the foundations laid for renewable energy to quickly become even more
dominant in the years that follow.
A GROWING DEMAND FOR ENERGY
In the next decade demand for energy is expected to increase by around 60% in Brazil, fuelled
by millions of people spending more on consumer goods for their homes and cars, economic
growth continuing to outstrip that seen in developed nations and heavy spending to improve
infrastructure ahead of the two greatest sporting shows on earth.
However, Brazil has also committed to reducing its CO2 emissions by between 36% and
39% by 2020, making it vital that the country concentrates on clean sources of energy.
Investment of around BRL190 billion (US$122.6 billion) is needed for Brazil to meet the
challenge, according to a 10-year energy plan recently published by EPE, Brazils Energy
Research Company, which conducts research for the Ministry of Mines and Energy. Of this,
around BRL100 billion ($63.8 billion) will go towards renewable projects not yet contracted,
55% on large hydropower and 45% on wind, biomass and small hydro.
In terms of electricity Brazil already meets 83% of its needs from renewable means,
gaining recognition from the Washington-based Pew Environment
Group as one of the lowest carbon electricity matrices
in the world.
At present electricity consumption per person per
year stands at just 560 kWh in Brazil. This compares
with some 1900 kWh in the UK and more
than 4500 kWh in the US. But, faced with
on-going development, the country
now needs to increase the installed

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POLICY & MARKETS: BRAZIL

potential of the national grid from the 110 GW at the end of last year
to 171 GW by the end of 2020.
The EPE report details some of the reasons why Brazil needs a
rapid expansion of its ability to produce electricity.
The population of South Americas biggest country is expected
to rise from 191.5 million in 2010 to 205 million in 2020, while the
number of new homes will also increase by around 15 million over
the period to hit 75.5 million as more people live alone.
A consumer spending boom is expected to see the average
number of televisions per home rise from 1.37 to 1.71, the proportion
of homes with washing machines increase from 64% to 74% and
the proportion with air conditioning to rise seven percentage points
to 27%. The 4% of Brazilian homes that do not currently house a
refrigerator are all expected to have one by the start of the 2020s.
Production of steel in Brazil could double in the next decade
with cement and aluminium also likely to rise almost two-fold. The
industrial and transport sectors will account for two thirds of the
countrys total energy demand in 2020.
Electricity shortages have long plagued the Brazilian economy
but President Dilma Rousseff knows the country cannot afford to
suffer more blackouts when the eyes of the world are on the nation
in the coming years.
But there are a variety of reasons to be optimistic. Given the
substantial investment from both within Brazil and overseas, the
nations vast and almost entirely untapped wind potential is also
beginning to attract attention to the fact that few other countries are
as well-blessed in terms of solar power prospects.
HYDROPOWER
At present large-scale hydropower looms largest in meeting Brazils
needs. The 10-year plan predicts installed capacity from such plants
will rise from just under 85 GW at present to more than 115 GW.
The principal new hydropower project is the 11,233 MW Belo
Monte dam to be built on the River Xingu in the state of Par in the
Amazon, which is due to start generating power in January 2015
with its full potential online by January 2019.
It will be capable of supplying enough power to serve 18 million
homes housing 60 million people, according to EPE, though in
reality much of its output is likely to go towards industry.
Belo Monte, to be built through a public-private partnership
led by the company Norte Energia, has been described by Edison
Lobo, Brazils Energy Minister, as the jewel in the crown of the
countrys development programme and will be the worlds third
biggest such plant. But it has proved highly controversial due to
claims that it will displace indigenous groups as well as the fact that
it will achieve less than 30% of its capacity during the dry season.
EPE insists that the cost to consumers of meeting the increased
demand for electricity through only wind and biomass would be
double that of energy produced by Belo Monte and that the dam
will help Brazil maintain one of the cleanest energy matrices of all
idustrialised countries.
WIND POWER
Despite the installation of Belo Monte and various other hydroelectric
plants, the proportion of Brazils electricity supply coming from
hydropower will be expected to actually fall from 75% of the total in
2010 to some 67% in 2020.

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Meanwhile, other renewable sources, such as biomass, smallscale hydropower and, principally, wind will see the 9 GW they
accounted for last year triple to 27 GW in 2020. This will take their
contribution to the countrys electricity supply from 8% to 16%,
keeping the overall contribution of renewables to electricity at 83%.
By far the biggest jump in contributions will come from wind
power, which currently supplies around 1% of Brazils electricity but
would supply 7% by 2020 under the current plans.
Despite its 9650 km of Atlantic coastline and the fact that much
of its northeast is blessed with some of the strongest and most
consistent winds in the world, Brazil only reached 1 GW of wind
power in May of this year.
The EPE plan, which is currently out for consultation, predicts
that the figure will hit 12 GW by 2020 but Pedro Perrelli, executive
director of the Brazilian Wind Energy Association (ABE Elica), feels
this forecast is highly conservative.
We are actually expecting almost double that, around 22 GW,
he said. What the wind industry is asking of the government,
in order to consolidate as a self-sustaining industry, is around
2000 MW to 2500 MW of contracts per year. Perrelli added: 12
GW [by 2020] is not enough to sustain a full industry, saying: Wind
power in Brazil is less than five years old, really. In 2005 we had
only 29 MW installed and now we have 1070 MW. We think we
understand in this planning that EPE is playing safe.
In 2001 when Brazils first wind atlas was published, the
countrys wind power potential was estimated to be 143 GW at
50 metres. New measurements looking at 80100 metres now
suggest that the true potential is in fact 350 GW.

For Brazil, the wind potential of 350 GW is


now officially greater than the national
hydropower potential of some 261 GW
This compares to the countrys total power generation capacity
of 113 GW at the end of last year, and also means that wind potential
in Brazil is now officially greater than hydropower potential, which is
estimated at 261 GW.
The countrys first wind-only auction took place in December
2009 and saw 71 projects contracted with 1800 MW of capacity. Six
turbine manufacturers GE, IMPSA Wind, Siemens, Suzlon, Vestas
and Wobben Windpower received orders.
The following year 2037 MW of wind power were contracted at
two government-sponsored auctions and are due to come online by
September 2013.
Brazil currently has 51 wind farms and 30 more under
construction, but that number is certain to rise dramatically in the
near future. Already some BRL25 billion ($16.1 billion) are due to be
invested by 2013 on wind projects.
This year a total of 429 wind projects with a potential of 10.9 GW
have been approved to take part in auctions as REW goes to press,
and ABE Elica expects around 2.5 GW to be contracted in order to
start supplying electricity by March 2014.
Brazilian wind energy is the cheapest in the world (based on
last years auction prices) because its wind farms are so productive.
Experts believe 2011 could see a further fall on the average
BRL131/MWh ($84.50/MWh) developers agreed to sell at last year.

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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Our future lies


wherever the sun shines

Hanwha Solar sees brighter tomorrows


From raw silicon and module production to project management and financing.
Hanwha Solar offers the world's green industries fully integrated solar solutions.
Hanwha has the technologies, the experience, and the will to succeed. Join us!

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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

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Over half of the investment in Brazils 10-year energy plan will be spent on hydropower FOTOPEDIA/KEVIN.J

Most of the wind projects competing at auction are located


in Brazils poverty-stricken northeast region, in states such as
Bahia (90 projects with 2295 MW potential), Cear (103 projects
with 2427 MW potential) and Rio Grande do Norte (116 projects
with 3012 MW potential).
Wind is transforming areas in the northeast that were importing
energy from the south, said Perrelli. They will start to produce more
energy than they are able to consume so that they will be able to
create stronger economies and to export energy.
Turbine manufacturers are lining up for a slice of the market,
with GE and Alstom Wind building factories in Brazil and Gamesa
and Suzlon also announcing local manufacturing plants. Foreign
suppliers are now eligible for funding from BNDES, the Brazilian state
development bank, so long as 60% of content is sourced locally and
the supplier commits to manufacturing turbine generators in Brazil
in a short space of time. There is also great potential for factories in
Brazil to supply wider markets in Latin America and the US.
BIOPOWER
Another key element in meeting Brazils energy needs is ethanol,
which the EPE report says will play an ever greater role due to an
increase in the nations fleet of flexible-fuel vehicles that are able to
run on gasoline, ethanol or any mixture of the two.
Brazil currently has the second largest national biofuel market
and is first in terms of resources readily available for further
expansion, according to the Pew Environment Groups 2010 report
Who is Winning the Clean Energy Race?
The national fleet of cars, lorries and buses is expected to
double from 29 million vehicles to 56 million in the next decade, and

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demand for ethanol is expected to almost triple from 27 billion litres


to 73 billion litres as a result.
EPE sees Brazils production of oil tripling to 6.1 million barrels
per day by 2020 due to the vast offshore fields discovered deep
under the ocean and a thick layer of salt, which the state company
Petrobras is exploring and drilling in conjunction with foreign firms.
Yet the proportion of total national energy consumption
accounted for by oil and its derivatives is predicted to fall
from 38.1% in 2010 to 31.9% in 2020.
According to the report, around 50% of Brazils oil production
will be exported by the end of the decade, thanks in large part to the
continued rise in ethanol use in the domestic market.
Mauricio Tolmasquim, the president of EPE, predicted that Brazil
will be the first oil exporter country in the world that will have a very
renewable energy matrix itself.
Despite the huge increase in oil production, Tolmasquim said,
ethanol is more competitive and consumers with flexi-cars prefer
to use ethanol, which he suggests means that Brazil will not have
to follow the trend that nearly all oil producer countries are big
carbon emitters.
First Brazil will be an important oil exporter and second it
will have one of the lowest carbon emission energy matrices,
Tolmasquim continued.
Brazil will be a strategic partner for the western countries that
need a lot of oil. It is a democratic country with a good regulatory
framework. I think it will be very important in terms of stabilising
the supply of oil.
Technological advances, particularly in the use of energy in
industry, will further allow the country to avoid consuming the

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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POLICY & MARKETS: BRAZIL

equivalent of 440,000 barrels of oil a day by 2020 around a quarter


of current demand.

Brazil will be the first oil-exporting country


in the world to have a low carbon energy
matrix based in renewable sources
IMPROVEMENTS TO THE GRID
There is also great potential for efficiency savings in electricity, as at
present between 15% and 17% of electricity generated in Brazil is
lost. EPE predicts that improvements in this area in the next decade
will be equivalent to a 7000 MW hydropower station being added to
the national grid.
In October 2009, a blackout affected tens of millions of Brazilians
when power line failures shut down the giant 12,600 MW Itaipu
hydroelectric power plant on the border with Paraguay that supplies
almost 20% of Brazils electricity.
In the next decade investment of BRL46.4 billion ($29.9 billion)
will see transmission lines extended from around 100,000 km in
2010 to 142,000 km in 2020, largely due to connections between
new power plants in the north such as Belo Monte and the rest
of the country.
We know very well what happened in the lost decades, in the
1980s and 1990s when nothing was done and then industry started
suffering because there was not enough energy available, said
Perrelli. It has to come to an end. We still have open spaces inside
the grid between the transmission lines that are so big that you could
fit a country like France inside, he added.

___

FUTURE POTENTIAL
Looking beyond the current decade-long plan, Fiuza and Tolmasquim
agree that one of Brazils best-known attractions the sun will also
have a huge part to play in future energy assessments.
Fiuza said he has seen unpublished estimates suggesting
solar potential in Brazil could be four or five times the wind power
potential and he expects his company to be heavily involved in
exploiting it as the costs of doing so come down.
The solar potential for Brazil is huge, he said. We have to
explore wind sources that are cheaper in the first instance and think
about solar in four or five years.
Tolmasquim agrees: We are probably not going to use all the
hydro potential in the Amazon because we have to balance the
potential with the environment. He adds: The cost of solar power
is reducing very quickly in the world, so probably after 2020 it will be
very important in Brazil.
If developers cant wait that long, then there are clearly many
other emerging opportunities with significant plays available in the
wind, and bioenergy sectors particularly. Brazil is evidently a country
of the future, and thats no joke.
Robin Yapp is the Brazil correspondent for The Daily Telegraph.
___________
___________

e-mail: robin.yapp@hotmail.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________
RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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__________
-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT

______________

_______________

________________

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PHOTOVOLTAICS: SOLAR TRACKERS

FACING THE SUN


SOLAR TRACKERS
BOOST YIELDS
Adjusting the position of solar modules to track the
sun can increase system energy yields by up to
45%. What is available and who is building them?
David Appleyard investigates.

Manufacturers claim tracking


technology can increase
production by up to 45% in
some regions, compared with
modules at a fixed angle.
SUNPOWER

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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PHOTOVOLTAICS: SOLAR TRACKERS

he use of tracking technology allowing solar modules to follow


the course of the sun (and so optimise the incident angle of
sunlight on their surface) can increase electricity production by
around a third, and some claim by as much as 45% in some regions,
compared with modules at a fixed angle.
Generally, modules are fixed at the optimum angle for their
specific latitude. However, this is averaged over the course of a year,
and (depending on latitude) the optimal angle can in fact vary by 30
as the sun appears lower or higher in the sky.
The development of feed-in tariffs and other similar support
measures that reward PV producers per kilowatt hour delivered
to the grid has stimulated growing interest in maximising output
from a given area.
As with other technologies, increasing the complexity inevitably
introduces additional possibilities for malfunction and failure.
However, while tracker technology may be perceived as inherently
more risky than extremely simple fixed angle systems, growing
market exposure is boosting developers confidence in the reliability
of tracking technology.
TRACKER TYPES
There are two basic types of tracker system. Single-axis trackers
simply rotate about one axis, moving along an azimuth from east to
west over the course of a day. Double-axis trackers move not just
along a fixed azimuth but can alter the angle of elevation.
The numbers are latitude-dependent, but manufacturers figures
suggest that compared with fixed modules, single-axis trackers
typically increase electricity output by between 27%32%, while dualaxis trackers typically see a 35%45% improvement in output. Such
figures are impressive considering the lengths that the PV industry
goes to in order to improve cell performance by just a percentage
point or less.

OPEL Solar International Inc of Toronto makes high-concentration


photovoltaic (HCPV) panels and both roof- and ground-based solar
tracker systems. The companys TF-800 series horizontal single axis
tracker is a utility-scale tracking system that will increase the yield of
photovoltaic panels by up to 25%, the company says. The TF-800
incorporates an advanced programming feature that reverses the
motion of the tracker to eliminate inter-row shadowing, allowing for
larger systems to be installed in a smaller areas. A complete 10 kW
system can be assembled in less than four hours without the need
of special machinery, tools or welding in the field, OPEL adds.
In April, the company announced that it is supplying TF-850
single-axis trackers to Greenlight Power Company, a solar energy
development firm, for the launch of a 125 kW project to be installed
at a solar farm in a business park in Kent County, Maryland. This is
the first phase of a 1.4 MW solar development at the site.
In this case, the trackers should increase the projects energy
production by about 24% over what would be expected from the
same solar panels using a fixed installation, the company says.
This first phase of the Greenlight project is expected to produce
about 182 MWh of energy annually. OPEL says that its tracker
product line can be used with any type of solar panel technology,
providing greater layout flexibility for integrators and engineering
firms choosing a tracker.
Manufacturers of the simpler, single-axis devices have claimed
that the additional net energy yield delivered by a dual-axis system
over a single-axis system is frequently lost as a result of additional
installation, permitting and ongoing maintenance costs. And, such
systems are inevitably at greater risk of failure, having more moving
parts than a single-axis system. Furthermore, single-axis trackers
tend to have a lower profile, sometimes half the height of dual-axis
trackers, and are therefore more likely to receive planning permits
where the visual impact of an installation is important.

SINGLE-AXIS TRACKERS
Single-axis tracking is one of the most straightforward ways to
improve the potential performance of a commercial solar installation.

SUNPOWERS BIG DEAL


One of the worlds largest single-axis manufacturers is Californiabased SunPower Corp. The company has more than 400 MW

Single-axis manufacturers have claimed that the


additional net energy yield delivered by dual-axis
systems is often lost due to increased costs.
SEDONA ENERGY LABS

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Sun in, electricity out.


If only everything in the future
could be so predictable.

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

INCREDIBLY STABLE FOREC AST.


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_____________________

* In a long-term study conducted by the FraunhoferInstitute the SCHOTT Solar modules still achieved over
90% of their original performance even after 25 years.

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Lets talk about facts.


Sovello Pure Power series

Quality, Made in Germany


Every Sovello Pure Power solar module passes
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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________
www.sovello.com
__________________
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PV: SOLAR TRACKERS

installed on four continents, though not all of this capacity is mounted


on tracking units. Nonetheless, its T20 tracker produces up to 30%
more energy than fixed-tilt ground systems, the company says.
In late July SunPower announced the completion of Australias
largest solar farm to use a tracking system. The 1 MW Uterne solar
power plant in Alice Springs incorporates over 3000 SunPower solar
panels installed on the companys T20 tracker system.
Florida Power and Light (FPL) teamed up with SunPower to
build the DeSoto Next Generation Solar Energy Center, completed
in 2010 which, at 25 MW, opened as one of the largest solar PV
plants in the US. Its annual estimated generation is about 42 TWh.
The plant consists of more than 90,500 solar panels.
A similar development, the Space Coast Next Generation
Solar Energy Center, was commissioned in 2010 and also uses
SunPowers solar panel technology. The projects are two of three
solar developments from FPL in the state that will produce some
110 MW combined. Officials from NASA and FPL commissioned
the 10 MW Space Coast project on the basis of a public-private
partnership. It is located on NASA property at the Kennedy Space
Center and comprises some 35,000 modules.
Meanwhile, close to 1000 miles (1600 km) north in Chicago,
Exelon and SunPower developed the largest urban tracking solar
power plant in the US, a US$60 million 10 MW installation which
opened in 2010. And, in perhaps the companys best known solar
energy development and another of North Americas largest
photovoltaic systems at Nellis Air Force Base (AFB) in Nevada,
SunPower was part of a joint project of the US Air Force, MMA
Renewable Ventures LLC, and Nevada Power Company to develop
the 14 MW system at the site. Over the next 30 years this solar
system will help Nellis reduce carbon emissions by 24,000 tonnes,
and will save the Air Force some $1 million per year in energy costs,
the developers say.
At Nellis AFB SunPower designed and built the 72,000 module
plant, again using its T20 Tracker system, while MMA financed and
is operating the facility, selling electricity to the base at a guaranteed
fixed rate for the next 20 years.

On the other side of the Atlantic, in Spain, the 18 MW Olivenza


solar power plant in Badajoz was completed by SunPower just prior
to the Nellis project commissioning using its T20 Tracker system
and covering a total of approximately 70 ha.
MARKET INTEREST IN SINGLE-AXIS
It is perhaps the high profile of such headline projects that continues
to excite interest in single-axis trackers, not just among developers
and consumers, but also from manufacturers. For example, Solon
AG, which already manufactures its dual axis Mover tracking
system, has now expanded its product range to include its Tauri
system, a complete PV module-based single-axis tracker. The
standard unit consists of 12 module rows, each containing 32 large
Solon modules, and the system is tracked along the horizontal axis
using hydraulics. In addition, automatic backtracking corrects the
position of the units as needed to prevent the modules from shading
one another. Depending on latitude, the company says its device
can increase the electrical output by up to 25%. The system is also
robust, its developers say, adding that it is designed for wind speeds
of up to 80 km/hour in its operating position and up to 130 km/hour
in storm position.
Meanwhile, Mecasolar has also expanded its product range
with a single-axis tracker. The company says its ground-mounted
single-axis azimuthal seasonal tracker increases production by
5% compared to similar traditional trackers, and by 28% when
compared with fixed solar structures.
In its most recent figures Mecasolar reported that it had
supplied 311 MW of trackers worldwide in the first half of 2011,
amounting to 24,000 units. For the second half of 2011 Mecasolar
has an order book of 22 MW. The company also claims to lead
the tracker system market in Italy, Spain, Greece, Canada and
the US, and has furthermore expanded into new markets such as
Egypt, Israel, Colombia, Belgium, Algeria, China, Sweden, Cyprus,
Bulgaria, Britain and Australia, among others. Additionally, plans are
under way to enter markets in Mexico, Brazil and India, where the
company plans to open an office in 2012.

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PV: SOLAR TRACKERS

As with other designs, a key advantage of the azimuthal tracker


Rather than going large, some single-axis tracker manufacturers
is that it allows manual adjustment from 2535 on the polar are focusing in on a slightly different market. For instance, Germanys
axis in response to seasonal changes. This tracker system allows DEGERenergie, which manufactures large tracking systems, has
a maximum of 12 kWp to be positioned on its 90 m2 mounting developed the single-axis TOPtraker 8.5 system with an elevation
surface and, like the Solon system, can withstand winds exceeding angle of 20o30o. This system is designed for a module area surface
130 km/hour. Each tracker carries its own automatic tracking device of 8.5 m2 and can be operated with all available solar modules.
with astronomical programming, as well as a three-phase electrical Depending on the module type, the systems rated power is between
tracker, with parasitic consumption not exceeding 40 kWh/year, the 500 and 1300 Wp. The TOPtraker 8.5 system was designed for
the requirements of the US market, being suitable for small and
company claims.
Late last year a+f GmbH concluded a 12 million order that will medium-sized solar plants and individual self-supply. It is optimised
see its SunCarrier devices installed in Italy for the first time. In the for building integration.
We noticed that the importance of self-supply is rapidly increasing
Apulia region in southern Italy, solar parks will be constructed with a
total output of about 2 MW. The SunCarrier is a single-axis tracking worldwide. With our extensive tracking portfolio, we are perfectly
system that achieves an additional yield of up to 35% in comparison suited to support and promote this development, said Michael
Heck, vice president for marketing and sales at DEGERenergie.
to conventional market solutions, says the company.
With a module surface
DOUBLE-AXIS TRACKERS
area of up to 287.5 m2, the
Mecasolar reported 311 MW of trackers
SunCarrier presuming typical
Dual or double-axis trackers
supplied worldwide this year, amounting to
modules are fitted provides
are also attracting considerable
an average output of around 38 24,000 units distributed around the world
market interest. For example,
kWp. If high-efficiency modules
since the companys market
are used, output can be increased up to 53 kWp per tracking system. launch in 2005, more than 10,000 of its Movers have been installed
Zomeworks of New Mexico has also produced a number of worldwide, Solon says.
novel single-axis designs. In the companys Cable Tracker system,
And, as manufacturers of double-axis machines are launching
PV modules are mounted on two suspended cables. The system products into the single-axis sector, the previously single-axis
is oriented on a north-south axis and tracks east and west. There manufacturers are also pursuing new product developments.
are two models to choose from depending on location and power
Titan Tracker has released a new a generation of dual-axis
requirements, using either active or passive tracking.
trackers which it claims can reduce costs by about 30% and
The passive tracking system uses the shifting weight of a increase yields by up to 45% thanks to improvements such as the
liquid refrigerant and a proprietary shadow plate to keep the array centralisation of the elevation driving and reduction of personnel
of modules pointed at the sun. Meanwhile the companys active hours in the manufacturing process.
tracking system uses a controller and one or more actuators for
These models are aimed at solar parks located in areas with
targeting. The active tracking is more accurate but more expensive environmental restrictions, such as visual impact, and are rated for
than passive tracking, says the company, and requires some a wind speed of 125 km/hour at any position. With a maximum
electronics maintenance. The active system also requires a power surface area of 124 m2 for modules, Titan claims energy production
of up to 45% more than fixed systems at 40 north latitude.
source for the controller and various actuators.

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PV: SOLAR TRACKERS

Titan saw more than 15 MW of its devices installed in Spain in


the first year of launch. Several major projects followed, including the
biggest solar park in Catalonia under the terms of an agreement with
Flix Solar, from Finances Personals Group, to supply 128 dual-axis
solar trackers. Located in Flix, the 12 MW installation is one of the
largest double-axis tracking solar parks in Spain.
Titans R&D department is also currently developing tracker
prototypes for CSP systems, both tower and dish-Stirling.
ADES, a research and design engineering company with
more than 150 MW of solar trackers installed since 2004 and
activity in Spain, Italy, Greece and Canada, features a dual axis
solar tracker design with efficient land use (1 MW on 3.5 ha), a
patented traction clamp, an elliptical shape and lowered height to
decrease shadowing. In this autonomous design a battery system
provides the voltage and current necessary for all tracker movements,
protecting against electrical failure due to grid proximity.
MARKET DEVELOPMENT
Despite the prospects for growth of the tracking sector, tracker
developments are inevitably impacted by the wider economics of the
PV sector, and this has clearly been hit hard by the ongoing financial
crisis. The higher capital costs of such installations, together with a
residual perception of lower reliability and therefore greater project
risk, are potentially making tracker developments more difficult
to finance in the current risk-averse economic climate. Ongoing
operations and maintenance costs also are higher.
There are a number of other influences at work too. As the costs
of silicon-based modules fall in response to expanded production,
a key driver for the installation of trackers maximising their output
to improve return on investment becomes less critical. If the site
is large enough, it may be as cost-effective to simply cover a larger
area with fixed modules. Furthermore, the growing strength of the
thin-film segment may also potentially erode the tracker market. The
logic is that with a lower overall efficiency, thin-film modules require
more tracker units for a given level of output, increasing their relative
cost in a projects development.

As concerns over reliability and O&M costs subside, the use of


tracking technology in the solar sector is expected to become
far more prevalent.
SEDONA ENERGY LABS

However, these potentially negative factors may still be


outweighed by the fact that in the concentrating solar PV (CPV)
and the concentrating solar power (CSP) sectors, precise alignment
is critical. Although still a relatively small market, the impact
of CPV and CSP installations on the tracking sector is clearly
becoming influential.
The production gains available from the installation of tracking
technology simply cannot be ignored by developers and, as concerns
over reliability and operating and maintenance costs subside, the use
of tracking technology in the solar sector is anticipated to become
far more prevalent. After all, the resources are there and it seems a
shame not to use them.
David Appleyard is chief editor of Renewable Energy World,
with additional reporting by Tildy Bayar.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

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XXX4."4PMBSDPN
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WIND: ENHANCING PROFITABILITY

Efficient transformers can curb operating costs


by reducing backup power requirements
RES

TRANSFORMING
PROFITS
ERR TOWARD EFFICIENCY
Wind farms must be designed to maximise generation available for sale while
minimising operating costs. Robert Berman shows that properly optimised
low-core-loss transformers can boost efficiency and profits.

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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WIND: DESIGN AND OPERATION

he profitability of wind generation is dependent upon the


design. If your wind farm is not designed to maximise available
generation and minimise operating costs, chances are your wind
farm will haemorrhage cash and profits for as long as you own it.
However, the weak link in most designs is often not the turbine but
the transformer. Choosing the right transformer can increase sales
by as much as 17 MWh annually for a 1.5 MW turbine, depending
upon wind conditions. Operating costs can be reduced by as much
as US$2800 per turbine annually in avoided backup power costs
for periods when there is no wind. Losses can be substantially
more if low first cost is the dominant consideration. In regions
such as California, for example, where the generation from wind
is 22% of rated capacity, a turbine will be idle 50% of the time.
When turbines are idling generation is not zero, it is negative.
This is because there is a transformer connected to each turbine
to step up the voltage to the wind farms substation level, and
that transformer must be kept powered. Since a transformer is
always powered from the higher voltage side, it will draw from the
substation and ultimately the system grid. Utility customers of wind
farm merchant generators are aware of this and manage the matter
contractually. Typically, there is a backup power charge whenever
the wind farm draws power from the system. This backup power
charge may be as much as three times the price at which the wind
farm sells electricity to the utility.
Increasing the transformer efficiency will boost the generation
available for sale, but this is only a partial solution, and does not
address the underlying problem. Although load losses increase
as the square of the load, this coil efficiency does not address
the problem that the transformer may have no load for a relatively
large proportion of the time, and operate at a reduced load for the
majority of the time that the turbine is generating power. Profitability
comes down to minimising the core (or iron) losses. This is a
constant 24x7x365 loss the power required to actually operate
the transformer the power required to keep the core excited.
ASSESSING OPTIMISED TRANSFORMERS
To demonstrate the importance of properly optimised low-core-loss
transformers, optimally designed 1750 kVA steel core (M3 grade
steel) and low-core-loss amorphous core (SA1 grade material)
step-up transformers have been considered in this analysis. A
range of wind energy selling prices was assumed, from a low of
$40/MWh to a high of $170/MWh, and a medium price of
$100/MWh. A renewable energy production incentive (REPI) or
production tax credit (PTC) of $0.021/kWh, as appropriate, was
included, and a backup power price of three times the selling price
was assumed. Finally, a variety of wind conditions was considered.
Both the steel core and the low-core-loss amorphous
metal step-up transformer were optimised for the same specific
combination of energy price (including backup price) and wind
condition. Both transformers were optimised to minimise total
owning costs (TOC) including the cost of the transformer as well as
the cost of both load and no-load losses capitalised over the life of
the project (assumed to be 25 years). The incremental results, on a
per turbine basis, for a wind energy selling price of $40/MWh show
that, for example, under light wind conditions use of a low-core-loss
amorphous metal transformer will result in an additional 14 MWh
of power available for sale, resulting in $567 more in sales revenue

48

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The weak link in most wind farm designs is often not the turbine
but the transformer
BUNDESVERBAND WINDENERGIE E.V.

and $297 in PTC or REPI revenue. The greatest change in the total
increase in cash flow of $1613 is a reduction in purchased power
of $749 at the backup power rate. Even without the savings in backup
power, the increase in cash flow is $864, and the increase in profits
is $553 ($1302 with savings in backup power).
The results are even more striking in areas where carbon charges
would apply. The reduction in the carbon footprint is between nine
and 10 tonnes per turbine per year. Assuming a carbon charge of
$25/tonne, the additional renewable energy available to displace
fossil generation would be worth $214 in carbon credits.
Similar benefits are available at higher energy prices and under
moderate and heavy wind conditions. The results under medium
and high energy prices show that as wind conditions improve
from light to heavy, the amount of additional generation available
for sale increases and the relative amount of time the turbine is
idle decreases. However, the benefits of a low-core-loss step-up
transformer are still significant, even as the importance of purchased
power savings declines. That is, the additional sales revenue from the
lower operating cost of the low-core-loss amorphous transformer
alone substantially increases profitability. Indeed, the increase in
the subsidy alone exceeds the additional cost of the transformer,
providing the increased benefits at no additional cost.
SUB-OPTIMISATION RISKS
As a check on the robustness and reliability of these analytical
results, their sensitivity to estimates of future prices was calculated.
What is the cost of being wrong? What if energy prices materialise
that are higher or lower than anticipated? Is a conservative strategy
one that errs on the side of being too efficient or one that avoids
spending too much? As a good rule of thumb: when in doubt, err
on the side of greater efficiency.
Sensitivity analyses considered the consequences of three suboptimal decisions:
1. Low energy prices for the design when medium energy prices
actually emerge;
2. Medium energy prices for the design when high energy prices
actually emerge; and
3. High energy prices for the design when medium energy prices
actually emerge.

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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www.siemens.com/energy/eneas-wind2011

E50001-E720-F297-X-4A00

_____________________________________________

Out-of-the-box solutions ensure faster


ROI and quick project implementation
ENEAS generic solutions for wind power

All indicators point to continued growth for onshore and


offshore wind power for economic reasons and also
because wind power is an important contribution to CO2
emissions reduction in power generation. It pays off to
speed up new wind projects.
ENEAS generic solutions for wind power are specially
designed to provide an off-the-shelf solution for wind
power purposes. Based on Siemens vast experience in
automation of power-collection grids for wind farms of
all sizes, they ensure optimal processes throughout the
entire project life cycle of a wind power plant.

