Renewable Energy World Magazine May/June 2013

THANK YOU SUBSCRIBERS!
Youve joined 50,000+ readers worldwide to be more informed

and more competitive in todays ever-changing
renewable energy industry.
M
A
G
A
Z
I
N
E
W
i
n
d

E
n
e
r
g
y
E
u
r
o
p
e
a
n

P
r
o
j
e
c
t
s
L
a
u
n
c
h
e
d

t
o

I
m
p
r
o
v
e

W
i
n
d

T
u
r
b
i
n
e
s

p
.
5
0
Look for our ALL NEW

environmentally-produced
and 100% digitally
delivered magazine
for your next issue!
REWcom_REWukdm_1305 1 5/8/13 8:49 AM
INVESTING IN RENEWABLES
The markets are in fux, and while some
players are bowing out a new breed of
investor is pouring into the space
TRANSFORMING TANZANIA
A charity-backed solar-wind project is
not just bringing power, but the power of
communication to East Africa
MAY-JUNE 2013 VOLUME 16 NUMBER 3
ITALY CLAMPS DOWN ON WIND
CORRUPTION
1305REW_C1 C1 5/15/13 1:30 PM
germanys new market
How solar thermal process heat is
shaping up as a promising new segment
of Germanys solar market
off-grid in ladakh
A wide-reaching off-grid initiative
brings renewable power to the remote
mountains in India
r
e
n
e
w
a
b
l
e

e
n
e
r
g
y

w
o
r
l
d
M
A
R
C
H
-
A
P
R
IL

2
0
1
3
v
o
L
u
M
e

1
6

n
u
M
b
e
R

2
MARCH-APRIL 2013 voLuMe 16 nuMbeR 2
lead the field in risk
management
1303_REW_C1_FrontCOVER.indd 1 18/03/2013 11:17
A quick start guide to MAXIMIZING our interactive features.
Welcome to the
Digital Edition of
ShAre an article or
page via social media.
Click pAGeS to view
thumbnails of each
page and browse
through the entire issue.
Easily browse all bAck ISSueS.
SeArch for specifc
articles or content.
View the table of coNteNtS and
easily navigate directly to an article.
dowNloAd the issue to your desktop.
prINt any or all pages. ShAre an article via email.
Easily NAvIGAte
through the issue.
Click directly on the page to ZooM in
or out. Fit the issue to your screen.
A4Transition_Template_spread.indd 1-2 3/19/13 6:10 PM
germanys new market
How solar thermal process heat is
shaping up as a promising new segment
of Germanys solar market
off-grid in ladakh
A wide-reaching off-grid initiative
brings renewable power to the remote
mountains in India
r
e
n
e
w
a
b
l
e

e
n
e
r
g
y

w
o
r
l
d
M
A
R
C
H
-
A
P
R
IL

2
0
1
3
v
o
L
u
M
e

1
6

n
u
M
b
e
R

2
MARCH-APRIL 2013 voLuMe 16 nuMbeR 2
lead the field in risk
management
1303_REW_C1_FrontCOVER.indd 1 18/03/2013 11:17
A quick start guide to MAXIMIZING our interactive features.
Welcome to the
Digital Edition of
ShAre an article or
page via social media.
Click pAGeS to view
thumbnails of each
page and browse
through the entire issue.
Easily browse all bAck ISSueS.
SeArch for specifc
articles or content.
View the table of coNteNtS and
easily navigate directly to an article.
dowNloAd the issue to your desktop.
prINt any or all pages. ShAre an article via email.
Easily NAvIGAte
through the issue.
Click directly on the page to ZooM in
or out. Fit the issue to your screen.
A4Transition_Template_spread.indd 1-2 3/19/13 6:10 PM
For more information, enter 1 at REW.hotims.com
1305REW_C2 C2 5/15/13 11:39 AM
RENEWABLE ENERGY WORLD MAY-JUNE 2013 1
CONTENTS
REGULARS
From the editor ............................................. 5
News/Analysis ............................................... 6
The Big Question ......................................... 22
Data Points .................................................. 36
Diary ............................................................ 60
Advertisers Index ........................................ 60
THE DEAL
Soitecs South African solar bond .........................19
CPV company Soitec has issued a bond which it will use to
fnance a new solar installation in South Africa. A relatively new
phenomenon, could such fnancial instruments become the norm
for future renewable energy fnance?
By Jennifer Runyon
THE LAST WORD
Funding divisions for wave and tidal ..................58
Throughout the 2000s, the emerging wave and tidal stream
energy industries operated as a unit But some argue that wave
and tidal energy have now diverged enough to be funded with
differentiated support.
By Felicity Jones and Robert Rawlinson-Smith
FEATURES
Cracking crime in Italian wind .................... 26
In the old days when gangsters threatened you, youd have a
sinking feeling; the certainty that something was amiss. But when
mobsters brandish environmental impact assessments or power
point presentations with balance sheets, things become a lot less
straightforward.
By Rachana Raizada
Novel PV encapsulant materials ................... 33
Ethylene vinyl acetate (EVA) commands the vast majority of solar
module encapsulation today and for good reason. It has a proven
track record, it is a low-cost option and many manufacturers
are geared for its continued use. But the emergence of both
thin-flm and high-effciency solar cells means a greater need for
alternatives to EVA.
By James Montgomery
INVESTING IN RENEWABLES
The markets are in fux, and while some
players are bowing out a newbreed of
investor is pouring into the space
TRANSFORMING TANZANIA
A charity-backed solar-wind project is
not just bringing power, but the power of
communication to East Africa
R
E
N
E
W
A
B
L
E

E
N
E
R
G
Y

W
O
R
L
D
M
A
Y
-
J
U
N
E
2
0
1
3
V
O
L
U
M
E
1
6
N
U
M
B
E
R
3
ITALY CLAMPS DOWN ON WIND
CORRUPTION
26
33
Cover photo: David Appleyard
1305REW_1 1 5/15/13 11:45 AM
2 RENEWABLE ENERGY WORLD MAY-JUNE 2013
CONTENTS
Enticing new solar investors ...................... 39
At the recent PV America conference we spoke with three key
solar project fnance players. Conor McKenna with Reznick Capital
Market Securities, Tim Short with Capital Dynamics and Laura
Jones with Hunton and Williams discuss the complexities of solar
project fnance and reveal how to attract new entrants.
By Jennifer Runyon
New order for wind ..................................... 45
The latest edition of the World Market Update from BTM Consult
ApS A part of Navigant, has been published, revealing an upset
in the global supplier rankings as well both good and bad news in
its forecast out to 2017.
By David Appleyard
Powering information in Africa ................... 49
Charity group Renewable World has been working with a regional
partner, the Arid Lands Information Network (ALIN), to develop
an information centre (Maarifa Centre) for the vulnerable people
of Songambele, 97 km from the town of Dodoma in northern
Tanzania. Renewable World supported the introduction of a wind-
solar hybrid system to power the Information Centre.
By Fran Witt
Whos investing in renewables ................... 53
Investment in renewable energy is changing, with investors who
were once the backbone of the market pulling out and new
entrants increasingly taking up the slack. We look at the latest
trends in renewables investment.
By Tildy Bayar
49
39
53
1305REW_2 2 5/15/13 11:45 AM
Solar experts on a global scale
How much time and money could you save with a state-of-the-art
solar solution one thats reliable, efficient, and custom designed
to your project requirements?
No matter the size or scale of the project, Schneider Electric
has
a bankable photovoltaic (PV) solution to fit your needs. Its all part
of our offer as the world leader in energy management.
A comprehensive PV solution
From residential homes to large buildings and off-grid to power
plants, we offer an appropriate electrical infrastructure that reduces
your energy costs and is guaranteed to meet local specifications.
With our state-of-the-art inverters, an extensive background in
backup power supplies, and our end-to-end electrical solutions, no
one is better able to offer you:
> Solar farm solutions with guaranteed high availability
> Large building solutions that cut operating costs
> Residential solar packages with quick, easy installation
Optimize your energy harvest
Our nationwide network of professional power system engineers
and qualified operational personnel provide reliable services you
can count on.
Now, get an end-to-end solar
solution from a provider you
can count on.
Reduce energy and capital costs with an end-to-end electrical
infrastructure from Schneider Electric.
Residential Off-grid Commercial Power Plants
Solar farms and large buildings
Supervision, security, real-time monitoring are
all part of our high-availability, large-scale
solar solutions with optional service plans to
guarantee uptime.
Off-grid and backup
Battery-based inverter systems are ideal for
remote locations where off-grid power is required,
or for backup when the grid goes down.
Residential and small buildings
Now your customers can get a complete grid-tie
electrical system with state-of-the-art products,
including an inverter, wiring boxes with PV/utility
disconnects and innovative monitoring, control,
and design software.
Download the 2013 Schneider Electric Solar
Catalog and earn a chance to win a Google
Nexus 10 tablet!
Visit www.SEreply.com Key Code a131u
2013 Schneider Electric. All Rights Reserved. Schneider Electric is a trademark owned by Schneider Electric Industries SAS or its affiliated companies.
A|| other trademarks are property ol the|r respeot|ve owners. www.sohne|der-e|eotr|o.oom 998-3240_S_Nexus
This worldwide event
is coming to a city near
you in June 2013!
1305REW_3 3 5/15/13 11:45 AM
Because
Experience Matters
Discover more at bechtel.com
352026.0N 1151834.9W
Ivanpah California, USA
Since its founding in 1898, Bechtel has worked on more than 22,000
projects in 140 countries on all seven continents. Today, our 53,000
employees team with customers, partners and suppliers on diverse
projects in nearly 50 countries.
Bechtel is built upon time-tested values of excellence and integrity.
The reliability of our performance, the enduring quality of our proj-
ects, the strength of our ethics, and the seriousness of our commit-
ment to safety and sustainability, are evident in everything we do. We
stand apart for our ability to get the job done- no matter how big, how
complex, or how remote.
CIVIL
GOVERNMENT SERVICES
MINING & METALS
OIL, GAS & CHEMICALS
POWER
1305REW_4 4 5/15/13 11:45 AM
FROM THE EDITOR
Member, BPA Worldwide
Chief Editor David Appleyard
Associate Editor Tildy Bayar
Consulting Editor Jackie Jones
Contributing Editors Richard Baillie, Meg Cichon,
Michael Harris, James Lawson, James Montgomery,
Tim Probert, Rachana Raizada, Kelvin Ross, Jennifer
Runyon, Elisa Wood, Robin Yapp
Design Kajal Patel
Production Director Mari Rodriguez
Marketing Ella Coulson
Group Publisher James Callihan
Chairman Frank T. Lauinger
President/CEO Robert F. Biolchini
Chief Financial Offcer Mark C. Wilmoth
Sales Managers Peter Andersen, Dan Harper,
Kate Hart, Sandra Spencer
Published by PennWell International Publications Ltd,
The Water Tower, Gunpowder Mills, Powdermill Lane,
Waltham Abbey, Essex EN9 1BN, UK
Tel: +44 1992 65 6600
Fax: +44 1992 65 6700
e-mail: rew@pennwell.com
A detailed supplier listing and other information can
be found at www.RenewableEnergyWorld.com
Advertising: For information on advertising in future
issues of the magazine, please contact:
Peter Andersen on
+1 603 924 4405 ext 204, or
Dan Harper on
+1 603 924 4405 ext 211
Kate Hart on
+1 603 925 3218 (direct)
Sandra Spencer on
+44 1992 656 664 (direct),
Editorial on
+44 1992 656 603 (direct), or
e-mail rew@pennwell.com
2013 PennWell International Publications Ltd
All rights reserved. No part of this publication may be
reproduced in any form or by any means, whether
electronic, mechanical or otherwise including
photocopying, recording or any information storage
or retrieval system without the prior written consent of
the Publishers.
While every attempt is made to ensure the accuracy of
the information contained in this magazine, neither the
Publishers nor the authors accept any liability for errors
or omissions.
Opinions expressed in this publication are not
necessarily those of the Publishers or Editor.
Subscriptions: Renewable Energy World is circulated
free to professionals in the renewable energy industry.
To start a free subscription visit www.rew-subscribe.
com. Professionals outside the renewable energy
industry may start a paid subscription. For pricing
information visit www.omeda.com/rew or call +1
847-559-7330.
Renewable Energy World, ISSN 1462-6381, is
published six times a year by PennWell International
Publications Ltd, The Water Tower, Gunpowder Mill,
Powdermill Lane, Waltham Abbey, Essex EN9 1BN,
UK, and distributed in the USA by SPP at 75 Aberdeen
Road, Emigsville, PA 17318-043. Periodicals Postage
paid at Emigsville PA.
Postmaster: send address changes to
Renewable Energy World
c/o P.O. Box 437 Emigsville, PA. 17318.
Reprints: If you would like to have a recent article
reprinted for a conference or for use as marketing
tool, please contact Rhonda Brown. Email:
pennwellreprints@fosterprinting.com. Tel +1 866 879
9144, extn 194 or direct line +1 219-878-6094
Printed: in the UK by Williams Press Ltd
on elemental chlorine-free paper from sustainable forests.
I
mprovements in cost-competitiveness mean that renewable energy will
account for between 69% and 74% of new global power capacity added by
2030, new research by Bloomberg New Energy Finance shows.
This latest forecast comes despite diffcult market conditions and suggests
that annual investment in new renewables is set to rise by a factor of between
two and four or more by then. Indeed, according to Bloomberg, the most likely
scenario will see investment jump by 230%, to US$630 billion per year by
2030, driven by further improvements in the economics of wind and solar, as
well as an increase in the roll-out of despatchable renewable resources like
hydro, geothermal and biomass.
In this latest analysis their most likely outcome projects a total installed
renewable energy capacity that is 25% higher than in the previous forecast,
at 3500 GW. Under the two other scenarios investment also increases for
renewables, though it could reach anywhere between $470-$880 billion by
2030. In terms of electricity production, overall the share of renewables will
increase from 22% in 2012 to 37% in 2030, the report fnds.
Guy Turner, head of economics and commodities for BNEF noted that
renewable technologies will form the anchor of new generating capacity
additions, saying: The main driver for future growth of the renewable sector
over this timeframe is a shift from policy support to falling costs and natural
demand.
The new BNEF analysis joins recent fve-year forecasts from bodies such
as the Global Wind Energy Council and the European Photovoltaic Industry
Association (GWEC and EPIA), which largely echo the longer-term fndings but
are rather more pessimistic in the shorter term.
For example, in its outlook to 2017, GWEC has downgraded from its advanced
to its moderate scenario but remains ultimately bullish on wind, predicting that
worldwide installed capacity will pass 500 GW by 2017. For the second year
running, BTM Consult ApS also predicts a reduction in market value for the
next fve years. And it too has downgraded its wind market outlook in the short
term, though remains optimistic. EPIA reports a similar scenario for solar PV.
What these various forecasts reveal is that despite the on-going economic
challenges there is a place for renewable energy at the table and its share
of the market is one which will certainly grow over time, backed by policy
initiatives based on their environmental performance, their ease of use and
their improving economics.
Michael Liebreich, BNEF chief executive neatly summarises, explaining that
while the news today is dominated by stories of pain caused by supply side
overcapacity and cheap shale gas, this is playing out against the falling costs
of renewable energy and of the various technologies required to integrate it
into the existing energy system. Most tellingly he says, ...and falling costs win.
Thats a safe bet.
David Appleyard
Chief Editor
1305REW_5 5 5/15/13 11:45 AM
NEWS ANALYSIS
MAJOR MARKETS CONTINUE
TO DETERMINE WINDS PATH
WIND FORECAST
Although its forecast for 2013
involves a much more signifcant
drop in the global wind market than
last years prediction, downgrading
from its advanced to its moderate
scenario, the Global Wind Energy
Council (GWEC) is ultimately bullish
on wind, predicting that worldwide
installed capacity will pass 500 GW
by 2017.
Wind continues to grow
worldwide, with signifcant new
activity in Latin America, Africa
and Asia outside China and India.
But, says GWEC, developments
in the major markets of Europe,
China and the US are still the main
determinants of global growth.
In its annual market outlook,
GWEC cited a major drop in US
installations, slower than expected
recoveries in China and India,
and a slowdown in Europe as
contributors to its reduced forecast.
The trade body predicts that annual
installations will drop this year
by more than 11%, to just under
40 GW, but will recover sharply
in 2014 to slightly exceed 2012s
market, averaging just over 11%
annual growth from 2014 to 2017.
Average for the fve-years to 2017
is expected to be almost 7%, with
an annual total of 61 GW in 2017.
In cumulative terms, GWEC
predicts a total global capacity
of around 536 GW in 2017, with
an average annual growth rate of
about 13.7%.
THE ISSUES
Continued uncertainty over the
global economys short-term
development hangs over this
forecast, and GWEC expects the
downward pressure on turbine
prices, caused by sluggish markets
and manufacturing overcapacity,
to continue. In addition, the trade
body reports that increasing use
of local content requirements and
trade restrictions adds a signifcant
burden for investors.
Policy at the national level is the
most signifcant factor driving the
global market, the report fnds. In
the US, although the Production
Tax Credit (PTC) has been extended
for another year (and will now cover
projects breaking ground in 2013 as
well as grid-connected projects), a
downturn for 2013 may be followed
by an upswing the following year.
In Europe, recent policy swings
will affect many markets in 2013
and perhaps into 2014 but the
long-term effects are unknown,
as are the EUs post-2020 targets,
currently under discussion. GWEC
expects the Chinese market to take
longer than its government predicts
to return to signifcant growth after
its consolidation phase. And India
will probably not see the effects of
renewed policy support until 2014.
BY REGION
While new markets in Africa, Latin
America and Asia are evolving
rapidly, the report predicts that their
numbers will not have a signifcant
impact on the global picture for the
next fve years, with the exception
of Brazils burgeoning market which
GWEC expects to install impressive
capacity. The trade body points
to South Africa and Pakistan as
surprisingly productive, while it
says the new push for a renewable
energy industry in Saudi Arabia
could show substantial results
toward 2017 although it cautioned
that that is very much a wild card
at this stage. Major impact from
new markets in East and North
Africa and East and Southeast
Asia will only begin to impact the
global picture toward the end of
the decade, GWEC says. In Latin
America it predicts a proliferation of
smaller rather than major markets in
the near term.
Asia will continue to be the
worlds largest market, expected to
install about 112 GW in the next fve
years and ending 2017 with more
than 200 GW. China will recover
signifcantly, but reaching the
governments target of 18 GW by
2017 is unlikely. The report predicts
a low installation level for Japan
to 2017. South Korea is expected
to build at least 1 GW offshore,
but GWEC says this focus is at
the expense of onshore. Markets
in Mongolia, Thailand the the
Philippines will build slowly to 2017,
the report says, and Pakistan with
2.7 GW from more than 40 projects
is the star of the region.
While the report found Europe
exceeding all expectations by
installing 12.7 GW in 2012, it is
expected that 2013-2014 will see
installation levels below 2012s.
But emerging Eastern European
markets and strong second-tier
markets will take up the slack.
GWEC predicts that Europe will be
back on track by 2015.
Offshore installations in Europe
passed the 1 GW mark in 2012,
the report found, accounting for
about 10% of total installations
in the EU. GWEC expects this
trend to intensify over the next fve
years, with offshore installations
accounting for 3 GW or more per
year by 2017. Total European
installed capacity is predicted to be
about 63 GW, for a cumulative total
of more than 170 GW by end 2017.
In North America the 13th
hour reauthorisation of the US
Production Tax Credit (PTC) in
January has brightened GWECs
view of the market, although the
report cautions that installations
are expected to drop in 2013 to
less than one third of 2012 levels.
GWEC did not predict US growth
after 2014, calling it anyones
guess. Mexicos wind industry
had a record year in 2012 and
GWEC believes it will become a
third signifcant North American
market with 1 GW-1.5 GW per
year and robust growth expected
to 2017. GWEC predicts a 1.5 GW
market for Canada in 2013 and total
installations of over 52 GW in North
America to 2017, with an end fgure
of about 120 GW.
GWEC expects Brazils dramatic
market growth to continue
to dominate Latin Americas
wind sector to 2017, although
installations will be seen in smaller
Central American and Caribbean
markets and in Chile, Peru,
Venezuela, Uruguay and Argentina.
Brazil installed more than 1 GW
in 2012 and is expected to install
more than 2 GW in both 2013 and
2014, accounting for the bulk of the
regions total projected 16.5 GW in
2017.
GWEC found just over 100
MW installed in the MENA region
although there is much activity,
especially in South Africa which
is predicted to install around 400
MW annually to 2017 and beyond.
In Ethiopia, Kenya, Morocco and
Jordan new projects are also
getting underway, and GWEC
expressed its hope that Egypts
situation will stabilise in order
for its 7 GW plan to be realised.
The Saudi government also has
ambitious plans which may come
to fruition before 2017. Overall,
GWEC expects more than 8 GW of
new capacity to be installed in the
region by 2017, for a total capacity
of 10 GW.
In the Pacifc region, GWEC
predicts that Australias new
carbon legislation and its 20% by
2020 Renewable Energy Target will
help the market grow from its 2012
number of 358 MW in new installed
capacity and total capacity of
almost 2.6 GW.
The nation has a 19 GW pipeline
of which roughly one fourth should
become operational by 2017, the
report said. Overall installations in
the Pacifc region are predicted to
be slightly under 5 GW, and its total
installations will be just over 8 GW
in 2017.
Tildy Bayar
GWEC
1305REW_6 6 5/15/13 11:46 AM
1305REW_7 7 5/15/13 11:46 AM
NEWS ANALYSIS
AS EUROPES DOMINANCE
WANES, OTHERS PICK UP PV
PV MARKET OUTLOOK
Europes role as the main driver
for the global solar photovoltaics
(PV) market is coming to an
end, concludes the European
Photovoltaic Industry Association
(EPIA) in its new report, Global
Market Outlook for Photovoltaics
2013-2017, released in early May.
The results show clearly that
Europes dominance is declining,
said the trade body. Europe
accounted for more than 70% of
the worlds new PV installations in
2011, while in 2012 this number
was around 55%, the report found.
In 2013, said EPIA, it is almost
certain that the majority of new
global PV capacity will be installed
outside Europe, and that this trend
will continue.
2012S NUMBERS
Australia expanded rapidly in
2012 with around 1 GW of new
installations. India installed 980
MW, fnally realising a part of its
huge potential. In Korea, 252 MW
were installed, a sign that the
market has restarted but it remains
at a low level, constrained by a
quota system. Taiwan reached the
100 MW mark for the frst time with
104 MW while Thailand, with a huge
pipeline of projects, commissioned
210 MW. Malaysia, where several
manufacturers are producing,
installed 22 MW. In the Americas,
Canada has expanded more slowly
than some have expected with 268
MW, and Mexico and Peru installed
several megawatts each. Brazil and
Chile, with their huge potential,
havent commissioned many
systems yet. In the Middle East
region, Israel remained the only
country with a signifcant market,
while Saudi Arabia showed some
interest in PV development. The
Turkish market remains quite low
despite its potential.
EUROPE ON THE WANE
The report found that an estimated
31 GW of new PV capacity was
commissioned worldwide in 2012,
roughly the same amount reported
in 2011s results. But there is a
key difference this time around. In
2011, 22.4 GW of new capacity was
installed in Europe, while in 2012
that number fell to 17.2 GW while
vigorous growth in other markets
took up the slack. Last years
decline was due largely to the end
of 2011s record-setting Italian PV
boom, EPIA found, while the rest of
the market stabilised.
The report termed the future of
the European market uncertain.
Drastic cuts to some support
programmes will push their markets
down in 2013, EPIA said, even
though emerging markets in Europe
could offset any major decline.
Given these new conditions, EPIA
said the short-term prospects for
European markets are stable (in
the best case) or declining. Without
support for PV from policymakers,
the trade body fears the transition
could be quite painful over the next
two or three years but with policy
support, it said, the market could
stabilise in 2013 and grow again
from 2014.
GLOBAL GROWTH
Going forward, the forces driving
the global PV market will be in
countries such as China, the US,
Japan and India, EPIA said, noting
that the PV market is becoming
truly global. Outside Europe, it
noted, the market is well-balanced
in terms of total installed capacity:
three countries with huge potential
lead the pace, followed by an
emerging secondary market.
Except for the 2011-2012 Australian
boom, EPIA said the market in most
countries remains under control.
The report found that new non-
European installations accounted
for 13.9 GW in 2012, compared to 8
GW in 2011. China took frst place
with a probable 5 GW, followed by
the US with 3.3 GW and Japan with
around 2 GW. All are expected to
continue growing in 2013, although
EPIA expects China to be one
of the two top markets this year,
rather than necessarily number
one. EPIA expects the fastest PV
growth to 2017 to continue in China
and India, followed by Southeast
Asia, Latin America and the MENA
countries. But in the reports
business-as-usual scenario, growth
expected outside Europe is unlikely
to compensate fast enough for the
European markets slowdown. Even
in this scenario, though, EPIA says
the global market could reach 48
GW in 2017, while under a policy-
driven scenario that number could
be as high as 84 GW.
THE ISSUES
Factors such as the approaching
competitiveness of PV compared
to other electricity sources, the
changing nature of electricity
markets, trade conficts and the
turmoil facing the PV industry
due to consolidation are already
affecting the market outlook for the
near future, EPIA cautioned.
In 2012, the report found, the
precipitous drop in PV system
prices in all markets triggered new
installations that compensated
for Italys decline. But given the
manufacturing sectors current
uncertainty, module price stability is
an ongoing issue with implications
for drops in system prices and the
opening of new markets. Crucially,
EPIA said, The link between price
decrease and the unlocking of
new markets is the key to market
development. But prices were
pushed even lower in 2012 due to
overcapacity and existing markets
inability to absorb more PV.
According to EPIA, market
evolution to 2017 will depend
largely on European developments
and policymakers ability to
maintain market conditions at
acceptable levels. With policy
support, EPIA said the European
market could stabilise at around 16
GW17 GW in 2013 before growing
slowly to around 25 GW28 GW
in 2017. The new markets could
help ensure both signifcant growth
even as soon as this year, and
robust market development in the
following years. EPIA expects the
Asia-Pacifc region (minus China)
to represent between 10 GW and
20 GW each year until 2017. China
alone could add 10 GW annually, as
announced by Chinese authorities.
THE NEXT FIVE YEARS
EPIA reminds us that 2012s more
than 100 GW in cumulative global
PV capacity represents a major
achievement. Depending on the
conditions of the reports business-
as-usual scenario, the 200 GW
mark could be reached between
2014 and 2016, while in the policy
driven scenario EPIA believes that
more than 420 GW of PV could be
connected to the grid over the next
fve years.
Tildy Bayar
Global annual PV market forecast under business-as-usual and
policy-driven market scenarios to 2017
EPIA
1305REW_8 8 5/15/13 11:46 AM
JUMP START YOUR WIND TURBINE
WITH THE WASHER!
TENSIONING NUTS TENSIONING WASHERS TORQUE/TENSION TOOLS TECHNICAL SUPPORT
1-800-FOR-HYTORC
WWW.HYTORCWIND.COM
Since 1968
1305REW_9 9 5/15/13 11:46 AM
NEWS ANALYSIS
ILUC CALCULATIONS AT ISSUE
BIOFUELS POLICY
Debate is brewing over biofuels
policy ahead of Junes G8 summit
in Northern Ireland. A report by anti-
poverty group ActionAid has stirred
growing calls for the Group of 8
wealthiest nations (Canada, Russia,
France, Germany, Italy, Japan, the
UK and the US) to reconsider their
biofuel policies.
ActionAid has highlighted
concerns that the EUs 10%
renewable fuel target is increasing
the use of biofuels made from
crops that could be used for food,
driving up prices and giving rise
to agricultural practices that emit
more greenhouses gases.
PROPOSED EU CHANGES
In response to these concerns,
in October 2012 the European
Commission proposed limiting
the percentage of biofuel that is
derived from food crops or causes
indirect land-use change (ILUC)
a measure of unintended carbon
emissions resulting from the use
of land for biofuel crops to, at
most, 50% of its 10% renewable
transport fuels quota. The other
50% would come from second-
generation biofuels (which are
not derived from food crops). The
proposal is currently being debated
in the European Parliament.
French MEP Corrinne Lepage
has proposed that Europes
restrictions should be tightened.
She wants to apply ILUC factors
earlier and making them count
toward the 6% greenhouse gas
reduction obligation outlined in the
EUs fuel quality directive.
Under the ECs proposal, ILUC
impacts would be monitored under
the fuel quality directive, but would
not change the way the obligation
is met. Lepages proposal would
make up for any potential proft loss
affecting frst-generation biofuel
producers by exempting some
biofuel an amount equivalent
to 2010 levels from ILUC limits.
Producers of biodiesel would have
until 2020 to comply.
We have to take into account
investments that have already
been made, Lepage told the EU
Environment Committee. Biofuel
companies have said the EUs
current policy encouraged them to
make investments which a policy
reversal could render useless.
The environment committee will
vote on the proposal on 10 July,
followed by a full vote by Parliament
in November.
LEGAL CHALLENGES
Some have said that the EUs
proposal could result in legal action
from the WTO. Unica, the Brazilian
sugar cane industry association,
called on a legal expert who
identifed similarities between the
ECs proposal and several WTO
cases that the US has lost. Even
if the proposal is not discriminatory
in its language, it is creating a
de facto trade discrimination.
It gives the advantage to non-
food biofuels, which are nearly
exclusively produced in Europe
and the US. Other countries do not
have the technology and would be
excluded, Jung-ui Sul, a member
of global law frm Sidley Austins
International Trade and Arbitration
Group, told Unica.
Fredrik Erixon, director of the
European Centre for International
Political Economy, agreed, calling
the proposed reform discriminatory
on the grounds that it will favour
biofuels produced in Europe. ILUC
factors are not reliable enough
evidence to justify de facto trade
discrimination, he said.
An ILUC factor simply cannot
be used for diligent policy, Erixon
said, for the simple reason that
it is impossible to make reliable,
transparent, evidence-based
assessments on ILUC emissions
for a particular crop. Many attempts
have been made to model the ILUC
emission effects, but they come
to profoundly different results.
That is not very surprising it is
impossible to manage so many
different and changing factors that
constitute the derivative effects of
one companys decision to use a
particular feedstock to produce a
fuel, he said.
Erixon also foresees European
legislation violating WTO rules.
Foreign competitors to biofuels
produced in Europe could be
discriminated [against] even
if the producer can prove it is
friendlier to the environment or
the climate than those biofuels
that get the green light from the
EU, he explained. And since such
discrimination would introduce a
regulation with effect on a direct
competitive relationship between
foreign and domestic product,
it is highly unlikely that it would
be approved even if it would be
possible to make a reliable estimate
on ILUC emissions. Countries will
not be allowed departure from
WTO rules on non-discrimination
when a discriminatory action so
clearly would alter a competitive
relationship.
INDUSTRY REACTION
The biofuels industry says it is
developing advanced biofuels
that do not compete with food.
The European Renewable Ethanol
Association (ePure) points out that
ethanol uses post-food residues for
fuel production.
Rob Vierhout, ePURE secretary
general, said: The biofuel debate
now needs to move beyond
stereotypes to a more nuanced
discussion. Europes policymakers
recognise the importance and
diversity of this industry. Indeed,
the report by Lepage puts ideas
on the table that will contribute to
the reduction of greenhouse gas
emissions for transport in Europe.
But more needs to be done, notably
in the development of advanced
biofuel markets.
Without a healthy market for
conventional renewable ethanol and
without a longer-term perspective
for the industry, he continued,
the necessary investments into
advanced biofuel are unlikely to
take place.
Copa-Cogeca, the European
farmers and agri-cooperatives
trade body, has called for ILUC
effects and ILUC factors to be
removed from both directives,
and for existing production
facilities to be protected through
a grandfathering clause. They also
ask that the EU defne a separate,
mandatory objective higher than
10% for advanced biofuels.
Copa-Cogeca says it
encourages the protection of
carbon-rich soils and biodiversity
in third countries through bilateral
agreements, fnancial support and
legal advice. It argues that this
approach would be more effective
than ILUC factors and capping the
use of conventional biofuels, both
of which would have a detrimental
effect on European production and
would not necessarily mitigate the
phenomenon of land use change in
third countries, it says.
Saying that the food vs. fuel
debate is too simplistic, Copa-
Cogeca stresses that stakeholders
have not been consulted about the
ECs proposal. But the group says
the existing European target of
10% renewable energy sources in
the transport sector is still realistic,
but only if conventional biofuels are
produced in a way that does not
prejudice food production.
Tildy Bayar
EUROPEAN COMMUNITY
1305REW_10 10 5/15/13 11:46 AM
THE INSTALLATION SHOULD FIT THE INVERTER.
Get the specs at: www.power-one.com/TRIO
THE NEW 20kW AND 27.6kW TRIO STRING INVERTERS:
Rethinking commercial applications.
The rst 1000V DC string inverter certied to UL1741 lets you take a modular approach
to commercial systems for a level of exibility impossible with large central inverters.
Its 1000V DC output also helps reduce balance of system costs as much as 40%.
Additionally, they are small and light enough to be wall-mountedavoiding the expense
of cranes or concrete pads. All without sacricing energy harvest which our dual MPPT
and 97.5% CEC efciency make among the industrys best.
1305REW_11 11 5/15/13 11:46 AM
NEWS ANALYSIS
UP TO 67.9% EU DUTIES TO
BE IMPOSED ON CHINESE PV
SOLAR TRADE
In early May 2013 the European
Commission decided to
recommend duties on Chinese solar
panels of up to 67.9%, according to
reports from multiple sources.
The Wall Street Journal reported
that the tariffs will affect more
than 100 companies, and will
be implemented at a range from
37.3% to 67.9% at an average of
47.6%. Companies will face tariffs
as follows:
Suntech and subsidiaries: 48.6%
LDK Solar: 55.9%
Trina Solar: 51.5%
A Solar: 58.7%
Companies that cooperated with
the investigation will likely be hit
with a 47.6% tariff, while those that
did not will face the top rate tariff.
China strongly opposes the move
and is calling for extended dialogue
to resolve the situation, according
to Bloomberg. The Alliance for
Affordable Solar Energy (AFASE),
a coalition of over 500 European
solar companies, also expressed
its concern in a statement, claiming
that punitive tariffs will cause
irreversible damage to the entire
European photovoltaic value chain.
Last November the US
handed down anti-dumping and
countervailing duties, a move which
presumably provided momentum to
the European plans.
The ECs preliminary decision
on antidumping was scheduled
for early June, followed by a
preliminary ruling on anti-subsidies
in August. Both are now expected
to be fnalised in December.
In recent weeks the EC has
further tightened the screws
on Chinese solar imports, frst
requiring registration of panels, and
more recently initiating anti-subsidy
and anti-dumping investigations
into solar glass from China. The
latter, spawned by a complaint
by EU ProSun Glass, is a distinct
investigation from that covering
Chinese solar panels, and is said
to be not formally affliated with the
SolarWorld-led EU ProSun coalition
which launched the broader solar
complaint a year ago.
Not all of Europe is united in
this solar dispute. The Solar Trade
Association (STA) has expressed
deep concerns and overwhelming
opposition in an open letter to
European Trade Commissioner
Karel De Gucht. The impact
on employment and EU value
added will far outstrip any impact
that the duties may have on EU
photovoltaic producers, particularly
because these producers are
struggling with structural issues
that cannot be effciently addressed
through the imposition of duties,
they say. Duties at any level are
already having a signifcant impact,
dwarfng any possible beneft for
European solar producers and
setting back the objective for grid
parity for years.
Meanwhile, China and France
have been formally discussing
broader economic relations and the
cooperation of common interest,
including having the French urge
the EU to cautiously utilise trade
remedy measures regarding the PV
investigations.
And China has repeatedly
suggested it might retaliate with its
own probe into US and European
polysilicon suppliers. I continue
to not understand the logic of
a retaliatory Chinese penalty on
silicon imports, said Thomas
Gutierrez, president and CEO of
GT Advanced Technologies. China
cant support itself in high-quality
production of polysilicon. And
if they put tariffs on polysilicon,
theyre going to increase the cost
of their already proftless wafer and
cell manufacturing industry, he
said in a statement.
Among the arguments lobbed
in the EU/China trade dispute is
the issue of jobs at risk, as it was
in the US/China dispute. A report
earlier this year suggested nearly
a quarter of a million jobs might be
at stake across several European
countries, potentially wiping out
18.4-27.2 billion of economic
activity. Conversely, Chong
Quan, deputy international trade
representative with Chinas Ministry
of Commerce, has suggested that
some 400,000 Chinese workers
could be affected by Europes solar
trade decision.
Both types of trade disputes
have dangerous consequences
for the overall global market. If
domestic requirements are forced
to be abandoned and incentive
policies changed radically, that
would change demand in specifc
countries, explained Michael
Barker, senior analyst at Solarbuzz.
Trade issues are big but PV
demand is driven more by local
policy and regulatory movements
than by cost, Barker said. As
costs come down, so do incentive
policies even down to the city
level. While the cost portion is
certainly very important, its also
what countries are doing at the
local level to make it easier, or
harder, for PV to be competitive
or get ample returns, Barker said.
Local regulations and policies will
be the ones enabling end-market
demand, or hindering it.
Solar entrepreneur, consultant
and Carbon War Room
board member Jigar Shah,
called the antidumping duties
counterproductive. He said: No
matter how these cases are decided,
neither the US nor Europe will get
a boost in local manufacturing.
The Chinese have already started
to ramp down industrial support
(as have Ontario and Germany).
Many Chinese manufacturers
will go out of business, but even
after that we will still have 20 GW-
30 GW of oversupply. Another
country will step in and try to buy
the manufacturing market share
at a very low cost, and the cycle
will repeat itself. If the US and
Germany want to develop local
manufacturing, Shah said, they
have to do more than ask for it and
penalise the Chinese.
On 8 May, as the proposed
duties were announced, the frst
Global Solar Summit opened in
Milan. At the opening session a
debate fared up on the EU-China
trade dispute with speeches by
Rhone Resch of SEIA, Reinhold
Buttgereit of EPIA, Milan Nitzsche
of EU ProSun, Paulette Vander
Schueren of AFASE, and Guangbin
Sun of the Chinese Chamber of
Commerce.
Buttgereit, EPIA general
secretary, said: We cannot
ignore the major trade confict
now underway, but nor can we
overlook the fact that the growth
of renewables will increasingly be
achieved outside Europe, driven by
the Asian economies. The golden
period for solar energy is not over,
but we need rules.
EU ProSun and AFASE took
opposing positions. China is
burning up millions of euros in
Europe and is destroying the
best solar industry sector in the
world due to price dumping, said
Nitzsche, EU ProSun chairman.
But AFASEs Schueren,
countered: We will be risking a fall
of 85% in orders, explaining that
falling prices are solars destiny.
This was also the view of
Guangbin Sun, general secretary
of the solar division of the Chinese
Chamber of Commerce, who said,
If exports from China are impeded,
the consequences will fall on
the costs of European products.
Nevertheless, we are willing to
collaborate and maintain a dialogue
in order to bring our production in
line with market demand.
James Montgomery, additional
reporting Tildy Bayar
EUROPEAN COMMISSION
1305REW_12 12 5/15/13 11:46 AM
When Energy
rises to the
highest power,
its
Europe America Asia Africa
www.ingeteam.com
At Ingeteam, we apply the concept ,
to every project that we undertake -
innovation to nd the best solution and
commitment to provide the best service.
With 20 GW of installed wind power
capacity worldwide, our engineering teams
can provide you with exible solutions for
wind turbines up to 10 MW for onshore
and offshore applications.
The new energy formuIa is
1305REW_13 13 5/15/13 11:46 AM
NEWS ANALYSIS
SOLAR CHP INNOVATIONS
OFFER EFFICIENCY KICK
SOLAR THERMAL HYBRIDS
In late April IBM announced a
new partnership with Airlight
energy, ETH Zurich and Interstate
University of Applied Sciences
Buchs NTV. The group won a
US$2.4 million grant from the Swiss
Commission for Technology and
Innovation to develop a low-cost
high-concentration photovoltaic
thermal (HCPVT) system.
The system uses mirrors to
concentrate the sun 2000 times.
According to Bruno Michel, manager
of advanced thermal packaging at
IBM Research in Zurich, the system
is built on trackers that are made
from low-cost molded concrete for
the lowest base cost possible. A
parabolic dish made from mirrors
is mounted on the tracking system,
which refects the suns rays onto
several microchannel liquid-cooled
receivers that contain hundreds
of triple-junction PV cells, which
amount to 25 kW of capacity.
Beneath the cells, a liquid
composed of antifreeze and
corrosion deterrent is piped mere
centimetres behind the cells to
absorb heat, which is enough to also
drive a water desalination process.
The coolant maintains the cells
at almost the same temperature
for a solar concentration of 2000
times, and can keep them at safe
temperatures up to a concentration
of 5000 times.
We reach a 25% system-level
electrical effciency (and about
30% chip level effciency) with a
PV junction temperature of 100-
105C and a coolant temperature
of 90C, explained Michel. The
overall recovery effciency is 80%-
85%. We lose (less than) 15% in
the primary optics. Losses in the
secondary optics are captured as
heat and contribute to the 50%
heat recovery.
The system also provides
cooling through a thermal-driven
absorption chiller. Absorption
chillers, with water as working fuid,
can replace compression chillers,
which stress electrical grids in hot
climates and contain working fuids
that are harmful to the ozone layer,
said Michel.
Researchers hope this device
will be an all-in-one answer in areas
that are in dire need of low-cost
electricity, heating and cooling,
and water purifcation, such as the
Middle East. According to IBM,
the system could provide 30 to
40 litres of drinkable water per m
2

