Special Focus – Wind Power in the EU

JANUARY/FEBRUARY 2009

www.renewableenergyfocus.com January/February 2009

Special focus – Wind power in the EU

inside: Obama: prospects for alternative energy Can solar PV beat the downturn? Small wonders: biomass from algae RENEWABLE ENERGY FOCUS Hydrogen production from renewables

$(*&&5*6%&!!&!*&+!'%#$#%& 7#&+7*8!$#+*65!&$%$! (9)#+ ! % : ;< ; = . > ; > .: ; > ; . . ? ! % : ; . ; = . : > > ; 7:7 * ;, $ : "= .. @ ; A6 = != #= #; % ? > 8 , $: > . ! % ; > ; ;>: > ); -: ;> . : ; ". : ;..: ".

!"#$!$%%&%!'(#)#$*$$!&+ , - +.. ,//001230/ .4 Editorial

Many believe that the USA could very quickly become the next signiﬁ cant growth engine for the renewables industry.

Er, show me the money?

By the time this editorial is in your hands the US President will have signed the American Recovery and Reinvestment Tax Act of 2009 Editor – authorising the David Hopwood spending of US$789 billion. And though the details will become apparent in the [email protected] T +44 1865 843648 coming weeks, early indications are that this could be a major boost for the F +44 1865 843973 renewables industry, with provisions including:

Assistant Editor t "OFYUFOTJPOUPUIF1SPEVDUJPO5BY$SFEJU 15$ TVOTFUEBUF Kari Larsen t 5IFBCJMJUZGPSUBYQBZFSTUPFMFDUUPDMBJNUIF*OWFTUNFOU5BY$SFEJU *5$ JOMJFV [email protected], T +44 1865 843639 F +44 1865 843973 PGUIF15$GPSDFSUBJOQSPKFDUT Weekly/News correspondent t 5IF BCJMJUZ GPS UBYQBZFST UP SFDFJWF DBTI HSBOUT JO MJFV PG DMBJNJOH UIF *5$ PS Bill Eggertson [email protected] 15$GPSDFSUBJOQSPKFDUT T +1 613 728 0822 F +1 613 728 2505 Correspondents’ network 5IPTFXIPIBWFCFFOMPCCZJOHGPSZFBSTPOCFIBMGPGUIFSFOFXBCMFTTFDUPSJO Asia/Pacifi c: Richard Mogg; the USA could well be forgiven a wry shake of the head. Financial support for Europe/ROW: George Marsh North America: Don Smith; Paula Mints renewables has, at best, been inconsistent in recent times - and there is an irony Editorial advisory board that it has taken an economic crisis to deliver substantial support for renewables Christine Hornstein Executive Director, ISES UISPVHI UIF OPUJPO UIBU QSPNPUJOH BEWBODFNFOU JO DMFBO FOFSHZ XJMM TVQQPSU [email protected] BO BJMJOH FDPOPNZ XJUI OFX KPCT XIFO USBEJUJPOBMMZ UIF NBJO BSHVNFOU VTFE Bradley Collins against renewables is that the technology isn’t cost competitive with fossil fuels Executive Director, ASES [email protected] and not worth promoting. What a diff erence a year – and a change of President Production/Design Controller - makes. Russell Purdy Marketing Manager Tom Cox 0GDPVSTFHFUUJOHUIFDBTIJTPOFUIJOH TQFOEJOHJUXJMMBQQBSFOUMZCFUIFOFYU [email protected] T +44 1865 843654 hurdle to overcome. New Secretary of Energy Stephen Chu has already gone on F +44 1865 843987 SFDPSEUPTBZUIBUIFMMIBWFUPiUSBOTGPSNwIPXQBSUTPGIJTBHFODZ %P& XPSLT Sales Managers if the President’s stimulus plan is to succeed. Why? Because the stimulus bill Janine Castle [email protected] could see as much as US$40 billion handed over to the Energy Department T +44 (0) 1865 84 3844 F +44 (0) 1865 84 3973 XIJDIIBTBIJTUPSZPGEFMBZT IJHIDPTUT BOEBMBDLPGFYQFSJFODFJOEFBMJOHXJUI Martine Cariou-Keen spending on such a monumental scale. Despite that, the agency will be under [email protected] pressure to hand out money quickly to projects that would modernise the elec- Tel: + 44 (0) 1865 843845 Fax: +44 (0) 1865 843973 tricity grid, build electric cars and make homes and buildings more energy effi - Advertisement sales cient – thus promoting renewable energy. – Germany/Austria/Switzerland: Irene Smetana [email protected] But if this potential banana skin is avoided, many believe that the USA could T +49 (0) 611 880 86-20 F +49 (0) 611 880 86-10 WFSZ RVJDLMZ CFDPNF UIF OFYU TJHOJmDBOU HSPXUI FOHJOF GPS UIF SFOFXBCMFT Commercial Director & Publisher industry, taking over some of the demand from Germany and Spain as modifi ca- Laurence Zipson [email protected] UJPOTUPUIPTFDPVOUSJFT'FFEJO5BSJõT 'J5T LJDLJOBOEQVUUIFCSBLFTPOTPNF T +44 (0) 1865 843 685 of the growth. One thing is certain though: With a new renewable energy direc- F +44 (0) 1865 843 973 Editorial and advertising offi ces tive in the EU now signed into law, and the US President’s signature on the Elsevier Ltd, The Boulevard, David Hopwood TUJNVMVT QBDLBHF UIFTF BSF JOEFFE FYDJUJOH UJNFT UP CF BDUJWF JO SFOFXBCMF Langford Lane, Kidlington, Oxford OX5 1GB, UK Editor energy.

renewable energy focus January/February 2009 1 DO WE LOOK WHEN THERE ARE NO FOSSIL FUELS TO LOOK FOR?

As the world races on towards development, our ﬁ nite conventional energy supplies continue to deplete. To power sustainable development, we need to look towards renewable, eco-friendly energy sources, like the wind. At Suzlon, we serve your energy needs by providing dependable wind energy solutions backed by excellent customer response and a fully integrated and secure supply chain, which delivers customised solutions to ensure project performance globally. Come to us, so the wind can power the world’s future and yours.

www.suzlon.com

World’s 5th largest and fastest growing integrated wind turbine manufacturer | 350kW to 2.1MW capacity wind turbines | Workforce of 12,000 people in USA, Australia, Belgium, Brazil, Canada, China, Denmark, Greece, India, Italy, Nicaragua, Portugal, Spain and Turkey | R&D in Germany and The Netherlands | Global Management Headquarters in Amsterdam Contents

13 Contents 01 Editorial 04 News 20 President’s corner 22 Wind: Operation & Maintenance 28 Steve Sawyer/GWEC 30 Carbon 32 Utilities/Renewables Focus: Wind power in the EU 38 EU wind market: an introduction What’s the state of play in the EU wind power marketplace, and how will the 32 financial crisis affect wind players in the Bloc? 46 Harnessing geography for European wind The concept of location intelligence is playing a growing role in the planning, design and siting of European wind farms. 50 Siemens Wind: a profile What does the future hold for the major EU wind player? Interview with ceo Andreas Nauen. 54 Turbine innovation at BWEA30 Solar 58 Full steam ahead for PV in US homes? How will recent tax legislation Stateside 50 affect the takeup of new PV projects? 62 Can Solar PV beat the downturn? Wind 70 Recycling wind turbine blades As more and more material goes into bigger and bigger turbines, what are the recycling options?

Editor’s pick 66 Economic stimulus in the USA 68 Renewables in Africa Other articles 54 34 Hydrogen production from renewables 74 Biomass from Algae Small wonders – biomass from Algae 79 Chile to warm up renewables market 84 How to invest in geothermal 88 Obama: prospects for alternative energy 92 Product Finder 94 Upcoming Events

renewable energy focus January/February 2009 3 News/Headlines

■ 3TIER, an independent provider of global fuller overview, see GWEC’s Steve Sawyer report International renewable energy assessment and forecasting, back from the conference on page 28. ■ Trojan Battery Company has developed a has unveiled a 5 km resolution global wind map new RE Series line of batteries optimised to based on a dataset of global wind resources deliver “unmatched life, durability and excel- and their spatial and temporal variability. Europe lent charge eﬃciency” in renewable energy ■ The Solar Electric Power Association (SEPA) ■ OpenHydro has been selected by Électricité applications. has released a new report, Utility Procurement de France (EDF) to develop a tidal current ■ ICP Solar Technologies Inc, a developer, Study: Solar Electricity in the Utility Market, demonstration farm that will be connected manufacturer and marketer of solar panels the ﬁrst in a series of research reports to be to the French electricity grid. The project and products, has entered into a binding released in 2009. The full report is available involves the installation of between four Letter of Intent (LOI) to acquire Spanish for download at www.solarelectricpower.org. and 10 seabed-mounted marine turbines, Ibersolar Energía, which manufactures and ■ Elsevier is launching a ‘one-stop’ site for energy with a total capacity of 2–4 MW in a tidal supplies solar photovoltaic (PV) systems, solar researchers covering all aspects of energy farm located in the Paimpol-Bréhat (Côtes thermal systems, and absorption units. Under including renewables – Energylocate (www. d’Armor) region of Brittany. The turbines will the terms of the LOI, ICP will acquire 100% of energylocate.com). The platform features be progressively connected to the French the shares of Ibersolar. energy content, social networking tools, discus- electricity network from 2011. ■ A report indicating that 12% of the world’s sion forums, subject news feeds, and RSS feeds ■ GreenFuel Technologies Corporation and energy needs could be supplied from wind powered by ScienceDirect and Scopus. renewables management company Aurantia in 12 years, and 30% by 2050, has been ■ RWE Energy, Siemens and partners have kick are now in the second phase of their joint published by the Global Wind Energy started a project focused on developing and project to develop and scale algae farming Council (GWEC) and Greenpeace Interna- implementing integrated concepts to harness technologies in the Iberian Peninsula. The tional . Global Wind Energy Outlook 2008 looks and exploit the optimisation potential of goal is to demonstrate that industrial CO2 at the global potential of wind power up to information and communication technologies emissions can be economically recycled to 2050, and has found that it could play a key (ICT) in decentralised electricity markets. The grow algae for use in high-value feeds, foods

part in achieving a decline in CO2 emissions project is called Development and demonstra- and fuels. by 2020. tion of decentrally networked energy systems for ■ Scottish and Southern Energy (SSE) will ■ Aggressive investment in renewable power the E-Energy marketplace of the future (E-DeMa). sell 50% of the equity in Greater Gabbard generation and energy efficiency could ■ COP14 in Poznan, Poland, which took place Offshore Winds Limited (GGOWL) to create an annual USUS$360 billion industry, in December 2008 made progress in the area npower renewables, the UK fully owned providing half of the world’s electricity, and of technology. The Global Environment subsidiary of RWE Innogy. RWE Innogy will slashing over USUS$18 trillion in future Facility’s Poznań Strategic Programme on reimburse SSE for 50% of the capital costs fuel costs, according to the report Energy Technology Transfer endorsed a plan to scale already incurred in developing the 500 MW [R]evolution: A Sustainable World Energy up investment levels to aid developing coun- project. The total cash consideration of the Outlook from the European Renewable tries in dealing with the effects of climate transaction is £308 million. Energy Council (EREC) and Greenpeace change. The finishing touches were also put ■ Global warming, energy security and rising oil International. to the Kyoto Protocol’s adaptation fund. For a prices have resuscitated the marine energy

© 2008 Elsevier Ltd. All rights reserved. outside the institution. Permission of the publisher is required for all US$385 for all countries except Europe and Japan This journal and the individual contributions contained in it are other derivative works, including compilations and translations. ¥44,500 for Japan protected under copyright by Elsevier Ltd, and the following (Prices valid until 31/12/08) terms and conditions apply to their use: Electronic Storage or Usage Please send payment to: Permission of the publisher is required to store or use electronically renewable energy focus Photocopying any material contained in this journal, including any article or part Elsevier Ltd, The Boulevard, Langford Lane, Kidlington, Oxon, Single photocopies of single articles may be made for personal use of an article. Contact the publisher at the address indicated. OX5 1GB, UK. Tel: +44 (0)1865 843687 / Fax: +44 (0) 1865 834971 / as allowed by national copyright laws. Permission of the publisher Email: [email protected] and payment of a fee is required for all other photocopying, includ- Except as outlined above, no part of this publication may be repro- www.renewableenergyfocus.com ing multiple or systematic copying, copying for advertising or duced, stored in a retrieval system or transmitted in any form or Periodicals postage is paid at Rahway, NJ 07065, USA. promotional purposes, resale, and all forms of document delivery. by any means, electronic, mechanical, photocopying, recording or Postmaster send all USA address corrections to: renewable Special rates are available for educational institutions that wish to otherwise, without prior written permission of the publisher. energy focus, 365 Blair Road, Avenel, NJ 07001, USA make photocopies for non-profit educational classroom use. Free circulation enquiries: Address permissions requests to: Elsevier Rights & Permissions Tower House, Permissions may be sought directly from Elsevier Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Sovereign Park Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 Market Harborough, 843830, fax: (+44) 1865 853333, e-mail: permissions@ elsevier.com. You Notice Leicestershire may also contact Rights & Permissions directly through Elsevier’s home No responsibility is assumed by the Publisher for any injury LE16 9EF page (http://www.elsevier.com), selecting first ‘Customer Support’, and/or damage to persons or property as a matter of products Tel: 01858 439612, then ‘General Information’, then ‘Permissions Query Form’. liability, negligence or otherwise, or from any use or operation Fax: 01858 434958 of any methods, products, instructions or ideas contained in the E-mail: [email protected] In the USA, users may clear permissions and make payments material herein. Because of rapid advances in the medical sci- renewable energy focus is published by Elsevier Ltd, PO Box 150, through the Copyright Clearance Center, Inc., 222 Rosewood Drive, ences, in particular, independent verification of diagnoses and Kidlington, Oxford OX5 1AS, UK. The editor will be glad to consider Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, drug dosages should be made. Although all advertising material contributions but no responsibility for the safe keeping or return of and in the UK through the Copyright Licensing Agency Rapid is expected to conform to ethical (medical) standards, inclusion unsolicited material will be accepted. Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P in this publication does not constitute a guarantee or endorse- 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207631 5500. Other ment of the quality or value of such product or of the claims The paper used in renewable energy focus is Apollo Gloss manufactured from ECF pulp produced from renewable forest resources. ECF pulp is pulp countries may have a local reprographic rights agency for payments. made of it by its manufacturer. bleached without using elemental chlorine.

Derivative Works Subscription orders + payments renewable energy focus is printed by Headley Brothers Ltd, Subscribers may reproduce tables of contents or prepare lists of An annual subscription to renewable energy focus includes Kent, UK. articles including abstracts for internal circulation within their institu- 6 printed issues and costs: tions. Permission of the publisher is required for resale or distribution €334 for all European countries & Iran ISSN 1755 0084 Journal number: 02272

4 renewable energy focus January/February 2009

News/Headlines

more than double the 154,000 jobs recorded in 2007. ■ SeaGen, developed by Marine Current Turbines, has for the ﬁrst time generated at its maximum capacity of 1.2 MW. According to Marine Current Turbines, “this is the highest power so far produced by a tidal stream system anywhere in the world...” SeaGen was deployed in Northern Ireland’s Strangford Lough in May 2008, and has since undergone commissioning trials.

North America ■ Enbridge, its utility, Enbridge Gas Distribu- tion, and FuelCell Energy have announced the opening of what they call the world’s first Direct Fuel Cell - Energy Recovery Generation power plant. The 2.2 MW DFC-ERG plant is said to be the first multi-megawatt commercial fuel cell to operate in Canada, and REpower Systems AG has installed the prototype for its new REpower 3.XM onshore wind turbine in the Südermarsch wind farm support for this US$10 million project was near Husum, Germany. It has a rated output of 3.3 MW, a rotor diameter of 104m and a hub height of 80m, and is characterised by particularly low sound emissions. It will now undergo extensive testing for certification, reports the company. provided by both the federal and provincial governments. sector. Ocean energy has the ability to supply Ecotricity’s 66m diameter 1.5 MW turbine ■ BP Wind Energy has announced the full approximately 10% of the world’s electricity at Swaffham in Norfolk, UK, have provided commercial operation of phase I of the needs, writes analyst Frost & Sullivan. proof of the principle, with a small-scale Sherbino wind farm in Pecos County, west ■ DONG Energy and Wind Estate A/S have system discriminating effectively between Texas, USA. The first 150 MW of the project, opened the second stage of the Overgård the turbine and a moving target. Further which has a potential capacity of 750 windfarm in Denmark. With the construction tests are planned. MW, has been built through a 50-50 joint of 10 new 2.3 MW wind turbines next to 20 ■ The European Solar Thermal Industry venture agreement with Padoma Wind existing 2 MW turbines, Overgård is now Federation (ESTIF) has elected Olivier Power LLC. said to be Denmark’s largest onshore wind Drücke (head of sales and marketing at KBB ■ Puget Sound Energy (PSE) has placed an farm. The farm, situated approximately 25 km Kollektorbau GmbH) as its new President. order for 22 wind turbine generators from northwest of Randers in East Jutland, has a ESTIF has also announced that develop- Vestas for the proposed expansion of the capacity of 63 MW. ment of national markets in 2008 saw an utility’s Wild Horse Wind and Solar Facility ■ A total Spanish solar capacity of 2.4 GW increase in new installations of 45%-50%, in Kittitas County, Washington, USA. The will have been installed by the end of amounting to around 2.8 GWth of new planned expansion will result in 149 turbines 2008, according to the Spanish National capacity. and a capacity of 269 MW at Wild Horse. Energy Agency CNE (Comisión Nacional ■ The Scottish Government has released the ■ The Mayor of Los Angeles has unveiled the de Energía). The actual installed capacity details for its £10 million Saltire Prize Chal- Solar LA plan, which aims for 1.3 GW of solar may reach 2.5 GW in Spain by the end of lenge – purported to be the world’s biggest power by 2020, enough to meet 10% of LA’s 2008, according to the current forecast in marine energy innovation competition. The energy needs. the EuPD Research study The Spanish Photo- prize will be awarded to the team that can ■ The US Department of Energy (DoE) has voltaic Market 2008 – Optimism Despite Legal demonstrate, in Scottish waters, a commer- announced up to US$200 million over 6 Uncertainties. cially viable wave or tidal energy technology years (2009-2014) to support the devel- ■ REpower Systems AG has completed the that achieves a minimum electrical output opment of pilot and demonstration-scale assembly of the first three 6 MW REpower of 100 GWh over a continuous two-year biorefineries. The funding, which is subject 6M turbines in Bremerhaven, Germany. period. Any technology must use only the to annual appropriations, would go to biore- The wind turbines are expected to be power of the sea, and will be judged on the fineries using feedstock such as algae, and erected at the Westre civic windfarm on the merits of cost, environmental sustainability production of advanced biofuels such as German-Danish border in early 2009, where and safety. bio-butanol, green petrol and other innova- they will undergo a comprehensive testing ■ The number of jobs in the European wind tive biofuels. programme and checks for certification. energy industry will more than double by ■ EDF Energies Nouvelles is commissioning its ■ Early tests of Cambridge Consultants’ Holo- 2020, according to the European Wind 100.5 MW Wapsipinicon windfarm in Minne- graphic Infill Radar technology indicate that it Energy Association (EWEA). The EWEA sota, USA. The facility features 67, 1.5 MW GE can distinguish between turbine blades and report Wind at Work – wind energy and job Energy wind turbines and was developed other moving targets such as aircraft. Tests creation in the EU predicts that the number of and built by enXco, the US subsidiary of EDF of a prototype Holographic Radar system at wind energy jobs will reach 325,000 by 2020, Energies Nouvelles.

6 renewable energy focus January/February 2009

News/Headlines

inevitable slowdowns in markets elsewhere, China’s wind initiatives are so large in scale and so well supported by the Government, that the country’s new renewable energy goals are likely be met well before 2020. ■ China’s Huaneng Group plans a 9.1 billion Yuan (US$1.3bn), 166 MW solar project in the province of Yunnan, China, in 2010. It is co-invested by a unit of China Huaneng and Yunnan Provincial Power Investment. ■ According to the Japanese Ministry of Economy, Trade and Industry, the Japan Photovoltaic Energy Association (JPEA) will start accepting applications for the residential solar generation installation subsidies from mid-January as part of the implementation of the Japanese residential solar generation installation subsidy programme, which was incorporated into the supplementary budget for this fiscal year. The subsidy amounts to 70,000 Yen per nominal output of 1 kW. The annual The US House of Representatives has passed a US$819 billion economic stimulus package, which includes provisions for renewable energy in the USA. At the time of going to press, the Senate has just passed its version of the Bill. President Barack subsidy budget is 9 billion Yen, and could Obama has pledged a doubling of renewables in the US in the next three years (for more information, see pages 88-91) be applied to as many as 35,000 cases. Eligible systems must have a maximum ■ The US solar PV industry saw a 50% increase and a £250 million partnership between output of less than 10 kW. in shipments in 2007, according to a report Qatar and the UK to develop renewable from the US Energy Information Admin- energy and low carbon technology. istration (EIA), part of the Department of ■ Sharp has opened a second production line Energy (DoE). The overview report Solar in Katsuragi, Japan, for mass production of ROW Photovoltaic Cell/Module Manufacturing Activ- thin-film solar cells, increasing its produc- ■ Australia is in a strong position to develop ities 2007 shows that the industry is now tion capacity for thin-film cells from 15 MW a thriving national solar industry over the more than ten times the size it was in 1998. to 160 MW per annum. At the same time, next 20 years, according to a report into the ■ The US Department of Energy’s National with an investment of around €146 million renewable energy sector released by the Renewable Energy Laboratory (NREL) in new manufacturing technology, Sharp is Clean Energy Council (CEC). The report, and Iberdrola Renovables have jointly producing second-generation thin-film solar undertaken by Access Economics, provides deployed the first of several solar resource cells in Katsugari. a compelling economic case for the imple- measuring stations as part of a planned ■ Vestas Wind Systems A/S, has opened its mentation of a gross national feed-in-tariff instrumentation network throughout the regional R&D hub for Asia at Fusionopolis, (FiT) in Australia. United States. The stations located across Singapore. This marks the first milestone ■ The first commercial aviation test flight Arizona are part of NREL’s Solar Resource and of the company‘s 10-year plan to invest up powered by the second-generation biofuel Meteorological Assessment Project (SOLRMAP) to US$500 million in Singapore to advance jatropha has been successfully completed in aiming to collect precise, long-term solar research in wind power technologies. Auckland, New Zealand. A biofuel blend of resource measurements. ■ Trina Solar has announced the develop- 50:50 jatropha and Jet A1 fuel was used to ment of a new product line fully based on power one of the Air New Zealand Boeing Upgraded Metallurgical Grade (UMG) silicon 747-400’s Rolls-Royce RB211 engines, and material. UMG is a variety of solar grade more than a dozen key performance tests Africa, Asia and polysilicon feedstock capable of delivering were undertaken in the two hour test flight. conversion rates comparable to higher grade ■ Natural Power, an international renew- the Middle East polysilicon, but at a significantly lower cost. able energy consultancy, has acquired the ■ Britain has teamed up with Masdar and Trina Solar’s UMG-based product is currently Chilean firm LatWind Eolica Latinoameri- Qatar to secure a mix of reliable and green meeting the company’s targeted conversion cana Ltda, providing Natural Power with energy supplies for the UK, which could see efficiency levels of approximately 14%. a base in Latin America to expand into hundreds of millions of pounds pumped into ■ China’s plans to reach 100 GW of installed the burgeoning renewables market there. the ‘green energy revolution’. The deals are: wind power generation capacity by 2020 According to Natural Power, wind power is a Memorandum of Understanding between are unlikely to be derailed - or even side- a relatively new resource in Latin America the UK and Abu Dhabi’s Masdar Initiative to tracked - by the current global financial so the primary focus of Natural Power Chile work on technologies such as onshore and crisis. In a new assessment, China Wind Power in the forthcoming years will be feasibility offshore wind, carbon capture and storage Markets and Strategies, 2008-2020, Emerging studies, permitting of client’s projects and (CSS), as well as solar and marine energy; Energy Research (EER) reports that despite project development.

8 renewable energy focus January/February 2009 World leader in Solar Water Heaters 30 years before the others discover the power of the sun

Thirty years of manufacturing Solar Water Heaters, means thirty years of innovating in the field, and introducing new technologies. Three decades of continuous development, combined with vast experience and extensive research, have established MEGASUN products as leaders in most world markets. #/5:8(4+8@ 5-@ MEGASUN "52(7@ %(9,7@ ,(9,78@ (7,@ 8:**,88-:22>@ 04@ :8,@ 04@ 3589@ *5:4970,8@ 5-@ 9/,@ <572+ A-753@9/,48@95@3,70*(@(4+@-753@-70*(@95@:897(20( 95@ (22@ 80(@ (4+@ :756,@ A@ 675;0+04.@ *54904:5:8@ (4+ ():4+(49@/59@<(9,7 Today HELIOAKMI not only represent highly specialized technology and the experience of thirty years, but high quality systems which meet the highest demands. The solar water heaters are offered in both closed and open circuit, in a range varying from 120 to 300 liters. #/,@-57*,+@*07*:2(9054@8>89,38@(7,@5--,7,+@-753@ 209,78@ :6@ 95@ @ 209,78@ (4+@ 9/,>@ (7,@ 5--,7,+@ (8 *5362,9,@:4098@57@8,6(7(9,2>@ Each systems consists of: +--#$ "-$-'$-- "--$-("#- #- +- $ "#- -- "- +-% "$-#- -$- $ "- "-$-" - "-$-" +- A carton box which includes all the connection accessories, the differential thermostat, the pump, the expansion pot, the antifreeze liquid, valves… etc.

489(49(4,5:8@,--0*0,4*>@*:7;,@5-@*522,*957

@"52(7@*522,*9578 2. Storage tank (boiler) @>+7(:20*@109 @=6(48054@659 @0--,7,490(2@#/,73589(9 !,4+@ @@@

INTERNATIONAL RECOGNITION

Helioakmi S.A., NEA ZOI 19300 ASPROPYRGOS, ATTIKI - GREECE Tel.: (+30) 210 55 95 624 - 210 55 95 625 - 210 55 95 626, Fax: (+30) 210 55 95 723 No 1 under the sun 49,74,9@<<</,205(130.7@?@,3(02@3,.(8:4/,205(130.7 Company showcase

Argentine rainforest fungus Isofoton to electrify Guatemala and El Salvador schools produces diesel Isofotón, a Spain, Madrid-based solar technology funds from EUROPEAID, and this money will help company, has won the tender for the rural deploy 600 PV electricity generation systems (or electrification of 165 rural schools in Guatemala hybrids such as PV-wind energy), in rural areas of and El Salvador, which will permit access to Central and South America. Each school in the education for 10,000 people. project will have an isolated system of 1.19 kW. The tender forms part of the Eurosolar project, a Specifically, the Isofotón project will provide regional EU programme in developmental aid electrification of 117 colleges in Guatemala and that focuses on the most disadvantaged zones 48 in El Salvador, with an estimated investment of in South America. Financing will be effected via more than €5 million between both countries.

Researchers at Montana State University (MSU) have isolated a fungus that produces a new kind of diesel fuel. According to Gary Strobel, professor of plant sciences at MSU, the discovery may offer an alternative to fossil fuels. The find is even bigger, he said, than his 1993 discovery of fungus that contained the anticancer drug taxol. Strobel found the diesel-producing fungus in a Patagonia rainforest in Argentina in 2002. He discovered that the fungus, called Gliocladium roseum, produced gases. Further testing showed that the fungus – under limited oxygen – produced a number of compounds normally associated with diesel fuel from crude oil. “These are the first organisms that have been found that make many of the ingredients of diesel,” Strobel said. Described as myco-diesel, it could be an alternative to ethanol, he maintains. Further research is to be conducted by MSU’s College of Engineering and researchers at Yale University, including Strobel’s son, Scott, chairman of molecular biophysics and biochemistry at Yale. npower and RLtec set to roll out Solar plant connects to Spanish grid smart fridges Germany’s Concentrix Solar GmbH – together Concentrix’s FLATCON uses Fresnel lenses, Abengoa Solar London-based RLtec, a clean technology with its partner, Spain’s – have concentrating sunlight 500 times and focusing company majority owned by Low Carbon connected a 2 MW power plant to the public onto small highly-efficient solar cells. These Accelerator, is working with npower, a leading utility grid under the (still valid) version of the Real cells convert the concentrated light directly UK energy supplier, to trial Dynamic Demand, a Decreto 661/2007, the first Spanish feed-in tariff into electrical energy. new technology that helps maintain the balance (FiT) law. Called Casaquemada, the power station is The systems are installed on grounds between supply and demand across the national located near Seville and consists of both silicon flat belonging to Abengoa. By the year 2013 electricity grid. modules and concentrator PV modules mounted total power of 300 MW is planned, which will The trial will demonstrate the potential of on tracking systems. It is claimed to be one of the supply electricity to 153,000 homes in the Dynamic Demand for reducing the UK’s carbon first combination power plants of this kind. Seville region. emissions. It will involve 300 refrigerators, is the first Hans jörg Lerchenmüller, ceo of Concentrix Solar, Fernando Celaya, PV director of Abengoa Solar, demonstration action to be approved by OFGEM, said, “Casaquemada is an important step for us to said, “the excellent results of the test trackers on the UK regulator, under CERT (Carbon Emissions show that FLATCON is a competitive technology our test fields have reinforced our decision to use Reduction Target) legislation, and will contribute and an alternative to conventional PV technology.” Concentrix technology.” towards npower’s carbon reduction obligations. Andrew Howe, ceo of RLtec, says, “appliances fitted with our Dynamic Demand technology automatically modify their power consumption in response to second-by-second changes in the balance between supply and demand on the grid – without affecting the fridge’s performance. This means that the amount of carbon emitting generating capacity used to maintain that balance can be dramatically reduced.” Howe claims that the technology has the potential to create a virtual power station and, if widely used in the UK, could save two million tonnes of CO2 per year for example. Dr Stephen Mahon, chief investment officer at Low Carbon Accelerator, adds, “the global market for demand response products is estimated at approximately US$15 billion per annum, and last year the National Grid spent £770 million on balancing services in the UK alone. We believe large scale roll out of RLtec’s technology would enable electricity companies to make optimal use of existing assets and reduce the need for new power generation.”

10 renewable energy focus January/February 2009 Company showcase

London’s hybrid bus fleet expands Transport for London (TfL) has unveiled a range of new, single and double deck, eco-friendly hybrid buses – the first stage in a major expansion of London’s hybrid bus fleet. The number of hybrids is expected to more than quadruple to 56 buses shortly, making London home to the UK’s largest hybrid bus fleet. A further 300 hybrids will be in operation by 2011. Boris Johnson, Mayor of London, said, “a wonderful alliance of fuel efficiency and fume deficiency makes hybrid engines the way to go for buses in our city.” By 2012, TfL expects all new buses joining the fleet to be hybrid. At a rate of 500 buses a year, it is likely to be the largest roll out of hybrid buses in Europe. Hybrid buses feature a combination of a conventional engine and an electric motor, using less fuel and emitting fewer pollutants. They are said to reduce

CO2 emissions by up to 40%. Manufacturers include Alexander Dennis, Volvo, Optare and Wrightbus. All the new hybrid buses can be recognised by the green leaf motif over their traditional red livery.

Plutonic and GE submit bids for Canadian Hydro Vancouver-based Plutonic Power Corporation has joined with GE Energy Financial Services, a unit of GE, in submitting two bids for hydroelectric power projects costing more than C$4 billion. These would be Canada’s largest single private sector hydroelectric generation investments to date. The submissions to BC Hydro’s 2008 Clean Power Call will facilitate the development of approximately 1,200 MW of clean, run-of-river hydroelectric capacity, enough to power 330,000 homes, in the Toba and Bute Inlets along BC’s southwest coast, where GE and Plutonic are already building a 196 MW hydroelectric project. Donald McInnes, vice-chair and ceo of Plutonic, said, “this submission is the culmination of four years of planning, engineering, consultation, permitting and licensing. We are grateful to our First Nations partners, and the cities of Powell River and Campbell River, for supporting our bids, reﬂecting broad public endorsement. These projects will provide long-term economic and social beneﬁts to these First Nations and their communities, in addition to providing BC Hydro with clean electricity.” The projects will expand GE Energy Financial Services’ US$4 billion portfolio of renewable energy investments worldwide.

HRH Prince Andrew shows support for marine energy Following a meeting with Cornwall-based wave energy producer Orecon, HRH Prince Andrew has indicated he will tackle the Government on the tricky issue of marine energy pricing. His presence adds heavyweight support to the marine lobby. The lunch meeting was organised by the UK’s South West Regional Development Agency. Regarding Prince Andrew, Orecon ceo David Crisp said, “I was hugely impressed by both his knowledge and his extremely incisive questions. His experience in the Royal Navy clearly helps him appreciate the marine challenges we are overcoming.” The Prince is the UK’s Special Representative for International trade and Investment. Crisp estimates the UK’s capital equipment market at more than £20bn, based on Carbon Trust projections. “Wave energy can provide significant numbers of jobs and economic benefit in areas such as Cornwall and the South West,” he maintains. Orecon says will deploy its first 1.5MW buoy off the UK coast in summer 2010.

renewable energy focus January/February 2009 11 Company showcase

OWEL’s Grampus gains momentum UK, Cornwall-based Offshore Wave Energy (OWEL), in association with Basingstoke, Hampshire-based IT Power Ltd, has further developed its innovative wave energy converter, Grampus. New research into the geometric configuration of the Grampus will focus on optimising its performance and investigating its structural loading and mooring requirements. The name Grampus Griseus – or “Risso’s Dolphin” – was historically used to describe the Orca, the largest species in the dolphin family. The specific name Griseus refers to the mottled grey colour of the dolphin’s body. The SWRDA-supported project will run in parallel with a longer-term physical and mathematical modelling research programme at the Department of Engineering, University of Southampton. In addition to the internal configuration of the device, the research will also consider mooring, survivability and fatigue through a hydrodynamics programme involving comprehensive CFD – computational fluid dynamics – modelling and tank tests in a selected wave basin.

FedEx Express to double solar capacity with new hub

FedEx Express, a subsidiary of FedEx Corp., The hub is slated for completion in 2010 and is the world’s largest express transportation expected to employ 450 people. company, has broken ground on a new With a 1.4 MW solar PV power system, hub at the Cologne/Bonn airport, the site generating approximately 1.3 GW hours of of the company’s new Central and Eastern electricity per year – equivalent to the annual European gateway. consumption of 370 households – the new hub The state-of-the-art facility will be the largest will nearly double the amount of electricity FedEx Express gateway in Germany. FedEx currently generates from solar power. It will also be the first solar-powered hub for The PV panels, ﬁtted to the roof of the new ramp FedEx outside of the USA, and the company’s and sort facilities, will cover a total surface area largest solar-powered hub worldwide. of 16,000 m2.

Atlantis signs tidal agreement with CLP Singapore-based Atlantis Resources Corporation has signed a Memorandum of Understanding with Hong Kong-based CLP Group, formerly China Light and Power. According to Atlantis, this is the world’s largest tidal energy generation agreement to date, and will, with other agreements, increase its electricity generating project pipeline to more than 800MW. Under the agreement, Atlantis plans to collaborate with CLP to develop commercial-scale tidal current renewable energy generation projects across the Asia-Pacific. Sites under investigation span Asia- Pacific, Australia, the UK and North America. Timothy Cornelius, ceo of Atlantis, says, “this agreement has the potential to be the largest ever cooperation of its kind by applying the tidal current technology and deployment expertise of Atlantis with the international network and project development expertise of CLP, one of the region’s largest electricity investor-operators.” Atlantis successfully completed trials of its Solon tidal current turbine in September 2008 (see image) and has previously conducted many successful trials of its Nereus family of shallow water turbines. The commercial launch of a 2MW Solon turbine is expected in summer 2009. Joseph Jacobelli, group director, Carbon Ventures, CLP, says, “through the MoU with Atlantis, CLP is able to explore opportunities to further expand our renewable energy portfolio to include tidal energy, in addition to our already diversified sources of wind, hydro, biomass, solar and geothermal.”

12 renewable energy focus January/February 2009 Company showcase

SolarWorld provides first solar power for the Vatican Ambient’s smart grid attracts Bonn-based SolarWorld AG has completed the The plant was blended into the historical ensemble new investment Vatican’s first solar power plant next to St. Peter’s of Vatican City with a great deal of technical Ambient Cathedral – as a gift to the Pope. Almost 2,400 solar and architectural effort. The solar modules were Massachusetts smart grid firm Corporation modules are generating electricity on the roof of manufactured at SolarWorld’s facility in Freiberg/ has raised US$8 million from an the Papal audience hall. Frank H. Asbeck, chairman Saxony, while the inverters were donated by SMA existing investor Vicis’ Capital Master Fund, which and ceo of SolarWorld, says: “This solar plant is Solar Technology, and the grid connection was raises Vicis’ stake to 65%.This reflects a total Vicis designed to send out a visible signal for climate- planned by Italian company Tecno Spot. investment of US$23.5 million. friendly energy supply and the preservation of Since becoming Pope, Benedict XVI has promoted John J. Joyce, president and ceo of Ambient, says, creation.” the causes of environmental and resource “we are at a defining moment, both as a company The new plant has a peak total output of protection. In fact, the idea of a solar plant in the and as a nation. The incoming Administration in 221.59 kW, generating some 300,000 kWhours Vatican dates back to 2002, as the late Pope John Washington has stated that the new clean energy of electricity. Paul II had also expressed interest in solar cells. economy is a top priority. Along with our partners and the continued support of Vicis, we are enabling energy efficiencies and technologies that will help the country drive towards energy independence.” Ambient’s technology consists of a network of data-carrying cables overlaid on medium- and low-voltage segments of the transmission grid. The network allows utilities to monitor energy use in real-time at all points on the grid, and provide customers with time-based pricing to manage demand more effectively. Ambient NMS, the latest version of the company’s network management system, is now in demonstration phase, alongside the X2000 communications node. Ambient NMS manages a flexible hybrid communications platform created by Ambient Smart Grid, which provides a single platform for multiple applications. In 2006, Ambient signed a US$4 million deal with Midwestern utility Duke Energy to bring Ambient technology to 6,500 of Duke’s customers. In April 2008, Ambient received a follow-up order from Duke worth US$10.7 million. WAsP 9.0

The industry-standard Wind Atlas Analysis and Application Program for Windows 2000, XP and Vista. More than 2500 users in 100+ countries have used WAsP for: x Wind farm production x Wind farm efficiency x Micro-siting of wind turbines x Power production calculations x Wind resource mapping x Wind climate estimation x Wind atlas generation x Wind data analysis & display x Map digitisation & editing x Power & thrust curve editing

Please visit www.wasp.dk :$V3KLJKOLJKWV1HVWHGZLQGIDUPVUHIHUHQFHVLWHLQZLQGIDUPZLQG IDUPSRZHUFXUYHVSDWLDOLPDJHXQGHUOD\UHVRXUFHJULGPDVNLQJUHVRXUFH for more information and details JULGSHUIRUPDQFHLPSURYHPHQWVJULGVRI'5,;YDOXHVREVWDFOHHIIHFWVLQ of ordering, upgrading, training UHVRXUFHJULGFDOFXODWLRQVDQQRWDWLRQVLQZRUNVSDFHHQKDQFHG0DS(GLWRU courses, download and support, with complete roughness map consistenF\FKHFNVQHZ&OLPDWH$QDO\VWWRRO certified WAsP users etc.

5LV¡'78:LQG(QHUJ\'LYLVLRQ5RVNLOGH'HQPDUN3KRQHZDVS#ULVRHGN

renewable energy focus January/February 2009 13 News/Roundup

EU renewables in short Landmark agreement on renewables, ■ In March 2007 the EU Heads of State but EU climate change package agreed that Europe would provide for 20% of its energy consumption from renewable energy by 2020. Since then, underwhelms Member States have been working towards a final deal that amongst other things tells all Member States how much they need to contribute towards this target (burden sharing); ■ All burden sharing targets for Member States are set in stone and can’t be lowered at a later date. For example the Italians had recently called for a review clause in 2014, after which time targets could be re-evaluated. The review clause is still there, but doesn’t have any impact on future targets, rather will “serve to improve, if necessary, the efficiency of cooperation mechanisms”; ■ The political agreement allows for cooperation mechanisms to allow Member States to: run joint projects with one or more Member States on green electricity production, heating or cooling; transfer renewable energy The renewables industry breathed a sigh of relief survived. Many of the potential sticking points ‘statistically’ between each other; join or as EU Heads of State left the renewables directive were also resolved successfully. largely untouched in Brussels, but other parts of partly coordinate their national support On renewables trade, for example, Member the EU’s package that are supposed to deal with schemes. The compromise also adds the States will be able to decide themselves whether climate change - namely carbon trading or ‘cap possibility of counting green electricity (and to what extent) they will engage with other and trade’ - were not be so lucky. consumed in a Member State, but Member States, rather than have mandatory produced by newly-constructed joint While the headline 20% reduction in greenhouse trading forced upon them, something that could projects with third countries; gases by 2020 was always considered untouch- have endangered national support schemes. On ■ The informal compromise backs able, the cost of achieving this led to fierce nego- the thorny issue of biofuels a compromise of the target of at least 10% share of tiation and self-interest from Eastern European sorts has also been thrashed out, sources say. renewable energies in the transport countries such as Poland, not to mention the The 10% transport target has been retained, sector by 2020, but there are some huge industrial lobby in Europe. And in a stun- but this will include cars and trains running on important amendments: ‘second- ning u-turn from earlier versions of the Bill, indus- electricity (electric cars count 2.5 times towards generation’ biofuels produced from trial sectors such as cement, chemicals and steel the target due to increased efficiency). The Euro- waste, residues, or non-food cellulosic will now receive free carbon emission permits at pean Commission is to report within two years and ligno-cellulosic biomass will be least up to 2020, instead of having to buy them on the impact on land use of biofuels and on double credited towards the 10% under an auction scheme, as previously planned. their ‘sustainability.’ target; renewable electricity for trains second EU Strategic Energy Review will be counted only once; renewable The concession represented a victory for And in its electricity consumed by electric cars Germany, Europe’s largest manufacturing nation. the European Commission proposed a wide- will be considered 2.5 times its input; It means that revenues from the EU’s auction ranging energy package, which gives a new to be counted, biofuels must save at are now expected to be closer to €30 billion as boost to energy security in Europe: least 35% of greenhouse gas emissions apposed to €50bn by 2020. The concession will ■ It puts forward a new strategy to build up compared to fossil fuels; from 2017 also minimise the incentive for cleaner technol- energy solidarity among Member States, and greenhouse gas emission savings of ogies, give a huge windfall to recipients of the existing installations must be at least free permits, and punish companies that have a new policy on energy networks to stimu- 50%, those of new installations at already invested in clean technologies, many late investment in more efficient, low-carbon least 60%. The Commission says it will experts argue. In addition, for central and eastern energy networks; develop a methodology to measure European countries such as Poland that are ■ It proposes an Energy Security and Solidarity the greenhouse gas emissions caused burdened with highly-polluting power sectors Action Plan to secure sustainable energy by indirect land use changes i.e. when from the Communist era, a deal was struck that supplies in the EU, and looks at the challenges will ease the financial pain of switching to a low- crops for biofuels production are that Europe will face between 2020 and 2050; carbon economy. grown in areas which have previously ■ It adopts a package of energy efficiency been used to grow a food crop, and When it comes to the renewables directive, proposals aiming to make energy savings in this food crop production then moves however, the news is far better. The main 20% key areas, such as reinforcing energy effi- to other areas which were not in use by 2020 target is still in place, and all of the orig- ciency legislation on buildings and energy- before (e.g. existing forests). inal Member States’ burden sharing targets have using products.

