Outlook: To get a solar industry with critical mass, restricting meaningful incentives to families who put a solar panel on their roof just isn't going to cut it
Tuesday, 3 May 2011
There is certainly no accusing the Government of inconsistency on energy policy. Having spent much of the previous year encouraging oil and gas companies to return to parts of the North Sea previously considered uneconomic – with hints there might be some financial incentives for doing so – the Chancellor slapped a whacking great tax rise on their production in last month's Budget. Similarly, after talking loudly and proudly about its desire to see the expansion of Britain's renewable energy sector, the Coalition is about to take an axe to its support for the most successful initiative in this area.
The consultation period over planned changes to the solar feed-in tariff system ends on Friday. But while Chris Huhne's Department of Energy and Climate Change has promised to listen to feedback on its proposals, the position of both sides of the debate has been very clear from day one.
Mr Huhne's argument is that the subsidies paid to individuals and companies that produce enough solar power to feed some of it back into the grid were aimed at households and the smallest of commercial concerns, rather than big business. It is thus proposing that the subsidy for installations producing 50kW to 150kW should be almost halved, from 32.9p/kWh to 19p. Installations producing more than 150kW will see even bigger cuts.
One sees his point. While ordinary folk putting the odd solar panel on the roof might need a bit of support to make their investment pay, ought large commercial enterprises not to be able to stand on their own two feet?
Still, the solar lobby's position is entrenched too. It is that the Government has reneged on a promise not to review feed-in tariffs before 2012 (and not to make any changes until 2013). Investments have been made on that basis which may no longer make financial sense given the subsidies now on offer.
There are two issues at stake here. The broader point is that when governments ask private sector energy companies to make long-term investments – in renewables or fossil fuels – on the understanding that the relevant tax regimes will be supportive for a time, if they go back on the commitment, they should not be surprised when people say they are not prepared to continue investing.
Second, if one wants to build a solar industry with critical mass in this country, restricting meaningful incentives to families who put a solar panel on their home's roof just isn't going to cut it. We need the larger commercial enterprises that Mr Huhne no longer seems prepared to support.
Last week, Total, the French company, made an £800m bet on the solar industry, buying 60 per cent of SunPower Corporation, the second-biggest solar panel manufacturer in America. It's not difficult to see why: at a moment when the climate change agenda is finally becoming all-important – and, post-Japan, amid fears that nuclear power may not, after all, be the answer – solar has never looked more attractive. Time to reconsider Mr Huhne.
Making a compelling case for equities
Fidelity Investments published a tongue-in-cheek note last week pointing out the similarities, economically speaking, between the royal wedding of the Duke and Duchess of Cambridge and the 1981 wedding of Prince William's parents. Just like today, Fidelity pointed out, Charles and Diana got married at a time of great economic upheaval, amid an outlook that did not offer promise.
Fidelity, which makes its money investing savers' money in stocks, said that despite the widescale pessimism, equities went on a long bull run after that wedding. Might it do so again, the fund manager wondered self-interestedly?
It does not always do to be cynical. For all the pessimism about the state of our economy, there are some compelling reasons to make the case for equities. Above all, the stock market remains good value, by historical standards, compared to other asset classes – like booming commodities, for example, or bonds. Over time, that suggests a catch-up to come – in the shorter term, it means generous yields.
Also, many companies are performing much more strongly than one might expect given the economic headlines. Away from the consumer-facing sectors, on which people understandably focus, earnings are improving fast. Moreover, many companies, having paid down debt in the wake of the credit crunch, are sitting on cash. This is one reason why the M&A cycle is back on an upswing.
Then, while western economies are not bouncing back from recession as strongly as they have in the past, they are almost all growing once again. In other words, whisper it quietly, but as the stock market in Britain reopens today, and most people return to work, Fidelity might just be on to something.
Interest rate reprieve won't last forever
A final thought for the return to work. The consensus is that the Bank of England's Monetary Policy Committee will not raise rates when its May meeting concludes on Thursday. But even if that view proves correct, do not be complacent: sooner or later, the Bank will begin tightening monetary policy.
Indeed, the UK is increasingly isolated in sticking with record low interest rates (though the US provides us with some cover). Russia, for example, is raising its rates this very day, while the eurozone has already had one increase in the cost of borrowing. Across Asia, emerging and emerged economies are much further down the track.
None of which is to say the Bank's policy is mistaken – far from it. Just that anyone with a mortgage should see this latest reprieve, assuming it proves to be so, as a further opportunity to position their finances for rate rises to come. The opportunity will not be extended forever.