of receiver area per day, while still
generating 2 kWh of electricity per
day. Thats a little less than half
the amount of water the average
person needs per day according
to the United Nations, but a large
installation could provide enough
water for a town.
The research group believes
that using low-cost materials
for the major base components,
manufacturing the small high-tech
components in Switzerland and
assembling the device in the region
where it will be installed will have
huge benefts.
This leads to a win-win
situation where the system is cost
competitive and jobs are created in
both regions, says Andrea Pedretti,
chief technology offcer at Airlight
Energy. The design of the system
is elegantly simple.
Solar cogeneration produces
both electricity and thermal
energy. Solar photovoltaic (PV)
systems convert the suns rays
into electricity at typically less than
20% effciency, and the heat given
off by the system goes to waste.
Cogeneration captures that heat
and applies it, in this case, to water
purifcation.
These systems boast some
major benefts. During the US east
coasts battering by Superstorm
Sandy, many praised solar energy
systems for weathering the storm
and providing ongoing emergency
power. Unlike other generator
systems that ultimately had a set
amount of power available until
the fuel ran dry, solar was able to
produce power indefnitely (there
were several reports of kind citizens
bringing solar energy to several
communities to provide power for
charging phones, etc).
Emergency situations aside, solar
cogeneration advocates argue that,
on a typical day, renewable systems
will give you the most for your
money. Compared to the volatile
fossil fuel market that accounts for
rising utility costs, solar promises a
stable, clean source of energy for
as long as you own the system.
And according to a recent report
from Pike Research, Residential
Combined Heat and Power,
residential CHP has the ability to
aid aging transmission systems
in many countries where there are
growing numbers of blackouts and
brownouts: its distributed nature
makes the transmission systems
less vulnerable to outages on the
centralised power grid.
NEW INNOVATIONS
One company at the forefront of
the residential and commercial
solar combined heat and power
industry, Cogenra, is now breaking
into the cooling market and recently
announced that it is providing
cooling solutions on an international
scale for Johnson Controls with
their YORK absorption chillers.
Cogenra is frst and foremost
a CPV company, said Mani
Thothadri, senior director. Until
now we have been delivering this
heat as hot water. We would size
ourselves to a customers hot water
load. We are expanding to solar
cooling, so we will be sizing to their
cooling demand, which is usually
pretty massive.
Cogenras system is composed
of silicon PV panels that are
assembled on a single-axis
tracker. Attached to this system is
a parabolic trough with fat mirrors
that concentrate the sun 10 times
to heat up the panels, and a water
chamber that captures the heat.
The newer cooling absorption
chillers integrate into most building
components, according to Gilad
Almogy, CEO and founder of
Cogenra. So instead of just using
about 15%-20% of the suns
energy, Cogenra systems use
about 75% by taking advantage of
the waste heat.
Solar cooling offers a compelling
value proposition for building
owners by reducing both peak time
energy costs and demand charges,
said Almogy.
And, according to Mani, Cogenra
is not stopping there. He says the
company is currently working on
a storage solution to store heat
generated in thermal storage
tanks. This stored energy can then
potentially be utilised for electricity
production during the hours of
darkness or in overcast conditions,
enabling dispatchability,
addressing PV intermittency and
24/7 energy security, he said.
Meg Cichon
The distributed nature of combined heat and power (CHP) systems
makes them less vulnerable to outages on the centralised grid.
COGENRA
1305REW_14 14 5/15/13 11:47 AM
www.cgglobal.com
With over 75 years of experience in the energy sector, CG is an established
manufacturer of three-phase distribution and power transformers, and a strong
competitor in the market of substations, integrated solutions, automation systems
and services. At CG we continually focus on providing smart solutions to our
customers challenges.
Transformers. Switchgear. Substations.
Integrated Solutions. Automation. Engineering Services.
Visit us at CIRED in Stockholm booth E11, at RenewableUK in Manchester booth 253,
at InterSolar EU booth B4.480 and at InterSolar USA in San Francisco booth 8117
1305REW_15 15 5/15/13 11:47 AM
NEWS ANALYSIS
FEARS GROW OVER FUTURE
OF EU EMISSIONS TRADING
CARBON TRADING
Prices for carbon credits under
the European Unions Emissions
Trading Scheme (EU ETS) recently
plunged to new depths and to less
than a tenth of their peak valuation
of 30/tonne, seen in the heady
distant days of spring 2006.
The cause: a vote by the
European Parliament to reject
proposals on shoring-up the price
by means of holding back some
900 million tonnes of allowances
until later. In Europe the industrial
energy demand slump has brought
with it a glut of credits, and the
so-called backloading proposals
would have seen allowances from
2013-2015 postponed until the
2019-2020 period.
Rejecting the proposals by a
narrow margin of 334-315, the
European Parliament stopped sort
of fatly rejecting the plans, instead
referring them back to the lead ENVI
Committee for reconsideration.
Indeed, offcially, the European
Parliament still does not yet have a
position on the proposals.
Responding to the vote,
European Commissioner for
Climate Action, Connie Hedegaard,
commented: The Commission of
course regrets that the European
Parliament has not approved the
back-loading proposal. However,
it is worth noting than when it
was suggested in the second
vote that the Parliament fnalised
its rejection right away, this was
not supported. The proposal will
now go back to the Parliaments
Environment Committee for further
consideration. Europe needs a
robust carbon market to meet our
climate targets and spur innovation.
The Commission remains convinced
that back-loading would help restore
confdence in the EU ETS in the
short term until we decide on more
structural measures. We will now
refect on the next steps to ensure
that Europe has strong EU ETS.
Naturally enough, the renewables
industry reacted with consternation.
For example, Rmi Gruet, Senior
Climate Advisor of the European
Wind Energy Association (EWEA),
said of the vote: This makes the
ETS irrelevant in Europes bid to
reduce the use of fossil fuels. The
carbon price will continue having
no impact on investment decisions
in the power sector.
Electricity industry trade
group Eurelectric described the
development as a dangerous set-
back for the internal energy market
and for EU carbon goals. They
further warned that only urgent
action by the Commission to put
forward structural proposals on
ETS can now stop Member States
from each legislating their own
alternative policies: 27 different
carbon foor prices, coal taxes,
carbon taxes.
THE CONSTANT FLOW OF HEAT AND POWER
GENERATES A CONSTANT SOURCE OF PROFITS.
1305REW_16 16 5/15/13 11:47 AM
NEWS ANALYSIS
With uncertainty over future
climate and energy policy
frameworks already all but stalling
market-based investments in
Europe, the consensus option
appears to be that the rejection of
backloading inevitably increases
this uncertainty signifcantly.
More signifcant are perhaps the
wider implications for the future
of carbon trading. In a major step
towards the frst full inter-continental
linking of emission trading systems,
the European Commission and
Australia have agreed that the EU
ETS and the Australian emissions
trading scheme should be fully
linked by mid-2018. There will be
an interim link from 1 July 2015,
allowing Australian businesses to
use EU allowances to help cover
their emissions under the Australian
scheme.
The crisis within the EU ETS
scheme, which covers some 11,000
sites, suggests that any link would
have dire repercussions for clean
energy development.
Australian Federal Treasurer
Wayne Swan has reportedly moved
to calm these fears, apparently
saying its a folly to draw
conclusions about the Australian
carbon price in years to come from
a European spot market price. The
Australian Treasury is forecasting
a carbon price of A$29 (22.2) a
tonne in 2015.
However, energy and carbon
advisory frm, RepuTex forecasts
that Australias carbon price will
fall dramatically as a result of the
tumbling EU ETS prices.
Executive Director, Hugh
Grossman said: The failed vote
in the EU ETS will fow through to
the Australian market straight away
when trading commences. We have
seen price expectations in Australia
drop from an average of A$14 (11)
for fnancial year 2016 through 2020
should the EU vote have passed,
back to an average of A$2.70 (2)
now that reform has failed.
RepuTex notes that prices
may fall even lower as Australian
companies look to cheap
international markets to offset their
domestic obligations at very low
cost. In year one we are likely to
see Australian companies swoop
on cheap international offsets,
meaning that the local carbon price
could fall as low as A$1.30 (1) until
demand for domestic units catches
up to the regulated supply.
From that point we expect
the European price will drive the
Australian market, however with
slightly lower Australian emissions
being forecast, that demand may
not be as strong as the market
previously expected, which will
keep prices low initially.
Nonetheless, longer term
structural reforms remain possible
in Europe, which may fow through
to Australia later, Grossman
believes: We have never viewed
the recent EU backloading proposal
as anything more than a temporary
fx it was always designed to be a
stepping stone to broader structural
reform in the EU ETS.
Now that the temporary solution
has failed, all eyes turn to the EU
Commission as it looks to lock
down a new emissions reduction
target through to 2030. Should
agreement be reached before 2015
as was determined in Durban we
would see European carbon prices
recover, and that recovery would
fow though to Australia, however
we would not expect prices to rise
in the near term.
In an open letter, ministers from
nine European member states, have
set out the actions they want to see
from the European Commission
this year to reform Europes ailing
carbon trading initiative.
Backed by the environment and
energy ministers from Denmark,
Finland, France, Germany, the
Netherlands, Portugal, Sweden,
Slovenia, and the UK, the joint
statement calls for a resolution
to the backloading proposals by
July this year at the latest and
for the European Commission to
produce a legislative proposal to
deliver proper structural reform
to the EU ETS by the end of this
year.
The document says they remain
deeply concerned that the ETS
as currently designed cannot
provide the price signals needed to
stimulate the low carbon investment
needed now because the supply of
allowances substantially outstrips
demand, leading to a very low
carbon price. This also threatens
the credibility of carbon markets.
As if to heap yet more pressure
on Brussels, measurements
from a US National Oceanic and
Atmospheric Administration (Noaa)
site on the Mauna Loa volcano in
Hawaii have recorded atmospheric
carbon dioxide concentrations of
more than 400 ppm, widely seen as
a symbolic threshold.
As REW goes to press,
discussions are due between
national governments and the EC
on backloading plans.
David Appleyard
1305REW_17 17 5/15/13 11:47 AM

