Two missions on climate change ready for implementation, says Shyam Saran

Two of the eight missions in the National Action Plan on Climate Change were ready for implementation through the cabinet-level decisions regulatory mechanisms and even through legislation if necessary, said Shyam Saran, the special envoy of the Prime Minister on climate change, here on Friday.

The National Solar Mission and the National Mission for Enhanced Energy have already been through by discussions and evaluation by the Prime Minister’s Council on Climate change, Mr. Saran said at the Environment and Energy Conclave 2009 hosted by the Bengal Chamber of Commerce and Industry.

“The Prime Minister has said that the National Solar Mission will be in operation by November 14,” Mr. Saran said.

Experts were considering the possibility of producing solar power with a threshold capacity of 20,000 MW, which could result in grid parity by 2020 and parity in pricing with coal-generated power in 2030, he said.

Grid parity was the point at which electricity from renewable sources is equal to or cheaper than grid power. Reiterating India’s stand that no legally binding restrictions on emissions would be acceptable, Mr. Saran also outlined the expectations of India and other developing countries from the United Nations climate conference in Copenhagen (COP15) in December this year.

“We are not negotiating a new Climate Change treaty at Copenhagen,” said Mr. Saran, adding that the measures deliberated at previous international summits had not been implemented by developed countries.

“Under the National Action Plan India has a certain vision, but if developing countries have to take mitigation actions beyond their resources, they must be aided by developed countries with technology transfers and financial resources,” he said.

On the question of climate change, the impact of accumulated emissions must be considered, which was the position of all developing nations and stated in the UNFCC (United Nations Framework Convention on Climate Change), he said.

“The Prime Minister has already made a commitment that at no point in time will India’s per capita emission be higher than those of the developed countries,” he said.

Source: The Hindu

Solar power system to be installed at railway stations

To find alternative sources of energy, everybody is on the lookout for better options. As such, solar power equipments are picking up fast as apart from several government departments, private institutions are also coming forward for the same.

Joining the list of new entrants are the railway authorities, who have also started installing solar equipments in railway running rooms, hospitals and even at crossings, where solar lamps were being used. This has helped them to get rid of kerosene lamps which were being earlier used.

According to information, the authorities have installed solar geysers in railway running rooms at Amritsar and Jalandhar, whereas the running room at the city station is presently under construction where solar geysers would be installed.

Sources in the railway department revealed that authorities are also planning to install solar lights by replacing the existing streetlights at the station and in railway colonies.

Earlier, it was the duty of the gatekeeper at the railway crossings to light the kerosene lamps, but now the authorities have installed solar lamps which will get charged during the day and provide light during the night hours.

While talking to the TOI, divisional railway manager Satish Chander said, "We had started installing solar geysers on an experimental basis but now we are getting a positive response and have decided to expand it at other places."

He said they would now install solar lights at railway crossings and city railway station, while the running room for guards and drivers was under construction where they would also install solar geysers like it had been done at Amritsar, Jalandhar and Ferozepur.

Discussing the issue, Rajinder Singh joint director Punjab Energy Development Agency (PEDA) said, "The demand for solar equipments has increased manifold. We have forwarded a demand to the Centre for 500-kilowatt power plants which are being demanded by various private institutions across the state."

Source: Times of India

JSW forays into solar power, to launch its IPO soon

JSW Energy Limited, a part of JSW group, is soon coming out with its Initial Public Offer to raise Rs.3000 for its under construction 3000MW power projects. With this JSW Energy is targeting to be a leading power generator by 2015 with 11,400MW generation capacity.

JSW Energy is distributing its business and investments into renewables such as Solar Energy. As per the draft offer document, JSW Energy has been allotted a 5 MW Solar Power Plant based on photo voltaic technology by the Government of Gujarat. Apart from this it is also proposing solar power plant in Rajasthan with a capacity of 5-10MW. It is also exploring different technology options and suppliers.

As per the Gujarat policy 2009 a slew of incentives are available to prospective developers who want to set up solar projects in state. The Gujarat government has set a tariff of Rs 13 per KWhr for 1st twelve years,to know details about tariff of various states click here (for Gujarat Policy)

The company has installed 560 MW capacity power project in Karnataka and is implementing a 1,200 MW coal-based power project in Maharashtra and a 1,080 MW pit head lignite project in Rajasthan. The company also has one Hydro electric project of 240 MW under implementation in Himachal Pradesh.

JSW is planning to develop a 3,200 (4x800) Mw coal based power plant at Ratnagiri in Maharashtra near the upcoming 1,200 Mw and the second phase of the 2x135 MW power plant at Barmer in Rajasthan. Other projects are a 1,320 Mw coal-based thermal plant at Chhattisgarh, a 1,600 Mw domestic coal-based power plant in West Bengal and a 1,620 Mw coal-based thermal plant at Jharkhand.