ENEAS generic solutions for wind power considerably


reduce the effort usually required for the clarification of
details and engineering. Comprehensively tested applications and templates increase the overall project quality
and transparency, and they accelerate the entire project
planning and implementation process.

The preconfigured and pretested, universally applicable


solutions for switchgear on all required voltage levels suit
wind power plants from a single turbine to large-scale
wind farms.

Answers for energy.


-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________

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WIND: DESIGN AND OPERATION

The sensitivity analysis does not alter the conclusion that there is
no combination of energy price and wind condition under which the
additional cost of the low-core-loss amorphous transformer does
not substantially improve profitability. The results support the need
to err on the side of greater efficiency, especially when interest rates
are in the low to moderate range, but they do not necessarily support
a recommendation to always buy the most efficient transformer that
can be constructed, except at very low interest rates.

Assuming an energy price too low results in


lower profitability, and the negative impact
is greater the lower the price assumed
The risk associated with under- or over-estimating energy prices
is not symmetric. You are better off if your assumption of future
energy prices is too high rather than too low, as this assumption
will result in being more efficient rather than optimal, giving rise
to greater sales and increased avoidance of backup power costs.
Energy prices that are conservatively low lead to lower sales and
reduced protection against backup power costs. Specifically,
assuming an energy price too low results in lower profitability, and
the negative impact is greater the lower the energy price assumed.
Although the cost of the transformer is less, the under-optimisation
leads to lower sales. When the energy price is overstated and
the transformer is over-optimised, the loss due to the higher cost
transformer is offset by higher revenues for greater kWh sales.

LOW PRICE DESIGN IN A MEDIUM PRICE WORLD


The consequences of using low energy prices to optimise the
transformer are firstly fewer kWh sales and secondly a greater
need for backup power. Offsetting that lost opportunity is a lower
cost transformer.
Analysis shows that the low-price design will result in a
transformer that is $2293 to $2999 less expensive, depending upon
wind conditions. However, the transformer will be less efficient. The
loss in annual sales revenue alone of $346 to $413 is greater than
the annual savings in principle and interest of $179 to $235. The
loss in subsidy payments of $73 to $87 and increase in backup
power costs of $88 to $108 further lowers profitability.
MEDIUM PRICE DESIGN IN A HIGH PRICE WORLD
Similar to the first case, the consequences of using medium
energy prices to optimise the transformer are fewer kWh
sales and a greater need for backup power, offset by a lower
cost transformer.
This analysis shows that the medium-price design will result in
a transformer that is only $1702 to $2275 less expensive, resulting
in a savings in capital charges of $133 to $178, depending upon
wind conditions.
However, the less efficient transformer will result in greater
losses in annual sales revenue alone of $242 to $299, which more
than offsets any savings in transformer cost. Moreover, the loss in
subsidy payments of $31 to $38 and the increase in backup power
costs of $20 to $87 further reduce profitability.

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_____________________

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e info@gocentral.co.uk 24hr Customer Service Line 0151 546 6000 _________
gocentral.co.uk

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________
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WIND: DESIGN AND OPERATION

HIGH PRICE DESIGN IN A MEDIUM PRICE WORLD


By contrast, the absolute impact on profitability is much less for an
over-optimised design that of designing for high energy prices
when energy prices remain at the medium level. The consequences
of using high-energy prices to optimise the transformer are a higher
cost transformer offset by greater kWh sales and a reduced need for
backup power, both evaluated at the actual, medium prices.
These results show that the high-price design will result in
a transformer that is $1702 to $2275 more expensive, leading to
additional capital charges of $133 to $178 depending upon wind
conditions. However, the resulting more efficient transformer
will produce greater annual sales revenue
of $148 to $219, which offsets the transformer
cost. The additional savings in backup power
costs is $12 to $53 so the savings and the costs
of the overly efficient transformer approximately
balance. At relatively low interest rates, the
impact is slightly positive. At higher interest
rates, resulting in higher capital charges, the
results could be somewhat negative. In any
case, the differential risk favours erring on the
side of efficiency in resolving uncertainty.

idle while others are generating power, rendering access to backup


power unnecessary. The analysis and the increased profitability do
not, however, depend upon the savings in backup power costs,
which are simply additional enhancements to the profitability.
Robert A. Berman is a principal of Berman Economics.
e-mail: Berman.Economics@gmail.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

THE COSTS OF IMPROVING EFFICIENCY


There is no combination of energy price and
wind condition under which the additional cost
of the low-core-loss amorphous transformer
does not substantially improve profitability.
Indeed, the annual incremental capital charge
is always less than the additional PTC/REPI
revenue alone. Its as if the increase in the
subsidy exceeds the additional cost of the
increased availability of power and associated
sales revenues.

Profits are improved under all


conditions with a low-coreloss amorphous transformer
The preceding analysis is based on
transformers designed using a commercial
transformer design model, and on operation
simulations under various wind conditions.
Several wind farm developer/operators have
changed their design practice to include lowcore-loss amorphous step-up transformers
and have commented on the additional,
significant increase in profitability. The models
presented here, however, have not been
groundproofed by calibrating the theoretical
results with actual field data. Also, due to the
absence of detailed operational experience
data from wind farms of different sizes, no
attempt was made to model the diversity
inherent in large wind farms. That is, during
some period of time some turbines may be

0.5 m  10 kHz  12  20 m
Temposonics sensors detect positions with a resolution of 0.5 m and
sample rates up to 10 kHz while offering 12 selectable analog or digital
outputs. All benets are available on stroke lengths up to 20 m.

SPS 2011 - Nuremberg


Hall 7A, Booth 510
The Measurable Difference

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________
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GEOTHERMAL: GROUND SOURCE HEAT PUMPS

DOWN TO
EARTH ENERGY
HEAT PUMPS ON THE RISE
In the second of our two-part feature on the latest developments in geothermal
energy, Chris Webb looks at ground source heat pumps (GSHPs) and
their relatives. Smaller, more compact and closer to the surface, heat pump
technology offers a novel route to renewable energy at domestic, commercial
and industrial scale.
Ground source heat pumps are one of the most advanced technologies available for space heating, hot water and cooling
CEMENTATION SKANSKA

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GEOTHERMAL: GROUND SOURCE HEAT PUMPS

round Source Heat Pumps (GSHPs), and their application in


geothermal heat extraction, have matured as a technology in
recent years. But their take-up varies widely in Europe from country
to country. Climatic and geological conditions differ a great deal,
and economic circumstances and traditional construction methods
are wildly dissimilar.
At the recent Ground Source Live! Conference in Peterborough,
UK, Philippe Dumas, manager of the European Geothermal Energy
Council (EGEC), attempted to identify some of the reasons why
countries such as Germany and Sweden lead the league table
of developers, while those of the Baltic states, for example, lag
considerably behind. Yet even in those countries which were quick
to seize the initiative, the speed of further development has slowed.
Heat pump sales of all types may be generally stable, but GSHPs
share is decreasing alarmingly in some parts of Europe, particularly
where the market is more mature, while interest is surging in southern
European Mediterranean countries, which began at a low level.
Germany is a good case in point, and just such a mature market,
where penetration for GSHP in new, single family homes had risen
to almost 20% by 2008, with similar interest shown in countries
such as Finland, Austria and Switzerland. World Geothermal
Council (WGC) figures report that last year Sweden led the group
of European developers with a total of 4.5 GW of installed capacity,
followed by Germany (2.2 GW), and France and Switzerland (with
about 1 GW each). Newer EU Member States have little capacity as
yet. The industry, Dumas concluded, was seeking new incentives to
push development still further forward.
In his presentation Dumas observed that countries offering
financial incentives, such as direct grants, tax reductions, reduced or
zero interest rate loans, green certificates and insurance were likely
to attract rapid growth. But, he said, fossil fuel alternatives without
externalities were still too cheap and, in many cases, receive more
subsidies. Further, it remained difficult to sell the long-term payback
associated with GSHP.
There are some positive indicators, however, and Dumas cited
the UKs Renewable Heat Incentive (RHI) as a promising scheme.
With the first phase in force since March for non-domestic properties,
the scheme will make payments to the owner of the installation
quarterly over a 20-year period. Tariff levels are calculated to bridge
the financial gap between the cost of conventional and renewable
heating systems. Heat output is metered and the support calculated
from the amount of heat used for eligible purposes, multiplied by the
tariff level. For more on this programme see page 22 of this edition.
MARKETS AND TAKEUP
GSHP designers and installers are winning some ground in
educating a sceptical public. GSHP is one of the most advanced
technologies available for space heating, hot water and cooling,
because the earth itself stores energy and is an extremely reliable
and constant energy source. It creates no harmful emissions and
uses a relatively small amount of electricity to drive the required
pumps and/or compressors. GSHP can help cut heating bills by up
to 70% in some cases, and installers in the UK, for example, could
qualify for significant grants. Working alongside existing heating
systems, GSHP can also help cut carbon emissions, potentially to
zero if systems are power using, say, renewable generated electricity.
A recent report, Geothermal Heat Pumps and Direct Use by

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Pike Research, cited cost and lack of consumer awareness as the


primary obstacles to increased adoption of geothermal heat pumps.
Yet Pike suggests that direct use of geothermal energy using heat
pumps is on the rise.
The potential for geothermal heat pumps is high, according to
industry analyst Mackinnon Lawrence, but installations currently
represent just 1% of the heating and cooling market overall. However,
growing electricity demand, rising energy prices and increasing
regulation around emissions and efficiency are all expected
to push demand higher. In the US, analyst Global Information
expects geothermal heat pump shipments to double in volume to
326,000 units annually by 2017, while Pike Research anticipates
that heat pumps will represent a significant majority of the global
market for geothermal direct use applications, accounting for some
84% of total capacity.
For example, Fort Wayne, Indiana-based WaterFurnace is
currently a supplier of geothermal equipment across many of
the agencies of the federal government. The company brings
together high efficiency geothermal heat pumps and controls, and
its LoopMaster ground heat exchanger design and installation
services is an integrated resource to help government agencies
meet their energy and sustainability objectives, the company claims.

When geothermal systems are used in


conjunction with PV systems, first costs
are reduced and efficiency is improved
WaterFurnace is currently working with a partner, Johnson
Controls, to install the Armys first geothermal central loop application
at its Fort Bragg base, located in North Carolina. This project links
barrack buildings and office buildings to a central water loop which
is ground coupled under an athletic field. This central loop feeds
heat pumps to provide year-round HVAC comfort. Reversible chillers
are supplied with water which is then heated to provide for the entire
bases significant domestic hot water needs.
The buildings in the system have different heating and cooling
demand profiles, allowing for the transport of energy where it is
needed. When geothermal systems are used in conjunction with PV
systems, there is a significant reduction in first cost of these systems
and a higher overall system efficiency, the developres report.
Heat pumps supply more energy than they consume by using
a refrigeration cycle to absorb heat from the environment and raise
it to a suitable level for heating buildings or providing hot water.
The process can operate in a reverse cycle to provide cooling for
buildings as well. Even with the electrical demands of the pump or
compressor cycle, heat pumps can provide a 50% reduction in CO2
emissions compared to traditional technologies.
Where heat pumps are used in conjunction with combined
heat and power (CHP), the electricity generated by the CHP unit
drives the electric heat pump, and the buildings heating or cooling
requirement is satisfied by the combined output of the CHP and the
heat pump. This fusion of sustainable technologies delivers even
greater efficiencies and CO2 savings, and is, for example, being
used by UK company ENER-G to power and heat the Malvern
Community Hospital, in central England.
ENER-G is one of a growing number of providers now benefiting
from official certification for its expertise in renewable heat pump

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GEOTHERMAL: GROUND SOURCE HEAT PUMPS

technology in line with exacting technical standards set out by the


UKs Microgeneration Certification Scheme (MCS). The company is
also a keen advocate of the governments Renewable Heat Incentive
(RHI). Typically, it says, a 200 kW ground source heat pump,
operating for eight hours a day (such as at a school or moderately
sized business premises) will qualify for payments of 3 pence (4.5 US
cents) for every kWh of useful heat generated, creating a payment of
some 210,000 (US$342,000) over the 20-year duration of the tariff
(based upon 350 MWh of heat produced per year).
Remaining in the UK, the Longfield Academy in Kent with
places for 1150 students combines GSHPs with solar thermal
technology to maximise energy efficiency. By working in tandem,
these renewable technologies supply heating and hot water to the
academy, together with passive underfloor cooling in the summer
months. This is projected to reduce the academys CO2 emissions
by up to 40%, it says.
Both technologies were supplied and installed by ENER-G as
part of the sustainable design brief set out by Carillion, which is the
main contractor on the project. The architect is Jestico and Whiles.
The specialist science and arts academy is situated on the site of
a former school. ENER-G installed 35 boreholes and completed
work on the plant room to accommodate four ground source heat
pumps with a combined capacity of 200 kW. The company also
installed a total of 22 solar thermal vacuum tubes covering 44 m2 of
the academys flat roof.
Lee Marshall, project director for ENER-G Sustainable
Technologies, says: In the summer and spring months, any surplus
solar energy not required for hot water will be diverted to the ground
loop, where it can be stored to recharge the ground with heat during
the colder winter months, thereby increasing the efficiency of the
heat pumps. The fusion of these two renewable technologies is used
widely in countries such as Germany, but is not so well developed
in the UK.
EUROPES LARGEST SYSTEM
Europes largest geothermal lake loop energy system was recently
completed and commissioned at Kings Mill Hospital in the Ashfield
district of Nottinghamshire in Mansfield, England. The project,
designed by Geothermal International, uses Slim Jim Geothermal
Lake Plates. According to Alan Watts, of AWEB Supply in Baton
Rouge, Louisiana, the project is the largest of its kind outside North
America. The hospital is now healing patients while helping to heal
the environment, he says.
The system utilises Kings Mill reservoir, a medieval millpond
expanded in the 1830s that once acted as a headwater for a
dozen mills along the River Maun. It is now a spectacular wildfowl
sanctuary, used extensively by the public and a local sailing club.
Great care was taken to lessen the environmental impact of work at
the lake. The Kings Mill Reservoir Sailing Club assisted in guiding
Seaflex floats used to carry plate installations to their locations.
The reservoir, separated from the hospitals grounds by a major
highway, acts as the heat exchange for a 5.4 MW cooling and
5 MW heating system. The manifold is across the street from the
hospital, at the reservoir. Reverse return manifolds at the reservoir
accommodate seven 200-tonne Slim Jim banks using directionally
bored lines to the pumping room across the street, Watts explains.
AWEB is responsible for the design, manufacture and distribution of

Combined heat and power (CHP) systems together with ground


source heat pumps can supply under-floor heating and hot water
ECOVISION

the plates worldwide. To date it has shipped plates to more than 40


US states, in addition to Canada, the UK and South Korea.
New buildings, of course, are not the only ones to benefit from
GSHP technology. Renewable energy specialist Ecovision, known
for its water source heat pump installation at Castle Howard in York,
has seen owners of many more ancient buildings subsequently
turning to the company for heat pump designs. A combination of
ground, water and air source heat pumps coupled with solar power
are now collectively radically reducing energy bills and carbon
emissions nationwide, the company claims.
Ecovision has designed and installed many closed loop water
source systems but Bishops Palace, a medieval building, posed a
more complex challenge. The Palace is surrounded by a moat, and
it is from here that the renewable energy is sourced for the newly
constructed visitors centre. It was not possible to drain the loop
area prior to installation. An array of ground loops were designed on
loop support frames and a diver then guided the loop array into the
final position before lowering it under the water. The array sits on the
moat bed but is lifted by weighting blocks, which keep it in position
and hold the bottoms of the loops 200 millimetres off the moat bed.
Neil Otter, Ecovisions operations director, commented: We
have installed many closed loop water source systems using the
same loop layout strategy. However, in the past we have had the
luxury of a dry surface to construct them. The challenge at Bishops
Palace was to get the loop set in exactly the right position by floating
it from the launch area on the bank into the final sunken location.
Calculations were made to ensure the loops, weighting blocks and
frame would float into position and remain in position when filled and

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CO-LOCATED WITH:

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GEOTHERMAL: GROUND SOURCE HEAT PUMPS

Creating an energy pile involves fitting


geothermal pipework in flexible plastic
loops to the pile reinforcement cages
CEMENTATION SKANSKA

operational. It was a challenging part of the installation.


The closed loop water source system comprises six 100-metre
coils headed into one larger flow and return which penetrates the
moat wall adjacent to the plant room. The heat pump has an output
of 22 kW and can achieve a maximum flow temperature of 70C.
Once completed, the system will supply all of the heating and hot
water for the centre.
Ecovision estimates the average temperature of the moat during
the heating season to be approximately 7C. The under-floor heating
has been designed to operate effectively at the lowest possible flow
temperatures. With this T across the system, the average CoP [a
measure of thermodynamic efficiency] of the heat pump system will
be approximately 5.2. This figures suggest that the system will be
about 20% more efficient over the course of the year when compared
with an equivalent ground source heat pump system.
The return from the RHI will be in the region of 1700 (US$2550)
per year. The alternative conventional oil system would have cost
approximately 2900 ($4350) per year to heat the building. The
heat pump will cost approx 1200 ($1800) per year to run, giving a
combined annual financial benefit of 3400 ($5100). The project also
received funding from the heritage lottery fund.

cages. Once the piles are constructed these loops are linked to
further plastic pipes embedded in the concrete floors, walls or
ducting within the building, leading to a heat pump in the plant room.
The system has been used at Neo Bankside, a residential
development in Southwark, London, consisting of four individual
multi-storey buildings ranging in height from six to 24 storeys. These
buildings contain a total of 197 apartments and penthouses and
1044 m2 of ground floor retail units. The site is located close to the
river Thames and adjacent to the Tate Modern art gallery. Around the
circumference of the development, Cementation constructed over
400 linear metres of hard firm secant wall using a continuous flight
auger technique to form a single storey basement.
Out of the 176 piles used in this construction, 130 were
designated energy piles, and have had geothermal loops installed
within. These piles contain several loops, the number of which
depends on the diameter of the pile. The bigger the pile, the more
geothermal capacity and hence the greater the number of loops that
can be installed. The piles form an integral part of the developments
ground source heating and cooling system. In order to gain maximum
output from the piles, the geothermal loops had to be installed to the
full depth of the bore.

ENERGY PILES
Cementation Skanska is a contractor offering an innovative process
which uses foundation piles to transport and store geothermal
energy from the surrounding ground. Creating an energy pile is a
relatively simple process involving the introduction of geothermal
pipework into the pile. Each flexible plastic loop (generally one tube
down and the return tube back up) is fitted to the pile reinforcement

Chris Webb is a freelance correspondent for Renewable Energy


World.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

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POLICY & MARKETS: PROTECTIONISM

THE PERILS OF
PROTECTIONISM
MANDATES MAY PROVE
COUNTERPRODUCTIVE
A mixture of volatile oil prices and new environmental legislation points
to renewable energy enjoying a period of unparalleled worldwide
growth over the next 10 years. But, reports Richard Baillie, various
forms of protectionism threaten to halt the industry and prevent it from
realising its full potential.

Protectionism policies could substantially slow Europes transition to a low-carbon economy


EARTHLY PICTURES

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POLICY & MARKETS: PROTECTIONISM

rotectionism in the renewable energy industry takes many forms


depending on location and sector. For example, in the US, Ohio
is stringently enforcing a law that half of its mandated renewable
energy must be supplied through in-state production.
Partly to avoid problems with the Constitutions commerce
clause in relation to interstate transactions, other US states are less
obviously protectionist but nevertheless still require a degree of local
production. Some states such as Colorado and Missouri apply a
1.25 multiplier to renewable energy certificates produced from instate resources.
The theory is that bringing in large-scale renewable energy
imports before local development has a chance to get going could
kill nascent local renewables industries.
The good news for free-marketeers is that not every state has
jumped on the protectionist bandwagon. Indeed, California has
taken a strong stance against it, with former state governor Arnold
Schwarzenegger welcoming clean energy from other states in order
to keep electricity prices low.
I am totally against protectionist policies because it never works,
Schwarzenegger said while he was still in office, adding: You have
to understand that we get our water from outside California. We get
it from the Colorado River, for instance. Why can we get the water
from the Colorado River but we cant get renewable energy from
outside the state? We get most of our cars from outside the state;
why cant we get renewable energy?
Schwarzeneggers stand taken in response to bills in the
California state legislature that would also have boosted requirements
for solar, wind and other renewable resources but required a large
amount of the generation to come from within California contrasts
with the explicit encouragement given to in-state production in
some other states renewable energy requirements, which are seen
as job-creating mechanisms.
PROTECTIONISM IN THE SOLAR SECTOR
Protectionism in the industry is not just location-specific but also
varies across sectors. Solar is a particular cause for concern among
policymakers considering issues related to subsidies. Overall, the
solar sector has seen a massive boom, growing by more than 150%
in 2010 due to falling solar product prices and increasing subsidies
from governments looking to mitigate climate change, reduce their
dependence on oil and cut carbon emmissions.
But most of the worlds solar panel production has become
concentrated, with almost 60% occurring in China and Taiwan due
to lower labour costs, access to capital and good infrastructure.
In many cases, European solar module manufacturers have been
unable to compete with their Asian counterparts.
In the face of this competition certain European states have
shifted their solar policies. For example, France cut subsidies to the
solar power industry, citing massive imports of cheap solar panels
from China.
A similar shift is occurring on the other side of the Atlantic in
the heavily industrialised Canadian province of Ontario. There,
a comprehensive solar subsidy policy mandates that a large
percentage of solar components must be manufactured in Ontario
in order to benefit from feed-in tariffs (FiTs). The goal is to generate
13% of Ontarios energy from renewable sources by 2018, and zero
from coal by late 2014. The government says that the clean energy

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sector has created more than 13,000 jobs and is on track to reach
50,000 by the end of 2012.
Ontario has also managed to attract significant manufacturing
investment due to its local content requirements stipulating that
around 50%60% of solar modules use locally produced parts.
This has encouraged solar companies like Silfab and Canadian
Solar to set up module plants while companies including Enphase,
Schneider and SMA have established inverter plants in the province.

Japan, a major manufacturer of solar


panels, has taken Canada to the WTO
citing improper competitive practices
Ontarios protectionism has, however, angered other states.
Japan, which is also a large manufacturer of solar panels with major
solar companies like Sharp and Kyocera, has taken Canada to the
World Trade Organisation (WTO) citing anti-competitive practices.
Ontarios plans have also proved unpopular locally and the
scheme could soon be scrapped, just two years after its 2009
launch. Critics say the ratepayer-funded programme is an expensive
experiment that is increasing costs for consumers.
Ontarios opposition Progressive Conservative party, which is
leading in the polls ahead of an October election, has vowed to
scrap the programme. Even if the system survives it is likely to face
numerous legal challenges, which could force its eventual closure.
Further afield, Italy has brought in a solar subsidy law called
Conto Energia 4, which offers additional 5%10% in incentives for
solar components manufactured in the EU. This law is also likely
to prove unpopular in the long run, not least because much of
the manufacturing that feeds Italys solar industry occurs in Spain
and Germany. It could also lead to China and other manufacturing
nations taking Italy to the WTO.
India, too, has a law that states that solar modules must be
produced in the country to benefit from FiTs. Indeed, the law is
expected to become stricter, specifying that solar cells must also be
produced within India in future despite evidence that, in the long run,
such policies are almost always counterproductive, economically
inefficient and unsustainable.
MORE THAN ONE TRADE BARRIER
So-called green protectionism covers two types of trade barriers:
tariff and non-tariff. Under the former, a country taxes imported
wind, solar or other renewable parts or units. In India, for example,
renewable energy components are levied a 7.5% tariff, while Chinas
tariff stands at 8%. Brazil recently imposed a 14% tariff on wind
turbines up to a specific size.
Despite being less obvious, non-tariff trade barriers can often
be even more restrictive and onerous for overseas companies to
address. For example, China requires foreign companies that wish
to enter the Chinese market to form a local joint venture, giving
Chinese partners 51% ownership. Portugal has issued a wind
tender, announcing that it would award contracts only to bidders
engaged in research collaborations with local universities.
Even apparent victories can come with a hitch or two attached.
For example, the wind industry succeeded in persuading the
Brazilian government to drop its explicit local content requirement
from a public tender in December 2009. However, most of the

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ADVERTISING FEATURE: POLARIS ENERGY

POLARIS PROVIDES AN
INTELLIGENT GATEWAY
INTO ITALYS PV MARKET
A

cquiring a secure, long-term investment is not easy


considering the current uncertainties in global markets.
Many investors are searching for opportunities that generate
a steady return above 12% annually. Additionally, they want a
relatively safe investment vehicle, especially within the private
equity sector.
A paradigm shift has occurred in the Italian solar market,
transitioning investors focus from construction to acquisition.
Italys existing PV plants that are already financed and gridconnected are driving the market there. Polaris Energy provides
an intelligent gateway for parties interested in these types of
investments.
Luxembourg-based Polaris Energy, a private equity company,
has recently demonstrated some remarkable growth within the
Italian PV market. As international interest in the market steadily
climbs, Polaris is attracting the attention of investors throughout
the world. Many of those searching for alternatives to plummeting
or stagnant returns will be encouraged by the remarkable ability
of Polaris returns to consistently exceed 15%.
Polaris has developed a framework to make the acquisition
process seamless. The company will tailor proper investment
solutions for its investors, ranging from 200 kW 50 MW systems
depending on the desired level of investment. Polaris strengths

lie in its ability to facilitate all areas of the acquisition process


including general coordination, information gathering, valuation,
negotiations and due diligence. Polaris Italian speakers also
provide assistance in a country where English is a second
language.
The company enjoys the advantages of having cultivated
critical contacts throughout Italy and across much of Europe.
These invaluable relationships have furnished Polaris with
access to completed plants that are suitable for private equity
funds, hedge funds and other institutional investors. Without
question, this company sits at the forefront of Italys PV market.
Realising that capacity for solar energy far exceeds world
energy demand and that petroleum-based production has
reached its zenith, the company is now focused squarely on PV
development for the near future. Polaris is one of the few private
equity companies targeting rooftop solar on a scale that directly
benefits individual consumers and investors alike.
So whats next for Polaris? The company opened its
first office in California on 1 August, and future plans include
developing solar and wind power in California and Arizona as
well as rooftop solar in Italy.
For further information, please visit: ________________
www.polarisenergy.com

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POLICY & MARKETS: PROTECTIONISM

Solar panel manufacturer Abound Solar benefited from a $400 million loan guarantee from the US Department of Energy
ABOUND SOLAR/SOLARONE

developers that won projects there will seek local funding, and the
Brazilian national development bank only provides financing if a
certain percentage of the content is produced locally, meaning that
the local requirement is still effectively in place.
PROTECTIONISM IN THE WIND SECTOR
Lobbying the European Commission to recognise international
opportunities for discussion of the elimination of tariffs and non-tariff
barriers to wind and other renewables, comes the European Wind
Energy Association (EWEA), says its policy director, Justin Wilkes.
The wind industry has also been promoting the adoption of
policies such as Sustainable Energy Free Trade Areas (SEFTA) or
an Environmental Goods and Services Agreement (EGSA), both
of which offer free trade in renewable energy technologies, among
other measures.
We have been working closely with Vestas and other leaders in
the green economy to open up trade in technologies and services
that support the fight against climate change, said Thaddeus J.
Burns, GEs senior counsel for intellectual property and trade. We
support an EGSA that lowers tariffs and opens up markets.
Likewise, Vestas wants governments to commit to reducing the
costs they impose on environmental goods and services, said Michael
Zarin, the companys director of government relations. Removing or
at least substantially lowering these barriers would provide both an
important contribution to global climate change goals and a unique
opportunity for a sustainable, green-growth European business
model, he said.
PROTECTIONISM IN EUROPE
The fear is that protectionism could substantially slow the transition
to a low carbon economy. One area of concern in this regard is the
EUs Renewable Energy Directive, which contains a number of trade
barriers that could not only land the Union in court but could also
slow Europes shift from fossil fuels.
The Directive is a central aspect of the EUs 20/20/20 strategy
to combat climate change, and it is also a much-vaunted element
of other policy strategies such as steering the Common Agricultural
Policy (CAP) towards energy crops to make it more market-oriented.

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European biofuels protectionism is a case in point. Biofuel


production is heavily subsidised in the EU. Not only is it protected
by tariffs of up to 63% but the Global Subsidy Initiatives 2007 study
charged that subsidies now stand at up to 0.5/litre of biodiesel and
0.74/litre of ethanol.
Despite the subsidies, significant parts of the European
biofuels industry remain uncompetitive. But last year the European
Centre for International Political Economy (ECIPE) released a
report criticising the EUs biofuels policy. According to the report,
substantial subsidies, import tariffs and standards are used to
favour domestically produced biofuels, in a classic example of
green protectionism protectionism that is not motivated for the
benefit of the environment, but which uses environmental concerns
to pursue non-environmental objectives.

Trade barriers in the EU renewable


energy directive could land the Union in
court and slow its shift from fossil fuels
The study focused specifically on the Renewable Energy
Directive (RED), which sets a binding target for 20% of the EUs
energy use to come from renewable sources by 2020. Of this,
biofuels are to constitute a 10% share of transport-related energy
in all EU countries. In order to contribute towards these targets,
biofuel producers are expected to meet complex production criteria,
including a gradually increasing minimum level of saved greenhouse
gas emissions, and to avoid converting biodiverse areas or carbonrich soils used for growing feedstocks.
ECIPE has pointed out that foreign exporters may not be able to
prove compliance, effectively cutting them off from the EU market,
especially where eligibility for subsidies may be tied to meeting the
RED criteria. The Centre also noted that the EU fails to specify how
it could prevent the manipulation of ambiguities in the calculation
of carbon reductions, leaving it open to accusations of bad faith.
Europes lack of negotiation with other countries is identified as the
key problem with its approach.
ECIPEs report argues that a careful reading of the General
Agreement on Tariffs and Trade (GATT) and the Agreement on

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POLICY & MARKETS: PROTECTIONISM

Technical Barriers to Trade (TBT) shows that the EUs biofuels policy
clearly violates WTO principles and rules, and is unlikely to qualify
under any of the GATT criteria for exceptional treatment.
QUALIFIED SUCCESS
With protectionism a fact of life around the globe, many will question
whether anything can be done about it unless, as in California
and possibly Ontario, the political will exists to remove barriers to
renewable energy.
There have been some notable victories in resolving trade
disputes in recent months, although reading too much into such
victories could possibly be misleading.
For example, in June of this year US trade representative Ron
Kirk announced that subsidies for wind power manufacturers
given by the Chinese government from a public fund to domestic
companies would be discontinued.
The fund, which provided grants worth between US$6.7 million
and $22.5 million, had become a contentious issue between China
and the US, with the latter charging that the grants violated Article
3.1 of the Subsidies and Countervailing Measures Agreement
because they were contingent upon the use of local input.
We challenged these subsidies so that American manufacturers
can produce wind turbine components here in the US and sell them
in China. That supports well-paying jobs here at home, said Kirk,
despite reports that the move was more a political gesture than a
first step towards a more free-market approach by the Chinese.
This view was echoed by EWEA, which urged China to go
further in its efforts to create a fair market. The government of China
needs to take further steps in order to eliminate other discriminatory
practices which favour Chinese wind turbine manufacturers over
non-Chinese manufacturers, said EWEA.

