Feed-In Tariffs Aid the Growth of Green Industries
Friday, April 11th, 2008
How has Germany, a country not especially known for its suntans, become the world leader in solar power? Despite its geographical limitations, the land that brought us Volkswagon and Octoberfest may now be paving the way for a PV revolution. In 2006, they accounted for 968 megawatts of solar-generated electricity, 86% of Europe’s entire output, especially impressive considering that Europe was the largest regional market for photovoltaics that year. As a consequence, Germany has already reached the EU’s benchmark of 12.5% renewably generated electricity for its member nations. And all this has been accomplished in a relatively short period of time.
Most of the development of Germany’s solar industry has occurred since 1990, when the “Act on the Sale of Electricity to the Grid” was passed. An updated version, the Renewable Energy Sources Act (EEG) went into effect in 2000. This law, touted by environmental advocates as the best of its kind, relies on generous “feed-in tariffs” to catalyze economic growth. These tariffs establish fixed prices above those currently on the market, essentially guaranteeing profits and creating an otherwise stable environment for investment. Utilities are required to purchase renewable energy at these rates, passing the extra costs on to their customers in the form of higher electric bills, an increase of about 5% a month for the average German household. The hope is that this controlled growth will pay off down the line as the industry is gradually weaned off of these tariffs, which decrease by about 5% a year from initial rates three times higher than retail cost. As technology improves and rates come back to market levels, electric bills will continue to come down, as well.
The effects of this policy have also filtered into other green industries. Germany has become the third largest manufacturer of solar panels behind China and Japan, and analysts are expecting employment in Germany’s renewable sector to nearly triple in the next two decades (from 250,000 to 710,000 by 2030), matching their vaunted automobile industry.
Ultimately, the success of this policy will depend on how quickly the solar industry can stand on its own feet. The German government is currently considering tweaking the EEG to cut feed-in tariffs further — 9.2% next year and 7-8% in following years — and extending it to other renewable industries such as wind power. At the moment these tariffs operate on a 20-year fixed rate contract, though this could change as well.
Whatever the result, this policy seems to be working so far. California has recently approved its own feed-in tariffs and other states are likely to follow. Critics contend that such subsidy programs are not efficient, but conventional energy industries are also heavily subsidized. At the very least, Germany has provided the rest of the world with an innovative model for financing renewable energy. Washington should take note.
Posted in Energy, Legislation, Photovoltaics, Renewables | Permalink
13 Best Energy Ideas
Thursday, April 3rd, 2008 Yes magazine shares 13 ideas, energy policies and technologies that can get us on the path toward a sustainable future (plus a few that won’t).
Posted in Energy, Energy Efficiency, Politics, Renewables | Permalink
Acciona Unveils New CSP Power Plant
Friday, March 21st, 2008
Las Vegas is known for many things, but cutting-edge solar technology has never been one of them. Until recently, that is. Just a few miles outside of Las Vegas sits a prototype 64MW power plant called “Nevada Solar One“. Though its official opening was held on February 22, the plant has been up and running since last June and can generate enough energy to power more than 14,000 homes. In effect, Nevada Solar One uses a combination of solar and steam to operate; this technology, known as “concentrating solar power” (CSP), generates electricity by using the sun’s rays to boil water and the resulting steam to power turbines. If successful, CSP could revolutionize the energy industry.
The brainchild of Acciona SA, a Spanish conglomerate that specializes in civil engineering, construction and infrastructures, Nevada Solar One uses parabolic mirrors to focus sunlight on a tube of fluid above them. Other CSP plants, including an 11MW facility that opened in Spain last year, utilize different designs. The plant in Spain uses a dense array of smaller mirrors to focus light on a water tower at its center. Other variations use long, flat mirrors or devices that look like satellite dishes. Some even continue to provide power after the sun sets by storing energy in molten salt. CSP is also more cost-effective than traditional solar installation, in that it doesn’t rely on pricey and energy-intensive silicon panels.