1305REW_18 18 5/15/13 11:47 AM
THE DEAL
I
n late April, concentrated photovoltaic (CPV) manufacturer and
solar project developer Soitec announced that it had fnalised
a bond that will be used to fnance a portion of its 44 MWp
CPV plant in Touwsrivier, South Africa. The bond, worth some
ZAR1 billion (approximately US$85 million) is the frst publicly-listed
project development bond ever issued to fnance a CPV solar power
plant, and only the third bond issued to fnance any type of solar
installation worldwide.
Issuing a bond that will list on the bond market allows institutional
investors like pension fund managers or asset managers to invest in
it and potentially receive a stable return over a fxed period of time.
THE PLAYERS
Solar projects are typically fnanced through a mix of debt and equity.
Debt investors get their money back plus interest, and equity investors
get a share of the project and make money through any proft that
the project generates. Equity investors in some countries can also
take advantage of tax credits or other fnancial incentives offered by
governments that support renewable energy development. For this
deal, said Gaetan Borgers, executive vice president of Soitecs solar
division, the company issued the bond to cover the debt portion of
the project and partners have already been identifed to fnance the
equity portion.
This was Soitec Solars frst foray into the project fnance bond
market. We decided to try a bond because we thought it would
The frst use of a bond to fnance a solar project marks
many frsts for the solar industry and could prove to be a
new model for project fnancing in the near future, fnds
Jennifer Runyon.
COULD UTILITY-
SCALE SOLAR
FINANCING WITH
BONDS BE THE
NEW NORMAL?
Soitecs pilot facility in the Aquila Private Game Reserve on the
Western Cape. The pilot plant is next to the future Touwsrivier
power plant. SOITEC
TheDEAL
enable us to spread the investment on a larger pool of investors,
said Borgers of the decision to use a bond to cover the debt.
Borgers explained that Soitec worked with a number of partners
when developing and issuing the bond. Three banks Trident
Capital, Deloitte & Touche, and Standard Bank of South Africa
served as advisors for developing the bond, and in December 2012
the bond received a favourable rating from Moodys, indicating that
it was investment grade and effectively giving it the green light to
enter the bond market. Then, in the spring of 2013, Standard Bank
of South Africa formally issued the bond, and Deloitte and Trident
marketed it to investment houses and money managers in hope of
convincing them to invest, said Borgers. The bonds were placed
with a diverse pool of South African institutional investors, pension
funds and asset managers, said Kimon Boyiatjis, chief investment
offcer at Trident in a statement. Soitecs role in the process was to
answer questions about the project itself. Today the bond is listed on
the Johannesburg Stock Exchange and is fully subscribed.
THE PROJECT
The 44 MWp Touwsrivier project will be located on South Africas
Western Cape. Borgers said site preparation has begun for the
project fencing and ground preparation for now and some
modules and systems have already been shipped to the site. Soitec
will source the 1500 modules that the project will require from both
its German and US manufacturing centres. Borgers said the frst
modules should be in the feld by June of this year. Group Five is the
EPC partner on the project.
The project is being developed under South Africas Renewable
Energy Independent Power Producer (REIPP) programme, which
seeks to assist developers in bringing some 3725 MW of new
renewable energy capacity to South Africa to meet the governments
target of generating 10,000 GWh of electricity with renewable energy
resources annually.
The Touwsrivier project has a signed 20-year power purchase
agreement (PPA) with Eskom, South Africas state-owned energy
utility. Under the terms of the REIPP, the PPA will be supported by
the South African Department of Energy in the event that Eskom
does not meet the terms of the PPA.
Scheduled for completion by June 2014, Touwsrivier will be the
largest CPV plant in the western world once fnished.
1305REW_19 19 5/15/13 11:48 AM
2013 Highlights:
Review the last 10 years of industry
growth to successfully determine
the future of renewable energy
over the next 10 years
Interact with the prime
players of Americas renewable
energy industry Unrivalled
networking opportunities throughout
the event
Take advantage of the greater
emphasis on integrating
resources - 5ecure Bnancing
to ensure renewable energy
projects can connect to the
grid and operate efBciently
Hear from:
Schulyer "Skip" Grow
Managing Director
Head of Clean Technology
Group, Morgan
Stanley & Co
Brian Bolster
Managing Director,
Goldman Sachs
Nancy Floyd
Managing Director,
Nth Power
Richard L. Kauffman
Chairman of Energy and
Flnance, O|ce o| tbe
Governor, The State
of New York
Julie Felgar
Managing Director,
Environment and Aviation
Policy, The Boeing
Company
Co-Organizers
Platinum Sponsor
renewable energy nance forum
10th anniversary
June 25-26, 2013
The Waldorf=Astoria, New York City
www.reffwallstreet.com
+1 212 901 3828 energyevents@euromoneyplc.com
Silver Sponsors
Bronze Sponsors
Gold Sponsor
Register by May 10, 2013
& SAVE $200
1305REW_20 20 5/15/13 11:48 AM
THE DEAL
THE SIGNIFICANCE
Soitecs bond, issued by CPV Power Plant No1 Bond SPV (RF) Ltd,
an affliate of Soitec Solar GmbH, marks many frsts for the solar
industry and could prove to be a new model for project fnancing in
the near future. It is the frst use of a bond for a CPV project, the frst
use of a bond to fnance a solar project in South Africa, the frst use
of a bond for project fnance by Soitec Solar Gmbh. It is also only
the third time a bond has ever been used to fnance any solar project
worldwide.
The new fnancing mechanism couldnt have come soon
enough. The solar power plant market is the fastest growing market
segment in the PV industry, said Borgers, and since traditional
project fnancing relies on just one or two banks, Borgers believes
that, until now, market growth has been limited. Solar bonds for this
type of development, particularly in areas of high irradiance, make
good fnancial sense. If you look at a PV power plant or a CPV power
plant, especially in countries that enjoy a large amount of sun, the
cash fow projections are extremely predictable, explained Borgers.
So we think that this is perfectly aligned to the requirements to have
a successful bond, he said.
With predicable cash fows and booming global solar
development, Borgers said he really isnt sure why more solar
projects are not already being funded this way. He surmises that
investors probably just need to get more familiar with solar projects.
Once they understand that [solar farms] are perfectly reliable power
plants, there is no reason that a bond could not be used, he said.
We think that it actually opens a large amount of capital and so it is
a very attractive thing as we move forward.
Ompi Aphane, deputy director for general energy policy
and planning for South Africas Department of Energy, is thrilled
that Soitec was successful in using the bond market for project
development. It opens an entirely new feld of project funding to the
solar industry in South Africa, he said in a statement. We hope that
this will contribute to the creation of a new pool of fnancial resources
that can support the South African governments ambitious plans for
renewable energy.
THE OPPORTUNITY
Beyond South Africa, anywhere there is an active bond market
and a strong solar resource, solar project fnancing with bonds is
a viable path, said Borgers. He mentioned the US and Europe as
good candidates for this type of transaction and stated that other
institutions are keen to work with Soitec on a similar model. Since
we released our announcement we have been approached by other
banks that have said, Well, why dont you try to do that [issue a
bond] for another project with us, he said. And so I think that its
going to catch the attention of the fnancial market.
Financial instruments that bring more capital to the solar market
are exactly what the industry needs. With module prices at record
lows, developers are actively seeking capital to execute new solar
projects in regions all over the world. Issuing bonds like Soitecs to
cover a portion of the project could be a good way to get more
money into the sector, and institutions across the world are starting
to take note.
For example, in the UK, Foresight Group recently announced that
it had issued a 60 million ($93 million) solar bond, which has been
used to refnance its existing portfolio of solar assets located in Kent,
Somerset and Wiltshire. This is the largest solar bond to date in the
UK and is a further endorsement of the low-risk profle of operating
solar power plants, according to Foresight Group. The company
said it plans to deploy another 250 million ($387 million) into new
large-scale ground-mounted solar projects in the UK over the next
year. We are fnding a growing appetite from both institutional and
retail investors who see solar power as a maturing asset class with
an attractive risk profle, said Ricardo Pineiro, investment manager
at Foresight.
Warren Buffets MidAmerican Energy Holdings issued its frst
utility-scale solar project bond in March 2012 to help fnance the
550 MW Topaz Solar Farm in San Luis Obispo County, California.
MidAmerican Energy Holdings initially issued bonds worth
$700 million, then upped them to $850 million once they proved
popular. One month later the holding company announced plans
to issue another bond because the frst one was oversubscribed
by $400 million. The bonds, which will reach maturity in September
2039, will yield a 5.75% return rate.
THE RISKS
Soitecs solar bond has an 11% fxed return and reaches maturity in
2029. Moodys gave the Soitec bond a rating of Baa2.za. According
to Tom McKelvey, a retired money manager who worked for UBS
managing large corporate US pension funds and sovereign Middle
Eastern funds, Baa2 is just above a C rating, with C being junk.
Its a low rating but its still considered investable, he said. Its
also important to note that ratings differ from market to market, so
comparing a rating designed for the Johannesburg stock market
with one designed for the US market isnt apples to apples.
According to McKelvey, high-yield bonds are inviting to money
managers because of the potential returns they offer. But he
cautioned that Soitecs 11% return and Baa2.za rating indicates that,
while attractive, it defnitely comes with some risk. In this day and
age, when interest rates are so low, money managers would be very
interested in a bond offering an 11% return, he said. But the risks
are real. Soitecs CPV technology has never been used in a project
as big as this. And the company could always go out of business,
McKelvey said or the equipment could fail, O&M costs could be
greater than anticipated, or any number of other unforeseen issues
could arise, which means an investment in the Soitec bond is one
that McKelvey would call speculative.
Depending on the type of fund that a money manager is running,
said McKelvey, she or he might buy enough Soitec bonds to make
up to 3% of the total holding. If it was well-known to be a speculative
fund, I might go as high as 5%, he added. I would probably take a
chance that it might make it, he concluded.
As the solar industry continues to mature and investors become
more comfortable with solar power projects, expect to see greater
use of solar bonds for project development in 2013 and beyond.
Jennifer Runyon is Managing Editor of
RenewableEnergyWorld.com.
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
1305REW_21 21 5/15/13 11:48 AM
The European Commission is debating interim climate
and renewables targets
EU OBSERVER
How should Europe structure
energy policy for 2030?
Efforts must be especially made in creating certainty for
investors, reducing the administrative burden and increasing
clarity in planning, said the European Commission in opening its
consultation on a European climate and energy framework for
2030. How should such a framework be structured to address your
sectors current concerns, and which concerns are most important
for promoting your sectors future development?
To add your voice to the discussion, visit www.RenewableEnergyWorld.com.
T
H
E
B
IG

Q
U
E
S
T
IO
N
When it comes to discussing
future European energy
policy frameworks, the City of
London has a canny ability of
switching off. The systems too
bureaucratic, theyll argue, and
theres limited scope to exert
real infuence.
And for that reason, many
of those within the square mile
will focus instead on more
immediate opportunities.
Only the thing is, now that
the renewable energy market
is beginning to fnd its feet, its
this early stage opportunistic
attitude that is changing.
As the markets look for
greater stability and more long-
term growth, its inevitable that
in order to achieve these new
levels of industry assurance,
certainty from government
policy must be encouraged.
Any future European policy
framework must provide clear,
transparent targets, backed by
clear and transparent economic
support. Policies need to be set
early, promoted and reinforced
on a country-by-country
basis and carefully managed
throughout the lifecycle of the
economic incentive.
Whats more, and with a
market like offshore wind in
particular, its worth considering
a longer term shift away from
specifc steadfast calendar
timeframes and instead towards
wider measurements and
parameters that evaluate policy
success based either in pure
capacity terms or alternatively,
pegged against individual
country targets, market
percentages and sector goals.
Whatever the case, as the
new framework takes shape, its
imperative that a close working
relationship is established early
on between policy makers,
developers, investors and
fnanciers, in order to ensure
that all interests are aligned.
Setting policy in Brussels is one
thing. Constructing, operating
and safeguarding renewable
energy assets for the long-term
is quite another.
FRASER MCLACHLAN, CHIEF EXECUTIVE, GCUBE INSURANCE
THE BIG QUESTION
1305REW_22 22 5/15/13 11:48 AM
1305REW_23 23 5/15/13 11:48 AM
THE BIG QUESTION
According to the Heat Coalition,
of which ESTIF is a member and
which is a platform gathering 11
European associations with a
stake in the heating and cooling
sector, the forthcoming climate
and energy policy framework
must adequately address the
future role of the heating and
cooling sector, as it accounts
for no less than 45% of the fnal
energy consumption in Europe
today.
Unfortunately, the stance
taken on heating and cooling
in the Green Paper confrms
the recent conclusion from
the IEA Energy Technology
Perspectives publication,
arguing that 'heating and
cooling remain neglected areas
of energy policy and technology,
but their decarbonisation is a
fundamental element towards
a low carbon economy. With
virtually no mention of this
sector or any reference to the
challenges it faces, the Green
Paper fails to consider the
relevant issues.
However, the Heat Coalition
strongly believes that this is
the right time to develop a
comprehensive European
approach for heating and
cooling towards making
energy more affordable and
keeping European businesses
competitive, as requested by
both the European Parliament
and the Council.
Recently, the European
Parliament responded to the
European Commissions Energy
Roadmap 2050 by calling on
the Commission to consider the
'full integration of the heating
and cooling sector into the
transformation of the energy
system; stressing that 'readily
available renewable energy
solutions (geothermal, biomass
including biodegradable waste,
solar thermal and hydro/
aerothermal), in combination
with energy effciency
measures, have the potential to
decarbonise the heat demand
by 2050 in a more cost-effective
way, while addressing the
problem of energy poverty.
Moreover, the Councils
conclusions on the renewable
energy Communication, agreed
last December, stated that
'more attention should be paid
to the widely untapped potential
of renewables in the heating and
cooling sector'.
Given these clear signals
from both the European
Parliament and the Council,
the heating and cooling sector
should be considered as a
crucial pillar supporting the
2030 framework.
Today, the Heat Coalition
calls on the European
Commission to put forward a
comprehensive strategy, which
must include improved statistics
and data collection process, to
promote innovative renewable
energy sources and energy
effcient solutions throughout
the entire renewable energy
supply chain.
XAVIER NOYON, SECRETARY GENERAL, EUROPEAN SOLAR THERMAL ENERGY FEDERATION
GASOKOL/ESTIF
Revised and updated edition of this bestselling guide
3
RD
EDITION
Planning and Installing Photovoltaic Systems
A Guide for Installers, Architects and Engineers
New third edition of the bestselling manual, showing you the
essential steps to plan and install a solar photovoltaic system.
With a global focus, it has been updated to include sections on
new technology and concepts, new legislation and the current PV
market and now has a hardback spiro binding.
Updates cover:
new developments in inverter and module technology
market situation worldwide and outlook
integration to the grid (voltage stabilization, frequency, remote
control)
new legal requirements for installation and planning
operational costs for dismantling and recycling
feed-in management
new requirements for re protection
new requirements in Europe for electric waste (Waste Electrical
and Electronic Equipment, WEEE) and the restriction of the use
of certain hazardous substances (RoHS).
May 2013: 544pp
Pb. 978-!-8497!-343-6 e8ook. 978-!-84977-699-8
120.00 // $195.00
Now with a web resource which
includes:
caIcuIaIions
charIs
checkIisIs
cIimaIic daIa generaIion
furIher Iinks and resources.
www.routledge.com/u/m-pipvs
Launching at
Intersolar Europe -
Stand B6.418
1305REW_24 24 5/15/13 11:48 AM
BIG QUESTION
Harvesting solar energy with
SolarMax!
What makes solar power plant operators as happy as far-
mers? Quite plainly: maximum results day in and day out.
With the powerful SolarMax inverters you can easily create
the best prerequisites for maximum energy yields.
SolarMax stood for top-class Swiss quality for more than
20 years: outstanding materials and workmanship, absolute
reliability, effciency, and durability. Furthermore, we offer our
customers extensive warranty coverage and excellent advice
combined with intelligent solutions for plant monitoring.
Come follow us to the sunny side plant SolarMax inverters
into your solar power plant.
M
a
x
im
ise

your yield
www.solarmax.com
Hall B4 I Booth 110
One of Germanys most-debated subjects
right now is the rising cost of its Energiewende
policy, which aims to enable the country to
decommission its nuclear generation capacity.
Furthermore, the policy is designed to allow
generation from renewable energy sources to
take an 80% share of Germanys total electricity
consumption from renewables by 2050
(currently about 23%).
The cost of the new infrastructure has proved
unpalatable to most, however, with debate rife as
to how best to structure this cost in the wake of
the global economic downturn, and particularly
how to spare the consumers from shouldering
this cost directly. Germanys government has
set up several incentive programmes in key
sectors to encourage private direct investment
and/or research in certain sectors incentives
including low-interest loans, employee benefts
and government grants. As a result, although
the debates rage on, Germanys Energiewende
is progressing extremely well.
One of the by-products of all this has been
that Germany last year exported more energy
than ever before. This was not only because of
the increased production, but also because of
the current grids comparative infexibility when
it comes to either absorbing the energy exactly
where it is produced, or in storing the seasonal
highs in energy production from the different
renewable sources. Thus most of the incentives
now are for companies to help come up with
smarter grids and energy storage systems.
The more smart grids and energy storage
capacity systems grow, the more theoretically
transnational co-operation and liberalisation
in this subject has to improve, as a fully-
integrated, pan-European smart grid becomes
more and more possible. Much is already being
done here. Grid control co-operation is already
underway in Germany, Denmark, Belgium,
TOBIAS ROTHACHER, SENIOR MANAGER RENEWABLE ENERGIES, GERMANY TRADE AND
INVEST
GTAI/AMPRION
Holland, Switzerland and the Czech
Republic, while Austria and Poland are
making preparatory work to also join this
cooperative transmission initiative.
There needs to be emphasis now on
integration of renewable energy into the
grids, including data exchanges and pro-
actively examining how grids would deal
with future renewable energy volume
increases rather than reactively.
Work also needs to be done on
ensuring that the benefts of network
extension are seen to be acceptable
at their cost, both socially and publicly,
especially in an environment/structure of
more decentralised energy producers.
1305REW_25 25 5/15/13 11:48 AM
WIND: POLICY & MARKETS
In the old days armed gangsters threatened you with violence or worse if you didnt do their bidding. But in the
modern world mobsters brandish environmental impact assessments or power point presentations with balance
sheets and projected revenues and things become far less straightforward, fnds Rachana Raizada.
TACKLING ORGANISED CRIME
IN A BID TO SECURE INVESTOR
CONFIDENCE IN WIND
T
his April, the Direzione Investigativa Antimafa (DIA) of Palermo
announced it had completed the confscation of assets (a
record 1.3 billion) belonging to Vito Nicastri, an entrepreneurial
plenipotentiary based in the western province of Trapani, and
known in Sicily as King of the Wind. His wind farm development
empire sold plants on a turnkey basis at a going rate of around 2
million/MW capacity. Crime and corruption crept in at several levels:
applications for public grant funding through different legal entities
so as to get multiple grants; acquiring land concessions; acquiring
operating permits and authorisations from various government
bureaucracies; contracts for public tenders; and procuring
infrastructure construction services from mafa-certifed suppliers.
Anticipation of generous government incentives once the projects
were in operation fuelled demand for Nicastris services. A web spun
so widely and fnely that it even netted legitimate renewable energy
players which had no idea until it was too late.
CORRUPTION HIT
AS ITALY CLEANS
UP WIND SECTOR
1305REW_26 26 5/15/13 11:48 AM
In September 2010, Denmarks Greentech Energy Systems
received a shock when 15% of its share capital in a project
company, Minerva Messina (a 48.3 MW wind project in Sicily), was
seized by the Italian authorities although it hadnt received state
grants and had been fnanced with Greentech equity and project
fnancing. Nicastri had developed the project, 85% of which came
into Greentechs possession in 2007 with its purchase of a Danish
company Vind Energi Invest. A Nicastri-controlled company held
15% until Greentech bought the minority share in May 2010. Another
Nicastri company, Eolo Costruzioni, was a subcontractor to Siemens
during construction.
But for local Sicilian companies attempting their own
development, the situation was more obvious. Over fve years ago,
Salvatore Moncada, the CEO of Moncada Energy Group visited
diverse public entities to understand why his applications for wind
The web of corruption in the Sicilian wind sector even netted
legitimate renewable energy players, some of which had no
idea until it was too late
ISTOCK
farm permits were stalled. I understood I should do something
incorrect, says Moncada, who subsequently went to a meeting
in a bar in Castelvetrano, Trapani where an associate of Nicastris
suggested that 70,000 could get seven applications approved.
I felt the obligation to denounce it to the authorities, remembers
Moncada, adding that he also denounced a director in the Sicilian
government who tried to sell him a wind project. Moncadas
complaints contributed to a series of investigations on Nicastri by
the DIA specifc to wind energy:
Eolo (2009): this operation established the presence of mafa
involvement in wind energy. Nicastri was subjected to preventive
measures when one of his wind farm development companies
was found to be linked to a mafa family.
Via col vento (10/11/2009): Nicastri and three others were found
to have benefted from public funds for wind farm development
using false land claims and statements of credit availability.
Vento del sud (14/09/2010): suspected of intercepting public
funds for energy development, Nicastris assets (1.5 billion)
were sequestered;
Broken Wings (July 2012): Nicastri was arrested in this operation.
Ironically the Moncada family construction business, founded
in 1991, had decided after twenty years to turn to something
greener and cleaner as the Italian electricity market was
liberalised. It was one of the most polluted sectors, says
Moncada with reference to construction (not in the environmental
sense). We decided to abandon it and enter renewable energy,
which at that time had received little attention either from the
mafa or the Sicilian government.
Having as little contact as possible with the government was
a major attraction for Moncada, who estimates that over half of all
business activities in Sicily require something from the government.
The laws are transparent but the processes through which they are
applied are not. You need to know someone who will move your
application forward or it will remain blocked, he says.
Initially it was smooth sailing with the frst wind farm entering
production in 2005. A prototype of a 750 kW turbine with direct
drive technology designed and constructed by a Moncada group
company was tested at the plant in anticipation of a future turbine
manufacturing facility. Four more wind farms entered operation
in 2007, all in the southern province of Agrigento. The regional
government of Sicily hadnt yet understood the value of these
projects. They saw me as a dreamer. But when they saw wind was a
proftable business, they began to put up walls. There was no need
for a limit but by blocking permits, they could increase the value of
the projects, explains Moncada.
Moncadas main concern with taking his complaint to the police
was his familys safety. As an entrepreneur you expect to take risks,
but normally those risks dont involve living under police protection,
he notes. Moncada had already experienced this between 2005 and
2007 for a previous denouncement made to the police related to his
construction business. After a quiet period of living mostly at home
he became one the few to voluntarily eschew it after only a year and
a half and request its removal. Some see a police escort as a status
symbol and even go to the cinema, but its a huge cost to the state.
Nicastris role as a wind plant developer was a lateral career
move following a stint in photovoltaics in the early 1990s. In 1994,
1305REW_27 27 5/15/13 11:48 AM
Nicastri testifed to collecting three billion lire in bribes for delivery to
a councillor in the Sicilian government to fnance election activities.
The proceedings revealed a corrupt system underlying public grant
funding for PV installations. Nicastri received a lenient, suspended
sentence but the cost to the treasury was estimated at 30 billion lire.
Structural Funds programmes under the EUs Cohesion Policy
contribute to the confuence of factors that have made renewable
energy in southern Italy a magnet for criminal attention: impoverished
regions with a historical presence of organised crime and a large
pot of public funds for development of the souths abundant wind
and solar resources. Italy is second only to Poland and Spain as a
benefciary of EU Cohesion Policies which aim to reduce regional
imbalances within member states. It received 28.8 billion in EU
funds for 20072013; an additional 95 billion was contributed by
the Italian government.
A specifc share is for energy investments: the Renewable Energy
and Energy Effciency Operational Programme for Apulia, Campania,
Calabria and Sicily has a total budget of around 1.6 billion. A 2011
report on organised crime by the EU Directorate General for Internal
Policies acknowledges the misuse of EU structural funds in Italys
wind sector. The disbursement process for funds under the old law
n.488/92 was regarded as fundamentally fawed in that it dispersed
authority among regional authorities and private fnancial institutions.
The DIA in its 2nd Semester Report for 2010 identifes this law as a
major factor in allowing criminal infltration.
The DIAs recent asset confscation, authorised after courtroom
hearings in the Tribunal of Trapani followed the DIAs 2010 seizure
of these assets as a preventive measure (i.e., before a trial) under
Italys revamped anti-mafa laws. The assets included 43 companies
(or partial holdings), 98 real estate properties, vehicles, a luxury
catamaran, and 66 fnancial accounts (banks deposits, insurance
policies etc.). By reconstructing Nicastris asset holdings over thirty
years, a signifcant gap emerged between assets owned and income
declared. These operations (investigations, inspections, monitoring,
analysis, technical and other activities) require many months of work,
states Colonel Giuseppe Dagata, Head of the DIAs Palermo Centre.
The diffculties are in reconstructing the assets of those involved and
their relationships, whether personal or fnancial, especially since the
economic relationships, in the case of Nicastri, extended outside
Italian borders (Spain, Belgium, Luxembourg, Denmark, Malta).
DIA investigations unrelated to renewable energy (Abele and
Cadice) had established that Nicastri was under Mafa protection
and documented fnancial relations between Nicastri and mafa. His
importance in mafa circles was confrmed by the pizzini (notes used
for mafa communication) found at the arrest of two noted bosses.
An effective networker, Nicastris relationships apparently extended
across the island to criminal cliques in Eastern Sicily and across
the Strait of Messina to the Calabrese Ndrangheta.
The DIAs 2009 Eolo operation concluded that the mafa subsidiary
known as Cosa Nostra intervened with its representatives to
promote agreement among wind power entrepreneurs in Trapani so
as to avoid internal competition and secure control of manufacturing
related to wind plant construction. Nicastri wasnt charged but was
allegedly implicated in the network of interests revolving around wind
energy. This is described as a systematic dynamic among public
administration (elected offcials and government functionaries), the
mafa and entrepreneurs. This paradigm was apparently replicated
across Sicily. Nicastris case received the most international publicity
but is only one amongst several high profle cases involving organised
crime in the sector.
A 500 page document issued by the Tribunal of Palermo provides
transcripts of intercepted conversations relating to transactions
among entrepreneurs and government functionaries in the windy
municipality of Mazaro del Vallo, Trapani. The document summarises
the complexity of processes for wind farm authorisation. The
application process which should in theory be unifed may require
as many as 13 different permits ranging from environmental impact
assessments to seismic clearances, and clearances from the armed
forces for airspace security. In this backdrop to Eolo, Nicastri enters
the scene in 2006 when his company, Eolica del Vallo, synergistically
consolidated its position in Trapani by acquiring control of projects of
Sud Wind and ENERPRO: the former had acquired land rights, while
the latter had acquired the necessary permits.
The DIAs aggressiveness in clamping down on organised crime
is widely lauded but investor confdence is far from being restored.
An industry insider who has observed investment funds shying away
from Italy believes the country risk is just too high when the political
instability and the reduced incentive schemes announced in 2012 are
added in. Both Moncada and Greentech appear to share this view,
given that neither companys expansion plans prioritise Italy, despite
a large untapped potential. While Sicily does lead Italy in wind energy
production (2.4 TWh in 2011), solar electricity production data might
lead one to believe that 3rd placed Lombardy (almost 1 TWh) with its
dense, smoggy, grey skies is a sunnier place than 7th placed Sicily.
The mafa allegations and potential for random asset seizures hasnt
helped companies wanting to sell their wind farms in Sicily arent
fnding buyers.
Greentech successfully recovered its seized Minerva assets in
2011 without any economic impact on the company. Following the
seizure, Sigieri Diaz della Vittoria Pallavicini stepped in as Greentechs
new CEO and successfully effected a cleanup operation not just on
Minerva Messina but also a Sardinian project that faced unexpected
setbacks in 2011. Construction of Greentechs Cagliari II wind farm
was halted by authorities for pre-emptive reasons due to alleged
irregularities committed during project development between 2003
and 2008. The assets were released in 2012.
We have solved 100% of the old problems with Greentech, says
Sicilian wind farm. REUTERS
1305REW_28 28 5/15/13 11:48 AM
AWEA
EDUCATIONAL
SERIES
GENERATING POWER
WITH KNOWLEDGE
Scan this code with your
smartphone to learn more!
www.awea.org/events
Scan this code with your
smartphone to learn more!
SAVE
THE
DATE!
Learn strategies for succeeding in the emerging North American
Offshore Wind market, and nd investment opportunities for
diversifying and growing your business.
A New Revolution
for U.S. Wind Energy
WINDPOWER
2013 Conference & Exhibition