Many will question whether anything can


be done about protectionism unless the
political will exists to remove trade barriers
NOT AN INSURMOUNTABLE BARRIER
But while protectionism is undoubtedly a barrier to export,
particularly in countries with high labour costs, it is by no means an
insurmountable one, particularly if support from other government
departments is available.
Abound Energy was a three-person startup in 2007, working out of
a Colorado State University research laboratory. Now, despite strong
competition from Asian manufacturers, it is a globally competitive
solar panel manufacturer that employs 350 people, and will soon be
three times as large, with factories in Colorado and Indiana.
The company benefited from a $400 million loan guarantee
from the US Department of Energy in 2010, allowing it to expand
its existing manufacturing facility in Longmont, Colorado and build a
new plant in Tipton, Indiana, which is expected to be on-line in 2014.
When both projects are completed Abound will be able to produce
some 840 MW of solar modules per year at full capacity a scale that
makes it possible to build more panels for less money, sharpening
the companys competitive edge and driving job creation.
While it is arguable that such loan guarantees are also a form
of indirect subsidy, there is no doubt that these funds gave the

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company the means it needed to improve and demonstrate its


innovative thin-film technology and thus emerge as a commercially
viable enterprise.
In July 2011, the Export-Import Bank of the US (Ex-Im Bank)
loaned Abound and another thin-film manufacturer, First Solar, the
funds to support their export efforts to India. First Solar will take
a $16 million long-term loan to support exports to Azure Power
Rajasthan Pvt. Ltd. in New Delhi, while Abound Solar will be given
$9.2 million to support exports to Punj Lloyd Solar Power.
Selling to India is incredibly different than selling to an established
market like Germany, says Abound marketing manager Mark Chen.
Contract enforcement is a different culture in India, which is one
reason why support from a credible financial entity like the Ex-Im
Bank is so crucial to executing a major project. Shipping to Indian
installations also takes longer, which companies must consider
when targeting certain incentives.
And yet, Abound Solar focuses on international sales. The
company sold 90% of its cadmium telluride modules internationally
in 2000, primarily to Germany and Italy. In 2011 India has joined the
ranks of their top export customers, and the company is focused on
selling to countries including Turkey and China.
The repayment of Ex-Ims loans is based on cash flows generated
by the sale of electricity to NTPC Vidyut Vyapar Nigam Ltd. (NVVN),
a wholly-owned power trading subsidiary of Indias National Thermal
Power Corporation and the agency responsible for the purchase and
sale of solar power under the first phase of Indias National Solar
Mission. The Indian government has furthermore provided special
power-price incentives through NVVN.
Clearly, having an independent federal agency that fills gaps in
private export financing at no cost to US taxpayers is crucial, and
Ex-Im Bank more than adequately fulfils this role. The Bank has
a Congressional mandate to increase support for US renewable
energy and other environmentally beneficial exports. The Bank
also provides a variety of financing mechanisms, including working
capital guarantees, export-credit insurance, and financing to help
foreign buyers purchase US goods and services. Indeed, already
in 2011 the Bank has approved financing totaling approximately
$75 million for four solar projects in India.
THE FUTURE
The bottom line is that renewables are likely to continue to be
protected in one form or another whether through tariffs, subsidies,
development grants, favourable loans or export credits. Examples
of territories turning their backs on protectionism, as has happened
in California and could yet happen in Ontario in October, are rare.
The impact this will have on the transition to a low carbon economy
is harder to gauge but looks set to endure, particularly in a time of
economic crisis when many politicians are keen to appeal to the
perceived self-interest of voters.
Richard Baillie is a freelance journalist focusing on the
energy sector.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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POLICY & MARKETS: GREEN ENERGY ENTREPRENEURS

A GOOD TIME
TO BE GREEN

THE RISE OF THE CLEAN


ENERGY ENTREPRENEUR
Never in history have renewables entrepreneurs seen such good times.
But who are they? Where do they come from? And why are they arriving in
a flood at renewable energys front gate? Elisa Wood profiles the creative
thinkers and risk takers responsible for the rise of clean energy ventures
over the last decade.

Californias Silicon Valley is becoming as


much about energy as about the internet
WIKIMEDIA

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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e hear a lot about the job-building benefits of renewable


energy when it draws manufacturers and developers to local
communities. Less talked about are those who arrive well before
the shovels, steel, factories and jobs. These are the green energy
entrepreneurs the creative thinkers and risk takers responsible for
the rise of clean energy ventures over the last decade.
Ron Flavin is positioned at renewable energys front gate, so
has a good view of who enters. Flavin, who has worked in the
US, the UK, Colombia, Peru, Switzerland and Spain, acts as a
consultant and grant writer for renewable energy start-ups, an
entrepreneurial enterprise in its own right that has kept him busy
in recent years. They come from everywhere, and not necessarily
from energy, says Flavin, who has attracted US$100 million for his
clients. He assists not only those you would expect engineers and
inventors but also some that are surprising: Hollywood studio
executives and military experts.
Others entering the industry are veterans of energy, finance,
agriculture, telecommunications, high tech, science, transportation,
construction, nanotechnology and commerce, all drawn by
enormous opportunity, as the largest economies in the world
spend an expected $2.3 trillion over the next decade to revamp
industrial-age energy apparatus into cutting-edge technology.
Green energy entrepreneurs emerge from throughout North
America, Europe and Asia, but they tend to congregate in high tech
regions such as Silicon Valley, an area of California becoming as
much about energy as it is the internet. You cant throw a softball
around here without hitting another solar company, says Dan
Shugar, one of the solar industrys early pioneers and now chief
operating officer of Solaria, a Fremont, California-based company
that makes silicon photovoltaic products.
Having tackled computers, software, and the internet, the new
area is renewable energy, adds Gary Price, partner in Sensiba San
Filippo, a California accounting and consulting firm that has helped
many Silicon Valley energy startups.
ENERGYS MARK ZUCKERBERG?
And, like the fabled college-age geniuses who brought us Google,
Facebook and Microsoft, energy entrepreneurs sometimes launch
straight from the dorm room. Not all introduce new technology;
some bring innovations in service or financing.
Aaron Hall, president of California-based Borrego Solar,
conceived his company while he was an economics major at
Northwestern University. His youthful ambition surprised a lot of
people, but not his family, who say that as a pre-schooler he sold
pine cones to neighbours, and later set up an elaborate candy
selling enterprise at his high school.
As a college student in 2001, Hall decided he was on to
something when he started telephoning solar companies as part
of a senior project. No one returned his calls. Rather than dropping
the project as a failure, Hall had an Aha! moment. I concluded
it was because the companies either werent sophisticated
enough to handle their demand, or they were too busy handling
the demand. One way or the other I saw a clear opening for the
business, he says.
So Hall took over a small solar operation started by a family friend.
He found, however, that it was difficult to sell solar panels as a young
20-something. Customers were sceptical. They said, You are in your

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THE NEXT BIG THING


FOR SOLARS SHAH?
Today we take it for granted that stores, universities and
hospitals champion solar energy. Indeed, they are adding
solar panels faster than homes and utilities are. The US alone
grew its commercial and institutional solar installations 119%
last year, according to figures from the Solar Energy Industries
Association (SEIA).
But a decade ago that wasnt so. What or who turned
this market around? No one person can be credited. But the
name of Jigar Shah, founder of SunEdison, tops many lists.
How did Shah do it? Not by lecturing building owners that
solar is a good environmental choice they already knew that.
Instead, Shah made it almost as easy, financially, for them to
use solar energy as to buy power from a utility.
He introduced the idea of the solar PPA, a third-party
financing mechanism that does away with the chief obstacle
to solar installation for many businesses the daunting
upfront payment. Now, nearly a decade later, the concept is
commonplace in the US and is taking hold in parts of Europe.
But Shahs entrepreneurial mind cant stop mulling over
finance and solar.
Shah says hes come to realise that the solar industry
cannot wait for the investment community or government
to bring it to the next level. Almost every piece of financial
innovation has come from companies like SunEdison, says
Shah, who is now CEO of the Carbon War Room, a nonprofit organisation founded by Virgins Richard Branson that
works on breaking down market barriers so that capital flows
to clean energy.
Shah says its important to understand that solar project
financing does not attract the top guns in the investment
world. In fact, solar is barely on their radar screens. We
dont have the smartest people in finance on our side
because they are not making money working for our side,
he says. No one on Wall Street gets paid handsomely to
help the industry.
To attract the big financial players, the solar industry needs
to meet them where they live, he says. We still have not
created a bond that looks like a real estate investment that
my mother can invest in. Thats the next step. Thats where
the A team gets paid. They get paid to take things public.
Industry players tend to shy away from fees associated
with public funds, but as Shah sees it you cant go cheap and
win big. If you want to play in the big leagues you have to be
willing to pay. Public funds make traders a lot of money.
Where Shahs thinking will lead is not yet clear, but stay
tuned. He sees great opportunities ahead for clean energy.
This is not a fight that can be won by social entrepreneurs
or impact investors, Shah says. He goes on to explain
what is needed to achieve these objectives: This requires the
worlds leading entrepreneurs, mainstream investors, action
oriented NGOs and thoughtful policymakers to work towards
a common goal accelerating the greatest wealth creation
opportunity of our generation.

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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LOOKING FOR PARTNERS


TO YOUR PROJECTS?

THE IDEAL GET-TOGETHER OF THE


SOLAR PHOTOVOLTAIC SECTOR!

EPIA EVENTS WITHIN THE FRAME OF THE 26TH EU PVSEC:


8th European PV Industry Summit:
Solar photovoltaics competing
in the energy sector
Date: Monday 5 September, 13:30-18:00
Location: Hamburg Messe
Hall A4, Room Chicago

Investors Day:
Investing in the future
Date: Tuesday 6 September, 9:30-17:30
Followed by a networking cocktail
Location: Hamburg Messe
Hall B2G Booth C1, EPIA Industry Area

Image: Diego Vito Cervo | ____


Dreamstime.com

For more information: ___________


www.epia.org

RENEWABLE
ENERGY

WORLD

These events are official Parallel Events of the 26th EU PVSEC.


CCH Congress Centre and International Fair Hamburg
Hamburg, Germany, 5-9 September 2011
www.photovoltaic-conference.com
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Avjets CEO moved from LEDs into offshore wind, and is now
working to commercialise a low-foot print biofuel refining system
AVJET BIOTECH

20s and youre trying to sell me a $40,000 system? Hall overcame


this hurdle with a business model that emphasised economy and
superior service. He offered solar installations at no up-front cost and
charged customers based on system performance, long before this
became a common approach. In the early years he kept his overheads
low, living and working out of his parents home, accepting family
loans, taking advantage of credit card float, and building trusted
relationships with vendors who then extended favourable terms
to his company.
A decade later, Borrego Solar receives financing from US Bank
and East West Bank, and employs 8090 people. The company
expects to earn revenues of $125 million this year and to double
its business in 2012. Inc. magazine has recognised Borregos
success, placing Hall at the top of its 30 under 30 entrepreneurs
and naming him as one of four CEOs to watch. The magazine also
placed Borrego on its list of Americas fastest growing companies
for four years running.
Jigar Shah, founder of SunEdison and now CEO of the Carbon
War Room, is another energy entrepreneur whose idea was born on
a college campus. The financial concept behind Sun Edison based
on the solar power purchase agreement (PPA) (see sidebar on this
page) emerged from a business plan he wrote while earning his
MBA from the University of Maryland. Shah started the Washington,
DC-area company in 2003 and sold it in 2009 to MEMC for
about $400 million.
While SunEdisons rise may seem mercurial, the companys
path was not straight up, according to Shah. During the lean times,
Shah took advantage of the then-housing bubble and drew equity
from his home.
SunEdison did have early success, almost immediately
attracting high visibility customers like natural and organic grocery
chain Whole Foods and office supplies giant Staples with its new
power agreement concept. But Shah discovered that was the easy
part. The tough part was winning large financial backers that could
position the company for long term growth. It became apparent to
Shah that if we did not have a systematic way to do this, a way
that could be replicated over and over, we are not in business. So
he virtually shut down the operation for 18 months as he worked

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through a deal with Goldman Sachs that would take SunEdison to


the next level. By then he was so short of cash that he had to find an
angel investor to pay the legal bills to close the Goldman deal. But
Shahs strategy to go for the big win worked.
If you are spending an extraordinary amount of time just trying to
make it in the world, you will absolutely fail. The key to SunEdisons
success is that we positioned the company for long term success,
Shah says. He adds: You cannot make gigatonne-scale change
unless you have the driver of the business right.
Aurora Algae, which has operations in West Perth, Australia
and Hayward, California, also sprang from a college campus: the
University of California, Berkeley. In 2006 founders Matt Caspari
and Guido Radaelli were pursuing their MBAs at UCB, and the third
founder, Bert Vick, was working on a PhD in biochemistry.
I entered the MBA programme to focus on entrepreneurship
and with the goal of starting a company. In particular, I was
interested in the alternative energy sector, which I saw as a major
growth opportunity, says Caspari, now Aurora Algaes managing
director. We entered the Berkeley Business Plan Competition and
won first place and the Peoples Choice Award for the business
plan for Aurora.
The partners received $30,000 from the business plan
competition and another $25,000 from the Intel Technology
Challenge. We soon raised another $100,000 from friends and

AARON HALL
We have been able to attract amazing talent recently from
outside of renewable energy because of the excitement
that surrounds this industry. So if you are starting up a new
company, it should be relatively easy to find talent. In some
cases that talent may bring additional resources, like capital or
relationships to those who have capital. If I were starting up a
new company, I would think about finding mature, successful
individuals that are in other spaces.
Aaron Hall, president, Borrego Solar

MATT CASPARI
Set out a clear vision for where you want your company to
be in one year and in five years, and figure out how you are
going to fund that growth. The path that I chose with Aurora,
to grow with venture capital, is not suitable for the vast
majority of businesses, but fit our opportunity well as were
aiming to create a multi-billion dollar company which requires
a significant amount of high-risk capital. Determine what
sources of capital are most suitable for your business and
pursue them aggressively. Most importantly, build a company
that you are passionate about and that is relevant.
Matt Caspari, founder, Aurora Algae

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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family. From there we raised venture capital, he says. By March


2010, the company had raised some $40 million in a series of
financing rounds.
Aurora is working on producing high-performance biodiesel
from algae, as well as other high-concentration products including
Omega-3 fatty acids and protein-rich biomass. The company
has secured over 1500 acres (607 ha) near its recently opened
demonstration facility in Karratha, Australia, to build a commercial
scale photosynthetic algae facility.

Aurora received $30,000 from a college


business plan competition and raised
another $100,000 from friends and family
The business climate in Australia is very strong relative to other
developed areas of the world. This business climate coupled with the
countrys reliance on CO2-intensive industries like mining and oil and
gas that are looking to reduce their CO2 footprint makes Australia
a very interesting market for renewable energy entrepreneurs,
Caspari says.
BIG, HAIRY, AUDACIOUS GOALS
While money is always a motivator, entrepreneurs often confess
that its not what really gets them out of bed in the morning and
for experienced entrepreneurs entering their second or third or
fourth venture, renewable energy offers a special sense of purpose.
Solarias Shugar, himself a veteran solar entrepreneur, says todays
migration of creative thinkers from IT to energy stems from renewable
energys transformative promise. A lot of these guys have made
their money. Do they want to create another chip for some consumer
product that somebody throws away in two years or help create the
next revolution in power? That is what is getting us out of bed in the
morning, these big, hairy, audacious goals.
Shugars goals were big from the start. His inspiration?
Californias Altamont Pass, one of the first wind farms built in the US.
It was a windy day and the turbines were rocking as far as the eyes
can see. It was about 500 MW. I said, Wow, I want to do something
like this, at this scale, with PV. In 1996 Shugar and partner Tom
Dinwoodie started PowerLight, which specialised in grid-connected
solar. A decade later, after installing 100 MW, the company was
purchased by SunPower for $332.5 million. Shugar stayed on
as president for nine quarters and saw the company achieve the
500 MW goal. So the original nave Wow, I want to do something
like this in solar we got that done, he says.
Don Evans is another veteran of clean energy ventures, moving
from LED technology into offshore wind and now genetically
modified seeds and algae for aviation fuel feedstocks. Evans is
chairman and CEO of Avjet Biotech, a North Carolina company
that is working with its parent Red Wolf Refining to commercialise
a biofuel refining system conceived at North Carolina State
University. The system produces 3857 million litres per year, small
compared with the 757 million litres produced per year by a typical
petroleum refinery. Its advantage? It requires little space, about two
acres (0.8 ha), versus hundreds of acres for a typical refinery. And
the bio-refinery can be set up where the feedstock is produced,
reducing transportation costs, Evans says.

DON EVANS
Wall Street, they dont just kick the tyres, they take the tyre
apart. If you are an operator whose interest is in taking oil
from French fries to operate a school bus, they dont want to
deal with you. They are interested in technology that enables
you to do some rather remarkable things, and they want to
see that you can you multiply the use of your technology in a
reasonable period of time.
Don Evans, CEO and chairman, Avjet Biotech

PAUL WICKBERG
Have patience. When you are providing alternative solutions
that are more effective from an environmental point of view, it
is always a tough uphill battle against the existing technology.
If there were quick wins and if it were easy, everyone would
be doing it. Never skimp on your first four or five people. The
most successful entrepreneurial companies get the very best
people in early, not later.
Paul Wickberg, president and CEO, SOL

Like Shugar, Evans sees a big picture value in his work. The world
has come to depend upon petroleum and coal as energy resources.
They are not clean and they are certainly not inexhaustible, he says,
adding that 70% of the fuel used by the US military is from people
who do not like us.
Paul Wickberg is president and CEO of SOL, a Florida-based
company that manufactures solar-powered outdoor LED lights.
Before joining SOL this year, Wickberg built enterprises and various
product lines for energy management and control technologies and
water conservation. He sums up what its like to be a green energy
entrepreneur when he talks to his kids about choosing a career. I tell
them: keep in the back of your mind you are going to have to explain
to somebody someday what your career is about. Everything Ive
ever done is tied to sustainability. It provides me with satisfaction
to know that all of those hours resulted in good for my employees,
investors and the world in general.
Or, as Shugar puts it, It is great to build a company because
you want to make a lot of money. That is fine on its own level.
But it is so much more powerful when you want to accomplish
something compelling. The industry that is responsible for the
largest environmental degradation is power. We would like to
solve that problem.
Elisa Wood is a US correspondent for Renewable Energy World.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

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www.asiasolarexpoevent.com
_______________________________

Discover New Partners,


Expand Your Business
December 3-5, 2011 Shenzhen City, CHINA Shenzhen Convention & Exhibition Center

Now in its 7th successful year, the Asia


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Asia SOLAREXPO showcases hundreds of state-of-theart materials, process technologies, components and
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With the development and deployment of solar
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For further information on exhibiting and sponsorship at Asia SOLAREXPO,


please visit ________________________
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North and South America
Christian Chatterton

International
Amanda Kevan
T: +44 (0) 1992 656 645

E: amandak@pennwell.com

T: +1 (918) 831 9550

E: christianc@pennwell.com

Virginia Willis
T: +44 (0) 1992 656 663

E: virginiaw@pennwell.com

Presented By:

International Organizer:
Organized By:

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SOLAR THERMAL: BARRIERS AND TRENDS

SOLAR NAVIGATING
TRENDS IN SOLAR
HEATING AND COOLING
A new analysis of the global solar market reveals a mixed bag of
development, with some countries surging while others are relatively
stagnant in the face of uncertain support. Brbel Epp outlines key
findings from the latest ISOL Navigator survey.

The market is up in Asia


and down in Europe
and North America.
WAGNER SOLAR

esigned to show current and expected market development,


the ISOL Navigator is an index reflecting the solar heating
and cooling sector and comes in response to the observation that
currently available market development indicators are unreliable,
largely because collectors do not feed into a central grid.
Ranging 0100, company values are averaged to obtain global,
country- and region-specific indices, the ISOL Index focuses on 16
countries: Austria, Brazil, China, Czech Republic, Germany, Great
Britain, Greece, India, Italy, Mexico, Poland, Portugal, Switzerland,
Spain, Turkey, and the USA. These key countries are divided into
four regions: North/Central Europe; Mediterranean; Selected BRIC
countries; and, North/Middle America.
The latest figures reveal that the international solar thermal
industry is still very fragmented with only every fourth company
producing more than 50,000 m2 annually equivalent to 35 MWth.
By far the largest group of collector manufacturers produced less
than 10,000 m2 in 2009, equivalent to 7 MWth.
The selected BRIC countries of Brazil, India and China lead the
rankings with the highest ISOL Index of 51 points, 7 points higher
than the world average of 44. These BRICs countries are roughly even
when compared with the sunbelt countries of the Mediterranean,
although the BRIC Country Index is the only one with a long-term
upward trend. Conversely, the Mediterranean suffered the strongest
drop, whereas in 2010, it was still above the global index.
Nonetheless, the markets in the sunny southern parts of Europe,
with an Index of 43, do slightly better than the northern parts,
Indexed at 42, but were it not for the spreading financial crises in
Portugal and Greece, the difference could have been greater.
Meanwhile, both North/Central Europe and North/Middle
America run parallel to each other at a rather low level. North/Middle
America shows a relatively poor performance, with a ranking of 41,
as a result of the generally dissatisfying market situation in the US.
However, according to this analysis, the worst mood can be found
in the solar thermal industries of Russia and the Ukraine, which is at
a very low level of 30 points.

REGIONAL VARIATIONS INCREASING INDEX DIFFERENCE


In the latest survey the gap between the highest and the lowest
score widened from 4 to 10 points. These contrasting trends with
the market up in Asia and down in Europe and North/Middle America
results in a slight decrease in the global index to 44 points.
The global solar thermal industry is characterised by four different
technologies but the majority of the 16 key countries are dominated
by flat plate collectors. Nonetheless, the share of vacuum tubes has
increased over the last years in India and Mexico, reaching a share
of 30% and 44%, respectively. Meanwhile, the vacuum tube share in
Europe has proven to be more or less stable over the years.
Countries with a high market penetration, such as Austria and
Greece, are mature and major support efforts will be necessary to
grow these markets further. Conditions are reversed in countries
with the lowest rankings.
BRIC and East European Countries are growing whereas
European markets are lagging behind, dominated as they are by
countries with a low market penetration and dissatisfiying business
development. Only Poland and Switzerland have an index above
the average value of the North/Central region in June 2011 while
the Czech Republic fares far below the regional average. Likewise,
the general situation in the Mediterranean is that country indices are
below the long-term trend of the region. Only Turkey has reached a
higher score in the latest index.
In stagnating markets, such as US and the Czech Republic,
the slowdown has hit the industry extremely hard, because
manufacturers have invested significant sums of money to increase
production capacity, and thus feel price pressure more than others.
Brbel Epp is managing director of Solrico
e-mail: epp@solrico.com
This article is available on-line. To comment on it or forward it
to a colleague, visit: www.RenewableEnergyWorld.com

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17%

YIELD

N117/2400: THE LOW-WIND SPECIALIST


The latest turbine in the Nordex Efciency Class represents a whole new dimension of engineering sophistication. A 117-metre rotor and minimal noise emission make
it ideal for IEC 3 sites. It provides 17 percent more yield
and 20 percent more full-load hours than any previous
products in its category. Thats why we call the N117/2400:
Excellence in Efciency.
www.nordex-online.com
_________________

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-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

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WIND: OPERATION & MAINTENANCE

Given three maintenance visits a year for a single


turbine, the 6400 turbines planned for the UK will
collectively need some 19,200 offshore visits per year
SMULDERS GROUP

MAINTAINING
GROWTH

OPERATION AND MAINTENANCE


KEY TO LOWERING OFFSHORE COSTS
While wind turbines attract most of the attention when it comes to the offshore wind business, operation and
maintenance account for almost as high a percentage of the final cost of electricity. Alasdair Cameron looks
at some of the techniques and technologies being developed to lower costs in this vital sector.

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WIND: OPERATION & MAINTENANCE

lthough they grab fewer headlines than other areas, operations


and maintenance (O&M) make up 25% of the cost of an offshore
wind farm almost as much as the wind turbines themselves, and
roughly on par with construction and installation. Despite this, there
has been relatively little attention paid to the challenges, and also the
opportunities, that a massive increase in the deployment of offshore
wind power will present from an access and maintenance point of
view. At the recent Renewable UK Offshore Wind conference in the
UKs Liverpool, it was obvious this situation will need to change,
and an increasing number of commentators and companies
are recognising what an important issue it will be. Indeed, cost
reductions will be necessary if O&M are not to scupper the increasing
competitiveness of offshore wind in the coming decade.
Offshore maintenance and operation divide into any number
of sectors, but key areas include routine access to offshore sites,
improving the efficiency of the necessary maintenance, cabling and
network connection, ensuring a sufficient supply chain of components
and vessels, and strategies to reduce risk. Improvements in any
of these fields should help to increase the energy output of an
operational wind farm, and so reduce the lifetime cost of electricity.
PLANNED MAINTENANCE
Among the first, and perhaps least glamourous, of the methods
being deployed by offshore wind farm operators to reduce O&M
costs is the use of planned maintenance. Put simply, this is about
making maintenance something which is part of a routine procedure
rather than reactive to faults. Reactive maintenance for example
arranging a site visit if a turbine stops working can be expensive
and sometimes impossible, in bad weather conditions for instance,
or if boats and crew are unavailable. This increases the risk of an
expensive wind generation asset being unable to produce electricity
for weeks or even months on end.
Anders Soe Jensen, head of offshore wind at Vestas, said,
In offshore, it is much more important that you have predictive
maintenance, that you have a surveillance that lets you know exactly
[what is happening at the site]. When you go out to a turbine, you
dont go out to find out what is wrong.
Key to planned maintenance is the increased deployment of
sensors in offshore wind turbines. Modern offshore wind turbines,
particularly those that are custom built for offshore, will contain
a huge number of sensors in key components, all feeding back
information into a centralised system. The blades too are likely to
soon contain sensors, such as those being developed by Ris DTU
in Denmark. Blades are mainly inspected visually, but now extensive
modelling and laboratory testing of turbine blade materials can
provide a picture of how wind turbine blades will react under various
loads, allowing built-in sensors to be calibrated to predict when a
particular blade is likely to need repairing.
Today we are monitoring 16,000 turbines globally, and we can
see how a specific component is performing, said Soe-Jensen,
speaking in 2010.
Other companies are operating in a similar fashion. Anil Srivastava
of Areva explained: We have a responsibility for increasing the
reliability and availability. We have three lines of intervention into a
wind park. We have a scanner control system, remote management,
we have more than 1000 sensors in the machine to predict the
problems and solve them remotely. The second line is helicopter

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intervention and the third is only for heavy lift, we use a vessel,
explains Srivastava.
Backup systems are also important in allowing the expansion
of planned maintenance, with systems designed for offshore often
containing several layers of safeguards to ensure that a turbine can
continue running, even if only partially, in the event of a failure.
Speaking about its M5000 offshore turbine, Sebastien HitaPerona, products director at Areva, said: We have a high redundancy
of components. This way we can optimise preventive and corrective
maintenance, if any, and we can schedule the operation and
maintenance and optimise the cost for our customer.
ACCESS TO OFFSHORE WIND FARMS
The offshore marine environment is a harsh one, with a host of
logistical and safety issues that onshore developers do not have
to contend with. Taking the UK as an example, a quick look at
the figures shows the need for access solutions that the massive
expansion of offshore will bring.
Installing 32 GW of wind turbines by 2020 will mean transporting
and maintaining around 6400 turbines with their accompanying
blades, monopiles and jackets, along with the cables and related
transmission systems. This will require a major scale-up of
operations. For example, offshore wind turbines currently require
about six site visits per year. Even assuming this can be reduced to
three visits per year in future, 6400 5 MW turbines will need some
19,200 offshore visits per year, either by boat or helicopter or some
other means. That is a lot of traffic. And then the people need to get
onto the turbine. Assuming two people are transfered on and off
on each visit, that means four transfers per visit or 210 per day.
Systems will need to be developed to ensure the safety of those
personnel in potentially rough conditions.
As well as more journeys, the waves too are likely to be higher
in the upcoming offshore wind zones, with the need to work farther
from the coast and in deeper waters. Some of the UKs Round 3
wind farms are up to 65 km offshore, and most are in more than
30 metres of water. At the moment, most transfers are to monopile

OFFSHORE
ACCELERATOR
Operations and maintenance have been recognised as key
areas of future cost reductions, and for that reason they have
been included as part of the Carbon Trusts Offshore Wind
Accelerator (OWA). The OWA has been conceived as a
means of spurring innovation in a range of key areas, such as
foundations, transmission, array layouts and access to offshore
sites. Beginning in 2010, the Trust began a competition to find
new technologies and ideas to assist access to offshore wind
farms and so help to lower installation and O&M costs. More
than 400 submissions were received from countries all over
the world, covering a range of topics. So far, 13 have been
selected to receive funding. An announcement on the winners
is expected before the end of 2011.

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Microns matter

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

As leading experts in gear- & gearbox technology, Hansen Transmissions manufactures


wind turbine gearboxes with the highest precision. Our unique designs deliver the
highest torque capacity in the market. We ensure that our gears achieve the lowest
noise and vibration levels, whilst delivering the highest reliability and quality.

RENEWABLE
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Hansen Transmissions International nv

___________________

As the biggest independent gearbox specialist, with more than 85 years of in-house
manufacturing experience, we design and produce innovative gearboxes and drive
trains. Our process knowledge and control are second to none and the use of
advanced measuring techniques enables us to accurately verify and optimize our gears.

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In an industry with a strong focus on the reduction of the kWh cost of renewable
energy, we ensure that we meet our customers needs to where microns matter.

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WIND: OPERATION & MAINTENANCE

Further out to sea, new boats with motion stabilisers


will be required to mount safe personnel transfers
WINDCAT

in wave heights of no more than 1.5 metres. In the future, a host


of different foundation types such as gravity or floating, and larger
waves, will mean that new systems of safe transfer will be necessary.
Indeed, if transfers are to be restricted to wave heights of 1.5
metres, this will limit offshore work to just 200 days a year. However,
increasing the safe working wave height to three metres and above
could increase the number of days available for tranfers to 310 days
per year, helping to reduce the cost of wind by increasing the overall
availability. In order for this to happen, though, new boats with
motion stabilisers will be required to improve the safety of transfers.