Source:Solarindiaonline

Baoding Tianwei Starts Mass Production of Thin Film Solar Panels with Oerlikon Solar Technology

One of the largest Thin Film Solar Fabs in Mainland China Ramps up in Record Time
Trubbach, Switzerland/Baoding, China, August 18th, 2009, — As China boosts solar
energy to meet growing power demand and reduce dependence on imported fuels,
Tianwei and Oerlikon Solar announced the completion of one of the mainland China’s
largest thin film solar panel factories. The facility was completed ahead of schedule.
This first phase of the Tianwei project produces 500,000 modules per year, which
generates a total of 46 megawatts of power.
Oerlikon Solar leads the thin film solar equipment sector with ten factories in production
and the fastest time to market. Thin film solar offers a cost-advantage over traditional
crystalline silicon, and is making strong efficiency gains. Tianwei is using Oerlikon
Solar’s Amorph High Performance PV technology for Phase 1.
“Oerlikon Solar surpassed its promised completion time and efficiency,” said Mr.Ma
Wenxue, General Manager of Baoding Tianwei Solarfilms Co.,Ltd. “Watching this state
of-the-art fab go from an empty room to full production in six months was stunning.”
Reaching production quickly is essential to allow Tianwei to address the rapidly growing
Chinese solar market. Under the “Golden Sun” program announced on July 21, China's
Ministry of Finance will subsidize half of the construction costs for on-grid solar power
plants. The ministry of finance will also pay for up to 70 percent of off-grid installations
and cover transmission costs where necessary. In response, analysts have predicted
that China could develop more than 500 megawatts of solar power within three years.
Just 50 megawatts of solar power were installed in 2008.
“Oerlikon Solar has designed, tested and perfected its methodology for bringing new
factories and equipment online on time and on budget,” said Jeannine Sargent, CEO of
Oerlikon Solar. “This is key in being the leader on the path to grid parity and placing
clean renewable solar power on equal footing with traditional fossil fuel sources.

Oerlikon Solar has the first thin film silicon technology to have IEC certification from TÜV
Rheinland for Amorph Basic, Amorph High Performance and Micromorph®. Certification
compresses the time to production by reducing administration efforts and guaranteeing
durability and performance. With more challenging credit markets, certification also
makes Oerlikon Solar’s customers projects more predictable and bankable. TÜV
certification for the Tianwei line is expected in September 2009.
About Baoding Tianwei SolarFilms Co. Ltd.
Tianwei is an international high-tech company with more than 50 years experience in the
energy industry and is the leading company in the power transmission industry and the
world’s biggest transformer supplier in output as the only state-owned enterprise in
China with a vertical industrial chain in PV industry. Its affiliate Tianwei SolarFilms Co
and specializes in designing, manufacturing, selling and installing thin film solar modules
and related accessories. Located in the National Renewable Energy & Equipment
Industry Base, with its well-recognized R&D teams and facilities Baoding Tianwei
SolarFilms Co., Ltd. invested about RMB 1.2 billion for Phase 1 and a capacity of round
50 megawatts.
About Oerlikon Solar
Oerlikon Solar offers field proven equipment and end-to-end manufacturing lines for the
mass production of thin film silicon solar modules. Engineered to reduce device cost and
maximize productivity, its end-to-end solutions are fully automated, high yield, high
uptime, and low maintenance.
The production lines are complete systems, yet modular and upgradeable in both
throughput and process technology. As a global leader in thin film PV technology, the
company provides its customers with extensive experience in both amorphous and high-
efficiency Micromorph® tandem technology.