CSP’s future clearly seems sunny. According to the SEIA, another 11,000MW worth of CSP plants are supposedly in the pipeline thanks to generous federal tax breaks that offset up to 45% of initial costs. If all goes according to plan, viable solar power may be right around the corner.
Posted in Energy, Energy Efficiency, Global Warming, Renewables, Technology | Permalink
The Solar Factory in Your Garden
Friday, February 22nd, 2008
These days the efficiency of solar technology is improving at a dizzying rate; newspapers and websites are filled with daily reports about novel approaches and applications that are helping to make solar power a practical large-scale energy source. One new approach gets its inspiration from the plant kingdom.
The majority of plants utilize photosynthesis to convert sunlight into energy, and do so at nearly 100% efficiency. New research sheds a fascinating light on the process by which this is accomplished.
Conventional wisdom has long held that light-collecting chromophores absorb and then transfer energy in a linear manner, passing energy from molecule to molecule, sort of like a biochemical assembly line. New studies, however, reveal a radically different process, with potentially seismic implications for solar technology. Instead, energy flow appears to adopt a wave-like motion along all paths at once, arriving at its destination almost instantaneously and ensuring that this energy takes the most efficient route. Researchers are not yet sure how plants accomplish this, but greater understanding of this quantum-like effect could be applied to improvements in the process by which photovoltaics gather and distribute energy, especially regarding issues about the feasibility of solar over a large-scale network.
Scientists at the University of Chicago are investigating this process by zapping green sulfur bacteria with ultrashort laser pulses to track the energy flow through the plant’s internal system. I anticipate that future steps of this investigation will look at the same process in more complex plants.
Posted in Energy, Energy Efficiency, Renewables, Sustainability, Technology | Permalink
Helping to demystify the world of renewable energy rebates and incentives
Wednesday, February 20th, 2008 Trying to understand the rebate and incentive systems your state has for solar panel installations can often be confusing and frustrating. That is why the people at Cooler Planet, a Seattle-based company, have created a Solar Power Rating Map , which analyzes and compares each states incentive programs listed by the Database of State Incentives for Renewables & Efficiency.
In order to carry out the analysis, Cooler Planet
“…took a typical 3kW system ($27,000) and ran it through each of the state’s rebates and incentives, estimated the electricity the system would offset in 5 years, and came up with an estimate of the net cost for a solar power system for each state. With this cost as well as factoring in property tax exemptions and available loans, we came up with a Cooler Planet Solar Rating score for each state.”
New York received a 67 Cool Planet Rating. Follow the Cool Planet link to see where other states rank in comparison.
***Also check out their awesome California Solar Power History Map!
Posted in Legislation, Photovoltaics, Renewables, Solar One | Permalink
New Video of Green Renter Lecture Up Online
Thursday, January 3rd, 2008
For the past three years, our Green Renter lecture series has drawn New Yorkers from all over the five boroughs to Solar 1 to learn about green issues that confront urban dwellers, including programs on recycling, local food, urban planning and the redevelopment of New York Harbor’s native oyster population, among many others. Now, even if you weren’t able to attend in person, you can see the presentation and hear the lectures online! The first available Green Renter is the Sheridan Swap, a plan for transforming the Sheridan Expressway into green space, presented by the South Bronx Watershed Alliance. You can check it out here, and we encourage you to come back often as we’ll be adding more Green Renters very soon.
The next Green Renter will be held Tuesday, January 15 at 7:00pm. The topic is “NYC Greener Gadgets Conference Preview”; come see the fantastic new green electronic products that will be shown at the conference being held in NYC on February 1, and get tips on how to recycle your old cell phone and iPod.
Posted in Education, New York City, Recycling, Renewables, Solar One | Permalink
The Dawn of Cost Competitive Solar?
Tuesday, December 18th, 2007
In recent years, the U.S. has fallen precipitously behind Germany and Japan in the global solar market. However, in a month that has given us absolutely nothing to feel proud about as Americans on the climate/energy front (e.g. shameful Bali Climate Summit obstructionism and a highly compromised, unvisionary energy bill that was virtually bought with the influence of big utilities and fossil fuel corporations), a private sector milestone delivers a little something to lift our spirits. Actually, it may be a big something.