14 renewable energy focus January/February 2009 le b la ai ! v ow A n

Develop and expand your environmental energy technology business

in the country’s most environmentally advanced technology centre

Flexible, serviced office, laboratory and workshop units available now

The new Advanced Manufacturing Park Technology Centre Your business will also benefit from a unique package of on the Rotherham-Sheffield border provides the ideal specialist advice and services, including: location to develop your environmental energy technology business more effectively and quickly. 7 Commercialisation of environmental energy technologies The energy wing will enable you to develop your 7 8 technologies in an iconic, carbon-neutral building, businesses powered by Europe's largest capacity hydrogen mini-grid system. 7 Access to potential finance and investment networks 7 1

For further information: The AMP is a Yorkshire Forward Part financed by the European project managed by Union. European Regional +44 (0) 1709 766 457 Renaissance South Yorkshire Development Fund [email protected] www.attheamp.com News/Roundup

NEF: Clean energy shares on the up after 61% battering in 2008? Clean energy shares have been benefiting from In addition, it should be noted that the index an ‘Obama Bounce’, surging from their lows in had experienced an extraordinary run-up during November last year, according to analyst New the last few years, particularly in 2007, when it Energy Finance. soared by 58%, setting it up for an almost inevitable correction. The WilderHill New Energy Global Innovation Index, which tracks the performance of 88 clean energy Solar in the corner stocks worldwide, slumped over 70% from its value at the start of 2008 to its low in November. Solar was the star of 2007 but the dunce of Since then, however, it has recovered by over 45% 2008, according to NEF. Solar shares fell 75% as investors take heart from President Obama’s on average last year as investors took a more apparent commitment to the sector. cautious view of valuations and worried about the likelihood of falling prices ahead in every- The NEX index started last year at 455.19 and, thing from polysilicon to modules. despite the worsening conditions in the financial markets, defied gravity for the first three quar- The biofuels and biomass sector, which ters of 2008, trading mainly in the 350 to 450 performed poorly in 2007, had another bad year range. The final quarter of 2008, however, saw it in 2008 with its share prices falling on average collapse, touching an intra-day low of 132.96 in by 68% as high feedstock prices and the credit late November. As of 13 January 2009, it was up crunch inflicted double damage. at 175.34. Wind, the largest sector of clean energy, saw The drop in clean energy share prices was share prices fall 56%, mainly because of fears of a steeper than that for most non-specialist stock weaker project development trend and therefore Which were the best and worst performing clean energy indices. The NEX’s fall compared with a 38.5% lower turbine prices for manufacturers. sectors in 2008? setback for the US S&P 500 index in 2008, a 31% The most resilient sector by far was power fall for London’s FTSE100 index, a 44% retreat for storage, which enjoyed an average 6% share the Dow Jones Eurostoxx 50, and a 41% fall “The growth prospects for clean energy invest- price gain as battery makers caught the imagi- for the US Nasdaq Composite. ment remain exciting. Worries about climate nation of investors. change and energy security are still on the There were three reasons why the sector was hit No fewer than 84 of the NEX’s 88 stocks lost political agenda... And Obama is not the only so hard: ground in dollar terms in 2008. leader seeing clean energy as an important ■ With oil and gas prices collapsing from their element in the programmes they are planning, July peaks, the sector was bound to suffer as Michael Liebreich, chairman and CEO of New to help stimulate economic activity,” Liebreich Energy Finance, says: “2008 was a bruising year these are counted as energy stocks; comments. ■ Investors were getting rid of stocks with for clean energy shares. There was a point when technology or execution risk, in favour of the NEX index was at a level we haven’t seen Figures for the NEX in the fourth quarter of since September 2003 – before the ratification 2008 show that the index slipped 36%, with longer-established businesses; of the Kyoto Protocol, before Hurricane Katrina the period split between a sharp decline up ■ In an era of sharply constrained credit, inves- and President Bush’s statement that the US was to the low of 21 November and then a signifi- tors penalised companies with high capital ‘addicted’ to oil, before the publication of the cant rally to 31 December. Among the sectors requirements, even the more established, Stern Review, before the premiere of The Incon- on the index, solar stocks lost an average asset-based clean energy companies, which venient Truth. That’s plainly absurd, even in the of 49% in Q4, and biofuels and biomass lost bear no technology risk, are high-growth and light of the unsustainable surge in valuations in 44%. Hydrogen and fuel cells slipped 40% therefore capital-hungry. 2006 and 2007. and wind 30%. US wind grows by nearly 8.4 GW in 2008 The US wind energy industry installed 8,358 layoffs began to hit the wind turbine manufac- power-producing capacity added in 2008, MW of new generating capacity in 2008, the turing sector. according to initial estimates. Total wind energy American Wind Energy Association (AWEA) generating capacity in the USA now stands “Our numbers are both exciting and sobering,” has reported. The outlook for 2009 is less certain, at 25,170 MW and around 85,000 people are says AWEA CEO Denise Bode. “The US wind however, due to the continuing financial crisis. energy industry’s performance in 2008 confirms employed in the wind industry today. The growth in 2008 increased the country’s that wind is an economic and job creation The top five states in terms of capacity installed total wind power generating capacity by 50% dynamo, ready to deliver on the President’s are now: and channelled an investment of around US$17 call to double renewable energy production in three years. At the same time, it is clear that the ■ Texas: 7,116 MW; billion into the economy. Wind is now one of economic and financial downturn have begun ■ the leading sources of new power generation Iowa: 2,790 MW; to take a serious toll on new wind development”. ■ in the USA alongside natural gas. At year end, California: 2,517 MW; however, financing for new projects and orders The new wind projects completed in 2008 ■ Minnesota: 1,752 MW; for turbine components slowed to a trickle and account for about 42% of the entire new ■ Washington: 1,375 MW.

16 renewable energy focus January/February 2009 News/Roundup

IEA World Energy Outlook 2008 changes tack

In something of a departure from its previous Tackling challenges Group study Renewable Energy Outlook 2030 has reports, the International Energy Agency’s come to the conclusion that phasing out the use Stabilising greenhouse gas concentration at 550 (IEA) World Energy Outlook 2008 (WEO-2008) of fossil and nuclear fuels can be accomplished ppm of CO -equivalent, which would limit the warns of dire consequences of an inadequate 2 at a manageable investment level. The study temperature increase to about 3°C, would require response to the climate crisis, and calls for a looks into the decrease in technology costs emissions to rise to no more than 33 Gt in 2030 radical retooling of the global energy system. resulting from increased production volume, as and to fall in the longer term, says the report. well as the assumed individual development of “We cannot let the financial and economic crisis The share of low-carbon energy – hydropower, the various world regions. delay the policy action that is urgently needed nuclear, biomass, other renewables and fossil- to ensure secure energy supplies and to curtail On this basis, it generates a more optimistic fuel power plants equipped with carbon capture perspective of renewable technologies than the rising emissions of greenhouse gases. We must and storage (CCS) – in the world primary energy usher in a global energy revolution by improving scenarios of the International Energy Agency’s mix would need to expand from 19% in 2006 to World Energy Outlook series has, according to the energy efficiency and increasing the deployment 26% in 2030. Energy Watch Group. of low-carbon energy,” says Nobuo Tanaka, Exec- utive Director of IEA. The scale of the challenge in limiting greenhouse The study’s main message is that renewables gas concentration to 450 ppm of CO -equivalent, 2 can be extended at much lower costs than In the WEO-2008 Reference Scenario, which which would involve a temperature rise of about many scientists assume. More than half of the assumes no new government policies, world 2°C, is much greater. World energy-related CO 2 electricity demand (54%) and 13% of the heat primary energy demand grows by 1.6% per emissions would need to drop sharply from demand in the OECD countries can be covered year on average between 2006 and 2030 – an 2020 onwards, reaching less than 26 Gt in 2030. from renewable sources by 2030, it concludes. increase of 45%. This is slower than projected last Achieving such an outcome would require even year, mainly due to the impact of the economic faster growth in the use of low-carbon energy – Stefan Gsänger, World Wind Energy Asso- slowdown, prospects for higher energy prices to account for 36% of global primary energy mix ciation (WWEA) Secretary General, comments: and some new policy initiatives. Demand for by 2030, according to the report. “The Renewable Energy Outlook 2030 unveils oil and coal will continue to rise, but modern a realistic path describing how wind energy However, IEA says these scenarios will not lower oil renewables will grow most rapidly, overtaking and other renewable energy technologies will demand: “Even in [more optimistic] Policy Scenarios, gas to become the second-largest source of develop in the coming two decades. The study OPEC production will need to be 12 mb/d higher electricity soon after 2010. shows that, based on pure economics, wind in 2030 than today.” Mr. Tanaka says. energy will deliver a lion’s share of the global According to the WEO-2008, oil will remain the Renewable Energy Outlook 2030 begs to electricity needs in the not too distant future. world’s main source of energy for many years differ We congratulate the Energy Watch Group for to come, even under the most optimistic of this analysis which is much more realistic than assumptions about the developments of alter- However, some experts are already taking many other reports and scenarios published native technology. umbrage with the IEA’s figures. The Energy Watch so far.” Robot inspects wind turbine blades A robot has been developed by Fraunhofer Institute for Factory Operation and Auto- mation IFF to inspect composite wind turbine blades in minute detail on location. The RIWEA robot is said to register any crack and delamina- tion in the material, relaying their exact positions. It also checks the bond with the central strut.

Rotor blades, have to withstand wind, inertial forces and erosion and therefore have to be inspected at regular intervals, but their often inhospitable locations – especially when it comes to offshore wind turbines – makes this task difficult. This is not a problem for the robot, which can pull itself up ropes and can climb wind turbines of any size, on- or offshore.

The inspection system included in the robot features an infrared radiator conducting heat to the surface of the rotor blade. A high-resolution thermal camera can then record the temperature pattern and thereby register ﬂaws in the material. An ultrasonic system and high resolution camera enable the robot to detect damage A robot ascends a wind energy converter to inspect its rotor blades for potential damage (image - Fraunhofer IFF). hidden to the human eye.

renewable energy focus January/February 2009 17 News/Roundup

FiT updates in Turkey and Greece projects in The purchase guarantee for power generation FiT guaranteed for 20 years will be set up, and through renewable energy could be updated the PV law introduces a tender process for PV brief by the Turkish government for ten years with systems >10 MWp. a new feed-in tariff (FiT). According to the The new FiT are guaranteed for 20 years and will proposed Bill, the purchase guarantee will be be adjusted annually for inflation (25% of last The Carbon Trust is launching the given for renewable power generation. The year’s consumer price index). A grid connection Algae Biofuels Challenge, seeking to Government would purchase the electricity agreement can be signed, however, locking the commercialise the use of algae biofuel as for an average of €0.05-€0.18/kWh. Unit prices FiT, and gaining another 18 months to finalise an alternative to fossil based oil by 2020; would be rated by the Energy Market Regu- installation. latory Authority (EPDK) and would “not to be Vattenfall has acquired the 300 MW lower than average wholesale prices of previous year in Turkish market.” Thanet Offshore Wind project for Turkish FiT: £35 million from CRC Energy Jersey Greece has also introduced a FiT for photo- Technology €/kWh first €/kWh 1 Limited. The total investment for voltaic (PV) through its new PV law. The law five years remaining completing the wind farm is in the sets a deadline for issuing permits and by the five years order of around £780 million; end of 2009, all applications that have been Wind 0.06 0.05 submitted so far (more than 3 GWp) must be Biomass 0.14 0.10 A cluster of excellence for the dealt with and approved or rejected. It also Geothermal 0.07 0.06 development of flexible organic solar abolishes the unofficial cap of 0.8 GWp that Hydro 0.05 0.05 cells and modules with a 10% increase was set by previous legislation. A separate in efficiency, will receive almost programme for rooftop PV with a different Sun 0.18 0.18 €2 million over four years from the German Federal Ministry of Education New Greek FiT for PV (€/MWh): and Research; Mainland Grid Autonomous island grids >100 ≤100 >100 ≤100 EDF Energies Nouvelles has officially kWp kWp kWp kWp opened the 7 MWp La Narbonnaise 2009 February 400.00 450.00 450.00 500.00 photovoltaic (PV) solar power plant in 2009 August 400.00 450.00 450.00 500.00 the Aude region of France, said to be the largest solar power plant currently 2010 February 400.00 450.00 450.00 500.00 operating in mainland France. The solar 2010 August 392.04 441.05 441.05 490.05 farm has 95,000 thin-film modules 2011 February 372.83 419.43 419.43 466.03 supplied by First Solar; 2011 August 351.01 394.88 394.88 438.76 2012 February 333.81 375.53 375.53 417.26 RWE Innogy plans a 960 MW offshore 2012 August 314.27 353.56 353.56 392.84 wind farm off the German coast. It is 2013 February 298.38 336.23 336.23 373.59 to be built 40 km north of the North 2013 August 281.38 316.55 316.55 351.72 Sea island of Juist, with an area of 2014 February 268.94 302.56 302.56 336.18 around 150 km2 and water depths of 2014 August 260.97 293.59 293.59 326.22 26-34 m. The windfarm is expected to Year ‘n’ from 2105 1.3* 1.4* 1.4* 1.5* be completed in 2015, representing a onwards SMCn-1 SMCn-1 SMCn-1 SMCn-1 total investment of around €2.8 billion. *SMC = System Marginal Cost Hemlock and Dow Corning invest up to US$3bn in polysilicon production Hemlock Semiconductor will invest up to US$3.0 much as US$3.0bn in investments to support the site will have the capacity to manufacture billion to expand polycrystalline silicon (poly- fast-growing solar industry. Construction of both approximately 10,000 tonnes of polysilicon, silicon) production. The Hemlock Semiconductor the Michigan expansion and the new Tennessee with the ability to expand production up to group includes two Dow Corning Corporation site will begin immediately. 21,000 tonnes. joint ventures, Hemlock Semiconductor Corpora- To execute the Hemlock Semiconductor group Most of the polysilicon produced by the new tion and Hemlock Semiconductor LLC. investment, the company’s shareholders formed facilities will be consumed by firms in the solar The expansion includes an initial investment Hemlock Semiconductor LLC, a new joint venture industry; however, both sites will have the capa- of US$1.2bn to build a new site in Clarksville, (JV) that will manage the Tennessee site. Hemlock bility to manufacture ultra-pure silicon for the Semiconductor Corporation will continue to Tennessee, and up to US$1bn to expand current electronics industry as well as solar-grade mate- manage the company’s existing Michigan site. operations in Hemlock, Michigan. Combined, rial. In solar applications, polycrystalline silicon the new Clarksville facility and the expanded Hemlock Semiconductor LLC’s new production is the cornerstone material used to produce Hemlock operations may add up to 34,000 facility will be constructed at the Commerce solar cells that harvest renewable energy from tonnes of polysilicon capacity and ultimately as Park site in Clarksville, Tennessee. Initially, this sunlight.

18 renewable energy focus January/February 2009 News/Roundup

Renewables in Asia – a roundup Bangladesh government approves Renewable Energy Policy The Bangladesh Government has approved the landmark Renewable Thailand’s Energy Ministry has raised its targets for renewable energy use Energy Policy 2008, encouraging investment in electricity generation from to 10% of total national energy consumption by 2011 from 8% in line with renewables and for reducing dependence on traditional sources of energy. the Government’s push to encourage growth in renewable energy sources in the country. Once the renewable energy target is met, energy costs Under the policy, an independent institution - Sustainable Energy could be cut by US$4.4 billion to US$4.5 billion in that year. Development Agency (SEDA) - will be established under the Companies Act 1994, as a focal point for sustainable energy development and Electricity and heating power generation are gradually being replaced promotion, the policy maintained. by biomass, biogas, solar cells, wind power, mini-hydro and waste, which now represent 4% of the total, almost double the renewable energy use As per provision of the policy, both government and private investors in of last year. renewable energy projects will get relief from corporate income tax for 15 years, and the electricity generated could be purchased by power entities The Thai Government foresees ethanol demand in 2011 to rise to through mutual agreement. 2.4 million litres a day from 900,000 litres now, while biodiesel will be three million litres, up from 1.3 million litres. It has been predicted that 5% of electricity demand would be met by 2015 through renewables, and 10% by 2020.

Indonesia will use biofuel as alternative energy The Bangladesh Energy Regulatory Commission (BERC) will approve the energy tariff as per the provision of the BERC Act 2003 if the capacity of The Indonesia Government plans to use crude palm oil (CPO) and other renewable energy project is 1 MW or more. A network of micro-credit biomass fuel as an alternative energy source as the fuel shortage has hit support system will be established, especially in rural and remote areas, to the country. Indonesia is the second largest CPO producer in the world. provide financial support for purchase of renewable energy equipment. Together with Malaysia, it controls 85% of the global CPO production. Last year, there was a total of 4.1 million hectares of oil palm plantations in Bangladesh’s newly-elected Prime Minister Sheikh Hasina has also asked the country. energy ministry officials to push for comprehensive development of the energy and power sector by tapping the potential of renewable energy. The PM has announced waivers on taxes on solar panel and other Rice husk gasifiers to foster rural development in Burma renewable energy equipment to encourage mass use of clean energy in Rice husk power plants have the potential to reduce Burma’s dependence line with the Renewable Energy Policy approved by the previous interim on oil – at least to some degree – but their major selling point could be Caretaker Government. that they enable electricity supply in rural areas and foster development. Bangladesh currently has an electricity shortfall of 500 MW. Over 300,000 In 2007, a 50 kW rice husk gasifier was installed in Tagoondaing Village in households already use solar energy equivalent to 15 MW, mainly in the Yangon Division. The gasifier now provides electricity for 304 houses in coastal south-western region. two villages, Tagoondaing and Alesu. Azam Mahmood, Asia correspondent

IRENA greeted as milestone for renewables The International Renewable Energy Agency focus exclusively on the issue of renewable In June 2009 the Preparatory Commission will (IRENA) has officially been founded in Bonn, energies. Its aim is to close the gap between decide on the location of the Agency’s seat Germany. IRENA is a milestone on the road the enormous potential of renewables, and and elect the first Director-General. The IRENA towards a future-oriented energy supply. More their relatively low market share in energy founding process was led by the German Federal than 120 government delegations from across consumption. Environment Ministry and the Federal Develop- the world attended the conference and a total of ment Ministry, in close cooperation with the The main work of IRENA will be to advise its 75 nations representing a broad cross-section of Federal Foreign Office. members on creating the right frameworks, developing and industrialised countries, signed building capacity, and improving financing The American Council on Renewable Energy the Agency’s statute on 26 January 2009. and transfer of technology and know-how for (ACORE) has urged the new US Administration IRENA is the first international organisation to renewable energies. to join IRENA.

California retailers must have 33% RE by 2020

Californian Governor Arnold Schwarzenegger has new goal, a substantial increase in the develop- sion Initiative will identify renewable energy signed Executive Order S-14-08, revising Califor- ment of wind, solar, geothermal, and other ‘RPS zones that can be developed as such with nia’s existing Renewable Portfolio Standard (RPS) eligible’ energy projects will be needed. little environmental impact; upward to require all retail sellers of electricity to The order seeks to accelerate such develop- ■ The California Energy Commission (CEC) serve 33% of their load from renewable energy ment by streamlining the siting, permitting, and together with the California Department of sources by 2020. procurement processes for renewable energy Fish and Game (DFG) will collaborate to generation facilities. The existing RPS requires retail sellers to supply expedite the review, permitting, and licensing 20% of their total electrical load from renewable To this end, S-14-08 issues two directives: process for proposed RPS-eligible renewable energy sources by 2010. In order to meet the ■ the existing Renewable Energy Transmis- energy projects.

renewable energy focus January/February 2009 19 President’s corner

I recently read a prediction that in ZFBSTPGWFIJDMFTQSPEVDFE BSFMJLFMZUPCFFMFDUSJD

International Solar Energy Society (ISES) A global alliance with a vision: rapid transition to a renew- Is the PEV/PHEV able energy world Purpose: t &ODPVSBHFUIFVTFBOEBDDFQUBODFPGSFOFXBCMF FOFSHZ 3& UFDIOPMPHJFT t 1SPNPUFEFWFMPQNFOUBOEBDDFTTUP3&UFDIOPMPHJFT HMPCBMMZ transition underway? t 3FBMJTFBHMPCBMDPNNVOJUZCZGPTUFSJOH $PPQFSBUJPOCFUXFFONFNCFST &YDIBOHFPGJEFBTBOEUFDIOPMPHZ t $SFBUFBOEEJTUSJCVUFMJUFSBUVSFQVCMJDBUJPOT 'BDJMJUBUFBOJOGPSNBUJPOFYDIBOHF 5SBOTGFSLOPXIPX One of the industries that has been hit hard by the global ﬁnancial crisis is the t 0õFSNFFUJOHPQQPSUVOJUJFT Bring together industry, research, political decision car industry. The crisis, combined with uncertainties about the future price and NBLFSTJOTVQQPSUPGSFOFXBCMFFOFSHZ availability of oil, has meant that many of the large car manufacturers are consid- Member Structure: ering seriously ‘green’ car options including plug in electric (PEV) and hybrid Individual: Regular, Senior, Student electric vehicles (PHEV). In fact I recently read a prediction that in 7 years 30% 4JMWFS ZFBST (PME MJGFUJNF of vehicles produced are likely to be electric. This provides quite an opportu- Corporate: $PNQBOZ 4JMWFS$PNQBOZ ZFBST nity for signiﬁcant greenhouse gas reductions, especially when electricity supply *OTUJUVUJPO 4JMWFS*OTUJUVUJPO ZFBST 4NBMM$PNQBOZ VQUPTUBõNFNCFST systems have high penetrations of renewables. 4JMWFS4NBMM$PNQBOZ ZFBST

Services: Two of the main criticisms for EV use are insufficient range and lack of fuelling t 4PMBS&OFSHZ+PVSOBM3FOFXBCMF&OFSHZ'PDVT )JHIRVBMJUZQFSJPEJDBMT stations. Neither are valid restrictions. With a current range of between 100 and t 8PSLTIPQT DPOGFSFODFT TFNJOBST &YDIBOHFPGJEFBT FEVDBUJPO 200km, this is well within the distance travelled by most daily commuters. And t 1SPKFDUTBOEJOJUJBUJWFT with many homes having two cars, the second one can always be the one used for %FWFMPQNFOUBOEBQQMJDBUJPOPG3&TZTUFNT longer distance and genuine off-road travel. Also, with many PEVs a single house- Contact details: *4&4*OUFSOBUJPOBM)FBERVBSUFST hold supply is all that is needed to recharge cars overnight and new developments, 7JMMB5BOOIFJN 8JFTFOUBMTUS for example using supercapacitors to reduce charge times, look very promising. 79115 Freiburg (FSNBOZ Tel: +49 761 459060 'BY What I think is exciting are the vehicle-to-grid (V2G) possibilities of EVs – that &.BJMIR!JTFTPSH is the option of delivering power from the vehicle to the grid as well as taking 8FCIUUQXXXJTFTPSH power from the grid for charging. This gives PEV and PHEV owners the option to Executive Committee 2008–2009: 1SFTJEFOU.POJDB0MJQIBOU park at special solar parking stations during the day on the understanding that 7JDF1SFTJEFOUT .FNCFSTIJQ"õBJST1SPG+BO0MPG%BMFOCÊDL they can deliver, on signal from a utility, power to the grid during peak periods 4DJFOUJmDBOE5FDIOJDBM"õBJST%S%BWJE43FOOÏ 1VCMJD"õBJST.BIBMBUI)BMQFSJO – of course leaving enough power to get home. Alternatively, the cars could be *OEVTUSJFT)VBOH.JOH 4FDSFUBSZ%S&EVBSEP"3JODØO.KÓB used to run, say, home air conditioners during peak periods. 5SFBTVSFS5PSCFO&TCFOTFO &YFDVUJWF%JSFDUPS$ISJTUJOF)PSOTUFJO Just recently I went to the ISES Regional Latin-American Congress in Florianopolis, ISES National Sections .PSFJOGPSNBUJPOBOEDPOUBDUEFUBJMTGPS*4&4/BUJPOBM Brazil. In the exhibition there was a PEV being developed by Itaipu, the world’s 4FDUJPOTDBOCFGPVOEBUIUUQXXXJTFTPSHoVOEFS $POUBDUTo/BUJPOBM4FDUJPOT largest hydropower utility (14,000 MW of installed capacity.) Itaipu sees a good "SHFOUJOB "VTUSJB "VTUSBMJB/FX;FBMBOE "SBC4FDUJPO #FMHJVN #VMHBSJB $BOBEB $IJOB $PTUB3JDB $SPBUJB potential market for PEVs. The PEVs will provide the company with fleet vehicles $ZQSVT $[FDI3FQVCMJD %FONBSL &HZQU 4PVUI1BDJmD 'JKJ 'JOMBOE 'SBODF (FPSHJB (FSNBOZ (IBOB (SFFDF and a mechanism for peak lopping. 50–100 cars (depending on battery capacity) )VOHBSZ *OEJB *TSBFM *UBMZ +BQBO 4PVUI,PSFB .BMBZTJB are needed per MW of load reduction. .FYJDP /FQBM /FUIFSMBOET /PSXBZ 1BLJTUBO 1IJMJQQJOFT 1PMBOE 1PSUVHBM 3PNBOJB 3VTTJB 4MPWFOJB 4PVUI"GSJDB 4QBJO 4XFEFO 4XJU[FSMBOE 5VSLFZ 6LSBJOF 6OJUFE ,JOHEPN 64" Following my visit to Brazil, I attended the ISES Regional Asia-Pacific Congress in *4&43FHJPOBM0öDFTBSF*4&4"GSJDB *4&4"TJB1BDJmD *4&4 &VSPQF BOE*4&44PVUI"NFSJDB Sydney, Australia, where the latest advances in PV and Solar Thermal technologies were discussed. Australia is noted for excellent research work in these topics but the country is traditionally not so good at commercialising the technology. So I hope we are able to capitalise on such progressive thinking. President: Monica Oliphant

20 renewable energy focus January/February 2009 inter solarNorth America Exhibition and Conference

RESERVE YOUR EXHIBITION SPACE TODAY AND SECURE

Co-located with A PLACE WITH THE INTERNATIONAL SOLAR INDUSTRY! www.intersolar.us CONNECTING SOLAR BUSINESS Wind/Operation & Maintenance

The problem with O&M

FRANK MASTIAUX, CEO OF E.ON CLIMATE AND RENEWABLES RECENTLY SAID THAT IF COMPANIES SUCH AS E.ON ARE TO REALISE THEIR PROJECT PIPELINES AND GET MW ON THE GROUND, THE WIND INDUSTRY HAS TO MOVE FROM “BOUTIQUE TO TRULY INDUSTRIAL LEVELS OF OUTPUT”. BUT AS THIS HAPPENS AT AN EVER INCREASING RATE CREDIT CRUNCH OR NO CREDIT CRUNCH, HOW CAN PROJECT DEVELOPERS AND TURBINE MANUFACTURERS ENSURE THAT THE TWIN DEMONS OF POOR TURBINE RELIABILITY AND HIGH COSTS OF O&M  BOTH WELL DOCUMENTED  DO NOT CONSPIRE TO REDUCE THE POTENTIAL SCALE OF WIND POWER?

22 renewable energy focus January/February 2009 Wind/Operation & Maintenance

Over the next few issues In a new, regular, column, Renewable Energy Focus the fault of an O&M team. If a wind turbine component is poorly engi- will look at various aspects of O&M. neered, it will make itself known very quickly to those in the wind industry.

In the first installment, Matthew Jackson and Stephen Rogers from the Arthur About the only area of design that allows field efforts to affect reliability D. Little consultancy suggest how Offshore wind can overcome its various is in the control system. Today’s wind turbine control systems can be over obstacles (see pages 24-27). stacked with complexity. The turbine controllers are over protective, complicated and not user-friendly. Such controllers make troubleshooting But first, Jack Wallace, wind turbine technical advisor with US-based Frontier difficult, especially if the wind turbine’s theory of operation is not made Pro Services, asks whether extended periods of downtime might not just be a bluntly evident. problem of faulty turbines, but rather on occasion be down to the lack of expertise – and poor attitude – of the O&M teams themselves… But if you have a specific wind turbine, or wind park, then that is what you get. That decision is a 20-50 year decision. It is final. In all probability no one Downtime and your O&M team – is going to be replacing that turbine with another design anytime soon. So, turbine availability begins at home the wind park operator needs to change his mindset from the list of problems inherent in the turbine’s design to creating a best-in-class operations With all the various and uncontrollable causes of turbine downtime that plan for keeping the turbines running. Eventually the engineering problems wind park owners and operators are all too familiar with, there remains a will be worked out, and all that will be left to fix will be up to you. frequently overlooked, entirely manageable cause of turbine downtime: the operations and maintenance (O&M) team.

The most important issue for any wind park operator is to ensure the “Wind parks that deliver superior financial turbines are available when the wind is on. As wind parks proliferate and turbine technology becomes increasingly complicated, the shortage of returns typically have well-trained, highly qualified wind energy technicians is taking a significant toll on downtime. The stress on O&M that leads to turbine downtime takes many forms. motivated O&M teams that are driven by Insufficient training, poor employee motivation, engineering problems, over-complicated and over-controlled procedures, lack of a sense of incentives crafted to ensure the blades will urgency, as well as the O&M team’s failure to apply an appropriate attention to detail. turn whenever the wind is blowing.”

The most important success factor for any wind park operator is turbine availability – when the wind is blowing, the blades must be turning. The Jack Wallace, Frontier Pro Services cost of downtime from O&M inefficiencies can be difficult to calculate. The difference is often hidden; meaning that many days of wind can hide one day of a turbine being off line. For years I drove past a wind park that always had many machines off. I assumed that the turbine had a bad design and that that was the reason However, these outages add up to significant lost revenue when averaged for such poor operations. Ten years later, and I am now running that wind over the course of a year or the lifetime of the wind park. Wind parks that park with a team of my technicians. The problem was not design. It was deliver superior financial returns typically have well-trained, highly moti- operator motivation. The operator did not try very hard. Today, that same vated O&M teams that are driven by incentives crafted to ensure the wind park is now operating in its 23rd year, and running well. blades will turn whenever the wind is blowing. Maybe the manufacturer will help you get the machines running, maybe As a wind technician and field consultant for more than 20 years, I have they won’t. Regardless, the reputation of your wind park is up to you. You heard and seen some mind-boggling and maddening things. Once a few know if you are trying or not, and so do your co-workers. Making the years ago, I was discussing a customer’s O&M challenges with him, and he machines run is priority one. Yes, it’s challenging work; but it is the work told me in all sincerity that “wind is our enemy.” That was as backward and of the O&M team. We are not talking wind turbine efficiency here. We are disheartening a thought as I could imagine! talking about reliability and run time. If you can keep them running in wind then you are doing your job. All incentives, recognition, processes So, I began to talk with him and his team further to understand what had and procedures must be in line with this fundamental objective: the wind them all so frustrated. I discovered that they were understaffed or staffed turbines must be available when the wind is on. with unqualified people, and that the O&M team’s efforts were unappreci- ated insofar as their often times extraordinary service efforts were not As far as efficiency problems go, they are engineering problems and have acknowledged or recognised in anyway. to be built in. If you find yourself with time to worry about efficiency – that is icing on the cake. The bulk of the problem, though, is ensuring the Unrecognised for their work to keep the turbines up (or down!), their turbines are running. motivation to answer middle of the night calls to reset faults was clearly waning – and wind had become the enemy. I have worked with many different types of wind turbines. The number one cause of nuisance faults causing downtime are controller issues. Once you It is true that a good portion of downtime on wind parks is related to the have the controllers working properly, then the next most common cause engineering of the wind turbine. Major component failures are usually not of downtime is technician-related.

renewable energy focus January/February 2009 23 Wind/Operation & Maintenance

Controllers for wind turbines are becoming major technical innovations. Offshore wind project update Turbines are using controllers with thousands of parameters. Any little burp causes the entire machine to shut off requiring a reset, either remotely or The UK’s Thanet offshore wind farm has been saved by Vattenfall’s an onsite reset. If it is the end of the day, windy, and a turbine is off, you £35m purchase of the project. ScottishPower had been due to need your technicians to go out and look at the machine. This is the differ- purchase the project, but pulled out late into negotiations. Onshore construction work had already begun on the project, with foundation ence between the turbine being off for 1 hour or overnight for 15 hours. installation due to start before the end of 2008. Foundations will now go in starting in February 2009, using A2Sea’s vessel Sea Jack. More and more wind park O&M teams are not accepting the responsi- Installation of the 100 Vestas V90 turbines will take place in 2010 and bility for ensuring that the turbines are running. As wind parks go main- will be performed by Marine Projects International. Commissioning stream and qualified technicians become scarce, a proud and elite on the £780m project is due by the end of 2010. Vestas is supplying profession is adopting very mainstream problems including low motiva- 100 turbines with total capacity of 300MW. tion, selfishness, lack of ambition, laziness, carelessness, “just a job” atti- The high cost of the Thanet project and other forthcoming projects is tude, all of which are very dangerous in an industry that services cause for concern. Major developers such as Centrica have previously massive machinery. expressed concern. For the UK, the falling value of the pound against the euro is exacerbating fears, as is the overall economic slowdown. The best run wind parks do not necessarily have the best machines, they There is a risk that some of the more expensive projects will be just have the best motivated technicians with incentives aligned with the postponed or cancelled. Developers may attempt to bring in new primary objective: keeping the turbines running. project partners to help share costs on the large offshore wind farms.

Supply chain constraints will be an additional factor on projects due post 2010, with an increasing number of projects competing for resources each year. “For years I drove past a wind park that Late last year, the jack-up Titan-1 was lost at sea during always had many machines off. I assumed transportation from the US to the UK. The jack-up was being moved from Pascagoula, Mississippi, to Liverpool ahead of starting an that the turbine had a bad design and 817-day contract in the North Sea. The job would have covered the installation, servicing and maintenance of wind turbines off Denmark and the UK. The first project was aiding with installation at that that was the reason for such poor the 90 MW Rhyl Flats project off north Wales. operations. Ten years later, and I am now Despite this loss, the Rhyl project is on schedule for completion in summer 2009. Other UK activity ongoing includes the 172 MW running that wind park with a team of my Gunfleet Sands project (consisting of the Round 1 and Round 2 projects combined), due for completion in autumn 2009. technicians. The problem was not design. It Installation work at Robin Rigg is well progressed, albeit behind schedule, with completion of the 180 MW site due in 2009. was operator motivation.” In Scotland, the bidding process for the Crown Estate’s separate licensing process saw 23 projects put forward from 14 companies or joint ventures, a higher response than first anticipated. It is Jack Wallace, Frontier Pro Services hoped that the first of these projects would enter construction around 2016. The actual permitting process these projects would be subject to has yet to be determined. We all hear the grumbling from technicians about poorly designed Denmark’s Horns Rev II project is well underway, with foundations machines. However, the machines you have are the machines you have. all installed and cable installation taking place at present. Turbine That’s it. It’s all you get. If you want other types of machines to work on, installation will begin in March and is to be undertaken by A2Sea. then by all means move to another wind park. But I guarantee, if turbine The project remains on schedule for completion at the end of 2009. problems make you grumble, you’ll be grumbling at any wind park. The This will be the first offshore completion in Denmark since the first best technicians accept the challenges, and just work the problems they Nysted project was built in 2003. know they have – and keep the turbines running! The other major current project off Denmark is an extension to the Nysted wind farm. The Nysted II project will see gravity base Jack Wallace Jr., Frontier Pro Services foundation installation start in February. Turbine installation and commissioning of the 207 MW project, which uses 2.3 MW Siemens Offshore wind – turbines, will take place in 2010. how can it overcome the O&M obstacles? A new 400 MW project is to be built between Djursland and the island of Anholt. The Danish Energy Authority has arranged The offshore wind market is a small but growing part of the world energy environmental assessments of the site, the cable route and also market. Total capacity reached 1GW in 2007 (around 0.01% of global energy geotechnical investigations. After an expression of interest early in capacity) and is set to increase sevenfold over the next five years. Activity is 2009, full bids are expected by summer 2010. The Danish Energy currently confined to Europe. The lack of take up in other major markets such Eon Authority want the project to come online by the end of 2012. , as the USA and China is due to the abundance of available land in these Dong and Vattenfall are expected to bid. countries, meaning that Governments have little incentive to subsidise continued on c1, page 26 offshore developments.

24 renewable energy focus January/February 2009 Wind/Operation & Maintenance

The problem year, with Vestas’ 30 turbines requiring a change of rotor bearings, at an estimated cost of €30m. Theoretically, offshore wind should be a low risk investment, in that fixed costs represent a high proportion of overall costs. This provides a level of Failures are also harder to repair because they tend to happen in stormy certainty which, combined with guaranteed tariffs, makes it particularly conditions, and are often not dealt with when they happen, but on an attractive during times of volatility. But offshore installation is roughly aggregated basis at intervals. That means it can be as long as three 50% more expensive than for onshore, and O&M costs are roughly twice months before a turbine failure is repaired. The contrast with onshore as much. reliability is dramatic, and availability levels of 97% are regularly achieved. In this regard, technical problems present the biggest potential risk to the future of the industry. Technical failure rates in offshore wind can be high As sites move further offshore, these problems are likely to get worse. compared to onshore, and offshore failures are difficult and expensive to fix. That could mean offshore developments in deepwater areas will be seen as unviable. For example, all the potential sites in the German North Sea This is underlined by an analysis of maintenance records, which shows have been allocated, but it is uncertain as to whether investment that while service teams for offshore wind farms are supposed to make will follow. two scheduled maintenance visits every year, unscheduled visits to many installations are made 20 times a year. The gearbox

Why do turbines fail? The main area of concern in the industry surrounds the gearbox. The reason for gearbox failure is currently not a matter of universal agree- The heart of the problem is that the technology being used offshore is ment. Data indicates that gearbox failures onshore are in line with generally onshore technology that has not been modified sufficiently to industry averages. Offshore, it appears that gearboxes in fact perform meet the different demands of an offshore environment. better than other parts of the turbine. The problem with offshore turbines is that conditions are more extreme, and the downtime which results The classic example of this is the disaster at the Horns Rev wind farm in from the replacement of a gearbox has a greater effect on availability 2005, following which Vestas is reported to have removed and repaired compared with, for example, the failure of a generator. The technology of 80 of its V90 models, designed for offshore use, owing to the effect of offshore gearboxes therefore needs to improve, and when it does, this will salty water and air on the generators and gearboxes, which became have a dramatic effect on availability levels (nb: in next month’s issue the corrupt after only two years. A similar procedure has been reported this O&M column will cover the Gearbox – ed).

When Measurements Matter What percentage of error can you afford?

The success of your investments can ride on the accuracy of your measurements. With 35 years of proven field experience, unmatched reliability, and exceptional measurement quality, you can trust Campbell Scientific data acquisition systems when your measurements matter.

8JOE Solar ¨ 'JOEPVUNPSF 435.753.2342 www.campbellsci.com/renewable t8JOESFTPVSDFBTTFTTNFOU t4PMBSSFTPVSDFBTTFTTNFOU t5VSCJOFQFSGPSNBODF t%JBHOPTUJDTBOEBMBSNJOH t8JOEGPSFDBTUJOH t1FSGPSNBODFNPOJUPSJOHWBMJEBUJPO t3FTFBSDIBOEEFWFMPQNFOU t3FTFBSDIBOEEFWFMPQNFOU

renewable energy focus January/February 2009 25 Wind/Operation & Maintenance

perform relatively well considering that they receive the bulk of the Marine project update torque to which the turbine is subjected. Generators are not tested as rigorously, and do not perform as well offshore. Atlantis Resources Corp., has signed a Memorandum of Understanding with the CLP Group which lays the foundation for Improved testing for gearboxes might involve breaking prototypes rather Atlantis to collaborate with CLP in the development of commercial- scale tidal current renewable energy generation projects across than subjecting them to limited loads as is common now. Suggestions for Asia-Pacific. This, together with agreements with partners in other improving the design itself include making the gear case more flexible, regions, will bring Atlantis’ total electricity generating project and possibly reducing the size of the gearbox, to two stages rather than pipeline to over 800MW. Sites under investigation span Asia-Pacific, three. Australia, the UK and North America, positioning Atlantis as a genuine pioneer in global tidal energy generation. Another solution that is not currently being considered is the possibility Atlantis recently completed trials of its Solon tidal current turbine of complete nacelle testing. Currently the first time the components work and the commercial launch of a 2MW Solon turbine is expected in together is when they are part of a live turbine. summer 2009. Last month, the company announced plans to build a tidal energy-powered data centre near Scotland’s Pentland Firth. The bottom line for technical difficulties is that they have the potential to cripple returns, and thus the risk profile of projects is increased and Aquamarine Power Ltd has appointed ABB to complete the electrical engineering design and construct the electrical their economics more dependent on generous Government support – generating system for Aquamarine’s Neptune tidal stream device. not a sustainable model for the future of an industry that aspires to be With a contract worth over £2million, ABB will also install and a key source of world renewable energy. commission the system at the European Marine Energy Centre (EMEC) in Orkney, where Aquamarine will demonstrate the first full-scale Neptune device. Marine Current Turbines Ltd (MCT) has agreed a partnership with Another solution that is not currently being Canada’s Minas Basin Pulp and Power Company Ltd (MBPP) to demonstrate and develop tidal power technology and facilities considered is the possibility of complete in Canada’s Bay of Fundy, Nova Scotia. MBPP of Hantsport, Nova Scotia is a sustainable energy and resources company. Working nacelle testing [for offshore wind turbines]. in partnership with MBPP, MCT will participate in the tidal power demonstration centre established by the Province of Nova Scotia. Currently the first time the components MBPP and MCT intend to deploy a 1.5MW tidal generator when the in-stream tidal energy centre enters full operation and is connected work together is when they are part of a to the Nova Scotia grid.

The Scottish Government has granted consent for the Siadar wave live turbine. energy project on the Scottish island of Lewis. npower renewables, a UK-subsidiary of RWE Innogy will be the operator of the planned facility with Wavegen, the Scottish subsidiary of Voith Siemens Hydro Power Generation, the technology partner for the wave What is needed? power units. Both npower renewables and Wavegen have been The change needed for the industry to secure its long-term future is for working together on the project since 2006. the technology to become more robust and reliable: Adam Westwood, Douglas-Westwood Ltd.