May 5 8, 2013 Chicago, IL
AWEA Wind Power on Capitol Hill
July 9 10, 2013 Washington, DC
AWEA Finance and Investment Seminar
September 9 10, 2013 New York City, NY
AWEA Ohio Wind Energy Summit
September 24, 2013 Columbus, OH
AWEA OFFSHORE WINDPOWER
Conference & Exhibition
October 22 23, 2013 Providence, RI
AWEA Wind Energy Fall Symposium
November 6 8, 2013 Colorado Springs, CO
AWEA Wind Resource & Project Energy
Assessment Seminar
December 10 11, 2013 Las Vegas, NV
1305REW_29 29 5/15/13 11:48 AM
Diaz Pallavicini. Having already founded a wealth management frm,
he expanded into renewable energy in 2009 with the establishment of
GWM Renewable Energy. Its shareholders now include Rottapharm
Madaus, the Pirelli Group and Intesa Sanpaolo. GWM (RE) took a
major stake in Greentech in September 2010 and merged with it a
year later.
Refecting on the Minerva Messina project, Pallavicini says
that 90% of its problems were administrative or technical (getting
disconnected from the grid). Before he came on board, the
subcontractor had infated the price for the Messina project from
9 million to 23 million. These poor guys were going bankrupt and
just wanted to fnish the project 21 towers of 2.3 MW each, spread
out over 40 km and three communities in the middle of nowhere
in the Messina mountains. We had to make a payment out of the
project fnancing. The assets were seized on the grounds that the
prosecution thought it was an agreement to pay, but Greentech
was being blackmailed. We opened our books for the DIA and the
ex-CEO went to Trapani to testify in front of the court. This was
very effective and enabled the prosecution to bring another charge
against Nicastri.
Now Greentechs sights are set high with 1 GW of renewable
energy capacity planned for 2014. Today we are cash rich and have
strong shareholders. We aim to be a leading player in the IPP space,
affrms Diaz Pallavicini. But zero % of this new capacity will be in Italy,
not because were scared of Italy, but because we want to diversify,
he adds. Pallavicini isnt surprised by the reduction in incentives,
they were too high and there has been a correction. A real energy
policy has been missing for 20 years. We were one of the last to
introduce incentives. Greentech is currently focusing on Poland and
the US but is also considering Mexico, Turkey and Romani.
So are winds of change fnally blowing? Last October, Beppe
Grillos 5 Star Movements clean slate won the most votes of any
single party in Sicilys regional elections, but parallel to the current
national situation, does not form part of the regional cabinet.
Nationally, Berlusconis return from the political grave despite
impending charges and the subsequent award of the Ministry of
Interior to his party is a move seen by critics as a gross confict of
interest.
Absolutely nothing has changed, says Moncada. Ive asked
for a reimbursement of the almost 1 million paid in application fees
for the approval of 600 MW. The wind projects were presented in
2006 and are still not approved. If the administration releases most
of the permits to one person and very few to others, the problem
is elsewhere, it isnt Nicastri. Italian journalists want to interview
you if you denounce the mafa but if you denounce the regional
administration, its a different story. The change in government hasnt
done much the same old bureaucrats remain. Really, there are two
types of mafa, the old mafa and the new white-collar mafa who
wouldnt exist without the collaboration of the public administration.
He concludes: Uncertainty leaves space for the delinquents.
Rachana Raizada is a freelance journalist focusing on the
energy sector.
Assets have been successfully recovered without any economic impact on the companies concerned. GREENWHICH ENERGY SYSTEMS
1305REW_30 30 5/15/13 11:48 AM
Driveline and Chassis Technology
Together we catch more wind.
There is no denying it: todays market is facing a lot of headwind. Yet as a solid, global and independent
company with a strong track record, we are durable even in these turbulent times. Thats because our excel-
lence in technical innovation, drive train expertise and customer-oriented approach allow us to reduce the
Cost of Energy. And we are condent that we can achieve even better results by working as a closely-knit team.
So let us lock hands with the entire wind business and step into the future of wind power.
Remember: were in this together.
www.zf.com/windpower
We can achieve more
when we work together
1305REW_31 31 5/15/13 11:48 AM
1305REW_32 32 5/15/13 11:48 AM
PV MANUFACTURING: ENCAPSULANTS
Ethylene vinyl acetate (EVA) commands the vast majority of solar module encapsulation today: it has a proven
track record and is a low-cost option. But the emergence of both thin-flm and high-effciency cells means a
greater need for an alternative to EVA, fnds James Montgomery.
NEW PV MODULE ENCAPSULATION
MATERIALS LED BY NEW CELL TYPES
S
olar photovoltaic (PV) technology is a recipe of highly engineered
materials and components, sandwiched with specifc functions
and working together to harness sunlight and convert it into electricity.
One of those layers is the encapsulation flm which protects the solar
cell and ensures its performance and reliability; its role is to provide
optical and electrical transmissivity and keep out moisture.
Ethylene vinyl acetate (EVA) has been the solar module
encapsulant material of choice since the 1980s. It is as feld-proven
as any solar PV technology component.
EVA still commands the vast majority of solar module
encapsulation today: it has a proven track record and is a low-
cost option, notes Alison Bennett, global technology manager for
PV encapsulants at DuPont. But the emergence of both thin-flm
and high-effciency cells means a greater need for an alternative to
EVA. As the market expands for more thin-flm and higher-effciency
crystalline silicon solar cells, so too will the usage of alternative
encapsulant materials.
Time and technology march on, and EVAs shortcomings have
been revealed after years of evaluation. Additive materials to improve
EVAs crosslinking and adhesion properties can generate free
radicals which contribute to physical deterioration and degradation
of properties, starting with yellowing or discolouration. Among these
is generation of acetic acid.
This acid might not be fatal to most silicon-based solar modules,
which will technically still function even if the metal becomes coated.
For thin-flm technology, in particular copper-indium-gallium-(di)
selenide (CIGS), however, any acid generated would be terminal.
Companies that are making CIGS modules are using alternative
encapsulants to EVA, said Fatima Toor, lead analyst for solar
components at Lux Research.
BETTER
PROTECTION
FOR SOLAR
A high $/W packaging material, with more robust characteristics, will support longer module lifetimes and lead to lower $/kWh. DUPONT
1305REW_33 33 5/15/13 11:52 AM
PV MANUFACTURING: ENCAPSULANTS
Also encountering problems with EVA encapsulation materials
are newer high-effciency cells, which make more use of shorter
wavelengths of light. Typically encapsulant materials have included
UV blockers to protect them, but that didnt matter because the cell
couldnt use that light, explained Bennett. But as new cell designs
utilise more of the light spectrum, those UV blockers need to be
removed, and for EVA that can create a real problem.
Due to the inherent structure of the polymer, EVA does
not have superior moisture resistance and electrical properties
desired to protect the solar cell over the 25-year service life of the
module, summed up Brij Sinha, global strategic market manager
for photovoltaic flms at the Dow Chemical Company. People are
looking for something other than EVA.
IONOMERS
Ionomer materials have been employed as encapsulants in niche
applications for several years. Chemicals and materials giant
DuPont, which was already selling ionomer resin, began hearing
about interest from PV module makers who wanted more varied
encapsulant options, according to Bennett.
Ionomers are inherently more transmissive than EVA, and theyre
also more adhesive to the other materials in the module stack (glass
and the cell itself).
Another key performance beneft is in minimising potential
induced degradation (PID), a well-known cause of solar panel
failure. According to DuPont, its ionomers were at least 25 times
more effective than standard EVA encapsulants in preventing PID.
The company cited no measurable power degradation observed
after 200 hours of accelerated durability testing, while EVA coated
modules lost signifcant power after only eight hours of testing.
POLYOLEFINS
Dow Chemical, meanwhile, arrived at a similar conclusion but
took another route. It began commercialising polyolefn-based
encapsulant flm in late 2010. That choice, explained Sinha, was due
to the inherent stability of the polymer, superior moisture resistance,
and signifcantly better electrical properties.
The companys own fgures show improved reliability of modules
made with its polyolefn-based PV specifc Enlight flms vs EVA,
under accelerated test conditions. It says its encapsulant offers the
best volume resistivity signifcantly better than ionomers, and up to
1000 times better than EVA. Higher volume resistivity means lower
leakage current and longer-term performance. Like DuPont, Dow
also promotes PID characteristics, which it too claims is signifcantly
better than EVA. Polyolefn based encapsulant flms have superior
moisture barrier and electrical insulation properties, enabling them to
better protect the solar cell and the module, and allowing the module
to generate more power over its service life, Sinha said.
COMPARING THE OPTIONS
Lux Researchs Toor breaks down the numbers from her research:
Volume resistivity: Both DuPonts ionomer and Dows polyolefn
(2 x 10-16 -cm) possess two orders-of-magnitude better resistivity
than EVA. This directly translates to improved potential induced
degradation (PID) susceptibility of the PV modules. 1 x 1016 -cm
for polyolefn vs 2-2.5 x 1016 -cm for ionomer is not dramatically
different, notes Toor.
Moisture vapour transmission rate (MVTR): Both DuPonts
ionomer (0.3 g/m
2
/day) and Dows polyolefn (0.22 g/m
2
/day) are
orders-of-magnitude improvements over EVA (3-10 g/m
2
/day).
Sunlight absorbance: Ionomer edges polyolefn (1.49 refractive
index vs 1.48). Ionomers have the best spectrum transmission,
letting in most blue light. Polyolefns have good spectrum emission
as well, though, and similar solar absorbance to EVA.
Polyolefns have a similar material density to EVA and are cost-
competitive with it, points out Toor. Theres no acid formation, and no
crosslinking (and subsequent free-radical formation). They also have
the best MVTR of EVA alternatives, though ionomers are fairly close
behind, and both are far better than EVA. And polyolefns offer the
best volume resistivity (/cm) of any of the encapsulation materials.
In terms of performance in the feld, ionomers arguably get the
nod between the two alternatives. DuPont points to recent data from
Sandia Labs, showing minimal power loss from a mounted module
after 18 years of continuous service, and what it says is performance
exceeding all typical power warranties offered today.
REFRAMING THE COST CONVERSATION
Making a switch in any component or material is not a simple
decision. Costs, manufacturing complexity (also boiled down to
cost) and proven performance are also deciding factors.
EVA has a long track record, even with the above mentioned
questions about long-term reliability. Standard crystalline silicon
module manufacturers are unlikely to switch away from EVA in the
short term, since their lamination process and equipment is designed
for EVA, and EVA has performed adequately in-feld at an attractive
$/W price, admits Toor. It might be up to CIGS modules (specifcally
glass-glass CIGS module confgurations) to give the alternative
encapsulant materials their market stepping-stone.
But what really has to happen and this is in all areas of solar PV,
not just encapsulants is a change in the conversation from purely
low cost vs output ($/W) to a more performance-based metric ($/
kWh), explains Toor. This trend resonates among project developers,
and increasingly among Tier 1 module manufacturers such as Trina,
Yingli and SunPower, she points out. A module can be packaged
with low $/W materials, but that doesnt guarantee that it will maintain
its performance through its warranty period, say 80% performance
over 20 years. A high $/W module packaging material, however,
with more robust characteristics (MVTR and volume resistivity) will
support those longer lifetimes, and that means lower $/kWh.
The main driving force for quality-conscious module
manufacturers is the reduction in PID, lower yellowing index, and
improved moisture protection in-feld, Toor says. Both ionomers and
polyolefns provide that beneft over EVA. Neither have the large-
scale feld-proven reliability behind them that EVA has, but they do
have a low $/kWh roadmap. Proving bankability and reputation of
the new technology will take time in the PV industry, she says.
James Montgomery is Associate Editor of
RenewableEnergyWorld.com
1305REW_34 34 5/15/13 11:52 AM
1305REW_35 35 5/15/13 11:52 AM
DATA POINTS
US RENEWABLE POWER
COMPLETED IN 2012
1305REW_36 36 5/15/13 11:52 AM
Renewable energy projects commissioned during 2012 in the
USA, as of 31 January, 2013
SOURCE: WHIT VARNER AND SNL FINANCIAL
DATA POINTS
WIND LEADS
LIST OF
COMPLETED US
POWER PLANTS
IN 2012
There were 430 renewable energy power projects completed
in the US is 2012, totalling 29,335 MW, according to data
from energy research company SNL Energy. Solar topped
the list for the number of projects completed during the
year, with 175, and wind came in second, with 136 projects.
By capacity, wind led the list, with nearly 13,000 MW, or
44% of the total capacity completed.
Total capacity added in 2012 was signifcantly greater
than the 20,436 MW added in 2011. The total capacity
completed in 2012 represented nearly $73 billion in
estimated construction costs, based on details available on
specifc projects, according to the company.
Blowing away previous records and, for the frst time,
accounting for more generation capacity than any other
technology, 12,953 MW of wind capacity was completed
in 2012. This gush came as the industry raced to
complete projects ahead of the scheduled expiration of the
production tax credit at the end of 2012, which has since
been extended.
Although solar topped the list in terms of number of
projects completed during the year, it accounted for only
1557 MW of completed capacity. Nearly all of the solar
capacity built was in the Western Electricity Coordinating
Council (WECC) region.
Rizwan Qureshi
1305REW_37 37 5/15/13 11:52 AM
1305REW_38 38 5/15/13 11:52 AM
At the recent PV America conference, Jennifer Runyon spoke with Conor McKenna from Reznick Capital Market
Securities, Tim Short, Capital Dynamics and Laura Jones of Hunton and Williams they discuss the complexities of
solar project fnance and how to attract new entrants into the space.
FROM DEBT TO EQUITY TO TAX EQUITY:
HOW TO ENTICE NEW INVESTORS
The AguaCaliente project in Yuma county.
FIRST SOLAR
J
ennifer Runyon: You have each emphasised the importance of
having a well-backed sponsor or developer in order to get a
project fnanced. Why is that important?
Conor McKenna: At least from our perspective when we
are trying to fnd other pieces of the capital stack for a deal, it is
very important to get a debt provider and a tax-equity provider
comfortable with the company that is going to be building and
supporting this project over the long term. Without that strength of
balance sheet, without that experience and comfort level, it is very
diffcult for a team that is working on a deal to get it through their own
investment committee to be able to invest with you on that project.
They are looking for long-term partners and the people that you want
to invest with are going to be very strong and they in turn want you
to be very strong.
Tim Short: I think its also about knowing that the project is
going to get done. We are often that partner to developers and thats
because we can bring a balance sheet to a deal in order to meet a
lot of the obligations that a project needs in order to start operating
and producing solar energy. So one of the examples is that we need
to post a lot of security for the ability to sell power under long-term
agreements. That costs money. We need to be able to continue to
fund the engineering of the project when the tax equity has already
come in or online. That costs money. To be able to see that the
project will get done for our tax-equity investor in particular and other
POLICY & MARKETS: PV INVESTMENT
US SOLAR
INVESTMENT
1305REW_39 39 5/15/13 11:53 AM
providers like debt investors is very important.
Laura Jones: I would agree with my other panellists here. One
of the key frst things that a [tax equity investor] looks at is that
sponsor equity or skin in the game.
Jennifer Runyon: Laura, please explain the dance that you refer to
that takes place between the tax attorneys and the developers or
bankers?
Laura Jones: So, the title of the panel is enticing new investors
and some of the challenges that we run into in bringing in new
investors is that these are not simple deals and that tax rules are
not simple. One of the key pieces with bringing in new tax-equity
investors is understanding the tax rules and then allocating the tax
risk associated with the transaction. Obviously the investor would
love it if we could just say, Ok, theres no tax risk associated with
this deal. We do the best we can to cover all those risks and mitigate
those risks but the business guys sometimes have a different idea.
Obviously they want to get rid of every risk possible whether its
commercial, tax or otherwise but in the tax world to have a risk-free
transaction is to have a bad tax fact. And so what we try and do is
fgure out the risks that stay with the tax-equity investor because
those are important to the transaction being respected and then
fgure out what risks are appropriately kept with the developer.
In order to claim for the ITC [investment tax credit], it needs to
be new property, it cant be used property. So thats something that
you say, ok, developer, all your property needs to be new property,
which is pretty simple, and now all that tax risk is allocated and
properly allocated to the developer.
Tim Short: As a cash-equity investor and not a tax-equity
investor, we try very hard to allocate away as many risks as possible.
I agree entirely with Laura that when all the risks are going to all the
counterparties from the perspective of the tax attorney, the deals not
so attractive perhaps.
Jennifer Runyon: What about smaller sized projects, say in the
1-2 MW size. We have heard from smaller developers that there isnt
any project fnancing available for them. Is that the case?
Tim Short: The message is [for developers with smaller projects]
that its getting better. That the threshold of project size that makes
sense on its own without fancy, expensive transaction-cost-based
solutions like tax equity is improving. And thats driven by declining
costs, the increasing comfort that capital has with solar. So thats
a positive. But at the same time, right now, we have a whole lot of
transaction costs and investors and we have to say well, theres a
threshold at which it [smaller project sizes] doesnt make sense.
Conor McKenna: I think there are actual players out there that
are interested in those 1-2 MW systems as standalones. When I say
[you need] a good PPA, and I just want to be a little more clear here,
that means a good price with a good credit. If you have that, there
are players on the regional level that have interest. It may not be the
larger funds but there are players. We have seen them. We look to
try and source projects that are in the 1-2 MW range with regional
players that have appetite in that given sector. Regional utilities have
interest: they are willing to go through the work there, as long as
you play by their rules, theyll do that [project] with you. There are
fnancial players on a regional level that will work on [projects like]
this. They have mandates.
Tim Short: I think the other issue here is that a project with
good enough returns will get done. But, if youre going to have a
small project thats going to attract transaction costs, you need to
be putting a project together that is economically more attractive
in order to bring people into that threshold. And thats going to
continue to be the case as costs decline, power prices rise but there
is still going to be a threshold.
Jennifer Runyon: How long until we see more standardisation in
projects in this 1 to 2 MW range?
Laura Jones: Hopefully before 2016! Its hard to say how long. It
has de!nitely improved over the past seven years from when the ITC
went from 10% to 30%. At that point, we got a lot of calls and there
was a lot of interest in solar because there was enough juice in the
deal in terms of tax preferences to actually get people excited. We
saw a lot of interesting PPAs, we saw a lot of interesting transaction
documents, project documents, and the like. I do think it is getting
better but I still think we have a decent way to go. The developers
that Ive seen that have been very successful have a standard PPA
that they try their darndest to use over and over and over again. It
doesnt always work out that way, but it really helps when they go to
their tax-equity provider.
Paul Detering from Tioga [has a] pre-reviewed PPA that when
the tax-equity investor gets it, [they] run a black line verses that
standard PPA and if all thats changed is the customer name and
the address of the system, and the price of the system and the size
of the system: were done.
Tim Short: I agree with Laura. It is a matter of how quickly
developers are able to bring that level of standardisation to the
market. Now, residential works because its standardized. In our
space, we see a whole lot of different 1 MW projects with a whole lot
of different contracts. And that has due diligence cost and the best
developers that we work with and the ones that we do work with
on 1-2 MW projects in portfolios are the ones that, like Laura said,
did their darndest to force an absolutely standard contract when it
comes to the PPAs, the leases, the structure of the deal, everything
so at the end of the day we can be quick and ef!cient and keep
those transaction costs down so we can do those projects that are
at the smaller end of the scale.
Jennifer Runyon: Turning to Solar Real Estate Investment Trusts
(REITs) and Master Limited Partnerships (MLPs), which would allow
the general public to invest in solar projects, how would those
impact the solar investment market if they were available?
Laura Jones: I have no doubt that if the solar REIT and MLP
legislation gets passed and not only the MLP legislation because
there needs to be changes to the at-risk rules and the passive
activity loss rules and this is all (unfortunately) at the hands of
Congress but if that does pass, I have no doubt that it will increase
capital. To what amount, I dont know. I get calls all the time from
folks who say Ive got a couple wealthy individuals that are willing
to invest in my project and my !rst question to them is, Have you
heard about the passive activity loss rules? If the answer is yes, we
continue talking. If the answer is no, its a fairly short conversation.
People are de!nitely interested in doing this and I know of larger
institutions that would also be excited about this banks that have
access to or have a large stable of clients that are high-net-worth
1305REW_40 40 5/15/13 11:53 AM
17-19 March 2014
Cape Town International Convention Centre
Cape Town, South Africa
INVITATION TO EXHIBIT
The inaugural DistribuTECH Africa is a must attend event for
any company involved in the power and water transmission and
distribution industry..
With Africas electricity consumption expected to grow at a
rate of 3.4% per year until 2020, DistribuTECH 2013 is
expected to play an important role in the expanding market
and lead the way in the advancement of the transmission and
distribution industry.
This annual forum not only provides the ideal opportunity
to address technological challenges, but also launch new
products and showcase your company amongst an audience
of key decisions makers from leading international operators,
manufacturers and suppliers.
BOOK YOUR BOOTH TODAY
For booth and sponsorship enquiries, please contact:
Leon Stone
Exhibit Sales Manager - Rest of the World
T: +44 (0) 1992 656 671
F: +44 (0)1992 656 700
E:leons@pennwell.com