Increasing the safe working wave height


to three metres and above could increase
the time for transfers to 310 days per year
We looked at technologies, but current solutions are focused
on near-shore monopiles. New systems are required for Round 3
conditions. There is a technology gap in three areas for transfer
systems, for vessels and for launch and recovery systems, explained
Jan Mathiesen of the Carbon Trust.
Already this process is beginning to happen, with Dutch
vessel operator Windcat recently launching a new boat capable of
conducting personnel transfers in wave heights of up to two metres.
Furthermore, a constant shuttling to and from the coast
will become increasingly impractical. Developers and offshore
service providers are looking at new methods, one of which is the
mothership approach. Using this system a single large vessel

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would service an offshore wind farm or cluster of wind farms, staying


on-site for long periods of time and deploying multiple smaller craft
for day-to-day servicing.
Along with the mothership, centralised onshore hubs will also
need to be developed, with vessels and equipment on standby.
These will be needed both as bases for long-range offshore vessels
and to service the offshore wind farms closer to the shore. Centres
are already springing up on a small scale at several sites around the
coast. In Lowestoft (near the site of the Greater Gabbard project)
utility players Scottish and Southern Energy and RWE have been
developing an onshore depot with fuel storage facilities, along
with four 18-metre catamarans from WindCat and a helicopter on
permanent charter. At present, however, the site does not have
dedicated facilities for conducting major repairs. Similarly, an onshore
hub on the west coast, near Worthington, services the nearby Robin
Rigg wind farm. However, while this facility is no doubt suitable to
service a single relatively small offshore wind farm like Robin Rigg, it
is unable to store large parts, meaning that in the event of a major
problem major components will need to be taken elsewhere for
repair, and no replacements will available be on-site. In the future,
with much larger wind farms, it seems likely that companies will
want dedicated repair facilities closer to the projects and may store
or even manufacture some components nearer the sites.
It is obvious that in the coming years there will need to be huge
investment in offshore access, particularly in the North Sea between
the UK, Norway, Denmark, the Netherlands and Germany. Dozens,
perhaps even hundreds, of smaller access vessels will be needed,

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_____________________

ELECTRIC PITCH SYSTEMS

PITCH CONTROL COMPONENTS

SLIP RING SOLUTIONS

BLADE SENSING SYSTEMS

SUPPORT SERVICES

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

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WIND: OPERATION & MAINTENANCE

some with specialised landing equipment. Helicopters, too, will be


in great demand. While some may be available from the fossil fuel
industry, many will need to be tailored to the needs of offshore wind
and in any case, with oil prices set to remain high for the foreeable
future, it seems unwise for the offshore wind business to try to outbid
the oil industry for existing vessels. Larger boats will also be needed
if the mothership system is employed. Finally, there will be a great
need for trained staff, and companies will need to invest in training
to ensure that they have the necessary skills.
COLLABORATION ON CABLING
Cable damage can also be a huge expense for an operational wind
farm. Some estimates suggest that it costs between 510 million
(US$7.5$15 million) to repair a cable, along with obvious losses in
terms of electricity production (roughly 18,000 ($27,000) per day for
a 5 MW turbine) and reputational risk. Despite this there are, as yet,
no standardised practices or procedures to procure cables, share
equipment and ships, secure appropriate staff, harbour access and
all the other elements necessary for a safe and speedy repair.
Yet according to John Robinson, principal consultant at marine
services company Intertek METOC, this is exactly what is needed.
During a recent presentation he argued that the big offshore wind
players should work together to set up joint centres for cable
installation and maintenance at strategic locations around the coast
of the UK and onwards in Europe. Developers should move away
from using their own dedicated cable compounds and installation
vessels, and work together to develop a more efficient system.
Forget individual compounds, forget project-specific vessels.
Get together, share the facilities and vessels, share the knowledge,
drive the industry. It will reduce the costs, said Robinson.
Despite the advantages that increased harmonisation and
cooperation could bring, so far the desire to keep cable choices
and technologies confidential and a suspicion of sharing too much
information with competitors has hampered efforts to set up joint
O&M infrastructure for cabling and cable repair. It also remains to

NEW SENSORS
FOR BLADES
Developing sensors to monitor performance and predict faults
in offshore wind generators is a complex business. In 2008 Ris
DTU, the Danish National Laboratory for Sustainable Energy,
published a report looking at remote monitoring of offshore
wind blades, where there was a gap in the sensor market. The
aim was to develop systems to report faults to blades, but
also to provide information on the state of the blade itself and
so inform future maintenance needs. Several methods were
outlined for monitoring blades, including acoustic sensing and
the use of fibre-optics to determine cracks, and measure the
shape of the blades to uncover deformities. Alongside this
sensor testing, much research was conducted into the most
common types of faults and distortions in wind turbine blades.
In 2010 Ris announced it was working on a Smart Embedded
Sensor System to help commercialise this research.

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Windcats newest boats can operate in waves up to two metres


WINDCAT

be seen whether developers and offshore operators will be willing to


pay for a service that they may not need to use. Nonetheless it is a
situation common in many other industries and remains a possible
avenue for future development.
Said Robinson: Its not rocket science, and its not new. The
telecoms market has been doing it; theyve got cable maintenance
agreements. Its time we moved forward.
SKILLS AND TRAINING
Ensuring that sufficient skilled O&M personnel are going to be
available will be a major challenge for the offshore wind industry in
the future, a concern that has been expressed by senior figures.
A rough calculation that has been made suggests that one O&M
job will be created for every two turbines installed. With say 6400
turbines of 5 MW each, this will equate to requiring about 13,000
trained staff. Even if this number of personnel can be reduced
through greater efficiencies, there will still be a huge need for people.
As with the cabling sector, one solution will be for operators and
developers to collaborate on funding offshore skills centres and
training programmes. In the UK, one example of this sort of approach
is at the Furness College in Barrow, in Cumbria. Here one company
is hoping to erect a wind turbine training tower 17 metres high to
allow trainees to practice wind farm maintenance procedures. As the
North European offshore wind boom continues it is likely that similar
developments will be taking place all over the continent.
CHALLENGES AND OPPORTUNITIES
The challenges facing the operation and maintenance sector of the
offshore wind business are daunting, with a need for thousands of
trained staff, a massive increase in vessel support, new technologies
and billions in investment. At the same time, though, these sectors
offer huge opportunities for businesses to tap into the surge in
development. It is also worth remembering that none of these
problems is overwhelming or unique. The rate of expansion of
offshore wind is comparable to the expansion of North Sea oil in the
1980s or the dash for gas in the 1990s, and many of the same skills
and techniques will apply.
Alasdair Cameron is a freelance journalist
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

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Is offshore part of your business today?

EWEA OFFSHORE 2011:


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SUPPORTED BY:

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POLICY AND MARKETS: MALAYSIA

RIPE FOR
RENEWABLES
ABUNDANT RESOURCES,
ATTRACTIVE POLICIES
Energy sector development has spurred economic growth in Malaysia.
Tildy Bayar looks at the policy, markets, issues and key players in the
countrys rapidly expanding renewable energy market.

Oil palm plantations cover 15% of Malaysia


and produce 18 million tonnes of oil annually
MALAYSIA.COM

alaysias potential for renewable energy generation is

substantial. Its equatorial location is superb for solar, and its


extensive tropical forests can supply large quantities of biomass.
Hydropower already plays a significant part of the nations energy
mix, particularly on the island of Borneo, and mini-hydropower from
streams and rivers has boosted the electricity supply in rural areas.
Much discussed is the potential for energy from palm oil waste.
Malaysia produces around 18 million tonnes of palm oil per year, most
of which is exported. Oil palm plantations cover 15% of the country
(4.7 million ha) and produce significant amounts of combustible
waste both biomass, including empty fruit bunches, tree fronds,
trunks, fibres and shell; and biogas from methane capture of palm
oil mill effluent (POME) which, according to some estimates, could
generate up to 20% of the countrys electricity by 2020.
ELECTRICITY MARKET
The countrys electricity generating capacity increased by 20%
between 2000 and 2009, and is projected to increase further by
almost 3% per year, from 66 Mtoe in 2005 to 131 Mtoe in 2030. Per
capita electricity demand is on the rise, and is expected to reach or
exceed the OECD average by 2030. While total installed capacity

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for the entire country was estimated at 24,187 MW in 2010 and


peak demand was anticipated at 16,332 MW, offering a comfortable
margin of capacity over demand, utility Tenaga Nasional Berhad
(TNB) projects that peak demand will stand at 20,669 MW by 2020.
TNB currently maintains a generation reserve margin of 31%, but it
predicts that this margin will drop to 20% by 2015 if no new power
plants come online by then, which is likely as there are no new plant
projects scheduled for the next four years. Indeed, there were power
shortages in 2009 due to rising demand and aging generating units.
ENERGY POLICY
According to government targets, renewable energy should
contribute at least 5.5% to the countrys generation mix by 2015.
Surveys indicate that the public supports renewable power as a
remedy for high levels of pollution such as the Malaysian haze of
2005, a weeklong choking, smog-like haze over Peninsular Malaysia
which almost brought the region to a standstill. Nevertheless, the
development of renewable energy projects has to date been very
slow, and government officials confirm that renewables can account
for only a small part of the mix in the foreseeable future. Even with
its five fuels policy which adds renewable energy sources to the

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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Going offshore...
Think SLIM.

SLIM, the most reliable transformer for your wind turbine


CG Power Systems (formerly Pauwels) is riding the waves of reliability and environmental safety in
offshore applications.
The SLIM transformer is the environmentally safest way to equip offshore wind turbines. With almost
10 years of experience SLIM is still leading the way with nearly 5000 installations worldwide and a wide
range of customized designs. Tested for reliability and safety in the harshest conditions, both onshore and
offshore, the SLIM transformer has become the standard for wind generated energy.
The SLIM is also compact, powerful, maintenance-free and overload-capable thanks to innovative
transformer design from CG Power Systems combined with the thermal technology of DuPont NOMEX
homogeneous high-temperature insulation system. A smart partnership between two market leaders has
resulted in effective space management, increased reliability and rst-class performance.
If you are thinking of going offshore, think SLIM.

CG Power Systems Belgium NV


Antwerpsesteenweg 167
B-2800 Mechelen, Belgium
T +32 15 283 333 - F +32 15 283 300

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

www.cgglobal.com ___________
www.nomex.com belgium@cgglobal.com

____________

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Co Located With:

19-21 APRIL 2012 - PRAGATI MAIDAN, NEW DELHI, INDIA


WWW.RENEWABLEENERGYWORLDINDIA.COM
__________________________________________________

SWITCHING ON INDIAS
GREEN POWER FUTURE
CALL FOR PAPERS
SUBMISSIONS CLOSE 14 OCTOBER
Renewable Energy World India invites you to submit an abstract for
the Renewable Energy World India 2012 conference as it returns
to New Delhi in 2012 with co-located events HydroVision India and
POWER-GEN India & Central Asia for its 3rd successive year under
the theme Switching on Indias Green Power Future
Spanning over three days and across two tracks, Renewable Energy
World India 2012 is a key forum for senior executives and industry
leaders from across the globe to address important issues facing
the renewable industry as well as the latest, solar, wind, geothermal
and bioenergy projects and technologies.

STRATEGIC TRACK
Project Financing
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National Energy Policy Development

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Hybrid Power Plants
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Emerging Renewables
TAKE ADVANTAGE OF THIS OPPORTUNITY AND REACH
OUT TO THE INDUSTRYS KEY DECISION MAKERS AT
RENEWABLE ENERGY WORLD INDIA 2012.

Event Organizers

To submit your abstract for the conference, or for further information


about participating as a delegate or speaker at Renewable Energy
World India 2012, visit _________________________
www.renewablenergyworldindia.com or
contact:

Flagship Media Sponsors

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E: info@interadsindia.com

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POLICY AND MARKETS: MALAYSIA

national mix of oil, gas, coal and hydropower renewable capacity


excluding hydropower was only 53 MW at the end of the 8th Malaysia
Plan in 2009.
The 9th Plan, which set targets of 300 MW of renewable energy
in Peninsular Malaysia and 50 MW in Sabah, was implemented from
20062010 with a focus on reducing dependency on imported
petroleum and further integrating alternative fuels. (The 10th plan,
effective from 20112015, places greater emphasis on energy
efficiency.) There has also been a national biomass initiative, and the
government has committed to a 40% reduction in carbon intensity.
The National Renewable Energy Policy and Action Plan, effective
since June 2010, aims to draw more of the nations electricity supply
(11% by 2020) from renewable energy. The Ministry of Energy, Green
Technology and Waters Green Technology Financing Scheme,
worth RM1.5 billion (about US$500 million) offers incentives to green
technologies.
SMALL RENEWABLES PROGRAMME
The Small and Renewable Energy Programme (SREP) was first
launched in May 2001, with the coordinating and oversight Special
Commission on Renewable Energy (SCORE) also established at
that time. SREP allows renewable projects of up to 10 MW to sell
their output to the utility, under 21-year licence agreements. Any
renewable energy plant (including biomass, biogas, municipal waste,
solar, mini-hydropower and wind) may apply to sell energy to the
grid on a willing seller and willing buyer basis. The first renewable
energy purchasing agreement (REPA) between TNB and a plant
owner was signed in 2001.
The programme is, however, limited to 219 MW in 2011, but will
increase to nearly 1 GW in 2015. The bulk of the generating capacity
to be installed is set aside for biomass and mini-hydropower. While
participation has steadily increased and the results have been
encouraging, the total volume of electricity generated is still small.
ISSUES WITH RENEWABLES
Malaysian energy providers are focused primarily on planning to
meet rising short- and medium-term demand. Since renewable
energy projects thus far have been developed on a relatively small
scale, the problem of diminishing natural gas is forcing the utilities
toward using more coal in order to meet their immediate needs.
Palm oil, Malaysias largest export and a potential renewable
energy source, is also proving problematic. Critics say the
governments conversion of over one million ha of forest land into oil
palm plantations threatens to create substantial carbon emissions,
which will essentially negate the carbon reductions represented
by the use of waste from palm oil production in renewable energy
projects (and by the governments carbon reduction programme).
While the EU-Malaysia Biomass Sustainable Production Initiative
(Biomass-SP) claims that there are investors from a number of
countries such as Germany, France, Ireland, the UK, Korea, Thailand
and Hong Kong who want to fund biomass projects, thus far there
has been little interest from Malaysian palm oil millers. Malaysian
Palm Oil Council chief executive officer Tan Sri Yusof Basiron
believes that palm oil millers would be interested in partnering with
foreign investors, but have not yet heard about these opportunities.
However, Biomass-SP technical adviser Datuk Leong Kin Mun
reportedly told the Business Times that palm oil millers are afraid

that such investment would disrupt the daily running of their plants,
and so see it as risky. Leong also believes that many palm oil millers
are simply not interested in renewable energy.
At the current rate of 21sen/kWh (7 US cents/kWh) TNB is
buying renewable energy, the potential of electricity sales is worth
RM394.8 million (US$XX million). Upon implementation of the feed-in
tariff system, the higher renewable energy purchase price could be
an added incentive for palm oil millers to convert their POME biogas
to electricity, Leong apparently said.
THE FUTURE FOR RENEWABLES
April 2011 saw Malaysia adopt an Advanced Renewable Tariffs
system and further renewable energy targets. A Renewable Energy
bill (RE Bill) and a Bill for Sustainable Development Authority (SEDA
Bill) were passed by the House of Representatives on 28 April, and
a 1% feed-in tariff (FiT), which will pay into a renewable energy fund,
will be effective as REW goes to press in September 2011. Among
the current eligible resources for the FiT programme are biomass,
biogas, mini-hydropower and solar energy.
Like successful policies elsewhere, the Malaysian tariff
differentiates by technology and derives tariffs based on the cost of
generation. The tariffs have apparently been received enthusiastically.
Indeed, projects currently in the planning stages includes a move
by EQ Solar Technology International Sdn Bhd, a subsidiary of Chinas
Hangzhou Energy Solar Co. Ltd, which intends to manufacture solar
modules, cells and wafers in Senai Hi-Tech Park in the southern
state of Johor. According to EQ, it is planning to invest RM1.6 billion
($500 million) in the project which will have a peak annual production
of 50 MW of modules, rising eventually to 200 MW.
Meanwhile, Berjaya Corp Bhds (BCorp) subsidiary Berjaya Solar
Sdn Bhd plans to invest RM180 million ($61 million) in a 10 MW PV
plant at Bukit Tagar, Selangor, on the west coast. BCorp said the
plant is a precursor to its proposed 50 MW PV plant.
Also in the pipeline are the Hulu Terengganu (250 MW) and
Ulu Jelai (372 MW) hydro projects, a pilot 5 MW solar PV project in
Putrajaya, and projects encompassing 51 biogas plants by plantation
conglomerate Felda Holdings Bhd which will use biomass waste
including empty fruit bunches and palm oil mill effluent.
MOVING FORWARD
With an attractive FiT rate and abundant natural resources,
Malaysia is ripe for foreign investment in renewable energy projects.
Renewable power solutions could help the country avoid becoming
a net fuel importer in the next 30 years, reduce its carbon emissions
and make a difference to rural quality of life. However, stakeholders
in the development process need to plan carefully for the long term in
order to avoid simply replacing one short-term problem with another.
Careful and responsible development which addresses sustainability
issues will prove more profitable in the long term.
Tildy Bayar is a freelance journalist specialising in the energy
sector.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

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Company Results

A mixed market for


RE on latest figures
A

s the latest quarterly results emerge it appears that the


renewables market remains a turbulent space with little by way
of clear trends emerging. However, while this means that not all
companies are thriving under the austere financial environment in
which we find ourselves, some players are at least beginning to see
reasons for optimism in the coming months.
For example, in the wind sector, Spanish manufacturer Gamesa
recorded a 29% growth in net income and MW sold, a significant
improvement on the first quarter of 2010 when the companys net
profit fell 75%. The company attributed this growth to progress in
internationalisation wind turbine sales were up to 1292 MW, all
outside Spain together with efficiency in its business lines.
Turbine deliveries doubled in the period, to 1106 MW, with the US
and India each accounting for over 200 MW. Furthermore, Gamesa
claims a backlog for 2011 amounting to 2270 MW in June, covering
77% of its sales guidance for the year (28003100 MW). In this
quarter the company adds that it has received orders for 564 MW
for delivery in the year up 65% with respect to the same quarter in
2010 and up 93% with respect to the first quarter of this year.
In the first half of this year Gamesas consolidated revenues
amounted to 1297 million, up 26% on the previous years figures
with the Wind Farm Development and Sale unit ending the first half
with an EBIT of 3 million, contrasting with a 10 million loss in the
first half of 2010.
Results from Vestas, meanwhile, show a difficult first quarter,
followed with figures which report the company generated half-year
revenue of 2461 million, an increase of 31% on the first half of
2010. However, although EBIT amounted to just 8 million, against
a loss of 219 million in the first half of 2010, Vestas seems to have
turned things around. In the previous quarter Vestas posted a loss of
69 million, causing its share price to immediately fall by 8%.
The half-year intake of orders was 2895 MW, and the backlog
amounted to 8 billion as at 30 June 2011. In the first half, the
company delivered close to 2 GW of turbines, up 25%, on something
over 1000 machines, an increase of 38%.
Orders covering almost all the expected revenue of 7 billion
for 2011 have already been secured, and the outlook for revenue,
EBIT margin and free cash flow is maintained. In spite of the macroeconomic and financial uncertainty, Vestas still expects firm and
unconditional orders of 78 GW in a market that it says remains
fiercely competitive. According to the company, Europe and Africa
are still expected to contribute about half of its orders, the Americas
and Asia-Pacific about 25% each.
In a recent ad hoc bulletin, Nordex said that while it is still on
track to achieve revenue of 1 billion in 2011 its EBIT target is now

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It appears that the renewables market remains a turbulent space


with little by way of clear trends emerging NORDEX

not expected to be reached until 2012, with the company blaming


structural costs and continued price pressure. This is despite a
reported order intake up 59% to 522.4 million. Nordex says its
personnel and operating costs are to be cut by around 50 million
and it is examining options for strategic alliances in Asia and offshore.
In the first half of 2011, revenues rose by 15% to 403.3 million,
compared with the previous years 349.8 million, underpinned by an
expanding US business, which now accounts for 25% of revenues,
more than double the previous year.
Even so, EBIT dropped to 1.6 million, compared with the 2010
figure of 7.1 million. The company reported a loss of 4.1 million,
mainly due to net finance expenses of 7.4 million, it says. In its
outlook Nordex says that in view of the intensive competition it
expects to report low, but positive, earnings for 2011.
For its first quarter report, Hamburg-based REpower Systems
Group increased its sales by approximately 23% to 262.5 million,
compared to the previous years 213.1 million, in the first quarter of
the 2011/12 fiscal year. Total performance grew by nearly 22% from
204.0 million to 248.3 million. Meanwhile EBIT was 10 million,
this compares with the 1.5 million in the equivalent quarter of 2010.
After offsetting interest and other financing income and expenses,
earnings before tax amounted to 7.6 million, more then double the
2010 equivalent of 3.2 million. REpower confirmed its forecast for
significant sales and earnings growth in the 20112012 fiscal year.
Meanwhile, REpower parent group Suzlon Energy Ltd, reported
its earnings for the quarter ending June by showing a significant
turnaround. With its first quarter reportedly showing an 80% year-

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Company Results

on-year growth in revenues to see Rs. 4326 crore (US$980 million)


and an EBITDA of Rs. 490 crore ($111 million) compared with a loss
of Rs. 546 crore ($124 million) in the first quarter of the previous
financial year.
In its market outlook, Suzlon says that despite the challenges
in developed markets, the wind industry continues to grow with
strong momentum in emerging markets and offshore. Recent policy
developments, such as the planned phase out of nuclear in Germany
and carbon pricing being introduced in Australia, have placed an
increased emphasis on renewables, translating to a positive outlook
even in developed markets over the mid-to long-term, they say.
Turning to the solar sector, First Solar, Inc., announcing its results
for the second quarter of 2011 showed net sales of $533 million,
down $34.5 million from the first quarter of 2011. It says this is
primarily due to lower average selling prices (ASPs) as well as solar
policy uncertainties in Italy, Germany and France, although the net
income decrease was partially offset by higher volumes sold.
Rob Gillette, CEO, said: We expect stronger performance in the
second half of 2011 as we build projects from our systems pipeline,
develop promising new markets, execute our cost reduction
roadmaps and continue to improve module efficiencies.
First Solars updated 2011 guidance shows net sales of $3.6 to
$3.7 billion and an operating income of $900 to $960 million.
MEMC Electronic Materials, Inc. also reported second quarter
2011 results recently, reflecting year-on-year growth in revenue
despite a sharp slowdown and weaker pricing in solar wafer markets.
Revenue for the second quarter was $745.6 million, including
$149.4 million resulting from the resolution of a long-term wafer
supply agreement with Suntech Power Holdings Co., Ltd. which
included an unfulfilled take-or-pay arrangement. This represents an
increase of 66% from $448.3 million in the second quarter of 2010
and an increase of 1% from the 2011 first quarter. Excluding the
Suntech contract resolution, revenue was down 19%, which the
company said was due to weaker solar wafer pricing and volumes.
MEMC reported net income for the 2011 second quarter of $47.3
million, compared to a net loss of $4.5 million in the first quarter.
Solar Materials revenue was $323.1 million, a decrease of 1%
from the 2011 first quarter and an increase of 92% from the 2010
second quarter. Excluding the Suntech contract resolution, revenue
was down $152.6 million, driven by lower wafer volume and prices,
but was up slightly year-over-year as a result of higher wafer volume.
Segment operating profit was $89.2 million, compared with
$39.4 million in the 2011 first quarter.
Given the downturn in the solar upstream supply chain and the
softening of semiconductor demand, MEMC said it is revising its
guidance for 2011. The company now expects 2011 sales to be in
the range of $2.7$3.0 billion.
In the inverter sector Fronius recorded a 52% increase in sales,
with a turnover of 499 million, they proclaim it to be one of the most
successful financial years in the companys history. This remarkable
year is attributable to... the marked growth of many solar markets,
explained Otto Schuster, director of sales and marketing.
Looking ahead, the company believes a positive trend is set to
continue in 2011. We expect strong second half figures for the Solar
Electronics division, as the governments in key markets such as Italy
and Germany have given the green light for new photovoltaic funding
models, says Schuster.

SMA Solar Technology AG, announcing its first half figures,


confirmed its sales and earnings forecast for 2011 and says it also
anticipates a strong second half to the year.
For the first half of 2011, 3.1 GW of inverter output was sold,
worth 715.0 million, due to a significant upturn in business in the
second quarter of the year, SMA says, when it doubled its inverter
output sold compared with the first three months of the year.
Nonetheless, SMA believes installed PV capacity for the first
half of 2011 to be below the previous years level. The debate
surrounding the expansion of photovoltaic energy has deeply
unsettled end-customers in major solar markets and led to a
reduction in their willingness to invest, stated Pierre-Pascal Urbon,
CEO and CFO. That said, fundamental data for the solar industry has
improved over the last few months. The broad social consensus that
now surrounds the intensified expansion of photovoltaic energy, the
favourable interest level and the significantly reduced specific costs
of constructing a solar power plant compared with the beginning of
the year are good conditions for a significant rise in global demand in
the second half of the year, observes Urbon.
In the first half of 2011, SMA generated an EBIT of 103.7 million
compared with 2010s 219.9 million. Consolidated net profit was
73.5 million, down on the previous 2010 figure of 158.2 million.
All in all these results appear to show that while the renewables
sector remains largely bouyant, it is far from plain sailing to be a
success in an increasingly constrained market.
David Appleyard

7 t h E U R O P E A N C O N F E R E N C E 2 0 11

GREEN POWER

MARKETING
6 and 7 October 2011
Zurich, Switzerland

The European forum for market players and


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THE AGE OF RENEWABLE


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Invest two days and youll know all the key players
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www.greenpowermarketing.org

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A PRODUCT OF THE POWER-GEN FRANCHISE

WWW.SOLAR-POWERGEN.COM
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THE LAST
WORD
WATER AND RENEWABLES

Water resource availability is playing an increasingly


important role in the siting of renewable energy projects
While recent technological and policy developments in the US and collaborations with arid nations will offer many
benefits, Jerome Muys and Van Hilderbrand argue that each project will have different goals and present
different challenges in addressing water availability issues in respect of renewable energy project development.

cientists continue to raise concerns about water shortages due to


climate change, with receding glaciers, droughts and diminishing
mountain snow packs just some of the consequences. Meanwhile,
the worlds population continues to expand.
One approach to reducing greenhouse gases has been more
reliance on renewable energy. But energy projects, both conventional
and renewable, typically require large amounts of water. That means
the long-term physical and legal availability of water resources will
play an important role in the siting of renewable energy facilities.
In the US, federal programmes such as the Endangered Species
Act and the push to reserve water rights for parks, wilderness areas
and tribal lands are further limiting water availability for development.
To remedy this, two trends are emerging. First is an effort to colocate renewable energy projects with water reuse, reclamation
and desalinisation facilities. Second is a growing interest in new
water conservation technologies being developed in Israel and
other countries which have a long experience of dealing with
water shortages.

Collaborative Efforts
Some states are already taking a lead. Virginia, for example, formed
the Virginia Israel Advisory Board to recruit Israeli clean and renewable
energy technology companies to Virginia, and to assist those firms
in commercialising their technologies and services. The CleanTech
Gateway USA Program, a joint endeavour among the Advisory
Board, Dominion Energy, and the Dominion Resources GreenTech
Commercialization Center recently did just that, introducing several
Israeli companies to technical, financial and marketing experts
in Virginia.
Due to similar semi-arid climates and challenges in water and
other resource conservation, Israeli water, renewable energy and
clean technology companies have also been working with their
counterparts in New Mexico to exchange information, encourage
joint economic development, expand trade and solidify social and
economic ties between the two regions.
Meanwhile the federal government is bringing the states together
on joint projects. The Water Technology Innovation Cluster (WTIC) is a
joint effort of the Environmental Protection Agency (EPA) and the Small
Business Administration. Its mission is to promote the development of
technologies to protect Americas waters. Similar to the Silicon Valley
model of concentrating high-tech industries in the same geographic
space, the WTIC would group water technology companies in the

southwestern Ohio/northern Kentucky/southeastern Indiana region.


The EPA has invested US$5 million to get the project under way.

Technology Developments
New technologies are emerging in old areas. Many utilities are
meeting the demand for more water by upgrading the efficiency of
their infrastructure and creating a water smart grid much like the one
that is transforming the worlds electric power system. And the two
have much in common. Both are critical to support societal needs,
yet they are sprawling, aging and apparently haphazardly planned.
And although there is some intelligence at the nodes with each of
these networks, the systems are not very effectively networked.
One of the most important strategies for water utilities will be
the installation of smart water meters on customers premises.
Pike Research, a consulting firm based in Boulder, Colorado, that
provides analysis of global clean technology markets, expects 31.8
million of these units to be installed by 2016, up from 8 million in
2010. According to this research, the annual market revenues for
smart water meters will be expected to reach US$856 million by the
end of 2016, a 110% increase over 2010 levels. In addition, global
investment in smart water meters for the years 2010 to 2016 will
total $4.2 billion, according to Pike. Other technologies also under
consideration include advanced sensor networks and automation.
Considerable energy is invested in water production, treatment,
distribution and reuse, but current water systems do not
comprehensively measure usage in real time. Without measurement,
there are no data on which to base grid management. The electric
smart grid leverages the proliferation of measurement points,
collecting large amounts of data. Water networks do not. But a
data revolution in the water space has begun. In fact, analysing
available flow and pressure data to determine anomalies in real time,
or scheduling pumps and valves according to energy consumption
peaks and lows, is already part of the smart water solution today. We
are seeing signs of a change, and experts and analysts have finally
acknowledged the intersection of water and information technology.
In addition to water conservation technologies and a water smart
grid, scientists are looking to promising water-to-energy technologies,
such as harnessing wave and tidal energy to generate power. These
attempts have historically suffered from a threshold problem low
efficiency. However, new technologies have finally been successful in
effectively capturing the driving force in a wave cycle to create energy.
This technology manipulates a buoys movement in a wave cycle to

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maximise and harness kinetic energy to create electricity. A secondary


benefit is the ability to desalinate sea water directly using the energy it
generates. Although still in the pilot stage, this technology is extremely
promising. In addition, a number of new-generation technologies
have been successful in converting river, tidal and deep water ocean
currents into predictable, competitive supplies of electricity.
Another developing renewable energy technology combines solar
energy and surface water by creating a floating photovoltaic (PV)
solar array. This technology is being advanced by just a handful of
companies, yet the technology is gaining traction. One floating PV
array demonstration project is already operating with the collaboration
of a French utility provider, and additional projects are springing up in
India, California and many other markets.