Source: Oerlikon Solar

Ban on scrap polysilicon to boost China solar sector

A Chinese ban on imports of a waste material used for solar wafers may be bad news for foreign competitors but it is a big boost to China's solar sector.
Scrap polysilicon, which can be reused to make solar wafers, is low-grade silicon that fails to meet the grade for chips found in most electronics.
Beginning this month, China stopped accepting scrap polysilicon to comply with environmental regulations.
The ban threatens the income of Chinese scrap polysilicon traders and limits the market for companies that sell to them, such as top contract chipmaker TSMC. It is particularly harsh for small and new domestic solar players who rely on the cheap material to make wafers and panels.
For China's polysilicon companies, including GCL-Poly Energy Holdings and LDK Solar, the ban is an opportunity to expand business. For foreign rivals South Korean OCI Co Ltd, MEMC Electronic Materials Inc or Japan's Tokuyama Corp the ban is a potential threat.
China produces over 60 percent of the world's solar panels, and is among the heaviest users of pure polysilicon and the scrap variety. Scrap polysilicon accounts for up to 30 percent of silicon fed into some of the solar wafers and panels in China.
"In a way, the ruling was designed to protect (China's) very young polysilicon industry," said KK Chan, chief executive of private equity firm Nature Elements Capital. "The sector needs all the help it can get given a supply glut of the material."
The ban comes at a time when Chinese polysilicon companies are ramping up production, despite an oversupply of the key solar component.
GCL-Poly, which acquired $3.4 billion worth of solar assets in June, is on track to produce about 3,000 tons of polysilicon by year end. LDK Solar aims to produce 5,000 tons by 2010.
Yingli Green Energy Holding Co, ReneSola and Tongwei Co should benefit.
After the credit crunch dried up funding for solar projects, the sector was hit by a massive oversupply of polysilicon. Prices fell to $69 per kilogram from its peak of $400 in 2008.
ENVIRONMENTAL FACTOR
China's Environmental Protection Ministry said it imposed the ban because the heavy chemicals that come in contact with scrap polysilicon when reused to make solar wafers and panels produce waste that could harm the environment.
The ministry said in a notice posted on its website last month that the regulation was imposed in line with China's solid waste pollution laws.
A ministry spokesman declined to comment.
"This is positive for China's polysilicon sector, and the environment," said GCL-Poly president Hunter Jiang.
The new rule is slowly having a positive impact for local makers of the solar component. Spot prices of polysilicon in China rose to $72 per kg in August from $67 in July weeks after the rule was enforced, said New Energy Finance analyst Julia Wu.
"The segment most likely affected by the policy are local panel and wafer makers, especially the smaller ones," Wu said.
Established Chinese solar wafer companies are least affected.
"It should not have an impact, given there is sufficient supply of polysilicon in the market," said Renesola chief financial officer Charles Bai.

Source: Reuters

Deepak Lal: Spiking the road to Copenhagen

The Western obsession with curbing carbon emissions is wicked and also economically foolish, says Deepak Lal
Three cheers for Jairam Ramesh! India at last has an environment minister who is willing and able to denounce the hypocrisy and immorality of the West in twisting the arms of India and China to curb their carbon emissions. He is right to make it clear that India has no intention of signing the new ‘climate change’ treaty in Copenhagen in December, which would put curbs on the carbon emissions of the Third World. If they do not comply they are being threatened by the draft bill going through the US Congress to levy carbon tariffs on their exports.
As this column has argued many times, this is a blatant attempt to prevent these countries from industrialising and achieving the standards of living of the West. For, until technological advances can allow alternative ‘green’ energy sources to compete with the fossil fuels, whose use is gradually eliminating poverty in the Third World as in the West’s own ascent from poverty, a call to put any curbs on carbon emissions is in fact to condemn their billions to continuing poverty. Whilst numerous Western economists and do-gooders shed crocodile tears about the Third World’s poor, they are willing at the same time to prevent them from taking the only feasible current route out from this abject state. Nothing is more hypocritical and immoral than rich Westerners driving their gas-guzzling SUVs emoting about the threat to Spaceship Earth from the millions of Indians who want to drive Nanos. Whilst the salving of their consciences by buying carbon offsets (as Al Gore claims to do every time he jets around the world) is akin to the Papal indulgences sold by the Catholic Church, which allowed its richer adherents to assuage their guilt and ‘fornicate on clean sheets’. For Gore to have the lights on his mansion blazing throughout the night, and seek to restrict the emissions from Indian power stations, when most Indians don’t even have an electric light bulb, is deeply wicked.
A study of the costs to the Indian poor of curbing carbon emissions has estimated that, over a 30-year time horizon, with a 10 per cent annual emission restriction the number of poor increases by 21 per cent, even in the short run, and by nearly 50 per cent for a 30 per cent annual emission reduction (Murthy, Panda, Parikh: ‘CO2 emission reduction strategies and economic development of India’, Margin, 2007). Those development economists and sundry celebrities, who on the one hand, want to see the end of world poverty and on the other, to curb Third World carbon emissions, should be ashamed of themselves for advocating the latter path which will make the former goal impossible to achieve.
This is particularly heinous as the claim by the IPCC that, it is scientifically proven, CO2 emissions are the cause of global warming, is increasingly being questioned by climatologists. Particularly, as since 1997, both the terrestrial and more accurate satellite temperature readings (which are not contaminated by the ‘heat island’ urbanisation effect) show global cooling, even though there has been a large increase in CO2 emissions. This is also the period in which the sunspot activity in the Sun has ceased. My earlier column on climate change (June 2007) had outlined the rival theory for climate change developed by the Danish physicist and climatologist, Henrik Svensmark — cosmo-climatology. In a remarkable March 2009 internal study on climate science suppressed by the US Environmental Protection Agency (EPA), but put into the public domain by the Competitive Enterprise Institute (see www.cei.org) the whole scientific basis of the current CO2 theory of climate change is put into question. It emphasises that “global temperatures have declined — extending the current downward trend to 11 years with a particularly rapid decline in 2007-8. At the same time atmospheric CO2 levels have continued to increase and CO2 emissions have accelerated”(p. iii). This means that “the IPCC projections for large increases [in global temperature] are looking increasingly doubtful” (p.3). On the IPCC’s rejection of the alternative explanation of solar variability as the cause of climate change, it states: “There appears to be a strong association between solar sunspots/irradiance and global temperature fluctuations”. “A new paper by Scafetta and Wilson (Geophysical Research Letters, 3 March 2009) suggests the IPCC used faulty solar data in dismissing the direct effect of solar variability on global temperatures. Their research suggests that solar variability [rather than green house gasses] could account for up to 68% of the increase in Earth’s global temperature.” (p.iv)
It then provides a table (p.58) from K Gregory (Climate Change Science 2009) which summarises the evidence for CO2 and the Sun/Cosmic Ray Warming hypotheses for climate change. This table, reproduced here, shows that, on a number of predictions involving observable evidence on the two hypotheses, the sun/cosmic ray explanation for climate change wins hands down. Moreover, as on this hypothesis it is the sunspot activity which controls the climate, as the sun seems to have gone to sleep over the last 12 years there is a growing likelihood “that sunspots may vanish by 2015. Given the strong association between sunspots and global temperatures, this suggests the possibility that we may be entering a period of global cooling” (p.60). Perhaps another ice age.
This new and growing scientific evidence that human CO2 emissions have little to do with climate change makes the current Western political obsession to curb carbon emissions at a vast economic cost extremely foolish. For India it would mean not only reversing the current trends in poverty alleviation, but a vast increase in the numbers of the poor who would otherwise be pulled out of poverty. India should have nothing to do with Copenhagen. If this means there is no climate change treaty, it might also save the West from its current path to committing economic hara-kiri.