Andrew Evans
Exhibition Sales - Africa
T: +27 (21) 913 5255
F: +27 (0) 86 770 7447
E: andrewe@pennwell.com
WWW. DISTRIBUTECHAFRICA.COM
EQUIPPING
UTILITIES FOR
THE FUTURE
NEW PENNWELL EVENT COMING TO AFRICA
Co-located with
Owned &
Produced by: Presented by: Host Utility Sponsor:
Supporting
Organization:
1305REW_41 41 5/15/13 11:53 AM
individuals, I think it could really open things up, its just, you know,
weve got the beginning point of changing the tax code, which is
always an interesting undertaking.
Jennifer Runyon: Because these are good investments, right? The
returns are attractive.
Laura Jones: if there was a change, Id invest. I would love to
invest in solar projects.
Conor McKenna: I think that also, too, the logical progression
here will be towards things like REITs. I think REITs make a lot of
sense if the rules change. These are very stable cash fows, youre
not dealing with tenants that may be coming or going at any given
time, you have a long-term contract, usually with one tenant, which
either has good private credit or has a good credit rating. This would
be an ideal investment for a REIT that doesnt have huge hurdle
rates for their return.
Tim Short: I think anything that mobilises more private capital
into the space and drives down the cost of capital for underwriting
solar projects is fantastic. But its diffcult to bank on that when it
requires an act of congress. So its a wait and see.
Jennifer Runyon: Finally, why arent there more large institutional
investors in the market right now? Google has already jumped in,
who do you think will be next?
Laura Jones: We are seeing new entrants, they are there, but I
think part of the reason why we arent seeing tons of new investors
is it takes time and education and a lot of hand-holding to get them
comfortable with investing in a new type of asset class that may be
different or foreign to them. There are tax rules that are complicated;
there is just a lot of groundwork that needs to be done before
cheques will be written. My bet is that folks who are end-users of
solar, who have a tax appetite, you know the fortune 500 and the
like, that have gotten comfortable with the technology theyve seen
what it does they may have capital that they are willing to deploy,
they may have a green mindset, I think some of the pieces, parts are
already in place there for them to take the plunge and actually be
an investor, maybe even owning the project themselves. Isnt that
the Holy Grail? You just install the project yourself, you dont have to
involve tax equity and all these other players in one transaction. They
build, own, and hire an O&M provider.
Conor McKenna: The reason why its harder for certain types
of investors to get in is because of the intricacies of the tax benefts
involved in these projects. While its a great beneft to solar, it also
is in certain ways a signifcant hurdle to overcome. So as you
need to get not only tax equity comfortable with coming into the
space, you also need to get the investor comfortable with a tax-
equity partner. A traditional infrastructure player is used to saying,
Ok, we are the equity, someone else is the debt, lets just get this
built. But now you have a third piece of the pie that these traditional
power infrastructure players are having to get used to. Once they
get there, I think thats going to be a huge piece. Youll see more
infrastructure players hopefully in the near future.
Tim Short: I think capital markets, public markets have a greater
role to play but that involves all the benefts of solar being able to
fow through to the investor and so this comes back to what Laura
and Conor were talking about and that is a change in the rules.
There are examples out there where public markets can come into
the space, but it will require a change in the rules.
Jennifer Runyon is Managing Editor of RenewableEnergyWorld.
com.
This article is available on-line. To comment on it or forward it
to a colleague, visit: www.RenewableEnergyWorld.com
The Topaz project under construction, backed by Warren Buffets MidAmerican FIRST SOLAR
1305REW_42 42 5/15/13 11:53 AM
24-26 de Setembro 2013
Transamerica Expo Center
So Paulo, Brasil
www. hydrovi si onbrasi l . com
Owned & Produced by: Presented by: Co-located Events:
24-26 September 2013
Transamerica Expo Center
So Paulo, Brasil
www. hydrovi si onbrasi l . com
Owned & Produced by: Host Utility: Presented by: Co-located Events:
HydroVision Brasil overcame my expectations in the
sense that I could fnd people of great reference in
the feld where I work. The contacts and the information
I got were really valuable to my work as a researcher.
Vitor Hugo Medeiros De Luca, Research and Development
Engineer at Reivax S/A Automao e Controle Brazil
Experience Brasils only event dedicated 100% to the
hydropower industry for yourself!
REGISTER TODAY! www.hydrovisionbrasil.com
REGISTER
TODAY!
1305REW_43 43 5/15/13 11:53 AM
Be sure to mark your
calendar to return to North
Americas most inuential all-renewable
event November 12-14 in the Orange County Convention
Center Orlando, FL. Once again, well be co-locating with
POWER-GEN International bringing renewable energy to
the forefront of the mainstream energy industry.
Owned & Produced By: Co-located With: Presented By: Supported By: Media Sponsor:
Learn more & register @ RenewableEnergyWorld-Events.com
Progressive
Changes
for the future
Nov. 12-14, 2013
Orange County
Convention Center
Orlando, FL
1305REW_44 44 5/15/13 11:53 AM
WIND: GLOBAL MARKET OUTLOOK
W
ith the addition of 44,951 MW in new installations in 2012,
world wind power capacity grew to around 285,700 MW,
an increase in the total wind power installation base of 18.6%, the
latest World Market Update from Navigant Researchs BTM Consult
ApS division reports. All in, around 23,350 new wind turbines were
erected in 60 countries and although overall market growth year-to-
year was a relatively modest 7.8% the fgure still represents around
3 GW more wind capacity installed in 2012 than was seen in 2011.
Scoring yet another annual record for construction, this marks
the seventh year running in which more capacity was installed
than in the previous year and follows record-breaking results from
2008 and 2009, when the growth in annual installations was 42%
and 35% respectively. However, the overall global markets growth
rate in terms of cumulative installations slipped by more than two
percentage points between 2011 and 2012, BTM says.
The slowing of wind market growth is a direct consequence of
the global fnancial and economic crisis, which started in September
2008, the authors note, adding that even China, which had
demonstrated a strong rate of expansion since 2008, experienced
a major decline in its annual installations in 2012. Even so, China
narrowly missed scoring a hat trick as the worlds largest market for
the third year running, losing out to the US by just 164 MW.
Across the American continent wind installation grew by 12.3%
compared with 2011 and represented 35.2% of the global wind
market in 2012, the BTM fgures state, adding that the United States
recaptured its title as the worlds largest market with 13,124 MW of
new wind power installed in 2012, 32% more than achieved in 2009,
the previous record year.
The combined North American and Latin American market
registered a 65% increase in new wind power in 2012, higher than
the 44% increase in 2011.
Maintaining steady growth, Europe installed an additional
12,824 MW of wind capacity, 25% higher than the volume installed
in 2011 and representing 28.5% of the world market in 2012.
The recession is nonetheless having an impact, as Europe lost its
position as the region installing most wind power globally, with a 4%
increase on 2011, but 12.5% less than fve years ago.
Europe does still host by far the largest volume of wind
generating capacity of any world region though, at 110,196 MW it
has around 15.5 GW more than installed in South & East Asia and
NEW GLOBAL WIND ENERGY RANKINGS
REVEAL A RESHUFFLE IN THE WIND DECK
A new forecast for the global wind market suggests that while some sobering times lie ahead, overall the outlook
for the wind sector is positive. That said, with major upsets in the supplier rankings and the ebb and fow of global
markets already challenging widely held perceptions, the future is an open book. David Appleyard reports.
OUTLOOK FOR
A NEW ORDER
The United States recaptured its title as the worlds largest
market, with 13,124 MW of new wind power installed in 2012.
DAVID APPLEYARD
1305REW_45 45 5/15/13 11:53 AM
some 38.6% of the worlds wind power generating capacity at the
end of 2012. In the two leading European markets, Spain, against
all the odds, marginally increased its installations in 2012 by 6%
compared to 2011, while Germany produced another year of solid
growth, installing 20% more than in 2011.
The report goes on to say that, overall, Europe was buoyed by
remarkable growth in its emerging markets, with signifcant volumes
installed in Romania, Poland, Sweden, and Turkey, but its position
is nonetheless being steadily eroded as China and the American
continent grow their overall capacity.
However, contrary to trends in recent years, the Asian market
saw a drop in installations for the frst time in over a decade. Chinas
annual market growth dropped 26.7%, taking it back to below 2009
levels of installation at close to 13 GW. This decline was compounded
by a 29% drop in India compared with the previous year. In the
OECD-Pacifc region, which has demonstrated somewhat erratic
wind market growth, the report notes, annual installations of wind
capacity declined in 2012 by 25% on 2011, with all markets except
South Korea contracting. The Asian and OECD-Pacifc regions
combined accounted for 35.4% of the worlds new wind installations
in 2012, a signifcant decline of almost 17% from 2011.
Including OECD-Pacifc, annual installations of new wind
decreased from 21,699 MW in 2011 to 15,921 MW in 2012, a drop
of 26.6%. China and India remained the regions leading countries.
In terms of overall installation rankings, with the US at number
one, China saw 12,960 MW installed for second place, followed
by Germany and India. Emerging wind power markets Brazil and
Romania, in eighth and 10th place respectively, entered the top 10
for the frst time while the exit of France and Sweden from the top 10
ranking in 2012 is also notable, the authors remark.
Global wind power additions in 2012 provide evidence of an
increasingly geographically diverse market, with the top 10 markets
accounting for 84.8% of capacity installed last year compared with
86.2% in 2011.
The compound annual growth rate (CAGR) for the past fve years
has fallen to 17.8%, from 22.7% in the previous report, refecting the
modest growth rate in 2012, the analysis fnds.
Winds stake in global electricity supply has
reached 2.62%, which is the proportion of electricity
forecast to come from wind energy in 2013.
SHAKE-UP IN SUPPLIER RANKINGS
A major shake-up in the rankings of the worlds
top ten wind turbine suppliers was seen for the
frst time in several years in 2012 as Vestas was
displaced from the number one position for the frst
time since claiming the top spot in 2000, despite
increasing its global market share by 1.1% in 2012.
GE Wind is the new number one, have jumped from
third place in the previous update. BTM points to a
boost by a rush to capitalise on the US Production
Tax Credit, BTM gives GE a global market share
of more than 15% in 2012. But there are other
big movers too. Siemens rapidly ascended to the
third largest global supplier in 2012 from ninth the
previous year thanks to strong performance both in
the US and the offshore market.
Elsewhere among the major manufacturers,
Enercon dominated the German market and maintained its position
in the top fve by rising to fourth place overall and Suzlon rose one
position to ffth place by relying on the strong performance of its
subsidiary REpower and its leadership in India, BTM says.
With a moratorium in its domestic Spanish market, Gamesa
dropped out of the top fve to sixth place.
The four leading Chinese turbine OEMs Goldwind, United Power,
Sinovel, and Mingyang are still ranked in the top 10, though none are
in the top fve in this years rankings. BTM ascribed the positions
to transmission bottlenecks and manufacturing overcapacity in the
home market for Chinas two market leaders, Goldwind and Sinovel,
Goldwind saw a big fall, dropping to seventh place from second
in 2011, while Sinovel continues to drop in the rankings, narrowly
maintaining its position in the top 10, the report says.
The analysis adds that the fve companies just outside the top
10 ranking are Germanys Nordex, Chinas XEMC and Sewind, Wind
World India and Alstom Wind of France.
STRONG GROWTH, BUT DOWNWARD FORECAST FOR NOW
For the second year running, BTM predicts a reduction in market
for the next fve years. The previous World Market Update forecast
was for a 5% reduction in the annual growth rate. The new 2012
forecast has revised that fgure downward and BTM now predicts the
addition of 241,620 MW to 2017, 10% less than the 2011 forecast.
The lowering of the forecast growth rate is mainly accounted for by
a projected slow down in wind turbine sales in 2013 and 2015, the
analysis adds. The average growth rate for new installations for the
forecast period 2013-2017 drops to 5.1%. A drop of over 10% is
anticipated in 2013 compared with 2012.
The analysis attributes the revised forecast to a number of
signifcant factors, including an expected weak US market in 2013,
the result of a last minute extension of winds federal Production Tax
Credit, which had been due to expire at the end of the year. The
extension on 1 January, 2013 came too late to rescue 2013 entirely,
the report says. Furthermore, the extension is for one year only and
means the US market faces more political uncertainty after 2013.
Global share of wind market by owner/operator
BTM CONSULT APS A PART OF NAVIGANT
Iberdola Renovables (ES)
Longyuan Power Group (CN)
NextEra Energy Resources (US)
EDP Renovaveis (PO)
Acciona Energy (ES)
Datang Renewable Power (CN)
Huaneng Renewable Corporation (CN)
E.ON Climate and Renewables (GE)
Enel Green Power (IT)
Shenhua Guohua Energy (CN)
EDF Energies Nouvelles (FR)
China Power Investment Corporation (CN)
GDF Suez (FR)
CGN Windpower (CN)
Huadian New Energy (CN)
Share of the operators / owners market (%)
Total market: 90,283 MW (100%)
3.4%
3.5%
3.6%
4.0%
4.0%
4.7%
4.8%
5.1%
6.0%
6.3%
7.9%
8.8%
11.1%
11.7%
15.1%
1305REW_46 46 5/15/13 11:53 AM
GE 1.6-100 turbine at Invenergys Bishop Hill wind
farm in Illinois, United States
Copyright @ General Electric and Invenergy LLC
Gammel. Kongevej 1
DK-1610, Copenhagen, Denmark
Phone: +45 97325299
Fax: +4597325593
per.krogsgaard@navigant.com
birger.madsen@navigant.com
feng.zhao@navigant.com
aris.karcanias@navigant.com
WORLD MARKET UPDATE 2012
FORECAST 2013 - 2017
INCLUDES:
Milestone: more than 285 GW wind power globally
45 GW of new capacity added in 2012,
including 1.1 GW from offshore wind
The US surpassed China as the largest market
in terms of new installations in 2012
Signifccnl :hifl in pc:ilicn: cncng lhe lcp 10
wind turbine suppliers in 2012
The top 15 wind owner-operators as of 2012
Market forecast to 2017 (on/offshore ) and
prediction to 2022
Latest incentives in key wind power markets
Special section: Cold Climate Turbines
Major industry trends covered in more than
80 tables and graphs
More than 150 pages providing
comprehensive assessment of both supply
and demand in the wind market
A BTM WIND REPORT
For more information, enter at 23 REW.hotims.com
Meanwhile, the worlds largest wind market, China, is still in
transition from a period of breakneck growth to a period of more
stable development as more transmission capacity is built, but the
authors note that the lack of suffcient grid capacity is a problem that
cannot be solved overnight.
On a more positive note, there are a number of emerging
European countries which are performing well alongside strong
markets like the UK and Germany, the report says, even though
markets in long-established wind power growth engines like Spain
and Italy are expected to contract. Growth in emerging countries in
Latin America, eastern Europe and Africa, and a growing offshore
market is expected to address this decline. Furthermore, the EU
countries are still required to meet their 2020 targets and the EU
directive for renewable energy. Growth in the two leading markets of
China and India will also probably take off again in the middle of the
forecast period, the report adds, summarising that the global wind
power market will continue to grow after a short period of slower
growth and that the outlook after 2015 is optimistic.
Table 1. Installed global capacity in 2011 and 2012, by region
Installed Accu. Installed Accu. % of Installed
MW 2011 MW 2011 MW 2012 MW 2012 MW 2012
Americas 9,573 56,563 15,820 72,382 35.2%
Europe 10,226 97,588 12,824 110,196 25.4%
South & East Asia 21,005 79,282 15,400 94,687 34.3%
OECD-Pacifc 694 6062 521 6574 1.2%
Africa 133 1245 245 1490 0.5%
Others 82 290 141.6 431 0.3%
Annual MW installed capacity 47,712 44,951
Cumulative global total 24,029 285,761
1305REW_47 47 5/15/13 11:53 AM
Assessing the likely regional outcomes, BTM forecasts that
Europe will lose its position as the region with the most wind power
capacity by 2015, but will account for 30% of total demand over the
forecast period. The Americas will contribute 19% of total demand to
2017, the smaller proportion mainly due to the expected slowdown
of the US. Canada will, however, continue to grow and stabilise while
Brazil is expected to maintain its leading position in Latin America.
South & East Asia will form the biggest market over the next fve
years, led by China and India, accounting for 43% of all demand.
OECD-Pacifc will see stable growth, frstly led by Australia and
followed by Japan and South Korea at the end of the forecast period.
Distribution of newly installed capacity in the next fve years is
estimated by BTM to see the Americas on 19.4%; Asia (including
OECD-Pacifc) at 46.5%; Europe 30.1%; and rest of the world 4%.
By the end of the forecast period in 2017, cumulative global wind
power capacity will have reached 527 GW, of which 183 GW will be
in Europe, nearly 200 GW in South & East Asia and 120 GW in the
American continent.
Concerns about security of electricity supply and man made
climate change continue to be the main drivers for increased use
of wind energy and the longer-term market prediction for the 2018-
2022 period indicates an improved average growth rate of 8.9%. By
the end of the market prediction period in 2022, BTM believes that
aggregate global wind power capacity will pass the 900 GW mark
and will supply around 7.4% of the worlds electricity demand.
The authors note that overall geopolitical indicators point to both
a need and a desire for more renewable energy, even though clean
energy issues slipped down the political agenda during the fnancial
crisis. Nonetheless, political action to implement new decisions to
deal with climate change seems likely.
David Appleyard is Chief Editor of Renewable Energy World
magazine.
windenergyhamburg.com
YOUR GATEWAY
TO THE WORLD OF WIND ENERGY
HAMBURG, 2326 SEPTEMBER 2014
80% booked! Dont miss out!
WindEnergy Hamburg the new global trade show brings together
businesses from across the entire wind industry value chain, onshore and
offshore. It is the only event of its kind that will provide a comprehensive
overview of the current status and future of the industry.
International exhibitors and buyers are coming to meet and do business
in Hamburg the European capital of the wind industry.
Come join us and make it your gateway to the world of wind energy!
For more information, enter at 24 REW.hotims.com
Forecast of annual installations to 2017, by region
1305REW_48 48 5/15/13 11:53 AM
W
e all know that wind energy can light homes and businesses,
but how about powering entrepreneurial spirit through
education and information access?
Todays social and economic development is based on a
knowledge economy in which access to knowledge is directly
related to Information and Communications Technologies (ICTs).
However, as ICTs rapidly advance, the gap between the information-
haves and have-nots continues to widen. In many low-income
countries, such as Tanzania, participation in even a full course of
basic education is not universal.
In Tanzania, one of the poorest countries in the world, over 20%
of the population are living on less than US$1 a day. The country
is vulnerable to climate-related disasters, especially in drought-
prone areas where there have been poor rains and where traditional
coping strategies are breaking down as pressure on land increases.
Crops have become harder to grow, meaning adults and children
alike have to work longer, for ever-decreasing incomes.
Access to the knowledge economy can play an important role in
increasing the capacity of a country like Tanzania to adapt to climate
change. However, approximately 85% of the regional population are
presently without grid-quality electricity and the limited access to
education is a signifcant impediment to Tanzanias ability to cope
effectively with climatic risks.
SONGAMBELE: RENEWABLE WORLD IN EAST AFRICA
Renewable World, an international non-proft registered charity, is
helping to bridge the digital divide in the country by supporting a
wind-solar hybrid project in East Africa in Tanzanias Songambele
village where using renewable energy is making a tangible and
sustainable difference to the lives of the community of vulnerable
farmers in and around the village.
As offcial charity of EWEA, Renewable Worlds work in East
Africa and the Songambele project in particular is the focus of the
frst action for Global Wind Day on 15 June, 2013.
The charity is working with a regional partner, the Arid Lands
Information Network (ALIN), to develop an Information Centre
(Maarifa Centre) for the vulnerable people of Songambele, located
some 97 km from the town of Dodoma in northern Tanzania. The
model is specifcally seeking to reduce the digital divide, bringing
opportunity to poor farmers affected by climate change through the
provision of information technology, powered by renewable energy.
Local mother of three and community organiser Matilda
Myambogi explains that before the Centre was developed we had
no way to access up-to-date information about developments in
crop maintenance, or power for vital irrigation, so adults and children
had to work long hours, for ever-decreasing reward.
The Maarifa Centre contains books, compact discs and, perhaps
most vitally, computers with internet capability. It is used as a means
POLICY & MARKETS: AFRICA
RENEWABLE POWER BRIDGING THE
DIGITAL DIVIDE IN OFF-GRID AFRICA
A 1 kW wind turbine coupled with a roof-mounted solar plant are at the heart of a Tanzanian project to bring
internet access to a rural community and further its social and economic development on a sustainable basis.
Fran Witt describes the scheme.
A wind and solar system helps some of Tanzanias poorest access
information and communications technology
RENEWABLE WORLD
HYBRID SYSTEMS
POWER AFRICAN
ENTREPRENEURS
1305REW_49 49 5/15/13 11:54 AM
POLICY & MARKETS: AFRICA
to connect Songambele with its local region, with its country and
with the rest of the world. It aims to increase educational participation
and achievement to ensure that knowledge and skills are harnessed
to improve health, raise incomes and sustain economic growth.
The Centre is managed by a Field Offcer who offers technical
services and enables communities to access information resources.
The Field Offcer is supported by two voluntary Community Knowledge
Facilitators selected from the community, and an advisory committee.
The Centre has an Information and Communications Technology
trainer and a Technical Offcer in charge of outreach activities on
sustainable agriculture and natural resources management.
BUSINESS SKILLS AND ENTREPRENEURIAL SPIRIT
Renewable Worlds overarching aim is to reduce the gap between
poor potential consumers of energy and a functioning market. They
build business skills and encourage entrepreneurial spirit in order to
achieve the long-term success of changes propagated by access to
affordable energy services.
The charity promotes building business planning skills to
establish successful income-generating services at the Maarifa
Centre, including the sale of solar and biogas lanterns, setting up a
barber shop, establishment of mobile phone charging facilities and
provision of business services.
ALIN has years of experience in building the capacity of remote
rural farmers in East Africa through increased access to information.
This assists poor farmers to share information and advice about
resilient varieties of crops to grow in arid areas, and gives them
access to market information so that they sell crops at fair rates.
Adults and children alike are given basic ICT skills. They have
studied fve modules: Introduction to Computers, Microsoft Word,
Microsoft Excel, Microsoft Power Point, and Internet and E-mail.
The students are able to use their training both to train others and
to transform their own lives and those of the community around
them. Many of the young people who have taken the course hope to
pursue further studies online and seek internet-related work, or set
up their own businesses.
The ICT modules taught have been very useful to the community,
said Herieth Sila, Maarifa Centre Field Offcer. They have started
applying them in different areas of their lives. Some of the youth
trainees have already been booked for employment.
Zawadi Michael is one of the frst graduates from the Maarifa
Centre, and uses her new Excel skills to catalogue the Maarifa
Centres information resources in her role as Community Knowledge
Facilitator. She too sees the Maarifa Centre as a gateway to a new
kind of future for local residents.
Renewable World is working with ALIN to promote sustainability
across the whole Maarifa Centre network by establishing effective
business models to achieve fnancial sustainability. They are aiming
to bring their poverty alleviation, digital information access model to
other isolated, off-grid communities.
The village chairman, the Ministry of Agriculture Offcer and
a representative of the Ministry of Education are all supportive of
the Maarifa Centre. They believe that community members are
beneftting most from information relating to farming, including
livestock production, entrepreneurship, business management and
environmental conservation.
SUSTAINABLE RENEWABLE ENERGY TECHNOLOGY
Renewable World has supported the introduction of a wind-solar
hybrid system to power the Information Centre. In addition to solar
panels, a 1 kW wind turbine has been installed to provide additional
power for productive uses. The 12 metre horizontal axis turbine is
locally produced and is designed to cut in at low wind speeds. It
produces an average of 3 kWh of energy per day.
Engineer Arthur Karomba of Windpower Serengeti installed the
systems 1 kW wind turbine. Its a good design, which can be built
anywhere and helps people to understand all turbine systems, he
said of the machine.
All that was needed here was a turbine, he added. This part of
Tanzania is excellent for wind power. It is also good for solar power,
and we were able to combine the two. We have a battery, to which
the turbine is connected, and between the wind and solar power
there is enough for the Maarifa Centre, and to be stored for use
across the community.
Because of its rotating blades, the turbine needs to be taken
down once every six months for maintenance. Its guaranteed for a
year, but we are also training local people to make and build turbines.
This means Songambeles people will own and operate the system
themselves. It also means that they can talk to others about how the
turbines work and what they can do.
We must get the message out that renewable energy technology
is here, it delivers, and it is necessary, he concluded.
MAKING A DIFFERENCE
Renewable energy is already making an important contribution to
bridging the digital divide in Tanzanias Songambele village and
changing the lives of the people there. But this project also has
the potential to be replicated across East Africa, stimulating and
enabling poor and extremely poor people in the region to both
access information and derive development opportunities from
affordable, reliable, sustainable, renewable energy services.
Fran Witt is communications and engagement manager at
development charity Renewable World.
e-mail: info@renewable-world.org
Assembling the 1 kW turbine at Songambele in Tanzania
RENEWABLE WORLD
1305REW_50 50 5/15/13 11:54 AM
INVITATION TO PARTICIPATE
Renewable Energy World Asia, co-located with POWER-GEN Asia, is the regions leading
exhibition and conference dedicated to the power generation, renewable energy and
transmission and distribution industries.
Attracting 7,000 delegates and attendees from over 60 countries from South East Asia and
around the world, nowhere else gives you the opportunity to reach and meet senior executives
and industry professionals in one place at the same time, providing key networking and
business opportunities.
The Renewable Energy World Asia conference has become the major annual platform for the
renewable and alternative energy industry to discuss the topics and issues of today and is regularly
contributed to with keynote speeches from Government Ministers and Governors of the regions
utility companies.
Leading Industry Exhibition
Discover new ideas, technologies and developments at the regions foremost exhibition for
the conventional power and renewable energy generation industries and source the latest
products and services from leading companies and suppliers from around the world.
EARLY BIRD DISCOUNT REGISTER TODAY!
Register yourself and your colleagues by 6 September 2013 as conference delegates and
beneft from the Early Bird Discount Rate, plus free entry to the exhibition.
WE INVITE YOU TO JOIN US IN BANGKOK, THAILAND FROM 2 - 4 OCTOBER 2013
There is no better place to meet the key decision makers in the renewable energy industry.
ADVANCING ASIAS ENERGY FUTURE
2 4 October 2013
IMPACT Exhibition & Convention Centre
Bangkok, Thailand
www.renewableenergyworld-asia.com
OWNED AND PRODUCED BY: PRESENTED BY: CO-LOCATED WITH:
www.renewableenergyworld-asia.com
1305REW_51 51 5/15/13 11:54 AM
July 23 26, 2013