The availability of water resources will


help determine which renewable energy
technologies will gain market success
Yet another example of fruitful R&D is waste water-to-energy
conversion. There technologies have emerged to address the dual
concerns of water quality and availability and the need for increased
renewable electricity generating capacity. The upside to implementing
or investing in a waste water-to-energy venture is potentially huge,
and new technologies revolutionise the economics of waste water
treatment by generating instead of consuming energy.
A variety of technologies show promise in this field. One uses
electrogenic bacteria to produce electricity from waste water while
simultaneously cleaning the water. Others trap and extract waste
water biosolids, and utilise the extracted biosolids to produce a range

of renewable energy products, including combustibles for power


plants, feedstock for cellulosic ethanol production and pulp products
for the paper industry. By generating electricity, municipal utilities can
also save millions of dollars in operating costs annually.
Not all energy technologies can be winners, however. The
availability and quality of water resources will also help to determine
which renewable energy technologies gain favour in the marketplace
and which ones potentially fail. Agriculture accounts for the largest
percentage of freshwater consumption; therefore, technologies such
as biofuels, which require the use of crops, will likely face adversity
and water resource shortages unless new water-conserving irrigation
methods are developed. This opens the door for technologies that
account for and limit water consumption to become the technologies
of choice.
It is encouraging to see a rise in water reclamation and renewable
energy project development. There can be many benefits to colocating such projects, as well as investing in or implementing one of
the new generation of convergence technologies. But each project
will have different goals and challenges. Before you leap into one of
them, do your homework, set your goals and priorities and spend
the time and money to get sound advice from qualified professionals.
Jerome C. Muys, Jr is a partner and Van P. Hilderbrand, Jr is an
associate in the Environmental & Natural Resources and Water
Resource Development Groups of law firm Sullivan & Worcester.
e-mail: jmuys@sandw.com; vhilderbrand@sandw.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com

Co Located With:

19-21 APRIL 2012, PRAGATI MAIDAN, NEW DELHI, INDIA

SWITCHING ON INDIAS
HYDRO POWER FUTURE
CALL FOR PAPERS - SUBMISSIONS CLOSE 14 OCTOBER 2011
HydroVision India invites you to submit an abstract for the HydroVision India 2012 conference as it
returns to New Delhi in 2012 with co-located events HydroVision India and POWER-GEN India &
Central Asia for its 2nd successive year under the theme (Switching on Indias Hydro Power Future).
Spanning over three days and across two tracks, HydroVision India 2012 is a key forum for senior
executives and industry leaders from across the globe to address important issues facing the
hydropower industry and new hydropower projects and technologies.
Take advantage of this opportunity and reach out to the industrys key decision makers at
HydroVision India 2012.
To submit your abstract for the conference, or for further information participating as a delegate or
speaker at HydroVision India 2012, visit www.hydrovisionindia.com
Event Organizers

Flagship Media Sponsors

Supporting Organization

WWW.HYDROVISIONINDIA.COM
___________
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European Photovoltaic Solar


Energy Conference and Exhibition
Hamburg, Germany
59 September 2011
WIPRenewable Energies
Sylvensteinstr. 2
81369 Mnchen, Germany
T: +49 89 720 12 735
F: +49 89 720 12 791
E: pv.conference@wip-munich.de
W: www.wip-munich.de
13th Renewable Energy Finance
Forum London
London, UK
2021 September 2011
Euro Money Energy
T: +44 207 779 8917
E: mirving@euromoneyplc.com
W: www.euromoneyenergy.com
Hydrovision Brazil
20-22 September 2011
PennWell International, Libby Smith
The Water Tower, Gun Powder Mill,
Powdermill Lane, Waltham Abbey
Essex EN9 1BN, UK
T: +1 918.831.9560
E: libbys@pennwell.com
W: www.hydrovisionbrazil.com
4th Renewable Energy Finance
Forum West
San Francisco, USA
2627 September 2011
Euro Money Energy
T: +44 207 779 8917
E: cwhite@euromoneyplc.com
W: www.euromoneyenergy.com
Renewable Energy World Asia
Conference & Expo
Kuala Lumpur, Malaysia
2729 September 2011
PennWell International, Neil Walker
The Water Tower, Gun Powder Mill,
Powdermill Lane, Waltham Abbey
Essex EN9 1BN, UK
T: +44 1992 656 643
F: +44 1992 656 700
E: neilw@pennwell.com
W: www.renewableenergyworld-asia.
com
__
7th European Conference on Green
Power Marketing 2011
Zurich, Switzerland
67 October 2011
Green Power Marketing GmbH,
Weberstrasse 10, CH-8004 Zurich
T: +41 43 322 05 56
F: +41 43 322 05 59
E: info@greenpowermarketing.org
W: www.greenpowermarketing.org

Send details of your event to: Renewable Energy World rew@pennwell.com

European Future Energy Forum


Geneva, Switzerland
1012 October 2011
Amanda Drury, Palexpo SA, Geneva
PO Box 112, CH-1218 GrandSaconnex, Switzerland
T: +44 7734 298 015
E: a.drury@turretme.com
W: www.europeanfutureenergyforum.
com
__
All Energy
Melbourne, Australia
1213 October 2011
All-Energy Events Pty Ltd, Lorrae
Ingham, Level 19, AMP Place,
10 Eagle Street, Brisbane QLD 4000
T: +61 411 407 514
E: lorrae@all-energy.com.au
W: www.all-energy.co.uk
Solar Power International 2011
Dallas, Texas, USA
1820 October 2011
Solar Electric Power Association
1220 19th Street NW, Suite 401,
Washington DC, 20036, USA
T: +1 202 857 0898
F: +1 202 559 2035
E: info@solarelectricpower.org
W: www.solarpowerinternational.com
China Wind Power 2011
Beijing, China
1921 October 2011
Global Wind Energy Council, Wind
Power House, Rue dArlon, 1040
Brussels, Belgium
T: +32 2 213 1898
F: +32 2 213 1890
E: info@gwec.net
W: www.chinawind.org.cn
5th European Solar Thermal Energy
Conference
Marseille, France
2021 October 2011
European Solar Thermal Industry
Federation (ESTIF), Rue dArlon
6367, 1040 Brussels, Belgium
T: +32 2 546 1938
F: +32 2 546 1939
E: estec2011@estif.org
W: www.estec2011.org
RenewableUK 2011 Annual
Conference and Exhibition
Manchester, UK
2527 October 2011
RenewableUK, Greencoat House,
Francis Street, London SW1P 1DH,
UK
T: +44 20 709 013 000
F: +44 20 709 013 001
E: info@renewable-uk.com
W: www.renewable-uk.com

Solar Power UK 2011


Birmingham, UK
2628 October 2011
International Convention Centre, King
Edwards Road, Birmingham, UK
T: +44 207 871 0123
F: +44 207 871 0101
E: events@solarpowerportal.co.uk
W: www.solarpowerukevents.org
World Renewable Energy Asia
Regional Congress and Exhibition
(WREN Asia)
Chongqing, China
2831 October 2011
SudBE, Faculty of Urban
Construction and Environmental
Engineering, Chongqing University,
Chongqing, China, 400045
T: +86 18 223 006 391
F: +86 23 651 278 15
E: SuDBE2011@vip.163.com
W: www.sudbe2011.org
Envirotech & Clean Energy Investor
Summit
London, UK
910 November 2011
New Energy World Wetwork, Louise
Hartley, Zetland House, 1st Floor,
525 Scrutton St, London EC2A 4HJ,
UK
T: +44 207 749 1270
E: events@newenergyworldnetwork.
com
W: www.envirotechinvestorsummit.
com
__
European Offshore Wind 2011
Conference and Exhibition
Amsterdam, Netherlands
29 November1 December 2011
Rue dArlon 80, B-1040
Brussels, Belgium
T: +32 2 213 18 60
E: events@ewea.org
W: www.offshorewind2011.info
Asia SOLAREXPO
Shenzhen, China
35 December 2011
PennWell International, Amanda
Kevan, The Water Tower, Gun Powder
Mill, Powdermill Lane, Waltham
Abbey, Essex EN9 1BN, UK
T: +44 1992 656 645
E: amandak@pennwell.com
W: www.asiasolarexpoevent.com

Intersolar China
Beijing, China
79 December 2011
MMI (Shanghai) Pvt Ltd, Solar
Promotion International GmbH,
Freiburg Management and Marketing
International GmbH, Solar Promotion
International GmbH, Kiehnlestr. 16,
75172 Pforzheim, Germany
T: +49 7 231 585 980
F: +49 7 231 585 9828
E: info@intersolarchina.com
W: www.intersolarchina.com
Intersolar India
Mumbai, India
1416 December
MMI India Pvt Ltd, Solar Promotion
International GmbH, Freiburg
Management and Marketing
International GmbH, MMI India Pvt
Ltd, 5th Floor, Lalani Aura, 34th Road,
Khar West, Mumbai 400 052, India
T: +91 22 4255 4700
F: +91 22 4255 4719
E: info@mmi-india.in
W: www.intersolar.in
World Future Energy Summit
Abu Dhabi, UAE
1619 January 2012
Reed Exhibitions Middle East
PO Box 60799, Abu Dhabi, UAE
T: +971 2 444 6113
F: +971 2 444 3768
E: ria.andaya@reedexpo.ae
W: www.worldfutureenergysummit.
com
__
Renewable Energy World North
America Conference & Expo 2012
California, USA
1416 February 2012
PennWell International, Sarah Jantz,
1421 S. Sheridan Road, Tulsa,
Oklahoma 74112, USA
T: +1 918 831 9430
F: +1 918 831 9729
E: sarahj@pennwell.com
W: _______________
www.renewableenergyworldevents.com
______
ExpoSolar 2012
Kintex, Korea
1517 February 2012
13th floor Shinhan DM building, 33-1
Mapo-dong, Mapo-gu, Seoul, 121708, Korea
T: +82 2 718 6931
F: +82 2 715 8245
E: expo@infothe.com
W: www.exposolar.org/2012/

RENEWABLE ENERGY WORLD SEPTEMBEROCTOBER 2011

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HydroVision Russia
Moscow, Russia
57 March 2012
PennWell International, Crispin
Coulson, The Water Tower, Gun
Powder Mill, Powdermill Lane,
Waltham Abbey, Essex EN9 1BN, UK
T: +44 1992 656 646
F: +44 1992 656 700
E: crispinc@pennwell.com
W: www.hydrovision-russia.com

European Offshore Wind 2012


Conference and Exhibition, EWEA
2012
Copenhagen, Denmark
1619 April 2012
EWEA, Rue dArlon 80, 1040
Brussels, Belgium
T: +32 2 213 18 60
E: events@ewea.org
W: http://events.ewea.org/
annual2012/
_______

RenewableUK Wave & Tidal 2012


Edinburgh, UK
15 March 2012
RenewableUK, Simon Becker,
Greencoat House, Francis Street,
London SW1P 1DH, UK
T: +44 20 7901 3032
E: s.becker@renewable-uk.com
W: www.events.renewable-uk.com

Renewable Energy World India


New Delhi, India
1921 April 2012
PennWell International, Helen Lomas,
The Water Tower, Gun Powder Mill,
Powdermill Lane, Waltham Abbey,
Essex EN9 1BN, UK
T: +44 1992 656 654
F: +44 1992 656 700
E: helenl@pennwell.com
W: www.renewableenergyworldindia.
com
__

8th South-East European Congress


and Exhibition on Energy Efficiency
& Renewable Energy
Sofia, Bulgaria
2830 March 2012
Via Expo Ltd, Maya Krasteva, 4003,
Anton Chechov Square, Plovdiv 3,
Bulgaria
T: +359 32 945 459 960
F: +359 32 011 960 012
E: office@viaexpo.com
W: www.eeandres.viaexpo.com

Hydrovision India
New Delhi, India
1921 April 2012
PennWell International, Amanda
Kevan, The Water Tower, Gun Powder
Mill, Powdermill Lane, Waltham
Abbey, Essex EN9 1BN, UK
T: +44 1992 656 645
F: +44 1992 656 700
E: amandak@pennwell.com
W: www.hydropowerindia.com

Sustainabilitylive!
Birmingham, UK
2224 May 2012
Faversham House Group Ltd
Jordana Gavin, Faversham House,
232a Addington Road, South
Croydon, Surrey CR2 8LE, UK
T: Tel: +44 20 8651 7088
E: jordana.gavin@fav-house.com
W: www.sustainabilitylive.com

WINDPOWER 2012
36 June 2012
Atlanta, Georgia, USA
American Wind Energy Association
1501 M Street NW, Suite 1000 |
Washington, DC 20005 USA
T: 202.383.2500
F: 202.383.2505
E: windmail@awea.org
W: www.windpowerexpo.org

All Energy 2012


Aberdeen, UK
2324 May 2012
Media Generation Group plc
11A Princes Square, Harrogate HG1
1ND, UK
T: +44 20 8241 1912
F: +44 20 8940 6211
E: info@all-energy.co.uk
W: www.all-energy.co.uk/

ASME Turbo Expo


Copenhagen, Denmark
11-15 June 2012
ASME
Three Park Avenue
New York, NY 10016-5990, USA
T: +1 973.882.1170
E: infocentral@asme.org
W: http://www.asmeconferences.org/

World Bioenergy 2012


Jnkping, Sweden
2931 May 2012
Svebio, Torsgatan 12 plan 3, 111 23
Stockholm, Sweden
T: +46 844 170 80
F: +46 844 170 89
E: worldbioenergy@svebio.se
W: www.worldbioenergy.com

Advertisers index
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GAMESA CORPORACION TECNOLOGIA
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87
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77
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HUBER SUHNER AG
25
HYDROVISION INTERNATIONAL
CONFERENCE & EXHIBITION 2012
90
HYTORC, DIVISION OF UNEX CORP
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HYUNDAI HEAVY INDUSTRIES CO., LTD. 3, 5
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Renewable Energy World Europe


Conference and Expo 2012
Cologne, Germany
1214 June 2012
PennWell International, Helen Lomas,
The Water Tower, Gun Powder Mill,
Powdermill Lane, Waltham Abbey,
Essex EN9 1BN, UK
T: +44 1992 656 654
F: +44 1992 656 700
E: helenl@pennwell.com
W: _______________
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______

Renewable
Energy World
SEG PV CO., LTD.
31
SHANGHAI NEW ENERGY INDUSTRY
ASSOCIATION - SNEC PV POWER EXPO 2012
16
SIEMENS AG
49
SMA SOLAR TECHNOLOGY AG
43-45
SOLAR PROMOTION GMBH - INTERSOLAR
EUROPE 2012
65
SOLAR PROMOTION INTERNATIONAL GMBH INTERSOLAR INDIA 2011
23
SOLAR POWERGEN CONFERENCE 2012
88
SOVELLO AG
42
SPUTNIK ENGINEERING
IBC
SUNGROW POWER SUPPLY CO., LTD.
38
THE CENTRAL GROUP
50
TROJAN BATTERY COMPANY
13
TSINGHUA SOLAR SYSTEMS LTD.
22
UNIVERSITY OF GENEVA
26
UPSOLAR EUROPE SAS
37
VALENTIN ENERGY SOFTWARE
28
YOKOGAWA CORPORATION OF AMERICA 30

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Maximise

your yield!

Visit our booth: B7/B36


__________________

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__________

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SolarMax inverters are made to deliver full capacity and a clever
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SEPTEMBEROCTOBER 2011

STRATEGIES FOR
GRID PARITY
RANKING US
SOLAR UTILITIES

FEATURES
RENEWABLE
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GERMANYS NEW SOLAR SECTOR OPPORTUNITIES


THE INTERVIEW: CANADIAN SOLARS DR SHAWN QU
EUROPEAN PV PRICE CONVERGENCE TRENDS

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aressy.com

WORLD

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Change for more energy efficiency?


Naturally.
-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
__________

AC500 Programmable Logic Controller


Soaring energy prices and concern about climate change from man-made emissions
of carbon dioxide have propelled energy efficiency to the top of the agenda in the
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CONTENTS
SEPTEMBEROCTOBER 2011

NEWS AND VIEWS


LARGE SCALE SOLAR IS A SUPPLEMENT
TO RENEWABLE ENERGY WORLD

GROUP PUBLISHER Ralph Boon


SENIOR VICE PRESIDENT Tom Fowler

From the editor

News/analysis
Including the latest analysis from Lux Research, which concludes that the solar
industry must find new markets in order to sustain growth momentum, as well
as a profile of the Concentrating Solar Power (CSP) Gemasolar plant in Spain.
This system recently reached peak production levels of more than 350 MWh but,
more significantly, the plant succeeded in delivering 24 hours of
uninterrupted operation.

CHIEF EDITOR David Appleyard


CONSULTING EDITOR Jackie Jones
ASSOCIATE EDITOR Tildy Bayar
PRODUCTION EDITOR Piers Evans
DESIGN/PRODUCTION Shyam Gosai
PRODUCTION MANAGER Kimberlee Smith
SALES MANAGERS Peter Andersen, Natasha
Cole, Dan Harper, Kate Hart, Ekow Monney,
Sandra Spencer
DIGITAL SALES MANAGER Leo Wolfert
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POSTMASTER send address changes to Renewable


Energy World

US solar utility rankings

Each year the Solar Electric Power Association (SEPA) presents its rankings
for the top US utility groups, in terms of both installed solar capacity and watts per
customer. Here we examine the highlights of the report and its associated analysis.
By David Appleyard

The elusive milestone

In the world of renewables, particularly solar, grid parity is a term that is much
bandied about, and often misunderstood. For solar power to experience
sustainable growth, strategies for making grid parity part of an ongoing process will be
become necessary.
By Richard Baillie

European PV pricing trends

Exploring the current trends in photovoltaic system costs and market trends in
Europe, here we take a look at key regulatory and manufacturing influences that
are revealed in the latest report to emerge from IHS Research and which are
expected to play out over the coming months.
By David Appleyard

Germanys PV market prospects

Prospects for the German PV sector have significantly improved with recent news
that the government will not now be enforcing additional tariff cuts. Here we
explore the market and the recent developments that will influence its future growth.
By Tildy Bayar

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19

The Interview

Dr Shawn Qu heads up one of the top tier of module supply companies.


As chief executive of Canadian Solar Inc, he is responsible for plotting a course
for this vertically integrated company across diverse markets, in some cases
from ingot to installation. He talks with REW about the companys approach to
matching manufacturing with market demand.
By David Appleyard

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FROM THE EDITOR


David Appleyard, Chief Editor, Renewable Energy World

Large-scale solar seems to be just getting into its


stride and already its heading along at an eyewateringly quick pace. Only a few short years
ago record-breaking installations were of a few
megawatts. Nowadays they are measured in the tens and
even hundreds of megawatts and just how long can it be
with the current headlong rush before we are talking about
gigawatt-scale power purchase agreements and associated
installations. If this sort of development doesnt bring
economy of scale its hard to imagine what else will. And
economy of scale has always been held as one of the major
milestones of the solar industry, akin to boosting low-cost
module efficiency to over 30% or securing an equitable and
economically viable long-term carbon price for renewable
and all other forms of generation. At one time all these
goals seemed almost impossibly far from reach, each like
some legendary and mythical grail. Now, at last, come the
economies of scale.
Whether in response to rising power prices, market
volatility, utility renewable portfolio requirements or other
policy-backed measures whatever the reasons, and there
are many the utility-scale solar company has, it seems,
emerged onto the global energy stage.
Were it needed, evidence of this evolution comes from
trade group the Solar Electric Power Association (SEPA), for
instance. In its latest analysis, which ranks the key players
in the utility solar sector of the US, SEPA reports a mixed
portfolio of development. For example, Californias Pacific
Gas and Electric (PG&E) installed 157 MW in 2010, giving
it the top slot in the rankings, but around two thirds of
its portfolio more than 100 MW was from distributed,
consumer-scale PV projects, with more than 10,000 projects.
In contrast, Florida Power and Light ranked second, having
installed 87 MW but almost exclusively from two largescale and utility-owned projects a 10 MW PV plant at the
Kennedy Space Center in collaboration with NASA and a
75 MW hybrid CSP installation at a gas-fired
combined-cycle power plant.

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This document provides a key insight into the health of


the US utility-scale solar market. But it also reveals just how
flexible owners, operators, developers and manufacturers
must be if they are to succeed in this highly competitive,
price-led business and its diverse distributed markets. More
of SEPAs utility rankings analysis may be found on page 7.
This theme of flexibility also emerges in our interview.
On page 19 we hear from Dr Shawn Qu, founder and
CEO of one of the worlds largest vertically-integrated PV
companies. Canadian Solar Inc not only manages assets
from ingot to module and provides turnkey EPC services,
but also executes a novel virtual supply chain concept.
We also take a detailed look at the German market, long

OWNERS, OPERATORS, DEVELOPERS


AND MANUFACTURERS MUST BE
FLEXIBLE IF THEY ARE TO SUCCEED
crowned the worlds largest and most successful solar region,
but now perhaps seeing that crown somewhat tarnished by
the increasingly strong competitive wind emerging from
the east as well as its own retrenchment on feed-in tariffs.
We explore the next chapter in Germanys large-scale solar
sector starting on page 17.
Economy of scale is of course just one of the mechanisms
that can be used to reduce system costs. We consider it
along with several other factors likely to influence the
forward pricing curve in our coverage of a new report from
IHS Research in which we present the views of one of their
leading analysts. We also take a look to the future and to
what many may consider the end game. As solar system
technology reaches the nirvana of grid parity, what will be
written in the next chapters of solar powers evolution? Our
feature starting on page 12 ponders just that, and some of
the vital questions that follow.

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GLOBAL SOLAR MARKET OUTLOOK

SHIFT SEEN IN
SOLAR MARKETS
Despite cuts to solar subsidies
over the past few years, a new
report from Lux Research finds
that solar installations have
continued to rise driven primarily
by increased demand from a
single market: Germany. (For
an in-depth look at the German
PV market, see our feature on
page 17.)
However, as manufacturers
approach near-term limits on
cost reductions, German demand
will begin to decline, the report
says. As the German market
shrinks and debt-ridden European
governments limit subsidies, the
industry desperately needs to
locate new markets to forestall
a shakeout.
As a result, demand will shift
to Asia and North America and
the solar market will grow in terms
of MW installed, but revenues
will stay flat as price declines
outpace volume growth, the
analysis concludes.
The report, Market Size
Update 2011: Putting the Rest
of World on the Map of Global
Solar Demand from Lux Solar
Systems Intelligence and Lux
Solar Components Intelligence
predicts that solar demand will
shift to a broader range of markets
over the next five years, with
Japan, China and India emerging.
Meanwhile, the US will become
a key player given government
support of tax equity through
2016 and a number of state-level
programmes, Lux says.

Solar installations continue to rise despite tariff cuts


Environmental Way

ON THE UTILITY-SCALE GROUND


INSTALLATION SIDE, PORTUGAL TOPS
THE LIST
The global solar market
for grid-connected systems will
grow from 15.8 GW in 2010 to
37.5 GW in 2016, a compound
annual growth rate of 15.5%, said
analyst Matt Feinstein. However,
price declines will outpace
volume increases, at least at
first the industry will actually
shrink on a revenue basis from
US$64.4 billion in 2010 to $56.9
billion in 2012 before recovering to
$65.4 billion in 2016.
Leading internal rate of return
(IRR) markets such as New Jersey,
Australia and Greece are attracting
attention in 2011. With subsidies,
a surprising number of markets

have IRRs worthy of investment.


According to the analysis, the
most attractive markets for
commercial solar installations are
New Jersey (42%), Portugal (37%)
and Hawaii (34%).
In terms of utility-scale
ground-mounted
installations,
it is Portugal (with an IRR of
81%) which tops the analysts
list, followed rather distantly by
New Jersey (58%) and Cyprus
(44%). However, by 2016, viable
investment targets will increase
dramatically to encompass 45
residential markets, a whopping
88 commercial markets, and
85 utility markets.

Subsidies and grid parity


arent necessary to generate
positive demand, Lux finds in
this analysis, arguing that an
anticipated future increase in the
cost of retail and wholesale power
is all thats necessary to generate
this demand even in countries
without subsidies and similar
policies in place.
Brazil,
for
example,
is
projected to reach a 12%
unlevered, unsubsidised IRR for
commercial
multi-crystallinesilicon systems at the end of 2016
even though solar will not yet
have reached grid parity. Indeed,
of 55 geographies demonstrating
unsubsidised IRRs above 10% at
the end of 2016, only 10 will have
reached grid parity, Lux believes.
Commercial rooftop PV is
expected to become directly
competitive with conventional
electricity soonest, with 10
geographies at that point by 2016.
The number of commercial
rooftop markets reaching parity
will grow from one in 2010 to 10
in 2016, including the Dominican
Republic and Nicaragua. Hawaii
will be the first to accomplish
residential grid parity in 2011, but
by 2016 it will be joined by Italy,
Denmark and Ukraine, forecasts
the report. For utility-scale groundmount installations, the number
remains small.
Crystalline silicon solar cells will
maintain their overall dominance,
says Lux, but other forms of PV
will grow at a faster rate.

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HIGH TEMPERATURE SOLAR POWER

TOWER POWERS
FOR 24 HOURS
The 350 MWh per day, 24-hour
operations, solar power plant is
now a reality. The first commercial
plant to use molten salt storage in
a central tower configuration with
a heliostat field, in operation since
May, yielded better than expected
results, its developers say.
With its 19.9 MW of rated
power, the Gemasolar plant
reached peak production levels of
more than 350 MWh in 24 hours
of uninterrupted operation.
Thanks to its storage capacity,
in July Gemasolar was able to
supply energy during the hours
of highest demand in Spain:
12 pm and 10 pm. August is also
expected to deliver a significant
load factor for the plant.
Gemasolar boasts a storage
capacity of some 15 hours at full
operation. This makes it possible
for it to supply energy to the grid
based on demand, regardless of
whether there is constant solar
radiation, its operators say.
Indeed, with this project,
it appears that generating fully
dispatchable power from solar
energy sources has finally become
a reality.
It is expected that Gemasolar
will produce an annual net total
output of more than 110 GWh by
operating for a total of 6450 hours
a year at full capacity.
Inevitably, the summer months
are when the plant is at its greatest
efficiency,
therefore
Torresol
Energys technicians estimate
that come mid-September, its

equivalent average production


time will be some 18 hours at full
capacity per day.
The Gemasolar plant, located
in Fuentes de Andaluca (Seville),
is a property of Torresol Energy,
a joint venture between the
engineering and technology group
SENER and Masdar, Abu Dhabis
renewable
energy
initiative.
SENER has been responsible for
supplying all of the technology
and the engineering detail design
for Gemasolar, and for leading the
EPC and commissioning works of
the plant.
As for Masdar, a strategic
developer of renewable energy
power projects, the company
says it is proud of the commercial
approach they have taken to
funding and operating this facility.
Felicia Bellows, executive
vice president of Development for
Torresol Energy USA, explains:
Currently we are the only company
in the world that is commissioning
a commercial central tower project
with molten salt receiver capable
of absorbing 90% of the solar
radiation. Gemasolar is Torresol
Energys flagship project because
of its innovative technology, and
in the short term we expect to be
able to develop similar plants on
the South West Coast of the US,
where there are optimal levels of
solar irradiation.
Frank Wouters, director of
Masdar Power, said: The first
months of Gemasolars operation
have exceeded expectations.

Storage allows the Gemasolar CSP plant to supply power, even during the
hours of darkness
Gemasolar

Masdar
Power
believes
in
introducing and launching new
technologies in the clean energy
spectrum, and we will continue
to explore fresh opportunities
to
implement
such
novel
technologies that will bring multiple
benefits to the community.
Mercedes
Sierra,
vice
president of SENERs office in
the US, added: The efficiency of
this technology... is proving to be
vastly superior to conventional
solar technologies, either without
storage systems or which cant
reach such high temperatures.
The Gemasolar installation
can reach operating temperatures
of more than 500C, much higher
than other types of concentrating
solar plant, which use parabolic
trough technology. It does not
require oil as a heat transfer
medium, but rather directly uses
the salt as a transfer fluid.

The receiver, located at the


top of the tower over 130 metres
high, is the focal point of the 2650
heliostats of the solar field (spread
across 185 hectares of rural
land). These tracking helistats
concentrate the solar irradiation at
a ratio of 1000:1.
The molten salt is subsequently
passed to a heat exchanger which
generates pressurised steam to
move a conventional turbine. The
use of higher temperatures and
pressures significantly increases
the plants efficiency.
Meanwhile, some of this hot
salt is stored in order to continue
generating electricity while there is
no sunshine.
The power generated by
the Gemasolar installation is
sent through a high-tension
transmission line to the substation
at Villanueva del Rey, where it will
be supplied to the grid.

For more info, enter 59 at rew.hotims.com

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REGIONAL MARKETS
By David Appleyard

SOLAR UTILITY
RANKINGS: US
PROSPECTS FOR DIVERSITY IMPROVE

Each year the Solar Electric Power Association (SEPA) presents its rankings for the top US utility groups, in terms of both
installed capacity and installed watts per customer. Here we examine the highlights of the report and its associated analysis.

Measuring a utilitys newly installed solar power including both


photovoltaic (PV) and concentrating solar power (CSP) technologies
provides an excellent snapshot of the industry. Considering everything
from distributed customer systems to wholesale contract purchases
from independent power producers (IPPs) to utility-owned projects
that were interconnected throughout the 2010 calendar year, in terms
of annual solar megawatts, Californias Pacific Gas and Electric (PG&E)
installed 157 MW in 2010, which secured it the top position in the
annual solar rankings. However, PG&Es 2010 solar portfolio was
about two-thirds distributed customer PV projects, with more than
10,000 projects totaling more than 104 MW. PG&E also purchased
the output of the 48 MW Copper Mountain PV facility.
In contrast, Florida Power and Light (FPL), the second ranked
utility, installed 87 MW, largely based on two utility-owned projects
a 10 MW PV project at the Kennedy Space Center and a 75 MW
hybrid CSP power plant at a combined-cycle natural gas plant. Public
Service Electric and Gas (PSE&G) of New Jersey maintained its thirdplace position in 2010 through a 75 MW portfolio, of which about
30% was utility-owned and 70% was customer rooftop type projects.
Tri-State Generation and Transmission Cooperative Association,
in Colorado, was the highest ranked cooperative utility at sixth
on the list, based on a power purchase agreement (PPA) with the
30 MW Cimarron PV project. Other newcomer utilities to this
years Top 10 include Jersey Central Power and Light, ranked ninth
after interconnecting 1150 distributed systems in 2010, and North
Carolinas Duke Energy Carolinas, ranked tenth on the strength of
two very different projects. Some 12 MW of the 15.5 MW Davidson
Solar Facility in North Carolina completed in 2010, along with the
deployment of more than 7 MW of utility-owned, customer-sited solar.
All but one of this years top 10 players were investor-owned utilities
(IOUs), which may be a result of their larger average size relative to
municipal and cooperative utilities. The top ranked municipal utilities
were CPS Energy, in San Antonio, at number 11 and the Jacksonville
Electric Authority (JEA), in Florida, at number 13, both ranked after
the completion of larger-sized PV plants under PPAs. After Tri-State

Generation and Transmission, the next ranked cooperative utility was


Kauai Island Utility Cooperative in Hawaii at number 52 with 0.8 MW.
The total annual capacity of the Top 10 utilities has grown
exponentially over the past three years, rising from 167 MW in 2008
to 561 MW in 2010. It required a minimum 20 MW for an individual
utility to rank in the Top 10. However, the Top 10s share of overall
capacity declined from 88% in 2008 to 72% in 2010, indicating a
broadening of the market.

TOTAL ANNUAL CAPACITY OF THE


TOP 10 UTILITIES HAS GROWN
EXPONENTIALLY OVER THREE YEARS
Geographical spread
Turning to the geographic distribution, seven of this years Top 10
utilities were from outside California and four were located in the
eastern region, both increases from prior years. Non-California states
share of the market increased from 25% in 2008 to 63% in 2010.
Overall, US solar markets are expanding well beyond California.
As previously predicted, 2010 was a growth year for centralised
projects. In 2010, eight projects greater than 10 MW, totaling
226 MW, were completed, making up 29% of the market, versus three
totaling 62 MW in 2009. This centralised trend in growth is expected
to continue through 2011 and beyond, as 24 projects, each greater
than 10 MW and totaling more than 1 GW, are already completed or
currently under construction in 2011.
Beyond FPLs 75 MW CSP project, the rest of the projects in the
Top 10 were all PV technology, which records 87% of the total. These
PV projects, which ranged in size from 1 kW residential installations
to 48 MW power plants, have much shorter planning horizons
and project completion times, along with lesser siting, permitting,
financing and transmission requirements at these small- and mediumsized scales. However, larger PV and CSP projects (those greater

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REGIONAL MARKETS
than 50 MW) require overcoming financing, siting/permitting and
transmission barriers that might emerge at these larger sizes. CSP
represents over 6 GW of the over 15 GW of future solar projects that
are being tracked, but there are differences in project development
between CSP and PV. Sub-sections of the larger PV project can be
energized over time, resulting in lower construction risk and balancesheet impact. Conversely CSP projects must be fully completed
before commissioning, which may take several years.
Utility ownership was a new impact on this years rankings. Thirty
utilities reported owning 140 MW of new solar, or 18% of the total
market, up from an estimated 30 MW, which represented 9%, in 2009.
The Top 10 ranked utilities owned 23% of their total annual capacity,
with three utilities owning more than a third Arizona Public Service,
Duke Energy Carolinas, and FPL. While most utilities future plans for
ownership involve distributed projects, 2010 was the exception due
to FPLs two large centralised projects. The utility ownership trend is
expected to continue its growth, with at least 1100 MW of announced
utility-owned projects in the pipeline over the next few years.