■ Better design of individual components (i.e. smaller, two-stage gearboxes); the drive train (smarter integration of key components) and foundations; The direct-drive system, pioneered by Enercon, and which bypasses the ■ Increased levels of R&D – not only in design, but also access and need for a gearbox, could be held up as a solution to this issue. The initial maintenance methods; higher costs would be repaid by lower maintenance costs and higher ■ More thorough certification testing so components really can with- uptime levels. Siemens Wind Power is another organisation currently stand the offshore environment. testing a Direct Drive model. Analysis from Arthur D. Little shows that testing is probably the crucial Realistically, the step-change required in the manufacturing facilities of element that will stimulate work in the other two areas. To date, testing the other main suppliers of turbines, all of whom use gearboxes, would has clearly been inadequate. Manufacturers have claimed it is possible to be too great, and we are unlikely to see the disappearance of the gearbox test onshore without the expense of offshore testing. However, there is in offshore installations, particularly considering the huge weight of the clear evidence that, while it may be possible to test individual compo- direct-drive system (up to 500 tonnes). nents onshore, running a turbine in real offshore conditions for at least a year would bring to light many key problems and save considerable Less rigorous testing is required for onshore turbine components, as they amounts of money. can be replaced with relative ease, on a ‘fire-fighting’ basis, whereas with offshore this is not feasible. For gearboxes, then, better testing will be a Such testing has already been shown possible, albeit with Government key requirement as part of – and in addition to – the development of the support. In Germany, for example, offshore testing is already taking place technology. Offshore blades are currently tested very thoroughly, and at Alpha Ventus (albeit on a partly commercial basis).

26 renewable energy focus January/February 2009 Wind/Operation & Maintenance

All this work will need to be underpinned by collaboration. To date, the This kind of collaboration is not unusual in the energy sector. In oﬀshore oil industry has been characterised by a general atmosphere of secrecy and and gas, for example, E&P companies have collaborated for years on access suspicion and, as a result, there has been fragmentation of knowledge and maintenance issues, and the results have beneﬁted the entire industry. and lack of research progress. This shows that there is a clear model to follow.

The catalyst for change will come from a shift in the balance of power Action is therefore needed from offshore wind farm owners and developers away from the wind turbine manufacturers towards bigger and more to apply pressure on turbine suppliers to ensure they invest in rigorous experienced customers. component testing and robust offshore-specific R&D; apply pressure on turbine and component manufacturers to take a long-term view and invest These customers will have the knowledge as well as the muscle to make to secure a sustainable future for the offshore wind market; and finally help specific demands for improvements in testing and development in a way is needed from Governments to free up funding for public R&D centres, and that was impossible for small wind farm owners. These higher standards projects that can act as catalysts for industry collaboration and ‘open research’. will filter all the way down the supply chain and are likely to result not only in better design, but also better type testing of components and What should particularly concentrate minds in the offshore wind industry integrated systems during the production process. is the clear message that without collaboration, the offshore wind industry will not mature or progress. At the moment, individual company research into the causes of mechanical failures or ways of improving access and maintenance may be prohibitively expensive. Collaboration can reduce those costs About the authors: significantly. In terms of testing, greater openness would facilitate the Downtime and your O&M team – turbine availability begins at home testing of integrated drive trains. Independent testing facilities – such as Jack Wallace Jr., is a wind turbine technical advisor with Frontier Pro Services the New and Renewable Energy Centre (NaREC), in Blyth, UK – should +1 951-849-3194 [email protected] continue to be used as a neutral location for such tests to be carried out Offshore wind – how can it overcome the O&M obstacles? without compromising secrecy. It is true that such shared schemes have Matthew Jackson is a business analyst in Arthur D. Little’s Energy and Utilities practice. been tried before and not succeeded, but in a changing climate these Stephen Rogers is a director in Arthur D. Little’s London office. options will need to be considered again.

Parc Chanot, Marseille, France 16 - 19 March 2009

Europe’s Largest Wind Energy Conference and Exhibition

Conference: The comprehensive four-day programme covers every key aspect of wind energy – from technical and theoretical to political and practical.

Exhibition: Over 290 exhibitors: manufacturers, component suppliers, developers, operators, utilities, consultants and fi nanciers spread over more than 9,000 m2.

Networking: The EWEC social events are specifi cally designed to combine business networking and en- joyment. They are the perfect place to make the right connections.

“Events like EWEC 2009 allow the wind industry, policy makers and journalists to be part of a valuable and positive experience that are of benefi t to all.” Andris Piebalgs, European Commissioner for Energy and EWEC 2009 speaker.

Registration and more information: www.ewec2009.info

SUPPORTING ORGANISATIONS: ORGANISER:

renewable energy focus January/February 2009 27 Steve Sawyer/GWEC A long way to COP 15

GWEC’S STEVE SAWYER TAKES STOCK OF THE ACHIEVEMENTS AND FAILURES OF COP 14 IN POZNAN AND LOOKS AT WHAT NEEDS TO BE DONE BEFORE COP 15 IN COPENHAGEN AT THE END OF THIS YEAR.

In the run up to the 1980 US presidential election, I confi dently predicted The parties also adopted something called the Poznan Strategic that the American people would never be so stupid as to elect Ronald Programme on Technology Transfer, which merely gives a name to the Reagan president. Since then, I’ve been somewhat more cautious with complicated body of work which goes under the name of “technology predictions. Nonetheless, in October 2008 I set out three conditions for transfer”. This is an obligation accepted by industrialised countries at success at the Poznan conference: the inception of the UNFCCC in 1992, but without having any clear idea of what it means, or what it implies that countries should do. This ■ that Barack Obama would be elected president of the USA; rather unusual discussion may warrant a future column of its own, but ■ that the European Union would achieve a political agreement on its for now, the Poles are happy that at least some part of this process “20/20/20” climate package before the conference started; will force us to remember that we all spent two weeks in Poznan in ■ that we would begin to see the beginning of the end of the crisis of December 2008. confi dence in the international fi nancial system. Without these conditions being met, Poznan would be a damp squib. As is often the case, the most interesting conversations were held in the corridors, bars and restaurants, and at side events, of which there were Well, unfortunately, this time I got it right. Although the general interna- many hundreds, on every imaginable topic. For the fi rst time, the wind tional euphoria surrounding Obama’s election and his early statements on energy industry was there in force. We had our own “Wind Power Works the climate issue improved the atmosphere, the EU exhibited its trade- Pavilion” near the entrance of the modern conference complex, housed mark ability to shoot itself in the foot by fi nally agreeing the climate and in what was the original building on the site. This was the venue for the energy package the day after the conference concluded, and as a result launch of the Wind Power Works campaign, an industry-wide campaign was unable to show any real leadership during the proceedings. for the 12 month period between Poznan and Copenhagen, highlighting the key role that wind power can and must play in reducing greenhouse In fact, some recalcitrant Governments cynically seized upon the disingen- gas emissions. uous antics of the European fossil fuel and energy intensive industries to delay and weaken the package and prevent its agreement in time. However, Also unveiled at the Pavilion was a photo exhibition highlighting 12 having said that, what remains is by far the most progressive and positive diff erent wind power projects in key countries around the world, each piece of “domestic” climate legislation anywhere in the world. It’s just a pity demonstrating one or more of the key reasons why wind power is the key that they couldn’t take advantage of it to further the international agenda. supply side technology for the power sector in the near future – in a carbon- And of course we’re still waiting to see the bottom of the credit mess. constrained world. For more info, see: http://www.windpowerworks.net.

Despite the fact that COP 14 was more just a marker and not a major We also hosted a number of side events and receptions on the subject of milestone at the halfway point between Bali and Copenhagen, some wind power, renewable energy, and climate change mitigation, and we things were accomplished. The Adaptation Fund was fi nally fully opera- also made the hall available for other events and meetings. tionalised, and will fi nally begin disbursing much needed funds for adaptation to climate change impacts early this year. This unique pot of money One high point of the conference was a guest appearance by United is based on a 2% fee, sliced off the value of Certifi ed Emission Reduc- Nations Environment Programme (UNEP) executive director and UN tion (CER) credits (from Clean Development Mechanism activities) when undersecretary general Achim Steiner at the Wind Power Works launch they are issued, through the UNFCCC process. It is therefore not “donor” reception. Ever a big supporter of renewable energy in general, and wind money, and comes only with strings attached which must be fully agreed power in particular, UNEP and Steiner have made support for renewa- by all the parties. This fund, though relatively small at this stage and by bles a top priority in their call for a “Global Green New Deal” to combat no means adequate to deal with the rising costs of climate change adap- the climate, energy and economic crises facing us at present. Offi cially tation, provides a new model for fi nancing the international agenda. named the Green Economy Initiative, the UN-wide eff ort led by UNEP calls for major eff orts to create green, clean jobs and sustainable economic While an attempt to broaden the levy beyond the CDM to include the growth through investment and policies designed to support clean other “fl exible mechanisms” under the Kyoto Protocol failed, this issue will energy, sustainable agriculture, reduced deforestation, sustainable cities no doubt come back in later stages of the negotiations. and the required infrastructure.

28 renewable energy focus January/February 2009 Steve Sawyer/GWEC

“The competitive economies of tomorrow will be built around clean sion of existing renewable energy and energy efficiency technologies, energy such as wind power,” Steiner said. “There are many good exam- as well as adaptation technologies. This would be a welcome redirec- ples of how wind, solar, and other renewable energy technologies are tion of the current discussion. This discussion is either conducted at – today – providing carbon free energy while creating jobs and contrib- levels of abstraction which make for meaningless generalisations, or it uting to local economic growth, but these need to be promoted more is focused on future technologies which may or may not make it out widely. UNEP is proud to support the Wind Power Works campaign as it is of the laboratory to the demonstration stage. Will these technologies perfectly aligned with our own efforts to help countries in their efforts to make it from there to commercialisation at some point in the future? move towards a greener economy.” That is the question.

With these words we march forward into an uncertain future, with the only On finance, the notion is widespread that there are somehow going to be sure thing being an increased number and increased intensity of negotia- many tens or hundreds of billions of Government funds available annually tions towards a post-2012 climate regime over the next 12 months. What for the climate. And that the USA and other Governments will descend needs to be done? The Bali Roadmap agreed a year ago requires that the into the basement of their treasuries to print lots of notes to bail out package to be agreed on in Copenhagen must have four pillars: mitiga- the financial sector. This notion has not helped to dissipate this illusion. tion, adaptation, technology and finance. However, a well-financed version of UNEP’s Green Economy Initiative could go a long way towards creating the right conditions. On mitigation, industrialised countries must put forward commitments which will form the basis of new legally binding targets under the Kyoto Some are saying that this is too much to achieve in time for Copen- Protocol track, and these commitments need to be in the range of hagen, and it is indeed a lot to do in 12 short months. But with the 25%-40% below 1990 levels if we are to heed the warnings of the IPCC. right political leadership this, and more, could be done. In the wee Negotiators have agreed that this is the appropriate range, but the only hours of 5 November 2008 I was, for the first time in decades, along bloc to have agreed anything (and they did it two weeks too late) is the with hundreds of others gathered at the Amsterdam Hilton, proud to EU, which agreed to a 20% cut by 2020, with an agreement to go to 30% be the owner of a blue passport with an American eagle on the cover. as part of a new international agreement, as well as a landmark agree- I am old enough to remember a time when the USA was a leader in ment to source 20% of its final energy from renewables by the same global environmental issues, and I think I’ve now lived long enough to date. Australia announced very disappointing targets the Monday after see that time come around again. With Carol Browner leading a strong the conference – 4% below 1990 levels (5% below 2000 levels) by 2020, team as climate czar(ina?), Steven Chu heading the Department of and President-elect Obama’s opening salvo, delivered to a gathering of Energy and John Holdren heading up the science team, Mr. Obama has western governors in the weeks running up to Poznan, was to return the demonstrated a clear break with the past and a clear commitment to US to 1990 levels by 2020. the future. Let’s just hope that the Obama administration ushers in the era of hope that we need, and that those hopes are not dashed by the This would mean an approximate 16% reduction compared with today’s time this article goes to print (so far so good! Ed). levels. This is ambitious given the recent history of the US, but nowhere near enough. Japan, Canada, and Russia, the other big players among industrialised countries, have yet to lay their cards on the table. Suffice it About the author: to say that this pillar of mitigation will need a lot of work. Steve Sawyer joined GWEC as the first secretary general on 2 April 2007. He has worked in the energy and environment field since 1978, with a particular focus on climate change and On adaptation, it will require billions to address the plight of the world’s RE since 1988. Greenpeace poorest struggling to adapt to the increasing impacts of climate change, He spent 30 years working for , primarily on a wide range of energy issues. He was the ceo of both Greenpeace USA (1986 – 1988) and Greenpeace International and other than “tithing” a global carbon market, nobody seems to have (1988 – 1993), and he served as Head of Delegation to many Kyoto Protocol negotiations on Johannesburg Earth Summit any idea where this money is to come from. climate change. He also lead delegations to the in 2002 and numerous sessions of the Commission on Sustainable Development. He is also a founding member of the REN21 Renewable Energy Policy Network and was a member of the Steering On technology, countries need to be realistic and come up with an Committee of the Renewables 2004 ministerial conference in Bonn. He has also been an expert reviewer for the IPCC’s Working Group III. agreement that works to support the rapid and widest possible diffu-

renewable energy focus January/February 2009 29 Carbon

Emissions trading: for better for worse

IN THE LAST IN HIS SERIES OF COLUMNS ON ‘CARBON’, BILL EGGERTSON LOOKS AT A NUMBER OF HICCUPS IN THE EMISSIONS TRADING SYSTEM ETS THAT MUST BE OVERCOME TO EASE THE WAY FOR RENEWABLES. Bill Eggertson

A number of recent issues have underscored The combined value of both mandatory and tion) from the People’s Republic of China. That the need for advocates of the renewable voluntary offsets is currently estimated at US$60 transaction by Essent Trading was derived energy sector to remain aware of many eclectic billion a year, and the market is expected to from a 45 MW windfarm in Fujian Province, issues in the global carbon market. continue skyrocketing as a result of the growing and is the first CDM project in China to reach number of renewable portfolio standards the Gold Standard registration phase. Emissions trading is the sale of environment around the world, the anticipation of more attributes from low-carbon technologies and it measures under the post-Kyoto framework, Over the past few issues, we have tried to is a procedure that is used to ‘penalise’ high- and the emergence of more national trading provide some insight into the potential for carbon emitters. As the energy sector is a main regimes such as the European Union Emis- renewables in the carbon market. One thing culprit behind the high levels of greenhouse sions Trading Scheme (EU ETS). The EU ETS is certain. It is important to remember that gas (GHG) pollution around the world, the was the first system off the block and recently this is a fast-evolving sector, as noted by quest for lower emissions makes it clear that connected with the UN carbon credit tracking the election in the USA (where a new Presi- wind turbines, solar panels, geothermal heat system, meaning it can be involved in Clean dent has pledged his support for a cap-and- pumps and the entire arsenal of renewable Development Mechanism (CDM) and Joint trade system, while the Western Climate energy products will become one of the key Implementation (JI) offset projects under the Initiative and Regional Greenhouse Gas Initia- sets of technology ‘silver bullets.’ To date, most UN process. tive continue to expand their presence). And of the market in offset trading has centred on the profile of carbon cap and trade will be the capture and destruction of nitrous oxides During each issue of renewable energy focus raised even higher as we move towards next

(NO2) and hydrofluorocarbon (HFC) refrigerants (2008) and finishing in this issue, this column December’s COP 15 summit in Copenhagen from industrial operations, but those options has noted the significant potential for renew- (where nations will agree on the second phase are expected to start declining soon as they able energy technologies to become a key of the Kyoto Protocol). become less accessible and as other sources commodity in the global offset market, and (notably renewables) become more wide- November 2008 noted the trade of the first It is, therefore, important to draw attention to spread and lower priced. Gold Standard CER (Certified Emission Reduc- some potential hiccups in the path forward,

30 renewable energy focus January/February 2009 Carbon

which need to be overcome if the global vision is to include renewables to the degree which Carbon market up 84% in 2008 at US$118bn it must. New Carbon Finance’s latest analysis New Carbon Finance’s analysis suggests that of 2008 trading activity confirms its Q3 credits bought directly from CDM projects – The current economic crisis has already had 2008 projections – with total transactions the primary CER market – fell by around 30% wide-reaching impacts on investment plans throughout the year worth US$118 bn, in 2008 compared to 2007 from an estimated representing 4 billion tonnes of carbon 551mt (US$7.4bn) to 381mt (US$5.8bn). This and decisions around the world, and many allowances changing hands. This level of is driven by a smaller number of carbon credits pundits have predicted a curtailment for transactions is 42% higher than in 2007, entering the UN crediting approval process renewable energies as limited capital funds are but the change in market value is twice in 2008 than in 2007. In 2007 new additions directed to conventional recovery methods. this at 84%, driven by the double effects of to the approval process included some very For years, our sector has called for ‘Apollo-like’ higher traded volumes and higher prices. large industrial gas projects (HFC, N2O). 2008 campaigns to spur the inevitable transition to In spite of the uncertain economic climate, saw more projects entering the pipeline, but renewables, which result in higher job creation the organisation expects growth in the was characterised by a higher number of than any other investment option, even if one global carbon market to continue, reaching smaller projects (mainly renewable energy and overlooks the extremely high environmental US$150 bn in 2009. energy efficiency). benefits and energy security facets. It has The dominance of the European Union For 2009, New Carbon Finance anticipates been argued that any fundamental rejigging Allowance (EUA) market continues, with EUAs continued market growth, albeit at a slower of the free enterprise system should include accounting for 70% of the volume of carbon rate than that seen between 2007 and 2008. a significant focus on renewable energies as a emissions traded in 2008 – and 80% of the Its analysis suggests a total market size of new economic underpinning, on the assump- value. However, secondary or “guaranteed” US$150bn by year-end 2009. This will be tion that, well, the time is right and we have Certified Emission Reductions (CERs), the driven by moderate growth in the European Clean Development no choice in the long run. main currency of the allowance market (EUA), but most of the Mechanism, have steadily increased their growth is expected to come from increased market share from 8% in 2007 to 13% by Assuming the world order returns to its pre- liquidity in the secondary CER market with 2008, and in 2008 accounted for transactions more issuances and improved registries to meltdown status quo, the UK consulting firm worth over US$14bn. This reflects the growing transfer and hold these types of credits. The CarbonFree believes that the renewable interest in these credits as a global carbon future of the CDM also looks more secure energy sector is facing a crisis similar to the currency being eligible for compliance against following the international negotiations one it experienced 20 years ago, but with a emissions targets under the EU ETS, Kyoto in Poznan in December 2008, with firm difference. The industry of the 1980s was in its Protocol and the potential Australian and commitments to improve the transparency and infancy while, today, some of the companies North American schemes. efficiency of the mechanism. have achieved the scale which is required to survive a downturn. “Just as the Dot Com crash did not totally destroy the IT and communica- ment in this regard arrived recently in the obtuse, it will be difficult to ensure that tions sector, so companies with robust busi- final version of the EU’s climate change Bill the commonly-accepted emerging renew- ness models will survive the bursting of the – recently rubber stamped in Brussels. In a able energy technologies are at the front of Green Tech bubble,” it predicts, adding that u-turn from earlier versions of the Bill, indus- the line. renewables can compete and displace most trial sectors such as cement, chemicals and other energy sources, even at US$30 for a steel will now receive free carbon emission There are many critics of emissions trading, barrel of oil. permits at least up to 2020, instead of having including those who see it as a commercial to buy them under an auction scheme, as licence to pollute and others who fear that its Another warning sign for renewables in the previously planned. success will result in a transfer of economic carbon market has also come out of Britain, benefits to other regions, as well as the basic which recently held its first auction for four The concession represented a victory for climate change deniers and those who do not million permits under the EU ETS, and then Germany, by far Europe’s largest manufac- believe that the trade of pollution offsets can announced that the £60 million of revenue turing nation. It means that revenues from be taken seriously. would be absorbed into general Government the EU’s auction procedures – once forecast to coffers. Environmental groups were quick to hit €50bn a year by 2020 – are now expected But the market does take emissions trading demand that the money be earmarked for to be closer to €30bn. This will minimise the very seriously, and it is a growing reality in renewables, energy efficiency and other green incentive for cleaner technologies, effectively jurisdictions around the world. To deny its projects, either in the UK or abroad, in order to punish companies that have already invested need or the existence of the market would be adhere to the underlying philosophy of carbon in clean technology, not to mention give a folly; to deny the economic benefits which can trading. They contend that a low-carbon future huge windfall to recipients of the free permits, accrue to the renewable energy sector would demands significant levels of investment, and argue many experts. be to lose a major business opportunity. that the ETS (or similar offset auctions) is a logical source for money which is derived from As this column has noted before, renewable companies that are unable to reduce their energy advocates must also monitor how the About the author: GHG emissions in a sustainable way. eligibility criteria are set for offset trading, as Bill Eggertson is a freelance correspondent for renewable any technology which emits less carbon than energy focus, and has written on a variety of renewable energy topics for the magazine – including “Green Heat”. But be thankful for small mercies – at least an old coal-fired plant can claim to be ‘clean’ – He is based in Canada. there was an auction – further disappoint- by comparison. If the definitions become too

renewable energy focus January/February 2009 31 Utilities/Renewables Utilities: the challenge of integration

IN THE FIRST OF A REGULAR COLUMN ADDRESSING THE ENGAGEMENT OF UTILITIES WITHIN THE RENEWABLES MARKETPLACE, USBASED RENEWABLE ENERGY FOCUS COLUMNIST DON C. SMITH CONSIDERS THE CHALLENGES THAT US UTILITIES FACE IN INTEGRATING RENEWABLES. Don C. Smith

One of the most vexing challenges facing US strategic improvements to the electric trans- which would overlay and easily integrate with utilities in integrating more renewable energy mission system.” the current lower voltage electricity grid. As an sources into their energy portfolios can be example it would allow for the efficient long summed up in two words: improving trans- For example, wind farms must be located distance transmission of electricity generated mission. Irrespective of how many wind farms where the wind blows, and consequently by wind farms in, say, western Kansas or eastern or solar parks are built and how much energy “wind power development is inextricably tied Colorado to Atlanta, Miami, and New York. they generate, the fact remains that the elec- to electric transmission,” Tierney writes. “Many tricity generated in these facilities will be of recent studies have concluded that ensuring Energy company AEP, which has experience relatively little use unless it can be transported adequate transmission is built to deliver power with its own existing EHV 765 kilovolt (kV) to demand centres across the country. from remote renewable projects to consumers network, says that the nation’s transmission in distant markets, is just as important as system “must be developed as a robust inter- A key hurdle related to substantially increasing developing the renewable resources them- state system, much like the nation’s highways, the role renewable energy will play in Ameri- selves,” she says. to connect regions, states, and communities.” ca’s future energy portfolio is one that at first Such a system, consisting of 19,000 miles of appears simple and yet on further examina- There is widespread agreement that transmission lines, would establish a combined tion is perplexing. Put simply, energy gener- constructing this ‘super transmission grid’ needs additional capacity of perhaps 200-400 GW of ated from renewable energy facilities must to be addressed now. A recent report by the bulk transmission, thus spurring significantly be transmitted to population and industrial North American Electric Reliability Corpo- increased levels of wind energy in the overall centres where the demand is highest. The ration (NERC), the self-regulatory non-profit energy portfolio. The cost, as estimated by AEP, current transmission grid was never intended organisation for bulk power system reliability would be in the range of US$60 billion (in 2007). to serve such a purpose, a matter that the in North America, concludes: “The existing bulk By comparison, the US military budget for fiscal utilities, policymakers, and other stakeholders transmission network is inadequate to reliably year 2009 is more than 10 times that amount. must successfully address if renewable genera- deliver power from new renewable resources tion is to reach its full potential. to demand centres.” Rick Segal, the President Two key issues in developing a super transmis- and ceo of NERC, has bluntly stated: “We sion grid involve dealing with transmission line The underlying problem – which some have believe that inadequate investment in trans- siting decisions and providing for reasonable called the ‘dirty little secret of clean energy’ – mission lines will be the primary limitation to and equitable policies to allocate the costs of is illustrated in a new report by Boston-based delivering clean, reliable power to consumers. building the new transmission system. In both consultancy the Analysis Group. Authored by Indeed this issue is already occurring in some cases, what is needed is a federal response, Susan F. Tierney, who was a member of the areas, with forced curtailments of wind genera- specifically giving the Federal Energy Regula- energy-related issues transition team for Presi- tion due to insufficient transmission capacity.” tory Commission (FERC) authority to take bold dent-elect Barack Obama, the report concludes and decisive action. This will, of course, raise the US will not fully exploit its “rich domestic The new transmission system would prefer- the long-standing controversy surrounding renewable resources in the near term without ably be an extra high voltage (EHV) supergrid, federal versus state powers, but there is no

32 renewable energy focus January/February 2009 Utilities/Renewables

compelling reason not to hand the responsi- bilities for these matters over to FERC. Despite states’ assertions to the contrary, the development of the supergrid cannot be left to the vagaries of 50 state responses.

The siting of transmission lines has traditionally been handled by state level public utility commissions, and these commissions have tended to aggressively protect their corner when it came to anything that could be inter- preted as reducing the states’ powers. While such an argument might have been reasonable years ago when the overall energy stakes were much lower, in today’s world the possibility (indeed probability) that individual states may be able to subvert the needs of the nation as a whole are as antiquated as the concept that states should have their own currencies.

Moreover, investors in a supergrid would New dawn for US’ transmission infrastructure? One of the most vexing challenges facing US utilities in integrating more unquestionably be unwilling to even consider renewable energy sources into their energy portfolios can be summed up in two words: improving transmission. funding such efforts if the projects faced a veritable maze of state-level decision making ised from the nation’s investments in our inter- of US$16 billion in smart grid incentives over processes. As such, FERC should have the sole state highway system,” she writes. Similarly, the next four years could work as a catalyst in responsibility – although after seeking the “A national EVS overlay built to connect the driving associated smart grid projects worth advice of the states – for making transmission nation’s … wind, biomass, and solar resources up to US$64 billion. It also predicts that by the line siting decisions. … will help to produce economic development, end of 2009, over 150,000 of the 280,000 new strengthen energy independence, and satisfy direct jobs will have been created. Similarly, FERC should decide on cost alloca- customer demand in markets throughout the tions for building the supergrid transmission country,” she concludes. Despite the many compelling reasons to move lines. At the heart of this should be costs allo- ahead quickly and aggressively with a new cated on a regional or even nationwide basis, There are indications that the Obama Admin- supergrid, there will be many political issues not on a local or state basis. istration clearly understands the opportu- to address not least of which is the matter of nities at hand. As a presidential candidate, providing legislative authority to FERC to make Admittedly, this approach reflects a new para- Obama said last September: “We’re going to the difficult decisions related to this effort. digm in thinking about transmission-related have to rebuild our infrastructure, which is issues. Historically, electricity typically involved falling behind … making sure that we have States and many local politicians will criticise moving the fuel to the consumer (for example, a new electricity grid to get the alternative this approach, but such criticism needs to be building coal-fired plants near demand centres energy to population centres.” In January, Rob set in the context of similar objections raised and transporting coal in often enormously long Church, vice president for the influential Amer- 50 years ago by those who opposed the US train routes to the plants). Now, however, utili- ican Council on Renewable Energy (ACORE), Interstate Highway System. ties must be encouraged to generate the elec- said: “The Obama Administration is very up to tricity where the ‘fuel’ is (i.e. where the wind speed on this issue and we understand it’s very Even Joseph Kelliher, who was appointed FERC’s blows in the case of wind power) and deliver important to them.” Chair by President George W. Bush, agrees that the electricity to the demand centres. the additional authority should be mandated And this was also confirmed in a speech of 8 by Congress: “Without that authority, we are One context in which to consider the chal- January, in which Obama made it clear that actually not going to develop a grid that this lenges and opportunities associated with a new renewables – and updating the grid - would country needs to ensure reliability, to support supergrid transmission system involves looking play an important part in “saving” the US wholesale competitive markets, but also to back at the philosophical underpinnings of the economy. Outlining his American Recovery meet the climate change challenge.” US Interstate Highway System, an effort begun and Reinvestment Plan, which could see nearly a half century ago by Republican Presi- spending of up to US$775 billion and the About the author: dent Dwight D. Eisenhower. As Susan F. Tierney creation or saving of three million jobs, Obama renewable energy focus writes, the vision then was to unite the states said that energy is one of his priorities. But as Don C. Smith is ’ US correspondent. He serves as Director of the in a ground transportation system that would well as using “clean energy” as a job creation Environmental and Natural Resources Law & Policy Denver Sturm hasten commerce, recreation, and develop- tool, he addressed the need to upgrade the graduate programme at the University of College of Law, and as Editor in Chief of Utilities Policy, ment. “It is easy to believe that the original American transmission system, pledging to a peer-reviewed journal focusing on the performance estimates of the system’s value barely scratched start building a new smart grid. According to a and regulation of utilities. He can be reached at [email protected] or on +1-303-8871-6052. the surface of the actual returns we have real- report from consultancy KEMA, an investment

renewable energy focus January/February 2009 33 Hydrogen from renewables Hydrogen production from renewables

IF WE ARE TO HAVE A SUSTAINABLE TRANSPORTATION INFRASTRUCTURE THAT INCLUDES HYDROGEN FUEL CELL VEHICLES, WE MUST PRODUCE THE ENERGY CARRIER  HYDROGEN  IN LARGE QUANTITIES FROM CLEAN, NONFOSSIL ENERGY SOURCES, AND THAT MEANS FROM RENEWABLES. SO EXACTLY WHAT OPTIONS DO WE HAVE TO PUT US ONTO THE CLEAN HYDROGEN PATHWAY, AND WHAT CHALLENGES NEED TO BE OVERCOME ALONG THE WAY? Dale Gardner

As we plan for the clean, non-petroleum- potential for sustainability. That being asserted, order in which we might expect to see them fuelled automobile and truck fleet of the there are many challenges to producing commercially available. future, we envision a propulsion technology Hydrogen from renewables – and perhaps the portfolio that includes biofuel powered, elec- major one is reducing the cost to be competi- Figure 1 opposite provides an overview of the tric drive, and hydrogen fuel cell vehicles tive with gasoline and diesel. various options. (FCV). Renewable hydrogen can be produced in Electrolysis The last of these is perhaps the most techni- several ways: cally challenging, but also the most attractive There is a substantial worldwide business in technology in terms of its ability to dramati- Electrolysis – splitting water into hydrogen producing electrolysers, and building electrol- cally decrease oil consumption, CO2 green- and oxygen using electricity from one of the ysis facilities for hydrogen production. The chal- house gas emissions, and tail pipe pollution. many renewable sources; lenges for transportation-ready renewable However, hydrogen is not an energy source – it hydrogen are both in cost, and in understanding is an energy carrier. And to fully realise its Biomass conversion – via either thermochem- the logistics and economics of large central benefits, we must produce it not from fossil ical or biochemical conversion to intermediate production plants versus smaller distributed sources, but from renewable energy. products that can then be separated or reformed facilities located nearer the vehicle users. to hydrogen; or fermentation techniques that The world produces huge quantities of produce hydrogen directly; A 100% efficient electrolyser requires 39 kWh hydrogen today for industrial and commercial of electricity to produce 1 kg of hydrogen. The purposes, probably in excess of 50 million Solar conversion – by either thermolysis, using devices today require as much as 48 kWh/kg. tonnes/year. But most of that production is solar-generated heat for high temperature chem- So, if electricity costs are 0.05 US$/kWh, the fossil-energy based, either from reforming ical cycle hydrogen production or photolysis, in power cost for the electrolysis process alone is natural gas, or electrolysis using electricity which solar photons are used in biological or 2.40 US$/kg of hydrogen. (NB: In the USA, produced from coal, natural gas, petroleum, or electrochemical systems to produce hydrogen average residential electricity cost is approxi- nuclear. directly. mately 0.10 US$/kWh and industrial 0.06 US$/ kWh). Capital costs for an electrolysis facility Renewables on the other hand are a desired The order above is, in general, also representa- can be a huge factor, and for smaller installa- energy source for hydrogen production due to tive of the technological maturity of these tions can actually become the predominant their diversity, regionality, abundance, and pathways, and thus roughly the chronological cost factor.

34 renewable energy focus January/February 2009 Hydrogen from renewables

One advantage of electrolysis is that it is capable of producing high purity hydrogen Solar Energy Geothermal (>99.999%), which is good for FCVs, whose fuel Wind Photo-biological cells will, at least initially, be susceptible to contaminants and will require ultra-high Heat Photovoltaics hydrogen purity. Hydro Ocean Biomass The worldwide electricity production potential Mechanical Energy Photo- from renewables is staggering. If addressed electrochemical and utilised aggressively, there is sufficient Concentrated Solar Power resource to support not only large inputs to Electricity the electrical grids across the planet, but also Bio- Thermo- significant hydrogen production. As an chemical chemical example, by itself the available wind power Thermolysis Electrolysis Conversion Photolysis resource in the USA is estimated to be more Fermentation than 2,800 GW (today, total US electricity Hydrogen generation capacity is roughly 1,100 GW), enough to produce over 150 billion kg/year of hydrogen, which exceeds the US gasoline Figure 1: Renewables-to-Hydrogen Technology Pathways quantity consumed annually in terms of energy equivalency. Biomass-to-hydrogen is complex, not only gases (along with varying quantities of unde- because of the technical details of the conver- sirable solid and gaseous byproducts). From Several renewables-to-hydrogen electrolysis sion processes themselves, but also because of there, the hydrogen can be separated out by test projects are underway in the USA and the many process types that could be membrane, chemical, or catalytic steps. Tech- worldwide. At the US National Renewable employed. The conversion type with the most noeconomic analyses indicate that gasification Energy Laboratory (NREL) in Colorado, a potential for large-scale centralised produc- biorefineries may have to be large to be partnership between NREL and the local utility, tion, as pointed out in the NRC report, is gasifi- economically feasible, which means significant Xcel Energy, has resulted in a pilot scale cation, which in itself is but one of several capital investment as well as a broad feedstock project using wind and PV (see figure 2 and technologies available within the larger cate- production and delivery infrastructure to case study – ‘renewables to hydrogen’). The gory called thermochemical conversion. supply each installation. hydrogen is stored, then used to fuel NREL’s Mercedes Benz F-Cell FCV, or converted into A second thermochemical option is to convert electricity for injection back onto the grid If we are able to transcend the biomass to a bio-oil via thermal decomposi- during times of peak electrical loads. tion known as fast pyrolysis, followed by cata- the “chicken-and-egg” lytic steam reforming of the liquid (or its vapours) In the 1920s and 1930s, MW-scale alkaline to hydrogen. An advantage of this approach is electrolysers were built next to hydroelectric problem with respect to that the bio-oil, as an intermediate product, has facilities in several locations around the world. a higher energy density than the biomass feed- So, we know how to do renewable hydrogen FCVs and the supporting stock and can more easily be transported. This through electrolysis, have done it in the past, technique may prove to be applicable to and now need to overcome the relatively hydrogen production and smaller, distributed biorefineries, whereas the modest technical and economic barriers to gasification process described above may cater renewable hydrogen electrolysis for future distribution infrastructure, to the large, centralised installations. transportation needs. we should be able to make Biochemical conversion of biomass to hydrogen Biomass Conversion also presents several possible pathways. Ethanol the technical and business produced from lignocellulosic materials could Because biomass is our only renewable source be further reformed to hydrogen, as could other of hydrocarbons, conversion of a small portion case for renewable biofuels or intermediate products of various of the planet’s huge biomass resource to fuels hydrogen as the energy biochemical routes Certain regional implica- is an important option for our transportation tions, feedstock types, or end-use requirements needs. Hydrogen can be produced from this carrier for our clean vehicles might make this a viable, if not a widespread, renewable feedstock. A recent US National option. Research Council (NRC) report (Transitions to of the future. Alternative Transportation Technologies: A Focus More interesting perhaps is dark fermentation, on Hydrogen, July 2008) asserts that centralised Gasification – whether steam, air/oxygen, cata- a process that uses anaerobic microorganisms production of hydrogen from biomass gasifica- lytic, or indirect – involves subjecting the to produce hydrogen directly, much in the way tion is the renewable pathway that has the biomass to elevated temperatures and pres- that bacteria or yeast can produce ethanol via highest likelihood of commercial viability in sures in order to reduce the organic materials fermentation. Such organisms might be the 2015-3035 timeframe. to hydrogen and carbon monoxide/dioxide enhanced to better perform the hydrogen

renewable energy focus January/February 2009 35 Hydrogen from renewables

production task. They typically need to start Case study: renewables to hydrogen with glucose, so the cellulosic ethanol pretreat- The US Department of Energy’s National is being designed to make the necessary ment and hydrolysis techniques that are being Renewable Energy Laboratory (NREL) and Xcel conversion. In addition, up to 10 kW of power developed now to break down cellulose into Energy are running a ground-breaking multi-year from the PV array is conditioned with a DC-to-DC glucose would also be required for the dark project aimed at using electricity generated from converter for use by the stacks. fermentation pathway. wind turbines and photovoltaics (PV) to produce Two polymer electrolyte membrane (or proton and store pure hydrogen, thus offering what may exchange membrane) electrolysers from become a significant new template for future Solar Conversion Proton Energy Systems and a Teledyne energy production, storage, and use. Energy Systems (HMXT-100) alkaline Perhaps the most intriguing options, with huge The demonstration project (wind-to-hydrogen electrolyser are used to split water into potential but requiring more development time, or Wind2H2) facility links two wind turbines and hydrogen and oxygen gases. are solar conversion techniques. These are ther- a PV array to electrolyser stacks. NREL-designed molysis and photolysis, and are shown on the Finally, the hydrogen is compressed and stored. power electronics condition the wind- and PV- far left and far right of figure 1, respectively. generated electricity, for the stacks to complete A hydrogen internal combustion engine (or potentially a fuel cell in the future) then the splitting of the liquid water into hydrogen Thermolysis involves using the heat produced and oxygen. The resulting hydrogen can be converts it back to electricity to be put on from concentrated solar power (CSP) to drive stored and used later to generate electricity the utility grid during peak demand hours. In one of many thermochemical reactions from either an internal combustion engine addition, the compressed hydrogen also fills (hundreds of which are known) that can turning a generator, or a vehicle fuel. In either storage tanks and subsequently a fuel cell Daimler instance, the only by-product is water. vehicle from that is used at NREL. produce hydrogen, or to drive electrolysis at very high temperatures for more efficient The entire demonstration project will reveal Located at NREL National Wind Technology water decomposition. Center west of Denver, Colorado, USA, the site integration and operational issues as well as includes a building that houses the electrolysers identify opportunities for improvement and Photolysis may be the ultimate “holy grail” for and a device to compress the hydrogen for other potential benefits. NREL and Xcel Energy hydrogen production, using solar photons to storage; 6 large tanks to store the hydrogen; a expect to release a public update soon on the generator run by an engine that combusts the project’s operation. Results of the project will produce hydrogen directly via biological or hydrogen; a dispenser to fill hydrogen-based also be shared with other utility companies electrochemical systems. Photobiological vehicles, and a control room where computers interested in hydrogen’s future role in the utility methods use photosynthetic organisms such monitor and control all steps of the process. industry and transportation sector. as some cyanobacteria and green algae to photoproduce hydrogen – no carbon-based The demonstration project uses two wind turbine From NREL’s perspective, the project has two technologies - a Northern Power Systems unique aspects. First, the project will study how molecules are needed in the process. Much 100 kW wind turbine and a Bergey 10 kW wind to achieve efficiency gains through a unique, work is still needed to optimise the processes turbine. The energy from the 10 kW wind turbine integrated AC-to-DC and DC-to-DC power within the organisms, and numerous engi- is converted from its ‘wild’ alternating current electronics-based connection between the wind neering challenges need to be met to develop (AC) form to direct current (DC) and then used turbines and the electrolyser stacks. Moreover, large hydrogen generation photobiological by the electrolyser stack to produce hydrogen the project compares multiple electrolyser systems. and oxygen from water. Meanwhile, the energy technologies, gauging their efficiencies and from the 100 kW wind turbine is captured from abilities to be brought on- and off-line quickly - as Photoelectrochemical photolysis involves the its existing controller, which already powers a DC the wind and solar energy vary. NREL hopes to disassociation of water into hydrogen and bus of nearly 800 volts. That voltage is too high for show significant cost and efficiency gains on the oxygen directly at the surface of a semi- the electrolyser stacks, and new power electronics integrated wind- and PV-hydrogen systems. conductor through the irradiation the semiconductor by solar photons. This can be thought of as electrolysis without the electrolyser, because the photovoltaic semiconductor material acts as a catalyst to produce hydrogen directly at the semiconductor and 100kW Wind H2 Vehicle Turbine Fueling Station water interface. A major hurdle is finding a 10kW PV Array 10kW Wind semiconductor material that has the right Turbine photoelectrochemical properties, while being

Excess economical and robust enough to withstand AC Power DC Power the severe chemical and physical environment. To Grid from Wind Electrolyzers Turbine H2 Compressor Is there enough? DC/DC AC/DC Converters Converters Can renewables really produce enough H Fuel 2 hydrogen to make a diﬀerence? Figure 3 answers AC power from fuel cell Cell or genset during peak this question for the USA, providing a county- demand periods H2 H2 by-county indication of the hydrogen potential Genset Storage from solar, wind, and biomass – compared to Figure 2: NREL and Xcel Energy Renewable Electrolysis Project Diagram gasoline consumption in the US alone.