Colorado Convention Center
Denver, Colorado, USA
www.hydroevent.com
OWNED & PRODUCED BY: PRESENTED BY: MEDI A PARTNERS: SUPPORTED BY:
I spent quality time interacting with hydro professionals exchanging ideas as well as gathering
overwhelming technical information. The hydro industry is moving forward at a fast pace. This
years HydroVision International showcased the latest and greatest technological and
technical inventions defned through ingenuity of individuals, remarkable know-how of participating
manufacturing and consulting companies and successful project developments. HydroVision
International 2012 was a great and memorable event. It was worth every penny that I invested.
Tim Maricic P.Eng.
Senior Engineer Specialist, Ontario Power Generation, Canada
Experience HydroVision International for yourself. REGISTER BY June 14 & SAVE $150.
USE PROMO CODE SAVE WHEN REGISTERING.
Visit www.hydroevent.com to register
1305REW_52 52 5/15/13 11:54 AM
POLICY & MARKETS: INVESTMENT TRENDS
WHO IS AND WHO IS NOT INVESTING
IN RENEWABLE ENERGY, AND WHY
Investment in renewable energy is changing, with those who were once the backbone of the market pulling out
and new entrants increasingly taking up the slack. Tildy Bayar looks at the latest trends in global renewable
energy investment markets.
R
aising funds in the renewables sector is more challenging
than elsewhere, claims Adam Workman of investment frm
CT Investment Partners. He cites many important reasons for this:
investors have traditionally shunned regulation-driven markets;
the renewables sector is complex and contains a diverse range
of technology challenges; renewable frms are capital-intensive
businesses; competition is scattered across the globe; there are few
experienced deal leaders but a range of follow-on investors; and
fnancial returns to date have been mixed. Investors want companies
that can deliver sustained future growth.
However, according to Workman, a globally competitive
technology, or an initial product that has been demonstrated with
customer traction, will attract investment, even though it is likely
to need several rounds of fnancing. Investors like the supply chain
and energy effciency services of renewables projects because they
require less capital and are quicker to produce cash fow. Small-
scale infrastructure projects are also popular because they meet
equity funding requirements with secured revenue streams, he says.
WHO IS INVESTING?
India is the worlds fastest-growing renewable energy market. Since
2012 it has had the best of both worlds, says Sanjay Chakrabarti,
partner and cleantech sector leader at Ernst & Young, with
independent power producers (IPPs) largely backed by big private
equity frms and taxpayers making up a large market. But when
the incentive for wind generation was removed in April 2012, the
taxpayer market exited en masse. Chakrabarti says the IPP market
has grown but overall investment has dropped signifcantly. The
wind generation incentive was restored in February.
Worldwide, pension funds and life funds are increasingly
investing in renewables. These funds value stability over high returns,
so few invest at early stages. Adrian Reed, head of energy, waste
and renewables at international investment bank Altium, adds that
pension funds want assets that become cash-fow yielding, with
stable, predictable internal rates of return (IRR).
Reed says the main investors in large-scale European projects
are major power utilities, IPPs who dont have front-end distribution
of retail power but play in the wholesale market, such as Vattenfall,
Dong and Statkraft, all of whom are investing either off their balance
sheets or alongside big infrastructure funds and debt fnance.
In the offshore wind sector, Reed adds, IPPs make strategic
decisions to supplement investments in coal, gas or nuclear.
India is the worlds fastest-growing renewable energy market and the wind generation incentive was restored in February.
DAVID APPLEYARD
TREND SPOTTING
IN RENEWABLES
INVESTMENT
1305REW_53 53 5/15/13 11:54 AM
CASE STUDY: ITALIAN INVESTMENT
Fuelled by generous incentives, growth in the Italian renewable
energy industry especially solar PV has been astonishing.
But as the debt crisis ripples through the economy, will
investment trends maintain historical levels while shifting to
other renewable energies or fow away from Italy and in to
emerging markets?
Installed solar PV capacity shot from 3.5 GW in 2010 to
12.8 GW in 2011 as installations roughly doubled to 330,196.
By comparison, wind power capacity only increased from
5.8 GW to 6.9 GW and bioenergy from 2.35 GW to 2.83
GW. Most PV capacity increase came from plants 5 MW as
capacity of installations of > 5 MW increased from 354.3 MW
to 1.3 GW.
Early this year the Gestore dei Servizi Energetici (GSE),
the Italian agency supporting the development of renewable
energy, recorded 16.4 GW of installed capacity at a
cumulative cost of 6.5 billion, close to the 6.7 billion ceiling.
Since 2005, the Conto Energia or FiTs have been the
primary incentive mechanism for solar energy but shadows
have been looming since mid-2011 when the 4th Conto
established review provisions once cumulative costs reached
6 billion. The ffth iteration of FiTs approved in July 2012
was to come into effect after 45 sunny days. As successive
heatwaves swept across Italy, the 5th Conto became law on
27 August, 2012. The surprise came in October when GSE
published the list of qualifying projects in alphabetical order
rather than according to priorities established by the 5th Conto
the established limit of 140 million hadnt been reached.
Apart from establishing Italy as ffth in the world for
electricity production capacity from renewable sources
excluding hydro, the incentive mechanisms were instrumental
in attracting investment. In 2011, Italy attracted US$29 billion
in renewable energy investment claiming a global frst with
respect to investment intensity (clean energy investment per
$ GDP). It ranked frst in the world for its $24.1 billion of Small
Distributed Capacity investment (the magnet being solar PV).
But asset fnancing of renewable energy registered a 31%
decline compared to 2010, according to investment data by
Bloomberg New Energy Finance.
Italys Unicredit Banking Group is a major fnancier of
renewable energy in Italy. Larger renewable energy projects
are fnanced through leasing and project fnancing. Bloomberg
ranked it among the worlds top 10 lead arrangers of project
fnancing in both 2010 and 2011. In 2011 it participated in
31 deals with a disclosed value of $1.17 billion, of which
fve were located in Italy. However, the largest proportion
of Unicredits renewable energy fnancing is done through
its Unicredit Leasing unit. Leonardo Cartei, the companys
business development manager, told REW that leasing is the
fnancing tool most often used throughout Italy for renewable
energy projects. Total investment volumes on renewable
energy projects fnanced in Europe through Unicredit Leasing
increased from around 1 billion in 2010 to 1.4 billion in
2011. Of the 470 deals closed in 2010, approximately 830
million was allocated to solar PV with Italy taking the lions
share of 750 million.
Though the company has focused on PV for the past two
years, Cartei is optimistic about other segments. In 2010-
2011 the funding was mostly related to PV projects but we
expect wind/hydro/biomass will grow to at least 30% of the
total projects funding in 2012 and more than 50% in the
upcoming years.
Cartei continues: We have provided a limited recourse
lease for an innovative revamping of a hydro plant in Bolzano,
Italy. We also approved a corporate lease for a power plant
using [waste] from an ethanol production [plant] with non-food
cellulosic as feedstock.
He adds, We see good prospects from the 5th Conto
Energia for small wind plants up to 60 kWp and small-
hydro and biomass, with special interest in waste-to-energy
plants up to 100 kW. We always value the bankability from
a dedicated, single project perspective but its true that the
leasing products are a good ft for small-to-medium size
investments of up to 7-8 MWp.
Cartei concedes that the economic crisis has had an
impact on borrowing costs: Recently we faced a decrease in
base reference interest rates but also a higher rise of liquidity
costs which drove a signifcant increase on overall borrowing
costs. But he adds that within the renewable energy sector,
this increased cost is counterbalanced by a decrease in capital
expenditure costs especially for PV but also for wind and
bioenergy. Making an investment in renewable here seems to
be still proftable and is welcomed from our side.
While Unicredit can diversify, industry associations paint
a cloudier picture for PV. The Association of Renewable
Energy Technologies (ATER) warning that the 5th Conto
is set up to be an evident failure, rings alarm bells for the
enormous contraction in the number of small installations
(20 kW-400 kW). Larger installations account for half the
capacity but less than 10% of projects.
ATER claims the register opened too soon, without time
for the market to absorb its implications and requirements.
Assosolare, (the National Association for the Solar PV Industry)
too feels that the fnal decree is watered-down. Apart from
the decrease in FiTs, it points out that installations larger than
12 kW now face more bureaucratic requirements, placing
them between obtaining bank fnancing and being selected
by GSE. In a moment of general crisis, one would expect
a re-equilibrium with respect to support rather than punitive
measures, it objects. But even if clouds are gathering for
solar PV, the sun is still shining elsewhere: In January, 2013,
incentives of 900 million were offcially published in the
Gazzetta Uffciale as part of the so-called Conto termico to
stimulate thermal renewable energy.
Rachana Raizada
1305REW_54 54 5/15/13 11:54 AM
Although the offshore market is less mature than onshore, there
is real volume and a diversity of investors. Theres new money
coming into the industry, too, which Reed says should recapitalise
developers and investors. The more mature the assets are, he
adds, the more they can move into traditional markets such as the
bond market, or part of a portfolio treasury bonds, wind farms,
property.
In the onshore wind market, Reed continues, as well as
professional development teams within large utilities, there are
many smaller investors who have backed one site and got lucky:
You have landowners, property developers, property consultants
and estate agents moving to start to play in that market. Then you
see private individuals, angel investors and community groups.
Reed also describes a virtuous circle at play. As certain
segments of the renewables market mature, as support mechanisms
for assets improve and as understanding of asset value is refned,
more non-specialist investors enter the sector. But, he cautions,
different types of buyers value different types of criteria for different
types of assets: You have to match investor category with type of
asset. Smaller entrepreneurial investors are more able to make an
assessment about what they buy, as opposed to life and pension
funds, which are very structured and systematic in the types of
assets theyre prepared to hold, he explains.
The larger the assets and the stronger their performance track
record, the more likely they are to attract non-specialist investors,
pension or life funds being the classic example. This is at end of the
continuum that starts to recycle into the industry and free up more
capital for more development, says Reed.
According to Ian Thomas of investment management frm
Turquoise International, For any particular deal or investment over
the last three to four years, you have to look widely for investors
because the policy backdrop isnt helpful. He fnds investment
increasingly coming from outside the traditional sources of specialist
renewables or cleantech funds and also sees a lot of interest in
the sector from high net worth individuals and family offces: We
see investment from corporates and we see money from public
sources, quite a varied range of different entities. These include
government-related funds such as sovereign wealth funds.
Thomas says investors in Asia, especially in China, are looking
for specifc things, for example technologies that can be deployed
back in China. This learning or transfer exercise arises because
they have opportunities in the home market but not the expertise to
develop their own projects.
According to Thomas, some investors who have been in the
renewables sector since the early or mid-2000s have failed to make
expected returns and have withdrawn. But, he says, new investors
are still arriving, people who didnt focus on the sector as early or
decided to adopt a wait-and-see approach. It is a buyers market
now, says Thomas, so if you have the money to invest, why not?
WHERES THE MONEY GOING?
Reed believes that one of the challenges is that mid-level investment
is missing from the global picture. There are very large transactions
at utility scale, he says, in which people aim to invest in big fxed
infrastructure, and then there are small applications, such as
microgeneration, and very little in the middle.
The low end of the spectrum is a much less well understood
PVSYST SA
107 route du Bois-de-Bay - 1242 Satigny - Switzerland
admin@pvsyst.com
available on www.pvsyst.com
NEW FEATURES
aavailaable oon www w om .co yst. vsy w.pv w
Detailed electrical shading losses
Improved shading calculations
New simulation management
PV modules management
Sandia Model for PV modules
Inverters new features
Batch mode (optimizations)
Designed for engineers, architects,
researchers, education
1305REW_55 55 5/15/13 11:54 AM
market, says Reed. How do you get small-scale biomass plants
developed, or new technologies? In terms of returns versus risk,
people are more wary if theres less of something. 1.5 MW to
10 MW PV plants involve additional risk factors since there are fewer
of them. They dont catch the non-specialist mainstream asset
acquirers interest. He adds that biomass and waste-to-energy
plants are seeking pension and life funds.
Workman says the money is going to companies that already
have investors and have made it to the point of trial or demonstration.
Its those companies that have capital, he says, while companies
looking to raise money for the frst time, or to scale up, are fnding
it harder: The same pot of money is going to fewer companies,
which tend to be more established, rather than the money being
invested in one technology over another. If you look by quarter, one
technology may do better, but thats due to one to two very large
deals. Over a two year period its diffcult to see any big trends. The
trends are more in terms of smaller renewable technologies: mini
and micro-renewables and large-scale offshore, he says.
THE TRENDS
Trends on the ground depend strongly on which bit of the overall
sector you look at, says Thomas. In Spain, for example, fnancial
pressure on the government has lead to policy changes. Even
German reductions in solar subsidies, although not of Spains
magnitude, have had consequences for investors. In the UK, solar
and biomass have had their ups and downs: In biomass there will
be policy clarity on one issue but then there are still two to three
others to be clarifed, so projects are on hold.
According to Thomas, there is less subsidy money around at the
moment and people are less trusting that subsidies will continue.
So in the long term he sees other commercial propositions as more
interesting to an investor, such as waste-to-energy and geothermal.
He also sees a huge interest in storage technologies.
No matter which part you focus on, says Thomas, clean energy
is still a new sector with teething issues; big investors need to see a
new investment class mature over 5-10 years from when they frst
start to look at it to decide whether to invest.
When asked to identify the most interesting investment trend,
Thomas points to an increased focus on propositions with purely
commercial payback rather than those that depend on direct
subsidies. This is a continuing persistent trend, he says, adding:
Now there are more commercial people who established a business
track record in unrelated sectors and who see opportunity and can
bring to investors their experience and business models that are
robust, commercial and interesting.
Chakrabarti also believes that a better quality of business
is emerging: The good news is that the IPPs are professional
companies coming in with the objective of setting up quality assets,
meaning the quality of industrial development will see a signifcant
improvement.
POLICY CLARITY
Thomas points out that for every country in which the policy
environment is less favourable, another arises with an active
programme. In South Africa there is large-scale renewables
development right now, he says; China is clearly still adding huge
amounts of wind capacity each year. The US is still a market,
although theres still some political uncertainty now in the process
of sorting itself out.
What scares investors is regulatory risk and policy changes,
says Workman: Uncertainty is the thing they hate. Even if rates
change more than expected, he says, stability for 12-24 months as
a minimum will see investors invest. Many projects have lead times
of 36 months.
However, policy clarity is not necessarily a good thing, says
Thomas: When attractive tariffs were on offer, the cost side of the
equation came down signifcantly. Valuations became stretched,
and investors started to fle in. [Policy] was all very clear, but when
everyone was looking for solar investments other sectors were
starved of funds. But his frm is seeing this trend reversing somewhat
as investors have looked for a better risk-return balance.
LOST GENERATION
According to Workman, between debt project fnance and
technology development, which are the two aspects banks focus
on, the frst is dominant today and companies have set aside the
second: If the commercial market isnt investing in that side and
there isnt signifcant government funding, what will happen to those
businesses? Will there be a lost generation? It is happening now. With
the current level of nervousness, were seeing growth more around
energy effciency than renewables, which leads to the question: are
we missing a generation of renewable energy technology developers
because of a lack of capital in the marketplace?
Workman points to a trend that has established itself over the
past two or three years: Companies continue development but on
very low levels of capital. The most obvious market in this regard is
marine energy. A number of technologies have now gone beyond
commercial trials and need to move into the frst commercial farms,
and as yet funding hasnt materialised.
Tildy Bayar is Associate Editor of Renewable Energy World
magazine.
Installed solar PV capacity in Italy shot from 3.5 GW in 2010 to
12.8 GW in 2011
EMERSON INDUSTRIAL AUTOMATION
1305REW_56 56 5/15/13 11:54 AM
POWER GENERATION WEEK
NOVEMBER 1214, 2013 | ORANGE COUNTY CONVENTION CENTER | ORLANDO, FL, USA
Covering every aspect of the power generation industry, POWER-GEN International, NUCLEAR POWER International,
Renewable Energy World Conference & Expo North America and POWER-GEN Financial Forum converge in 2013 to
form POWER GENERATION WEEK. Beneft from fve days packed with pre-conference workshops, technical tours,
over 70 conference sessions, panel discussions, three exhibition days and multiple networking events. Like never
before, youll have access to nearly every facet of the market all under one roof.
4 Events. 5 Days. 1 Roof.
Owned & Produced by Presented by Supported by
www.PowerGenerationWeek.com
1305REW_57 57 5/15/13 11:54 AM
T
hroughout the 2000s, the emerging wave and tidal stream energy
industries operated as a unit. Together they embarked on the
journey across the valley of death towards commercial maturity,
facing shared challenges such as grid connection, permitting and
securing R&D support.
Nowhere has this alliance been more apparent than in the UK,
the leading marine energy market globally and a market fortunate
enough to possess signifcant wave and tidal resources. Working
together, wave and tidal developers realised that collectively they
could speak with a louder voice in support of their common interests.
Although Scotland has offered differentiated revenue support to
wave and tidal in the past, at the UK level policymakers have largely
treated them equally.
It is true that wave and tidal devices have a lot in common: both
are pre-commercial power generation technologies operating in the
marine environment. Their relationship has been so close that the
general public and press often mistakenly treat wave energy and
tidal energy as interchangeable terms.
SWIMMING AGAINST THE TIDE
But more recently the wave and tidal relationship has been tested. In
particular, differences in technology maturity have become apparent.
Although wave energy has made remarkable progress in recent
years, tidal technology has benefted from both engineering
crossover from its wind-based cousin and the earlier involvement
of multinational system integrators. The combined value of these
benefts is refected in tidals current levelised cost of energy
(LCOE). Costs vary substantially from device to device but the
UK trade association, RenewableUK, believes that the current
levelised cost of energy of leading tidal stream devices is around
300 (356)/MWh, compared with roughly 400 (474)/MWh for
wave devices.
This has given tidal projects the edge in recent funding awards for
UK-based demonstration projects. Tidal beat wave 40 in UK funding
announcements under the EUs so-called New Entrants Reserve
NER300 scheme to fund low carbon technologies and Marine Energy
Array Demonstrator (MEAD) see Table 1, below.
THE LAST
WORD
Felicity Jones and Robert Rawlinson-Smith challenge
the assumption that wave and tidal stream energy should
be placed in the same funding basket. The time has come
to show greater sensitivity to the differences between these
technologies, they argue.
WAVE AND TIDAL ENERGY
NEED DIFFERENT POLICIES
Table 1. Funding awarded to UK projects for frst array demonstrations
Funding programme Award timing Successful projects Tidal Wave Funding
European Union New Dec 2012 Kyle Rhea Tidal Turbine Array, MCT X 18.4 million
Entrants Reserve (NER300) Sound of Islay X 20.7 million
UK government
Marine Energy Array Feb 2013 Meygen Ltd X 11.8 million
Demonstrator (MEAD) Sea Generation Wa les Ltd X 11.8 million
Total 62.7 million
* Note: Although not a UK project, Ireland was successful in winning 19.8 million for its Westwave project under NER300.
1305REW_58 58 5/15/13 11:54 AM
THE LAST WORD
The tensions between wave and tidal are set to increase in July,
when the UK governments initial view on future revenue support (the
strike prices of Contracts for Difference, or CfDs) will be published.
The higher levelised cost of wave energy means that greater
support will probably be necessary for wave projects than for tidal.
But achieving CfD funding levels for wave which fairly refect its cost
will be politically challenging. Policymakers instinct is to offer wave
and tidal the same support levels, and government faces intense
pressure for CfD strike prices to be as low as possible to minimise
the impact on consumer energy bills.
Taken in combination, the recent MEAD and NER300 funding
announcements, along with ferce CfD debates, mean that 2013
could be the year that the UK wave and tidal relationship reaches
crunch point.
If wave technologies fall further behind, it will be increasingly hard
for them to catch up and commercialise. Wave energy could be left
swimming against the tide.
STILL IN THE RACE
Although tidal might have recently edged ahead of wave energy, it
would surely be a mistake to leave wave to founder. Whilst converting
wave energy into electricity is undoubtedly a complex engineering
challenge, this is nonetheless a technology of great promise.
The appeal of wave energy is clear: the untapped resource is huge.
A recent study from E.ON, Quantifying the Potential Global Market
for Wave Power, estimates the global resource to be in excess of
2000 GW more than 40 GW of which is in the UK.
As wave energy is developed and deployed globally, costs can
be expected to fall, due to learning by doing and the effciencies
of volume production. Add to this the fact that many wave sites can
be of utility-scale, and that the resource is close to demand centres
in many maritime countries, and wave energy looks like an attractive
long-term proposition.
It is no surprise, then, that governments around the world not
least in the US and Australia are actively supporting the emerging
wave sector. The close interest shown by utilities confrms that wave
is seen as a strategic technology for investment.
A number of UK technology developers are well positioned to
beneft from this global opportunity but their success hinges on
the continued policy attractiveness of their home market. The
comparison of Denmarks wind turbine manufacturing industry with
the UKs missed opportunity in the 1980s underscores the importance
of strong policy support in the early years in order to reap later
export benefts.
DARE TO DIFFERENTIATE
A change in UK policy approach is now needed to ensure that
both wave and tidal technologies fulfl their potential. It is no longer
appropriate for wave and tidal projects to vie for the same funding
pots as occurred with the MEAD. Instead, differentiated funding
support is required.
For wave energy, further R&D funding is needed to improve the
technology risk profle; following this, capital support schemes similar
to MEAD should be available when the industry is ready. For tidal,
new funding priorities may emerge; for instance, the provision of debt
fnance via the Green Investment Bank could be particularly benefcial
in de-risking investment in the frst tidal arrays.
Industry must realise that the articulation
of difference is not a sign of discord. To the
contrary, the argument for differentiated
support has already been won.
Furthermore, it appears that the pioneering wave arrays will
initially require greater fnancial support under the new CfD system
than tidal projects. This should not be done apologetically; it should
be done in recognition of the global export opportunity that wave
power represents.
Of course, in other areas collaboration continues to make sense
not least permitting, grid and public engagement efforts. It may also
be advisable in multi-national forums, such as in the EU, where wave
and tidal energy need to buddy up to grab political attention. But at
the level of UK funding support, a differentiated approach is needed.
The wave and tidal sectors are understandably nervous about
bifurcation, with the fearful maxim divide and conquer ringing in
their ears.
But industry must realise that the articulation of difference is not
a sign of discord. To the contrary, the argument for differentiated
support for pre-commercial technologies has already been won.
Internationally, it is common practice to provide technology-specifc
feed-in tariffs (FiTs). Similarly in the UK, fnancial support is banded
by technology to refect differing levels of maturity for instance,
offshore wind currently receives signifcantly greater support than its
onshore counterpart.
The political signs look promising: the UKs energy minister Greg
Barker has stated that If and when it is sensible to do so, we will, of
course, treat the wave and tidal stream sectors separately.
Minister, the time is now.
Felicity Jones is policy analyst and Robert Rawlinson-Smith
is head of wave and tidal energy business development at GL
Garrad Hassan.
e-mail: felicity.jones@gl-garradhassan.com
0
100
200
300
400
500
600
700
800
N
orth
A
m
erica
O
cean
ia
Sou
th
A
m
erica
A
frica
A
sia
Eu
rop
e
P
o
w
e
r