Source: Business Standard

CEO ROUND TABLE AT 3rd RE India EXPO 2009

CEO roundtable on the theme “Financing renewable energy projects, current experience, challenges and roadmap for the future” was organized as part of the 3rd Renewable Energy India Expo 2009. The roundtable saw participation from senior leaders from the industry and was moderated by Mr Kuljeet Singh, Partner, Ernst & Young.

Mr. Singh set the tone of the discussion by highlighting the key drivers and challenges faced by different segments of the renewable energy space viz wind, solar, etc. As per him, the key drivers for solar industry are favorable geographical location of India and government initiatives taken in the recent years. But the industry faces certain challenges such as high capital costs, slow commercialization of technology, high dependence on imported raw material and requirement of large tracts of land.

The first point of discussion, as is the question always with the industry, was the limited usage of solar energy. Though the use of renewable energy in India has increased significantly in the past, grid connected power has been dominated by wind. Solar energy has not been used there. As an answer to this Mr Arun Seth, ACME said, “We need certainty for this to happen – certainty in the revenue stream.” As per him him there is access to people and technology, but financing is not available. Solar sector needs to be provided priority sector lending and that too for long term so that it would bring certainty in the revenue stream, which investors are looking for. Mr. K. Subramanya, CEO, TataBP Solar added, “16% return is guaranteed to the convention energy power producers, so why cant it be done for solar as well.” As per Mr. Rabindra Satpathy, President, Reliance Industries, something on lines of infrastructure bonds for this sector could be a good option to get low cost long term finance.

Thus lack of appropriate financing structure was felt as the main issue in attracting investment in the sector. As per Mr Craig O’Connor, Director Exim Bank, though state schemes for generation based incentives are bankable, depending on the state, it is better to have long term PPAs. This will allow the project to get lower interest rate. A time frame of 20-25 years for the PPA is what he sees is required.

The other often asked question for this sector is the time to achieve grid parity. To this Mr. Singh also added that participants should also mention the technology that they think will help in this.
As per Dr. Rajeewa Arya, CEO, Moserbaer PV, “Solar is application based and each technology is suitable as per conditions. So the premise of one winner is wrong.” As regards grid parity, he sees the costs reducing throughout the value chain by about 2020. As per Mr. Hari Surapaneni, President and CEO, Solar Semiconductor, grid parity has already been achieved at peak power rate and a price of 10-12 cents may be seen by 2011. The same view is reiterated by Mr. Seth, as per whom, we would achieve parity within 2-3 years if subsidy from conventional energy is removed at various points.

The participants in the roundtable were:

Anchor: Mr Kuljeet Singh, Partner, Ernst & Young.
Particpants:
• Mr K. Subramnaya, CEO, Tata BP Solar Idnia Ltd.
• Mr. Rabindra Satpathy, President, Reliance Industries
• Dr. Rajeewa Arya, CEO, Moserbaer PV Limited.
• Mr. Arun Seth, ACME TelePower Ltd.
• Mr. Mark Ginsberg, Sr Executive Board Member, US Department of Energy USA – Energy Efficiency
• Mr Craig O’Connor, Director, Exim Bank
• Mr. Hari Surapaneni, Presidnet and CEO, Solar Semiconductor
• Mr. Sarvesh Kumar, Deputy Managing Dircetor, RRB
• Mr. Harish Mehta, Director, Suzlon Energy Ltd
• Mr. Rajindra Valsalan, Managing Director, WinWinD Power Energy P Ltd
• Mr. Pranav Nahar, Managing Director, Evolutions Markets India.