36 renewable energy focus January/February 2009 Hydrogen from renewables

On a gallon of gasoline energy equivalency basis (i.e., no advantage given for fuel cell efficiency compared to a gasoline internal combustion engine)

Figure 3: U.S. Renewable Hydrogen Potential Relative to Gasoline Consumption by County

Only those in blue could produce less In the USA, the end of the President’s to name just a few, continue to pursue renew- hydrogen than their equivalent gasoline use, Hydrogen Fuel Initiative (in which President able hydrogen options. Also, the more recent and those in green approach the capability of Bush pledged US$1.2 billion to hydrogen and International Partnership for the Hydrogen 1,000 times more hydrogen than their own fuel cell R&D during fiscal years 2003 through Economy (IPHE) links many nations in collabor- needs. The few counties that fall short are typi- 2008) has had a budgetary effect on hydrogen ative efforts. cally surrounded by others with an abundance. R&D in general, and on renewable production Even though the US has a significant renew- R&D in particular. Whereas the US Depart- If we are able to transcend the “chicken-and- able resource, a global analyses might be ment of Energy’s hydrogen R&D budget had egg” problem with respect to FCVs and the expected to provide similar results. been climbing to more than US$280 million supporting hydrogen production and distribu- in 2008, the Department’s fiscal year 2009 tion infrastructure, we should be able to make So, with all these options for renewable request showed a decrease, including a the technical and business case for renewable hydrogen production and the significant, zeroing of applied R&D funding for hydrogen hydrogen as the energy carrier for our clean diverse renewable energy resources upon production (which had been US$40 million in vehicles of the future. And, we should be able which we might draw worldwide, where do we 2008). The rationale was that at least one to do that, not by the 2040-2050 timeframe as stand in terms of the research and develop- production pathway had made the US$2- some suggest, but in the nearer term in order ment (R&D) needed to address the US$3/kg cost goal – albeit via a non-renew- to offer a renewable, sustainable, and clean challenges? able pathway known as distributed steam transportation option to our future global reforming of natural gas – and that funding portfolio. The answer is not clear, largely due to the was being focused on hydrogen storage and confusing global energy picture and recent fuel cell R&D, where there is greater imme- economic downturn, combined with an diate need. apparent emphasis on nearer-term solutions About the author: being evaluated to reduce CO2 emissions and Internationally, renewable hydrogen produc- stem global warming. Some speculate that tion R&D efforts continue. The long-standing Dale Gardner is the associate laboratory director for Renewable Fuels & Vehicle Systems at the National there is less enthusiasm for hydrogen than we Hydrogen Implementing Agreement of the Inter- Renewable Energy Laboratory (NREL), a US have seen in recent years, while others offer national Energy Agency (IEA), in place since Department of Energy laboratory located in Golden, Colorado, USA. His research, development, and that hydrogen and fuel cells need to find their 1977, continues to work toward renewable demonstration technology portfolio at the lab includes place in the portfolio of future transportation hydrogen production. And many individual biofuels, hydrogen and fuel cells, and advanced vehicle technologies. propulsion options. countries, including Japan, Australia, Iceland,

renewable energy focus January/February 2009 37 EU wind focus Special focus – EU wind

IN 2008, MORE WIND POWER WAS INSTALLED IN THE EU THAN ANY OTHER ELECTRICITY GENERATING TECHNOLOGY. STATISTICS RELEASED BY THE EUROPEAN WIND ENERGY ASSOCIATION EWEA AS WE GO TO PRESS SHOW THAT 43% OF ALL NEW ELECTRICITY GENERATING CAPACITY BUILT IN THE EUROPEAN UNION LAST YEAR WAS WIND ENERGY, EXCEEDING ALL OTHER TECHNOLOGIES INCLUDING GAS, COAL AND NUCLEAR POWER.

BUT JUST WHEN WIND POWER SEEMED SET FOR CONTINUED IMPRESSIVE ANNUAL GROWTH, THE CURRENT FINANCIAL CRISIS ARRIVED ON OUR DOORSTEPS. WHAT MANY NOW WANT TO KNOW IS WHAT KIND OF EFFECT THIS WILL HAVE ON THE MARKET IN THE EU, BOTH IN THE SHORT AND LONG TERM?

While most European markets are stabilising around utilities and opportunities are becoming scarce, many players will continue to leverage their experience to expand into other less developed and faster growing markets like North America, Asia, and Latin America.

38 renewable energy focus January/February 2009 EU wind focus/the market

Introduction Market opportunity Development competition Market maturity overview

Greenfield developers and new For the first time, wind energy is the leading Tapping out entrants are locking up high remaining sites resource sites for their first large- technology in Europe. A total of 64,949 MW of scale installations installed wind energy capacity was operating in the EU by end 2008, 15% higher than in Tight competition between utilities, IPPs, and turnkey project buyers will 2007. Late stage/ scale portfolios of late-stage Operational project projects, with guaranteed returns acquisition In this special focus for Renewable Energy Utilities and experienced IPPs in Focus magazine, we take a look at the wind mature markets are seeking remaining potential in saturated power market in the EU bloc, starting with an onshore markets such as Repowering analysis of the market dynamics and a look Germany and the Netherlands at how the financial crisis will affect wind Utilities with balance sheets industry actors and risk management skills – with the help of Emerging to handle complex EPC to scale the industry are Offshore Energy Research (EER) and Frost & Sullivan moving toward project (below, and pages 39-44). execution offshore

Then on pages 46-49, we look at the concept of location intelligence, which is playing a Growth Scaling Consolidating Markets Markets Markets growing role in the planning, design and siting of European wind farms.. Figure 1: Europe market opportunity and competitive landscape overview (courtesy Emerging Energy Research).

One of the most prominent wind organisa- Stabilised market structure tions headquartered in Europe is Siemens It is clear that project flow will slow among Wind Power, and on pages 50-53 we run an Utilities now own 26% of total wind power smaller players with lower internal rate of exclusive interview with ceo Andreas Nauen. capacity installed, while industrial independent return (IRR) projects. power producers (IPPs) are rapidly consolidating the league of independent players, Emerging Energy Research (EER) predicts And finally, we turn our attention to turbine leaving fewer opportunities for pure finance steady growth of 9 GW to 10 GW through to innovation, and look at some of the novel ideas that pitched up at the British and development players. 2011, which will eventually ramp up to 11 GW by Wind Energy Association’s (BWEA) 30th 2014 as offshore sees paced growth, and as Few blockbuster, billion Euro (€) acquisi- remaining onshore opportunities are tapped out. anniversary show in London late last year tion targets remain in play as mega utilities EER also forecasts that the European wind market (pages 54-57). and strong IPPs are now firmly positioned will reach a total of 210 GW installed by 2020. to execute onshore pipelines while looking EU Wind market: an introduction toward offshore on the horizon. The current Competitive overview – financial crisis may in fact further cement consolidation, growth and scale On average, 20 wind turbines were installed Europe’s wind asset ownership structure, as for every working day of 2008, the European the higher costs of equity may purge highly There have been few shifts in terms of market Wind Energy Association (EWEA) recently leveraged players from the market, creating maturity between 2007 and 2008. Figure 1 reported. By the end of the year, a total of opportunities for utilities and major IPPs to shows Europe’s groupings of consolidating, 160,000 workers were employed directly and advance their portfolio strategies. scaling, and growth markets – based on an indirectly in the sector, which saw investments of about €11 billion in the EU. And the wind power capacity installed by end 2008 will, in a normal wind year, produce 142 TWh of elec- In brief: EU wind snapshot tricity, equal to about 4.2% of the EU’s electricity demand, and avoid the emission of 108 ■ Wind power has become a mainstream ■ Development of Europe’s growth markets energy source in Europe; relies on sporadic project activity; million tonnes of C02 per year, the equivalent of taking more than 50 million cars off Europe’s ■ Wind energy’s market structure has ■ Scaling markets will drive the bulk of roads. stabilised in Europe after a rapid period of Europe’s long-term growth; M&A over the past three years; ■ Consolidating markets welcome wind as a ■ Growth through to 2020 will see wind key player in the generation mix; And according to Emerging Energy Research, markets shifting Eastwards and embracing ■ Forecasts Point to 210 GW Market by 2020; with a compound annual growth rate (CAGR) the offshore and re-powering markets, ■ Europe to exhibit paced offshore of 17% between 2004 and 2008, and holding despite near-term financial challenges due expansion through 2020; steady at around 8 GW capacity installed annu- to the global credit crunch; ■ Wind players will be forced to adapt ally, Europe should re-assert its position in the ■ The European wind sector growth strategies to tap out remaining potential; near term as the bedrock of the wind industry, continues to be driven by scaling markets ■ A consolidated Europe will solidify wind in and many players continue to seek out oppor- and offshore; the power mix; tunities in faster growing markets such as the USA and China.

renewable energy focus January/February 2009 39 EU wind focus/the market

market types, consolidating markets Germany,

100% Spain, Denmark, Austria, the Netherlands, and Utilities Belgium will still contribute 47% to Europe’s 17.17% 20.00% 19.80% Top IPPs 22.00% 24.00% 26.00% Other Spanish IPPs installed wind base, declining from 76% in 2007. Other European IPPs/ 6.06% 6.00% German Investors 75% 7.00% 9.90% 7.07% 6.00% 10.00% Which EU countries are seen as the 6.00% 5.94% 10.60% 5.00% 4.30% most attractive? 19.19% 19.00% 18.00% 20.79% 50% 20.00% The attractiveness and availability of Europe’s 22.10% wind power development opportunities are reaching a critical point as markets mature and the competitive environment consolidates 25% 50.51% 49.00% 47.00% 43.56% around a smaller set of key players driving the 41.00% 37.00% industry.

0% Overall, Western European markets continue to 2002 2003 2004 2005 2006 2007 consolidate, while less developed markets in Eastern Europe remain the target of regional Figure 2: European ownership shifts to utilities and IPPs (courtesy Emerging Energy Research) expansion. Generally, utilities continue to make their presence felt as consolidators across evaluation of each country’s market concentra- Europe, acting as project buyers, partners, and tion and wind penetration. greenfield developers – vye for project permits Does the economic and grid connections with smaller IPPs and slowdown have While countries such as Poland and Turkey pure play competitors. positive sides? moved ahead of the pack, Portugal’s days as a scaling market (characterised by strong While the barriers to entry continue to increase First of all, according to analysts Frost remaining resource coupled with stable regu- as wind finds its way into countries’ mainstream & Sullivan, equipment prices will latory frameworks that will facilitate project power mix, distinct development opportunities inevitably follow the raw material prices that sharply decreased in development) are dwindling. exist for those players with a strong under- September- November 2008. For standing of local competitive environments. example, wind towers accounting Development of Europe’s growth markets for up to 20%-23% of the total relies on sporadic project activity. Wind energy EER recently looked at each country in detail to wind turbine cost (the second most growth markets include a number of different gauge an idea of which European countries expensive element after blades) are countries in which wind is a nascent market, were the most attractive in terms of wind predominantly made of steel. including Turkey, the Baltic states, Romania, power development potential, ranking each Steel prices – after reaching an all Bulgaria, Norway, Switzerland, the Ukraine, and market based on five key components: time historic maximum in June- Finland. These countries’ markets are nascent, September 2008 – crashed down to where the gradual creation and implementa- ■ Wind resources; December 2007 levels in less than tion of stable regulatory frameworks are ■ Regulatory mechanisms; 3 months. expected to facilitate sporadic project activa- ■ Site approval; ■ Another factor contributing to a tion. At year-end 2007, these countries Grid connection; ■ fall in prices is an increased level of accounted for 2% of total wind energy capacity Competition. competition along the value chain. installed in Europe. Between 2008 and 2020, The new reality will foster a fiercer growth markets will contribute nearly 11% to Some of the most significant shifts highlighted competition between the suppliers by EER’s 2008 Rankings are the improving posi- turning into a growth opportunity for tions of France Europe’s new wind capacity. (driven by an increasingly trans- those who are capable of reducing parent permitting process and support for their costs and prices faster. Scaling markets will drive the bulk of Europe’s utility-sized projects with a €0.082/kWh feed-in Delivery and construction times will long-term growth. These markets, including tariff) and Sweden (where an improved regula- see a huge improvement which in turn the UK, France, Italy, Sweden, Poland, Greece, tory framework has simplified the planning will make the project lifecycle shorter Ireland, and Portugal will experience high process for projects up to 25 MW). allowing for faster commissioning and project volume in the near term, and are Countries whose market attractiveness declined a shorter wait until the project brings expected to be Europe’s main growth motor in 2008 included Portugal (where a fully its first revenues. going forward, accounting for over half of the permitted or tendered grid capacity will limit Lastly, the asset valuations that jumped total new capacity added in Europe by 2020. development) and Greece (which is struggling out of control recently will return to with a bureaucratic planning and lengthy permit- sensible levels. Those interested in Consolidating markets welcome wind as a key ting process that can take up to five years.) growing their wind portfolios will have player in the generation mix, and have reached a a chance to acquire existing and new high level of maturity, are highly penetrated, and ■ EER’s most attractive countries (Tier 1) projects at a reasonable price. have limited Greenfield opportunities available. currently include Spain, France, UK, Despite having a lower growth rate than other Germany, Italy and Sweden;

40 renewable energy focus January/February 2009 No doubt you’ve been let down in the past. With a REpower wind farm you will be sure to maximise your yield.

REpower wind turbines combine aerodynamic efﬁ ciency with the latest control and feedback technologies. These are integrated into a system that delivers maximum performance with minimum input. Our investment in technology provides you with the perfect tool for the job.

2%POWER5+,TDÕ#OATES#RESCENTÕ%DINBURGHÕ%(!,ÕPHO2%POWER3YSTEMS!'ÕBERSEERING/VAL/FFICEÕ(AMBURGÕ'ERMANYNE ÕFAX 0HONE 7ERRINGTON0ARKWAYÕ0ETERBOROUGHÕ0%('ÕPHONE Õ&AX Õ% MAILIN ÕFAX FO REPOWERDEÕ)NTERNETWWWREPOWERDE E MAILINFO REPOWER UKCOUKÕWWWREPOWERDE EU wind focus/the market

6,000 The wind value chain –

4,500 Total Wind Plant Ownership, YE 2007 who needs what? MW Change 2007* According to Frost & Sullivan, the 3,000 need for ﬁnancial resources varies greatly across the wind value chain.

Megawatts 1,500 “Equipment manufacturers may have favourable post payment terms with

0 the component and raw materials suppliers, and in some cases pre- payment for their wind turbine -1,500 shipments, which reduces their need Enel RWE E.ON Essent Enerfin Endesa

Acciona for external ﬁnance for expanding Airtricity Iberdrola Vattenfall Electrabel Grupo ACS Gas Natural

Eurus Energy their production capacities, M&A Union Fenosa EDP Renováveis EDP

Babcock & Brown activities, etc. International Power EDF Energies Nouvelles

DONG Energy Renewables “Players engaged in wind farm Note: *“MW Change” includes a company’s new build, new capacity, acquisitions, and divestments Source: Utilities, Developers, Emerging Energy Research construction are in greater need for funds as it could take up to three years Figure 3: Wind plant ownership rankings, year-end 2007 (courtesy Emerging Energy Research) until their assets start generating power and cash flows. As typically wind ■ Next (Tier 2) currently include Portugal, targets. EER’s central predictions for the wind farms are financed with 30% of equity Denmark, Ireland, Poland, Norway, Greece; market’s evolution through 2020 include: and 70% of external finance, players ■ Tier 3 include Netherlands, Belgium, Swit- at the upper value chain segment are zerland, Turkey, Austria, Estonia, Hungary, ■ Countries aiming to achieve 2020 renewa- most exposed to feel the financial market squeeze. Czech Republic; bles targets will to continue build up their ■ Tier 4 (less attractive) include Croatia, wind power installed base; “Independent investors and project Bulgaria, Lithuania, Romania, Finland, ■ With opportunities dwindling in consoli- developers with high level of leverage Russia, Slovenia, Ukraine, Latvia, Slovakia. dating markets like Germany and Spain, and low cash level may fall first prey fast growing market France will become to the tightening market conditions as What about the potential of offshore the second-largest market in the region by they will find it increasing difficult or expensive to turn to debt markets for wind? 2020 in terms of new capacity installed; re-financing or new debt. ■ As wind technology has matured, all utili- The European offshore wind market continues ties have embraced it as a scalable way to “While some players have to consider to account for a fraction of the total wind diversify their generation portfolios and selling rather than buying, there is power installed in the region, and its contribu- expand into new markets without having another category that seems to be able to benefit from the existing markets. tion to annual power production remains to set up complex supply chains; Cash-rich utilities may choose not to marginal. Nonetheless, Europe is expected to ■ While most European markets are stabil- approach banks or debt markets as exhibit a paced offshore expansion through ising around utilities and opportunities are they can fund projects off their balance UK 2020, with three key markets—the , becoming scarce, many players will sheets. If they prefer to turn to debt Germany Sweden , and —driving future continue to leverage their experience to markets, often the interest rates they growth. expand into other less developed and are able to obtain are lower than those faster growing markets like North America, offered to other companies. At cheap Overall, EER forecasts that the market will grow Asia, and Latin America. credit times, utilities could pay as little at a CAGR of 28% through the rest of the fore- as 0.15 percentage points more than cast period, from 1,109 MW installed at year- The credit crunch and the outlook for government bonds for their money. As end 2007 to nearly 26,800 MW installed at 2009 and beyond; of October, 2008 that spread rose to 3.5 percentage points.” year-end 2020. Despite wind’s strong fundamentals as a gener- Current restructuring of the UK offshore ation technology that delivers emissions reduc- market, with increased utility participation by tion, supply security, and cost competitiveness, However, in the next two years some players players such as E.ON and Vattenfall, is a posi- the market is bound to see significant chal- will struggle to add new capacity, resulting in tive sign as large balance sheets are backing lenges in the coming year resulting from the a possible slowdown of new additions in the up long-term GW-size project plans. credit squeeze. However, experts believe that region. the EU’s strong commitment to renewables is New Energy Finance Conclusion – development set to likely to ensure the long-term development of According to analysts at , continue? the industry in Europe – in order that the Bloc the continued lack of credit finance worldwide, achieves its 20% by 2020 renewables targets. and tax equity in the US, means that turbine Despite the credit crunch’s impact on 2009– manufacturers will see sharp falls in their order 2010 growth, most experts predict that wind This factor maintains 150 GW of wind capacity backlogs for the first two quarters of 2009. will remain a key source of clean energy as EU additions by 2020, 80% of which will be Good deals will still go ahead, backed by club members adopt their 2020 renewable energy onshore. debt deals, however “it will feel like hard work”.

42 renewable energy focus January/February 2009 EU wind focus/the market

The second half of the year, however, should see lending freeing up considerably, with rates dropping, leverage increasing and a return to wpd: hall 1 stand 1613 syndicated deals, according to a source at New Energy Finance: “Overall for 2009, investment in the wind sector will fall somewhat below that www.m-schulz-ag.de in 2008. It will be a difficult year for project developers. Some will run out of cash and be snapped up by utilities and a few deep-pocketed www.wpd.de private equity and hedge funds. Turbine manufacturers will feel even more pain, particularly the smaller ones and those with less competitive technology. We expect to see 2009 end with fewer players than it started and many new entrants into the industry, particularly in China, will quietly disappear without ever shipping a turbine. By the end of the year, however, the industry will be in good shape for a return to robust growth in 2010. Turbine prices will be lower, helped by lower steel prices and the elimination of marginal players, new policy support will be in place in the US, and some ambitious projects will be ready to leave the drawing board and commence construction”.

Offshore wind development could also be hit. Over the longer term, financing, permitting, transmission issues, and supply chain bottlenecks will remain a constraint in the next three to five years. And there are concerns that the high-growth offshore markets such as the UK will suffer more than other countries. Adam Westwood of the Douglas- Westwood consultancy cites the Thanet project as one example: “the high cost of the Thanet project and other forthcoming projects is cause for concern. Major developers such as Centrica have previously expressed concern. For the UK, the falling value of the pound against the euro is exacerbating fears, as is the overall economic slowdown. There is a risk that some of the more expensive projects will be postponed or cancelled. Developers may attempt to bring in new D-28211 Bremen, 23a, Kurfürstenallee KG, wpd think energy GmbH & Co. project partners to help share costs on the large offshore wind farms. Supply chain constraints will be an additional factor on projects due post 2010, with an increasing number of projects competing for resources each year”.

Slow growth in 2009–2010 before market rebounds

EER’s forecasts for increasing wind power capacity in Europe takes into account:

■ Resource; ■ Wind-specific regulatory policies; ■ Siting; ■ Grid Transmission; Energy starts in the head. ■ Competition; We take care that thoughts ■ Specific project development environments. change direction. Despite the short-term impact of the credit crunch on new additions, EER’s forecasts anticipates that utility leadership through balance sheet financing will ensure relatively steady near-term growth. EER sees the following market trends stemming from the crisis:

Financial market restructuring may provoke reluctance from European governments to maintain renewable energy commitments, such as Eastern European countries that may seek to lower their targets to reduce the impact on their conventional generation market;

■ Utilities heavily invested in wind such as Energias de Portugal, Iber- drola, and Endesa have assured investors that their near-term projects will proceed based on balance sheet financing; ■ The current credit crunch poses significant uncertainty to pipelines in less strategic, riskier markets that lack the long-term feed-in tariff guar-

renewable energy focus January/February 2009 43 EU wind focus/the market

Top Utility Market Top Wind IPP Market 12,990 MW 6,381 MW During the next few years

RWEUnion Fenosa 2% the industry will have a Electrabel 3% International Power 3% Essent Total Ownership Market 16% 3% 56,666 MW EDF German Investors 4% 37% chance to take a breath,

Vattenfall 5% Iberdrola Acciona 42% rectify remaining technical 42% DONG 5%

Other European IPPs/investors 22% and operational drawbacks, ENEL 5%

Utilities 26% train more technical Other Spanish IPPs Grupo ACS E.ON 4% 6% 8% Top IPPs 11% Airtricity 5% personnel and enter a Endesa 10% EDP Babcock Brown 9% 15% new market phase well Figure 4: Europe utility, IPP market ownership split overview, year-end 2007 (courtesy Emerging Energy Research) equipped for a new wave antees of Western Europe, such as in the As the current crisis in the financial sector has of growth. Ukraine and the Balkans; frozen project finance worldwide, IPPs and ■ Cost competitiveness of wind has, until developers with weaker balance sheets will recently, been fairly unstable due to the struggle to realise their pipelines. However, the What can we look forward to? rising overall generation costs compared Europe market is led by utilities and large IPPs with rising wind turbine prices. Rising that could view the current financial crisis as According to analysts Frost & Sullivan, although turbine prices pushed installed cost-per an opportunity to accelerate industry consoli- wind energy industry growth rates will slow megawatt beyond €1.2 million, and this has dation. The bulk of Europe wind power is down, it does not mean the industry will stall. undermined wind’s competitiveness. To expected to be increasingly concentrated in While unfortunate for certain industry players, balance this fact, the price of oil rose from the hands of utilities, which have amassed the the economic slowdown will turn out to be a US$50 to US$140 per barrel between June largest pipelines in the region and can finance growth opportunity for others. Cash-rich compa- and November 2008, illustrating that fossil and digest big acquisitions. The main trends in nies and those with higher credit rating will be fuel volatility could make wind an attractive the market include: able to extend their wind portfolios at reason- hedge (despite the current return to lower able prices. oil prices). And in addition, in the current ■ Utilities will steadily tighten their grip on economic climate, lower raw material costs the market; Cheaper equipment available at shorter lead (for products such as steel) combined with a ■ The IPP model is in transition, with financial times for new installations, as well as wider avail- reduction in turbine orders from credit investors leaving the market; ability of specialised construction services and constrained organisations will lead to a ■ Germany’s wind ownership structure shifts fiercer competition along every segment of the reduction in the cost of turbines. While this as utilities try to develop domestic value chain, will force a total project cost down. could be challenging for the manufacturing portfolios. Once the economic outlook brightens, lower supply chain, it should play nicely into the project costs are likely to make the investments hands of those Project Developers who have Large players’ pipelines indicate into wind power more attractive for wider range access to cash, reducing the cost of projects. greater consolidation of countries and type of investors.

Consolidation accelerated by the Leading player pipelines have become increas- During the next few years the industry will financial turmoil ingly international, with over 60% of their pipe- have a chance to take a breath, rectify lines located outside of their core markets, and remaining technical and operational draw- Consistent EU-wide political support for renew- with several players venturing offshore. Proven backs, train more technical personnel and ables urges the utilities to take strong posi- development firms with over 100 MW of enter a new market phase well equipped for a tions in wind energy, which continues to confirmed projects in their pipeline altogether new wave of growth. provide opportunities for developers’ project have roughly 52 GW planned in upcoming years. and pipeline sales. At the same time, utilities’ continued moves upstream in locking up Offshore development promises large-scale About the contributors capacity growth threatens the Independent growth, and players are taking positions to Emerging Energy Research – Information used (and Power Producer (IPP) model that has flourished capture a large part of this growth; all the charts) are taken from a new study by Emerging Energy Research, Wind Power Development Strategies over the past five years. in Europe, 2008-2020, which analyses trends in market M&A remains a key growth option for Europe growth, competitive shifts across the value chain, and emerging investment opportunities in Europe’s wind As such, the Europe wind energy market wind power owners, evidenced by a high level of energy markets in light of the recent financial situation. continues to consolidate, with Mergers & Acquisi- activity from 2007 through early 2008; The complete study, released in November 2008, is available for purchase at http://www.emerging-energy.com tions (M&A) proving a key growth strategy, and Frost and Sullivan – Information used was taken from smaller independent power producers struggling The current crisis in the financial industry could a report entitled, Economic slowdown: threats and http://www. to grow in the face of increasing competition for accelerate consolidation in Europe in favour of opportunities for the wind industry. See frost.com. sites, grid access, capital, and turbines. players with stronger balance sheets.

44 renewable energy focus January/February 2009

EU wind focus Harnessing geography for European wind

WHAT’S THE BEST PLACE FOR A WIND FARM? NOT JUST ON ANY OLD HILLSIDE OR “SOMEWHERE OFFSHORE”. THE CONCEPT OF LOCATION INTELLIGENCE IS PLAYING A GROWING ROLE IN THE PLANNING, DESIGN AND SITING OF EUROPEAN WIND FARMS, SAYS JUSTIN SAUNDERS. Justin Saunders

When the UK government approved the giant 750 MW Gwynt y Mor wind farm oﬀ the coast of Llandudno, North Wales, in December 2008, key considerations about the exact location included the distance from the shore and how the visual impact from points along the coast could be minimised.

The developers had worked within a Govern- ment-set “strategic area”, carrying out studies and consultations to map the precise positions of turbines, and to show how they would aﬀect visibility, marine navigation, ecology and ﬁshing activities.

Similarly, the environmental statement behind plans for the forthcoming 152-turbine onshore farm at Clyde in south Lanarkshire, Scotland, involved the graphical representa- tion of physical survey results shown against customised map data. Consultants created a series of 3D visualisations, photomontages, ZTVs (zones of theoretical visibility) and digital terrain and elevation models that accurately predicted how the farm would appear.

And another example can be seen in northwest Portugal, where the December 2008 commissioning of the 240MW farm at Ventom- inho, also required a wide array of geographic assessments to be carried out during design and construction. Complex logistical issues had to be tackled to connect ﬁve sub-farms Essentially, whether you call it a map or a “spatial context”, the point of using geographic information is to help extract value from across a 30km zone with a single point of data and provide a tangible return on investment. A mapping interface can inform vital decisions by showing information in a graphical form that can never be achieved by tables of ﬁgures or text alone. connection to the electricity grid.

46 renewable energy focus January/February 2009 EU wind focus/location intelligence

Location intelligence In a GIS that supports a site location map for a Onshore, mapping at a scale of 1:50,000 is ideal proposed wind farm, additional statistical data for looking at the surrounding geographic Deciding where to site a wind farm involves will typically be imported as files from a spread- context of a proposed development, including a range of criteria that can be termed “loca- sheet to a server-based database system. A road infrastructure. Closer in, scales higher tion intelligence”. More than simply a map, statistical program then helps to categorise data than 1:25,000 offer more detail, with individual location intelligence concerns the ability to inputs and define the geographic area parame- building outlines, critical access routes and process, manage and share different kinds ters. This can help developers compare different field boundaries coming into view. Preliminary of information relating to a particular point turbine positions in relation to wind speed, grid site investigation must then take into account or wider geographic area. The concept has capacity, power lines, visual intrusion and other even more local factors such as slopes, lines evolved from the rather specialist preserve factors. Finding the optimum position for a of sight, ridge lines and gradients. These are known as geographic information systems turbine can improve the efficiency of energy contained in digital surface and terrain models, or GIS. These are essentially sets of software production and protect against unnecessary 3D elevation data and high-resolution aerial tools working together to create, manipulate costs. That goes for both single turbines and imagery that matches underlying mapping and present digital map data on screen. industrial-scale farms whether on- or offshore. through a process called orthorectification.

Location, location, location – the need for better grid access

Wind power developers across the EU have network, while improving the functioning of the integrated power market and greatly enhance for years bemoaned the lack of a coherent internal electricity market” Kjaer added. security of electricity supply. grid strategy for transferring power between A section of the SER is devoted to the importance Once installed, EuropaGrid will consist of a different Member States; many of the grids are of renewables. It gives the Commission’s large grid of sub-sea AC and DC cables. These owned by vertically-integrated power players, intention to identify and tackle barriers to their will connect Ireland with the UK and France and this inevitably leads to an unfair advantage development, starting with the tabling of a and the UK with France and Belgium. Future when it comes to allowing wind power onto a communication entitled “Overcoming barriers interconnector projects will connect other grid. According to the European Wind Energy to Renewable Energy in the EU” in 2010. This countries in Europe and interconnectors will be Association’s (EWEA) Christian Kjaer, the grid is decision demonstrates that the Commission linked to form a “mesh” or a grid. a monopoly and should be regulated as such, is aware of the need to reduce obstacles and because “if you own production, and if you own Connections to this grid for large offshore wind is actively taking steps to do so. The SER will grid assets within the same Corporate structure, projects will be provided in order to connect all provide the basis for an Energy Action Plan, due to the nature of the whole electricity market major wind projects and national transmission which should be adopted at the Spring Council the grid is a wonderful way of optimising profits - systems in Europe. 2010 and form the new EU energy policy. but it’s not a very market-friendly way”. Rory O’Neill, Imera’s ceo, said, “there are two main Commercial grid operator However, better news might be at hand, and factors driving the development of the North Sea seizes the moment EWEA themselves have welcomed the key role Grid – the EU’s call for increased interconnection given to offshore wind energy in the European Meanwhile Imera Ltd, a Dublin-based asset across Europe as a priority issue, and its target Commission’s Strategic Energy Review (SER) development company specialising in subsea of 20% of its required energy from renewable published late in 2008. power interconnectors and power transmission sources by 2020. Imera’s EuropaGrid will not only grids, has received EU approval for its first fast-track increased cross-border interconnection The review includes a commitment to publish interconnectors linking Ireland and the UK. in Europe, but also enable enormous growth in a blueprint for a North Sea offshore grid. With renewable generation developments.” 1,486 MW of capacity currently installed offshore The EU approval came in January 2009 as an EU and 30,882 MW more capacity planned by 2015, Exemption for Third Party Access on Imera’s East Imera’s approach is expected to allow electricity investor interest is high, but the sector needs West Interconnector (Ireland -UK). According produced from offshore wind generation to be a European legislative framework, including a to Grace Samodal, senior VP, commercial and traded in the single electricity market. It is also dedicated offshore grid to reach its full potential. trading, at Imera, “This exemption allows us to said to be the most efficient way of building operate on a merchant basis.” interconnectors and transmission connections for Although nine countries - one-third of the EU offshore generators as it eliminates duplication Member States - now have operational offshore At present, Imera holds five licences to build, and unused capacity on sub-sea cables. wind farms, the offshore electricity infrastructure own, and operate interconnectors and is actively needs to be vastly improved and the overall developing interconnectors between Ireland And O’Neill added, “because we are a private electricity grid updated and reinforced. Crucially, and the UK, France and the UK, and Belgium and company, we can build networks faster and the European Commission gives one of its aims the UK. These projects form the foundation for cheaper than most regulated organisations. We in the Strategic Energy Review as to “ensure EuropaGrid. also have access to the largest fleet of specialised the development of the grid to permit the cable-laying vessels and marine engineering The company is now set to build the North achievement of the EU’s renewable energy expertise through our parent company, Sea and Atlantic electricity grids, connecting objectives”. Oceanteam.” key markets and offshore wind farms as the “An offshore grid and increased interconnector foundation of a pan-European offshore electricity Imera is currently raising over €100M in capacity will allow large amounts of offshore network. The company claims that EuropaGrid investment to finance the development of the wind energy to be integrated into the electricity will enable the development of a true European first phase of EuropaGrid.

renewable energy focus January/February 2009 47 EU wind focus/location intelligence

Dena believes it is necessary to identify pilot zones in relatively shallow waters within 50km of the coast and to lay bundled cables into an expanded onshore grid. The agency says laying many parallel cables through sensitive ecolog- ical areas such as the Wadden Sea would create a serious risk to the undersea environment.

Belgium provides another national case study of the use of location intelligence. There, succes- sive Government directives on wind farming have also laid down criteria for the selection of zoning, and hence emphasised the beneﬁts of accurate geographic information.

The European Wind Atlas – and beyond

As with other EU countries, Belgium looked to the European Wind Atlas as a starting point for assessing wind energy applications. This atlas was first published in hard copy in 1989. It was intended as a comprehensive data bank of the wind climate across Europe, containing statistics from more than 200 weather stations and a Consultants create a series of 3D visualisations, photomontages, ZTVs (zones of theoretical visibility) and digital terrain (pictured) and elevation models, and use them to accurately predict how wind farms appear on the landscape. software pack for producing regional charts of wind speed and directions. Precise geographic data can be used to: In the construction phase of an offshore farm, for example, GIS can help engineers Researchers at the University of Brussels, acting ■ Help develop accurate analyses; and project managers to monitor and track on their agreed national criteria, then published ■ Present site plans for the official planning activities as they happen on and under the an inventory of suitable locations based on approval process; sea. This can be vital for ensuring the health regional zoning maps. This phase considered ■ Deliver ongoing project management; and safety of personnel and the protection of issues such as planning and building regula- ■ Provide contextual information to enable kit and infrastructure assets. tions and further investigations into topo- insurers to assess risk and provide cover graphic and environmental issues. The next step for the turbine machinery, connections And combining GIS and the internet allows was to work with utility companies to examine and cabling; different layers of information to be fed in the capacity of the grid and cost of connecting to multiple workstations and mobile units, with preferred locations. The study produced a giving different users an up-to-date picture of “capacity map” to help compute the bulk cost of ■ Mapping can also show noise contours weather conditions, wind speed, boat move- wind-generated electricity. around a potential site to help influence ments, wave heights and so on. All the infor- design and address any abatement needs. mation is captured, referenced, connected, The growth of professional standard mapping analysed and stored online. in the wind farm sector has now been strength- Bespoke web services are enabling users to ened by advances in surveying that make it embed mapping components directly into In Germany, the renewables industry has long possible to measure and portray the lay of their database applications, thus replacing recognised the importance of location to the the land in centimetric detail so that the most shipments of off-the-shelf data stacks that viability and efficiency of wind farms. The optimal positions for power facilities can be require onward processing. push to offshore generation is in part down found. Laser-driven airborne techniques, aerial to a lack of suitable land for onshore develop- photography and satellite imagery are central This trend towards web-based location intel- ments and the influence of stricter planning to the mix, along with ground-based data ligence is opening up engineering-grade data requirements. capture fixed with GPS. All of this can sit within for mainstream use that was once the sole a common geographic reference framework domain of geographic technologists. On the research side, the Deutsche Energie- for ease of sharing and associating data. An Agentur (dena), has used geographic infor- example of such a framework is OS MasterMap Benefits of GIS mation in a study of how best to integrate in Great Britain. on- and off-shore grid capacity. One of the GIS as a technical subject, far from being considerations was the need to compensate At the same time, the trend towards online the preserve of experts, is easy-to-use, and for the sizeable extra cost of laying founda- delivery and web services means developers its practical applications are likely to benefit tions and grid connections for the growing can have a fully hosted “location solution” sectors such as the wind power industry. number of offshore turbines. brought direct to the desktop rather than

48 renewable energy focus January/February 2009 EU wind focus/location intelligence

UK offshore boost to move forward The UK Government recently concluded its study on locations for future offshore energy developments, identifying scope for between 5,000 and 7,000 more offshore wind turbines. The conclusion of the UK Offshore Energy Strategic Environmental Assessment states that “there are no overriding environmental considerations to prevent the achievement of the offshore... wind elements of the programme”.

The Department of Energy and Climate Change minister Ed Miliband said in a statement that “in terms of electricity, oﬀshore wind power could potentially make the single biggest contribution to our 2020 renewable energy target”.

Renewable energy is central to the UK Government’s objectives to secure diverse energy supply and to reduce carbon dioxide emissions by 60% by 2050. The Government has set a target to generate 10% of the UK’s electricity supply from renewable sources by 2010. With onshore wind farms already making a considerable contribution in the UK, the new horizon for larger scale development lies oﬀshore.

Oﬀshore wind is a new activity for The Crown Estate – the body which owns the coastline around the UK - and areas of seabed have already been made available through two rounds of previous development since 2000. A third round of development is now underway (see image), with 96 ‘entities’ having expressed an interest in developing sites.

Developers that registered have been invited to bid for one or more of 9 development zones identiﬁed through the Marine Resource System by The Crown Estate. Successful bidders will have exclusive rights to develop wind farms in speciﬁed Zones, in partnership with The Crown Estate.

It is hoped that development of Round 3 zones will lead to 25 GW of wind power in by 2020, following around 7.2 GW resulting from the earlier rounds.

just a data feed. This has benefits in data not cause adverse effects on the integrity of clarify the development proposition to stake- storage, copyright management and time and nature reserves, Special Areas of Conservation holders and allow engineers to iterate turbine cost savings. Hosted services such as eMap- or Sites of Special Scientific interest. position in response to wind models, accessi- Site provide multiple search criteria and the bility, surface geology and visual impact. means of exporting data in different formats European and national legislation also for CAD, GIS and graphics software. governs the protection of plants and animal A key challenge for map data providers: to species through the mapping of bird migra- work with consultancies and wind energy Looking ahead, it is likely that more and more tion routes, local flight paths, foraging areas companies to continue to enhance data site projects will be managed through dedi- and cliff, headland, valley, ridge and other quality and functionality. cated web resources, just as in other land and habitats. When adjacent wind farms are property sectors that use advanced mapping proposed, geographic information can help to Solutions should be available in industry- solutions. In larger wind energy construction show the wider cumulative impacts on biodi- standard development environments such as projects, for example, authorised consultants versity through scenario models. Javascript and use internationally recognised and contractors will increasingly be given protocols such as XML (eXtensible Markup appropriate tiers of access to site plans and Return on investment Language), WMS (Web Map Service) and WFS other map data through secure log-ins to (Web Feature Service). The requirements of assist with asset management, health and Essentially, whether you call it a map or a application developers and solution providers safety, information storage and analysis. “spatial context”, the point of using geographic are best served through a suite of accessible, information is to help extract value from data interoperable web services that adhere to One of the core considerations going forward and provide a tangible return on investment. these standards. For the end user, the watch- will be the need to strike the right balance A mapping interface can inform vital deci- words are accuracy, cost-effectiveness and between cutting carbon emissions overall sions by showing information in a graphical ease-of-use. and sustaining biodiversity around specific form that can never be achieved by tables of site locations. In the UK, guidance produced figures or text alone. For example, viewing a by the British Wind Energy Association and fly-around animation built with geographic About the author nature conservation bodies recognises the co-ordinates, 3D visualisation tools and topo- Justin Saunders is co-founder and technical director potential benefits of wind energy as long as graphic and elevation mapping can help bring of the UK mapping provider, eMapSite (http://www. the “right development is in the right loca- a proposed development to life on screen – emapsite.com/renewables), and a member of the British Wind Energy Association (http://www.bwea. tion”. In this regard, geographic boundary ideal for presentations, planning applications com). analysis can help to ensure wind farms do and reports. The geographic context can help

renewable energy focus January/February 2009 49 RENEWABLE ENERGY FOCUS HANDBOOK The latest renewable energy Bent Sørensen information in one quick-reference ISBN 9780123747051 sourcebook January 2009/Hardback/532pp t A single source reference providing all the List Price: £64.99/€94.95 essential material needed by energy and environmental engineers on a day-to-day basis t Explores the full range of renewable energies including solar, wind, geothermal and bioenergy t Covers fundamentals, key techniques, engineering best practice and rules-of- Pre-order your copy today thumb 20% discount online* BUY NOW!

NEW EDITIONMAY 2009 OUT

RENEWABLE ENERGY, FUNDAMENTALS OF RENEWABLE ENERGY CONVERSION, RENEWABLE ENERGY EBOOK COLLECTION TRANSMISSION, AND PROCESSES Ultimate CD STORAGE Aldo V. da Rosa ISBN 9780080878218 Bent Sørensen ISBN 9780120885107 August 2008/Digital/3810pp ISBN 9780123742629 September 2005/Hardback/712pp Discount Price: December 2007/Hardback/344pp. Discount Price: £159.20/€236.00 Discount Price: £35.19/€44.34 List Price: £199.00/€295.00 £47.99/€69.56 List Price: £43.99/€55.42 List Price: £59.99/€86.95 A complete renewable energy library with Understand the engineering high-resolution images, hints, tips and rules of thumb easily found in a couple of clicks Overcome the challenges of conversion, principles that govern renewable transmission and storage of renewable energy processes – from fuel cells, % Complete Adobe PDF versions of six energy with this comprehensive guide electrolysers and processes for bestselling titles on one CD covering the latest methodologies hydrogen production to biomass and % Incredible value at a fraction of the cost windmills % Complete background on how of the print books renewable energy is transformed into power and the best methods for % Examines non-traditional energy Contains the unabridged texts of the transmitting and storing the energy processes and illustrates the best way to following titles: implement these processes produced Renewable Energy, 3rd ed. B. Sørensen % Includes all sources of renewable % Presents clear theory and physical Fundamentals of Renewable Energy energy examples of all principles relevant to A. V. da Rosa the study of renewable energy Practical Handbook of Photovoltaics T. Markvart Solar Cells T. Markvart Geothermal Energy H. Gupta Bioenergy – Realizing the Potential S. Silveira ORDER AT elsevierdirect.com/engineering Use offer code NEW12 at check out *Offer expires 28/02/2009. Please note that discounted pricing will not be visible until items are placed in your cart.

Sign up for our e-newsletter at elsevierdirect.com/alerts to receive special discounts, promotional offers, and information on new releases. EU wind focus Siemens Wind Power: a profile

THE SIEMENS WIND POWER BUSINESS IS A FORCE TO BE RECKONED WITH. ACTIVE IN THE WIND INDUSTRY FOR 25 YEARS, IT HAS 5,600 EMPLOYEES WITHIN AN ENERGY DIVISION EMPLOYING 73,500 AND 7,800 OF ITS WIND TURBINES HAVE BEEN INSTALLED WORLDWIDE, EQUIVALENT TO ALMOST 9GW OF INSTALLED CAPACITY. RENEWABLE ENERGY FOCUS TALKS TO CEO ANDREAS NAUEN ABOUT THE COMPANY’S PLANS FOR THE FUTURE. Alice Hohler and David Hopwood

Testing times: Erection of the ﬁrst Siemens direct drive test wind turbine near the city of Ringkøbing in Denmark (copyright Siemens). Siemens Energy will test two 3.6MW wind turbines with direct drive (DD) technology for a minimum of two years. The purpose of this project is to assess whether direct drive technology is competitive with geared machines for large turbines. The wind power business is one of the major contributors to the Siemens environmental portfolio.

50 renewable energy focus January/February 2009 EU wind focus/company proﬁle

The Siemens Wind Power Business Unit is part of one of the world’s leading engineering groups. This not only gives it a considerable edge when it comes to R&D, but also enviable access to a large balance sheet, a presence in many other renewable technologies, such as solar and biomass, and access to many of the components it uses in its turbines from other parts of the Siemens group.