(
G
W
)

Annual mean wave resource
Electricity consumption
Wave power available (total resource, not extractability estimate)
compared to electricity consumption for continents. The error
bars show 95% confdence intervals.
KESTER GUNN/CLYM STOCK-WILLIAMS, E.ON
1305REW_59 59 5/15/13 11:54 AM
DIARY
Send details of your event to: Renewable Energy World rew@pennwell.com
HydroVision Internation 2013
Colarado Convention Centre
Denver, USA
23-26 July 2013
PennWell Corporation
1421 South Sheridan Road
Tulsa, OK 74112
Tim Chambers
T: +1 918-831-9704
E: tchambers@pennwell.com
ICOLD 2013
Seattle, WA, USA
12-16 August 2013
United States Society on Dams
1616 Seventeenth Street #483
Denver CO 80202
U.S.A.
T: 303-628-5430
F: 303-628-5431
W: http://icold2013.org
GulfSol 2013
Dubai, UAE,
3 5 September 2013
Gattaca Communications
T: + 44 (0) 203 239 6759
F: + 44 (0) 207 183 7196
E: enquiry@gattacaltd.com
W: www.gulfsol.com
Electric, Power & Renewable
Energy Indonesia 2013
Jakarta, Indonesia
4-7 September 2013
PT Pamerindo Indonesia
T: +62 21 3162001
E: wiwiek pamerindo.com
W: www.pamerindo.com
2nd elcom Rossija
Novosibirsk, Russia
17 19 September 2013
Fairtrade GmbH & Co. KG
Jana Hofmann
T: +49 6221 45 65 21
E: j.hofmann@fairtrade-messe.de
W: www.elcom-rossija.com

15th Renewable Energy Finance
Forum Europe
London, United Kingdom
18 September 2013 - 19 September
2013
Euromoney Energy Events
W: www.euromoneyenergy.com
Intersolar South America
So Paulo, Brasil
Solar Promotion International GmbH
T: +49 7231 58598-0
W: www.intersolar.net.br
HydroVision Brasil 2013
So Paulo, Brasil
1421 South Sheridan Road
Tulsa, OK 74112
Tim Chambers
T: +1 918-831-9704
E: tchambers@pennwell.com
GRCs 37th Annual Meeting & GEA
Geothermal Energy Expo
Las Vegas, NV, USA
29 September 02 October 2013
Geothermal Resources Council
2001 Second Street, Suite 5
Davis, CA 95618-5476 USA
T: Phone: 530.758.2360
W: http://geothermal.org/meet-new.
html
28th European Photovoltaic Solar
Energy Conference and Exhibition
Paris, France
1-3 October 2013
WIP - Renewable Energies
Sylvensteinstr. 2
81369 Mnchen
Germany
T: +49-89-720 12 735
E: wip@wip-munich.de
W: www.photovoltaic-conference.
com/
Renewable Energy World Asia
Bangkok, Thailand
2-4 October 2013
PennWell International Limited
The Water Tower,
Gun Powder Mills
Powdermill lane
Waltham Abbey
Essex
EN9 1BN
T: +44 1992 656 647
E:leec@pennwell.com
W: www.powergenasia.com
Renex Eurasia
Ankara, Turkey
15 18 October 2013
Hannover-Messe International
Istanbul Ltd.
Bykdere Cad. Sarli Is Merkezi
No:103 B Blok Kat: 5-6
34394 Istanbul, Turkey
T: +90 (0)212 3346900
E:info@sodex.com.tr
W: www.renex.com.tr
Solar Power International
Chicago, Il, USA
21 24 October 2013
Solar Power International
1530 Wilson Blvd., Suite 120
Arlington, VA 22209
E: info@solarpowerinternational.com
AsiaSolar PV Industry Exhibition
Shanghai, China
28 30 October 2013
Shanghai AiExpo Exhibition Services
Co., Ltd
Room 1309-1310, Building A, Fudan
Software Park, No.15 Changyi Road,
Shanghai 200441
T: +86-21-65929965 36411666
E:info@aiexpo.com.cn
W: www.asiasolar.cc/pv/en/
ISES Solar World Congress 2013
Cancun, Mexico
3-8 November 2013
Ixchel Viveros,
BP Servimed S.A. de C.V.
Barranca del Muerto # 520, Col.
Alpes, Del. lvaro Obregn.
Mxico D.F., C.P. 01010 |
T: (52) (55) 9171-9570 ext. 104
E:swc2013@servimed.com.mx
W: www.swc2013.org
Renewable Energy World North
America
Orlando, FL, USA
12-14 November 2013
1421 S. Sheridan Road
Tulsa, Oklahoma 74112,
T: +1-918-831-9704
tchambers@pennwell.com
EWEA OFFSHORE 2013
Frankfurt, Germany
19 21 November 2013
European Wind Energy Association
Rue dArlon 80, B-1040 Brussels,
Belgium
T: +32 2 213 1811
E: ewea@ewea.org
W: www.ewea.org/offshore2013
3rd EneR Event Gulf Solar Energy
Congres
Dubai, United Arab Emirates
20 - 23 November 2013
International fairtrade GmbH & Co.
KG
Ms Kim Wolters
T: +49-62 21-45 65-13
E: k.wolters@fairtrade-messe.de
W: www.ener-event.com/ener_e.html
Advertisers index
ACORE AMERICAN COUNCIL ON
RENEWABLE ENERGY 38
AMERICAN WIND ENERGY ASSOCIATION 29
BECHTEL 4
CG POWER SYSTEMS BELGIUM NV 15
DISTRIBUTECH AFRICA 2013 41
EUROMONEY EVENTS 20
HAMBURG MESSE 48
HYDROVISION BRASIL 2013 43
HYDROVISION INTERNATIONAL 52
HYTORC, DIVISION OF UNEX CORP. 9
INGETEAM SA 13
LOUGHBOROUGH UNIVERSITY 17
MTU FRIEDRICHSHAFEN GMBH 16
MULTI-CONTACT AG 18
NAVIGANT CONSULTING INC. 47
NEXANS 7
NORTHERN STATES METAL 32
POWER GENERATION WEEK 57
POWER-ONE INC. 11, BC
PVSYST SA 55
REED EXHIBITIONS JAPAN LTD. 23, 35
REW
ASIA
2013 51
REWNA 2013 44
SCHNEIDER ELECTRIC 3
SOLAR PROMOTION INTERNATIONAL
GMBH IBC
SPUTNIK ENGINEERING 25
TAYLOR & FRANCIS 24
UNIRAC IFC
ZF WIND POWER ANTWERPEN NV 31
Renewable
Energy World
Webcard
1305REW_60 60 5/15/13 11:54 AM
Register now!
North Americas Premier Exhibition
and Conference for the Solar Industry
Moscone Center, San Francisco
Tap into the incredible potential of the U.S. solar market
Connect with 650 international exhibitors and learn about
their latest technological innovations
Gain insights to advance your business
Take an in-depth look at the industry's hottest topics at our free workshops
Go solar at North America's most-attended solar event!
Co-located with
1305REW_C3 C3 5/15/13 11:39 AM
NO AD WILL CONVINCE YOU
TO BUY A UTILITY-SCALE INVERTER.
BUT DAVE MIGHT.
480-643-1919
THE NEW ULTRA 750, 1100, 1500kW UTILITY-SCALE INVERTERS
Even if this ad told you the Ultra has the fastest, multi-mode MPPT algorithm on
the market and a maximum efciency of 98.6% for high energy harvest. Or that
its 690V output and modular architecture means signicantly lower installation
costs and high system availability. Or even that we offer a fully-integrated skid
solution, it still might not convince you. Because we know that for a complex
utility-scale solar plant you need to be able to have deep technical interaction
with people you trust who can help you make smart product decisions. Luckily,
we know just the guy.
Listed to UL1741 and 1000VDC rated
Dave Wojciechowski
Vice President
1305REW_C4 C4 5/15/13 11:39 AM
NEW DEVELOPMENTS IN
OFFSHORE TECHNOLOGY
BOOSTING SMALL WIND
INVERTER PERFORMANCE
REPOWERING VETERAN TURBINES
FEATURES
BATTERY STORAGE MOVES WIND TO BASELOAD
SERVICE LIFTS TAKE WIND HIGHER
WIND
TECHNOLOGY
Wind Technology is a Supplement to Renewable Energy World May-June 2013
0305REWWindTech_C1 1 5/10/13 3:05 PM
Create the perfect wind economy
with every turn.
Creating the perfect wind economy starts with the drivetrain. The perfect drivetrain
should help turbines produce more megawatts, more economically; provide the
exible technology to meet the grid code needs of today and tomorrow; deliver
durable, reliable performance and be backed by easily available global life cycle
services. At ABB, these goals are the foundation of our electrical drivetrain business,
and they help our customers produce more megawatts, more economically. To nd
out how we can add wind economy to your business, visit us at
www.abb.com/windpower
0305REWWindTech_C2 2 5/10/13 3:05 PM
1
WIND TECHNOLOGY SUPPLEMENT - MAY-JUNE 2013
May-June 2013
CONTENTS
REGULARS
From the editor 2
Tech notes 16
Whats new in the world of wind technology

FEATURES
Repowering veteran turbines 3
By 2020, swapping aging machines with more powerful modern units will have raised
annual electricity generation at refurbished sites from 1524 GWh to 8221 GWh. We look
at how replacing and repowering older turbines makes economic sense.
By James Lawson
Battery storage moves wind to baseload 8
The key to further wind sector success may be the ability to provide baseload power.
New lithium battery control systems can deliver convincing solutions to balance
winds variability.
By Snke Ingwersen
A larger future offshore 10
The latest turbines, associated equipment and manufacturing facilities reveal a drive for
dedicated 5 MW-plus offshore units and larger rotor diameters, suggesting what lies
ahead for the industry.
By David Appleyard
Service lifts take wind higher 12
As towers get larger, service lifts will likely be the principal nacelle access solution for the
majority of newly built wind turbines. For lift manufacturers, business is going up.
By Tildy Bayar
Optimised inverters to boost small wind 14
A new European research project aims to improve the performance of small wind
turbines with inverters designed specifcally for these applications.
By Tildy Bayar
Cover image: Infnergy
GROUP PUBLISHER Jim Callihan
SENIOR VICE PRESIDENT Richard Baker
CHIEF EDITOR David Appleyard
CONSULTING EDITOR Jackie Jones
ASSOCIATE EDITOR Tildy Bayar
CONTRIBUTING EDITORS Meg Cichon,
James Montgomery, Jennifer Runyon
DESIGN/PRODUCTION Kajal Patel
PRODUCTION DIRECTOR Mari Rodriguez
SALES MANAGERS Peter Andersen, Dan Harper,
Sandra Spencer
PUBLISHED BY PennWell International Publications
Ltd, The Water Tower, Gunpowder Mills, Powdermill
Lane, Waltham Abbey, Essex EN9 1BN, UK
TEL +44 1992 65 6600
FAX +44 1992 65 6700
E-MAIL rew@pennwell.com
A detailed supplier listing and other information
can be found at www.RenewableEnergyWorld.com
ADVERTISING For information on advertising in
future issues of the magazine, please contact:
PETER ANDERSEN on
+1 603 924 4405 ext 204, or
DAN HARPER on
+1 603 924 4405 ext 211, or
SANDRA SPENCER on
+44 1992 656 664 (direct)
or e-mail rew@pennwell.com
All rights reserved. No part of this publication may
be reproduced in any form or by any means, whether
or retrieval system without the prior written consent
of the Publishers.
While every attempt is made to ensure the accuracy
of the information contained in this magazine, neither
the Publishers nor the authors accept any liability for
errors or omissions.
SUBSCRIPTIONS Renewable Energy World, is
circulated free to professionals in the renewable
energy industry. To start a free subscription visit
www.rew-subscribe.com. Professionals outside
the renewable energy industry may start a paid
subscription. For pricing information visit www.
omeda.com/rew or call +1 847 559 7330.
Renewable Energy World, ISSN 1462-6381, is
published 6 times a year by PennWell International
Publications Ltd, The Water Tower, Gunpowder Mills,
Powdermill Lane, Waltham Abbey, Essex EN9 1BN,
UK, and distributed in the USA by SPP at 75 Aberdeen
Road, Emigsville, PA 17318 043. Periodicals Postage
paid at Emigsville PA.
POSTMASTER send address changes to Renewable
Energy World
REPRINTS if you would like to have a recent article
reprinted for a conference or for use as marketing
tool, please contact Rhonda Brown. Email:
pennwellreprints@fosterprinting.com. Tel +1 866 879
9144, extn 194 or direct line +1 219-878-6094.

PRINTED in the UK by Reaction on elemental
chlorine-free paper from sustainable forests.
0305REWWindTech_1 1 5/10/13 3:04 PM
2
David Appleyard, Chief Editor, Renewable Energy World
FROM THE EDITOR
A new fve-year forecast from the Global Wind
Energy Council (GWEC) predicts worldwide capacity
growing at an average rate of 13.7%, with cumulative
capacity expected to nearly double to 536 GW over the
forecast period out to 2017.
Although policy uncertainty in particular the PTC in the
US and European backtracking has been highlighted as
a cause for concern, encouragingly, new markets in Latin
America, Africa and the rest of Asia are nonetheless expected
to drive future global growth, the report notes.
Indeed, according to GWEC, after a year-long policy hiatus
in India, the market is expected to recover and return to
growth in 2014. Brazil continues to lead the Latin American
market and may surpass 2 GW of annual installations in
2013, and both Mexico and Canada are expected to grow
substantially over the period.
There are also hundreds of MW under construction in South
Africa, with another 500 MW expected to come to fnancial
close this year, leading a surge in installations in sub-Saharan
Africa which began in Ethiopia in 2012. Furthermore, Asian
markets such as Pakistan, Mongolia, the Philippines and
Thailand are all expected to see signifcant installations in
2013 and beyond.
This growing role for the developing world in sustaining
wind power growth over the coming years ties in with a key
discussion point raised in the report: the contentious issue of
local content requirements.
Often the expectation is that such requirements will ensure
the expansion of local manufacturing and supply chains
especially when the industry is in its infancy allowing for
technology transfer and creating green jobs.
However, GWEC argues that these rules often put a
signifcant burden on investors and the industry. Among
others, the report cites Brazil, noting that its early attempt at
a 60% local content requirement did not result in either the
development of a local industry or substantial growth in wind.
The trade group says that only when the proportion of
required domestic content is gradually phased in in stable
markets with suffcient potential and market size can such
policies work. Otherwise, they argue, domestic and foreign
investors and manufacturers will not be keen on investing in
domestic manufacturing where heavy-handed policy design
approaches tend to distort the market and raise prices.
However, whatever the delivery mechanism used, it should
also be conceded that, ultimately, the spread of technology
and manufacturing capacity in the developing world will
deliver a global pool of skilled workers and manufacturing
assets. Such diversity must lower manufacturing risk and
means a more fexible and adaptable industry. A growing
skills base also hints at innovations that can further accelerate
technology development and the cost depreciation of wind.
For sustainable success a truly global wind power market
must mean just that: truly global manufacturing and
worldwide technology development.
0305REWWindTech_2 2 5/10/13 3:04 PM

3
WIND TECHNOLOGY SUPPLEMENT - MAY - JUNE 2013
REPOWERING
By James Lawson
NEW LIFE FOR
OLD SITES
By 2020, swapping aging machines with more powerful modern units will have raised annual electricity generation at
refurbished sites from 1524 GWh to 8221 GWh. We look at how repowering older turbines makes economic sense.
REPOWERING VETERAN TURBINES
A 2 MW wind turbine coming off the production line with a rotor
diameter of 80 metres can generate four to six times as much
electricity as the 1 GWh annual yield of a 500 kW wind turbine with a
40 metre rotor built in 1995. This is the fundamental thinking behind
wind repowering.
Replacing old machines with fewer, larger and taller modern units
that are quieter, far more reliable and capable of producing vastly more
electricity is an activity that has increased signifcantly during the last
fve years, according to GlobalDatas 2012 report Wind Repowering.
The report says the value of the worlds repowering market will
Decommissioning the Nordtank turbine at Castle Pill Farm.
Infnergy
0305REWWindTech_3 3 5/10/13 3:05 PM
4
grow massively in the next fve years. In 2011 wind farms producing
around 183 GWh annually were replaced with turbines capable of
generating 774 GWh. But by 2020, repowering will drive an increase
in annual power generation at repowered sites from 1524 GWh to
8221 GWh.
Fifteen years ago many countries had just started installing
wind turbines but Germany, Denmark, the US and the Netherlands
already had a decent amount of wind capacity, says Prasad Tanikella,
GlobalData senior analyst. These wind energy pioneers are now at the
forefront of the repowering movement. And, as their onshore feets
age, Spain, Italy, Portugal, India and the UK are becoming repowering
hot spots too.
Theres no doubt its a vital and growing market, and the chief
driver is the vast improvement in turbine technology over the last
20 years, says Aris Karcanias, managing consultant with BTM Consult.
Replacing old technology with new turbines can raise yield by a
factor of two or more, depending on a multitude of factors.
Why repower?
The term repowering comes from the fossil fuel sector, where it
describes the complete or partial replacement of items like boilers,
turbines and generators to improve output and effciency, bring down
emissions and reduce operating costs. Leaving emissions aside, wind
repowering has similar goals.
With manufacturers warranty periods typically lasting between
eight and 20 years, the desire to avoid potentially expensive repairs
is a big motivation for replacing turbines that may still be working
perfectly well. Reliability drops dramatically with age and any scarcity
of spares also drives up O&M costs. As well as the far greater income
from increased generation, modern turbines fail far less often than
their predecessors, some past failures occurring even with new units.
Modern turbines also tend to run much more slowly and quietly
than their smaller ancestors, turning at 1020 rpm instead of
4060 rpm, so they have fewer issues with shadowing and bird
mortality. A 2007 study by the Alameda
County Avian Protection Program at the
Diablo Winds repowering project in Altamont
Pass, California found that fatality rates for
new turbines were 54% lower for raptors and
66% lower for all birds compared with older-
generation units operating alongside them.
Repowering also offers an opportunity
to relocate turbines to better integrate them
into residential areas. In the early days of
wind in mainland Europe, regulations let
developers build almost anywhere.
Modern turbines also have much
better grid compliance, something that
communities previously plagued by voltage
spikes and frequency shifts will appreciate.
It is worth noting that Germany made its
compliance rules stricter in 2009.
Looking at the numbers
So repowering maximises energy generation and updates a
countrys turbine feet to the latest technology standards, beneftting
developers and consumers alike. But like any renewable energy
project, the numbers have to add up to make it viable.
You have to look at the fnancial situation of the operating
site now and in the coming years compared to repowering, says
Christian Schnibbe, marketing manager at consultancy WPD. You
have to develop alternative scenarios for the site, considering the
effect of higher hub heights, modern turbine types and wind farm
layout optimisation.
All the costs of decommissioning old turbines and recycling their
components have to be considered, as well as the temporary loss of
revenue until the project is complete. Reselling the old turbines is one
way to offset development costs, and theres a thriving international
market in used machines.
Then there is the electricity infrastructure. If a developer raises
output from 10 MW to 60 MW, it may well need upgrading. How
much will that cost and will it be feasible at remote sites?
There are certainly alternatives to complete turbine replacement
that will improve reliability, such as retroftting modern control
systems. Theres also partial repowering, but this approach has
serious limits. You cant put a 3 MW nacelle on top of a 250 kW tower.
Any worthwhile increase in blade size will usually cause rapid wear in
gearboxes and other rotating machinery and bearings.
There are efforts like this going ahead, but most of the time it
makes more sense to replace the whole unit, says Karcanias.
Obtaining planning consent for taller replacement turbines
is fundamental. Consent can fatally weaken the main plank of the
business case if it is not forthcoming. Without the better wind resource
that extra height brings, the required multiples of energy production
are unlikely to materialise.
Planning a repowered wind farm is nearly the same as planning a
new project and has comparable risks, says Schnibbe. There is a risk
it will fail the permitting process.
REPOWERING
German examples showing the extra income from repowering.
DEWI

Example: Repowering 2013 Old WT (1998) New WT (2013)

Number of turbines 10 6
Rated per turbine 600 kW 3.05 MW
Total Capacity 6 MW 18.3 MW
Hub Height 50 m 99 m
Total Height 71.5 m 150 m
CASE A (Site with 125% of EEG reference yield)

Electricity Production 13.82 m kWh/a 5.00 m kWh/a
Feed-inTariff 2013 6.2 ct/kWh 9.76 ct/kWh
Revenue per Year 856,840 6,343,990
CASE B (Site with 100% of EEG reference yield)