Per customer rankings


Silicon Valley Power (CA) ranked first nationally with nearly 40
watts-per-customer, followed by PSE&G with 35.2 watts-percustomer. However, these two utilities are very different. Silicon
Valley is a California municipal with just under 52,000 customers,
average electricity rates and a better-than-average solar resource. It
interconnected just over 1.8 MW of PV from 74 distributed customer
systems in 2010. PSE&G, in contrast, is a large New Jersey investorowned utility with more than 2.1 million customers, in a region with
higher-than-average electricity rates and a lower-than-average solar
resource, which interconnected 75 MW from 1057 PV systems, of
which 13% is utility-owned.
The top five utilities were rounded out by Hawaiian Electric Co,
Colorados Xcel Energy, and PG&E, all investor-owned utilities in the
western region. Two newcomers to this years survey, Floridas JEA and
Atlantic City Electric of New Jersey, jumped into the rankings. JEAs
2010 capacity was attributed to the installation of the Jacksonville
Solar facility, a centralised 12 MW plant. In contrast, Atlantic City
Electrics 2010 capacity was 100% distributed customer projects.
Kauai Island Utility Cooperative, in Hawaii, and Kit Carson Electric
Cooperative, in New Mexico, were the highest ranked cooperative
utilities at numbers 12 and 17, respectively. Overall, the median
watts-per-customer for the top 10 utilities increased by 50%, from
20 to nearly 30 watts-per-customer between 2009 and 2010, which
indicates that annual solar capacities quickly increased this past year.
In contrast to prior years, larger utilities are now ranking in this
category in greater numbers. In 2009, just three Top 10 utilities had
more than 100,000 customers, while this years list includes seven
large utilities six IOUs and one municipal utility. The rankings of
these larger utilities are a testament to the growth of solar it takes
more megawatts to reach these rankings with more customers.
However, the watts-per-customer rankings can be much more variable
than megawatts rankings since a lower amount of solar from a smaller
utility could easily be ranked in future surveys. There was also greater
geographic diversity in this years list, with utilities from six different

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This 10 MW installation at the Kennedy Space Center is one of FPLs largest


NASA

states making the list, including three from the East. In 2009 there
were four different states, of which none were in the East.
Unlike last year, the watts-per-customer utility portfolios were
driven by both distributed and centralised generation projects,
but this varied significantly by utility five utilities had exclusively
distributed projects, one exclusively centralised projects (or nearly
so), and four a mixture. For example, more than 55% of Coloradobased Xcel Energys 2010 solar portfolio was achieved through
centralised projects while Black Hills Energy Colorado Electric was
entirely distributed and JEA nearly entirely centralised.
Utility ownership played a smaller role in determining the wattsper-customer ranking. Two of the ranked utilities, Arizonas Tucson
Electric Power and PSE&G, installed utility-owned projects in 2010, in
contrast with six in the Top 10 utilities by megawatts. This is partially
due to the fact that three of the 10 are municipals, which for a variety
of reasons (primarily taxation) are less likely to own solar projects.

Cumulative capacity
In terms of cumulative capacity to the end of December 2010,
Southern California Edison (SCE) and PG&E ranked first and second,
respectively, for the third straight year, though PG&E is gaining
ground. The majority of SCEs portfolio (62%) is derived from longstanding PPA contracts with the nine SEGS CSP plants, while PG&Es
portfolio is largely distributed, customer-sited systems. PSE&G and
FPL were ranked third and fourth respectively, with PSE&G edging
FPL by just 0.1 MW or 0.08%. A similarly close race was seen between
Nevadas NV Energy at fifth and Californias San Diego Gas and
Electric (SDG&E) at sixth, with only 0.5 MW or 0.6% separating them.
All amazingly close given the multi-year solar development they have
undertaken in very different state markets.
All Top 10 utilities were investor-owned and eight of the 10
utilities were in last years rankings too, with the two newcomers
being Atlantic City Electric Co and Jersey Central Power and Light.
Both utilities integrated distributed solar for the most part.
Geographically, the Eastern region doubled its representation in
this years rankings for this category, from two to four. The remaining
six Top 10 utilities for this category are all located in the West.

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The Western region also continues to dominate the 2010


cumulative watts-per-customer rankings. As in the previous three
years, all utilities represented in this category were located within
the Western region and the top three utilities remained unchanged
from 2009. SCE took the top place for the fourth consecutive year
and Kauai Island Utility Cooperative the Top 10s highest ranked
cooperative utility followed in second place. Californian municipal
Palo Alto Utilities maintained its third place ranking for the third year.
The diversity of utility types in these top three spots is indicative of
the more open competition that this category represents.
Centralised projects accounted for approximately 38% of the Top
10s cumulative capacity while utility-owned generation accounted
for less than 2%.

PG&E and SCE maintain their number one and two positions
respectively, while Tucson Electric Power climbed onto this years list
after seeing the installation of a diverse group of both centralised and
distributed projects in 2010. Six of the utilities represented in these
rankings are also present on the national MW rankings list. The Top 10
changed little from 2009, with eight utilities repeating from last year.
Altogether, this region saw the installation of nearly 29,950 PV
projects in 2010. In addition, nearly 30% of the regions capacity was
obtained from centralised projects, all of which were PV.

Utility types

Cooperative utilities, by the nature of their more rural service


territories, are some of the smaller utilities in the country. They have
traditionally ranked well in the watts-per-customer category. However,
Regional rankings
with more and more IOUs adding unprecedented amounts of solar to
The Eastern region has quickly grown into a major solar market. their grids, it has become difficult for the cooperatives to maintain
In the National rankings, four eastern utilities placed in the Top 10 high national rankings. Nonetheless, in 2010 cooperative utilities
megawatts category and three in the Top 10 watts-per-customer. The increased their total annual solar capacities by nearly 690%.
Eastern region made up approximately 37% of the nations 2010 solar
Investor-owned utilities represent the largest customer
capacity, with approximately 50% from centralised projects.
base of the three major utility types, representing more than
FPL took this years top spot. Its annual solar capacity increased 56 million customers or 81% of the survey total. Similarly, they
more than 195% from its 2009
represent the largest share of
annual solar capacity of 29.5
national annual solar capacity, at
SOUTHERN CALIFORNIA EDISON
MW. PSE&G, which can also
AND PG&E RANKED FIRST AND SECOND 84%.This years IOU Top 10 is
attribute a large portion of its
FOR THE THIRD STRAIGHT YEAR
annual solar capacity to utilitynearly identical to the national
owned projects, followed closely
Top 10, with each utility moving
in second. Additionally, five newcomers placed in this years Top up one spot since Tri-State G&T, a co-op, was removed. The lone
10: Jersey Central Power and Light, Atlantic City Electric Co, JEA, exception was New Jerseys Atlantic City Electric, which ranked
as well as PECO Energy Co and Metropolitan Edison Co both from 10th on the list and whose 2010 portfolio was entirely composed of
Pennsylvannia. Overall, the Top 10 represent eight IOUs and two distributed, customer-owned PV projects. IOU utilities ranked 11 and
municipal utilities from six states.
higher made up about 17% of the category total, compared to 11%
The Central region represented less than 6% of the nations last year.
total annual capacity in 2010. However, despite having limited solar
Municipal utilities have traditionally ranked in both the Top 10
RPS requirements, the region is displaying strong growth, having lists. While 2010 saw strong municipal solar growth, these utilities
increased its annual capacity by 350% between 2009 and 2010 with only appeared in the national watts-per-customer rankings this year,
Ohio and Texas proving to be growing markets.
despite installing the fifth and sixth largest solar projects last year.
This years top ranked utility was CPS Energy, the municipal
As a whole, municipals had a very strong year for solar. The annual
utility for the city of San Antonio, Texas, which had more than seven capacity from all participating municipal utilities was 87.5 MW an
times the annual solar capacity of last years highest ranked utility in increase of more than 165% over the 2009 total. The Top 10 utilities
this category after the completion of the 14.5 MW Blue Wing Solar represented all three regions, led by the Western region with six
project. Ohio Power followed in second place, after signing a PPA for utilities, followed by the Eastern region with three and the Central
the energy generated by the nearly 10 MW Wyandot Solar facility. region with one.
These two projects made up about two thirds of the regional total.
This years top ranked utilities include four municipal utilities, five Author details:
IOUs, and one wires-only utility across five states within the region.
Utility-owned solar did not play a large role in the region during 2010,
with less than 1% of Top 10 capacity coming from utility-owned solar. David Appleyard is Chief Editor of Renewable Energy World magazine
The Western region continues to lead the nation, with nearly 57% e-mail: rew@pennwell.com
of the countrys annual installed solar. California contributed 63%
of regional solar capacity in 2010, followed by Colorado with 17%, This article is available on-line. To comment on it or forward it to a
Arizona with 11%, and Hawaii at 3%. However, many of the remaining colleague, visit: www.RenewableEnergyWorld.com
states in the region, such as Nevada, Oregon and New Mexico also
have active solar markets and utilities.

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Hanwha Solar sees brighter tomorrows


From raw silicon and module production to project management and financing.
Hanwha Solar offers the world's green industries fully integrated solar solutions.
Hanwha has the technologies, the experience, and the will to succeed. Join us!

Redefining Vertical Integration


Crystalline Silicon
Ingot & Wafer Processing
Cell Manufacturing
Module Assembly
Project Development

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________

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Our future lies


wherever the sun shines

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GRID PARITY
By Richard Baillie

SOLARS SEARCH
SEEKING THE ELUSIVE MILESTONE
For solar power to experience sustainable growth, strategies for achieving grid parity will be required. As part of an
ongoing process it will be necessary for developers to address system costs, finance, investment and Feed-in Tariffs.
In the world of renewables, particularly solar, grid parity is a term that
is bandied about a lot. But what does it actually mean, and when is it
going to happen?
To complicate matters, the price of electricity from the grid varies
widely between areas. For example, in the US prices range from
high-cost jurisdictions such as Hawaii and California to lower-cost
jurisdictions such as Wyoming and Idaho.
In a sunny island market such as Hawaii with diesel-generated
electricity, electric rates approaching US$0.30/kWh, and falling
module prices it makes considerable economic sense for consumers
or utilities to install solar arrays, with the right infrastructure and
regulations in place.
For similar reasons, a host of other markets Italy, Spain, Australia,
Germany, Japan, and the US (California, Texas) are widely expected
to achieve grid parity within the short to medium term.
Moreover, in some countries, wind power, landfill gas and certain
forms of biomass generation are already lower-cost (on a per kWh
basis) than electricity provided from the grid. In fact, grid parity
has already been achieved in certain jurisdictions that continue to
use feed-in tariffs (FiTs). For example, the generation costs from
landfill gas systems in Germany are currently lower than the average
electricity spot market price.
In remote areas electricity from solar photovoltaics (PV) can be
cheaper than building new distribution lines to connect to the main
transmission grid. This makes the notion of grid parity elusive.

Probably the best answer for solar is given by Ernst & Young,
who argue that because so much solar power is likely to be installed
in the built environment (displacing electricity consumed from the
buildings on which it sits), solar grid parity is quite likely to be judged
by reference to the retail rather than the wholesale price of electricity,
with a deduction for the cost of the subsidy itself where it is recovered
as part of that price.

A MOVING TARGET
When grid parity is going to be achieved is another tricky question,
and varies greatly from place to place. Again according to Ernst &
Young, retail grid parity may be reached generally between 2012 and
2015 with, for example, the US to the fore and the UK having the
prospect of parity in 2015, if retail electricity prices continue to rise.
However, if solar is judged by the harsher test of wholesale price
parity, then it is not expected to be achievable until about 2030 in
Italy with concentrating solar power (CSP) achieving parity a few
years earlier, between 2025 and 2027 in California and Spain, the
company believes.
Other forecasters offer different estimates that would result in
grid parity happening sooner. UN expert Sven Teske, a contributing
author to the Intergovernmental Panel on Climate Change (IPCC)s
recent report on renewable energies as well as renewables director
at Greenpeace, says the EU is on track for solar grid parity as early

COSTS MAKE COMPARISON DIFFICULT


But there is still a meaningful difference between grid parity at higher
retail prices and at lower wholesale prices. Even then there are
discrepancies, with some retail territories offering time-of-use pricing
that impact on the value of generation from the solar system.
With wholesale pricing the comparison is even harder because
solar power is essentially a mid-peak resource. This makes comparing
it against average wholesale prices somewhat misleading. Comparing
solar with average peak prices is better but still not entirely accurate,
as solar isnt entirely a peak resource. It can be compared with an
alternative fuel natural gas makes the most sense but the fact that
fossil fuels are dispatchable should really be accounted for.
Then there is the question of whether grid parity includes the cost
of incentives and subsides, FiTs and so on. Not to mention the thorny
question surrounding the cost of solar power itself that is to say, the
cost of the PV system and its anticipated lifetime.

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Although its definition varies, grid parity is the point at which the cost of
solar power matches that of grid electricity
Photowatt

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as 2017. Teske says that on current trends he expects Spain, Italy,


France and Germany to reach grid parity by 2015, but that progress
could be endangered by market uncertainty over the future of these
nations FiTs.
The rapid deployment of renewable energy under FiTs seen
in countries like Germany, Denmark, Spain and elsewhere has
undoubtedly contributed to a significant reduction in technology
costs. For instance, wind and solar technology costs have decreased
dramatically over the past decade, as the devices have become more
widespread, manufacturing processes have improved, innovations
have been incorporated, and gains have been harnessed from
economies of scale.
The EUs PV Technology Platform has previously estimated that
grid parity would only apply to most of Europe by 2020. And, the
European Photovoltaic Industry Association (EPIA) has drawn the
same conclusion from its analysis. Reaching grid parity will depend
on the geographical situation, irradiation and the price of electricity,
said Eleni Despotou, deputy secretary-general of the trade group.
She added: We have recently done a study that shows that in Italy
we can reach grid parity in two years time, in Germany in all market
segments by 2017, Spain 2016.
Reaching parity across the EU as a whole would take five, maybe
six years, says Teske, and therefore we urge governments not to
change their policy. We are almost there and what we need is a stable
feed-in tariff policy.

ENCOURAGING INVESTMENT
But while FiTs are important, they are still very susceptible to changes
in economic conditions. This circumstance forces PV manufacturers to
plan for demand surges by building capacity with the understanding
that local policy and downstream players are ready for long-term
market build-out.
The EUs climate action commissioner, Connie Hedegaard, says
that EU nations should remember the Commissions 2020 targets for
renewables when taking such decisions.
Take care that you, the Member States, are not doing anything
retroactively that will just make people fear to invest in this area, she
said. Its in nobodys interests. That does not mean that if youve had
the feed-in tariff once it can never, ever be changed. But you have to
be very cautious and you have to give very, very long warnings. Stopand-go policies discourage investors, says Despotou, citing FiT cuts
in France and Spain as examples.
Governments may introduce a law [with] something wrong in [it]
from the beginning. You may have very generous incentives in order
to kick off the market and once the incentive is too generous, that of
course creates some speculative bubbles, she says.
Even with long warnings, market uncertainties caused by tariff
cuts have apparently led companies such as First Solar to announce
major new deals in China, and Total to invest instead in the US.
Teske expects Europes global market share of the PV sector to
drop as a result and suggests that solar PV companies should be
allowed to provide as well as produce electricity because at present,
utilities could double their overnight backup prices when the sun is
not shining and so nullify the benefits of any feed-in tariff.

Reaching grid parity with solar power is anticipated in various markets over
the coming years, starting in high cost markets like California
SolarCentury

The main focus should be on allowing all electricity to be fed into


the grid at a certain minimum price, Teske said, even if its lower than
the market price. You just need something reliable.

LOW COST PLUS HIGH EFFICIENCY


Other analysts expect grid parity to come even sooner, with market
intelligence firm Pike Research predicting that it will happen in the EU
as a whole by 2013. The rationale is that the solar energy market has
undergone a dramatic transformation over the past two years, driven
by a new abundance of polysilicon, the effects of the worldwide
financial crisis, and the plunging price of solar modules. As a result of
these factors, the solar industry has shifted from supply-constrained
to demand-driven, and a few strong companies have been able to
improve their revenues and market share based on a low cost per watt
combined with high module efficiency.
Solar prices are plunging quickly, and lower pricing will fuel a
surge in demand in 2010 and beyond, says senior analyst Dave
Cavanaugh. However, pricing trends and oversupply of solar modules
will also place huge pressure on solar suppliers, especially Tier 2 and
Tier 3 companies that are not well-equipped to weather the storm.
We expect a significant shakeout among solar suppliers in the next
two years.
Cavanaugh points to a number of factors determining this
trend, including low-cost materials, processing, module efficiency,
economies of scale, market presence in key growth countries, supply
chain integration, strong balance sheets and internal financing of
module manufacturing in North America and low-cost EU countries.

MARKET PROJECTIONS
Others say grid parity has already been achieved in some markets.
John Denniston, a partner at Kleiner Perkins Caulfield and Byers,
agrees that innovation in clean technology has helped drive strong
growth in both solar and wind over the last five years.
Some geographies are at grid parity: in Italy, in some parts of
California, he says. In the coming 12, 24, 36 months, well be at

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GRID PARITY
grid parity in other geographies due to innovation and economies of
scale. Countries like Spain and Japan and states like New York, New
Jersey, Florida, Arizona, Texas are coming into grid parity in solar PV,
and at that point, this already very large industry will be poised for a
very significant takeoff, says Denniston.
The New York-based Institute of Electrical and Electronics
Engineers (IEEE) echoes this view. Solar power is approaching the
point of grid parity, says James Prendergast, IEEEs executive director.
By about 2015, well be at a significant inflection, and if you talk
about southern California, youre probably already there, he says.
Worldwide capacity for solar PV systems has been increasing
by about 40% a year since 2000 at those rates, solar is expected
to provide 11% of total global power by 2050, according to the
International Energy Association (IEA). However, Prendergast noted:
These projections are highly speculative, adding that solar may
provide even more of the worlds power as solar panel prices fall. We
are about as close to consensus as you can get that solar will be a
game changer for the generation of energy in the future.
A recent report by Ernst & Young shows yet again how dramatically
solar PV module prices are dropping. The report, which focuses on the
UK solar market, illustrates the continued downward price pressure
on panels due to a steady ramp-up in global manufacturing capacity.
By 2013, the average selling price of a solar module will be down
around $1 per watt, from $1.50 today, the document concludes.
This suggests that falling PV panel prices and rising fossil fuel
prices could together make large-scale solar installations costcompetitive without government support within a decade.
That said, it is important to remember that these are simply module
prices. The actual cost of solar electricity is determined by the cost of
other equipment, construction and installation, and permitting. Low
module prices do not in themselves bring grid parity. And, as large
markets such as Italy or California reach grid parity, surges in demand
for solar PV may push up installation costs. As a result, grid parity may
be achieved only temporarily.
Moreover, in supply bottlenecks for various components or
in services such as system integration, the availability of trained
personnel for installation may slow the surge and raise prices,

LARGE-SCALE SOLAR COULD BE COSTCOMPETITIVE WITHOUT GOVERNMENT


SUPPORT WITHIN A DECADE
increasing overall system costs. It may take time for local industry and
international suppliers to finally break through to a sustainable level
below grid electricity prices.

Rapid deployment under FiTs in countries such as Germany and Spain has
undoubtedly contributed to reducing technology costs
FESA

To date, the most secure way to keep finance costs low for solar
PV has been the FiT. At some stage net metering might replace FiTs,
enabling project owners and householders to collect what may be a
higher rate per kWh but, despite the prospect of higher kWh rates
with net metering, the uncertainty driven by fluctuations in interest
rates could still make this less attractive.
Prices may also be boosted by off-grid installations. As PV system
components become more affordable, and with growth in battery
manufacturing capacity and associated lowered prices, demand for
off-grid systems could rise in the developing world. This increasing
supply and affordability of solar modules would boost demand for
PV and batteries worldwide, potentially increasing prices in other
markets and making solar more expensive with regard to other
sources of power.
With this in mind, it might be safer not to predict any specific time
target for grid parity. Rather than a single event, the concensus is that
it is likely to be something that slowly evolves over a number of years
across a variety of markets.
So while grid parity is an important milestone, it is far from
being the be-all and end-all for the solar industry. For solar power
to experience sustainable growth, strategies for making grid parity
part of an ongoing process will be necessary. In order to encourage
ongoing investment in the industry it may well prove necessary to
maintain the current FiT system, even at market rates, as a price
stability mechanism and as a means to reduce capital expenditure
financing costs.
(\[OVYKL[HPSZ

PRICES AND FINANCING ARE KEY


Financing remains a crucial part of the equation. The cost of a PV
electricity project financed through either borrowing or required
return on equity will impact the cost of electricity produced by a PV
array. A relatively small rise in interest rates can therefore substantially
increase the cost of a project, especially if it is financed over a typical
1020 year period.

14
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Richard Baillie is a freelance journalist focusing on the energy sector.


e-mail:rew@pennwell.com
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

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PV: PRICING TRENDS


By David Appleyard

EUROPEAN PV
MODULE PRICES CONVERGING

Exploring current trends in photovoltaic system costs and market trends in Europe, we consider the key regulatory and
manufacturing influences that are expected to play out in the coming years.
Analysis of cost data from more than 400 photovoltaic (PV) systems
across Europe suggests that while system costs vary by geography
due to local permitting mechanisms and siting regulations, cost trends
are converging on a more predictable pattern. However, drawing this
conclusion, a new IHS Emerging Energy Research report also argues
that European PV market volatility is underpinned by regulatory
volatility and speculation that it is beginning to stabilise with wider
adoption and experience.
The report suggests that geographic cost variances are largely
driven by incentive rates, downstream competition and regulatory
experience. Nonetheless, since the end of 2006, some 33 GW of PV
have been added in Europe, allowing for significant cost reductions.
Germany stands out as its system costs are consistently lower due
to competition and deeper experience along the value chain. This
contrasts with Italy, which shows the broadest price range, a sign of a
still immature and volatile market.
Even so, the analysis points to a trend toward price convergence
between countries, particularly in the utility-scale sector. While in
Europe the average turnkey price is 2.31/W for large ground-based
systems, commercial and residential rooftops are seeing installed
prices at average premiums of 0.43/W and 1.05/W respectively,
the study finds. It adds that commercial rooftop systems did average
around 20% more than ground-based installations of less than
100 kW; this does, however, represent a 41% decline from the
0.74/W figure found in 2009.

Germany sees prices plunge


At the forefront of this development in the global PV sector, Germanys
PV system installers and developers have successfully leveraged an
increasingly efficient permitting process and played a significant role
in driving average system costs down to 2.58/W for rooftop and
1.95/W for ground-based systems in 2010.
It appears that capacity additions totaling 12.9 GW have allowed
for more streamlined permitting and engineering, procurement and
construction (EPC) processes in Germany than have been achieved
thus far in the rest of the world.
Nonetheless, in an increasingly competitive environment for all
system sizes, EPC provider margins are in decline and are expected
to erode further in the coming months. The Europe PV industry has
reached a watershed moment as better financed, more experienced
players are gaining a foothold in an oversupplied market while
new development opportunities are dwindling, says Josefin Berg,

Average PV system costs by country

IHS Emerging Energy Research

Associate for IHS EERs Europe Solar Power Advisory service and lead
author of the report. Berg added: The economic turmoil in Europe
is having a mixed impact on PV investments. While some developers
are divesting earlier than usual to raise cash, we also see players with
financial capacity, such as private equity funds, stepping in to pick up
mature assets with stable returns.
In addition, the influence of an increasingly global supply chain
allowing the more efficient delivery of lower-cost modules and other
components, coupled with an oversupply situation, has played a
primary role in driving overall PV system costs downward.
Currently accounting for approximately 55% of overall system
price, module prices are expected to continue their decline through
improved manufacturing processes and low-cost manufacturing and
are expected to drop 20%30% through 2011 as manufacturers
expand capacity and global demand cools after an unprecedented
15 GW installed in 2010. Berg concludes: In the coming months
we expect a shakeout in the PV module market as not everyone can
afford to see their margins squeezed
Due to be published as REW goes to press, for more information
on the report see: www.IHS.com.


(\[OVY+L[HPSZ
David Appleyard is chief editor of Renewable Energy World
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

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REGIONAL MARKETS
By Tildy Bayar

GERMANYS
PV MARKET

IMPROVED PROSPECTS SEEN AFTER


NO FURTHER CUT TO SOLAR FIT
Prospects for the German PV sector have significantly improved with recent news that the government will not now be
enforcing tariff cuts. Here we explore the market and a number of recent developments that influence its future growth.
The German governments June announcement that its scheduled
reductions to the solar photovoltaic (PV) feed-in tariff (FiT) would not
be implemented in early July has provoked much speculation that a
strong market recovery will now take place.
Under the current policy Germany has provided a target amount
of solar power to be installed each year, set at 3500 MW. If that target
is exceeded, the FiT is reduced more than a base rate of about 9%,
and if, conversely, installations fall short of this figure the FiT is cut less
than planned. According to indications from the government earlier
this year, the incentives would have been lowered significantly in
cuts some called draconian if at least 875 MWp of PV capacity had
been installed during the months of March, April and May. However,
this quota was not met, and the FiT rate will thus stand.
Depending on size and type of the system, remuneration for solar
power ranges from 21 to just under 29 cents per kWh, but over
the past two and a half years it has been reduced by 40%50%. In
the coming years, reductions of another 24% at most are planned,
depending on the scale of market growth.
Under the subsidy plan adopted last year, the government was
expected to cut solar subsidies twice a year, once at a variable rate
established annually, and then by an amount to be determined by the
size of new installations. The base rate cut for 2012 is set at 9%. For
the second subsidy cut, which would have been effective in March
2012, incentives were expected to be slashed by another 6%.
Germany has now cancelled the scheduled 6% cut and so for
2012 a cut of 9% rather than 15% is planned. Subsidies were cut
by 16% for 2011.
For solar power companies, the existing cuts already constitute
an enormous strain. An even faster drop in support rates would not
be possible for the industry, observed Carsten Krnig, managing
director of the German Solar Industry Association (BSW-Solar).
Above 3500 MW but below 7500 MW, new installations suffer a
further cut of 3% and above 7500 MW, a maximum cut of 24% has
been proposed.

The end of uncertainty will help solar companies and developers


plan both production and installations. With the release of the
published data, market participants have clarity now, said Matthias
Kurth, president of the Federal Grid Agency. The feed-in tariff levels
will not fall for systems that will go online from July 1. This is based on
the projection of added capacity of 2800 MW, he added.
According to the Agencys preliminary figures, only 349 MWp
were added in March and April (147 MWp in March, and 202 MWp

THE END OF UNCERTAINTY


ABOUT GERMANYS FEED-IN TARIFF
WILL PROVIDE MARKET CLARITY
in April). With 362 MWp added in May, this brings Germany to
1079 MWp for 2011 thus far, and a total of 18.4 GWp. As in the first
four months of 2011, new PV installation in May has been lower than
in the comparable months of 2010, reflecting this uncertainty.

Conflicting forecasts
Despite some justified anxiety over the future of Germanys largescale solar development, the countrys recent declaration that it will
work toward shutting down its nuclear capacity within the next decade
has contributed to the much more positive forecast for renewable
energy in general and PV in particular. The PV industry in Germany
has ambitious targets in its roadmap and wants to keep allocation
costs under 2 cents/kWh by installing 5270 GW by 2020, along with
lowering system prices by at least 50%.
In addition, a glut of modules and PV inverters are set to revitalise
the German solar market this year as prices fall to a degree that makes
investing in solar power financially attractive again, says a report from
IMS Research. Despite a very weak first quarter, the report predicts
strong growth through the rest of the year, peaking in the fourth
quarter and even exceeding the 7 GW installed in 2010.

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REGIONAL MARKETS
However, the Grid Agency predicts that only 2.8 GW will be
installed throughout 2011, a figure which falls rather short of industry
expectations and even less than the government had originally
envisioned in its targets.
Analysts at Jefferies & Company, meanwhile, believe that
Germany could see 56 GW installed over the year. In a recent
industry note, they comment: Our estimates are still for 5.5 GW this
year in Germany.

Nuclear dump hikes solar prospects


Germanys decision to shut down its more than 20 GW of nuclear
plants is expected to increase the countrys solar generation capacity
significantly, above the anticipated growth of 32 GW by 2020.
The government plans to replace the 23% of its energy mix
accounted for by nuclear plants with renewable technologies and
greater energy efficiency.
According to preliminary estimates from the Federal Association of
the Energy and Water Industry (BDEW), Germanys renewable energy
output in the first quarter of 2011 reached 28.1 TWh (compared with
24.9 TWh in the first quarter of 2010) and accounted for 19.2% of
total German electricity consumption (compared with 17.1% in 2010).
PV accounted for 1.9% (compared with 1% in 2010).
However, in 2010 Europe added more PV than wind capacity for
the first time ever, led by installations in Germany and Italy. Germany

added more PV (7.4 GW) in 2010 than the entire world did over the
previous year, ending 2010 with 17.3 GW of existing capacity. But,
following the earlier FiT reductions, this trend abated in early 2011.
And Solarbuzz predicts that, overall, strong 2010 European PV market
growth of 169% is set to give way to a 14% contraction in 2011.

Criticism
BSW expressed regret that, within the context of the current
legislative amendment to the EEG, photovoltaic installations on
agricultural areas, which are particularly cost-effective, will continue
to be excluded from support measures although the solar industry
has repeatedly called for their inclusion.
In any case, whatever the exact figures turn out to be, it seems
that most analysts agree that a market recovery very strong or less
so is now likely.