But this position of strength doesn’t make Andreas Nauen, ceo of Siemens Wind Power, at all complacent, and Siemens will need to take advantages of all its resources and scale if it is to sail through the current economic climate unscathed. Many are predicting a tough year for the windpower industry in 2009, certainly in the first six months, with less project activity and much tighter margins along the value chain. As clean energy investment specialists’ New Energy Finance predict, “the continued lack of credit investment finance worldwide, and tax equity in the US, means that turbine manufacturers will see sharp falls in their order backlogs for the first two quarters of 2009. Good deals will still go ahead, backed by club debt deals, but it will feel like hard work”.

One of the most sobering lessons of the credit crunch to date has been that even the world’s largest institutions are not immune, so how does Siemens think it will be affected? “In recent years the wind power industry has seen an unprecedented growth phase,” begins Nauen, “but unfortunately the global economy is currently experiencing a slow down due to the financial crisis. This will also impact the wind power industry, including Siemens. Up until now, we have not had any cancellations of orders received. However, we are experiencing delays with future wind projects, because many of our customers are finding it more difficult to obtain financing. And as a consequence, the wind power industry will face lower growth rates than expected”.

Diversiﬁcation key

Nevertheless, Nauen believes that Siemens Wind Power’s diversiﬁcation will help it weather the storm.

Siemens is commercially, geographically and technologically diversified. Not only is it active along the wind power value chain – from turbines Offshore wind farm Burbo: Burbo Bank Offshore Wind Farm in Liverpool Bay with 25 wind to grid connection – but its operations are increasingly global, including turbines supplied by Siemens Energy (copyright Siemens). The wind turbines of type recent expansion in the US where renewable energy is poised to take SWT-3.6-107 are rated at 3.6MW each. The offshore wind farm was completed ahead of schedule in only 43 days, and has a total installed capacity of 90MW – supplying power to off under Barack Obama’s presidency (developments in recent weeks more than 80,000 households. have seen Obama throw the full weight of his political aspirations behind clean energy – see Obama: prospects for Alternative Energy, page 88). Furthermore, Siemens has been establishing a leading position in completed in 2011. And in September 2008, Siemens was awarded a offshore wind, building on its established track record onshore. €87 million contract to connect the 300MW Thanet wind farm to the UK grid. Siemens’ offshore success is based on strong sales of its 3.6 MW In October 2008, Siemens announced that it will supply E.ON with 90, turbine, of which 245 will be installed in four projects between now and 2.3MW wind turbines for the Rødsand II offshore wind farm in the Baltic Sea. With an installed capacity of 207MW, the project will be one of the largest offshore wind farms in the world and is due to be built in 2010. Total Siemens offshore capacity The deal, which includes a two-year service contract, is worth around ■ Installed*: 628 MW €275 million. ■ Orders: 1183 MW ■ Total: 1811 MW Offshore the key?

Nauen believes that the E.ON deal is just one that is consolidating Siemens offshore turbines installed to date Siemens’ position as a leader in the offshore wind industry. In August Turbine types Installed* Orders Total 2008, Siemens won the contract to supply (and grid connect) 140 SWT-2.3 299 MW 416 MW 715 MW turbines to the largest offshore wind farm in the world, the 500MW SWT-3.6 284 MW 767 MW 1051 MW Greater Gabbard offshore wind farm off the UK coast, due to be

renewable energy focus January/February 2009 51 EU wind focus/company proﬁle

Siemens oﬀshore projects – since 2000

2000 Middelgrunden, Denmark Burbo Banks, Great Britain Rhyl Flats, Great Britain ■ Location: near Copenhagen, Baltic Sea; ■ Location: Liverpool Bay, Irish Sea; ■ Location: North Wales, Irish Sea; ■ Installed Capacity: 40 MW; ■ Installed Capacity: 90 MW; ■ Installed Capacity: 90 MW; ■ Scope of supply: 20 * 2.0 MW; ■ Scope of supply: 25 * SWT-3.6-107; ■ Scope of supply: 25* SWT-3.6-107; ■ Distance to shore: 3,5 km, Water depth 2 – 6 m; ■ Distance to shore: 6 – 8 km, Water depth: max. ■ Distance to shore: 8-10 km; ■ Operator: Dong Energy, Middelgrundens 8 m; ■ Operator: RWE npower renewables. ■ Vindmøllelaug. Operator: Dong Energy. Horns Rev 2, Denmark 2002 2008 ■ Location: Blåvandshuk, North Sea; Samsø, Denmark Lynn / Inner Dowsing, Great Britain ■ Installed Capacity: 209.3 MW; ■ Location: near Samsø, Baltic Sea; ■ Location: Greater Wash, East coast of England, ■ Scope of Supply: 91 * SWT-2.3-93; ■ Installed Capacity: 23 MW; North Sea ■ Distance to shore: 27-35 km; Water depth: ■ Scope of supply: 10 * 2,3 MW; ■ Installed Capacity: 194.4 MW 9-17 m; ■ Distance to shore: 3,5 km, Water depth: 20 m; ■ Scope of supply: 54 * SWT-3.6-107 ■ Operator: Dong Energy. ■ ■ Operator: Samsø Havvind A/S; Distance to shore: 5 km, Water depth: 10 m 2009/2010 ■ 2003 Operator: Centrica Greater Gabbard, Great Britain Rødsand (Nysted), Denmark 2009 ■ Location: Thames estuary, North Sea; ■ Location: Southern Denmark, Baltic Sea; Gunﬂeet Sands, Great Britain ■ Installed Capacity: 504 MW; ■ Installed Capacity: 165,6 MW; ■ Location: Thames estuary, North Sea ■ Scope of supply: 140* SWT-3.6-107; ■ Scope of supply: 72 * SWT-2.3-93; ■ Installed Capacity: 108 MW ■ Distance to shore: 25 km, Water depth: 32 m; ■ Distance to shore: 6- 10 km , Water depth: ■ Scope of supply: 30* SWT-3.6-107 ■ Operator: Scottish & Southern Energy. ■ 6 – 9,5 m; Distance to shore: 7 – 9 km, Water depth: 8 m 2010 ■ ■ Operator: Dong Energy, E.on Sweden. Operator: Dong Energy Rødsand II (Nysted II), Denmark 2007 Gunﬂeet Sands II, Great Britain ■ Location: Southern Denmark, Baltic Sea; Lillgrund, Schweden ■ Location: Thames Estuary, North Sea; ■ Installed Capacity: 207 MW; ■ Location: Öresund, near Malmo, Baltic Sea; ■ Installed Capacity: 64,8 MW; ■ Scope of supply: 90 * SWT-2,3-93; ■ Installed Capacity: 110 MW; ■ Scope of supply: 18 * SWT-3.6-107; ■ Distance to shore: 25 km , Water depth: 5,5 – ■ Scope of supply: 48 * SWT-2.3-93; ■ Distance to shore: 8 km, Water depth: 8 – 18 m; 12 m; ■ Distance to shore: 10 km, Water depth: max. ■ Operator: Dong Energy. ■ Operator: E.on Sweden. 10m; ■ Operator: Vattenfall.

2012 for customers such as Scottish and Southern Energy, Centrica 56% share. However, its market share is expected to grow significantly plc, DONG Energy, and RWE AG. based on installed turbines and firm orders up to 2012, overtaking Vestas, and climbing possibly even higher. Taking current order volumes Offshore wind is therefore something of a priority for Siemens. “Maybe and forecasting offshore growth, Emerging Energy Research believes we are the only ones who really foster and really try offshore because Siemens could take as much as 47% of the offshore market by 2012. we believe there are completely different market rules,” says Nauen. It has dawned on the wind industry in recent times that simply taking Nauen’s confidence that offshore will be increasingly important for offshore technology and dumping it 60 miles out in the sea isn’t good Siemens reflects this statistic: “A round number would be for offshore to enough – new, specific offshore technology is needed: “As a turbine account for a quarter of our business and I see definitely that coming,” supplier you need to be confident that your technology works offshore he says. in harsh environments. Siemens has 17 years’ experience in offshore wind power and we know that our turbines work reliably in the Direct Drive technology sea. Some competitors don’t have the same experience with offshore wind power that we do”. Siemens’ direct drive technology, currently under trial, has helped boost its profile in the onshore and offshore markets. Siemens acquired the In addition to this approach, Nauen also believes that Siemens’ ability technology in 2004, with its acquisition of Bonus Energy A/S, the wind to supply offshore turbines as well as connect them to the grid gives turbine manufacturer, which had been working on direct drive for almost it an edge over other manufacturers. Recently, Siemens connected the 10 years. However, it has taken several years to reach beta testing. Lillgrund wind farm in Sweden and the Lynn / Inner Dowsing wind farm in the UK to their respective power grids. For both projects Siemens also The appeal of direct drive is the absence of a gearbox, which means delivered the wind turbines. However, Siemens has also bid and won fewer moving parts in a turbine, making it more reliable and durable orders for offshore wind farms without Siemens turbines. and less expensive to maintain (see ‘making wind more efficient’, pages 40-42, Renewable Energy Focus November/December 2008). On the down- Siemens’ share of the offshore market, based on turbines installed side, direct drive turbines are around 20% heavier than their gearless between 2000 and 2007, is currently 39%, second only to Vestas with a counterparts, although Siemens expects to reduce this differential over

52 renewable energy focus January/February 2009 EU wind focus/company proﬁle

time. Overall, though, lower O&M costs make direct drive turbines Moving forward particularly attractive for offshore use, where operating costs are almost twice those of onshore turbines, and unplanned maintenance can cost Nauen has plenty to look forward to in an uncertain world. His outlook as much as 10-15 times more. for the business is positive. In spite of a slight slow-down in the US, Siemens is making inroads in North America, and recently completed its Siemens is not the only turbine manufacturer investing in direct drive, first onshore project in Canada, where it plans to expand. but it is in the spotlight as it is in the process of testing two different direct drive 3.6MW turbines using permanent-magnet excited genera- “If you come to Europe, we see still the UK doing fine, especially in tors, one from Siemens Industry Sectors’ Large Drives Business Unit, and Scotland of course. Then there are some other countries picking up the other from marine generator supplier Converteam. The first model now; Italy, France. And Eastern Europe, with countries like Poland, Croatia started testing in July 2008, and the erection of the second turbine has and so on. Then you have all offshore, which we see progressing at the been postponed because of the late delivery of some components. moment from the UK, Denmark, further south to Germany and then However, Siemens is confident that the second trial will begin soon. The let’s see how far along the European coast south we may get. So that trials will take two years, so it is hardly surprising that Nauen is reticent is Europe. about early results on the technology, given what is at stake. “It just started, so it’s too early to give any indications. We have to await the For the time being, Asia is mostly Australia and New Zealand, simply results of the tests,” he says. because we can compete there with imported technology. But we are analysing how we can get started in China and have some activities Direct drive is by no means Siemens’ only cutting edge technology. going on there; we are already very active on the supply chain side. So Nauen is particularly proud of the company’s patented jointless blade business is advancing,” he says. manufacture. The bigger turbines get, the more their aerodynamics and robustness are pushed to the limit, all the more so when they You could say that. are used offshore where wind speeds tend to be higher. And again when it comes to offshore turbines, low O&M is a prime consideration; there is little margin for error. Siemens’ ‘one-shot’ fiberglass- About the authors: coated blade technique not only means there are no joints to be put David Hopwood is editor of renewable energy focus magazine. Alice Hohler is a freelance under stress, but also fewer adhesives and chemicals are used in the correspondent. manufacturing process.

Stay in touch with all the important issues, but more importantly... get the facts behind the headlines!

Fuel Cells Bulletin pulls together all the ‘must know’ information affecting the international fuel cell industry and presents it with comments and analysis

Every month subscribers have access to: business news mergers and acquisitions analysis of market information technical advances and new installations

Download your sample copy at www.fuelcellsbulletin.com

renewable energy focus January/February 2009 53 EU wind focus Turbine innovation at BWEA30

IT IS NOWHERE ENGRAVED IN STONE THAT THE PREVAILING THREE- BLADE “PROPELLER ON A STICK” WIND TURBINE MODEL WILL STILL BE DOMINANT TWO OR THREE DECADES FROM NOW. TECHNICAL INNOVATION IN WIND ENERGY IS ALIVE AND WELL, AS EVIDENCED AT THE BRITISH WIND ENERGY ASSOCIATION’S 30TH ANNIVERSARY SHOW IN LONDON LATE LAST YEAR. SO IF YOU’RE INTERESTED IN WHICH INNOVATORS ARE CHALLENGING THE PREVAILING MODEL, READ ON… George Marsh

NHeolis blades do not generate lift in the same As a precursor to the European Wind Energy way as a conventional turbine but instead exploit Association’s EWEC conference – taking place the Venturi effect. This occurs when a “fluid” (in in Marseille in March – it seems the perfect time this case air) is driven down a tube that is wider at the entry end than at the exit, like a windsock to revisit some of the more ingenious devices at an airfield. The resulting constriction speeds that were on display in London, late last year, at up the flow and increases the pressure in the the BWEA’s 30-year anniversary event. downstream end of the tube/windsock.

French company NHeolis, for example, featured a demonstration unit at the event, and claims a breakthrough in wind turbine design with an innovative blade form that amplifies the strength of the wind impinging on the blade, thus increasing rotor efficiency. Although in this case the rotor axis is still horizontal, the blades/ sails are very different from normal blades.

A conventional wind turbine blade operates like an aircraft wing on its side, developing lift by virtue of its aerodynamic shape. Because the blade is attached to a horizontal shaft, this lift is converted into turning moment.

NHeolis blades do not generate lift in the same way but instead exploit the Venturi effect. This occurs when a “fluid” (in this case air) is driven down a tube that is wider at the entry end than at the exit, like a windsock at an airfield. The resulting constriction speeds up the flow and increases the pressure in the downstream end of the tube/windsock. Imagine a windsock being cut in half longitudinally, then take one of the concave halves and attach the wide end to a horizontal shaft such that the blade/”windsock”

54 renewable energy focus January/February 2009 EU wind focus/turbine innovation

Aerospace Research Centre, and wind tunnel tested at CNES, the French Centre for Scien- tific Research, is two metres long and weighs some 21kg. Maximum rotor diameter (at the trailing edge) is 2.3m. NHelios says that the system is three or four times more compact than a standard turbine, but provides the same power. CNES is undertaking modelling studies to assess the viability of larger turbines.

AeroCam

Another application of intelligent science, at least according to Dallas, USA-based Broad- Star Wind Systems, is the AeroCam wind turbine concept, which provided a compelling visual focus at BWEA 30. According to Stephen Else, president of BroadStar, the A third turbine concept aired at the BWEA show was Nordic company can deliver 250kW and 500kW AeroCam machines Windpower’s N1000 1MW two-blader. This company, for US$250,000 and US$500,000 respectively, making it the This too has its rotor turning around a horizontal originally Swedish but now a US enterprise, has revisited “first turbine to break the US$1/watt cost barrier”. axis but is far from conventional. An AeroCam the two-blade WT configuration that fell out of favour two decades or so ago, arguing that this is the time to resurrect rotor is reminiscent of a water wheel, but more its advantages. extends at an angle downwind and can rotate “articulate”. Each of the parallel “paddle” rotor with the shaft (see diagram). Attach two more blades alters its pitch continuously, according increase wind speeds. According to Tom similar half ”windsocks” to the shaft so that all to where it is in its 360 degree rotational Stephens, BroadStar’s vice president of research three form the “blades” of a wind turbine. cycle. Those at the top of the trajectory and and design, “because AeroCam packs so much advancing into wind become near-horizontal so efficiency into its compact configuration, it’s Although each “windsock” blade lacks the that optimum ”wing” lift is generated over the opening up opportunities to businesses and forward facing half of a full tubular structure, the aerodynamic profile, thereby exerting maximum communities that could never have consid- constricting effect on captured air is maintained turning moment on the rotor. Retreating blades ered wind energy before. We believe this has by the pressure of the oncoming wind. Thus, if it become more nearly vertical, providing down- the potential to redefine the market.” is correctly aligned, thanks to the Venturi effect, wind “sails” so that they too contribute to the the blade reacts to the wind by trying to move turning effect. The cyclical change of blade “Because it can be deployed at low level, away from it, thus turning the shaft. orientation is brought about mechanically by AeroCam can be used to capture surface wind an offset cam system. energy without disrupting the airflows that NHeolis produces its highly volumetric blades larger turbines need to operate effectively. in carbon-epoxy composite, each half “wind- Like the NHeolis, BroadStar’s patented system This makes them suitable, says the company, sock” sail (the French company calls it a is said to be able to operate in wind extremes. for installing between large utility turbines at shroud) being mounted to and stiffened by a Some models can extract energy from air flows new and existing wind farms, thereby offering composite tube or spar. as low as 4mph, to winds in excess of 80mph. a means to enhance energy production. Barriers Efficiency is said to be high because each to wind energy development might be over- The rotor shaft drives a synchronous generator. blade sees air impinging at equal speed all the come by installing low-profile wind farms based The entire assembly is mounted on a vertical way along its length, though the design lacks on AeroCam, providing a higher power yield pivot so that it can rotate into wind, driven the low airspeed, low-lift regime experienced per square mile than conventional turbines. by a fixed rudder. The initial model develops near the hub of a conventional HAWT. Conse- Small-scale generation can be contemplated 3kW (nominal) and can be mounted on a steel quently, says BroadStar, AeroCam is approxi- by municipalities, making property assets from lattice tower or on a roof. It is said to behave mately 30% smaller than a normal HAWT low-rise to commercial buildings and shopping well in turbulent flow so that nearby obsta- developing similar power. malls to city parks their own generators. cles do not unduly impede operation. A cut-in wind speed of 2.5m/s (9km/s) and maximum Because the system’s rotors are relatively small This point is emphasised by a recent agreement speed, verified in wind tunnel testing, of 45m/s vertically, hub heights are low and special cranes signed with US retailer JCPenney. AeroCams (164kph) are claimed, giving an unusually wide are not needed for installation and maintenance. will be installed at a 1.6m ft2 distribution centre operating window so that an annual output in The horizontal orientation of the blades makes in Reno, Nevada. According to Stephen Else, the region of 3400kWh might be expected. the system inherently stable, say the makers, president of BroadStar, his company can deliver enabling it to operate in turbulence with low 250kW and 500kW machines for US$250,000 Electromagnetic and aerodynamic brakes noise, vibration and wear. Devices, particularly and US$500,000 respectively, making it the “first are incorporated. Noise is said to be minimal single-rotor types, are therefore readily inte- turbine to break the US$1/watt cost barrier”. thanks to lower wind shear. grated with low and high-rise urban roofs. Else adds that AeroCam is well suited to off-grid distributed electricity generation, though with Each blade, the design of which was opti- They can be deployed in architectural enclo- the additional possibility, where appropriate, of mised with the help of ONERA, the French sures designed to concentrate airflows and connecting to the grid via smart metres.

renewable energy focus January/February 2009 55 EU wind focus/turbine innovation

can be used, making the blades both lighter The company itself is determined to move and cheaper to produce than conventional forward with its design. Alex Potier, global equivalents. This, along with the decrease in sales manager for Nordic Windpower, says, the number of blades needed, reduces blade “with an innovative and cost-effective tech- cost overall. nology, our order book is growing strong. Over the next several years, the company is Although a two-bladed turbine is less efficient poised to earn the trust and respect of wind than a three-blader, Nordic Windpower says farm developers around the world as we that the difference in annual energy produc- continue to deliver new and reliable wind tion of around 2%-3% can readily be compen- turbines designs.” sated for by a 1% increase in turbine diameter. According to ceo Steve Taber, two-bladers Nordic Windpower originally fell out of favour less because of the disadvantages noted above, rather because the two-blade configuration had not success- has revisited fully been modelled in software and was therefore more difficult to engineer. Now, he says, Blue H’s platform carries a modest demonstration turbine, the company operates such a programme, the two-blade but the company hopes to build a full-scale 90MW wind developed and refined in Sweden over almost farm at 120m depth, off the coast of Italy. three decades. WT configuration Two-blader revisited Taber points out that a necessary prerequisite A third turbine concept aired at the BWEA of a successful two-blade design is a teetering that fell out show was Nordic Windpower’s N1000 1MW hub – a term adopted from the helicopter two-blader. This company, originally Swedish world meaning that the blades are attached but now a US enterprise, has revisited the to the turbine shaft via hinges. Although of favour two two-blade WT configuration that fell out of these have only a small range of movement, favour two decades or so ago, arguing that +/− 2 degrees, this motion has a decisive influ- this is the time to resurrect its advantages. ence on the loads acting on the turbine system. decades or so Disadvantages, most notably fatigue and noise Associated damping ensures that dynamic originally experienced with smaller “farm-scale” loads are passed into the drive train more two-bladers, are scarcely noticed at utility evenly, mitigating the vibration and fatigue ago, arguing that scale, says the company. Visual disturbance that would otherwise ensue. These are further that some members of the public felt with fast reduced by enclosing the gearbox, drive shaft this is the time revolving small-scale rotors is less evident in and generator within a unified tubular housing slower revolving large rotors. which serves to retain the system and allows forces to dissipate away from the gearbox. to resurrect its One important advantage is that, unlike a three- blade rotor that has to be lifted to the hub by Two twin-blade turbines, of 2MW and 3MW, crane, a two-blader can be mounted to the operated for six years to 1988, provided advantages nacelle on the ground, reducing deployment invaluable base data. A second, subsequently The world’s largest turbine? time and cost. Another is that, with only two commissioned 3MW prototype is still oper- blades to look after rather than three, mainte- ating and has become the world record holder, A fourth wind turbine concept, aired in an nance costs are reduced. A third plus is that, claims Nordic, for power production and accu- entertaining “Dragon’s Den” type session at thanks to the lack of a third blade, head weight mulated operating hours. Steve Taber indi- BWEA 30 (Dragon’s Den being an English is reduced. This means that, for the same power cates that it has seen 11 years in service with TV programme in which a panel of million- output, the drive train and gearbox can be less no major component failures and almost zero aire investor “dragons” pass judgment on highly rated and therefore lighter. maintenance. The only attention required, he entrepreneurial ideas), breaks the mould asserts, was an occasional service of the elas- on scale alone, though its configuration is Basic wind turbine science says that, to capture tomeric hinges. Currently four N-1000 turbines conventional. a certain amount of wind, a rotor needs a are operating in Sweden. certain aerodynamic area. Loss of area occa- The Britannia 7.5MW machine, currently under sioned by adopting a two-blade configura- Caution shown by investors daunted by unfa- development by Clipper Wind Power Inc, will tion rather than three is compensated for by miliar technology led to the unfortunate have a 150m diameter rotor and a tower more increasing the blade’s chord (edge-to-edge bankruptcy of the original Swedish company, than 100m high, substantially higher than Big dimension or width). Blade thickness is then which was subsequently acquired by US inter- Ben. As if this were not enough, “presenter” increased to maintain a blade thickness- ests. Recently, investor Goldman Sachs took a David Steele spoke of a potential 10MW to-chord ratio of about 15%-20%. A thicker gamble on the two-blade concept, injecting machine currently under consideration. Advo- blade is inherently a stronger one. Because funds to enable the 1MW model to progress cating the merits of scale, Steele said, “we’re of this form strength, less structural material to market. talking long distances offshore for machines

56 renewable energy focus January/February 2009 EU wind focus/turbine innovation

like this. The expense of working in deep water many miles from shore means it makes sense to maximise the available power for each installation. Thanks to advanced design, our 7.5MW machine will have a similar weight to a typical 5-6MW machine of today.”

The technology of the world’s largest turbine is being adapted from that of Clipper’s Liberty 2.5MW turbine, which has earned plaudits from the US Department of Energy. A novel drive train architecture is said to be able to accommodate the low rotor speed, high torque and high point loads that charac- terise large-scale conventionally-configured machines. The Clipper solution is to mount the main rotor shaft firmly within twin tapered- roller main bearings, so that shaft axial movement and misalignment are prevented, and split the input torque to four permanent magnet generators. Together with two-stage Vertax’s VAWT, with its relatively few moving parts and lower stresses, could “serve for 40 years with minimal maintenance and helical gearing, this approach greatly reduces high reliability”, according to the company. the stresses found in standard three-stage planetary gearboxes used in today’s multi two-year test period. Siemens’ cto, Henrik platforms, in the manner of many offshore oil megawatt machines. Stiesdal, has suggested that direct drive and gas installations. could compete with geared drive in large Additionally, it provides redundancy in the turbine sizes. Blue H, a firm registered in the UK but based in load path and in case of generator outage. the Netherlands, has built a 25m wide prototype Other forward looking features likely to influ- A vertical axis platform and located it in 113m of water off ence “Project Britannia” include the placing of Brindisi, Italy, some 21km from shore. The plat- high-speed gear sets in “cartridges” that can be Vertax Wind Ltd believes a better answer form carries a modest demonstration turbine, replaced without gearbox removal, the provi- for offshore could be the vertical axis wind but the company hopes to build a full-scale sion of multiple inspection ports, an advanced turbine, engineered in sizes up to 10MW. 90MW wind farm at 120m depth in the region. gearbox health monitoring system, and an on-board jib hoist to facilitate on-site main- Peter Hunter of Vertax told BWEA 30 delegates As Neil Bastick of Blue H told the BWEA Dragons’ tenance without the need for a crane. Perma- that a large VAWT would be a “steady plodder” Den audience, “we think this is offshore wind’s nent magnet generators are relatively simple, compared with the more efficient “Formula secret hope for grid parity. There’s no assembly should require little maintenance and generate 1” HAWT, but is just what the offshore sector out at sea, no seabed preparation. Standard direct current, which is then converted by needs because, with its relatively few moving cranes can lower the tower and wind turbine high-power electronics to alternating current parts and lower stresses, it could serve for aboard the platform in harbour or close to at the required frequency. 40 years with minimal maintenance and shore. You can do the work in the winter and high reliability. tow the platform to its intended location in The first 7.5MW Britannia is already spoken summer when the weather is kinder.” for, having been ordered by the UK’s Crown The system could, says Hunter, keep working Estate so that it can better appreciate the over a higher band of wind speed than The platform is held in position by chains challenges faced in developing wind turbines conventional HAWTs, resulting in a higher attached to counterweights on the sea bed. for deep water deployment. Development capacity factor. A VAWT could drive a perma- Bastick believes the system is best suited to is now proceeding at Clipper Wind Power’s nent magnet generator directly rather than depths over about 35m. British base at Blythe, Northumberland, with through a gearbox. Much of the support support from the UK’s North-East Regional structure could be concrete, saving cost and And as we go to press it has been announced Development Agency. The Blyth-based New avoiding metal supply chain constraints. A stall that Project Deepwater Turbine, a consortium and Renewable Energy Centre (NaREC) is to regulation system is being trialled. led by Blue H and including BAE Systems, EDF evaluate the drive train, rotor and generators. Energy, CEFAS, SLP Energy and Romax, has Floater been selected by the UK’s Energy Technology An erected prototype is expected to go on Institute (ETI) as one of the first projects to line in 2012. It will be interesting to see how Installing foundations in the seabed for enor- receive funds as part of its £1.1 billion initia- Clipper’s concept fares against the direct mous offshore machines could give engi- tive. This specific project will aim to develop an drive (gearless) technology being investigated neers an equally enormous headache. One integrated solution for a 5MW floating turbine by Siemens Energy as it installs two machines, way around this is to avoid seabed structures deployed offshore, in waters between 30 and of 2.3 and 3.6MW power, off Denmark for a altogether by installing turbines on floating 300 metres deep.

renewable energy focus January/February 2009 57 Feature article Full steam ahead for PV in US homes?

THE US CONGRESS FINALLY VOTED TO EXTEND AND ENHANCE TAX CREDITS FOR SOME RENEWABLES, NOTABLY SOLAR. BUT WILL THIS PROVIDE THE BOOST THAT THE RESIDENTIAL SECTOR IN THE USA HAS BEEN WAITING FOR? MARK BOLINGER, GALEN BARBOSE, AND RYAN WISER OF THE LAWRENCE BERKELEY NATIONAL LABORATORY CONSIDER THE IMPLICATIONS OF THE LEGISLATION FOR EXISTING INCENTIVES.

In October 2008, the United States Congress extended both the residential and commercial solar investment tax credits (ITCs) for an unprecedented 8 years. It also lifted the US$2,000 cap on the residential credit, removed the prohibition on utility use of the commercial credit, and eliminated restrictions on the use of both credits in conjunction with the Alternative Minimum Tax.

These significant changes, which apply to systems placed in service on or after 1 January 2009, will increase the value of the solar credits for residential system owners in particular, and are likely – in conjunction with state, local, and utility rebate programmes targeting solar – to spur significant growth in residential, commercial, and utility-scale photovoltaic (PV) installations in the years ahead.

Significantly, there are three areas in which removal of the US$2,000 cap (on the residential ITC) will have significant implications for PV rebate programme administrators, PV system owners, and the PV industry:

■ Reduced rebate levels to at least partially compensate for the more- Sign of things to come? SOLARA is the first development to be delivered under the California valuable ITC; Energy Commission's Zero Energy New Homes program. This multi-family affordable ■ Reconsideration of complementary low-interest loan programmes – housing complex is located in Poway, CA. The total 141 kW PV system, which is located on the “subsidised energy financing”; roof of each building and most of the carorts, will function as 63 separate systems serving 56 families. Most of the cost of the PV system and energy efficiency upgrades to the project were ■ Third-party financing. covered by state and federal programs available to affordable housing developers (image courtesy of Community HousingWorks, Owner/Developer). State, local, and utility PV programmes – effect of rebates amount of support to the residential sector, figure 1 shows the maximum With the exception of the smallest systems, which have not been impacted amount by which these rebate levels could – in theory – be reduced starting by the US$2,000 cap on the residential ITC, most residential PV systems in 2009 once the ITC cap is gone; this assumes that system owners are not installed – starting in 2009 – will realise significant additional value from left any worse off than they are now on an after-tax basis – under current the elimination of the ITC cap. State, local, and utility PV programme rebate levels and the US$2,000 ITC cap. Note that figure 1 assumes that administrators may, in turn, wish to ratchet down the size of the rebates rebates are non-taxable, which is the case if the rebate is provided through they offer, in order to stretch fixed programme budgets and avoid over- a “utility programme” (see details of the original report, noted at the end of the stimulating the market. Indeed, at least three major PV programs have article, for a discussion of what constitutes a “utility programme”). already reduced their incentive levels for residential PV as a result of the ITC cap removal, and others are considering the same. This tax distinction is important because, if the rebates are considered to be federally taxable income, then a rebate recipient can claim the 30% Working with the 2008 residential rebates (i.e. prior to the elimination of the ITC on the full cost (or “tax credit basis”) of the system. If, however, the ITC cap) and assuming that they were set at a level that provided the desired rebates are not taxable income, then the rebate recipient must reduce,

58 renewable energy focus January/February 2009 PV/US policy

$3.5 System owner’s income tax bracket does not impact results for non-taxable rebates $3.0

$2.5

$2.0

$1.5

$1.0 $1/W starting rebate $2/W starting rebate $0.5 $3/W starting rebate $4/W starting rebate $0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.06.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0

$/W by which non-taxable rebate could be reduced be could rebate non-taxable which by $/W System Size (kW)

Figure 1: Maximum amount by which a non-taxable rebate can be reduced in response to the removal of the US$2,000 cap on the residential ITC by the amount of the rebate, the tax credit basis to which the federal ITC means that the removal of the US$2,000 ITC cap provides greater benefit applies. The magnitudes shown in figure 1 would, therefore, be somewhat to a system receiving a smaller non-taxable rebate. Such a system can, in larger if taxable rebates were assumed. theory, therefore withstand a larger reduction in the size of the rebate.

For non-taxable rebates, the magnitude of the potential rebate reduction While the idea of shifting part of the cost of supporting residential PV to depends only on the starting rebate level as well as the size and cost the Federal Government must look quite appealing to many State Utility of the system (figure 1 assumes that per-unit installed costs decline along a and local PV programme managers, there are, nevertheless, several factors concave curve from US$10.50/W at 0.5 kW to US$7.75/W at 10 kW). As shown, that programme managers may wish to consider when deciding whether small systems (0.5 kW–2 kW) cannot withstand as much of a rebate reduc- – or by how much – to reduce residential rebate levels. These include: tion as can larger systems, because smaller systems will benefit less from the removal of the US$2,000 cap (i.e. they were not as impacted by the ■ PV system owners may have to wait up to a year or more (depending cap in the first place). Above roughly 3 kW, however, the curves more on how early in the year the system is installed) before they file their or less level out, revealing that a rebate currently set at US$1/W could annual tax returns and realise the benefit of the ITC. During this be reduced by as much as US$2.5/W (in theory, going negative) without waiting period, the accrued dollar benefit of the ITC must effectively leaving the system owner any worse off on an after-tax basis. be financed by some other means, which renders the ITC less useful than an equivalent up-front cash rebate; In this light, it is worth noting Meanwhile, starting with a non-taxable rebate of US$4/W, the size of the that the idea of temporarily (i.e. for projects completed in 2009 and potential reduction is smaller, at roughly US$1.25/W. Falling in between 2010 only) giving taxpayers a choice between the existing ITC or a these two extremes are starting rebate levels of US$2/W and US$3/W. This cash grant of equivalent value (to be disbursed within 60 days of rank-ordering makes intuitive sense: a small non-taxable rebate reduces the project completion) has been included in an early version of the project’s “tax credit basis” by less than a large non-taxable rebate, which much-anticipated “stimulus bill” currently being debated by Congress; ■ With the US$2,000 cap removed, the uncapped ITC may be too large for some taxpayers to absorb in the first year, or perhaps ever (in the Reacting to the Federal policy changes most extreme cases). Although any unused portion of the credit can be rolled forward at least through 2016, doing so reduces the value of State, local, and utility PV program administrators must remain nimble the credit in current dollars; Again, the grant program proposed in an in responding to the recent changes in federal solar policy: early version of the stimulus bill (and described in the previous bullet) ■ Most obviously, programme managers may wish to reduce their would address this issue, as would a “refundable” ITC, which has also rebate levels to at least partially compensate for the more-valuable been discussed (i.e., if the taxpayer cannot make use of some or all of ITC; the credit in the year it is generated, the government would refund ■ Complementary low-interest loan programs that can be the difference via a cash payment); characterised as “subsidised energy financing” may no longer make ■ In recent years, the PV market in the US has been increasingly domi- sense for residential PV, and should potentially be re-tooled (to nated by the commercial sector. Maintaining the status quo on resi- focus on providing “unsubsidised” support) or re-directed at other dential rebate levels, or reducing them by less is possible, and may clean technologies for which subsidised energy financing is not as help to restore more of a balance between the residential and large an issue; commercial markets; ■ At the same time, third-party financing and ownership models ■ Somewhat related, figure 1 assumes that current rebate levels are set that have recently begun to make inroads into the residential sector may now face a somewhat harder sell. Thus, there may be at the “correct” level to provide the desired amount of support for the a continuing need for policies that address financial barriers and residential sector. If instead current residential rebate levels are too support innovative financing models. low to adequately stimulate desired market demand, then the results shown in figure 1 may be too aggressive.

renewable energy focus January/February 2009 59 PV/US policy

purchase agreements (PPAs), that enable site hosts to “go solar” without About the report the associated up-front costs and, in some cases, risks of ownership. By engaging “tax equity” investors with an appetite for tax credits, these This article is adapted from a longer Berkeley Lab report entitled third-party ownership structures also enable the efficient use of the “Shaking Up the Residential PV Market: Implications of Recent Changes to the ITC” and available at http://eetd.lbl.gov/EA/EMP/cases/res-itc- substantial tax benefits (including the commercial ITC and accelerated report.pdf. tax depreciation) provided to a commercial PV project.

This work was funded by the Clean Energy States Alliance, and by Because commercial PV projects have historically received greater tax the US Department of Energy (the Office of Energy Efficiency and benefits than residential systems, one would think that – other potential Renewable Energy, Solar Energy Technologies Program, as well as the benefits aside – the ability to monetise and pass along these greater tax Office of Electricity Delivery and Energy Reliability, Permitting, Siting and Analysis) under Contract No. DE-AC02-05CH11231. benefits would have made the residential sector a particularly attractive market for commercial third-party ownership. Yet, due to a combination of heightened credit concerns, larger proportional transaction costs, and ■ Finally, leaving residential rebate levels unchanged should accelerate the a simple need to first gain comfort with the structures in a commercial adoption of residential PV at no extra per-system cost to the programme. setting, third-party ownership has been somewhat slower in coming to This motivation, however, must be weighed against the foregone benefit the residential sector than to the commercial sector. of any additional installations that could be supported by reducing rebate levels – and thereby stretching fixed programme budgets further. Within the past year, however, several PV installers have begun to offer third-party leases and PPAs to the residential sector. Just as these offer- ings have begun to make inroads, however, the elimination of the Why could subsidised loan programmes lose their luster? US$2,000 residential ITC cap starting in 2009 has removed a major advan- A number of State and local Government agencies offer low-interest loan tage of these third-party ownership structures in the residential sector. programmes to help finance the installation of PV systems. Although Specifically, going forward, commercial and residential systems will be on these programmes can ease the burden of purchasing a PV system, if the roughly equal footing from a tax perspective, each receiving net tax bene- Internal Revenue Service considers such a loan to be “subsidised energy fits equal to about 30% of the installed costs on a present value basis. financing,” then the 30% ITC will only apply to the portion of installed project costs not financed by the loan. The loss of this tax-based arbitrage opportunity, however, does not necessarily sound the death knell for third-party ownership in the residential With the residential ITC capped at just US$2,000, the reduction or loss sector. As discussed earlier, with state and local PV programmes reducing of the ITC due to the use of subsidised energy financing has – up to their residential rebate levels in response to the ITC revisions, system this point – not necessarily been a losing proposition. Depending on owners having to wait up to a year or more to realise the tax benefits of the specifics of the programme, attractive financing terms may actually the ITC, and “subsidised” financing programmes no longer making much outweigh the loss of the capped ITC. This is particularly true for larger sense for PV, there are likely to be fewer financing options available to residential PV systems, where the capped ITC represents a smaller propor- cash-strapped prospective PV owners. This could potentially create a tion of the overall costs that need to be financed. greater need for third-party ownership than currently exists. Further- more, third-party ownership provides other potentially attractive benefits Now that the cap has been lifted, however, much more economic value besides tax credit monetisation (e.g., no performance risk), which may is at stake. A 4 kW system installed at US$8.5/W and receiving a US$3/W continue to provide a compelling rationale for third-party ownership of rebate will now be eligible for an ITC of either US$10,200 or US$6,600, residential PV systems. depending on whether or not the rebate is taxable. The loss of this amount of tax credit value (or some fraction thereof, if only a portion At the same time, however, many of the tax equity investors that have or the system is financed through such a programme) will obviously traditionally financed these third-party-owned projects – i.e. large banks impinge upon system economics much more than the loss of just and insurance companies – have withdrawn from the PV market as their US$2,000, and is likely to make even the most aggressive low-interest need to shelter taxable income has disappeared along with their profits, loan programmes uneconomical. amidst the global financial crisis. Furthermore, if some of the changes to the ITC proposed in early versions of the stimulus package (and Although low-interest loan programmes may continue to fill an impor- described above) come to fruition – e.g. making the credit refundable, tant need for those residents who are unable to make efficient use of or exchanging it altogether for a cash grant of equivalent value – then the uncapped ITC, it is now more important than ever to understand the need for third-party ownership in the residential sector will likely whether such programmes are at risk of being considered “subsidised diminish further. energy financing,” and to take steps to minimise the potential for such a characterisation. Finally, it is worth noting that an early version of the Conclusion stimulus bill currently being debated by Congress eliminates this “anti- double-dipping” provision altogether, which (if ultimately signed into law) Although policy support for emerging technologies generally seeks to would allow projects to benefit from both subsidised financing and the reward early adopters, in the case of the residential ITC, procrastinators ITC without any of the negative consequences described above. have been the beneficiaries – initially in 2006 when the capped ITC was first implemented, 2008 when the US$2,000 cap was eventually lifted Third-party ownership structures may still have potential – starting in 2009 , and perhaps once again in 2009 as a result of the impending stimulus package, remains to be seen. Though welcomed by For several years now, the non-residential sector in the USA has benefited the industry and prospective PV owners, these changes in federal tax from third-party PV financing structures, including leasing and power policy have required reactive planning at the state and local levels.

60 renewable energy focus January/February 2009 It’s not only a quality promise, it’s a reliable partnership.

Our passion for solar energy has made us a world leader in the fi eld. State-of-the-art designs and rigorous quality control result in products that meet the highest international standards. We deliver increased energy Solar powering a green future ™ efficiency and environmental benefits, backed with dedicated service. Because with Suntech, you can rely on the product and on the people. www.suntech-power.com Feature article Can solar PV beat the downturn?

NOT ONLY HAS THE USA EXTENDED THE ITC FEDERAL TAX INCENTIVE FOR 8 YEARS AND REMOVED THE UTILITY EXEMPTION SO THAT UTILITIES CAN NOW PARTICIPATE SEE FULL STEAM AHEAD FOR SOLAR PV IN US HOMES, PAGE 58, BUT OTHER COUNTRIES ARE TAKING THEIR OWN SIGNIFICANT STEPS TO BOOST SOLAR. IS THE TIME RIGHT FOR THE PHOTOVOLTAIC PV INDUSTRY  WITH ITS TECHNOLOGIES STILL A SMALL PART OF THE GLOBAL ENERGY MIX  TO SHOW FURTHER DRAMATIC GROWTH? OR WILL THE FINANCIAL CRISIS PROVE DIFFICULT TO RIDE OUT IN THE NEAR TERM? Paula Mints, David Hopwood

First the good news. Despite the economic doom and gloom enveloping has instituted triggers to control programme growth), many other coun- the world at present – which is bound to have an effect on clean energy tries now have introduced feed in tariffs – from Ukraine to Bulgaria. And – the solar PV industry still has a lot going for it. Aside from the argu- EU markets such as France and Italy are being touted as the next big ments of climate change, energy security, and off grid potential in the movers. The most attractive feed-in tariffs can now be found in Italy. developing world, the fact that the USA is increasingly seen as a huge The market is growing rapidly as investors have discovered the oppor- potential market – supported by new President Obama – could help tunities, certainly with currently decreasing module prices. In terms of in time take some of the pressure off Spain and Germany (which have size, Italy will still be smaller than Spain in 2009, but with many projects pretty much driven the industry in terms of demand in recent years, but under development, Italy could become the second largest market in in light of recent changes to those countries’ feed-in tariffs will cool). the world in 2010.