Tuesday, 3 May 2011
Latest renewable tech exhibited in Italy and China
Relaxnews
Tuesday, 3 May 2011
Two major green technology events - Solarexpo in Italy and AsiaSolar in China - are taking place over the coming week. The events will host the latest renewable energy technologies ranging from solar panels to electric vehicles.
The first of these two exhibits, Solarexpo, takes place in Verona, Italy May 4-6. Now in its 12th year, the exhibition is expected to attract upwards of 69,000 professionals from throughout the renewable energy industry. The exhibition showcases a range of renewable energy technologies including biomass, hydro and of course solar power sources as well as alternatively fuelled vehicles and green project development services.
Highlights of this year's show include the first edition of E:Move, a special event dedicated to the latest innovative electric and hybrid vehicle designs.
For those unable to attend, Solarexpo can be followed online via Facebook (http://on.fb.me/ldZBIV ); Twitter (@Solarexpo); and YouTube (http://www.youtube.com/solarexpo ). More information can also be found via the official website at www.solarexpo.com
Shortly after Solarexpo begins AsiaSolar takes place on the other side of the world in China.
Now in its sixth year, AsiaSolar is an exhibition of solar technology geared towards industry professionals from around the world; this year the event is held May 5-7 in Shanghai.
AsiaSolar combines the latest consumer-relevant solar products, such as garden lighting, with industry-only relevant technologies such as solar cell manufacturing equipment. In 2010 the event attracted over 21,000 visitors from over 40 countries; these visitor numbers are expected to increase by around 30 percent this year.
AsiaSolar can be followed via the official website at: http://www.asiasolar.cc/en/. The website contains a TQ messenger service which either allows visitors to the site to chat directly with an AsiaSolar operative or, outside of working hours, visitors can leave a message stating their enquiry which will be answered at a later time.
Tuesday, 3 May 2011
Two major green technology events - Solarexpo in Italy and AsiaSolar in China - are taking place over the coming week. The events will host the latest renewable energy technologies ranging from solar panels to electric vehicles.
The first of these two exhibits, Solarexpo, takes place in Verona, Italy May 4-6. Now in its 12th year, the exhibition is expected to attract upwards of 69,000 professionals from throughout the renewable energy industry. The exhibition showcases a range of renewable energy technologies including biomass, hydro and of course solar power sources as well as alternatively fuelled vehicles and green project development services.
Highlights of this year's show include the first edition of E:Move, a special event dedicated to the latest innovative electric and hybrid vehicle designs.
For those unable to attend, Solarexpo can be followed online via Facebook (http://on.fb.me/ldZBIV ); Twitter (@Solarexpo); and YouTube (http://www.youtube.com/solarexpo ). More information can also be found via the official website at www.solarexpo.com
Shortly after Solarexpo begins AsiaSolar takes place on the other side of the world in China.
Now in its sixth year, AsiaSolar is an exhibition of solar technology geared towards industry professionals from around the world; this year the event is held May 5-7 in Shanghai.
AsiaSolar combines the latest consumer-relevant solar products, such as garden lighting, with industry-only relevant technologies such as solar cell manufacturing equipment. In 2010 the event attracted over 21,000 visitors from over 40 countries; these visitor numbers are expected to increase by around 30 percent this year.
AsiaSolar can be followed via the official website at: http://www.asiasolar.cc/en/. The website contains a TQ messenger service which either allows visitors to the site to chat directly with an AsiaSolar operative or, outside of working hours, visitors can leave a message stating their enquiry which will be answered at a later time.
UK marine energy sector 'could be worth £76bn and support 68,000 jobs'
Forecast by government thinktank the Carbon Trust comes weeks after ministers scrap £42m subsidy programme
Terry Macalister guardian.co.uk, Monday 2 May 2011 19.45 BST A government thinktank has predicted that the British marine energy sector could be worth £76bn to the economy and support 68,000 jobs by 2050.
The analysis, released this week by the Carbon Trust, comes only weeks after coalition ministers ended the industry's subsidy programme.
Britain could capture almost a quarter of the global wave and tidal power market if it builds on its existing lead, the trust forecast. The majority of the jobs would be a result of the growing export markets in countries such as Chile, Korea and the US as well as Atlantic-facing European states which benefit from powerful waves or tidal currents. The study, the most in-depth of its kind, found that total marine energy capacity could be 27.5 gigawatts in the UK by 2050, enough to supply more than a fifth of current electricity demand.