(\[OVY+L[HPSZ
Tildy Bayar is associate editor of Renewable Energy World magazine.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

____________

SolarServer

Online Portal to Solar Energy

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________

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DR SHAWN QU CEO CANADIAN SOLAR

THE
INTERVIEW

VIRTUAL VERTICAL INTEGRATION


PLAYER SUPPORTING SOLAR EPC
Dr Shawn Qu heads one of the top-tier module supply companies. As chief executive of Canadian Solar Inc, he is
responsible for plotting a course for this vertically-integrated company and its supply chain, across diverse markets from
ingot right up to installation.
Starting things off, Dr Shawn Qu chairman, president and chief
executive officer (CEO) since founding Canadian Solar in October
2001 explains the companys approach to matching manufacturing
capacity with market demand. As a vertically integrated entity, the
company has a significant stake in all aspects of the supply chain,
manufacturing ingots, wafers, solar cells, solar PV modules, solar
power systems and specialised solar products.
We are a virtually integrated company but we have different
capacities along the value chain. We focus more on the modules and
downstream because we also have a few strategic partners, especially
in wafers, so our concept is internal integration, vertical integration,
plus a virtual vertical integration. Virtual vertical integration means
we ask our supplier to set up their factories, for example the wafer
factories, next door to our solar cell factories, so it becomes a virtual
vertical integration.
This arrangement is facilitated either through a long-term
agreement or through a joint venture. However, Qu observes: I
think that agreement is important but it is more important to find
a company that will share your vision but with a different focus. For
example, for a good wafer partner we need to find somebody who
will focus on wafer and also have a lot of strength in polysilicon and
wafer so they match our emphasis on the downstream.
However, emphasising the need for flexibility, Qu says: On the
supplier side we have both long-term supplier agreements and also
joint venture agreements, but the long-term supplier agreements
usually will focus on a strategic partnership with flexibility because
the industry is still young and it sometimes fluctuates so we need a
company that also has a flexible view.
Currently, the companys 10,000 employees produce up to 1100
tonnes of silicon ingots and 200 MW of wafers. The companys internal
cell and module capacities are expected to reach 1300 MW and 2000
MW, respectively, during the third quarter of 2011. Headquartered
in Kitchener, Ontario, the bulk of the companys manufacturing takes

A utility-scale installation in California uses Canadian Solar modules


Canadian Solar

place at eight wholly-owned manufacturing subsidiaries in Canada


and China.
The companys core products are its various solar modules, using
both polycrystalline and monocrystalline solar cells. The current
generation offers a cell efficiency of 18.5% for monocrystalline and
16.5% for poly. However, Qu explains, a new generation of cells
currently being worked on are set to offer cell efficiencies of up to
19.5% for monocrystalline and up to 18% for polycrystalline.
Qu goes on to outline the core markets for the companys
products: We deliver through several channels. The first channel is
the distributors. We have strong distributors in the key markets which
distribute and promote the Canadian Solar brand name product, thats
one, he says, adding: We also sell directly to system integrators and
project developers, and we also provide the system integration and
EPC services in certain particular markets. He expands by noting: The
solar market is very diversified. Typically you will see three types of
market: the residential rooftop, the commercial rooftop and also the

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DR SHAWN QU CEO CANADIAN SOLAR


large utility-scale project. Now, for the commercial rooftop projects how to do EPC projects, so then we have no problems just supplying
we typically work directly with the system integrators and then on the solar module, for example in Germany. But in some markets, for
large utility projects we work a lot with the key project developers and example Canada, the market was new so theres no tier-one module
EPC companies. He adds: We split our distribution roughly a third maker, or tier-one EPC provider, so we pick up the EPC total solution
each, between retail, commercial rooftop and utility-scale.
provider role. And customers like it. Our responsibility is to enable
Reflecting this, the company
solar business. Although so far
IT IS MORE IMPORTANT TO FIND A
develops an individual sales
limited to a number of projects
model for each particular market
in Canada, Qu is optimistic for
COMPANY THAT WILL SHARE YOUR
it serves. Qu says: For example,
the future, saying: The EPC team
VISION, BUT WITH A DIFFERENT FOCUS needs a strong engineering team,
the Italian market is dominated
by the utility-scale project of around 1 MW each, but the Japanese strong project leaders and to understand how to interact with utilities,
market is very much a residential rooftop market. Over 90% of the so its not an easy business and we want to do it right. He added: We
solar market in Japan is residential rooftop systems. Germany is a very already have strong capability in North America so thats what we will
balanced market, you have all three types.
do and then gradually expand in other parts of the world.
Indeed, Canadian Solar Inc recently signed a third EPC agreement
Utility-scale plays
with SkyPower Ltd to build a 10.5 MW solar park in Thunder Bay,
With several hundred megawatts of its modules operational in utility- Ontario. This latest deal is in addition to two previous EPC agreements
scale installations, Qu highlights another key aspect of the companys covering 18.5 MW and consisting of a 10.5 MW solar park in Napanee
strategy for market entry, saying Weve been growing in North and an 8.5 MW solar park located on Thunder Bay International Airport
America so that would be our focus for this and next year. However, Authority land. This latest deal is a 10.5 MW project in Thunder Bay.
alongside its focus on key regions such as North America, China, All three are expected to complete in 2011.
Germany, Italy and Japan, the group is expending considerable
A manufacturer with virtual capacity growth
energy establishing itself in emerging markets.
Indeed, the recent signing of a 33 MW supply agreement in India The company is on track to expand its manufacturing capacity for
signals the companys long-sought-after entry into another key global solar cells to 1.3 GW1.4 GW in 2011 and remains on track to expand
market. Qu noted: The Indian market is very interesting, but it is also its annualised capacity for modules to 2 GW by September 2011.
a difficult market. We started to work with our Indian partners five, six For the full year 2011, the company has a guidance of shipments of
years ago and Im glad we finally see these efforts come to fruition. approximately 1.2 GW to 1.3 GW.
In June 2011, Canadian Solar signed an agreement with Suzhou
He added that the India market, so far, is a utility-scale solar market
and the government provided the feed-in tariff for they have a target New District Economic Development Group Corporation (SND) and
of solar installation. We also happen to have a strong track record in Suzhou Science and Technology City Development Co., Ltd (SST)
utility-scale projects for example, handling a couple of utility-scale to build a new 600 MW cell production factory in Suzhou, Jiangsu
projects in Canada. So with that track record we become a perfect Province, approximately 8 km from Canadian Solars current solar cell
production facility. Full ramp-up is targeted for 2012. This followed a
solution for the Indian customer.
Establishing the arrangement with the Indu Group-backed May joint-venture deal with the Suzhou GCL Photovoltaic Technology
Cirus Solar Systems Private Limited, a solar EPC company based in Co., Ltd, for a 600 MW dedicated wafer plant in Suzhou.
A look at the companys roster of sales contracts over the course
Hyderabad, the modules are to be utilised for projects on behalf of
two prominent Indian conglomerates. Including a single large 20 MW of 2011 suggests this additional capacity will indeed find a market.

plant as well as two smaller 8 MW and 5 MW plants coming up in the
(\[OVYKL[HPSZ
government sponsored solar park in Gujarat, India, the projects are
expected to be completed by December 2011.
While acknowledging that the vast majority of its sales are simply
David Appleyard is chief editor of Renewable Energy World.
a case of the products disappearing at the company gate never to be
seen again You only see people if your products have problems, and e-mail: rew@pennwell.com
ours dont have problems, observes Qu in some cases the company
works far more closely with the end user, to the point of offering an This article is available on-line. To comment on it or forward it to a
EPC contractor service. We provide total EPC solution if required, colleague, visit: www.RenewableEnergyWorld.com
says Qu. Some markets are well developed and our partners know

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LARGE SCALE SOLAR SUPPLEMENT - SEPTEMBEROCTOBER 2011

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Maximise

your yield!

Visit our booth: B7/B36


__________________

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________

A properly matured Swiss product.


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cooling system helps them keep their cool at all times. And that
is good for you. Because maximum efficiency and the very best
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Tel: +41 32 346 58 00 I info-international@solarmax.com
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Wind Technology is a Supplement to Renewable Energy World SEPTEMBEROCTOBER 2011

WIND
TECHNOLOGY

MOVING PRODUCTION
COMES OF AGE
OVERCOME OFFSHORE
SUPPLY CHAIN CHALLENGES
SENSORS CRUCIAL FOR SUCCESS

FEATURES
RENEWABLE
ENERGY

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KEEPING HYDRAULIC SYSTEMS HEALTHY


TRENDS IN MEDIUM VOLTAGE SWITCHGEAR

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Reduce top head mass


without compromising reliability
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___________

Offshore turbines need proven, cost-effective solutions that enable serial production
like the medium speed permanent magnet generator (MS PMG). ABB is launching
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CONTENTS
September-October 2011

GROUP PUBLISHER Ralph Boon


SENIOR VICE PRESIDENT Tom Fowler
CHIEF EDITOR David Appleyard
CONSULTING EDITOR Jackie Jones
ASSOCIATE EDITOR Tildy Bayar
PRODUCTION EDITOR Piers Evans

REGULARS
3

From the editor

24

Tech notes

DESIGN/PRODUCTION Shyam Gosai


PRODUCTION MANAGER Kimberlee Smith
SALES MANAGERS Peter Andersen, Natasha
Cole, Dan Harper, Kate Hart, Ekow Monney,
Sandra Spencer

Whats new in the world of wind technology

DIGITAL SALES MANAGER Leo Wolfert


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Overcoming supply chain challenges

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Keeping hydraulics healthy


Hydraulics perform a number of vital functions in many wind turbines, typically
being found in the pitch, yaw and breaking control systems. Given their
importance to both safety and maximising system output, maintaining their
optimum performance is a must.
By Matt Fielder

22

Testing time for offshore switchgear


Stringent environmental conditions experienced by offshore wind
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By Jose Mara Torres, Iaki Blanco & David Goiricelaya

Cover image credit: David Appleyard

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Harness
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of the wind
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At Ingeteam, we apply the concept i+c, in


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FROM THE EDITOR


David Appleyard, Chief Editor, Renewable Energy World

Wind power was the largest contributor of new power


capacity contracted at two recent power auctions in
Brazil, according to GWEC.
Of 3.9 GW of contracted projects, 1922 MW went to
wind power developers. Not only were the overall prices
considerably lower than in previous auctions, wind projects
apparently succeeded in undercutting generation costs for
projects based on natural gas. These new contracts bring
Brazils pipeline for wind farms under construction up to more
than 5 GW, the trade group says, in addition to the more than
1 GW already in operation.
Such developments inevitably attract headlines, particularly
given increasing interest in the Brazilian and wider Latin
American renewable energy markets. And, in Brazil as with
many other nations, this push towards a low-carbon energy
complex is supported by aggressive policy measures see
our feature on page 32 of Renewable Energy World magazine
for an update on this exciting area.
But, behind the headlines, the success or otherwise of
the wind energy market largely stands on the cost of energy
produced. As the market becomes more mature this is a trend
which is expected to become more prevalent as subsidies
and support schemes ultimately diminish.
Keeping competitive rests on the ability to produce energy
at the lowest costs, and this is more and more a function
of keeping wind turbines operating for as much of the time
as possible. As the headline reliability issues of previous
generations of turbine are resolved - through experience,
more advanced designs and materials and so on major
components such as drivetrains, generators and blades are
less likely to fail. But that does not necessarily equate to a
more reliable and robust wind turbine. There are countless
critical components within these machines, the failure of

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which can halt operations. Consequently, more attention is


being focused on improving the reliability of these subsystem
components and in this edition we take a look at a number
of examples. In our feature starting on page 15 we consider
the role of sensors in condition monitoring and in an article
on page 18 we explore the world of hydraulics in wind and
see a number of techniques that can be employed to improve
reliability. We also report on emerging trends in the mediumvoltage switchgear sector, having to respond to the rigours
of life at sea. Failure to address the operating environment
can affect the cost profile of generation, but it is also a critical
safety issue.

FAILURE TO ADDRESS THE


OPERATING ENVIRONMENT CAN
AFFECT THE COST PROFILE
As important as it is, though, its not just component
reliability that contributes to the long-term cost of energy.
Two crucial influences are the cost of manufacture and the
role of supply chain management. Our article on page 5
gives an overview of the on-going moves by manufacturers
towards more advanced production techniques, including
moving production line facilities which take something from
the automotive industry.
We also evaluate the challenges of supply chain
management on page 9, considering the pitfalls that can
financially cripple a development before the first kWh has
been produced, and present some potential solutions.
Commenting on this latest power auction Steve Sawyer,
GWECs secretary general, said: Brazil is a sleeping giant in
terms of wind power, but it is waking up. The same
could be said for wind technology too.

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MODERNISING PRODUCTION
By Richard Baillie

ACCELERATED
WORKFLOW
MANUFACTURING WAKES UP
TO AUTOMATION
The continuing trend toward automation in the wind industry is equivalent to the changes that resulted in the mechanisation
of the automotive sector nearly a century ago. Here we investigate what companies are doing to improve efficiency and
production quality.

Nordex has modernised its European production centre in Rostock


in order to significantly improve the efficiency and production quality
of the plant. In doing so it is continuing a trend toward automation
in the wind industry, which is broadly equivalent to the changes that
resulted in the mechanisation of the automotive industry nearly a
century ago.
Nordex has converted its nacelle and switch cabinet factory to
continuous flow production. The results of this modernisation are
standardised work processes and shorter throughput times, making
it possible to triple capacity in the two-shift operation from 330 to
around 1000 turbines a year. This equates to output of 2500 MW.
Nordex has also reduced the production time and rotating stock by
some 30%. Throughput time has fallen from 13 days to just five days.
Overall, Nordex has set up three lines for the main components
the nacelle, hub and drive train and three further lines for preassembly. The company decided in favour of a rail system with friction
wheel drive. For this the technology had to be adapted to the existing
hall layout. The most suitable solution proved to be a skid system
with an angular transfer unit designed to take heavy weights. For
construction of the switch cabinets the skids are moved by a drag
chain conveyor. In this way Nordex has converted the entire nacelle
assembly to continuous flow.

A low-vertical integration approach


Nordex is taking a low-vertical integration approach to supply chain
management, says CEO Dr Marc Sielemann, whose own background is
in the automotive industry. In the early stages (of windmill production)
the supply chain might not be developed so you may do things you
otherwise wouldnt, but in the long run nobody can be the best at
everything. Someone who is best in the decathlon wont win the
100 metres and so we are building a team of highly professional

partners, each belonging to the best in their sphere.


But this new technology is only one part of the changeover. The
organisational changes made are of key importance. For example,
dock assembly made it difficult to determine the actual production
status and the picture presented by the production hall was that of
rows of shelves full of material. Now the assembly lines are designed
in accordance with the principle of synchronisation and the required
material is available directly at the assembly station Nordex has
minimised its stock-keeping and moved it out of the hall. Weve
invested around 4 million but only around 1.7 million of that is in
new machinery, says Sielemann.
Fixed contract amounts have been replaced by rolling forecast
and the staged call off principle whereby the delivery schedule is
organised according to a series of flexible release steps. We found
(when building a gearbox) that the hard part the supplier had was
ordering bearings, but the with the changes weve made the supplier
can build up an inventory of bearings, says Sielemann, adding that
Nordex is now 95% accurate in terms of its demand schedule.
On top of this, large screens now inform all staff about progress
in the respective cycle and along the entire production line. Any
disruptions in the assembly process are immediately evident and can
be remedied in good time. This minimises downtimes and error rate.
For the efficiency programme in our production division we were
able to adopt many principles from other industries, said Sielemann.
We attached particular importance to transparency and organised
trouble-shooting as they make it possible for us to continuously
optimise production.
We built the most modern truck plant in Europe, says Sielemann,
and now we have built the most modern turbine plant in Europe.
Sielemann says that having a modern facility brings additional
benefits throughout the company.

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In the old days, people would finish one turbine then celebrate
by drinking beer and having a barbecue but things have moved on
from there. Line production now forces discipline on other parts of
the organisation. For example, in the past suppliers would say two
days more or less but now it has to really work and we can also do
better TCO evaluations. Buying the cheapest might not turn out to be
the best given the recurrent problems it could cause in production.
Sielemann also stresses the need for what he calls visual
transparency. He says, The state of the factory is now apparent to
everybody at every point in time. Additional markings on the floor
show the place for material. Boards, cards and lights show the state
of processes. Performance is measured and tracked on team boards.
Sielemann believes that further mechanisation will be an ongoing
trend in wind energy. The idea of changing our production came up
two years ago and that was one of the reasons why I joined Nordex
because we needed to industrialise our processes. We are not the
first but we are the most thorough, says Sielemann.
Its not about the techniques of production, theres no secret
about the technical side, its the organisational side thats tougher,
says Sielemann. Were more focused on team meetings, key learning
and that kind of thing. When I worked for MAN I saw that Toyota had
invented a way of organising production into three key areas: line
assembly, relationship with suppliers and continuous improvement
in shop floor management. Thats what we are trying to achieve at
Nordex. Weve already integrated this system at our factories in
Arkansas and in Rostock but not yet in China.

Modernisation across the sector


Nordex is not the only company in the sector that sees the necessity
to modernise its production processes in order to lower costs and
remain competitive.
Back in 2006 when the wind power industry was being squeezed
by a turbine shortage, the largest manufacturer of turbines in the
world, GE Energy, announced advances in its production chain that
could help squeeze out a few more turbines to help meet robust
worldwide demand. In Germany, GE Energys wind business has
opened a new 80-tonne wind turbine moving line in its Salzbergen
manufacturing facility to help to meet increased global demand
for turbines.
GEs moving line is a 42-metre rail system on which the turbines
are continuously moved during production. It was designed for
the manufacture of both GE 1.5 and multi-megawatt wind turbines
and offered a 30% increase in capacity along with quality and
safety improvements.
GE says the efficiency of the line enabled it to increase its capacity
by 30% while reducing its inventory by 40% at the Salzbergen plant. A
key feature of the line is its capability to detect abnormalities should
they occur in wind turbine assembly, and to halt the manufacturing
process until the issues are resolved. It can move at various speeds to
accommodate different output levels.
But while GE set the pace, the rest of the field is eager to catch up.
Doosan Power Systems, part of the Korean industrial conglomerate
Doosan Heavy, is the new kid on the block. The Korean company has
unveiled plans to develop a 6 MW offshore-specific turbine. It plans

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to develop the turbine in order to enter the European market, where


the company says it has identified a significant opportunity by 2020.
Doosan says it has decided to aggressively step up its campaign
to industrialise its wind power business. The company also says it
plans to co-develop core parts, including blades, with local small and
medium-sized enterprises.
It currently offers a geared 3 MW wind turbine product, first
developed in 2004 and commercially launched towards the end
of 2010, although currently this is mainly for its domestic market.
In September 2009, Doosan installed a prototype machine in
Gimnyeong, Jeju Island where the islands autonomous government is
aggressively supporting the development of wind energy technology.
While the conceptual specification of the new 6 MW machine
is complete, Doosan says it is currently finalising both the technical
details of the system as well as options for manufacturing and
assembly. Scotland is one option being favourably considered with
groundbreaking anticipated in 2012.
An on-site pilot prototype is due to be installed by the end of 2013
and this will be followed in 2014 by prototype and demonstration
units offshore, likely comprising three to four machines. Currently, the
company foresees commercial series production in 2015. However,
it is also in discussion with its partners with a view to exploring an
option to accelerate the development programme by a full year. In
addition, it is open to the concept of jointly developing pilot schemes
with utility partners.
Already, Doosan and Scottish Enterprise have agreed to enter into
a Memorandum of Understanding that will likely see the company
locate its R&D Centre of Excellence for Renewables at its current site
at Westway in Renfrew, near Glasgow. A second phase will advance a
further proposal for the establishment of assembly and manufacturing
facilities in Scotland now the companys favoured location for wind
turbine prototype-build and manufacturing.
Meanwhile, the Danish wind turbine manufacturer Vestas says it
will invest approximately 10 million in the next two years in Viveiro in
Lugo in order to establish local production of generators.

While new technology has improved production, organisational changes are


key to effective modernisation
Nordex

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The factory in Viveiro was chosen due to its existing skilled


workforce that will enable Vestas to manufacture generators, one
of the main components in a Vestas turbine. It is planned that the
new factory will directly support the production capacity of the
nacelle factory in Leon, which is currently under extension. When the
investment is completed, the factory in Viveiro will produce 2 MW
generators required for the V90 2 MW turbine.
But Vestas is also looking to move the centre of its operations
eastwards to where many believe the new heart of Europes wind
industry now lies, given a combination of generous operator subsidies,
enthusiastic government support and an abundance of wind.
Vestas has installed over 20 wind turbines in Romania and recently
opened its Eastern European hub in the capital Bucharest. The
opening of a local production factory may follow. Like any market
production is determined by demand, says Andrew Hilton, vice
president of communications. Vestas has the correct capacity for the
current market demand. As markets grow we always consider if there
is a business case for setting up local production, hence our recently
announced plans for a factory in the UK. As developing markets like
Romania mature we will be looking to find local suppliers in areas
where we see development potential.
GE Energy is also making its presence felt out East. The energy
behemoth supplied 240 wind turbines to the CEZ Group for the 600
MW Fantanele project in Romania, Europes largest onshore wind
project. In Poland, 110.5 MW of wind energy capacity has been
installed, comprising 21 2.5 MW turbines and 39 1.5 MW turbines. In
April GE announced its first wind farm project in Bulgaria, developed
with local partner the Winslow Group and expected to generate up
to 69 MW of power.

An emerging market
Magdalena Dziegielewska, research analyst for energy and power
systems at Frost & Sullivan, states that the overall market for wind
farm components in Eastern Europe is just beginning to take shape.
The first visible signs of growth are seen in foundry and welding
sectors. However, these components are mostly produced for wind
farms located in Eastern Europe.
The benefits work both ways, says Dziegielewska. [Eastern
European] companies also participate in Western European projects,
however they are usually sub-contractors for local firms and provide
work related to painting and welding of steel parts.
With regards to projects in Eastern Europe she believes Western
European suppliers are using local firms to make substantial
cost savings. Due to the significant size of components and
high transportation costs that vary from 60-80 per kilometre
manufacturers are looking for sub-contractors and sub-suppliers
among local producers, she explains.
Looking to the future, there is clearly the potential for major wind
turbine manufacturers to operate manufacturing bases in Eastern
Europe, especially if markets like Romania and Poland continue their
impressive growth.

The introduction of stable and standardised processes forms the basis of


reliable deliveries to customers and guarantees high-quality products
Nordex

their production facilities. Spanish firm Gamesa Wind, the number


two producer of wind turbines worldwide, has aggressively ramped
up production of its wind turbines at an abandoned US Steel plant in
Bucks County, Pennsylvania in order to enter the US alternative energy
market. The plant is now capable of producing two 300-foot tall steel
and carbon fibre wind towers every day. One years production output
has the potential energy generating capacity of 700 MW.
Working closely with state and local economic development and
regulatory agencies, the site was ready for initial production within
six months. Renovating an existing building in a timely manner was
critical to meeting the market window for Gamesa products. As
with Nordex in Rostock, Gamesa chose to recycle a brownfield site,
thereby saving on the costs of constructing a new building entirely
from scratch.
Another noteworthy project in terms of automation is WinWinD
Power Energys manufacturing facility at Vengal, not far from Chennai,
in India. The Vengal facility will assemble and test nacelle hubs and
produce rotor blades, and will initially manufacture utility grade
1MW (WWD-1) wind turbines. The plant has an initial production
capacity of four wind turbine generators per day (12 blades) and
going forward, the company plans to scale up capacity to eight (24
blades) per day.
Author Details
Richard Baillie is a freelance journalist focusing on the energy sector.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

Modernisation around the world


Outside Europe, factories in the US are also looking to modernise

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A Revolution In Wind
Blade Manufacturing
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OFFSHORE WIND
By Marios Papalexandrou

OVERCOMING
OFFSHORE
CHALLENGES
Close to shore or out to sea, offshore wind in Europe and around the world is not just happening, it is growing rapidly.
Offshore wind farms are highly sophisticated projects that need careful planning and risk evaluation before they are
implemented. What are the key challenges that the market is facing at the moment?
Offshore wind is a new market; it has been just two decades since
the first commercial installation. The sector was born mainly due to
lack of space for the development of large onshore wind projects
in the densely populated areas of Western Europe. The market first
evolved in Denmark in 1991 with the construction of the Vindeby
offshore wind farm, but real market growth came some 10 years
later with construction of Middelgrunden, followed by Horns Rev
which became the largest true offshore project, located as it is some
1420 km offshore, with a total installed capacity of 160 MW.
In addition to Denmark, the UK, Ireland, Sweden, the Netherlands,
Belgium, Germany, Japan and China have constructed offshore
wind farms over the last decade. Other countries including France,
Taiwan, Canada, the US, Greece and other European nations are
also looking to tap into this resource. The UK market began project
construction in 2003 and soon took the lions share, which it still holds,
from Denmark. For the UK everything started with Crown Estates
Round 1 demonstration projects in 13 locations, with a total capacity
of around 1 GW. Round 1 projects are quite close to shore (less than
10 km) in shallow waters (less than 15 metres), with an average
capacity of between 60 and 90 MW. Developers at that time were
ambitious mid-sized companies and the largest offshore wind turbine
available was 3.6 MW.
Two years later the UK Round 2 projects were awarded, including
15 sites with a total capacity of 7 GW that are currently under
construction. They have an average capacity of between 150 MW
and 500 MW in water depths up to 30 metres. The largest turbine
commercially available is 6 MW, while the furthest offshore project
under construction in the UK is 30 km. Today, developers are mainly
large utilities. Simultaneously with these large UK developments,
we see the first offshore wind farms being constructed in Germany
which, together with the UK, is expected comprise the dominant
market for the coming decade.

Offshore wind farms are highly sophisticated projects that need careful
planning and risk evaluation before they are implemented.
Mott MacDonald

UK Round 3 projects include nine zones with a total capacity of


25 GW, expected to start construction in 2015. They will have an
average capacity between 0.5 GW and 1 GW in water depths between
30 and 60 metres, and with distances to shore that may exceed
50 km. Projects of a similar size are also under development in
Scottish territorial waters. New turbine manufacturers are expected
to enter the market with turbine sizes up to 10 MW, considered as
state-of-the-art. Today, the UK has approximately 50% of the EUs
total installed offshore wind capacity, accounting for 1.5 GW and is
expected to expand to more than 5 GW in 2015 possibly reaching
more than 25 GW by 2020.
So, the market is trending quite clearly toward building in deeper
waters, further offshore, using larger machines and building many

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large wind farms. Considering just the UK market alone, about 1 GW
in installations per year is expected until 2015, and possibly 4 GW
each year after 2015.
This rapid expansion in such a short time has led to a number
of projects considered prototypes, either because they use new
technologies (new turbines, new foundations, new transmission
technologies, new installation concepts) or because they move further
offshore into deeper waters than ever before. Dealing with these
types of projects poses major challenges for the industry. Can the
supply chain follow the tremendous expansion rate of offshore wind
development? What construction and technology risks are foreseen?
Is the hardware there? Is the skilled manpower there?
Regarding the hardware, there is currently a shortage of vessels
to be deployed for offshore foundation and turbine installation, but
this shortfall is expected to be addressed by 2012. Most vessels used
today originated with the oil and gas industry, but with significant
expansion in offshore wind, dedicated installation vessels are now
being ordered and built. These vessels can operate in deeper waters
and larger weather envelopes, and are able to carry many more
turbines and foundations. This minimises transportation cycles to the
marshalling harbour and thus decreases installation time.

THESE DEDICATED VESSELS CAN


OPERATE IN DEEPER WATERS AND
LARGER WEATHER ENVELOPES
Supply of export cables, which transfer power to shore, is
regarded as a critical item in the project schedule, as there are few
cable suppliers and many projects to be connected. ABB, Nexans,
Prysmian, NKT and NSW are the key submarine cable suppliers but
more onshore cable suppliers are expected to join the market in the
near future. For the moment, 132 kV and 150 kV HVAC export cables
using XLPE insulation are the dominant types used, but as projects get
larger and go further offshore 220 kV HVAC and High Voltage Direct
Current (HVDC) cables are expected to be deployed. For a recent
project a HVDC export cable was considered because there was no
suitable HVAC cable of sufficient capacity available for delivery at the
scheduled time. The advantage of HVDC transmission lines is their
ability to transfer considerably more power larger distances per cable
but at the cost of deploying expensive converter stations. New VSC
systems will be used for HVDC links as the long-established current
source HVDC systems are not suitable.
Another significant challenge for the market on a per-country
basis is the capability of the transmission operator to plan and
construct the appropriate infrastructure able to absorb and cope with
large offshore wind energy generation. In the case of Germany, for
example, the grid operator is responsible for energy transmission
from the offshore transformer station to shore. This has created a
headache for developers, as project planning is linked to the date
of grid connection and involves a third party over which the project
company has only limited control. On the other hand, in the long term
this will create a transmission system that is well-designed to cope
with large offshore projects.

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In many wind farms a failure of the connection between the monopile and
the transition piece, known as grout, has led to vertical slippage.
Mott MacDonald

In the UK market the developer has been responsible for the


electrical infrastructure up to the onshore grid connection point, but
the transmission link must be sold to a third party after construction.
This system has given developers freedom to plan and implement
the first offshore projects, but there have been planning issues in
constructing the appropriate infrastructure for Round 3 projects, both
for developers (especially regarding the beach landing point and the
onshore cable route) and for transmission operators.
Ports and harbours seem to be another bottleneck that can
hinder large offshore projects. Germany has invested in major port
infrastructures (such as the port of Bremerhaven) in order to cope with
the logistical demands of offshore wind expansion. This investment
is supported at both state and government levels. But, unlike
continental European ports, UK ports are generally privately owned,
and thus owners are more cautious about investing in upgrades.

TURBINE CHALLENGES
Turbine technology is another key challenge for the market. Until
recently, offshore wind was following in the footsteps of onshore wind
technology development, with turbines considered as marinised
onshore types. There are three turbine suppliers in Europe that own
the lions share of the market: Vestas, Siemens and REpower. Bard and
Areva Multibrid have recently begun offshore operation, and many
more are expected to enter the market, including Gamesa, Alstom,
Clipper, Darwind, General Electric, Mitsubishi, 2-B Energy, Nordex,
Doosan and others. This multiplicity of new entrants is likely to result
in better commercial terms for developers. All of these turbines can
be considered state-of-the-art, due either to the technology used or
the turbine size upgrade. A rigorous test procedure, together with
design built redundancies, is key to offering comfort to potential
buyers and their investors. The development of offshore test sites for
these turbines is considered very positive for testing their performance
before serial production. The final selection of turbines will be a
tradeoff between availability, track record and price/guarantees.

BUILDING MANPOWER
Regarding skilled manpower, the rapid expansion rate of offshore
wind has not been followed by a similar growth rate in trained and

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MORE CAPACITY THAN YOU MIGHT THINK


Now 20 turbine models are coming to the market powered by The Switch modern
multi-megawatt drive trains with PM generators and converters. And we have built
capacity for them 5,500 MW. With The Switch, youve chosen the future of wind.
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OFFSHORE WIND
skilled personnel. Newcomers face problems, but even experienced
players may encounter problems due to a rate and scope of expansion
that does not allow for sufficient knowledge transfer.
A platform to share knowledge and experiences in offshore wind,
to educate and train, would be a potential solution. A good example
on a national level is the UKs National Academy for Skills (Nuclear).
Its role is to provide education and training, run events, offer services
and develop expertise for the benefit of its members and the industry
as a whole. A similar approach to offshore wind could be followed at a
European level under the European Wind Energy Association (EWEA).
It is promising that offshore oil and gas contracting and consulting
companies are getting involved in the offshore wind sector; their
experience gained in working in harsh offshore environments can be
transferred. But can offshore wind jobs compete with offshore oil and
gas in order to get experienced people on board? For the moment
this problem seems prohibitive.

Thorough and continuous risk assessment


throughout the projects lifecycle, together with
early engagement of market stakeholders, is key
to avoiding cost and time overruns.

CONSTRUCTION RISKS
Apart from the supply chain challenges that the industry faces, there
are a number of risks with which each project has to cope. As offshore
wind farm projects are capital-intensive and involve many contractors
and interfaces, careful evaluation of construction risks is of paramount
importance for a projects success. There are two key items to be
considered when installing offshore: weather conditions and vessel
capability. Project completion can be affected because people tend
to overestimate equipment capability and underestimate weather in
the offshore environment. There are also cases where problems have
occurred because the equipment available at the time, rather than
the appropriate equipment, was used.
The quality of measured and predicted metocean data (including
wind, waves, tide and swell) is key to a good understanding of the
real site conditions at the wind farm location. When considering these
data, a conservative approach should be taken toward vessel selection
and project planning, with contingency plans for weather that is worse
than expected, and plans that will allow for float between different
contractors schedules so that the final project completion date is not
affected. Vessels operational envelopes should be well understood
in connection with the expected metocean conditions in order to
ensure that the right tool is used within the planned schedule.
Other construction risks are related to understanding seabed
conditions and poor design, especially in relation to cable installation.
Although cable work counts for only 7% of the total capital expenditure
of an offshore project, most insurance claims and project delays are
linked to the cable installation process. Many offshore projects have
failed to achieve the correct burial depth or meet the scheduled
installation deadline.
Two issues arose during construction of the Bligh Bank offshore
wind farm. Bligh Bank utilises monopile foundations that were
transported 46 km offshore, towed by a tug vessel. The monopiles
were transported using hydraulic plugs in both ends to keep them
sealed and floating. In two cases the monopiles sank due to failure of
the hydraulic system in the plugs. A new solution had to be designed,
and additional redundancy measures were taken which accounted for
more stringent weather restrictions.

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Another construction challenge that Bligh Bank faced was the


grouting issue on monopile foundations. In many wind farms a failure
of the connection between the monopile and the transition piece,
known as grout, has led to vertical slippage: the transition piece
slips a few millimetres towards the monopile, and this could affect
the structural integrity of the foundations. At the time this issue was
discovered, the foundations were already fabricated and were being
installed. The Bligh Bank team spent considerable effort on a design
solution that would cover the projects lifetime, which has now been
certified and implemented.
In both cases neither the projects schedule nor its commercial
viability were affected due to the fast response in managing these
unforeseen issues. At the end of 2010 Belwind managed to finish the
construction of the furthest offshore wind farm in the world, consisting
of 55 turbines, in 15 months, on budget and with no accidents.