In October 2008, the United States Congress extended both the residential and commercial solar investment tax credits (ITCs) for an unprec- Spain Feed-In Tariff Rates edented 8 years. It also lifted the US$2,000 cap on the residential credit, 2009 removed the prohibition on utility use of the commercial credit, and Tariff Term Cap eliminated restrictions on the use of both credits in conjunction with Classification1 System Size (€/kWh) Degression (years) (MWp) the Alternative Minimum Tax. These significant changes, which apply Rooftop or < 20.0 – kWp 0.340 According 25 BLDG 2009 to the 26.7 to systems placed in service on or after 1 January 2009, will increase demand, Rooftop or 20-kWp – 2.0-MWp 0.32010% reduc- 25 240.0 the value of the solar credits for residential system owners in partic- BLDG 2009 tion per ular, and are likely – in conjunction with state, local, and utility rebate year if the Ground 2009 <10.0 – MWp 0.320cap is met, 25 233.3 programmes targeting solar – to spur significant growth in residential, 50% raise Rooftop or < 20.0 – kWp 0.306if cap not 25 29.3 commercial, and utility-scale photovoltaic (PV) installations in the USA BLDG 2010 reached in 2 in the years ahead. consecutive Rooftop or 20-kWp – 2.0-MWp 0.288terms.2 25 264.0 BLDG 2010

In addition to the US move, Japan’s Government plans to restart its resi- Ground 2010 <10.0-MWp 0.288 25 206.7 dential rooftop programme, and in Europe aside from the more mature Change in Spain: After a period of dynamic growth, Spain’s change to its Feed-in-Tariﬀ (FiT) markets of Spain (which has introduced a cap), and Germany (which will cool the market.

62 renewable energy focus January/February 2009 PV/Market outlook

Table 1 – Regional PV demand, 2000–2008* removing the need to own the means of electricity production. While Region/country GW percentage (%) systems are still sold, and system ownership should and will remain an USA 1407.4 10% important industry and personal goal, new business models return the Canada 46.8 0% energy paradigm to the end users’ comfort zone – buying ready kilowatt North America 1454.2 10% hours (kWh), rather than their own solar hardware. Latin America 173.0 1% As if the preceding strong developments were not enough, the new US Germany 5761.1 41% Administration of Barack Obama includes forward thinking pragmatists France 88.5 1% who see the coming green economy as imperative for the economy Netherlands 79.1 1% and the environmental health of the planet. Solar and other renewables Switzerland 73.8 1% are viewed as part of the economic, job creation engine that will help Spain 2303.0 16% drive the US (and other countries) out of recession. Europe, a leader in UK 38.4 0.3% the planet’s green future, has been on board for years by recognising Italy 200.0 1% the need to support and promote renewable technologies – again, for Austria 39.7 0.3% the environment as well as the economy. And Japan’s move to restart its successful and popular residential rooftop programme should Belgium 21.8 0.2% strengthen that country’s PV market, all the more if healthier economic Portugal 156.3 1% times return. Denmark 15.8 0.1% Greece 11.6 0.1% Thus, the year 2008 would have appeared to end on a note of optimism. Other Europe 40.7 0.3% Europe 8829.8 62% Middle East 41.2 0.3% Will the party continue? North Africa 32.1 0.2% Then came the global economic recession, a global banking crisis, the Central & S. Africa 152.6 1% resulting credit crunch and falling house prices in the US and other

India 412.7 3% countries. New building has stalled and foreclosures have risen. Nepal 7.0 0.05% In addition, the changes in the feed-in-programmes in Germany and Pakistan 3.0 0.02% Spain have essentially erased over a gigawatt of potential demand. Afghanistan 2.3 0.02% These changes will, eﬀectively, lead to dramatic business plan changes. Bangladesh 3.9 0.03% Other West Asia 4.7 0.03% West Asia 433.6 3%

Japan 2247.6 16% China 255.5 2% A change in Spain South Korea 139.1 1% Will the recent changes in Spain’s feed-in tariff result in the loss of a Mongolia 5.6 0.04% hugely significant market? (data republished from the “Solar Outlook Taiwan 48.9 0.3% bimonthly PV update, Issue SO2008-6”, with the kind permission of Asia 2696.7 19% Paula Mints). Indonesia 57.4 0.4% In September 2008, the new Royal Decree - Real Decreto 1578/2008 Thailand 36.4 0.3% - changed the feed-in program in Spain, with the introduction of new Malaysia 21.1 0.1% classifications for the projects, adjustments to the program cap, and Philippines 12.0 0.1% reductions in the feed-in tariff levels. A 500-MWp program cap was Vietnam 19.3 0.1% introduced for 2009, with a 450-MWp cap set for 2010. Other S.E. Asia 10.6 0.1% Recently, Spain’s national commission on energy, the CNE, inspected S. E. Asia 156.7 1% 30 solar farms. They found that 40% of the plants were operational, Oceania 236.2 2% 30% had started producing electricity after the 30 September deadline to receive the 2008 tariff, and 30% were not up to specification due Total World 2000-2008 14206.10 100% to under-production of electricity, lack of modules or lack of proper Who wanted all the PV? It’s clear that Germany and Spain have been major markets documentation. over the past few years, but will this continue? (data republished with the kind permission of Paula Mints, PV Program Director, Navigant Consulting). For the 30% of systems that are currently under producing or are without appropriate permits, etc., the owners will need to fix the As well as a continued flow of Government-driven incentives in a wider irregularities, but the systems will not qualify for the 2008 tariff and range of markets, PV technology, while having the benefit – and chal- will have to wait four years before the plants can receive the current lenge – of being disruptive and state of the art, has also improved in FiT. The system owners will be able to sell the electricity generated by terms of cost and efficiency: thin film has gained wider acceptance these systems for 8c€/kWh. and system design continues to improve, for example, in regard to the The changes to the program in Spain are presented in the table on balance of system components. In addition, new business models are page 62. emerging to address the high upfront cost of system ownership by

renewable energy focus January/February 2009 63 PV/Market outlook

16000.0 Conservative With changes in the Spanish 14000.0 Accelerated

12000.0 10000.0 and German programmes, 8000.0 MWp 6000.0 along with the economic 4000.0

2000.0

0.0 2007 2008 2009 2010 2011 2012 problems in the US and Conservative 3073.0 4905.8 5595.8 6358.2 7886.6 10165.4 Accelerated 5100.0 6125.3 7944.0 10482.3 14550.7

Figure 1: conservative and accelerated demand growth 2007-2012 (republished with the kind Japan, a slowdown in permission of Paula Mints). demand for at least two years For example, during the last two years, most of the industry has been sending products into Spain, without a thought to potential repercus- sions. Now that they have arrived, experts are predicting an end to seems inevitable. Spain’s solar party.

Representing more than 70% of European demand, Germany and Spain have provided the largest market for PV products in the world fall in house prices, it is highly unlikely that the US residential market for several years. The table on page 63 gives an interesting picture of will continue to show strong growth (despite the recent lifting of the global demand and the few markets that have driven growth. And for US$2,000 on the residential credit cap) and the commercial market will any product, goods or service to rely on one primary market, is not a also experience problems. healthy situation. In 2007, more than 3 gigawatts (GW) of PV modules were sold, and it is difficult to imagine what would happen if 70% of Also in the USA, the power purchase agreement model (PPA) will be these sales evaporated. Of the approximate 5 GW of sales in 2008, more confronted with difficulties during the current credit and economic than 75% were into Europe (primarily Spain and Germany) – again, crisis, and companies with pure PPA business models will have to try to imagine if 75% of these sales disappeared. hang on through some painful times. With changes in the Spanish and German programmes (and no other markets in Europe currently capable At the annual PV Specialists Conference, autumn 2008 in Valencia, of taking excess module product), along with the economic problems in Spain, the unbalanced market situation was discussed at length. Many the US and Japan already discussed, a slowdown in demand for at least agreed that reliance to this degree on one primary market was an two years seems inevitable (figure 1 provides a conservative and acceler- unhealthy market situation. The point was made several times, that ated demand forecast through 2012). other markets – China, India, South Korea, Australia, along with Japan and the USA – need to ramp up their respective domestic markets to So where does all this lead us in the next year or two? According to balance demand – so that if one market retracts the result is not disaster. experts, to a sharp drop in prices of new modules, and a slowdown in new capacity as excess supply can no longer all be absorbed by Germany In the near term it is unlikely that China, India, South Korea and Australia and Spain – where changes to incentives will slow the markets. will be able to develop stronger markets. But Japan and the USA could be the saviours, with strong potential for both markets. Especially in the Some major manufacturers of PV products, including Q-Cells, Suntech case of the USA, there is significant untapped potential for the use of Power Holdings and SunPower have spoken of this in recent weeks. solar electricity, from now and also in the longer-term. Several energy Reuters recently reported on an interview with Frank Asbeck, ceo of utilities in the USA have discovered PV as a serious and viable option for SolarWorld, who predicted that in 2009 and 2010 the price of solar power supply. Many large scale PV projects, like the 800 MWp project modules will decline by more than 10% due to overcapacity (nonethe- by PG&E in California, are being prepared and developed. The push for less, it is worth noting that he still saw sales growing 25%-30% in 2009 renewable and solar, and an economic recovery, could make the USA from this year). one of the major PV markets from 2010 onwards. And Q-Cells, one of the industry’s flagship companies, recently reported Lack of confidence that it was to cut sales and production outlook for 2008 and 2009: “the uncertainty and the weakening market demand arising from the finan- Unfortunately, before we all breathe a sigh of relief, the global economic cial crisis have resulted in a number of Q-Cells’ customers postponing crisis renders a sudden boom in demand in the US and Japan highly agreed deliveries until next year. These volumes could not be placed unlikely. In the US in particular, consumer confidence continues to hit elsewhere at short notice,” a source explained. new lows while unemployment continues to rise. Add to this currency issues eating into margins (a weak Euro against a And in California, the largest US market, unemployment recently topped strong dollar), and the predicted fall in prices of polysilicon next year 8%. Considering unemployment fears, tight credit, a stalled housing which could lead to even stronger supply, and it is easier to see why market and the loss of personal wealth represented by the continuing caution abounds for investors, and why all but the larger manufacturers

64 renewable energy focus January/February 2009 PV/Market outlook

(who can build cheaper and undercut competitors to shift volume) may struggle to compete. inter According to Peter Thiele, executive vice president of Sharp Energy Solution Europe (SESE), while the European market situation was previously characterised by high demand for solar modules and limited 2009 supply, 2009 brings fundamental changes to the conditions in the solar solar industry: “new subsidisation regulations now apply in the world’s most dynamic solar power markets Germany and Spain, impairing the sales markets. In addition, the worldwide expansion of production in causing the intensity of competition to increase [means that] – for the ﬁrst time, the supply of solar power products will exceed the demand. Photovoltaics has come of age and is presenting new challenges, especially to us producers,” he concludes: “We shall see who can follow the market shift. A high quality brand, state-of-the-art production as well as eﬃcient sales strategies will be key criteria for the future markets. Particularly in these economically tense times, consumers are paying more attention than ever before to the brand, and thus to an optimal relationship between quality and price.”

Light at the end of the tunnel? May 27–29, 2009 That said, although the outlook for solar is slower growth for the near New Trade Fair Centre Munich, Germany term, all industries currently share this prospect, in particular the US car industry, now standing ready for a handout, or failure or both. But the PV industry has been through difficult times before, and survived to succeed and profit. Of course, the manufacturing side of the industry was unprofitable until 2004 – the first year that companies broke even or showed a glimmer of profit. INTERNATIONAL TRADE FAIR Technology development is a long, committed and expensive road from FOR SOLAR TECHNOLOGY research to pilot line to commercial production. The process of devel- Photovoltaics oping markets is also a non-trivial task requiring incentives, justification Solar Thermal Technology of the need for incentives, and significant capital investment. The PV Solar Architecture industry is filled with entrepreneurs and survivors, scientists, engineers, 1,300 Exhibitors analysts and business people – optimistic pragmatists to the very last. 100,000 sqm Exhibition Space Despite numerous roadblocks over 30 years of technology and market with International Conferences development, the industry persists, and will persist – long past this 4 th European Solar Thermal Energy Conference - estec2009 downturn and through all the upturns and downturns to come. 5 th PV Industry Forum

So slowdown from time to time shouldn’t be feared, especially in a sector with such strong fundamental drivers, excellent potential markets in the USA and Japan, and which has shown such good growth rates over the past few years.

Yes, falling prices in 2009 will impact major players; and we will see technologies that only a few years ago were labelled as novel (such as low-cost thin-ﬁlm technologies for example) achieve cost advantages over traditional multicrystalline producers that may leave them especially well-positioned to survive any shakeout.

About the author:

Paula Mints is the principal analyst for Navigant’s PV Service Market Research Program, executive editor of the Solar Outlook Newsletter, and associate director of the Energy Division. The PV Services Department at Navigant Consulting was founded in 1974 at Strategies www.intersolar.de Unlimited, and Ms Mints moved it to Navigant in 2005. The practice is based on classic market research principles, that is, all data are primary, not secondary, and the analysis is independent and not based on the work of others.

renewable energy focus January/February 2009 65 Editor’s pick Economic stimulus in the USA

THINGS APPEAR TO BE MOVING FAST IN WASHINGTON, AS PRESIDENT OBAMA ALREADY SEEMS TO BE LIVING UP TO HIS PROMISE OF SUPPORTING RENEWABLE ENERGY DEVELOPMENT. BUT DO THOSE IN THE INDUSTRY THINK HIS POLICIES WILL WORK? DR. MARIANNE OSTERKORN, DIRECTOR GENERAL OF THE RESPECTED RENEWABLE ENERGY AND ENERGY EFFICIENCY PARTNERSHIP REEEP, SPEAKS TO MEMBERS OF THE ALLIANCE TO SAVE ENERGY ASE AND THE AMERICAN COUNCIL ON RENEWABLE ENERGY ACORE ON THE PROSPECTS FOR BOTH ENERGY EFFICIENCY AND RENEWABLES IN THE USA.

As credit availability in the USA increased in will contribute to lower emissions. Chemical gone bankrupt following poor hedging on the years leading up to 2008, several things company BASF, for example, has shut down cereal prices. In the construction sector, started to happen. Global consumption rose, production at one of its plants in Geismar, some building supplies companies producing as did commodity prices. The market for Louisiana for two months until the end of energy-efficient materials have begun to make renewable energy and energy saving products January 2009 due to a fall in demand. redundancies, such as USG, a Chicago-based was growing healthily. insulation producer. The company announced As Lowell Ungar, policy director at the Alli- in November that 900 jobs or 20% of its Emissions, meanwhile, had been increasing on ance to Save Energy (ASE) in Washington DC salaried workforce was to go. One reason for the back of higher consumer demand, given confirms, energy pricing is a very important redundancies in this sector is the lack of the lack of a comprehensive Federal green- factor affecting investment in energy efficiency re-financing mortgages. These were previously house gas emissions policy. But now that the equipment: “there is much more energy effi- used, in some cases, for home improvements bubble has burst, a big question arises: Will ciency investment in a period of very high energy that included upgrades to better insulation or the fall in emissions linked to lower economic prices,” he states. That was indeed the case less energy efficient equipment. output weaken the drive for new energy effi- than a year ago, when Americans began to buy ciency and renewable energy investment? smaller and more fuel efficient cars. Oil prices are All bad news? at nearly half their spring 2008 levels, and that On the surface, it looked likely. In a recession, a would seem to point to lower energy and fuel Fortunately, a few bright spots liven up this particular form of energy conservation kicks in efficiency investment in the short term. distressed picture. Emissions are not, of course, that can in some cases replace typical energy the only motivation underlying energy effi- efficiency investment: energy demand decreases At the same time, the funds available for ciency and renewable energy investment, and because there is more unemployment and less investment in renewable energy have taken a in December 2007, the Energy Independence and disposable income to spend. So far, US consump- hit. Afflicted by the market’s overall woes, clean Security Act was introduced. This set a manda- tion has neatly followed this pattern. energy stocks fell by 61% over the first three tory Renewable Fuel Standard (RFS), requiring quarters of 2008. Liquidity in the wind market fuel producers to use at least 36 billion gallons In mid-2008, when the US economy was is inadequate, because an enormous chunk of biofuel in 2022, representing a nearly five- already slowing, it was importing, and there- has been taken out of tax equity capacity, fold increase over current alternative fuel fore burning, 500,000-750,000 barrels less than while debt financing for new projects is weak use. It also improved fuel economy standards usual per day. August 2008 saw the largest or expensive. Solar is in a similar position for by 40%, mandated a complete phase out of single month’s year-on-year fall in vehicle the same reasons; its future growth rate is incandescent bulbs by 2012 and set new appli- miles travelled (VMT) since World War II. likely to be considerably restricted in compar- ance efficiency standards. This decrease in VMT was also partly respon- ison to its extraordinary performance over the sible for the decline in oil prices, although last few years. Current tight credit and falling In a sector conceived as a result of some oil industry production factors played a solar panel prices may lead to business failures. environmental and energy security concerns part in that too. As the economy continues to that become part of Government policy, the slow down, some companies may opt to shut In the biofuels sector, the biggest-listed US regulatory drive has a greater force than in down their less efficient plants, and that too ethanol producer, VeraSun Energy, has many other industries; it is designed to override

66 renewable energy focus January/February 2009 Editor’s pick

As the economy continues to slow down, some companies may opt to shut down their less eﬃcient plants, and that too will contribute to lower emissions.

short term economic fluctuations. According and growth rate. [As we go to press] The Bill ment energy efficiency projects, which could to Joe Loper, vice president of policy and is currently winding its way through both the increase the use of ESPCs, according to research at ASE, over the last 35 years about a House and the Senate. Loper. On the other hand, ESCOs are heavily fifth of US energy efficiency and conservation reliant on financing and could have difficulty investment has been driven by Government However, energy utilities are entitled for the obtaining financing for ESPC projects. and utility policies and programs. Government first time to claim the PTC in the bailout bill, and utility support for energy efficiency – which is likely to have a positive effect on In December, President-elect Barack Obama including appliance rebates, low interest loans, EE/RE investment. “Coupled with a declining called for an effort to make public buildings energy audits, research and development – interest from traditional tax equity investors, more energy-efficient. Obama announced a currently exceeds US$3 billion, according to this will probably push things towards more plan to seek energy-efficient upgrades for ASE. Continued Governmental attention to utilities providing equity financing, but that Federal and public school buildings. “First, we the need for increased energy efficiency could won’t happen quite yet,” suggests Church. will launch a massive effort to make public drive substantial energy efficiency investment buildings more energy-efficient. Our Govern- activity throughout a US recession. While project and debt finance for renewable ment now pays the highest energy bill in the energy are severely affected by the financial world. We need to change that. We need to And the unexpected energy addendum to the crisis, venture capital (VC) is in reasonable upgrade our federal buildings by replacing old US$700 billion bank bailout funding (Emer- shape. “Whereas the banking business has been heating systems and installing efficient light gency Economic Stabilization Act) agreed in heading for the doors, there is not a sense that bulbs,” he said in his radio address. early October 2008 is probably the brightest the situation is particularly grim for the VC lining in the gathering clouds. It pledges to sector, rather that it’s something of concern, The new Obama administration is also strongly extend Investment Tax Credits (ITC) – a form of that will slow down but not reverse invest- supporting the renewable energy sector. tax refunds – for the solar industry for another ment,” Church says. That is, of course, partly Barack Obama has pledged to double alter- 8 years and the Production Tax Credit (PTC) for because the VC sector has poured less money native energy production in three years. In wind, biomass, hydropower, landfill gas and into renewable energy than banks and partly previous speeches he has pledged to enact energy from waste facilities for another year; because it is focusing on future technologies climate change legislation and a cap and trade this will buoy up struggling renewable energy such as second and third generation biofuels. scheme. According to Reuters, an Obama aide projects and help maintain employment while said the administration would seek to add existing projects continue. On the energy efficiency side, the picture is 20 GW or more of wind power and 4 GW of also mixed. Large industrial groups such as geothermal and solar power in the next three “There was a great flurry to finish projects General Electric (GE), whose revenues from years, doubling the nation’s current renewable [before the production tax credit was due this sector are forecasted to rise by 21% to power base of 24 GW through loan guarantees to expire]. In the last quarter of 2008 there US$17 billion in 2008, will bolster up long-term and, eventually, national renewable energy was a pickup of new construction activity for investment. Existing government incentives requirements. existing projects in their early stages,” states are attractive, but as Loper puts it, “they make Rob Church, vice president of industry research a difference when people purchase, but not if The Obama administration is well on its way to & analysis at the American Council on Renew- they’re not buying anything.” providing the leadership and support required able Energy (ACORE). However, the one year to further accelerate renewable energy in light production tax credit extension will have a Energy Service Companies (ESCOs) could also of the financial crisis. The new president says limited effect, he predicts: “the finance indus- be affected by the credit crunch. ESCOs carry his administration wants 10% renewable elec- try’s ability to utilise tax credits will decline out energy service performance contracts tricity by 2012, and will put one million plug-in next year, and the number of companies active (ESPCs), which are arranged as an alternative hybrid cars on the road by 2015. He has also in this area have gone down.” According to to Federal spending. Budgetary restrictions said he will catalyse the private sector to invest Church, wind power, and corn-based ethanol relating to energy efficiency could increase in clean energy through US$150 billion in cash may be the hardest hit because of their size the need for alternative financing of Govern- injections over the next ten years.

renewable energy focus January/February 2009 67 Editor’s pick Renewables in Africa

DIETER HOLM, LONG-SERVING MEMBER OF THE INTERNATIONAL SOLAR ENERGY SOCIETY (ISES) LOOKS AT THE ROLE RENEWABLE ENERGIES CAN PLAY IN COMBATING CLIMATE CHANGE IN AFRICA, AND ARGUES THAT THE EEG (FEED-IN-TARIFF) LEGISLATION PIONEERED IN GERMANY WOULD BE THE PERFECT PLACE TO START.

Climate change affects all of us, but Sub- infrastructure. It could leap-frog to the sunrise All renewable energy technologies (RETs) Saharan Africa most perniciously, according renewable energy technologies, including should be very robust, low-maintenance, fail to the Stern review. In economies reliant on distributed generation and co-generation: safe, modular, tamper- and theft-proof, as well (eco)tourism and subsistence farming, the poor by way of example, cellular telephones are as be protected against insects, rodents, dust inexorably bear the brunt of climate change displacing old technology fixed landlines at a and high ultraviolet radiation levels. caused by better-resourced, large polluting breathtaking rate. industries which can reposition themselves with The full gamut of RETs should be applied, ease. For example, South Africa’s vertically inte- Joining the dots in Africa depending on public domain resource assess- grated state owned monopoly, Eskom, gener- ments and local conditions, as well as probable ates about 50% of Africa’s total electricity and The lack of Eskom electricity in South Africa climate changes. concomitant pollution through power stations caused Rio Tinto, a major global player, to shelve running over 90% on coal. Eskom and Sasol a huge beneficiation project indefinitely, which Solar thermal cooling and electrical vehicles alone produce 45% of the country’s greenhouse probably means permanently. This entails the are neglected technologies that are suitable gases. Many similar large companies in Africa loss of 20,000 jobs in a country with an unem- for Africa. feel little pressure as they are shielded by the ployment rate of about 40%. Suitable renewable Developing Country status of their host country. energy incentives in place could have avoided Increasing market penetration this, not to mention similar catastrophes in Africa. However, Africa has 95% of the world’s best The situation in affected neighbouring Southern What role do the different forms of renewable winter sunshine area, receiving more than African Development Countries (SADC) is compa- energies/energy efficiency and conservation 6.5kWh/m2.d (Germany receives less than rable. None have implemented FiTs, and all are play in providing access to energy in Africa? 1,0kWh/m2.d). Therefore Africa could poten- restrained under the lack of private initiative tially generate 95% of the world’s solar thermal driving renewable energy. Currently all three play a miniscule role, and solar electrical energy. demonstrating a wide market gap. The direct linkage between renewable energy Other RE resources are also abundant. This and the 8 Millennium Development Goals If the well-heeled role-model sector of the popu- means Africa can produce ample clean and is clear; they all depend on energy, which lation is not seen to be using RETs, then these sustainable energy for its own use, plus a currently is not being provided reliably. become stigmatised as “the poor man’s energy”. good surplus for export. The most important This situation is worsened if the rural poor get constraint is not the lack of money, men, Goal number 8.6 especially – i.e. “to build global the impression that experiments are being done machines, material or management but the partnerships with private sector new technolo- on their back with unproven technologies in motivation: it’s the lack of inspired political gies” is pertinent, and merits special attention. remote rural areas with typically problematic will. Therefore, given suitable laws like the service delivery and difficult communications. Feed-in-tariff (FiT) and others, Africa could The mistake of spreading developmental rapidly and effectively combat climate change resources too thinly, creating unrealistic Provided the necessary environmental, water while achieving the crucial local needs of expectations while disappointing stakeholders and food security precautions have been sustainable job creation. Given a framework of through sub-optimal technologies and services taken, energy crops/biomass can play an low-risk, long-term contracts and reasonable should be avoided. Instead, a focussed strategy important role. Waste-to-energy technologies FiTs, industry and investors will flock to Africa, of building a viable renewable energy instal- also fall into this category. implementing technology transfer – creating lation and service industry through suitable local renewable energy enterprises. incentives like a FiT, followed by local manu- Major energy parks in the Sahara could facturing, where practical is indicated. A visible contribute to regional development as much Africa has invested relatively little in the market penetration of at least 15% should be as oil wells could. It depends on the structure old centralised and vulnerable sunset fossil targeted per area and technology. of the value chain.

68 renewable energy focus January/February 2009 Editor’s pick

Small-scale hydropower plants (less than ■ Africa has a community tradition. Community them to make rational renewable energy- 10MW) are also a very attractive option but power systems ensure public buy-in and related decisions. However there is no harm have been found to be onerous to imple- support; in knowing the difference between kW and ment because of the non-existence of FiT ■ The energisation priorities should be kWh, or between energy carriers and energy tariffs. A small South African hydropower a) productive use of renewable energy services. In developing countries, politicians scheme took at least 5 years, while the (industry, business); b) health (clinics, are inclined to believe that the only energy Government wind demonstration project hospitals); c) education (schools, training) carriers are grid electricity and oil. even took a decade. with d) social and amusement, as well as residential uses coming provisionally last Overlap with external policy Apart from a FiT, what else would help? in Africa’s relatively benign climate. Most of Africa is importing fossil ener- ■ Awareness creation (radio is most popular In Africa women generally are in charge of gies and their technologies. The populist in Africa); the household chores, plus food production/ tendency is to subsidise energy delivery ■ Levelling the playing field by terminating processing, and of energy procurement. If fire- through centralised systems, which are overt and covert subsidies to wood collection could be reduced/eliminated mostly under Government’s political control. non-renewables (€42 billion are through the use of renewable energy, then this Consequently, service delivery suffers and projected to be sunk on subsidising fossil would reduce/eliminate deforestation or even foreign debt increases, causing more calls power plants in the developing world desertification in Africa, and climate change for debt release. until 2030 [UNDP, 2000]. And despite its would be abated. It would reduce the health policy, the World Bank is often impact of open fires, and allow more time for At present renewable energies replace little the financier; study, leading to better work opportunities imported energy, except in countries with ■ Tax rebates often make little sense in a and family planning, reducing poverty. African hydropower. Transport is entirely fossil based. poor developing country, and can lead to women play a strong and decisive role in the Substantial replacements are feasible. distortions; household, probably needing little external ■ Uniform and transparent industry stand- gender-related interventions. NB: this article comes from a speech Dieter ards, planning permits and building codes Holm gave at a hearing on ‘renewable energies foster fair competition and more reliable In addition, political decision-makers require in development cooperation’, which took place performance; relevant objective information, enabling recently at the Deutsche Bundestag (Germany).

www.ReflecTechSolar.com

The Only High Reflectance Mirror Film Proven for Use in Solar Concentrators

Developed in Partnership with the U.S. National Renewable Energy Laboratory

renewable energy focus January/February 2009 69 Feature article Recycling wind turbine blades

WITH A BOOMING WIND ENERGY INDUSTRY, DRIVING THE DEVELOPMENT OF LARGER AND LARGER TURBINES, THE QUESTION IS NOW ARISING OF HOW TO DEAL WITH WIND TURBINES AT THE END OF THEIR LIFECYCLE, AND PARTICULARLY THOSE WIND TURBINE BLADES MADE OF HARD-TO-RECYCLE COMPOSITES. RENEWABLE ENERGY FOCUS’ KARI LARSEN INVESTIGATES POSSIBLE ROUTES FOR THE RECYCLING OF WIND TURBINE BLADES.

The global wind industry is growing fast, in young, there is only a limited amount of prac- introduced a landfill disposal ban on glass fibre terms of both the number of turbines and tical experience on the recycling of turbines reinforced plastics (GRP) in June 2005, due to their sizes. According to the Global Wind – particularly offshore, and it will take time to their high (30%) organics content such as resin Energy Council (GWEC), modern turbines are gain practical experience in the dismantling, and wood. 100 times the size of those in 1980. Over the separation, recycling, and disposal of wind- same period, rotor diameters have increased power systems. The most common route is incineration. In eight-fold, with turbine blades surpassing 60 m so-called combined heat and power (CHP) in length. What are the current options? plants, the heat from incineration is used to create electricity, as well as feed a district Wind turbine blades typically consist of rein- At the moment, there are three possible routes heating system. However, 60% of the scrap is forcement fibres, such as glass fibres or carbon for dismantled wind turbine blades: landfill, left behind as ash after incineration. Due to fibres; a plastic polymer, such as polyester or incineration or recycling. The first option is the presence of inorganic loads in composites, epoxy; sandwich core materials such as poly- largely on its way out, with countries seeking this ash may be a pollutant, and is, depending vinyl chloride (PVC), PET or balsa wood; and to reduce landfill mass. Germany, for example, on the type and post-treatment options, either bonded joints, coating (polyurethane), and lightning conductors. 250,000 World without Europe Wind turbine blades are predicted to have a Europe without Germany lifecycle of around 20-25 years. The question is Germany 200,000 what to do with them afterwards.

As turbines grow in size, so does the amount 150,000 of material needed for the blades. Professor Henning Albers from the Institut für Umwelt und Biotechnik, Hochschule Bremen, estimates 100,000 that for each 1 kW installed, 10 kg of rotor blade Blade material, Mg/a material is needed. For a 7.5 MW turbine, that would translate into 75 tonnes of blade mate- 50,000 rial. In a presentation at Composites Europe in September 2008, Albers predicted that by 2034, around 225,000 tonnes of rotor blade material 0 will need to be recycled annually worldwide. 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Year Ref.: WindEnergy-Study 2006, fk-wind-data base The problems is – according to experts – because the wind-turbine industry is relatively Figure 1: Expected amount of rotor blade material world wide

70 renewable energy focus January/February 2009 Wind/Blade recycling

dumped at a landfill or recycled as a substitute construction material. The inorganic loads also lead to the emission of hazardous flue gasses in that the small glass fibre spares may cause problems to the flue gas cleaning steps, mainly at the dust filter devices.

Wind turbine blades also have to be dismantled and crushed before transportation to incineration plants, placing further strain on the environment in terms of energy used – and emissions. Albers suggests that there are also causes for concern in relation to the health and safety of workers involved in the incineration process.

The alternative is recycling – either material recycling, or product recycling in the form of re-powering – where old turbines are replaced by newer, more efficient ones. At the moment, however, there are few established methods for the recycling of wind turbine blades, and only 30% of fibre reinforced plastic (FRP) waste can be re-used to form new FRP, with most going to the cement industry as filler material.

So what attempts have been made at recycling projects to date?

Recycling projects A wind turbine blade before and after pyrolysis. (Picture courtesy of ReFiber.)

ICRI to achieve better properties through a polyproplene (PP) resin, sand-resin mixture REACT new chemical bonding with the new matrix. for producing large flower pots, and sandwich Another technology was developed by HAMOS panels. Between 2003 and 2005, a project led by the for fibre length separation, and the removal of consultancy company KEMA and the Polish undesired impurities. One challenge that arose when turning to the Industrial Chemistry Research Institute composite industry itself was product guar- (ICRI) looked at the mechanical recycling of One of the problems in reusing shredded FRP antee certificates, as found in the boat building FRP, including wind turbine blades, where waste is to rebind fibres with the new resin, as industry. When using recyclate, companies the material is ground and then re-used. the shredded fibres often have resin residues, often feel they are taking a risk with the mate- Funded by the European Commission’s CRAFT making bonding more difficult. Bart in’t Groen, rials, thereby endangering their guarantee project, the REACT project also involved HEBO consultant at KEMA, remarks: “you need longer certificates. Engineering, C-it, Fiberforce Composites fibres to have good bonding with your new Ltd, Hamos GmbH, Plasticon, ZPT and the matrix compared with virgin fibres.” Another challenge is that recycled fibres European Composite Recycling Services will be shorter than original fibres, coated Company (ECRC). For wind turbine blades, an additional step is with some ‘historical’ resin, and are harder required. The blades must be cut into chunks to arrange in a given direction. This makes The REACT consortium, through HEBO and on location to ease transport. This can be done it more difficult to increase strength, as is KEMA, designed, built and tested a hybrid with a demolition claw (a crushing/grabbing needed, for example, in car bumpers. This shredder for ‘fit-for-purpose-size’ reduction. claw attached to the end of a crane or digger), has not stopped the car industry from recy- The shredder has a capacity of 2.5 tonnes/ a technology which is widely available. cling and reusing its own waste, however. hour and can reduce FRP to 15-25 mm with According to in’t Groen, it is just a matter of “minimal internal damage” to the fibres. This Initially, the REACT project aimed high when knowing your input material. was done with hammers slamming the resin it came to possible applications for FRP out of the fibre structure. To avoid dangerous recyclate, but found that there was not the Despite the challenges, he is keen to point out situations during grinding, an electronic sensor same demand for composite recyclate as for that the recycling of FRP materials, including for volatile organic compounds (VOC) was materials such as steel. The consortium there- wind turbine blades, is important: “Because developed by C-it. fore started looking at smaller, more niche composite usage and so its end-of-life waste markets. Examples include parts for FRP silo will increase enormously…, so a lot of initia- After shredding, the fibre was upgraded by a tanks, reinforcement of concrete, new hand tives are there and solutions will be found. It’s reactivation method, specially developed by laminate products, reinforcement of recycled a waste dumping this material.”

renewable energy focus January/February 2009 71 Wind/Blade recycling

“As of today, most Danish worn-out blades and ReFiber’s recycling concept in short production failures are sent to landfill, as this is ■ On site cutting to ‘container’ size pieces ■ In a second rotating oven the glass fibre the cheapest solution for the companies,” says with hydraulic shear or similar tools; material is ‘cleaned’ in the presence of Grove-Nielsen. “ReFiber tried to get finance for ■ Once at the plant, the parts are shredded atmospheric air; a 5000 tonnes/year recycling facility, [but] as it to hand-sized chunks; ■ Metals are removed by magnets for recycling; is possible to dump the material on landfills, ■ The material is fed continuously into ■ The dust is removed from the clean glass [that] is what is done. The possible investors an oxygen-free rotating oven with a material remaining; didn’t feel safe… so we had to set the project ■ temperature of 500° C – the plastic is now The glass fibres are mixed with a small on stand-by for some time.” pyrolysed to a synthetic gas; amount of polypropylene fibres and pass ■ The gas is used for electricity production as through an oven where the PP fibres melt The 5000 tonnes/year facility would be fed by well as for heating the rotation ovens; and connect to the glass fibres creating approximately 4000 tonnes of production waste stable insulation slab. from the Danish GRP industry, 500 tonnes/year from worn-out wind turbine blades, and 500 tonnes/year of other glass fibre waste. Grove- Nielsen predicts that there may be a supply of blades from the wind turbine retrofit market in Northern Germany in the near future, as older, smaller turbines are decommissioned and replaced by new, bigger and more efficient versions. There is also the possibility that some of the better turbines may be sold to Eastern European countries for a ‘second life.’ However, Dr Richard Court, Technology The end products from ReFiber’s pyrolysis are Specialist – Wind Renewables at the New and primarily thermo-resistant insulation materials. “For the early years we will have to depend Renewable Energy Centre (NaREC), points The fibres can also be used for fibre-reinforce- on delivery of production waste and worn out out that “grinding uses a lot of energy due to ment in filler, glue and paintings, thermoplastic GRP products other than blades. The real big the hardness of the glass, and the value of the parts, asphalt and concrete; and raw material amounts of worn out blades will emerge 15 filler is quite low, so it is not easy to make it for new glass fibres. The energy content of the years from now. It makes sense to develop a economic – unless you find a cheap source composites is used for generating electricity, recycling industry to maturity before the big of energy.” for process energy and district heating. amounts arrive,” Grove-Nielsen says.

In 1995, the Danish Government passed legisla- ReFiber tion banning the disposal of rubber car tyres on Erik Grove-Nielsen, of ReFiber ApS in Denmark, It makes sense to develop landfill and through incineration, which created remarked in a presentation at Borås Univer- a recycling industry to a new recycling industry for car tyre rubber, but sity in Sweden in 2007 that mechanical recy- no such approach has been taken for GRP. cling in the form of material crushing retains maturity before the big the tensile strength of glass fibre, but that it “We asked the Government here to do the same gives impure end-materials. The filler market amounts arrive. for GRP recycling, but they want ‘the market’ to is flooded with similar materials such as chalk, solve the problem,” Grove-Nielsen says. and the energy content is not recovered. Grove-Nielsen does not believe that the recy- Viability of recycling A recycling possibility is chemical recovery cled GRP wind turbine blade material can be through solvolysis. With this method, most reused in new blades, however: “Recycled glass Per Dannemand Andersen, Head of Section, of the tensile strength of the glass fibre is fibres will always have lower strength than virgin Department of Management Engineering, Tech- retained, and the plastic material can partly materials. Therefore the industry cannot use nical University of Denmark, suggests that the be used as new raw material. However, Grove- recycled reinforcement fibres. For carbon fibres problem is not the material itself, but the lack Nielsen questions the use of aggressive and it is different. ReFiber has recovered, in its pyrol- of volume, making recycling financially difficult: hazardous chemicals, and highlights the ysis facility, carbon fibres from prepreg epoxy/ “There are now technologies available to reuse high cost. carbon material with unchanged E-modulus fibre-glass and blades from wind turbines and and only 5% lower values for ultimate tensile other components in cars. The problem is not The option favoured by ReFiber is thermal and strength. Still, for the glass fibre, it makes sense technologies, but… that there is not enough material recovery in the form of pyrolysis and to allow the glass fibres to ‘retire’ for a life as a scrap […] so it is not commercially viable to gasification. Although the fibres lose a “consid- heat insulation material in buildings.” put up a plant that could use only these blades.” erable part” of their original tensile strength, and despite the high cost of the technical plant, Despite ReFiber’s apparent success in estab- A similar point was made by Thomas Wegman, the end product is very “homogenous,” and the lishing a disposal and recycling route for Director Global Account Management at energy content of the plastic is recovered (see GRP and wind turbine blades, finances have Reichhold Composites and Chair of the Euro- box – ReFiber’s recycling concept in short). stopped the project: pean Composite Recycling Company (ECRC).

72 renewable energy focus January/February 2009 Wind/Blade recycling

The ECRC has an active conversion system in Wegman believes this could come at some place in France, where composite materials are point in the future, whilst remarking that “there Composite recycling reduced to smaller parts, fibres and powders, is a desire from the manufacturing companies companies and then sold on to different applications. To and the people involved in composite busi- ERCOM Composite Recycling (1992- their surprise, the amount of material offered nesses to find ways to actively [find solutions] 2004) – terminated due to economic for recycling and processing does not amount and not wait for legislation to come.” problems. Used crushing and separation to what the outlets are capable of receiving. in different particle sizes and material Working with the ECRC, Wegman finds that recovery. Put recycled products into new “I think the reality is that the quantity of the waste streams are not unmanageable at products (10%-40%); waste that is offered to us, as well as other the moment, but a solution must be found. Seawolf Design Inc of Florida, USA – uses companies, is relatively small. If you’re talking “We will work step by step towards a sustain- non-destructive reduction of fibres with about waste streams that can be used in able structure based on commercial outlets for special mill technique. Possible fixation of cement manufacturing, people are looking at composite waste. ECRC has access to unlimited glass fibres with spray-up systems as filling hundreds of tonnes per week – well, I think industry expertise to make this happen.” material in new products; we’re currently receiving tens of tonnes per year,” Wegman says. ReFiber ApS of Denmark – pre-crushing New materials to 25 cm × 25 cm, then pyrolysis at 500° C, separating into glass fibres, metal and filling Court at NaREC, however, believes the material Some thought has gone into developing new material, but sees 50% loss of fibre strength. is part of the problem: “Industries that use a lot ways of producing wind turbine blades to make Applications include insulation materials. of thermoset composite materials tend to make the disposal and recycling process easier. Court longer-lived items, and are probably waiting to at NaREC explains: “There are… thoughts about see what, if any, recycling options are developed trying to use thermoplastic matrix composites rid of the waste and reusing the waste in a in the coming years. I am sure the wind turbine in wind turbine blades, the idea being that ther- good way.” blade industry would welcome any research moplastics are easier to recycle, as evidenced in into recycling of thermoset composites – the automotive sector. Whether the mechanical Philipp Angst, Product Manager Core Mate- although from my own awareness of the mate- and physical performance of the thermoplastic rials at Alcan Airex, part of Alcan Composites rials and chemistry of thermosets, it’s difficult to based materials is sufficient for a multi-mega- Core Materials, advocates the use of polyeth- see what those recycling options could possibly watt wind turbine blade has yet to be proven. ylene terephthalate (PET) foam in wind turbine be. Recycling thermoset composites is certainly For micro-wind turbines, e.g. up to around 5 kW, blades: a major challenge, and it will be interesting to it is possible to, and some do, use some form see what developments are forthcoming.” of moulded thermoplastic, reinforced or other- “PET foam is [being] adopted by more and wise – in which case recycling is much more of more wind companies. It is a thermoplastic Wegman at Reichhold and ECRC is more opti- a possibility.” structural foam that is fully recyclable. You can mistic looking 15-20 years ahead in time: “I recycle it and put it back into production. It is would say that recycling is going to become In September 2008, Risoe DTU announced it clearly the concept for the future in wind blade more important.… For environmental reasons, is aiding the Chinese forestry commission to production. It must be ground/shredded and but also for economic reasons.” examine the use of bamboo in wind turbine then mixed back into new products. It keeps blades. The blades will initially be made from the same properties and strength.” Recycling is going to bamboo shreds glued together using epoxy, but the hope is to be able to replace the synthetic Alcan Airex already recycles its own PET foam, become more important.... epoxy material with a bio-based adhesive. AIREX® T91. For environmental reasons, Reichhold and ECRC’s Wegman believes it is The recycling of wind turbine blades is still not just about making the resins more recy- seen as problematic, but progress has been but also for economic clable or greener: “When you make a complex made in both methods for recycling GRP and product like windmill blades, it’s not just one possible applications for the recyclate. With reasons material, it’s… a system. Sometimes there the amount and size of wind turbines ever are metal parts inside for specific functional increasing, it is clear that there will be signifi- reasons and there are different core materials cant waste to handle in 15-20 years, but and Who’s responsibility is it? which can range from PVC to balsa wood – so also that the industry is waking up to the chal- it’s a complex system. lenge – not only in terms of recycling, but also Who is responsible for what happens to wind in research into new materials. And if there turbine blades at the end of their life cycles? “For Reichhold as a company to just develop a is one thing that all our experts agree on, it Albers says that typically the responsibility specific resin that would be more easily recy- is that the recycling is the way forward for ends up with the manufacturer of the end cled – I don’t think that’s what we’ve looked making wind energy even greener. product, as seen in the car industry. at, as this is only one element of a composite system – we’ve taken the route of working About the author: As far as renewable energy focus has been able to together with some other companies making establish, there is no European-wide legislation reinforcements, fillers and other components Kari Larsen is assistant editor of renewable energy focus magazine. in place for the recycling of wind turbine blades. to take an integrated approach and to get

renewable energy focus January/February 2009 73 Feature article Small wonders: biomass from algae

FUELS MADE FROM LIVING BIOMASS RATHER THAN ORGANISMS FOSSILISED SOME 200 MILLION YEARS AGO HAVE ATTRACTED WORLDWIDE ATTENTION – AND SUSPICION. WHILE DEVELOPMENT CONTINUES APACE, FIRST AND SECOND GENERATION FUELS BASED ON TERRESTRIAL PLANTS ARE CONTROVERSIAL BECAUSE THEY REQUIRE CULTIVATION RESOURCES THAT COULD OTHERWISE BE USED FOR GROWING FOOD. WHAT ABOUT THE THIRD GENERATION? GEORGE MARSH REPORTS.