But the Carbon Trust says new wave and tidal technologies need to be accelerate at a time when the government's £42m marine renewable deployment fund has been eliminated and the most ambitious marine project – the 10-mile long Severn Barrage – has been given the thumbs down by the energy secretary, Chris Huhne.
However, some smaller schemes have been given the go-ahead, such as one in the Sound of Islay between Islay and Jura in western Scotland. Britain is still said to be home to about 35 of the world's 120-130 wave energy and tidal stream device developers. "Marine energy could be a major 'made in Britain' success," said Benj Sykes, director of innovations at the Carbon Trust. "By cementing our early mover advantage, the UK could develop a significant export market, generate thousands of jobs and meet our own demand for clean, home-grown electricity."
Sykes added: "To maintain our world-leading position, we must continue to drive innovation within the industry and turn our competitive advantage in constructing and operating marine technology into sustained green growth."
Innovative British companies such as Pelamis, Aquamarine Power and Marine Current Turbines are among those active in UK waters. Almost half of Europe's wave resources and more than a quarter of its tidal energy resources are to be found off the British coastline.
Terry Macalister guardian.co.uk, Monday 2 May 2011 19.45 BST A government thinktank has predicted that the British marine energy sector could be worth £76bn to the economy and support 68,000 jobs by 2050.
The analysis, released this week by the Carbon Trust, comes only weeks after coalition ministers ended the industry's subsidy programme.
Britain could capture almost a quarter of the global wave and tidal power market if it builds on its existing lead, the trust forecast. The majority of the jobs would be a result of the growing export markets in countries such as Chile, Korea and the US as well as Atlantic-facing European states which benefit from powerful waves or tidal currents. The study, the most in-depth of its kind, found that total marine energy capacity could be 27.5 gigawatts in the UK by 2050, enough to supply more than a fifth of current electricity demand.
But the Carbon Trust says new wave and tidal technologies need to be accelerate at a time when the government's £42m marine renewable deployment fund has been eliminated and the most ambitious marine project – the 10-mile long Severn Barrage – has been given the thumbs down by the energy secretary, Chris Huhne.
However, some smaller schemes have been given the go-ahead, such as one in the Sound of Islay between Islay and Jura in western Scotland. Britain is still said to be home to about 35 of the world's 120-130 wave energy and tidal stream device developers. "Marine energy could be a major 'made in Britain' success," said Benj Sykes, director of innovations at the Carbon Trust. "By cementing our early mover advantage, the UK could develop a significant export market, generate thousands of jobs and meet our own demand for clean, home-grown electricity."
Sykes added: "To maintain our world-leading position, we must continue to drive innovation within the industry and turn our competitive advantage in constructing and operating marine technology into sustained green growth."
Innovative British companies such as Pelamis, Aquamarine Power and Marine Current Turbines are among those active in UK waters. Almost half of Europe's wave resources and more than a quarter of its tidal energy resources are to be found off the British coastline.
Connie Hedegaard seeks renewable energy targets for 2030
EU climate chief opens discussion about extending the targets and expresses concern at gas industry's lobbying
Fiona Harvey, environment correspondent guardian.co.uk, Monday 2 May 2011 21.26 BST The EU's climate chief is seeking to extend the bloc's renewable energy targets, in a move apparently designed to protect the green energy sector from an intensifying attack by the gas industry.
This is the first time the European commission has raised the issue of mandatory targets beyond 2020, when the current commitment – to generate 20% of energy from renewable sources – expires.
An extension would boost the renewable energy industry in the face of lobbying efforts by the gas industry, which is trying to rebrand gas as a cheaper "green" alternative to renewables.
In its attempts to push this line, the gas industry has held a series of high-level meetings with senior figures in the European commission and the European parliament, as well as with the governments of member states.
Connie Hedegaard, the climate change commissioner in Brussels, is concerned at the lobbying, and is determined to maintain Europe's lead in developing renewable energy and clean technology. "We should be looking to avoid a lock-in to fossil fuels," she said. "We should be discussing a renewable energy target for 2030. We need to have ambitious targets. It would be one way to send a long-term price signal for renewable energy – that renewable energy is not just going to stop growing after 2020."
In an interview with the Guardian, Hedegaard declined to put a clear figure on what the renewable energy target should be beyond 2020. But others have suggested that it could be cost-effective to opt for a target of 40% by 2030.
The push to extend the target is likely to be resisted by some member states who fought hard against the 2020 targets when they were unveiled in early 2007. Poland is known to be concerned that its heavy reliance on coal should not attract penalties, and Italy has a history of opposing climate targets.An official in the department of Günther Oettinger, the EU commissioner for energy, said no targets were yet needed beyond 2020. He is also against raising the current emissions-cutting target from 20% by 2020 to 30%, as some member states – including the UK, France and Germany – have proposed.