BUILDING SUCCESS OFFSHORE


So what makes a successful offshore wind project? The most important
element is a track record: the involvement of experienced and skilled
project managers and contractors. An offshore wind farm developed
and constructed under current models is a sophisticated structure
with complex interfaces needing strong management. Extensive
knowledge of supply chain capabilities and planning interfaces
will lead to a good understanding of potential risks. Thorough and
continuous risk assessment throughout the projects lifecycle, together
with early engagement of market stakeholders, is key to avoiding cost
and time overruns in these multi-million euro projects.
Furthermore, dealing with the multi-contract structure typically
used for offshore wind farms requires an experienced and capable
construction management team. The Bligh Bank construction
management team, for example, was almost identical with the team
that worked for the Princess Amalia (formerly Q7) offshore wind
farm. This allowed the team to consider the lessons of the past and
knowledge gained, while keeping a lessons-learned register. For
instance, they implemented an extended quality control and health
and safety inspection programme during project construction, which
in part led to a project with zero accidents.
Thus, a mix of thoughtful project design, well-defined contractual
arrangements and continuous risk management, orchestrated by
competent project participants, is key to a projects success. At the end
of the day, that is what defines a good project: a strong and capable
management team with the ability to plan and cope with unforeseen
situations, collaborate and learn, without making compromises on
quality and health and safety aspects.
Author Details
Marios Papalexandrou is a renewable energy consultant at Mott
MacDonald.
e-mail: Marios.Papalexandrou@mottmac.com
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

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SENSORS AND MONITORS


By Mike Powers

SENSORY
PERCEPTION
FOR WIND

RELIABLE SENSOR TECHNOLOGY IS


VITAL TO CUT MAINTENANCE COSTS
As the harnessing of wind power becomes an increasingly important factor in the supply of renewable energy,
manufacturers are developing ever more robust sensors and monitors to ensure their reliable operation.
According to the World Wind Energy Association, the number of
countries using wind energy for electricity generation had increased
to 86 earlier this year. This expansion takes the total global capacity
beyond 200 GW and means that wind turbines now have the ability
to satisfy 2.5% of world electricity demand impressive figures for a
technology that is relatively new.
The careful projections and plans that were made when wind
turbines were first rolled out in large numbers could not possibly
have foreseen every problem or potential augmentation that might
optimise their performance and minimise their rates of failure.
Engineers are still learning about wind turbines as practical experience
of the machinery begins to build a clearer picture of precisely which
components are likely to fail and how to manage operations and
maintenance proactively. Indeed, some wind turbines currently in
operation are still within their original manufacturers warranties, a
fact that demonstrates how new the technology is as a staple provider
of electricity and suggests that there are many contributions still to
be made by designers and engineers who are still evaluating the
performance of this first wave of turbines.
Gradually, a catalogue of reliable components and practices for
the effective maintenance of wind turbines is becoming established.
The goal for the maintenance of wind turbines, as with any other
engineering industry, is to set in place a series of procedures that
will increase efficiency by undertaking preventative measures. This in
turn enables operators to minimise maintenance costs and maximise
turbine availability, protecting profits for operators. To achieve this
goal, components must be designed that are highly unlikely to
cause failures and stoppages and this extends to even the smallest

The need for advanced sensor technology is greater than ever before as
turbines become more sophisticated

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SENSORS AND MONITORS


components, as research has
be much worse if the pressure
shown that their failure can cause
loss results in damage to
as much downtime as the failure of
expensive turbine components.
major items such as gearboxes or
If we take a look inside a typical
hydraulic systems.
hydraulic system, we can begin
In all engineering industries,
to understand precisely how
consideration is given not only
important the role of pressure
to the cost and effectiveness of
switches and transducers is in
replacement parts but also to
ensuring the continued reliability
the implications of performing
of turbine systems.
maintenance and this consideration
In most wind turbines, the
has a major influence when
hydraulic system is driven by
specifying parts for a wind turbine.
a pump that charges a system
There is a great need to reduce
accumulator
to
a
certain
maintenance by using components
pressure. The pump can then be
that are self-regulating, robust and
turned off to conserve electrical
long-serving, particularly when Pressure switches are a vital component of turbine control systems, being
power and reduce wear and tear
GEMS Sensors because the system accumulator
considering the environment in found for example in the pitch and yaw hydraulics
which wind turbines are often
can store the pressure delivered
situated. Accessing a wind turbine nacelle is often difficult at the best by the pump; it can also absorb pressure pulses from the pump
of times but when that turbine is located on an offshore wind farm and prevent them from being transmitted to the piping. Once the
that cannot even be visited until a repair vessel has been organised, pressure in the system accumulator bleeds off, the pump is turned on
then avoiding unscheduled maintenance and extending service times to recharge it.
can save significant quantities of both time and money. The best
In a typical case, the accumulator will be charged to 225psi and
way to sidestep such problems is to specify turbines with devices then be allowed to bleed down to 185psi before it is recharged
that ensure reliable function for extended periods under extreme back up to 225psi. To ensure that the pump is turned on and off
operating conditions from the outset or, where existing turbines are at the correct times, it is important to carefully track the pressure in
concerned, at the earliest opportunity.
the system accumulator. This vital tracking service is performed by a
The good news is that even smaller components are increasingly pressure sensor and it thus makes a vital contribution to the efficient
being made available to a wide range of specifications, defending function of wind turbines.
systems from failure and operators from the costs that even small
This specific example illustrates the integral part played by
unplanned maintenance periods can create. To fully appreciate how pressure sensors in wind turbines, but it is important to note that
these small but vital components can help turbines harness wind sensors can take hundreds of measurements that monitor and
energy to its maximum potential, we need to look at how wind control activity within the system, such as vibration, a condition that,
turbines work and, specifically, how pressure switches and transducers unsurprisingly given its environment and function, affects everything
are key to their effectiveness.
inside a wind turbine. Indeed, the constant presence of vibration
In a typical wind turbine, a series of pressure sensors are in means that components measuring other readings must be designed
operation to ensure that key actions are performed swiftly and safely. to withstand vibration and yet still give accurate results.
There are two sensors controlling the two yaw brakes; if the pressure
Another important role played by pressure transducers is in
falls below the set limit, the sensors send a signal to the control managing the pitch control system, which is also fed by the main
system, which in turn closes a valve to maintain the remaining pressure system accumulator. In most cases, adjusting the pitch angle of the
in the system accumulator. Another two sensors control the pump blade accurately ensures optimal efficiency in wind turbines. When it
that distributes hydraulic pressure to all of the hydraulic equipment comes to protecting the turbine, it is the speed and efficiency with
on the turbine. Two more sensors control the yaw accumulator, which the blades can be furled that matters. This means that when
alerting the control system to turn on the pump and recharge the the wind speed rises above the turbines rated capacity, the blades
system accumulator when the pressure falls to a set limit. There are must be edged parallel with the wind to avoid any potential damage.
further sensors controlling the parking brake and monitoring the The most common method of managing these requirements is the
characteristics of the gearbox lubricant.
use of hydraulic pitch control, which uses fewer components than
Critical to the smooth running of wind turbines are hydraulic a mechanical system and is thus easier to maintain. In terms of
systems. These play a vital role both in optimising and defending the performance, the hydraulic pitch control system also scores over a
turbine by controlling blade pitch and yaw to maximise the amount mechanical system in that it can respond faster to changes in pitch,
of power generated under varying wind conditions, while protecting minimising the potential for an overload. Hydraulic pitch control is
the turbine from damage. A loss in hydraulic pressure can certainly typically accompanied by hydraulic yaw control, which positions the
reduce the performance of a wind turbine, but the consequences can rotor into the wind to maximise power output.

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Switches and transducers must be sensitive yet robust to perform


effectively in a system where such forces are at work. Turbine brakes,
for example, are subject to temperatures more than double those
of car brakes, while gearbox bearings can move only a few degrees
beyond temperature limits before failure becomes imminent.
Nevertheless, pressure sensors can effectively monitor and control
these conditions and maintain stable operation. So, with the potential
for pressure sensors to make such fine but crucial control over wind
turbine systems, it is vital that they are carefully selected by engineers
to fully exploit that potential.
While pressure transducers and pressure switches are key
components in wind turbines, the capabilities of these two distinct
components are different and this needs to be considered when
specifying a system. A pressure switch monitors pressure at a
set point, while a pressure transducer monitors an entire range of
pressure. The pressure switch provides a simple but effective level of
on-off safety, while the pressure transducer offers the potential for
more sophisticated predictive control, delivering a continuous output
that corresponds to the pressure level, and offering a range of options
for the control system. For example, a gradual decrease in pressure
might trigger a series of escalating alarm signals, culminating in an
automatic shutdown to conserve pressure in the accumulator.
It is clear that the demands on wind turbines are considerable and
that there is a need for sophisticated, reliable sensors to protect them
and optimise their performance, and as a result of this, manufacturers
are continually developing devices that satisfy that need. One factor
that has recently been addressed is that of supplying sufficient
overpressure capability. The phenomenal power of the wind provides
the very energy that drives the turbine, but its natural unpredictability
can threaten the effective function of the machinery. For example,
a sudden gust of wind hammering the surface of the blades might
generate a pressure spike on the hydraulics that control the pitch and
yaw of the blades.
This specific problem has been addressed by Gems Sensors
and Controls, which offers custom pressure sensors that allow
overpressure capacity to be raised beyond the limits of conventional
components. These sensors can also be protected by the addition to
the pressure port of a snubber, a restrictive orifice that smoothes out
pressure spikes.
Overpressure, dirt contamination, temperature fluctuation,
electrical wiring faults the number of problems that can be dealt
with via pressure sensors is considerable and there are a few tips and
tricks that can make them still more effective. For example, sensors
that are deployed to monitor dirt contamination in oil supplies are
best mounted away from where particles settle (such as at the base
where particles sink to, or near the surface where particles may float);
instead, these sensors are best positioned where the oil circulates.
Similarly, temperature information is best gathered when the sensor is
not positioned in close proximity to the hottest component.
The need for sensors in wind turbine systems to offer results that
are not subject to corrupting influences has recently been addressed
by the introduction of stainless steel casings. These casings provide
a high level of shielding from electromagnetic interference, reducing
the possibility that the vast amount of electrical potential produced

As the technology matures, greater experience is helping engineers assess


which components are likely to fail first in a modern wind turbine

by the turbine could cause the sensor to provide an incorrect reading.


Another important concern when specifying pressure sensors for
wind turbine applications is their ability to withstand a wide range of
temperatures and yet still continue to deliver reliable results. Not only
must they resist external temperatures of different extremes but also
heat from within the turbine itself. Pressure sensors typically operate
in a confined space alongside electric motors, hydraulic pumps
and accumulators, all pumping out heat of their own. Once again,
engineers should consider the more advanced options now available,
which use temperature compensation techniques to ensure accurate
measurements, regardless of temperature.
For instance, it may be beneficial to customise a sensor to a
specific proof rating defined as the maximum level of pressure that
it can withstand without damage. If a system is running at 250 bar, the
designer might specify a sensor with a 250 bar scale and a 500 bar
proof rating. However, conventional pressure sensors often do not
provide a high enough proof rating for wind turbine applications so it
may be prudent to consider more specialised alternatives.
The potential to reduce maintenance both planned and
unplanned on wind turbines is huge and provides operators with
a powerful tool that can help them to meet the demand for clean
and economical wind energy. By surveying the current options when
specifying pressure monitoring devices and keeping a keen eye on
developing technology, engineers can tailor their systems with a
collection of sensor components that, with fine precision, help keep
turbines turning.
Author Details
Mike Powers is product marketing director for Gems Sensors and
Controls.
e-mail: mpowers@gems-sensors.co.uk
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

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OPERATIONS AND MAINTENANCE


By Matt Fielder

KEEPING
HYDRAULICS
HEALTHY
ENSURING CRITICAL SYSTEMS
ARE ROBUST AND RELIABLE

Operators must consider a wide range of issues if they are to protect and optimise their wind turbine equipment, in
particular the hydraulic systems which are prevalent.

Hydraulic systems are used extensively in wind turbines, notably in the pitch,
yaw and brake control systems

Across the world, from east to west, the provision of wind power
is increasing dramatically with, for example, China and the USA
producing the first and second largest volumes of wind power
respectively. So what must wind turbine suppliers and engineers do to
ensure that the ever-increasing demand for wind power is satisfied?
One of the biggest concerns in the construction of wind
turbines is the reliability of the gearbox. Changing a gearbox is

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typically a lengthy and extremely costly exercise, so extending and


optimising these parts is a prime concern for owners, operators and
manufacturers. In the current wind power climate, the improvement
of gearboxes is a key issue because turbines will become larger to
increase performance and meet the rising targets that governments
are hoping to attain. The extreme engineering challenge posed by
the wind and the difficulty in properly assessing the loads that pass
through the gearbox have led some manufacturers to reduce the
number of moving parts in the wind turbine. The upside of this is
that there are fewer components to malfunction; the downside is that
these gearboxes are more expensive.
Hydraulic systems represent a substantial part of each turbine,
for example being used for yaw, pitch control and brake control,
so it is important that both operators and prospective maintenance
providers are aware of the potential problems that could arise as
various parts wear, and how to implement an effective predictive
maintenance programme.
Equally important is the development of critical systems that are
as robust, reliable and long lasting as possible, to minimise failure and
wear rates and reduce the need for routine maintenance. In addition,
there is a growing need to minimise the amount of maintenance
that is carried out at the top of each turbine tower by modularising
key operational units and/or moving them to ground or sea level.
When the factory floor is 80 metres in the air, a stroll around the deck
to inspect the equipment is not a viable option and it is here that
precision monitoring and control can reduce repairs to a minimum
and significantly extend times between scheduled maintenance.
The reduced need to access wind turbines not only improves cost

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efficiency but also offers benefits for the health
on the needs and requirements of ageing
and safety of key maintenance personnel.
turbines is limited.
The goal is to design wind turbines that
Bearing in mind these limitations, lets look
operate at optimum efficiency, while requiring
at what we know can be done. One way for
as little manual intervention as possible. In order
operators to insure themselves against a series
to achieve this, many turbine manufacturers are
of gearbox failures which are responsible
turning to the latest generation of hydraulics
for the majority of turbine stoppages is by
technology that has been specially developed
employing effective inline filtration technology.
to meet the specific requirements of modern
This is essential in order to capture particles
wind turbine manufacture. For example, turbine
before they reach sensitive components in
producers are increasingly integrating the
all large capacity turbines, including those
latest hydraulics technology from companies
that have alternative methods of pitch and
such as Parker Hannifin into nacelles to control
yaw control, such as electromechanics. With
the pitch of the blades and the yaw of the
turbine gearboxes required to gear up the
nacelle. This innovative use of technology
low speed input shaft to provide a high speed
maximises the power generating efficiency of a
output for the turbine, the filtration for both
wind turbine and, just as importantly, protects
lubricating and hydraulic fluids is crucial.
the equipment in high winds.
Where hydraulic control systems are used,
To optimise output, hydraulic cylinders are Devices such as this one are used to measure
effective filtration technology is especially
being used in pitch control systems, allowing contamination in hydraulic fluids
important, extending maintenance intervals
the angle of the rotor blades to be varied
and increasing the reliability of pitch and
quickly and precisely through a cam action. The blades are either yaw systems. A comprehensive range of filtration technology has
turned into the wind to increase the rotational speed if the wind been developed specifically for filtering out particulate and water
speed falls, or out of the wind if wind speed increases. This is typically contamination from hydraulic fluid to just a few microns. The use of
achieved by installing three pitch control systems in the hub of the this technology is vital to eliminate the risk of precision engineered
turbine, one for each blade.
system components, such as cylinders, accumulators or valves,
Efficiency is likewise enhanced by enabling continual adjustment suffering from reduced performance levels and premature failure,
of the yaw, or rotational position of the nacelle. In the same way that which can ultimately reduce the efficiency of the wind turbine and
output is optimised by tilting the angle of the blades so that they are raise costs for operators.
facing into the wind, the nacelle too must be rotated about its vertical
However, care must be taken when designing and specifying
axis in response to the changing wind direction.
filtration systems in order to prevent restricting the fluid flow and
However, all of these enhancements can only deliver their full thus, reducing the efficiency of the hydraulic circuit. By correctly sizing
potential with adequate protection. It is important to remember that these devices to accommodate the overall operating conditions, it is
the hydraulics must be protected from potential particulate and water possible to eliminate the risk of any pressure loss across filters and
contamination, the primary cause of failure in lubricated and hydraulic the associated problems, such as increased energy consumption and
equipment. Indeed, it is vital to employ a range of effective filtration heat generation.
and condition monitoring solutions if consistently reliable operation
The wind power industry is also driving engineering development
and minimised operating costs are to be achieved.
in other areas. For example, leading manufacturers of filtration
Operation and maintenance costs constitute as much as 25% systems for wind turbine hydraulic machinery are constantly evolving
of the total cost per kWh of power generated over the lifetime of and refining the design of their equipment in order to maximise their
the turbine, a fact which has been noted by both manufacturers and performance. Modern filter materials now offer unrivalled strength
operators. As a result, O&M costs are attracting greater attention, and dirt holding capacity, while also reducing resistance to flow
as manufacturers attempt to lower these expenses significantly by following recent advances that have resulted in modifications to
developing new turbine designs that require fewer regular service the composition and construction of standard glass fibre materials.
visits and less turbine downtime. With so many countries aiming to For example, Parkers Microglass III material has been developed
increase their provision of wind power, governments will eventually to reduce dynamic pressure across the filter by 8% while improving
need to begin reducing subsidies for their wind power plans to be contamination loading by 15%, when compared with conventional
taken seriously and so making savings in costly areas such as O&M is filter media.
vital to the credibility of the industry.
To offer another level of defence against contamination, particle
However, this is easier said than done. The costs for repair and counters can be used to monitor condition, either via portable units
related spare parts are difficult to predict and tend to increase as the or in-line components. The latest fluid filtration technology is highly
turbine gets older. Nonetheless, owing to the relative infancy of the effective in removing contaminants from hydraulic systems, but it is
wind energy industry, relatively few turbines have yet reached the end still advisable to consistently record and monitor contamination levels
of their life expectancy of 20 years and, consequently, information using particle counting technology in order for essential maintenance

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WIND TECHNOLOGY SUPPLEMENT - SEPTEMBEROCTOBER 2011

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Modern filter materials offer unrivalled strength and dirt holding capacity

to be scheduled before damaging problems occur. The latest portable


analysers, such as Parkers icountPD, use a technology called light
obscuration to quickly and accurately measure contamination levels
in hydraulic fluids. Such devices can also be built into the hydraulic
system, including the lubrication or power transmission circuit, along
with remote monitoring devices to provide end users with a real
time measurement of solid contamination levels in accordance with
ISO cleanliness codes. This particular device can identify particles
down to 4 microns, providing an early warning of wear and potential
component failure, as well as the option for integral moisture sensor
to detect water contamination without requiring a separate unit.
Clearly, the multiplication of wind turbines across the globe
will correspondingly trigger a massive increase in the demand for

maintenance and, depending on the operation, this will be carried


out in different ways. As increasing numbers of wind turbines move
out of their manufacturers warranty period, more and more third
party maintenance engineers will be required to provide independent
advice to wind farm operators.
In particular, third party technical capacity will be required for
component inspections, repairs and refurbishment, especially for
critical parts such as gearboxes and blades. This underlines the need
for components that optimise systems, since too much scheduled
maintenance can be expensive and, in some cases, outweigh the cost
of the problems it seeks to prevent.
The future for wind power is strong but nevertheless unpredictable.
How big a share will wind take in the coming decades? And how
will that wind be provided? So far there seems to be no established
technical limit on turbine size. The first giant offshore turbine, named
Britannia, will be complete by 2012, its three 30 tonne blades
sweeping a 30 metre circle from atop a 175 metre tower are expected
to produce 10 MW of power. The engineering demands on such a
project are colossal and, with global demand for renewable energy on
the increase, it is essential that the technology designed to monitor
and control wind turbines leaps forward, and that engineers are aware
of the changes. This is an exciting time for wind power and a time to
be open and willing to grasp new possibilities.
Author Details
Matt Fielder is industrial market development manager for the
Hydraulic Filter Division of Parker Hannifin.
e-mail: rew@pennwell.com
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com

___________

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
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WIND TECHNOLOGY SUPPLEMENT - SEPTEMBEROCTOBER 2011

RENEWABLE
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DISTRIBUTION SWITCHGEAR
By Jose Mara Torres, Iaki Blanco & David Goiricelaya

TESTING TIME
FOR WIND
SWITCHGEAR
Addressing the rigours of the offshore environment demands far more from in-turbine medium voltage switchgear, as well
the testing regime, which must reproduce conditions at sea and during transportation to site.

The positioning of switchgear in the tower may require design modifications

A modular switch unit under going testing on a vibration platform

In offshore wind development, the safety and reliability requirements


for medium voltage (MV) equipment are even higher than for the
onshore environment. As access is more limited at sea, turbine
reliability and its safety features become vital to operational success.
Guaranteeing maximum and continuous supply during operation,
and personnel safety when inside an offshore turbine, are thus serious
considerations during construction.
As a consequence of this new reality, MV switchgear has
undergone developmental changes. Now swicthing equipment must
accomplish higher insulating levels and operate under much harder
salinity corrosion, humidity and temperature conditions than those
established by exisiting onshore international standards.
The following describes the main developments with MV
switchgear, as well as the particular tests performed, which reproduce
sea transportation conditions and the environmental conditions

of offshore wind turbines. Part of the performance assessment is


achieved by means of accelerated aging tests in salinity chambers,
which has allowed certification of MV switchgear for use in offshore
wind turbines, as well as on wind farms destined to operate in other
extreme climate conditions, such as extreme cold.

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Environmental impacts
Driving mechanisms are the devices responsible for opening and
closing a turbines three-position switch-disconnector and circuit
breaker. These systems would only be opened when a fault occurs
within the wind farms MV grid, or during maintenance or operation
checks. Nonetheless, the reliability of this device is vital from a safety
and performance point of view.
In places like the US and Canada, for example, temperatures at a
wind farm can be as low as -22 F (-30 C) during operation and -40 F

WIND TECHNOLOGY SUPPLEMENT - SEPTEMBEROCTOBER 2011

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Power & design

(-40 C) while equipment is being stored. In


The power capacity of wind turbines and
these conditions, operation of the driving
wind farms has increased dramatically
mechanisms must be verified according to
over the last years. The power capacity of
the mechanical endurance category they
the first turbines ranged between 200 kW
are listed under, and verified for leakage
and 300 kW, whereas today most offshore
turbines are 3 MW machines or more. Some
levels from the MV gas tank so they dont
experimental wind farms are even being
increase, losing insulating properties.
developed with 6 MW machines and still
In one case study of this nature, the
large machines are under development.
circuit breaker and switch-disconnector
To decrease the electrical loses within a
driving mechanisms were operated inside
MV wind farms grid, theres a tendency to
a climatic chamber for 12 hours at -40 F.
increase distribution voltage levels, which
This was done to ensure that the number of
requires higher insulation levels than those
operating sequences was achieved and the
established by international standards. This
speed (rad/s), torque operation value (Nm),
is why a certain amount of wind farms use
and rebounding (mechanical degrees)
A switch driving mechanism following a 720-hour salt40.5 kV units, which determine insulating
remained within the required parameters.
spray chamber test
levels of 95 kV for one minute at industrial
A
related
issue
is
corrosion.
power frequencies (routine tests in all
International standards for indoor
IT IS NECESSARY TO EXTEND THE
compartments of the MV unit) and
installed switchgear states: Air must
DRIVING MECHANISMS LIFECYCLE 185 kV for the lightning impulse test
not be significantly contaminated
(BIL).
with dust, smoke, corrosive/explosive
AGAINST CORROSION
The particular position in which
gas, steam, or salt. However, the
environmental conditions in any offshore wind farm cannot guarantee the MV switchgear is installed inside the wind turbine tower requires
the above statement due to high levels of salinity in the atmosphere. different designs to maximise safety in the case of an internal arc fault
Therefore, it is necessary to apply special surface treatments to the inside the switchgear. Some turbine manufacturers choose a layout
galvanised steel elements and, most importantly, to extend the driving where the switchgear is installed above ground level. This means that
mechanisms lifecycle against corrosion, ensuring it will without fail an alternative design is necessary for the gas release duct from the
switchhousing.
accomplish the number of operations it promises.
In one example, keeping this potential requirement in mind during
A specific test performed on driving mechanisms and small
components (such as tripping coils, motors, relays, and steel testing, the bottom of the unit was sealed (the cable compartment),
enclosures) is to place them in a salt-spray chamber for 720 hours and a backside gas-release duct was designed and installed to
at 95 F (35 C), and spray a solution of 5% NaCl by weight. The guarantee that nobody either in front of or underneath the unit
goal attained: to achieve a high-corrosion resistance classification, could be harmed during its operatuion. In this case the testing of
this special design was performed according to the IEC & IEEE
according to international standards.
standards, accomplishing IAC AFL (R as an option) arc fault resistance
Transportation of the switchgear
classification for a 21 kA short circuit current.
Every wind project developer knows that one of the most important
parameters to optimise during construction of a wind farm is the Safety offshore
installation time because of the high costs associated with the required Wind energy technology and the construction of new wind farms
resources. Thats why its common to install the MV switchgear in places where the operational requirements are higher due to
horizontally inside a turbine tower and then transport the tower to environmetal conditions such as salinity, temperature, or humidity,
its offshore platform in a special vessel. However, transporting the require MV switchgear which is adapted to those particular conditions
MV switchgear under these conditions adds another challenge, as the if it is to operate safely and successfully and which international
equipment must withstand horizontal forces due to the positioning of standards do not fully take into consideration currently.
the tower. It also must withstand vibrations during sea transportation.
To reproduce these conditions on MV switchgear, a horizontal Author Details
axis 3D vibration test has been used, for example. In this case the
device applies a 4 Hz frequency and an acceleration of 0.875 m/s2 Jose Mara Torres, Iaki Blanco & David Goirecelaya are from
with a maximum amplitude of 27.2 mm. The test was fixed at a low Ormazabal.
frequency, and performed on a group of three modular functional e-mail: mgg@ormazabal.com
units. Afterwards, the copper circuit resistance was measured to
ensure the values did not change during testing.
This article is available on-line. To comment on it or forward it to a
In this case, all joint connections, screw drive connections, and the colleague, visit: www.RenewableEnergyWorld.com
welding successfully passed.

WIND TECHNOLOGY SUPPLEMENT - SEPTEMBEROCTOBER 2011

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TECH NOTES

Wind updates
Wind farms back to school
A wind farm has been designed
in which the array of machines
has been modelled on the
fluid dynamics which surround
schooling fish. According to BBC
reports, aeronautical engineer
Robert Whittlesey of the California
Institute of Technology (Caltech)
said, The fish aim to align
themselves to optimise their
forward propulsion, and he added
that this tendency can be adapted
in a turbine array to maximise
energy extraction.
The new design uses closelyspaced pairs of counter-rotating
turbines that funnel air to their
neighbours, with little energy
lost to turbulence. Not only do
neighbouring machines benefit
from lower turbulence, but the
funnelling effect is also important. In
fact, power generated by the paired
turbines can actually be greater
than that from the turbines working
independently,
the
research
reportedly indicates. In modelling
tests, a turbine five rows in an
array back still generates 95% of
the output of one on the front row.
The researchers believe that a wind
farm based on this closely-packed
design could produce around 10
times that of current designs.

Understanding icing
A study analysing measured icing
and comparing the figures to model
data on Swedish utility group
Vattenfalls machine, which began

Schooling fish inspire wind farm


designs
CalTech

in 2010, is now being followed up


by an analysis of production data
and ice problems on other sites in
northern Sweden.
The project will also investigate
available mitigation technology,
various solutions and their costs.
This will be done in cooperation
with turbine producers, Vattenfall
says in a statement.
The usual approach to deicing is to install heating in the
rotor blades. However, that is not
enough to eliminate production
losses entirely or to completely
eliminate the risk of dangerous ice
throws, though it does decrease
the risk. Other measures may
include replacing sensors, adding
new ones and mounting cameras.
The project is due to be completed
by the end of June 2012.

Vergnets compliance
A two-bladed wind turbine design,
the Vergnet SA, GEV HP 1 MW,
has received a Statement of
Compliance from GL Renewables
Certification for its design. This
Class IIIA is also fitted with a
novel, and patented, lowering

system making it possible to lower


the upwind part of the nacelle for
maintenance and servicing.
The Statement of Compliance
confirms that Vergnets Design
Assessment has been carried out
according to GL guidelines and
verifies that the turbine complies
with the requirements of the
respective standards regarding load
assumptions, strength verification
and safety concept.

UAVs to inspect turbines


A birds eye view of the top of a
wind turbine, which can be used
to carefully examine the structure
and blades from any angle, while
engineers a safely at ground level
is provided by The AutoCopter.
This UAV (unmanned aerial
vehicle) provides a mobile flying
platform for any type of viewing
and recording, for determining
present conditions and/or for
documentation of completed
repairs, inspections etc. without
risk to personnel.
The HD65 AutoCopter, for
higher altitudes, is just over 8 feet
long (2.49 metres) with a rotor
Span of 2.50 metres and will fly
to the necessary height of several
hundred metres. Their ability
to survey the area from above
provides a perspective on current
conditions or damages. Stabilised
software and AutoPilot models
are available. Features include full
automatic takeoff, waypoint (GPS)
tracking and automatic landing.

Its
developers
say
the
Autocopter costs less than
US$2.00 per hour to fly, will fly
all day on 19 litres of petrol, and
produces the same visual results as
a manned helicopter.

Prevent circulating currents


Mirus International has introduced
its GENLINK DPNL (Dissimilar
Pitch Neutral Limiter), a multiple
winding reactor which is installed
in the common neutral of
paralleled sources.
When paralleling equipment
such as generators or other
distributed generation sources
to each other or the utility supply,
its critical that voltages produced
by this equipment match as
closely as possible, explains Tony
Hoevenaars, president of Mirus
International. To properly match
voltages the RMS values need to be
similar as well as the instantaneous
values which are determined by the
voltage waveshapes. If not properly
matched,
circulating
neutral
currents can result.
This can also be true when
energy sources such as wind are
paralleled with the utility. In these
circumstances, neutral circulating
currents will appear which, if left
untreated can cause equipment
to overheat and false tripping of
overcurrent protection equipment.
The DPNL, once installed in the
common neutral between dissimilar
generators or the generator and
utility supply, adds impedance.

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Giant protection

At Hempel, were proud of our long-standing expertise in wind tower protection and
our legacy in industrial coatings. And its this legacy that we are standing on to reach
the very edge... Our latest technological innovation is an advanced coating for wind
turbine blades. Aerodynamic, high-performing, advanced blade coatings from the
market leader of tower coatings. Thats protection you can trust.

Find out more on www.hempel.com

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________
RENEWABLE
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A Fresh Breeze
Behind every product is a creative mind. Two creative minds
are behind INA/FAG bearings a team that is twice as strong:
Schaeffler Group Industrial.
Renowned for creative technology and for 30 years of experience in the wind turbine industry, we know what customers
really want. Continued close collaboration with manufacturers
and operators provides impetus for both sides. New findings
from practical experiences are immediately implemented in
our calculation and CAE tools that we use to initially generate
virtual models of our products. In reality they then become
high-performance gearbox bearings or durable main rotor
bearings. Alternatively they are integrated in WiPro, our
online monitoring system, which is GL and AZT certified and
used all over the world.
A fresh breeze is blowing in the world of bearings technology.
Make sure you benefit from it too!

913 008

www.schaeffler.com

-VYTVYLPUMVYTH[PVULU[LYH[9,>OV[PTZJVT
___________
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