This week, Nanosolar - a San Jose based company backed by $150 million from the founders of Google and other venture capitalists - announced that it will begin selling its breakthrough thin film solar panels at a cost that is about 1/4 of that of conventional solar panels, making it economically competitive with the country’s leading and dirtiest electricity fuel source, coal. Another company, First Solar (who we blogged about last week) is right with them.
While it’s premature to coronate Nanosolar’s novel innovation as the long awaited breakthrough that will lead to the rapid commercialization of solar electric technology (aka photovoltaics, or ‘PV’ as they are commonly known), it is difficult to overestimate the potential significance of this achievement. While the cost of PV has declined significantly over the past three decades, economics has remained the greatest limiting factor influencing its development. December 2007, just may mark an historic turning point in the way we generate and consume power.
Read the full NYT story here.
Posted in Energy, Photovoltaics, Renewables | Permalink
Thin Film Solar is Almost There
Friday, December 7th, 2007
The solar panels that most people are used to are made from computer-chip quality silicon wafers, and known as crystalline silicon. When the sun’s energy hits the semi-conductor, electrons get excited and a current is created. (in a nutshell) These have shown great promise, but are yet to be cost competitive with other sources of energy on a nationwide scale without subsidies. (But read why NYC is different)
Thin film solar combines the silicon with other materials to create a thinner and more flexible solar cell. Right now these cells are not as efficient as the crystalline silicon ones–they only recently cracked 10% efficiency–but they are much cheaper. A promising company, First Solar, manufactures thin-film cells that produce electricity for $1.19/watt (link) compared to a little over $3 for crystalline silicon. They do most of their business right now in Europe (that is where the market is), but are intent on expanding their US business and have their eye on beating coal on price (as does everyone). They recently purchased Turner Renewable Energy and have sold most of their production capacity through 2012. Look for them to be a major player in the coming years.
Posted in Energy, Photovoltaics, Renewables | Permalink
Decent (But Not Perfect) Energy Bill Has More Than A Fighting Chance
Monday, December 3rd, 2007
Despite fears that the 2007 Energy Bill now being hashed out in Congress could be stripped of key green provisions for the sake of expediency, House Speaker Nancy Pelosi has posted a short statement on her site that gives the impression that a deal has been reached with new CAFE standards, a Renewable Energy standard and a Renewable Electricity standard intact; according to David Roberts at Grist.org, the House also intends to extend the Production Tax Credit for solar and wind power (although not for the 10 years that many hoped for). Representative John Dingell (D-Michigan), the chairman of the House Energy and Commerce Committee, has dropped his opposition to the new CAFE standards, which will increase fuel efficiency standards for cars and light trucks to 35 mpg. The bill still contains some outrageous giveaways to the coal, oil and nuclear industries, but it’s a HUGE improvement over the last Congressional Energy Bill, which was forged in total secrecy by old-school industry insiders and the Vice President, and was more pork-laden than a Memphis barbeque.
Thanks to everyone who responded to our Energy Bill Call to Action! It seems that your efforts were not in vain.
Posted in Energy, Legislation, Politics, Renewables | Permalink
New NY wind farm on old steel mill
Friday, November 2nd, 2007
In a suburb of Buffalo eight massive 2.5MW wind turbines went up on the site of a closed Bethlehem Steel mill earlier this year. The turbines, some of the largest in existence, are manufactured by Clipper in Iowa.
It is a big deal for a few reasons. It is the first instance of wind turbines going up in a suburban location and on top of a post-industrial site in the US. It was also a great idea because roads and electricity infrastructure were already in existence. The local leadership, including the Mayor Norman Polanski, of Lackawanna, are very supportive and hope that these will bring people into the community, both to marvel at their magnitude, and also to usher in the new industrial revolution.
Read more about it here and here.
Posted in Energy, Renewables | Permalink