A spokesman for José Manuel Barroso said the European commission president was following the arguments closely, but had no view on the matter of new targets.
In its "Roadmap to 2050", the commission estimated that the share of low-carbon technologies – comprising renewables, nuclear power, and carbon capture and storage – in the electricity mix would have to rise to 75% or 80% by 2030.
The gas industry's lobbying push has been inspired by the rapid expansion of shale gas, a controversial form of the fuel that is extracted from dense shale rock. Industry estimates suggest there may be enough of this and other so-called "unconventional" forms of gas, which are newly accessible because of advances in a technique known as hydraulic fracturing - "fracking" – to power the globe for two centuries.
Lobbyists have circulated a report by the European Gas Advocacy Forum, co-authored by the consultancy McKinsey, that appears to show Europe could meet its 2050 greenhouse gas targets and save €900bn by opting for gas rather than renewable energy generation.
However, the assertions of the gas industry are now in doubt. The EGAF report was adapted from a previous study that contradicts this claim, concluding that Europe should opt for more renewable power in order to meet its emissions targets and improve its energy security. The EGAF report has now been disowned by the original study's co-authors, the European Climate Foundation.
A separate study from Cornell University also found that, because of the difficulties involved in its production, using shale gas for electricity generation produces as much carbon dioxide as coal, if not more.
Fiona Harvey, environment correspondent guardian.co.uk, Monday 2 May 2011 21.26 BST The EU's climate chief is seeking to extend the bloc's renewable energy targets, in a move apparently designed to protect the green energy sector from an intensifying attack by the gas industry.
This is the first time the European commission has raised the issue of mandatory targets beyond 2020, when the current commitment – to generate 20% of energy from renewable sources – expires.
An extension would boost the renewable energy industry in the face of lobbying efforts by the gas industry, which is trying to rebrand gas as a cheaper "green" alternative to renewables.
In its attempts to push this line, the gas industry has held a series of high-level meetings with senior figures in the European commission and the European parliament, as well as with the governments of member states.
Connie Hedegaard, the climate change commissioner in Brussels, is concerned at the lobbying, and is determined to maintain Europe's lead in developing renewable energy and clean technology. "We should be looking to avoid a lock-in to fossil fuels," she said. "We should be discussing a renewable energy target for 2030. We need to have ambitious targets. It would be one way to send a long-term price signal for renewable energy – that renewable energy is not just going to stop growing after 2020."
In an interview with the Guardian, Hedegaard declined to put a clear figure on what the renewable energy target should be beyond 2020. But others have suggested that it could be cost-effective to opt for a target of 40% by 2030.
The push to extend the target is likely to be resisted by some member states who fought hard against the 2020 targets when they were unveiled in early 2007. Poland is known to be concerned that its heavy reliance on coal should not attract penalties, and Italy has a history of opposing climate targets.An official in the department of Günther Oettinger, the EU commissioner for energy, said no targets were yet needed beyond 2020. He is also against raising the current emissions-cutting target from 20% by 2020 to 30%, as some member states – including the UK, France and Germany – have proposed.
A spokesman for José Manuel Barroso said the European commission president was following the arguments closely, but had no view on the matter of new targets.
In its "Roadmap to 2050", the commission estimated that the share of low-carbon technologies – comprising renewables, nuclear power, and carbon capture and storage – in the electricity mix would have to rise to 75% or 80% by 2030.
The gas industry's lobbying push has been inspired by the rapid expansion of shale gas, a controversial form of the fuel that is extracted from dense shale rock. Industry estimates suggest there may be enough of this and other so-called "unconventional" forms of gas, which are newly accessible because of advances in a technique known as hydraulic fracturing - "fracking" – to power the globe for two centuries.
Lobbyists have circulated a report by the European Gas Advocacy Forum, co-authored by the consultancy McKinsey, that appears to show Europe could meet its 2050 greenhouse gas targets and save €900bn by opting for gas rather than renewable energy generation.
However, the assertions of the gas industry are now in doubt. The EGAF report was adapted from a previous study that contradicts this claim, concluding that Europe should opt for more renewable power in order to meet its emissions targets and improve its energy security. The EGAF report has now been disowned by the original study's co-authors, the European Climate Foundation.
A separate study from Cornell University also found that, because of the difficulties involved in its production, using shale gas for electricity generation produces as much carbon dioxide as coal, if not more.
Subscribe to:
Posts (Atom)
Posts