Conergy, Solarworld Seek Protection From Chinese Price Dumping

German solar companies Conergy AG and Solarworld AG want their government and the European Union to discourage renewable energy investors from buying Chinese panels and cells they say receive improper support.
Chinese prices “border on dumping” and those levels are impossible to maintain without state aid, Dieter Ammer, chief executive officer of Conergy, was cited as saying in Handelsblatt today. Alexander Leinhos, a company spokesman, confirmed the comments. The EU should implement import tariffs to protect its solar industry, Ammer added.
Prices and demand for solar products have dropped this year as recession-struck photovoltaic power plant builders struggle to fund projects and a colder European winter caused residential clients to shy away from installing panels on their roofs. Solar module and cell makers will have to boost output in low-cost regions to be competitive in the future, Goldman Sachs Group Inc. analysts wrote this week in a note.
“They’re playing with fire, it could have big consequences for the industry,” said Karsten von Blumenthal, an analyst with SES Research GmbH in Hamburg. “The Chinese are helping to make solar power competitive by making equipment cheaper.”
Germany’s BGA exporters group said in June that rules obliging Chinese and U.S. manufacturers to give preference to local products and services are “poison” for the recovery of the world economy.
‘Raise Concern’
China’s solar industry subsidies “raise concern,” given the scarcity of foreign companies selected as suppliers for projects, von Blumenthal said. The measures Ammer and Solarworld CEO Frank Asbeck suggest may help non-Chinese companies profit from that program, he said by phone today.
The Chinese Ministry of Finance said last month that it will “in principle” provide subsidies amounting to 50 percent of the total investment in solar power projects. That contrasts with Germany, where the government pays generators fixed sums for the electricity they feed into the nation’s grid.
Solarworld’s CEO says his Chinese rivals could hold out selling at a loss for another two to three years, thanks to interest free credit from the country’s government and lenders.
Asbeck is in favor of Germany only subsidizing power from panels where more than 50 percent of the manufacturing process took place in the EU. That would mean solar cells could be made in Asian countries and assembled in Europe, he said by phone from Bonn.
Falling Sales
Solarworld’s sales fell 6 percent to 401.6 million euros ($575 million) in the first half, while the industry’s prices slumped about 25 percent, the company said in July.
Germany, as the world’s biggest exporter, has suffered as the global financial crisis damped demand for German goods, forcing manufacturers to curb production and cut jobs. Q-Cells SE, the country’s largest solar company, said Aug. 13 that it will shut down production lines in its hometown of Thalheim, resulting in the loss of about 500 jobs.
Von Blumenthal at SES Research recommends investors sell Q- Cells and Conergy stock and buy shares in Solarworld, the third- largest German solar company.

Source: Bloomberg.com

Trina Solar: First Solar Won’t Be Low-Cost Leader for Long

For Trina Solar (TSL), it won't be long before its solar panel manufacturing costs will fall enough to become comparable to the industry low-cost leader, First Solar (FSLR).
"Next year, our cost reduction roadmap will allow us to compete with First Solar in the balance of system level, so that module wise we will compete with them some time next year," said Terry Wang, Trina's chief financial officer, in a conference call to discuss the company's earnings late Monday.
Wang's comment came as the company returned to profit in the second quarter. Trina posted a net income of $18.9 million, or 71 cents per American depositary share, on $150 million in revenue. The Chinese company posted a loss of $10.6 million, or 42 cents per share, on a revenue of $132.1 million for the first quarter; and a net income of $17.1 million, or 68 cents per share, on a revenue of $204.2 million for the second quarter of 2008.
Trina posted much better quarterly financial figures than other Chinese solar companies over the past week. JA Solar (JASO) and ReneSola (SOL) delivered mixed results while LDK Solar (LDK) performed poorly.
Trina makes solar panels using its own silicon cells. Silicon solar panels dominate the market today. Tempe, Ariz.-based First Solar makes cadmium-telluride panels and has grown quickly to become one of the top 10 (and only non-silicon) panel makers in the world.
First Solar has long prided itself on being able to keep its manufacturing costs low. The company lowered its production costs to $0.87 per watt in the second quarter from $0.93 per watt in the first quarter of this year. It expects to reach $0.65 to $0.70 per watt by 2012.
Its silicon competitors, in general, aren't able to compete on the pricing alone. Silicon panels are able to convert more of the sunlight that strikes them into electricity than cadmium-telluride panels. As a result, silicon panels are more suitable for rooftop installations, where space is a constraint.
First Solar has enjoyed a cost advantage partly because the price of silicon has historically been high. But silicon pricing has dropped significantly, as much as 50 percent for long-term contracts, over the past year.The financial market crisis has made it difficult for developers to line up financing for solar power projects. Spain, which added a few gigawatts of solar in 2008 alone, now has a 500-megawatt cap for 2009. All these forces have led to an oversupply of silicon panels.
To fend off the silicon competitors, particularly those from China, First Solar plans to give out rebates to customers who do business in Germany, its largest market. The customers would get the rebates after an installation is complete.