The third generation of biofuels is both promising and different: it is based on simple microscopic organisms that live in water and grow hydroponically. These micro-algae do not need soil and land, and because many of them thrive in water that is salty, brackish or just plain dirty – wastewater or agricultural run-off, for example – they need not compete for scarce fresh water resources either. Also important, they are far more productive than terrestrial fuel crops.

Given plenty of sunlight, these organisms can photosynthesise enough

organic matter, from carbon dioxide (CO2) and organic nutrients present in the water they are suspended in, to double their mass several times a day. Depending on the species, up to half their mass is made up of lipids – natural oils. These can be extracted and used as straight algal ’crude’, or refined to higher-grade hydrocarbon products ranging from biodiesel to biojet fuel for aircraft. Strains of algae that produce more carbohy- drate than oil can be fermented to make bioethanol and biobutanol.

Algae biofuels contain no sulphur, are non-toxic and are biodegradable. A number of strains produce fuel with energy densities comparable to those of conventional (fossil) fuels. They are made from a renewable resource that is carbon neutral: the emissions that result from burning the fuel are

balanced by the absorption of CO2 by the growing organisms.

Small wonder that these miracle organisms are the subject of intense study. Algae are familiar to the general public as pond scum and to oceanographers as the algal blooms that blossom over huge areas of ocean at certain times of year. The abundance of wild algae and the lipid nature of many of them have engendered high optimism about their potential as fossil fuel substitutes. But exploiting the potential of a technology that currently exists only at laboratory and pilot scale could prove a long and expensive undertaking. For a start, isolating a couple of score that might make a viable basis for fuel production from the 30,000 or so existing algal strains represents a formidable challenge. Photobioreactor (Source - Oregon State University). Fortunately, much work has already been done in this area, notably by

74 renewable energy focus January/February 2009 Biofuels/Algae

the US Department of Energy (DoE) with its Aquatic Species Program that ran for almost two decades, culminating in a final report in 1997.

Algae can be grown on open settling ponds, but this approach is unlikely to provide the best yields. Regrettably, the hardy strains that resist encroachment of viral, fungal and other algae borne in the atmosphere are not the most lipid-rich. Covering ponds with translu- cent membranes or the use of greenhouses overcomes this drawback, allowing the more productive strains to be grown free of atmospheric contamination. Closed pond systems also enable some control to be exercised over growth factors including the amount of sunlight, water temperature, nutrient mix and concentrations, acidity/alkalinity (pH) of the water and CO2 concentration.

Photo-bioreactor Algae farm (Source - A2BE Carbon Capture LLC).

Even closed ponds may not be ideal, however, because the growth of a top scum layer tends to block the passage of light to algae lower down A2BE co-founders Jim Sears and Mark Allen do not pretend that all in the pond. This has prompted a number of pioneers to abandon ponds the problems have been solved. As Sears, who earlier helped launch altogether, instead adopting fabricated enclosures termed photo-biore- another algae-to-oil venture, Solix Biofuels, points out: “You’re dealing actors (PBRs) that are more three-dimensional. A variety of designs have with adaptive life processes and we need to work with them not against evolved, all aimed at maximising photosynthesis by slowly circulating them.” the algae, along with nutrients and CO2, in closed transparent structures that are exposed to light. Despite the difficulties, he anticipates construction of a commercial- scale algae-to-biodiesel plant in 2012. Commentators caution, though, US firm Valcent Products, for instance, in a joint venture with Cana- that investors should not be impatient for quick returns. dian company Global Green Solutions, is growing algae in long rows of suspended moving plastic bags in a patented system called VertiGro. A Meanwhile, Solix Biofuels is working with Colorado State University’s pilot for the process has been assembled in a large high-density green- Energy Conversion Laboratory on a 20m long fifth-scale PBR that house near El Paso, Texas. Valcent President and CEO Glen Kertz explains: will utilise CO2 emissions from a brewing facility. Business Develop- “By going vertical you can get a lot more surface area to expose cells to ment Coordinator Sam Jaffe is clear that the company is engaged in sunlight. Our moving system keeps the algae hanging just long enough a commercial race to make algae-to-oil technology work on a large to pick up the solar energy needed for photosynthesis.” scale and at an affordable price. Another PBR exponent, theGreenShift Corporation, headquartered in New York, has produced a pilot-scale Kertz told CNN that he could produce up to 100,000 gallons of algal oil reactor with the intention of co-locating it with an ethanol producing a year per acre, compared with 30 gallons/acre from corn or 50 from facility so that it can utilise CO2 emissions from that plant. soybeans. But he admits that algae are no ‘silver bullet’ alternative to oil since it is a “long and winding journey” to cultivate and harness the Enclosed PBRs offer the possibility of achieving highly controlled and crop, then extract and refine the algal oil into a usable fuel. optimised growth conditions. But the associated infrastructure, along with that for harvesting the grown algae, has led to systems that, in Algae-culturalists using racked glass or polycarbonate PBR systems the view of some experts, have become too complex and expensive. include Massachusetts-based GreenFuel Technologies Corpora- Furthermore, controlling temperature and other parameters, running tion, which aims to utilise waste CO2 from flue gases, power stations, harvesting machinery, introducing nutrients and capturing waste CO2 cement production facilities and other emitters as the source of carbon from a fossil fuel burning plant all consume energy. Some companies, required by the algae. GreenFuel argues that its solution helps to miti- such as New Zealand’s Aquaflow Bionomics and US company LiveFuels gate CO2 production at the same time as producing fuel. During 2008 Inc, therefore, remain loyal to the open-pond approach, using alterna- the company raised almost US$14 million of venture capital to use tive techniques to prevent invasion by unwanted competing organisms. expanding its technology to production scale. A2BE Carbon Capture LiveFuels has been working with scientists from Sandia National Labo-

LLC, which similarly intends using PBRs and waste CO2 , has patented a ratories in developing a ‘green crude’ product it hopes will be price reactor that is 450 ft long by 50 ft wide and consists of twin transparent competitive with fossil crude oil. plastic algal waterbeds – thus providing parallel redundancy in case a single bed has to be closed down. Tel Aviv-based Seambiotic Ltd similarly grows a high-yield, oil-rich algal

strain in open ponds, using waste CO2 emissions. In a joint venture Counter-rotating currents induced within the beds ensure maximum with Inventure Capital of Seattle, it is combining its technology with exposure of algae to the light as they pass through the phototropic an advanced conversion process developed by Inventure, with the aim zone. Internal temperature is controlled. For harvesting, a biological of producing biodiesel and ethanol at an intended commercial biofuel agent aggregates the algal cells into larger, more separable entities plant in Israel. Another youthful company, PetroSun Inc, is pinning its that can be extracted relatively easily. Internal rollers operating in both hopes on large saltwater open-pond systems located on the Texas Gulf directions serve to clean internal surfaces of the waterbed tubes and coast and elsewhere. Raw oil extracted on site would be sent by barge re-suspend algae. or truck to biodiesel refineries.

renewable energy focus January/February 2009 75 Biofuels/Algae

pressure. Alternatively, solvent use can be avoided with methods such Project case study – phytoplankton as centrifuging and flocculation.

Scientists at Biofuel Systems (BFS) in Alicante, Spain are producing fuel from microscopic marine algae. BFS’ Bernard Stroïazzo Mougin, a Innovation thermodynamics engineer, has teamed up with Christian Gomiz, one of the few biologists in the world specialising in phytoplankton. Algal fuel development is at an early stage – and wide open to innovation. Although much basic R&D work is still the province of government Phytoplankton is microscopic alga which in high concentrations science and academia, commercial drive is evident in the way the pace appears as a greenish discoloration in water. The greenish hue comes of innovation is accelerating. New companies seem to enter the field on from a substance known as chlorophyll located within the plant’s a weekly basis, bringing with them radical ideas for enhancing produc- cells. Photosynthesis is the chemical chain reaction which occurs when sunlight is absorbed by chlorophyll producing carbohydrates tivity, reducing cost and increasing scale. from carbon dioxide and water. A major by-product of this process is oxygen. In fact more than half of the planet’s oxygen is produced by One strand of development is aimed at improving yield by selecting phytoplankton. appropriate algal strains and in some cases modifying them by selective breeding or genetic manipulation. For example, Florida-based PetroAlgae At BFS, a small amount of algae is collected from the sea and then LLC, recently acquired by investor group PetroTech Holdings Corpora- harvested in a photosynthesis machine. Within this machine, the single celled organisms reproduce by cell division, or mitosis, resulting tion, is employing natural strains of algae developed by Arizona State in an extremely fast growth rate. Depending on the species of alga, University and bred selectively over many generations. It cultivates the this division can take anywhere from 8 to 24 hours. When sufficient strains in bioreactors that it plans to scale up for the commercial produc- biological mass has accumulated it is removed, dried and pressed into tion of biodiesel and other fuels. It reportedly uses a centrifuging method easily transportable bricks. This raw material can later be separated to extract oil from the harvested and dried algal biomass. Left-over into hydrocarbons (used for biofuels), carbon (for use in electricity residue constitutes a high-protein meal that can be used as livestock feed. production and water desalination), and waste products such as cellulose – which can be used in the manufacture of paper and bio- In an intriguing display of lateral thinking, a California company has degradable plastics. developed a novel production method that completely avoids the need The microscopic algae used by BFS can be harvested every 24 hours for sunlight and photosynthesis. Instead, Solazyme LLC cultivates micro- and are grown in vertical towers which occupy one square metre of algae by fermentation in large enclosed tanks, potentially achieving the surface area. The Algae grown in just one of these towers will produce scale of open pond cultivation without the risk of contamination. The 2 the energy equivalent to a 1000 m sunflower plantation. company claims that the process of feeding certain sugars to algae Michael Plescia grown in the dark is several times more productive than growing algae in ponds with sunlight. Collecting the biomass is said to be easier than when it is conventionally grown, while reduced capital costs result from Diversified Energy Corporation also believes that closed systems less need for equipment and infrastructure. based on PBRs have become over-complex and costly, but has a different answer – a much simplified closed system engineered for low A possible objection, of course, is that growing the required sugar cost. Aiming at agricultural levels of simplicity, DEC has avoided the makes demands on land, energy and water. Moreover, some critics have need for a rigid structure by laying what are essentially transparent suggested that avoiding photosynthesis eliminates the chief advantage plastic tubes in furrows ploughed in the ground. Although this Simgae™ that algae have over plants, their superior photosynthetic efficiency. (simple algae) approach requires land, this can be low-grade land that would be unsuitable for food crop cultivation. Infrastructure for CO2 and Undaunted, Solazyme has demonstrated Solardiesel fuel produced in nutrient injection and water circulation is based on pumps and piping this way and oil major Chevron is backing the company financially to widely available in agriculture. develop and test its process at commercial scale. Chevron’s Technology Ventures unit is also working with the Nation Renewable Energy Labora- Harvesting oils tory (NREL) to identify the most suitable algal strains.

Harvesting the grown biomass poses an even greater challenge than Another radical departure that avoids major parts of the conventional strain identification and cultivation. At small scale, a producer typically process route can be seen in the use of gasification to extract oils. In skims wet scum from the area of water it grows on, whether in a pond this approach, dried algae are vaporised with heat. Passing the resultant or a PBR. Then the wet glutinous mass has to be scraped from the vapour through a catalyst system provides oil products. Different skimmer into a receptacle. It is difficult to mechanise and expand this catalysts encourage the assembly of different organic molecules so that messy and laborious process in a repeatable and reliable way. After it is products ranging from crude oil to diesel, kerosene, petrol, etc, can be collected, the damp biomass has to be dried, naturally or in a heated formed, depending on the catalysts used. This approach avoids the need space. Only then can oil extraction take place. for the more usual oil extraction, transesterification, refinement/cracking and cleaning processes. The Solena Group, specialists in renewable Extracting oils from the dried algae can be as simple as forcing them bio-energy, has leveraged gasification technology developed by NASA. out with mechanical presses. Alternatively, cell membranes can be Washington-based Solena uses a plasma gasifier to heat biomass to broken down with enzymes and chemicals, the oil then being extracted 5,000 °C, so producing synthetic gas (syngas). by dissolving it in a solvent – typically hexane, or even water where appropriate algal strains and membrane-eating enzymes are used. OriginOil Inc of Los Angeles claims to be addressing three primary

Other possible solvents include benzene, ether and CO2 liquefied under process issues with patent-pending ‘next generation’ technologies.

76 renewable energy focus January/February 2009

Biofuels/Algae

The second is to distribute light evenly within the algae culture, and Project case study – reducing the cost of the third challenge, arising at the oil extraction stage, is to maximise creating biofuel from microalgae? oil yield by cracking the tough walls of as many of the algal cells as possible with the smallest amount of energy. At APP’s International Algae Congress held in Amsterdam recently, there was a consensus that the capability to cultivate microalgae in A process the company calls Quantum Fracturing™ is used to create a sufficient volumes for biofuel production on a commercial basis was slurry of micron-sized nutrition bubbles that are channelled to the algae nearing reality. Global Companies like Neste Oil and UOP also have the ability to process and convert the algal oil within the microalgae culture. Increased contact between the micronised nutrients and the biomass to JP-8 and other high grade fuels. algae ensures maximum absorption without fluid disruption or aeration.

But one of the biggest pinch points that remains is how to extract Fracturing helps again at the oil extraction stage by encouraging the the oil from the microalgae biomass in an efficient, cost effective breakdown of cell walls. In this ’lysing‘ process, water and special manner. How, after all, can one extract such a small quantity of oil catalysts are fractured ultrasonically, with little energy, to help crack from each microbial algae cell? the tough membranes. In a pre-cracking stage, algal biomass is Traditional methods have been considered but these are neither subjected to low-wattage microwave bursts to weaken the cell walls. efficient nor economic. These also seek to extract the oil by using This combination of microwave pre-cracking and ultrasonic cracking external energy to break down the microbial cell walls. The amount avoids the use of energy intensive mechanical methods (which are of energy required to achieve this makes the whole process too not always effective), or potentially hazardous solvent chemicals like costly. benzene and hexane. The solution appears to come from a biomass pre-treatment technology that is used to break down biomass feed stocks prior to An even distribution of light is secured through careful design of a anaerobic digestion. The microbes in anaerobic digesters break Helix BioReactor™, a low-pressure unit in which the culture medium is down organic material generating biogas. The smaller the particle contained in a rotating vertical shaft around which lights are arranged sizes of the feedstocks entering the digester, the more efficient helically. Growth is optimised by engineering the lighting elements to the digestion process. A UK company, Eco-Solids International Ltd, has been trialling a new proprietary patent pending process produce light at specific frequencies. This growth environment allows called Cellruptor with utility Yorkshire Water, to enhance biogas the algae to replicate exponentially, doubling the colony’s biomass in production at one of its wastewater treatment sites. as little as a few hours. OriginOil says that multiple Helix BioReactors can be stacked to form an integrated network of automated, remotely Cellruptor effectively gives the sewage sludge being treated at the monitored growth units, thus ensuring scalability. For full industrialisation, site “the bends” before the sludge enters the digester. As deep sea each reactor group can be connected to a single extraction sub-system divers are aware, it is critical that they do not rise to the surface to form a complete networked production facility. too quickly after a deep sea dive, otherwise the CO2 within their bodies expands too rapidly rupturing their internal organs. Cellruptor replicates these conditions within its own reactor. The CO that is 2 Awakening giant? used comes from the biogas that the digester generates. It is too early to know whether algal biofuels are an awakening giant Biogas typically contains 40% CO by volume. The biogas itself is 2 or whether the hope currently invested in them will be confounded. It mixed with the sludge under pressure prior to the digestion process seems significant that the US DoE, whoseAquatic Species programme and during a short residence time, the CO2 permeates through all the microbial cells. The pressure is then suddenly dropped and the did much to lay the groundwork for algae exploitation but was shelved carbon dioxide within the cellular material expands very rapidly. The in the late 1990s for budgetary reasons, recently started work on algae cell walls are unable to withstand this rapid expansion and the cell again, through its National Bio-Energy Center (NBC) at NREL. Group structures rupture. Enhanced biogas production then results when Manager of the NBC, Al Darzins, is optimistic about the prospects for

the material is fed into the digester. Importantly, the CO2 coming out algae biofuels, declaring “Wherever there’s a lot of sun and a lot of of solution is recycled back into the reactor. Thus the process uses water, you can grow algae. With these organisms, we have the potential internal expansion energy to break open the microbial structures, to produce 10,000 gallons of oil per acre. In the future, the bulk of the which provides significant advantages compared with existing energy on our planet will be produced photosynthetically.” external energy technologies.

Eco-Solids holds the rights to the Cellruptor technology for pre- However, Jim Sears of A2BE cautions that this future might yet be years treating biomass prior to anaerobic digestion, and has been working away, saying: “The journey will be complex, difficult and it’s going to with the licensor in the US to develop the capability to extract take a lot of players.” algal oil from microalgae biomass. The potential of Cellruptor to do this has been recognised by General Atomics, a multibillion The main challenges lie in scaling up the technology for commercial dollar organisation that has secured US Defence Agency funding to viability. As Jennifer Holmgren, Director of Renewable Energy and Chem- develop affordable algal-derived JP-8 jet fuel. icals for Honeywell International’s process technology company UOP Nicholas Gill LLC, comments: “Converting algal oils to fuel is not the fundamental obstacle. The gap is getting the oils in large quantities and demonstrating that they can be manufactured in a cost-effective fashion.”

According to the company, the first challenge is to introduce the CO2 UOP is working closely with Airbus, International Aero Engines and and nutrients needed for algae growth without agitating the water, Jet Blue Airways in a programme aimed at developing biojet fuel for since preferred algal strains thrive best in a calm fluid environment. aviation. We will have to wait to see how this develops.

78 renewable energy focus January/February 2009 Feature article Chile to warm up its renewables market

Located in the north of Chile, the vast Atacama has some of the strongest sun rays on earth but is still unexploited on a large scale basis. Its proximity to some of the largest mines gives it added appeal as a site for solar energy (Credit: Colin Bennett).

LOOKING TO REDUCE DEPENDENCE ON IMPORTED ENERGY AND DIVERSIFY THE SOURCES FEEDING THE MAIN POWER GRID, CHILE’S INTEREST IN HARNESSING RENEWABLE ENERGIES HAS GROWN SIGNIFICANTLY OVER THE LAST YEAR. A MAJOR CONFERENCE IN SANTIAGO TACKLED THE BARRIERS TO ENERGY INDEPENDENCE, REPORTS COLIN BENNETT.

The Chilean Government’s support for new sive and rugged geography and a lack of “When compared to the rest of the world, renewable energy sources took an important direct subsidies. Chile is slightly behind, but we have great step forward in March 2008. President potential in terms of natural resources for Michelle Bachelet signed a bill into law that To better understand these challenges and renewable energy,” said energy minister requires new energy contracts to include opportunities, Renewable Energy Focus Marcelo Tokman, who officially opened 5% of their energy from non-traditional attended the Government’s Third Interna- the event. renewable sources. The Government has also tional Conference on Renewable Energy and paved the way for up to US$400 million on CDM, held in the Chilean capital of Santiago Tokman sees several key challenges in Chile’s renewable energy projects. late last year. The conference demonstrated the energy future. Supply must be guaranteed Chilean Government’s focus on energy security and diversiﬁed, prices kept down, and energy But despite this increased momentum and a and improvement as a top tier agenda item in needs integrated along with other demands wide range of renewable resources, the road the last year. But while it believes renewable on Chile’s limited usable land. In the short ahead for renewable energy ﬁrms is chal- energy resources are an important asset for term, he aims to limit demand to that which lenging. Obstacles include a consolidated the future, it takes a pragmatic view of the is strictly needed and ensure that the entire market price-driven energy market, an expan- near term possibilities. population has access to energy.

renewable energy focus January/February 2009 79 Regional/Chile

Currently Chile receives a small share of Maldonado also believes that the high concen- its power from non-traditional renewable tration of the market makes it harder for Chile’s energy sector: sources. The country produces only 347 MW smaller companies to enter the market without factfile from renewable sources, or 2.7% of its energy some sort of Government assistance. ■ Chile’s privatised electrical industry supply, according to the National Energy is divided among 31 generation Commission (Comision Nacional de Energia, But this situation has spurred the Government companies, five transmission and 36 or CNE). into action, and Corfo – which started giving distribution companies; However, the market is in the hands of several large financial backing in 2005 – now supports more international firms, the largest being Of this 347 MW of installed capacity, the largest than 120 projects. the Spanish giant Endesa and Chilean share comes from Biomass, which accounts for owned Chilectra; 55%, followed by mini-hydropower (39.2%) What about legislation to push ■ The power grid is separated into four followed by wind power (5.8%). This will likely renewables? main systems: The far north of Chile, change however as several large scale wind mostly part of the vast Atacama Desert, parks become operational in 2009 and 2010 In addition, a new law of March 2008 holds the SING system, which primarily (see . obliges new energy projects to generate an feeds Chile’s large mining industry. In escalating percentage of total energy from central Chile about 60% of the country’s SIC Many new projects are entering the construc- renewable sources – or face fines. This initia- population uses the central system. tion phase, some sponsored by Chilean invest- tive follows the so called “short law” passed In the south, home to Patagonia and an expansive area of remote territory, there ment promotion agency Corfo, and some in 2004, which set standards and allowed are two small systems: the Magallanes privately financed. These could significantly small generators to connect to the national and the Aysén; augment Chile’s installed capacity as Corfo’s grids. ■ Today the majority of Chile’s energy portfolio alone includes 1000MW of projects comes from a combination of large being studied or constructed. The new law requires new energy generation hydropower projects and imported contracts to include 5% generated from fossil fuels. However, several factors However, according to Pedro Maldonado, renewable sources starting in 2010, with have led Chile to look for alternatives. professor of energy policy at Chile’s largest possible fines in place starting in 2014. Rainfall has decreased and, as a result, university, Universidad de Chile, privatisation That quota of renewable energy will then dam levels feeding hydropower of the market has created an added barrier increase, starting in 2014, by 0.5% each year projects are lower. In addition, to renewable energy generators that want through to 2025, when generators must the supply of natural gas from neighbouring Argentina is unstable; to enter the market. This barrier sees renew- secure 10% of power generated through ■ Energy consumption is increasing in able sources having to compete on a purely renewable sources. The law gives a fairly Chile at an average of 7% annually, economic basis – without the help of any broad definition of renewable energy, and with production barely keeping pace significant subsidies or fixed rates to make includes hydropower projects under 40 MW with the increase in demand. The cuts them more economically feasible. of installed capacity. in natural gas supply have not only affected the SIC central system, but also the northern mining operations, which relied on natural gas from across the border. These operations have been forced to switch to diesel.

Some, however, believe that more aggressive measures must be taken. According to Marcelo Banto, South America manager of UK-based wind energy developer Seawind, to further promote investment in renewable energies the Government must take a more direct approach and either subsidise renewable operations directly or develop a ﬁxed rate for renewables entering the main grid.

And according to Maldonado, the new law – and growing interest in renewables in Chile – constitute an important first step, but a larger Government programme is needed, one that shares the financial risk in order to develop new projects. Indeed a joint study between the Universidad de Chile and the Univer- sidad Federico Santa Maria and published Chile’s energy minister Marcelo Tokman (left) and Carlos Álvarez (right), VP of the state run investment promotion agency Corfo, are the two leading government figures behind the new push for greater use of renewable energy in Chile (Credit: Colin Bennett). by sustainable development NGO, Chile

80 renewable energy focus January/February 2009 Regional/Chile

Most of Chile’s operational renewable energy projects are still very small scale, such as the 2MW Alto Baguales wind park in the far southern region of Aysén (Credit: Víctor Seguel, courtesy of Corfo).

Sustainable, came to a similar conclusion. study estimates that 28.1% of energy could developed. For example, determine where Its report argues that Chile must see renew- come from renewable sources, in a “best-case” and to what degree the scientific, opera- able energy as more than just a complemen- scenario, by that same year. tional, and technical know-how exists, and tary measure to the main grid, and that more then improve on it. Also study the impact leadership – and stronger incentives – are The study also recommends several other that renewable energies could have on needed. actions that if taken would benefit the renew- employment and job development; able energy sector in Chile: ■ Ways to increase energy efficiency on all Looking forward, the study estimates that levels in Chile needs to be researched; using a conservative model, Chile could ■ A large round of feasibility studies needs to ■ Investments in energy infrastructure need receive 16.8% of its energy from renewable be funded to map out the resources avail- to be incorporated into the tariff scheme. sources by 2025, with mini-hydropower the able at a national scale; Find ways to encourage greater investment leading source. However, if geothermal and ■ The potential of the human capital at a in both renewable energy and energy wind energy are used more aggressively, the local level needs to be evaluated and efficiency on the part of energy companies.

Energy sources in Chile SIC - Central SING – Northern Energy Source Electricity Grid (MW) % of total SIC Electricity Grid (MW) % of total SING Total Installed power (MW)

Renewable 312.7 3.43 12.8 0.36 325.5 run of river hydro over 20MW 1377.3 15.1 0 0 1377.3 Dam 3393.4 37.22 0 0 3393.4 Coal 837.7 9.19 1205.6 33.47 2043.3 Oil/Diesel 75 0.82 271.8 7.55 346.8 Dual (Diesel gas/ gas IFO180) 582.9 6.39 0 0 582.9 Natural gas 2539.30 27.85 2111.7 58.62 4651 Total Installed power 9118.3 100 3601.9 100 12720.2

renewable energy focus January/February 2009 81 Regional/Chile

for mini-hydropower, and is home to thriving forestry and agriculture sectors that are suitable for biomass energy generation.

Windpower

Wind energy’s largest potential is in the south of Chile, in the remote area of Patagonia. However, the distance to the central SIC energy grid makes a large wind farm unprofitable as local demand is still low. Most projects in this wind-rich area are geared towards industrial and remote sites, and do not feed directly into the main grid. Chile’s renewable energy resources The most viable locations for wind farms are along the coast to the immediate north of Can foreign investment play a part? energy is set to be no exception. According the capital, Santiago, and two Spanish firms, In order to achieve this potential growth, to the World Economic Forum’s Infrastruc- Endesa and Enhol, are targeting this area with Chile is looking to foreign firms to invest in ture Private Investment Attractiveness Index, projects due to enter the construction phase local projects. Chile is the top country for foreign investors over the next two years. These will be the in Latin America for electricity, roads and largest in the country. Endesa owns Canela, Chile has long been a favourite destination for communications. currently the largest wind park in Chile, with companies of varying sectors, and renewable 9.9 MW of installed capacity. The park is located Corfo takes a lead role in attracting foreign approximately 300km north of Santiago. investors and matching them with compatible Through its renewable subsidiary, Endesa Eco, How do the country’s projects. The agency is focusing on funding the company also plans to build a 60 MW park, feasibility and pre-operation studies, as well as Canela II, which will come online in 2009. two laws promote guaranteeing credit from banks – rather than renewables? directly funding or subsidising operations. Fellow Spanish energy group Enhol is also This approach, resulting from Chile’s ultra free aggressively investing in Chilean wind farms Short Law market thinking, tends to make the country and mini-hydropower. The group will start attractive to foreign investors. construction in 2009 on a 500MW (nearly ■ Passed in January 2004 the legislation US$1 billion) wind farm in the north of was designed to allow smaller energy And then there’s the Kyoto Protocol’s Clean Chile. The wind farm will house 243 turbines, producers to connect the national Development Mechanism (CDM). This producing 2–3 MW each. grid; provides a framework for investors to support ■ The law assured small producers the renewable projects in certain countries, and right to sell energy at node, or market Geothermal energy prices; Chilean officials and project managers have ■ Fully or partially released renewable traditionally been interested in meeting A high level of volcanic activity makes energy producers from paying CDM investors. geothermal energy an attractive renewable transmission tolls on surpluses under source. However, this resource has received very 20 MW. Corfo has been quick to grasp this investment little attention and focus from feasibility studies. opportunity. As of October 2008 Chile had The high cost of exploration has kept most Short Law II 56 CDM projects in the pipeline, 28 at valida- potential investors away, according to Corfo. ■ Passed in March 2008 the legislation tion, 2 requesting registration, 25 registered obligates generators to receive an and 1 with correction requested. Moreover For the Universidad de Chile’s Maldonado, this increasing share of their energy from Chile’s attractive investment climate extends is one area in which the Government must renewable sources; to the CDM, where it is ranked the third most develop more aggressive measures to fully ■ New energy generation contracts attractive CDM market globally – according to benefit from available resources. must incorporate a 5% share of energy carbon trading research firm Point Carbon. from renewable sources starting in The CNE has identified 115 potential sites for 2010, with possible fines in place from exploration. Almost half of these are in either 2014 onwards; A climate for renewable energy? the far north or extreme south. ■ That quota of renewable energy will Chile’s diverse geography provides good then increase starting in 2014 by 0.5% renewable resources. An extremely dry and each year through to 2025, when Solar Power generators must secure 10% of their hot desert with year-round sunlight in the power generated through renewable north, and a vast coastline of some 4300 km The Atacama Desert provides Chile with sources. provide viability for both wave and wind tech- some of the strongest solar radiation on the nologies. The south of Chile also offers sites planet, with rays well over 4,000 Kcal/(m2/

82 renewable energy focus January/February 2009 Regional/Chile

Why should foreign ﬁrms develop renewable energy projects in Chile?

■ Little corruption and a high level of transparency surrounding the issuing of contracts and other Government actions; ■ Unlike some other Latin America countries (Argentina, Venezuela), there is a low risk of private assets being appropriated by the Government; ■ Macroeconomic fundamentals: Pro- competition economic policies, low inflation, and low public debt make Chile’s economy one of the most stable in the regions, even in these times of crisis; ■ Stable political environment: Economic policies have been in place despite changing administrations; ■ Modern transportation and The largest exporter of copper in the world, Chile’s mining industry has been hard hit from natural gas shortages and unstable communications infrastructure: fuel prices, causing both government and industry officials to look to renewable energy as a possible solution looking forward Excellent highway and telecoms (Credit: Colin Bennett). infrastructure makes logistical problems less of a burden; ■ Both an interest and a recognised A recent change in water regulations has resource has received scant attention. Corfo need for a greater role for renewable relaxed the requirements for hydropower does have plans to launch a feasibility study energies: A high dependence on projects, and led to an increased number of in the short term, but as yet there is no solid imported energy and an abundance mini-hydropower and run-of-river projects. delivery date or plans to finance projects. of resources provides an opportunity For its part, Corfo is funding more than for intrepid foreign investors. 50 feasibility studies that could yield more Despite this apparent lack of interest from than 300MW, with an investment of around Chilean parties, foreign firms are showing US$400 million. interest in developing wave energy projects. día) common in the Atacama. To date, the For example, speaking at the conference, Carl Elgen Government’s efforts have focused mainly on Biomass for power Reiff, president of California-based firm providing remote locations with solar panels. Wave, sees the south of Chile as being a Chile’s logging industry and the waste that it potential source of wave energy due to the Due to the small nature of these remote generates makes bio-mass an option in the high swells that the area experiences on a projects, there is more room for smaller compa- south of the country. Corfo, citing numbers regular basis. Moreover, investing in Chile is nies to operate, but also fewer funding oppor- from a study by German development agency also attractive due to the stable political envi- tunities from Government agencies like Corfo. GZT, believes that this industry alone could ronment and lack of any developed compe- generate up to 470MW of power. A separate tition from other wave energy initiatives, The mining industry has already shown interest study by the Chilean Government’s Forestry Reiff added. in getting a higher proportion of its energy Institute, Infor, estimates the industrial sawmill from solar power. The natural gas supply crisis industry alone could generate up to 900MW. The potential for renewable energy to play in Chile has affected the industry deeply, and a crucial role in Chile’s future energy is, as miners have had to turn to diesel to meet Biogas projects are already underway with in many countries, wholly apparent. The energy needs. 150MW currently available from landfills and interest exists and, despite limited progress sewage treatment plants. Power generated in the past, the country now appears to be Mini hydropower from biomass projects in Chile are currently taking its first fledgling steps towards a more added directly to the grid, mainly through renewable future. The vast network of lakes and rivers in Central electrical co-generation plants that use indus- to Southern Chile makes mini-hydropower trial waste from the pulp and paper industry. projects a promising renewable energy source. According to Corfo, there is a potential for at Marine sources of energy About the author: least 850 MW from more than 290 channels (or small dams owned by agricultural channel Chile’s vast coast makes it a prime location for Colin Bennett is based in Santiago, Chile, and is Renewable Energy Focus’ Latin America correspondent. management associations). wave generation projects. However, in Chile this

renewable energy focus January/February 2009 83 Feature article How to invest in geothermal

UNTIL RECENTLY, MOST INVESTORS HAVE LARGELY IGNORED GEOTHERMAL TECHNOLOGY. BUT IN THE PAST TWO TO THREE YEARS, INVESTOR INTEREST IN GEOTHERMAL TECHNOLOGY IS FINALLY CATCHING ON  WITH INCREASED RECOGNITION OF THE HUGE POTENTIAL TO BE TAPPED. KAI SAMETINGER OF FORSEO ASKS WHAT HAS TRIGGERED THIS NEW INTEREST.

With geothermal, as with other alternative In EGS, also known as Hot Dry Rock or Hot It doesn’t come as a surprise that Google’s energy technologies, there have been plenty Fractured Rock, wells are drilled, and water is US$10 million investment in geothermal aims of drivers: accelerated global demand for injected under high pressure, which creates at EGS, sending out another strong signal to energy, extraordinary increases in the price of an artificial geothermal reservoir at depth. those who are still hesitant. Google.org, the oil and a growing awareness of the need for Water is circulated through the reservoir, philanthropic arm of the search engine carbon-free energy sources. extracting heat from the rock for use in company, supports AltaRock Energy Inc, producing geothermal electric power using a a company developing proprietary technology In many countries, these translate into stronger binary power plant. The US Department of advancements, designed to lower the cost of policy support for renewable energy. A greater Energy (DoE) estimates that the application EGS electricity generation. awareness of the benefits inherent in of EGS technology in the USA is capable of geothermal energy now seems to be helping providing at least 100,000 MWe of electricity After successful completion of an EGS demon- to remove some of the existing barriers. Most within 50 years. With a modest R&D invest- stration project, AltaRock hopes to begin of all, the base-load capacity of geothermal ment of US$1 billion over 15 years, the MIT commercialisation of EGS beginning 2010. power plants can now be seen as a compara- report estimated that 100 GWe of electricity Another beneficiary is Potter Drilling, a devel- tive advantage. A key impulse came from could be installed by 2050 in the USA oper of deep hard-rock drilling technology. Iceland, when companies like Glitnir Bank or Geysir Green Energy – combining know-how and capital – seized the international market in GEOTHERMAL PROJECT DEVELOPMENT with concerted effort.

Project phases Activities Costs

Operation & Maintenance Invesment by owner/host Debt financing or IPP 1,000 Enhanced Geothermal Systems – COMMISSION Plant construction a key technology Plant construction Plant manufacture FINANCIAL CLOSURE Establish plant contract Development / Prod. drilling 100 New technology development, as demon- Resource development Permitting Commercial negotiations US$] illions strated with the recent success of commercial Preliminary Design GO/NO GO 10 Feasibility study low temperature power projects in Alaska and Exploration drilling Feasibility Infrastructure Permitting 1 Germany, makes geothermal more competi- GO/NO GO Pre-feasibility study tive. A comprehensive report by the Massa- Pre-feasibility Geophysics [m costs Cumulative GO/NO GO chusetts Institute of Technology Geology and geochemistry (MIT), Site identification Project development released in early 2007 heralding the enormous high Enhanced Geothermal Systems Risk of potential of failure low (EGS), clearly invigorated the market. Investors 01 2 3 4 5 took note of a cutting-edge technology that Time [years] has the potential to access the earth’s vast stored heat resources to help meet the world’s Figure 1: Geothermal project phases and their related costs and risks on a timeline. Example from a 100 MWe plant in the energy needs. Philippines (source – Randle, 2001, modiﬁed),

84 renewable energy focus January/February 2009 Geothermal/investment

The colour of money: closeup of thermophiles in the heated waters of Yellowstone National Park

Specialised drilling companies play a key role June 2008. This success is important in proving knowledge and experience are needed in any in further advancement, as drilling is an essen- the technological feasibility, yet there are ques- geothermal development. That applies not tial part of geothermal exploration, develop- tions as to the economic viability, as the only to the developer but also to financial ment, and utilisation. The objective of research project was financed entirely by public institutions and investors. advanced drilling technology is to promote funds. The answer might come from the other ways to reduce the costs and to access hard to side of the globe: Australian companies are Most geothermal power projects take five to come by geothermal resources. leading the way with major investments in EGS 7 years to be completely operational, technology and the first commercial power depending on permits and other licensing Furthermore, the design of drill heads capable plants are expected to be online soon. issues. Each geothermal project phase, from of withstanding very high temperatures is a site identification to operation and mainte- Iceland Deep challenge. The international How to close the financing gaps nance, has its own scheme, its own set of Drilling Project (IDDP) aims at electricity activities and requires different equity and production from so far untapped geothermal Investors’ increased interest is vitally important financing solutions with very different risk resources, so-called supercritical hydrous fluids for the geothermal industry, as the lack of profiles. For economic success, it is important from drillable depths. Production will require capital available to geothermal projects, espe- to understand that the subdivision in project the drilling of wells at temperatures of cially during early development stages, stifled phases reduces the risk because go/no go 450-600°C. Supercritical geothermal systems the growth of geothermal technology world- decisions can be made at the end of each could potentially produce up to 10 times more wide and continues to pose a major challenge phase (see figure 1). electricity than the geothermal wells typically for the sector. in service around the world today. Financial applications depend greatly on the Yet, while market confidence is growing, success of drilling, which is ultimately deter- While the IDDP is exploring new dimensions of geothermal projects still have to bear multiple mined by the volume, temperature and pres- tapping geothermal, EGS technology has been risks and investors are well-advised to act with sure of the fluids discovered. Drilling is a very successfully demonstrated by a European prudence. It can be very difficult to determine expensive part of any geothermal project, research project in Soultz sous Forêts (France). which geothermal developers will succeed and representing up to 60%–70% of the overall After 20 years of research, electricity production which will fail as some might depend too geothermal project cost in Germany and of the world’s first Hot Dry Rock plant started in heavily on the fate of single projects. Thus 30%–40% of the overall project cost in the USA.

renewable energy focus January/February 2009 85 Geothermal/investment

GEOTHERMAL PROJECT DEVELOPMENT Time [years] 01234567 Geothermal comes to Start-up

Site identification East Africa

Pre-feasibility Geothermal energy generation in Africa Feasibility could take a leap forward in 2009 after Resource development exploratory studies in Kenya “exceeded all Plant construction expectations”, according to the United O & M Nations Environment Programme Equity Perspective (UNEP) and the Global Environment Venture Capital Development Equity Drilling Equity Project Equity Tax Equity Facility (GEF).

Developers Private Equity Private Equity Financial Players IPPs (Development Pipeline) Public Markets Strategic Partners Large IPPs with ability A new enterprise – the African Rift Resource Speculators Financial Partners to monetize PTCs Geothermal Development Facility Venture Capitalists (ARGeo) – will drive forward the plan to Figure 2: Typical project timeline and financing options of a high enthalpy project in the USA (source – Glitnir, 2008, modified). harvest the steam locked among the rocks While the percentage varies greatly for other components, reservoir risk is a real hurdle for under East Africa. UNEP and GEF made their regions, in all cases the potential for unsuc- an investor in a geothermal project. This is announcement at the UN Climate Change cessful drilling represents a high risk factor. especially true for low-temperature projects in Conference, in Poznan, Poland recently. case the necessary flow rate cannot be “Geothermal is 100% indigenous, Given this high risk factor, traditional debt is reached, resulting in high economic risk – i.e. a environmentally friendly and a technology usually not available in the early stages of a total failure of the project. that has been under utilised for too long,” geothermal project – not until the resource has said Achim Steiner, executive director of been successfully proven. In some cases, Govern- Insurance exists for some of the risks but not UNEP. ment support and subsidies are helping projects for all, and not in all countries. As Ken MacLeod, “Combating climate change while to get off the ground. Public support schemes, ceo of Western GeoPower, notes, proper risk simultaneously getting energy to the however, differ from nation to nation and are assessment is key: “There is no exploration two billion people without access to it never able to completely cover costs. In the end, insurance available in the US – a good and are among the central challenges of this all projects depend heavily on the open market experienced team and thorough knowledge of generation,” he added. for their financing needs. Figure 2 shows financing the resource is our insurance.” Over the last three years, GEF has options from an equity and banking perspective funded a US$1m (£670,000) project in through the project’s development stages. Yet, reservoir-risk transfer can be a viable instru- Kenya to identify promising new drilling ment to mitigate the risk of lower than expected sites. Although there are already two While options have been limited in the past and heat extraction. The insurance industry has, geothermal sites near Nairobi, Kenya, the risk reward balance has prohibited devel- albeit faint-heartedly, responded to the chal- the main challenge to expansion in the opers from accessing most traditional sources of lenge by offering coverage for reservoir risks at country, and elsewhere along the Rift, has equity, there is evidence that the tide may be locations that are geologically well-defined. been the risk associated with drilling and turning. In 2007 private equity firms invested Reservoir-risk insurance reduces the need for the high costs if steam is not found. more than US$400 million in geothermal energy, equity through partial coverage of costs should The project harnessed new technologies and US$3 billion was invested in disclosed deals, the project become uneconomical. to locate promising sites. Steiner said that an increase of 183% from 2006 (Source: New the Rift Valley is now thought to have the Energy Finance). Large energy and utility compa- According to Marcel Stäheli, director of Weather potential to generate at least 4,000 MW of nies are now moving into the industry, expanding and Energy Underwriting at Swiss Re: “Germany electricity. collateral options for investors. is currently the most mature insurance market “We have shown that geothermal for deep geothermal reservoir risks. With reser- electricity generation is not only In addition, specialised financial institutions voir-risk transfer demand increasing (outside technologically viable but also cost- have started developing alternative financing Germany), the insurance industry is further chal- effective,” said Monique Barbut, chief instruments to bridge the financing gaps. One lenged to quantitatively assess the risks of lower executive officer of GEF. example is Icelandic Bank Glitnir’s ‘resource than expected heat extraction in areas with Participating countries will include Eritrea, verification loan,’ a hybrid mezzanine vehicle little empirical data as geologically diverse as Ethiopia, Tanzania and Uganda. KenGen that was used to cover the cost of drilling and the East African Rift Valley or the Chilean Andes.” (a Kenyan company), and Germany and testing the two initial production wells for a Iceland will also be involved. geothermal power plant in California. Reservoir-risk insurance might be one vehicle that will further accelerate worldwide Mitigating Risks geothermal development. More and more, the pace and has gained the momentum it huge geothermal energy potential in many needed. Glitnir forecasts considerable consoli- All geothermal projects have to bear multiple regions of Asia, Africa and Latin America is dation in the coming years as cash-poor risks until the resource has been proven: reser- starting to outweigh the prevailing risks, in smaller players get absorbed. voir-related risks, risks from natural hazards, large part due to an increasing number of production-related risks, technical risks, finan- Governments helping to bring foreign inves- About the author cial risks and legal risks – and each has different tors into the picture, particularly for renewable Kai Sametinger is project manager at forseo GmbH. To obtain “The Investor’s Guide to Geothermal Energy”. contact: probabilities and impacts. As exploration and energy businesses. Geothermal energy devel- forseo GmbH: [email protected] drilling constitute major upfront investment opment and investment is clearly picking up

86 renewable energy focus January/February 2009 NOW ONLINE! Subscribers to our monthly newsletter Fuel Cells Bulletin can now access it.online ...at www.fuelcellsbulletin.com...