Source:Seekingalpha.com

Solar panel prices to slide into next year

A steep fall in the price of solar panels has chipped away at manufacturers' profits this year, and relief is unlikely to come soon, as many in the industry believe pressure will intensify and push prices even lower into 2010 and perhaps even 2011.
Global demand for solar power soared last year until a pullback in solar incentives in Spain and a credit crisis that stifled financing for new projects led to a falloff in demand for solar panels and a global supply glut.
In turn, solar companies worldwide -- including heavyweights like China's Suntech Power Holdings Co Ltd, U.S.-based First Solar Inc and Germany's Q-Cells AG -- have been forced to cut the price of their panels, hampering and in some cases erasing profits.
"I suspect it's not the bottom," said Jenny Chase of London-based industry research firm New Energy Finance. Chase said panel prices are still falling because it takes time for the decline to work its way through the supply chain, and costs of the industry's primary raw material, silicon, are still high despite having dropped sharply since last year.
Fears of a prolonged decline in panel prices have weighed heavily on solar stocks this month, and Jefferies & Co cited the continued slide on Friday when it cut its ratings on First Solar, SunPower Corp Suntech Power Holdings Co Ltd and Energy Conversion Devices Inc. [nBNG540560]
After peaking at $4.20 a watt in 2008, prices for solar panels have dived as much as 50 percent to about $2.40 a watt for European and U.S. companies that make silicon-based panels and $2.00 a watt for Chinese suppliers, Chase said. Prices on lower-cost thin film panels are between $1.00 and $2.00 a watt.
The bottom-out price "could be as low as $1.50 for crystalline silicon, which would be a shockingly low price," Chase said.
Lower prices are good news for solar customers as the cost of the renewable energy source reaches toward that of power created from dirtier sources such as natural gas and coal. Still, the drastic pace of the tumble has sent many companies scrambling.
"It does you no good to get the prices down there and close to grid parity if you're losing money on every one," said Kevin Landis, chief investment officer of Silicon Valley-based Firsthand Funds and manager of the $5.4 million Firsthand Alternative Energy Fund.
The better reason for a decline in the price of solar power is when companies can cut manufacturing costs, Landis said, adding that as an investor, he favors those with a technological advantage. He pointed specifically to SunPower, whose solar cells are the most efficient in the industry at converting sunlight into electricity.
SHARE VS PROFITS
But with the market for solar panels still in a massive state of oversupply, Barclays Capital analyst Vishal Shah expects prices to fall to $1.40 a watt by the end of 2010 and $1.00 per watt in 2011. That would require companies to drive large volumes to make up for very low margins.
"There will be a trade off between market share and profitability," said Shah, who last week downgraded the sector to "neutral" from "positive."
Driving that move are two companies: U.S.-based First Solar, which makes its panels from cheaper cadmium telluride instead of more costly silicon, and China's Yingli Green Energy Holding Co Ltd, which has cut prices aggressively.
Yingli Chief Executive Miao Liansheng earlier this week credited the company's pricing strategy as a "driving force" behind a rise in shipments and net revenue. At the same time, the company cut its profit margin forecast and predicted panel prices would fall further this year.
In addition, First Solar said last month that it would offer a rebate program in Germany to preserve its position in that market, a move that sent its shares into a tailspin.
That strategy -- expanding market share but weakening profit margins -- forces rivals to accept lower prices as well.
"This is a commodity product and a commodity industry," Shah said, adding: "The third company doesn't have a choice but to fight the market share battle."
Eventually the tumble in prices will moderate, depending on what happens with the industry's supply and demand and how governments' solar subsidy plans shake out, Shah said.
One way to put on the brakes would be for commercial financing to return to normal and reinvigorate demand, said J.P. Morgan analyst Christopher Blansett.
"If we have a painful commercial lending market all through next year, then we're probably going to see some pretty poor pricing trends all through next year," Blansett said.
Bankruptcies, which would take some supply out of the market, would be another way to stop the fall in prices, said New Energy Finance's Chase.
Yet as companies across the industry -- including China's Trina Solar Ltd, Norway's Renewable Energy Corp, U.S.-based SunPower and others -- have raised money through stock offerings to keep their businesses growing, the end of the glut of solar panels and the trough in prices get pushed back, she said.

Source: Reuters

ET Solar Group Supplies 1MW Solar Modules to a Large Ground Mounted Solar Plant in India

ET Solar Group Corp. ("ET Solar"), a Nanjing-based integrated manufacturer of photovoltaic (“PV”) products (ingot, wafer, modules and tracking systems) and system integrator announced a 1MW high efficiency module supply transaction to a large system integrator for an Indian project.
The project, developed by a commercial and utility solar project developer in India, is so far one of the largest on-grid solar farms in the Indian subcontinent. Shipment was completed in July and more sizeable volumes are being planned for.

According to Indian government’s 11th five-year plan, the nation is targeting at a 20% of electricity generation from renewable energies by 2020 where at least 10GW will be achieved through solar power generation, including PV and solar thermal sources. Punjab is the first state in India that was allocated with megawatt scale projects.

Commenting on the news, Dennis She, Vice President and Global Sales Officer of ET Solar, said: “India has a very ambitious plan for the development of renewable energy, especially solar energy. We see a great growth potential in this burgeoning market thanks to the government’s strong resolution to be a world leader to fight global warming and the very attractive radiation conditions in the geography. We are very pleased to play a very contributive role on the country’s way to becoming one of the largest clean energy users in the world.”
ET Solar Group is a vertically integrated solar energy equipment manufacturer and turnkey solutions provider. Its manufacturing chain includes crystalline silicon ingot and wafer. It provides production and design of High Quality of Photovoltaic Modules and world class solar tracking systems with smart turnkey solutions.

ET Solar has also announced 4.2MW high efficiency Module supply to large Italian Commercial Projects earlier in this month.

Source: ET Solar

Oerlikon Solar and Rusnano/Renova Joint Venture open up Russian market for leading thin film solar PV technology

Oerlikon Solar today announced that Nano Solar Technology Ltd. (NST), a newly formed Russian high-tech firm, has ordered a 120 MW end-to-end Micromorph® line for production of thin film solar modules. NST is a Joint Venture between Renova Group and the Russian Corporation of Nanotechnologies (Rusnano). With the envisaged production capacity of one million solar modules annually, this is the largest equipment order in the worldwide thin film silicon photovoltaic (PV) market in 2009 to-date.

The order includes Oerlikon Solar's Micromorph® technology which raises module efficiency by up to 50 percent over prior generation technologies. The equipment will be delivered in 2010 to the new site currently under construction in Novocheboksarsk (Chuvash Republic). The start of production is scheduled for 2011. The order also encompasses a comprehensive multi-year service agreement, provided by Oerlikon Solar's global customer support team.

Establishing production of thin film solar modules in the Chuvash Republic is part of Rusnano's strategy to develop the high tech economy in Russia by co-investing in nanotechnology industry projects. Through acting as a catalyst for private co-investments, Rusnano aims at creating conditions favourable to developing cutting edge nanotechnology in Russia, the joint venture with Renova being a good example. "Oerlikon Solar emerged from a thorough evaluation process to identify the best technology partner for our project, because of its leading technology" said Yaroslav Kuznetsov, CEO of NST. "This is a win-win situation for all parties involved. Oerlikon Solar can establish a strong presence in the Russian market and the Russian economy has made another step as a state-of-the-art production site", continued Yaroslav Kuznetsov. In addition to the planned production line from Oerlikon, Rusnano plans to set up a major research center that will focus on increasing the effectiveness of the solar modules in cooperation with the Ioffe Physical Technical Institute of the Russian Academy of Sciences.

The Joint Venture of Rusnano and Renova will be the latest Micromorph® end-to-end line customer for Oerlikon Solar to take advantage of the company's proven high-performance low cost PV module production solution. It will deliver Micromorph® PV modules to serve the growing market for solar PV applications. The company will address PV markets such as Spain, Italy, Greece and Germany.

Oerlikon Solar's leading edge production solutions are having a major impact on the market as more and more companies launch their production. "Russia and the Commonwealth of Independent States offer great market potential for Oerlikon in the medium and long-term", said Oerlikon CEO Dr. Uwe Krueger. Already today, the Oerlikon Segments Coating, Vacuum, Textile and Drive Systems are conducting business in Russia. With the substantial order from NST, Oerlikon Solar established itself in this important economic zone as well. "The contract confirms our leading edge technology and our unique ability to quickly implement and scale up commercially successful mass production of thin film solar modules. The 120 MW Micromorph® end-to-end production line will position NST as a key player among thin film PV manufacturers", continued Dr. Uwe Krueger, CEO of OC Oerlikon. Oerlikon Solar is committed to the highest quality of customer support and is taking great measures to ensure that resources and delivery capabilities grow to meet the needs of future expansion in the solar industry.