...and get access to a... fouryear archive of back issues.

For more information about Fuel Cells Bulletin, visit www.fuelcellsbulletin.com

Fuel Cells Bulletin: the easy way to get the latest business information on the fuel cells industry. Feature article Obama: prospects for alternative energy

FEW EXPECTED AN UNKNOWN FIRSTTERM SENATOR TO BECOME A US PRESIDENTIAL CANDIDATE, MUCH LESS BE ELECTED IN NOVEMBER 2008. DESPITE THIS REMARKABLE ACHIEVEMENT, MANY WONDER WHETHER WINNING WAS THE EASY PART. DON C SMITH, US POLICY CORRESPONDENT FOR RENEWABLE ENERGY FOCUS, CONSIDERS BARACK OBAMA’S ELECTION AND LOOKS IN DEPTH AT WHAT THE NEW ADMINISTRATION MAY MEAN FOR THE ALTERNATIVE ENERGY SECTOR.

What will happen under the administration provisions designed to create incentives for (ITC), were also happy, though also state they’ll of Barack Obama, a US Senator from Illinois, wind and other renewable energy industries. be lobbying hard in the coming days for who defied long odds to become the 44th “This stimulus package is a critical down a renewable energy grant program (an president of the US? Of course, undertaking a payment on long-term policies to enhance alternative to tax credits that are tricky successful political campaign is not the same energy security, encourage new economic in the current economic climate); an exten- as governing. And yet policy positions staked investment in jobs, and address climate sion to Federal long-term power purchase out in a campaign often provide valuable change,” said Greg Wetstone, AWEA’s senior agreements from 10 to 30 years; subsi- insight into the way in which, once elected, an director for governmental affairs. dised energy financing; a loan guarantee official may govern. program and a manufacturing investment The Senate-passed bill includes a US$7 billion credit. Obama has certainly set off at pace. As we go renewable energy loan guarantee program (an to press, the US Senate has already agreed amount that is $1 billion less than the level So, if, as Wetstone commented, this stimulus a US$838 billion stimulus package, which, provided in the House version of the bill), a package is a down payment on long term though different to the House version agreed 3-year extension of the federal production tax policies, what might we expect as we move several weeks or so earlier, gives considerable credit (PTC), an additional year of bonus depre- forward into the 100 days of Obama’s Presi- support for renewables. ciation for 2009, elimination of the cost caps dency and beyond? for the small wind investment tax credit, and The Democratic-controlled Senate voted 61-37 targeted provisions to encourage construction This much is clear: in America, the energy- to approve the measure, with few Republicans of new transmission lines to deliver electricity related proposals that Obama campaigned opting to back it. generated from renewables. on include some of the most far-reaching and significant ideas ever put forth by a Tough negotiations are now expected in order Wetstone noted that the industry would be mainstream American presidential candidate. to reconcile the Senate bill with the House of pushing for inclusion in the final legislation of As described in his campaign, America faces Representatives’s version, with Obama having a Department of Energy (DOE) grant program “one of the great challenges of our time: set a date of February 16 for a final version. So included in the House bill. “The House DOE confronting our dependence on foreign oil, by the time you’re reading this, in all likelihood grant program is absolutely essential to contin- addressing the moral, economic and environ- the package will have been finalised (we will uing the growth of wind power and other mental challenge of global climate change, keep readers up to date with the news on our renewable energy sources through the down and building a clean energy future that website – www.renewableenergyfocus.com). economy,” he commented. benefits all Americans.” The contrast of these sentiments with those heard from the White The American Wind Energy Association (AWEA) Solar enthusiasts, still pleased with the recent House during the last eight years is, in a word, hailed Senate approval, which includes several 8-year extension of the Investment Tax Credit stark.

88 renewable energy focus January/February 2009 US/Elections

instances, he may regret that in his quest to Getting the job done – the tasks awaiting Obama win the Presidency he made such aggressive statements, but they do serve to underscore ■ invest scheme The new Administration will have to . Put another way, energy his likely approach to governing. For example, quickly in the modernisation of the generation must account for the amount of last year he said, according to The San Fran- electricity grid. Hundreds of megawatts carbon emitted in the generating process. cisco Chronicle, that “electricity rates would of new renewable generation could be In this regard, the new president will seek necessarily skyrocket” under the cap-and-trade moved into the national grid, but only if the Congressional approval of a cap-and-trade programme he envisions. He has also voiced creaking current grid is restructured and system. This will no doubt raise questions made more flexible; among some that the plan will make strong support for investing in the necessary ■ Obama will need to carefully address an American business less competitive. But infrastructure to enable alternative energies to “innovation investment” approach the reality is that it makes no sense to enact be more viable. “One of…the most important that accelerates market take up of the other measures unless the market fully infrastructure projects that we need is a whole renewables. Today less than one percent accounts for the cost of pollution, a matter new electricity grid. Because if we’re going to of the nation’s electricity comes from wind that has received no attention from the be serious about renewable energy, I want to power. Consequently, there is an immediate Bush Administration. be able to get wind power from North Dakota ■ need to take steps to make renewables Among some of the key issues that to population centres like Chicago.” This was more prominent in the nation’s energy prominent renewables organisation said on TV network MSNBC. portfolio. ACORE have highlighted include: how to ■ Investment is needed to develop a new integrate what some States are already doing And in respect to a different challenge, three “green” workforce. This effort is likely to with what the Federal Government might gain quick support as a way to offset the do (this involves constitutional questions weeks before the election, Obama said, enormous job losses of the past 12 months; regarding the separation of powers between “we can’t drill our way out of the [imported ■ There is an enormous need for one Federal the Federal and State Governments; will there oil] problem. That’s why I’ve focused on office to co-ordinate the efforts of all be cap and trade … or interestingly … some putting resources into solar, wind, biodiesal, Federal agencies. Obama has talked about kind of other tax?; what to do about the geothermal. It is absolutely critical that we establishing a “National Energy Council” thorny issue of biofuels – will the money develop a highly fuel-efficient car that’s built as part of his White House operation. The aimed at this effort be diverted to Detroit to not in Japan and not in South Korea, but here efficiencies achieved in such an effort make more fuel efficient cars, for example?; in the USA.” And a few days after his election, would probably be considerable since energy efficiency – should the US aim to Obama , in a taped speech, told American Federal agencies are currently all over the replicate what the EU has already done in Governors that his presidency “will make a map in terms of their responses to and terms of high standards for new buildings?; new chapter in America’s leadership on climate involvement with alternative forms of transmission issues – historically the state energy; public utilities commissions have handled change.” ■ And as the linchpin to the success of his much of the transmission matters, but how overall effort, Obama must address the will the new Administration propose to work So far so good, many may think, and if a stim- matter of a rational energy-pricing with the States on this? ulus Bill is on Obama’s desk this month, there could be real grounds for optimism.

This was confirmed in a speech of 8 January, president, George W Bush. A snapshot of But with the US, and the rest of the world in which he made it clear that renewables Obama ’s plan reflects the sea change that for that matter, facing the most significant would play an important part in “saving” the America is about to undertake: financial and economic crisis in nearly 75 US economy. Outlining his American Recovery years, what are the prospects that the new and Reinvestment Plan, which could see ■ Implementation of an economy-wide cap- president can actually carry through all of his spending of up to US$775 billion and the and-trade system to reduce greenhouse ambitious plans? creation or saving of three million jobs, Obama gas emissions by 80% by 2050; promised that energy is one of his priorities. ■ Ensure that 10% or even 15% of the coun- There is not much time for legislators in try’s electricity comes from renewable Washington to reach agreement, as the As well as using “clean energy” as a job crea- sources by 2010-2012, increasing to 25% by budget has to be ready by mid-February, and tion tool, he addressed the need to upgrade 2025 (currently more than half the States the road will be bumpy. According to the the American transmission system pledging to have a mandated renewable portfolio Associated Press, Republicans warn against start building a new smart grid. According to a standard, but none exists at the federal increased spending and both parties say they report from consultancy KEMA, an investment level as the result of Bush Administration want their stamp on the economic recovery of US$16 billion in smart grid incentives over opposition); effort. The one thing they all agree on, is the the next four years could work as a catalyst in ■ Put one million American-built plug-in need for action. driving associated smart grid projects worth hybrid cars on the road by 2015; up to US$64 billion. It also predicts that by the ■ Help create five million new jobs by strate- The worry is about the deficit, which end of 2009, over 150,000 of the 280,000 new gically investing US$150 billion over the according to the Congressional Budget Office direct jobs will have been created. next 10 years to catalyse private efforts to (CBO), could reach US$1.2 trillion in 2009, and build towards a clean energy future. as the Economist puts it: “Mr Obama faces In short, what Obama has proposed repre- three sceptical constituencies: Republicans, sents a monumental shift in direction from Obama’s campaign statements also reveal fiscal conservatives in his own party, and the energy plan crafted by America’s outgoing his energy philosophy. Perhaps, in some the markets.”

renewable energy focus January/February 2009 89 US/Elections

Obama’s green dream team

President-elect Barack Obama has now announced key members of his energy and environment team, which has been enthusiastically greeted by environmental groups:

■ Dr. Steven Chu, Secretary of Energy – Chu is director of Lawrence Berkeley National Lab, and professor of physics and molecular and cellular biology at University of California, Berkeley. Winner of the Nobel Prize for physics in 1997, Dr. Chu served on the technical staff at AT&T Bell Labs (1978 –1987) and was a professor in the Physics and Applied Physics Departments at Stanford University (1987 – 2004). He has a deep interest in climate change issues and is an expert in renewable energy; ■ Lisa Jackson, Environmental Protection Agency (EPA) Administrator – Jackson became the head of New Jersey’s Department of Environmental Protection (DEP) in 2006, where she helped develop the Northeastern states Regional Greenhouse Gas Initiative (RGGI); ■ Nancy Sutley, Chair of the White House Council on Environmental Quality (CEQ) – Sutley currently serves as the Deputy Mayor for Energy and Environment for the City of Los Angeles, and is also Mayor Villaraigosa’s appointment to the Board of Directors for the Metropolitan Water District of Southern California; ■ Carol Browner, Assistant to the President for Energy and Climate Change – Browner is Principal of The Albright So, in short, Obama’s key to success will be The three phases of Obama’s blueprint Group LLC, where she provides his ability to link three separate but related strategic counsel in the critical areas objectives: Obama’s plan will most likely be implemented of environmental protection, climate change, and energy conservation and over three time periods. The first period will run security. Prior to her current position, ■ First, he must reinvigorate an ailing from 20 January 2009, the day he takes office, she served as Administrator of the U.S. economy; through to the first of May 2009. Arguably in this Environmental Protection Agency, a ■ Second, he needs to address America’s first 100 days in office his political power will be Cabinet-level position she held for energy security challenges; the greatest. During this period his actions will eight years; ■ And finally, he has committed his adminis- focus on executive-level decisions that he can ■ Heather Zichal, Deputy Assistant to the tration to addressing climate change. make without the involvement of Congress. President for Energy and Climate Change – Zichal currently serves as the co-chair While no small tasks by any measure, there Among other things, observers should look for the Energy and Environment Policy are indications that America’s financial prob- to see how his energy team interacts with Team for the Obama Transition Team. lems will open enormous opportunities for his economic stimulus team. To be sure, all Obama to drive ahead with his energy plans. signs point to a close working relationship While the incoming Administration has not, since John Podesta, the former chief of staff Podesta, a well-regarded Washington insider, of course, welcomed the economic crisis, it to President Bill Clinton, has played a key role has called for an energy policy overhaul that must now attempt to find the best in a bad in Obama ’s transition efforts and understands takes account of alternative forms of energy. situation. the need for such a partnership. Moreover, despite the economic downturn, the

90 renewable energy focus January/February 2009 US/Elections

from powerful organisations such as the US Analysis – what to watch Chamber of Commerce, which argues that a out for post January 2009 new energy plan such as that envisioned by Obama will hurt American competitiveness. The first 100 days in office for the new And while Democrats will control both houses Administration offers both opportunities… of Congress, it bears mentioning that some as well as risks. Opportunities to create of these individuals are considerably more momentum for change, but risks of not being perceived to be changing things conservative when it comes to reforming quickly enough. So analysts talk in terms of energy policy than Obama. But perhaps his “low hanging fruit” – changes that will be greatest challenge will be overly high expec- easier to make, as well as very visible. tations. In the wake of 8 years of indifference, neglect, and error on the part of the Bush Obama’s first priority has been the Administration, the new man will need to Economic Stimulus Bill. This legislation includes some money for infrastructure manage the expectations of those – particu- (such as smart grids) and also some larly environmentalists – who will see anything additional tax credits. In order to less than 100% success as somehow a failure. demonstrate the mantra of “change” in Washington, the team will probably look However, to the degree he is able to link the to put in place a series of other popular energy plan efforts with the economic stimulus Bills, and that could include some kind new president seems poised to ask for at least package, Obama may find the level of opposition of renewable energy Bill, to focus more US$1.5 billion in alternative energy research and considerably muted. He can point out that the directly on things like a federal RPS, more development funds as a “down payment” on his current energy policy, such as it is, has left the funding for renewables and energy campaign pledge to invest US$150 billion in this county in an extremely compromised position efficiency research etc. From the sounds sector over 10 years. Finally, his economic stim- from both economic and security standpoints. of it, these two bills will be pushed hard during the first 100 days. Cap and trade will probably come a bit later, but not too The contrast of [Obama’s] The road ahead much later. Several weeks after his election, and with the Because of the complexity of the energy sentiments with those country reeling from months of bad economic issues, there are multiple Congressional news, Obama reflected on the road ahead. Committees that will be handling bits heard from the White and pieces of the entire package. For “We’ll put people back to work…building wind example, the underlying policy issues House during the last eight farms [and] fuel-efficient cars,” adding that will be handled by the Senate Energy investments in alternative energy projects are Committee (Sen. Jeff Bingaman years is, in a word, stark. “long term investments in our economic future.” from NM) and the House Commerce Committee (Rep. Henry Waxman of ulus package is likely to include significant levels Without doubt, it will be difficult to implement Cal). The legal/regulatory issues will be of funding for his “green jobs” commitment. a new energy plan that takes account of the Judiciary Committees handled by the economic challenges on one hand and the in both chambers. The tax-related The second phase will run from May 2009 environmental and security ones on the other. issues will be handled by the Senate Finance and House Ways and Means through the mid-term elections of November And, of course, unforeseen events can and will 2010. During this period Obama will seek put the new administration to the test. Committees. Finally the cap and trade revenues (that is to say the money legislative action to implement his plan. Key generated from cap and trade through components to watch for are a cap-and-trade But Obama has travelled this road before in his the auctions) will be handled by the system for carbon emissions as well as investment quest to be elected president. Indeed, he may Senate and House Appropriations in a smart grid. The Obama Administration must be able to turn the nation’s formidable chal- Committees. So this will be a real be careful, however, to manage the public’s lenges into opportunities and in the process legislative puzzle to figure out. expectations about policies that in the short strengthen his reputation as a transforma- Energy policy will likely be handled term might result in some economic dislocation. tional political figure. And with the stimulus Bill at White House level by former EPA already nearing his desk, he is certainly showing Administrator Carol Browner. She will The third phase will begin in January 2011. At his desire to bang heads together on both sides co-ordinate the policy-making work of this point Obama will face re-election in just of the political spectrum. the following agencies: Department of over 20 months, ie, November 2012, and he Interior Department of Energy EPA , , , will be faced with shoring up already enacted Council of Environmental About the author: and the legislation that needs fine-tuning as well as Quality. She is heading Obama’s transition Don C. Smith is renewable energy focus’ US looking at the horizon to see what challenges team in looking at these agencies and correspondent. He serves as Director of the are in place at that moment. Environmental and Natural Resources Law & Policy she’ll be named to this new position which graduate programme at the University of Denver Sturm will be called the “National Energy Council” College of Law, and as Editor in Chief of Utilities Policy, which will be similar in structure to the Of course, not everyone agrees that the new a peer-reviewed journal focusing on the performance Administration is taking the right approach. and regulation of utilities. He can be reached at president’s “National Security Council.” [email protected] or on +1-303-8871-6052. The new President will face opposition

renewable energy focus January/February 2009 91 Product Finder

Advertisers’ Guide to Product Finder Solar Piping Garrad Hassan Use this guide to promote the full range of Products and Services your Company supplies. Please note that if a suitable category is not already listed, we shall create a AEROLINE Tube Systems Baumann GmbH new one specifically for you. Reader Guide to Product Finder Im Lehrer Feld 30 89081 Ulm, Germany Welcome to Product Finder, the suppliers guide of equipment & services. Product Finder is also available online at www.renewableenergyfocus.com . Costs for Product Tel: +49 73 19 32 9270 Finder entries are: Fax: +49 73 19 32 9276 St Vincent’s Works, Silverthorne Lane Email: [email protected] Print Entry in magazine only: £290/€440/$460 Print Entry in magazine & Standard Website: www.isiclick.com Bristol, BS2 0QD, England Online Entry: £340/€525/$545 Pipework systems for solar installations with Tel: +44 (0)117 972 9900 (Standard Online entry is just contact details & links to email & web addresses) copper or stainless steel tubes Fax: +44 (0)117 972 9901 Print Entry in magazine & Enhanced Online Entry: £390/€610/$630 Email: [email protected] (Enhanced Online entry includes contact details, links, company logo and 100 words Solar Radiation Website: www.garradhassan.com of text) Janine Castle Martine Cariou-Keen Measurement Garrad Hassan is an independent renewable Tel: +44 (0) 1865 843844 Tel: + 44 (0) 1865 843845 energy consultancy serving the wind, marine and Email [email protected] Kipp & Zonen B.V. Email: [email protected] solar sectors worldwide. With offices across the globe, it offers engineering consultancy services, technology products and training courses that meet the needs of stakeholders at all stages of the renewable energy project lifecycle. Delftechpark 36, 2628 XH, Delft Solar The Netherlands Initially formed as a wind energy consultancy in Photovoltaics Tel: +31 (0)15 2755 210 1984, Garrad Hassan has advised on more wind Fax: +31 (0)15 2620 351 farm development that any other company in Conergy AG Email: [email protected] Inverters Website: www.kippzonen.com the world and is widely recognised as the leading authority on the subject. It is now applying its SMA Solar Technology AG knowledge and expertise to support the devel- Services opment of the broader renewable energy arena. Consultancy

Anckelmannsplatz 1, Atkins, Sonnenallee 1 20537 Hamburg 34266 Niestetal Germany Germany Phone: +49 (0) 6897 8106-150 Solar Tel: +49 561 9522 0 Fax: +49 (0) 6897 8106-200 Chilbrook, Fax: +49 561 9522 100 Email: [email protected] Oasis Business Park, Coating Equipment Email: [email protected] Website: www.conergy.com Eynsham, Oxon, OX29 4AH Website: www.SMA.de Conergy is a global manufacturer of cutting- Tel: +44 (0) 1865 734148 edge renewable energy solutions that stand Fax: +44 (0) 1865 883060 Sputnik Engineering AG for superior quality and proven reliability. Tens Email: [email protected] of thousands of renewable energy systems Website: http://www.atkinsglobal.com/areas_ throughout the world produce clean energy with of_business/energy/renewables/ OC Oerlikon Balzers Ltd technology from Conergy. We produce and trade Atkins offers an independent one-stop shop for Irmali 18, P.O Box 1000, LI-9496 Balzers photovoltaic, solar thermal and small wind power your renewable energy, carbon management systems as well as heat pumps. Lichtenstein and environmental needs. Our wide range Tel: +423 388 6474 Höheweg 85 We are present on five continents with offices in of experience allows for professional services, Fax: +423 388 5421 the following countries: 2502 Biel, including feasibilities and developments, across Email: [email protected] Switzerland Web: www.oerlikon.com/solar Australia | Austria | Belgium | Brazil | Canada | China all commercially established and emerging Tel:+41 32 346 5600 | Cyprus | France | Germany | Greece | India | Italy | Fax: +41 32 346 5609 Korea | Mexico | USA | Spain | Switzerland | Turkey renewable energy technologies. We have Inverters Email: [email protected] market-leading expertise in all the technical, To find out more about Conergy in your country Website : www.solarmax.com environmental and commercial elements please go to: www.conergy.com comprising a wind farm development and, with PV Module Manufacturers our established oil and gas business, we are able Suntech Power Holdings Co Ltd to deliver key support solutions across all offshore Kotak Urja Pvt Ltd wind disciplines With offices throughout the UK SUNGROW POWER SUPPLY CO., LTD. and the rest of the World, we offer local solutions No. 2 Tianhu Rd. High & New Technology with a global perspective. Development Zone, Hefei, Anhui, Suntech Headquarters P. R. China, 230088 #378, 10th Cross, 4th Phase, PIA 17-6 Changjiang South Road Tel: +86-551-5327834/5327845 Bangalore, 560058 New District Wuxi, Jiangsu Province Fax: +86-551-5327858 Karnataka, India China, 214028 E-mail: [email protected] Tel: +91 80 2836 3330 Tel: +86 510 8531 8888 Website: www.sungrow.cn Fax: +91 80 2836 2347 Fax: +86 510 8534 3321 Email: [email protected] Email: [email protected] Metrology Website: www.kotakurja.com Website: www.suntech-power.com

Suntech America, Inc. 188 The Embarcadero, Suite 800 San Francisco, CA 94105, U.S.A. Tel: +1 415 882 9922 OC Oerlikon Balzers Ltd Fax: +1 415 882 9923 Irmali 18, P.O Box 1000, LI-9496 Balzers Email: [email protected] Lichtenstein Tel: +423 388 6474 Suntech Europe Fax: +423 388 5421 Canada House, 272 Field End Road Email: [email protected] Eastcote, Middlesex, HA4 9NA, UK Web: www.oerlikon.com/solar Tel: +44 20 8582 0393 Fax: +44 20 8582 0394 Email: [email protected] Production Solutions

Suntech Australia Unit 7, 24-28 Skarratt Street North Silverwater, NSW 2128, Australia Tel: +61 2 9648 5600 Fax: +61 2 9648 5605 OC Oerlikon Balzers Ltd Email: [email protected] Irmali 18, P.O Box 1000, LI-9496 Balzers Lichtenstein Tel: +423 388 6474 Fax: +423 388 5421 Email: [email protected] Web: www.oerlikon.com/solar

92 renewable energy focus January/February 2009 Product Finder

Solar Software Wind OFFshore Small Scale Turbines Wind Software Design & Simulation Slip Ring Assemblies Fortis Wind Energy Software for Wind Prediction & Power Software Carbone Lorraine Applications Electriques Production Valentin Energy Software Balthasar Klimbie Geerboogerd 11 Riso DTU 2611 WZ Delft The Netherlands Stralauer Platz 34, D-10243 Berlin, Germany Tel+31 (0) 15 21 90 512 Tel: +49 30 588 439 0 Carbone Lorraine Applications Electriques Fax: +31 (0) 84 71 65 618 Fax: +49 30 588 439 11 10 rue Roger Dumoulin – F-80084 Amiens Email: [email protected] National Laboratory for Sustainable Energy Email: [email protected] Cedex 02 - France Website: www.fortiswindenergy.com Wind Energy Department Website: www.valentin.de Tel: +33 (0) 3 22 54 45 35 P.O Box 49, Building VEA-118 Solar Thermal and PV Systems planning – Fax: +33 (0) 3 22 54 44 03 Wind Diesel Hybrid DK-4000, Roskilde Denmark download the free DEMOS and TUTORIALS from Email: [email protected] Website: www.elec.carbonelorraine.com Systems Contact: Jakob Mann our website! www.dtu.co.uk PitchWind Tel: +45 4677 5000 Wind ONshore Fax: +45 4677 5970 The Wind Hybrid Power Sytems Company Email: [email protected] Solar Thermal Website: www.wasp.dk Slip Ring Assemblies A part of DTU Thermal Collectors WasP is a PC program for predicting wind climates Carbone Lorraine Applications Electriques and power productions, from wind turbines and NEP Solar wind farms. The predictions are based on wind data measured at meteorological stations, in the Industrial 20-100 kW same region. The program includes a complex Wind Diesel Hybrid Power Systems terrain flow model, a roughness change model, a For autonomus grids in remote locations 80% model for sheltering obstacles and a wake model wind penetration at production sites! for wind farms. More than 2100 users in over 100 Unit 21/14 Jubilee Avenue Pitchwind Systems AB countries and territories use WAsP for: Wind farm Warriewood NSW 2102 production, wind resource mapping, wind farm Carbone Lorraine Applications Electriques Box 89 Australia efficiency, wind climate estimation, micro-siting 10 rue Roger Dumoulin – F-80084 Amiens SE-44322 Lerum Tel: +61 2 9998 4700 of wind turbines, wind atlas generation, power Cedex 02 - France Sweden Fax: +61 2 9999 2077 Tel:+46 302 519 10 production calculations & wind data analysis. Email: [email protected] Tel: +33 (0) 3 22 54 45 35 Fax:+46 302 519 11 WAsP 9.0 is the latest version of the WAsP program Website: www.nep-solar.com Fax: +33 (0) 3 22 54 44 03 Email: [email protected] Email: [email protected] and you may download a free demo version from Website: www.elec.carbonelorraine.com Web:site www.pitchwind.se the WAsP download page www.wasp.dk

#! ! " ! &($ $

' # & % ' " ! "! ' ! ! " ! & ' "&! ! "! ' $ !! !! ! # &$

*Publishers predicted ﬁgures for 2007

For more information, please contact Naomi Reeves on +44 (0)1865 843271 or by email on [email protected]

renewable energy focus January/February 2009 93 Events Upcoming events

3-5 March 2009 17-19 March 2009 Ecobuild & Futurebuild 2009 Middle East Waste Summit ’09 London, UK Dubai, UAE www.ecobuild.co.uk www.wastesummit.com Advertisers’ index 4 March 2009 17-19 March 2009 January/February 2009 California Wind Energy Forum 2009 RIO9 -World Climate and Energy Event, & Davis, California, USA LAREF 2009 -Latin American Renewable cwec.ucdavis.edu/forum2009 Energy Fair Rio de Janeiro, Brazil 4 March 2009 www.rio9.com Campbell Scientific, Inc 25 Siemens Windpower Nano4Energy 2009 A/S OBC 17-19 March 2009 European Wind Energy Nottingham, UK www.nano4energy.net Transmission and Distribution Europe Association 27 Solar Promotion GmbH 21 2009 and 65 Helioakni S.A 9 9-10 March 2009 Barcelona, Spain www.td-europe.eu Wuxi Suntech Power Co. 2nd International Workshop on IOWA Department of Concentrating Photovoltaic Power ltd 61 19-20 March 2009 Economic Development 7 Plants: Optical Design and Grid Suzlon 2 Connection CleanEquity Monaco 2009 NRG Systems Inc 45 Monte Carlo , Monaco Darmstadt, Germany Tobias Renz Fair 96 concentrating-pv.org/index.html www.cleanequitymonaco.com Power Pioneer Group Inc 11 23-24 March 2009 TSC Publishing IFC 10-12 March 2009 REpower Systems AG 41 2009 Canadian Renewable Energy Palm Oil - The Sustainable 21st Century WPD Wind Project Oil ReflecTech 69 Workshop Development GmbH & Co. London, UK Regina, Saskatchewan, Canada KG 43 www.crew2009.com www.soci.org/SCI/events/ Renewable Energy Systems Ltd 5 10-12 March 2009 24-25 March 2009 Yorkshire Forward 15 Renewable Energy World Conference & Geothermal Innovation & Investment Riso National Laboratory 13 Expo North America San Francisco, California, USA www.greenpowerconferences.com Las Vegas, Nevada, USA rewna09.events.pennnet.com/fl/index. cfm 24-25 March 2009 Refining, Biofuels and Market Outlook 11-12 March 2009 in 2009 6-8 April 2009 13-15 April 2009 IGNITION09 - The UK Wood Fuel Expo San Antonio, Texas, USA Gateshead, UK www.hartenergyconferences.com 5th International Congress & Exhibition 6th International Solar PV Exhibition www.ignition09.co.uk on Energy Efficiency & Renewable Shanghai, China 26-28 March 2009 Energy Sources for South-East Europe www.ch-solar.com 12-15 March 2009 Sofia, Bulgaria ENREG ENERGIA REGENERABILA 14-15 April 2009 New Energy Husum Arad, Romania www.viaexpo.com/congress-ee-vei/ eng/congress.php Husum, Germany www.enreg-expo.com Surviving the Shakeout - Greentech Media’s 2009 Solar Industry Summit www.new-energy.de 7-8 April 2009 30 March - 1 April 2009 Phoenix, Arizona, USA 16-18 March 2009 2009 4th Asia Solar Photovoltaic Carbon TradeEx America www.greentechmedia.com World Biofuels Markets Exhibition Washington, DC, USA www.carbontradeexamerica.com 16-18 April 2009 Brussels, Belgium Shanghai, China RENEXPO Central Europe www.worldbiofuelsmarkets.com www.asiasolarexpo.com 8-10 April 2009 Budapest, Hungary 16-19 March 2009 30 March - 3 April 2009 3rd China (Shanghai) International Wind www.renexpo-budapest.com Energy European Wind Energy Conference & NHA Conference and Hydrogen Expo 20-24 April 2009 Exhibition (EWEC 2009) Columbia, South Carolina, USA Exhibition & Conference 2009 www.hydrogenconference.org Shanghai, China 4th CLEAN MOVES Conference & Expo Marseille, France www.1exhibition.com www.ewec2009.info Hannover, Germany 2-3 April 2009 www.cleanmoves.com 8-10 April 2009 17-19 March 2009 Platts European Renewable Energy International Green Energy EXPO 2009 20-24 April 2009 AMERICANA Berlin, Germany www.platts.com/Events Daegu, South Korea 15th Group Exhibit Hydrogen + Fuel Montreal, QC, Canada www.energyexpo.co.kr/eng www.americana.org Cells (at Hannover Messe 2009) 2-5 April 2009 Hannover, Germany Bios Energie 2009 www.fair-pr.com Lons le Saunier, France www.boisenergie.com

94 renewable energy focus January/February 2009 Events

20-24 April 2009 7-9 May 2009 31 May - 3 June 2009 8-10 July 2009 Hannover Messe 2009 (includes wind) Greenbuilding 2009 Hydrogen + Fuel Cells 2009: Wind Power Asia Hannover, Germany Verona, Italy International Conference and Trade Beijing, China www.hannovermesse.de/energy_e www.greenbuildingexpo.eu Show (HFC2009) www.windpowerasia.com Vancouver, British Columbia, Canada 20-24 April 2009 11-13 May 2009 www.hfc2009.com 14-16 July 2009 Power & Electricity World Africa 4th Renewable Energy Finance Forum Intersolar North America 3-4 June 2009 Johannesburg, South Africa - China San Francisco, California, USA www.terrapinn.com/2009/powerza Beijing, China Energy Harvesting & Storage www.intersolar.us www.euromoney.com Cambridge, UK 21-24 April 2009 www.idtechex.com/EH 16 July 2009 PV Tech Expo China 11-15 May 2009 BWEA Cymru 2009 7-12 June 2009 Shanghai, China ACHEMA 2009 - 29th International Cardiff, Wales, UK www.nepconchina.com Exhibition-Congress on Chemical 34th IEEE Photovoltaic Specialists www.bwea.com/wales/index.html Engineering, Environmental Protection Conference 21-25 April 2009 10-12 August 2009 and Biotechnology Philadelphia, Pennsylvania, USA www.34pvsc.org 3rd International Exhibition on Frankfurt am Main, Germany 3rd Renewable Energy India 2009 Expo Renewable Energies & Environment in www.achema.de/en/ACHEMA.html New Delhi, India 8-10 June 2009 Africa www.renewableenergyindiaexpo.com Dakar, Senegal 12-14 May 2009 7th International Fuel Cell Science, 14-16 September 2009 www.sinergie-afrique.com Genera: Energy & Environment Engineering & Technology Conference International Trade Fair Newport Beach, California, USA 4th Risoe International Energy 22-23 April 2009 www.asmeconferences.org/fuelcell09/ Madrid, Spain Conference 2009 International Small Wind Conference www.ifema.es Risoe, Denmark 9-11 June 2009 2009 www.risoe.dtu.dk/Conferences/ energyconf09.aspx Watford, UK 12-16 May 2009 European Future Energy Forum 09 www.iswc2009.com SOLAR 2009 Bilbao, Spain www.europeanfutureenergyforum.com 14-16 September 2009 New York , USA 22-23 April 2009 www.ases.org European Offshore Wind 2009 10-12 June 2009 REXchange 2009 Conference & Exhibition Copenhagen, Denmark 17-19 May 2009 R-Energy (Buenos Aires) Stockholm, Sweden www.eow2009.info www.reexchange.eu Second Annual Waste-to-Fuels Buenos Aires, Argentina www.r-energy.info Conference 23-25 April 2009 15-18 September 2009 San Diego, California, USA 15 June 2009 China EPower 2009 www.waste-to-fuels.org SolarPACES 2009 Shanghai, China Solar Energy - A Window to the Future Berlin, Germany www.china-epower.com 19-20 May 2009 Penang, Malaysia www.solarpaces2009.org www.mbipv.net.my Greener by Design 2009 27-28 April 2009 16-18 September 2009 San Francisco, California, USA 16-18 June 2009 2nd Renewable Energy Finance Forum - www.greenerdesign.com/ Clean Energy Expo Asia Latin America greenerbydesign EnergyOcean 2009 Singapore www.cleanenergyexpoasia.com Rio de Janeiro, Brazil Rockport, Maine, USA www.reff-latam.com 19-21 May 2009 www.energyocean.com 16-18 September 2009 Sustainabilitylive! 2009 17-19 June 2009 27-29 April 2009 Birmingham, UK Coasts, Marine Structures and Energy Efficiency Global Forum & www.sustainabilitylive.com R-Energy (Sao Paulo) Breakwaters 2009 Exhibition Sao Paulo, Brazil Scotland, UK 19-22 May 2009 www.r-energy.info www.ice-breakwaters.com Paris, France www.eeglobalforum.org World Renewable Energy Congress - 23-25 June 2009 21-25 September 2009 WREC 2009 - Asia 27-29 April 2009 Bangkok, Thailand 8th World Wind Energy Conference 24th EUPVSEC Implementation of Renewable Energy www.thai-exhibition.com/wrec2009asia/ 2009: Hamburg, Germany www.photovoltaic-conference.com in the Emerging Markets of Africa, Latin Wind Power for Islands - Offshore and 20-21 May 2009 Onshore America, and the Caribbean 22-24 September 2009 All-energy’09 & H2O9 Jeju Island, South Korea San Francisco, California, USA www.2009wwec.com www.reem09.net Aberdeen, UK Grove Fuel Cell Symposium www.all-energy.co.uk London, UK 28-30 April 2009 24-25 June 2009 www.grovefuelcell.com 25-26 May 2009 BWEA Offshore 2009 Cleantech Forum XXII Copenhagen 30 September - 2 October 2009 4th European Solar Thermal Energy Westminster, UK Copenhagen, Denmark www.bwea.com/offshore/index.html www.cleantech.com/copenhagenforum Conference 3rd International Conference on Solar Air-Conditioning Munich, Germany 28 June - 3 July 2009 30 April 2009 www.estec2009.org Palermo, Italy Lucerne Fuel Cell Forum 2009 www.otti.de BWEA Wave & Tidal 2009 25-26 May 2009 Lucerne, Switzerland Bath, UK www.efcf.com 30 September - 3 October 2009 www.bwea.com/marine/ 5th PV Industry Forum 2009 conference2009.html 5th Dubrovnik Conference on Munich, Germany 29 June - 3 July 2009 www.pvindustry.de Sustainable Development of Energy, 4-7 May 2009 17th European Biomass Conference & Water and Environment Systems WINDPOWER 2009 Conference & 27-28 May 2009 Exhibition Dubrovnik, Croatia Exhibition Biofuels International Expo & Conference Hamburg, Germany www.sdewes.fsb.hr www.conference-biomass.com Chicago, Illinois, USA Amsterdam, the Netherlands www.windpowerexpo.org www.biofuelsinternationalexpo.com 8-10 October 2009 2-3 July 2009 European Bioenergy Expo & Conference 6-8 May 2009 27-29 May 2009 DENEX 2009 (EBEC) PV Power Expo 2009 Intersolar 2009 Wiesbaden, Germany Stoneleigh Park, Warwickshire, UK www.denex.info Shanghai, China Munich, Germany www.ebec.co.uk www.snec.org.cn/indexe.asp www.intersolar.de 8-10 July 2009 10-14 October 2009 7-9 May 2009 27-30 May 2009 Clean Energy Expo China WEFTEC 2009 10th Solarexpo: International Exhibition EnerSolar+ Beijing, China Orlando, Florida , USA www.cleanenergyexpochina.com & Conference on Renewable Energy & Milan, Italy www.weftec.com Distributed Generation www.enersolarplus.com Verona, Italy www.solarexpo.com

renewable energy focus January/February 2009 95 Events

11-14 October 2009 11-13 November 2009 17-19 January 2010 21-25 September 2010 ISES Solar World Congress 2009 2009 Greenbuild International World Future Energy Summit HUSUM WindEnergy Johannesburg, South Africa Conference and Expo Abu Dhabi , UAE Husum, Germany www.swc2009.co.za Phoeniz, Arizona, USA www.worldfutureenergysummit.com www.husumwindenergy.com www.greenbuildexpo.org 20-22 October 2009 16-20 February 2010 2-6 October 2010 BWEA 31: BWEA’s 31st annual 16-20 November 2009 Solar Energy 2010 WEFTEC 2010 conference and exhibition Fuel Cell Seminar 2009 Berlin, Germany New Orleans, Louisiana, USA Liverpool, UK Palm Springs, California, USA www.messen-profair.de www.weftec.com www.bwea.com/events/index.html www.fuelcellseminar.com 23-27 March 2010 12-14 October 2010 21-23 October 2009 26-28 November 2009 MCE Expo 2010 Solar Power International 2010 China WindPower 2009 RENEXPO Austria Milano, Italy Los Angeles, California, USA Beijing, China Salzburg, Austria www.mcexpocomfort.it www.solarpowerconference.com www.globalwind.org.cn www.renexpo-austria.com 5-6 May 2010 18-20 October 2010 27-29 October 2009 30 November - 11 December Waste to Energy 2010 2010 Fuel Cell Seminar & Exposition Solar Power International 2009 2009 Bremen, Germany San Antonio, Texas, USA www.wte-expo.com www.fuelcellseminar.com Anaheim, California , USA COP15 Copenhagen 2009 - United www.solarpowerconference.com Nations Climate Change Conference 16-19 May 2010 27-29 October 2009 Copenhagen, Denmark WINDPOWER 2010 Conference & www.cop15.dk Windpower Shanghai 2009 Exhibition Shanghai, China 12-15 December 2009 Salt Lake City, Utah, USA www.71www.cn/english/index.aspx www.awea.org/events Electricx Power 2009 3-5 November 2009 Cairo, Egypt September 2010 www.electricx-egypt.com RENEXPO Eastern Europe Kiev, Ukraine 14-16 January 2010 13-17 September 2010 www.energie-server.de IFAT 2010 InterSOLUTION Munich, Germany Gent, Belgium www.ifat.de www.intersolution.be

For a full list of events, please go to: http://www.renewableenergyfocus.com/events/index.html

HANNOVER MESSE 2009 April 20 – 24 Tobias Renz FAIR-PR

Join Europe‘s largest and most important H2/FC exhibition! The Group Exhibit H2/FC offers an international community for hydrogen and fuel cell-related companies, inside the world’s largest energy expo – the HANNOVER MESSE. 150 H2/FC exhibitors including Ballard Power, Dana, Plug Power, Hydrogenics, MTU Onsite Energy, SFC Smart Fuel Cell and many more will participate. Proﬁt from 6000 total exhibitors in Energy, Wind, GROUPEXHIBIT Power Plant Technology, Micro Technology, Automation and Research & Technology as well as 200,000 visitors at the HANNOVER MESSE! HYDROGEN For info about exhibiting or visiting, contact Megan McCool at [email protected] or visit us at www.fair-pr.com. FUEL CELLS

96 renewable energy focus January/February 2009 Introducing…

New interactive online gateway for Elsevier’s energy research content

energylocate brings together information on all our energy products and services into a one-stop community website for energy scientists and professionals.

Features all our energy content: online books journals magazines conferences videos subject news feeds social networking topical discussion forums various RSS feeds powered by ScienceDirect and Scopus and more!

Try it out today www.energylocate.com How do we harness the power of the wind offshore for the cities onshore?

The wind is at its strongest and most constant out at sea, so offshore wind farms deliver even more clean power.

At the Øresund, off the Swedish coast, a revolution is taking place. In fact, hundreds of thousands of revolutions every day. Revolutions of wind turbine blades out at sea, away from the coast, where wind conditions are at their strongest. The Lillgrund wind farm – Sweden’s largest, operated by Vattenfall – provides clean and renewable power for 60,000 Swedish households. With 17 years of experience in offshore wind power, Siemens has the reliable technology to get the best out of offshore wind resources. www.siemens.com/energy

Answers for energy. E50001-W310-F117-X-4A00