Oerlikon Solar's technology gaining momentum

In addition to expansion into new markets, several existing Oerlikon Solar customers have recently announced new off-take agreements to deliver PV panels manufactured on Oerlikon Solar's end-to-end lines. HelioSphera (Greece) announced the signing of a long term supply agreement with Techno Spot, a major Italian distributor of photovoltaic modules and components. Under this agreement, HelioSphera will supply a minimum of 9 MW of Micromorph® thin film modules between 2009 and 2010. German based Sinosol AG has announced agreements with two Taiwanese Oerlikon Solar customers for a total of 68 MW.

"We clearly see improving market conditions for the solar PV industry at mid-year showing a mid- to long-term growth trend in demand for overall renewable energy and especially for solar PV applications", stated Oerlikon CEO Uwe Krueger.

According to a recently published study by New Energy Finance, new investments in clean energy worldwide rallied in the second quarter of 2009, reaching USD 24.3bn, almost double the amount invested worldwide during Q1 2009. According to New Energy Finance, this improving trend in Q2 was led by investments in asset finance for large solar and wind energy projects.

Source:Oerlikon Solar

Tiny battery traps solar power to run a house for 24 hrs

A small disc could be the solution for the efficient and cheap storage of the sun’s
energy.

A Utah-based company has found a new way to store solar energy – in a small ceramic disk which can store more power for less. Researchers at Ceramatec have created the disk, which can hold up to 20-kilowatt hours, enough to power an entire house for a large portion of the day.

The new battery runs on sodium-sulfur — a composition that typically operates at greater than 600°F. “Sodium-sulfur is more energetic than lead-acid, so if you can somehow get it to a lower temperature, it would be valuable for residential use”, Ralph Brodd, an independent energy conversion consultant, says.

Ceramatec’s new battery runs at less than 200°F. The secret is a thin ceramic membrane that is sandwiched between the sodium and sulfur. Only positive sodium ions can pass through, leaving electrons to create a useful electrical current.

Ceramatec says that batteries will be ready for market testing in 2011, and will sell for about $2000. The disk has not yet been manufactured for residential use, but the creators have spoken optimistically about the possibility.

The convergence of two key technologies — solar power and deep-storage batteries — has profound implications for oil-strapped the US.

“These batteries switch the whole dialogue to renewables,” said Daniel Nocera, professor of energy at the Massachusetts Institute of Technology who sits on Ceramatec’s advisory board. “They will turn us away from dumb technology, circa 1900 — a 110-year-old approach — and turn us forward.”

Source: Times Of India

Global Photovoltaic market to reach US$48b in 2014, says IntertechPira

The global photovoltaic (PV) market, after experiencing a slow period this year, is expected to double within the next five years, reaching US$48 billion. Wafer-based silicon will continue as the dominant technology, but amorphous thin-film and cadmium telluride (CdTe) technologies will gain ground, and are expected to account for a combined 22% of the market by 2014, according to a major new study by IntertechPira.

The Future of Global Photovoltaics Markets provides detailed five-year forecasts of the PV market by technology, application and geographic region. It also addresses financial incentives, such as subsidies, feed-in tariffs and purchase power agreements and their effect on the development of the PV industry.

This new study provides volume and value forecasts to 2014 for major PV technologies, such as crystalline silicon, amorphous thin-film, CdTe, and CIS/CIGS (copper indium diselenide/copper indium gallium diselenide). It also provides forecasts for PV in on-grid and off-grid (such as building-integrated) applications and identifies regional growth opportunities.

A key focus of the study is the market outlook for pivotal PV-adopting regions such as Spain, Germany, Italy, France, Japan, and the US and how the investment and regulatory climate in these regions is likely to affect overall industry growth and widespread acceptance of PV.

"The mid to long-term, prospects for the solar industry are positive," explains Publisher Adam Page "the subsidy models, which started in Japan and then Germany, have spread to increasing numbers of countries, and in many cases are starting to have significant impact on domestic market
take-up of PV."

The Future of Global Photovoltaics Markets is based on interviews with executives in a cross-section of companies that supply raw materials, cells and modules as well as those that provide system integration services. It is also based on extensive analyses of published literature and in-house
data built up from years of gathering information developed from conducting market research and technology studies as well as executive-level conferences for the PV industry.

The study provides in-depth quantitative data and analyses of the PV industry, including growth forecasts to 2014 broken down by technology, end-use application and region. This report is comprehensive in that it addresses silicon-based PV cells as well as emerging PV technologies and details the most significant market and technology drivers along the PV supply chain. The study is designed to help those in the photovoltaics business meet today's challenges and target key sectors.

The Future of Global Photovoltaics Markets is available from July 2009. For further information, please visit http://www.intertechpira.com.

Source: the research company’s site and Global Solar technology