Electricity Production 11.05 m kWh/a 52.00 m kWh/a
Feed-inTariff 2013 9.1 ct/kWh 9.76 ct/kWh
Revenue per Year 1,005,550 5,075,192
0305REWWindTech_4 4 5/10/13 3:05 PM
For ABB protecting the environment is a genuine priority, as witness our ISO 14001
certication obtained in 1998. We believe that wind generators represent the future
in renewable energy, thats why ABB sensors team puts its experience and know-
how at customers disposal. We work closely with them in order to have the right
product for their application, with improved immunity and compactness.
You have a dedicated application, we have a dedicated range. www.abb.com
Improve magnetic
immunity?
ABB France
Current & Voltage Sensors Departement
e-mail: sensors.sales@fr.abb.com
Absolutely.
REPOWERING
Repowering doesnt make the permitting any quicker in
Denmark either. The permitting process for a repowering project
takes much the same amount of time as a new project, three to four
years, says Arne Rahbek, Vattenfalls wind communication manager
for Denmark.
Though not always the case, residents close to a longstanding
wind farm often have a more positive attitude to replacing many old
turbines with fewer modern ones.
At Klim we had only fve small objections to the repowering
project, says Rahbek, referring to his countrys largest such scheme
yet. This would not have been the case in a new project.
Repowering is frequently a catalyst for ownership change, with
small wind farm owners selling out to developers. Large owners such
as utilities may also sell off smaller sites where repowering would take
up a disproportionate amount of management time. But changing
ownership means factoring the cost of compensating old investors
into the new projects fnances.
Most investors take a one-time payment that represents the
theoretical future income from the old turbines, adjusted for interest,
says Ingo Sebastiani, head of repowering at Juwi. It can be diffcult to
calculate the right price, and agreeing compensation with investors is
always a tricky discussion.
Subsidy support
Just as with new projects, the electricity price and the amount of
subsidy support is key in deciding whether to repower or not. It is
usually not possible to take on the old farms FiT and, with tariffs and
policies differing widely between countries, developers must look
closely at the market structure and any incentives.
A combination of investment-friendly subsidies and a substantial
number of aging turbines have made Germany and Denmark
todays leading repowering nations by a long way. In 2011 Denmark
accounted for around 51.6% of the total global repowered capacity,
ahead of Germanys 43.1%, according to GlobalData. Both have
offered specifc repowering incentives.
Denmarks frst wind repowering programme ran from 2001 to
2003. Owners of turbines smaller than 100 kW were able to install
three times the capacity removed and receive a bonus on top
of the normal FiT for the frst fve years. For units of 100 kW150
kW, owners could install twice the capacity removed and receive
the same treatment. Under this programme 1480 turbines totalling
122 MW were replaced with 272 new turbines of 332 MW in sum. The
second Danish repowering scheme ran from 20082011 and offered
a premium on top of the normal tariff for replacing up to 175 MW of
old turbines with new machines that had at least double the capacity.
However, one of the reasons for supporting repowering better
use of good wind sites often did not apply. Owners of old wind farms
could decommission their turbines and sell the resulting repowering
certifcates to other wind developers, who then applied the extra FiT
to new projects elsewhere.
0305REWWindTech_5 5 5/10/13 3:05 PM
6
REPOWERING
You just had to show you had decommissioned old turbines
somewhere in Denmark, says Sune Strm, chief economist at the
Danish Wind Industry Association. There was no geographical link.
According to Strm, the system distorted the market value
of old turbines and made the cost of compensating old investors
artifcially high. Today there are no specifc incentives for repowering
in Denmark.
The government removed the fnancial incentive for repowering
two years ago, says Rahbek. This has made repowering less
attractive. I cant say how much, but it has defnitely infuenced the
decision process.
Although Germany has edged ahead in repowered capacity, a
lack of subsidy certainly hasnt killed repowering in Denmark. One
recent Vattenfall project at Nrrekr Enge saw 77 old turbines
replaced with 13 new 2.3 MW Siemens machines, producing more
than double the power in total.
It shows that the economic case for repowering is there without
extra subsidy, says Strm. Its still expensive for the developer of
repowered wind farms to buy up the old turbines. Where the fnancial
case is marginal, it can stop the project. Its rare but it happens.
Repowering around the world
Vattenfall is currently scheduling Denmarks biggest ever onshore
repowering project at Klim. At Rejsby Hede in Southern Jutland,
the developer is planning to replace 395 Vestas turbines that
are 17 years old and rated at 600 kW each with 22 machines of 3
MW each. In fact, GlobalData predicts that by 2020 the Danes
will be replacing 200 MW of old turbines with 1 GW of repowered
capacity annually.
According to Rahbek, there are 4500 onshore turbines today in
Denmark. Its expected that the number of turbines in 2020 will be
3000, he says. We are cleaning Denmark, so to speak, replacing
old models with fewer but bigger turbines, and this is very positive
for the environment.
Germanys repowering boom started later than Denmarks but,
with high-wind sites at a premium, repowering now makes up a larger
and larger slice of its development work.
In Germany in particular, repowering is about making better
use of a limited amount of land and a limited number of good
wind-speed sites, says Karcanias. In 2012 there was around 540 MW
of repowering in Germany. Thats a signifcant amount given a total of
2.4 GW of new installations.
Its also a substantial jump over the 238 MW of repowered
capacity that Navigants BTM Consult quotes for 2011. Consultancy
DEWI confrms these fgures: 325 wind turbines totalling 196 MW
were pulled down in 2012 and directly replaced by 210 turbines of
541 MW in total, confrming Germanys ousting of Denmark as the
current repowering leader.
The potential is greater still. A survey in August 2012 by VDMA
Power Systems showed there are 3750 turbines in operation that
predate 2002 whose total capacity is about 12 GW. Germanys wind
industry association BWE predicts that the annual German repowering
market will grow to 1 GW over the next few years, worth around
1.5 billion in turbine sales.
Germanys 2009 and 2012 renewable energy laws encourage
repowering by offering a bonus of 0.005/kWh on top of the normal
FiT. Like Denmarks old scheme, the bonus is not geographically
restricted, so new projects qualify as long as the same number of
old wind turbines are dismantled elsewhere. Its future is looking
uncertain, however, with much political discussion about freezing the
FiT and stopping the repowering bonus completely.
One of the largest German projects is at Schneebergerhof in the
Rhineland-Palatinate region. Here Juwi has replaced fve Enercon
E66 1.5 MW turbines with fve 7.5 MW machines of type E126, the
largest operational wind turbine in the world today. These produce
more than six times the energy of the old turbines, around 20 GWh
annually instead of 3 GWh.
THE REPOWERING BONUS GIVES YOU
AROUND 80,000 EXTRA EVERY YEAR
AND 1.6 MILLION OVER 20 YEARS
The repowering bonus gives you around 80,000 extra every
year and about 1.6 million over 20 years, says Sebastiani. Thats a
lot of extra money that you can use to compensate the old investors.
The US comes third in the repowering rankings, with GlobalData
quoting around 135 MW of repowered capacity across 2011 and
2012. Big owners like NextEra Energy and EDF are ramping up
activity in California, where small capacity turbines of 25 to 30 years
of age abound. According to the American Wind Energy Association,
over 1500 old turbines have been repowered to date in the state.
At EDFs Shiloh IV farm in California, just 50 modern machines
replaced 235 100 kW turbines for an almost four-fold power increase.
Another project at Altamont Pass saw NextEra Energy replace 780 old
turbines with 34 Siemens 2.3 MW machines, additionally removing
9.5 km of electrical lines and about 13 km of road. NextEra plans to
replace at least 2000 turbines in the coming years.
With GlobalData predicting 9.5 GW of repowering potential by
2020, theres much more to do, but persuading smaller owners to
repower will be challenging. According to IHS Research, the top
30 US wind owners account for 60% of capacity over 20 years
old, with the remainder owned by very small companies and
even individuals.
In 2008 the California Energy Commission pointed to the need
for repowering incentives after fnding that continuing to operate
aging wind facilities was often more proftable for owners who only
replaced the most worn-out machines. Other forms of renewables do
get federal support, as is evident in, for example, the repowering of
fossil fuel plants with biomass systems. Beyond that, theres a mix of
state and federal tax breaks, with the main support still the PTC.
In India repowering is just getting started. Because of the
generally poor wind resource, turbines tend to be replaced by those
of a similar capacity, so theres little reason to repower anything but
life-expired farms. As the feet ages, around 100 MW of repowered
capacity should be built annually by 2020.
Theres no direct FiT support for repowering in the UK, and
projects have so far been limited to small farms like Goonhilly Downs
0305REWWindTech_6 6 5/10/13 3:05 PM
(5.6 MW to 12 MW), Carland Cross (6 MW to 20 MW) and the UKs frst
onshore site at Delabole (4 MW to 9.2 MW). But there are a growing
number of repowering candidates in the UK, and this type of project
is starting to become more interesting to developers. Infnergy
recently repowered its site at Castle Pill in Steynton, replacing one
old turbine with three new machines to take output from 0.5 MW to
3.2 MW.
Were increasingly looking at repowering as a source of projects,
says Matt Russell, senior project manager at Infnergy. We will be
looking at repowering the UKs 1990s feet over the next 510 years
and are very keen to take on peoples old sites.
The message today is that repowering has hardly begun, and that
its future international potential is vast. GlobalData predicts that by
2020 there will be 54.7 GW of eligible capacity, of which only 20 GW
will have been replaced.
Author Details
James Lawson is a freelance journalist focusing on the energy sector.
This article is available on-line. To comment on it or forward it to a
colleague, visit: www.RenewableEnergyWorld.com
REPOWERING
So where do all the old turbines go?
Selling the old turbines from a repowered farm can signifcantly
offset other project costs. Well-maintained turbines can run for
many further years and the buying market is international Vietnam,
South America, Romania, Bulgaria, Poland, Turkey with second-
hand turbines sold directly by the new developers or via specialist
intermediaries. Projects with certain grid or height limitations in
countries like the UK are also willing buyers of pre-owned turbines.
But not all decommissioned turbines will end up being
re-used and the reconditioning cost has to be compared with the
eventual sale price. This market is volatile and, as more old turbines
have come onto the market, so the prices on offer have fallen.
At Schneebergerhof, we were able to sell the old 1.5 MW turbines
for more than 500,000, says Sebastiani. Today, the market is
full of old turbines and we would probably only get 200,000 to
250,000. We dont normally include the selling price of the old
turbine in the fnancial calculation. If we get a good secondhand
sale price, then thats the icing on the cake.
Prices are determined by the market and are always going
up and down, says Henk Van den Bosch, managing director of
Windbrokers, a Netherlands-based turbine reseller. There are
some models like Vestas V47 and V52 which are always in demand.
Van den Bosch says he is particularly interested in the more
youthful turbines coming out of todays repowering boom.
There are lots of turbines which are prematurely replaced by
bigger turbines and these are typically no more than 12 years old.
These are the ones that are interesting for a second life in countries
where space limitations are not an issue.
0305REWWindTech_7 7 5/10/13 3:05 PM
8
ENERGY STORAGE
WIND TECHNOLOGY SUPPLEMENT MAY - JUNE 2013
By Snke Ingwersen
The key to further wind sector success may be the ability to provide baseload power. New solutions based on lithium
batteries can deliver convincing foundations to balance winds variability.
BATTERY STORAGE STEPS UP
For more than two decades, practitioners have been developing
control solutions to make operating wind energy plants more effcient.
One of the latest projects commissioned by a Chinese operator was
dedicated to energy storage. In China, feed-in regulations stipulate
that 10% of the power installed from wind energy plants must be
available via energy storage at any time for two hours.
Norbert Hennchen, managing director of Freqcon in Walsrode,
Hannover, Germany says lithium batteries possess the greatest
technological potential with regards to saving energy, and therefore
the ability of renewable energy sources to provide baseload power.
The topic of storing renewable energy is currently on trend and
is being discussed and implemented on many fronts. Energy density
plays a big part in this. Pumped storage plants deliver approximately
0.5 kWh/m3 from an assumed drop height of 200 metres; in contrast,
hydrogen plants deliver 5002300 kWh/m3. With the latter, however,
the effciency of the energy supply is comparably low. Lithium battery
systems are right in the middle, achieving approximately 125400
kWh/m3 and up to 2500 kWh/m3 under laboratory conditions.
When on the subject of effciency, Hennchens eyes light up: Such
energy storage achieves values between 90% and 95%, he says.
Sophisticated control technology ensures sustainability
One reason is that when loading and discharging the cells, power
dissipation is only around 1%. Each cell which is built to a standard
version has a voltage of 3.2 V and delivers around 1000 Ah. The cells
themselves measure 560 mm x 356 mm x 130 mm. If you connect
300 of these in a row, there will be a voltage of around 1000 V. This
voltage feeds water-cooled inverters, like the ones the Chinese plant
construction frm are developing and building.
We dont build these power stacks under 1 MW any more, explains
a physicist working on the project. The energy industry doesnt need
extreme power density, he continues; it is much more interested in
storing large amounts of energy. For the project in China, Freqcon has
developed a system which delivers 5 MW for two hours with the help
of 1280 lithium cells. But control technology is an important factor
in the long-term stability of this solution. In Hennchens experience,
If you remain around 10% away from the maximum when loading
and discharging the batteries, you can achieve double the number
of cycles.
According to researchers, with 7000 as an assumed number of
cycles and with daily loading and discharging of the batteries, they
could have a service life of 20 years. Moreover, it must be ensured
that individual cells are not overloaded. Since all cells behave in
the same way at under 90% of load capacity, then beyond that,
resistors must be individually installed in order to ensure that further
charging proceeds consistently. In order to achieve this, we have to
Each lithium battery pack cell can deliver up to 1000 Ah.
Siemens
MOVING WIND
TO BASELOAD
0305REWWindTech_8 8 5/10/13 3:05 PM
9
ENERGY STORAGE
monitor each individual cell metrologically, for example, the physicist
explains. For this purpose, each cell contains specially developed
measurement technology, which measures the temperature, voltage
and balancing.
Energy storage requires fast data speeds
In a cabinet with one of the respective decentralised peripherals, there
are around 40 individual battery modules. Data from the peripheral
travels to the higher-level control via Profnet. One battery block
stores 1 MWh of electrical energy; therefore, for the project in China,
fve blocks will suffce. To control these fve blocks, due to the high
data speed necessary, the Profnet protocol is used rather than the
more typical internet (TCP/IP) protocol. Energy supplier requirements
with regard to reaction times for storage systems are extremely high.
A reaction time of 20 microseconds and an 80% system availability
after 60 microseconds is not unusual, Hennchen reports.
CONSISTENCY AND EFFICIENT,
FUNCTIONING COMPLETE SYSTEMS ARE
THE KEY TO SUSTAINABLE SUCCESS
Energy reaches the batteries and the medium voltage grid via
specially-developed water-cooled inverter systems (IGBT). A PC also
takes over the control of the inverter. Hennchen explains: With a
reaction time of 250 microseconds, this solution is as quick as we
need for our frequency converter.
Communication here also takes place via Profnet. Data transfer
from battery storage to the PC takes place in real-time mode, while
from the PC to the individual inverter takes place in IRT (Isochronous
Real Time) mode. At this point real-time ability is required, and
synchronisation must be extracted using time stamps.
In both computer systems there is an integrated web server which
makes remote service possible. That is also an important feature,
without which the wind energy industry would no longer work,
says Hennchen.
Factors for success: consistency in automation technology
Battery units are connected electrotechnically via a central control
cabinet. A circuit breaker takes over with overload and short-circuit
protection. The control electronics are supplied by a 24 V power
supply. Visualisation is undertaken by open architecture software. We
can see great advantages in this consistent concept based on the
model of Totally Integrated Automation (TIA), Hennchen adds. For
him, consistency and effciently functioning complete systems are the
key to sustainable success.
Work on Hennchens next project will be closer to home. He
intends to develop a microgrid as part of a research project, which
consists of 1.5 MW of installed wind energy, 2.5 MW of solar energy,
and energy storage of 10 MWh.
With this, many remote places on earth could be supplied with
clean energy in a decentralised and stable way for example in Tibet,
where there is no central energy supply grid but many small grids fed
by diesel generator sets. Hennchen sees a great future in the effcient
storage of electrical energy, which he wants to actively shape: With
high-tech battery systems, wind energy amongst others can provide
base load power effciently and economically.
Author Details
Snke Ingwersen is director of sales and support centre, wind at
Siemens Industry Automation.
Each individual battery cell has to be monitored. Communication with the
control takes place via Profnet.
Siemens
High-tech battery storage with a promising future
Several types of batteries are used for large-scale
energy storage, although there is currently no leading
industry solution. Lead-acid batteries use a liquid electrolyte,
storing rather small volumes of energy but they are reliable
and, above all, cheap. In renewable energy systems multiple
deep-cycle lead-acid (DCLA) batteries, which provide a steady
current over a long time period, are connected together to
form a battery bank.
In a dry cell battery, electrolytes are contained in a low-
moisture paste. Lithium-ion (li-ion) batteries in particular are the
subject of much interest as they have a high energy density.
Flow batteries can respond within milliseconds and deliver
signifcant quantities of power. The active chemicals are stored
in external tanks, and when in use are continuously pumped in
a circuit between the reactor and tanks.
Vanadium Redox Batteries (VRBs) are a particularly clean
technology, with high availability and a long lifecycle. Their
energy density is rather low about 40 Wh/kg though recent
research indicates that a modifed electrolyte solution produces
a 70% improvement in energy density.
0305REWWindTech_9 9 5/10/13 3:05 PM
10
BLADE MATERIALS
10
OFFSHORE: NEW TURBINES
A WINDOW ON
THE FUTURE
The latest turbines, associated equipment and manufacturing facilities reveal a drive for dedicated 5 MW-plus offshore units
and larger rotor diameters, suggesting what lies ahead for the industry.
LARGER TURBINES IN DEVELOPMENT
With over 5 GW of global installed capacity, representing about 2%
of total installed wind power capacity according to the Global Wind
Energy Council (GWEC)s latest market report, and with a whopping
80 GW projected to be installed by 2020, the offshore wind market
is picking up speed. In this second part of our look at the latest
developments in wind technology, we look offshore where larger
turbines are becoming the new normal.
For example, early in February 2013 Areva Wind
began installing its latest 5 MW offshore prototype, the
M5000-135, with 135-metre rotor, onshore in Germany
near Bremerhaven. The evolution of the existing
M5000-116 machine will see new 66 metre blades,
a swept area greater by close to a third reaching
14,326 m
2
and a tower of 135 metres. The new version
also has a lighter nacelle and additional improvements to
condition monitoring, Areva says.
Installation is due for completion in the third quarter
of 2013. The M5000 has a hybrid drivetrain and is being
tested offshore at the Alpha Ventus site off the North
Sea coast of Germany. Each nacelle is also tested on a
full-load platform before dispatch.
Serial manufacturing of the M5000-135 is expected in the
second half of 2014 and the company expects to have more than
120 machines installed in the North Sea by the end of the year.
In November 2012 Areva signed a memorandum of understanding
with Scottish Enterprise to develop a site for the manufacture of its
5 MW turbines in East Scotland as part of a strategy to establish three
main industrial hubs, the other two being at Bremerhaven and Le
Havre in France.
Meanwhile the frst of the
companys Haliade 150 machines
installed at the Le Carnet site in the
Pays de la Loire region of France has
begun fnal testing before certifcation.
It now operates at its nominal power of 6 MW.
The second pre-commercial wind turbine, which
was completed in the temporary workshop at Saint-
Nazaire, is due to be installed at the Belwind wind farm.
Alstom and the Belgian developer had previously signed
a cooperation agreement to install one Haliade 150 wind
turbine at the project near Ostend, some 45 km off the Belgian
coast. Offshore tests conducted here will target specifc marine
The 4 MW machine at the sterild test site
Siemens
By David Appleyard
0305REWWindTech_10 10 5/10/13 3:05 PM
11
operations and procedures and will complete the technical and
product performance. Alstom Wind Offshore VP Frederic Hendrick
said the company is particularly satisfed with the results of tests on its
Pure Torque rotor support technology concerning the stability of the
generators air gap. The tests confrm Alstoms decision to develop a
turbine with no gearbox, he says.
The company is expected to deliver 240 Haliade 150 units for the
Courseulles-sur-Mer, Fcamp and Saint-Nazaire wind farms in France
starting in 2016.
Alstom is also a member of a team led by Dominion Virginia Power,
which has been awarded a US$4 million grant by the US Department
of Energy to complete the engineering, site evaluation and planning
phase for an offshore wind demonstration project in the state of
Virginia. The DOEs advanced technology demonstration programme
aims to achieve large cost reductions over existing offshore wind
technologies, and could see the USs frst offshore wind projects enter
commercial operation by 2017.
Dominions proposal includes the installation of two Haliade 150
turbines about 35 km off the coast of Virginia Beach.
Gamesas new 5.5 MW machine, which it says is suitable for both
onshore and offshore use, will become available from the fourth
quarter of 2014. The prototype turbine in this family, the G128-5 MW,
features a rotor diameter of 128 metres and is based on the companys
4.5 MW machine. Design certifcation for its offshore machine is
coming from Det Norske Veritas and is based on a prototype being
installed in Arinaga Quay on the island of Gran Canaria. The frst
commercial machines are expected to be erected in 2014.
In addition to its 5.5 MW offshore system, the company says it
foresees 7 MW 8 MW offshore turbines in the medium to long term.
And currently alone in the 8 MW class comes Vestas. Mid-
December 2012 saw the company agree with DONG Energy on the
testing of the new V164-8.0 MW offshore machine at Test Centre
sterild in Denmark. Under the terms of the deal DONG will help
accelerate development of the turbine but will not now build one, as
previously planned, as a test and demonstration project. The reason
given is that access to the test bed and data at sterild makes a
second machine redundant.
Vestas expects the frst turbine to be commissioned in Q2 2014.
Major components of the frst prototypes are nearing completion
in Aarhus, Denmark and the Isle of Wight, UK, where the 80 metre
blades are being manufactured. The frst blade will be tested this
year, while the prototype hub has been cast and is ready for testing.
Meanwhile a complete drivetrain test bed for the V164 was
commissioned in early 2013 in Aarhus, and the generator and
gearbox are due to be testing-ready. The new machine, which has
a rotor diameter of 164 metres, initially launched at 7 MW but was
bumped up to 8 MW in October 2012. Vestas said that from the
beginning the platform was developed with the potential to increase
the turbine size.
The worlds leading offshore player, Siemens, has also revealed
a new machine, as well as progress on testing its 6 MW platform.
February saw the company launch its offshore SWT 4.0-130, the next
generation of its 3.6 MW platform. This 4 MW machine features a
rotor diameter of 130 metres. Newly designated the G4 platform,
it has a conventional geared drivetrain. The new B63 rotor blade
measures 63 metres. Power output is increased by up to 15% over the
previous model. The 4 MW prototype was installed in December last
year at sterild, and serial production is expected to begin in 2015.
Alongside its two G platforms, those featuring gearless technology
are identifed by the prefx D, for direct drive. The latest is the offshore
6 MW unit, which began onshore testing at sterild in October 2012.
It features a new 154 metre diameter rotor and 75 metre blades. Its
nacelle weighs 200 tonnes. The frst prototype using the 120 metre
rotor was installed at the Hvsore test site in Denmark back in 2011.
As REW goes to press, Samsung Heavy Industries has received
permission to build a 7 MW offshore turbine at a site near Edinburgh,
Scotland. The permit allows for the construction of a single turbine
which can be as tall as 196 metres, accompanied by offshore cabling
and a bridge to the tower. The company can place one turbine on-site
at any time, and can operate the machine for up to fve years.
The growing number of offshore test facilities and the numerous
early onshore versions of large offshore machines in preliminary
testing says were likely to see a surge of new offshore machines
appearing in situ within the next year or so and, as these turbines
rack up operating hours and shake out any problems they might have,
investor confdence in them will continue to grow.

Author Details
David Appleyard is chief editor of Renewable Energy World magazine.
e-mail: REW@PennWell.com
OFFSHORE: NEW TURBINES
Lifting the 15 metre nacelle into position atop its 116 metre tower at sterild
Siemens
0305REWWindTech_11 11 5/10/13 3:05 PM
12
OPERATIONS & MAINTENANCE
By Tildy Bayar
WHAT GOES DOWN
MUST COME UP
While there are a number of popular nacelle access solutions including ladders and climb-assist technologies, lifts will likely
be the principal means of access for the majority of large newly built wind turbines. We look at the top issues and key
players in this space.
Nacelle access solutions such as ladders and climb-assist technologies
have been in place since there have been wind turbines, but as
turbines get taller, service lifts (SLs) are becoming the solution of
choice for new-built towers. To some extent the SL market competes
with climb-assist technologies, but needs differ depending on tower
height. In Europe, climb-assist or ladders are normally used in towers
up to 60 metres, while in towers above 6080 metres there will
typically be a lift. In North America and Asia lifts are less common,
but still a growing market.
Most of our customers see a very good business case in having a
lift in a high tower, says Erik Laursen, CEO of Avanti Wind Systems.
Lifts improve safety and productivity. Taking tools, spare parts or
material such as, say, 20 litres of oil up to the nacelle can be a time-
consuming and exhausting job using ladders; a lift enables more
service visits per team per day and reduces stress on workers.
Imagine climbing a vertical ladder thats 262 feet (80 metres)
high, just to start your job, said a statement from the US-based
Basin Electric Power Collective (BEPC) explaining why it installed SLs
in its 188 wind turbines in 2012. It is physically very demanding to
climb the ladder, even with climb-assist, says Laursen. Lifts enable
companies to retain experienced technicians whose ladder-climbing
days may be behind them.
Differences and advantages
The cable-guided (wire rope) SL system uses a traction hoist and is
guided with cables on either side, which keep it from rotating but
allow it to move as the tower fexes with the wind. Theres a lot of
sway, says Bill McBrayer, North America access manager at Tractel,
so the lift has to be able to move a bit. The ladder-guided system
is guided by a ladder anchored to the tower, while in the rack-and-
pinion system the lift rides along the ladder; the rack is on the ladder
with two motors on the lift and a pinion driving the lift up and down.
The wire rope system is less expensive because it uses fewer
components. It is the market leader for this reason, says McBrayer,
Lifts enable more service visits per
team per day, and reduce stress
on workers.
Avanti Wind Systems
SERVICE LIFTS TAKE THE
INDUSTRY HIGHER
0305REWWindTech_12 12 5/10/13 3:05 PM
13
OPERATIONS & MAINTENANCE
while the ladder-guided system is more stable. The rack-and-pinion
system is the most expensive and is less commonly used.
All are good solutions, but we view the wire-guided as a very good
lift: simpler and most cost-effective, says Laursen. But, depending
on the confguration of the tower internals, there are advantages to
the other solutions too. The ladder-guided lift can save space in the
tower, since lift and ladder are combined into a single system. But
Laursen points out that ladder-guided lifts must have doors at the top
and bottom in case of the need for emergency egress. In the wire-
guided lift a worker can simply step out of the front door and over to
the ladder, with no need to crawl through the lift.
Safety
Technicians interviewed said there are no issues at this point with
SL safety. In fact, in our conversations with people who work on and
around wind turbines, it emerged that not one had ever seen, or even
heard about, a lift-related accident. One technician had seen a few
heart attacks, but you can put that down to an unhealthy lifestyle
rather than the lift.
Andre De Meirichy, engineering manager at PowerClimber Wind,
identifes contact between moving lifts and people working inside the
tower as a potential hazard. Other principal risks include falling from
the lift, being hit by falling objects and electrical/mechanical hazards.
Trade body RenewableUK says that while lifts can address many of
the health and safety issues involved in wind turbine development
and maintenance, their installation could also lead to other risks such
as fre and compromised emergency rescue.
The only problem technicians reported with SLs is occasional
overloading after attempts to carry too much equipment up to the
nacelle. The person driving has to be mindful of how much load [the
SL] can take, said one technician. Two big German guys plus their
work gear might overload it, he joked. But overloading is driver
error, not technology error.
Standards
There is currently no global standard covering SLs; standards differ
between countries and regions. European SLs are covered by a
Machinery Directive (in place since 2009) rather than by standards
that apply to elevators, since elevators are passenger-operated while
SLs require a trained operator. There are no issues with the European
standard, says Laursen; We are quite happy with the standard and it
gives a good foundation for us.
In North America, however, standards are problematic and differ
by state and region. Each Canadian province and US state has its
own regulations for SLs. For example, Quebec and Texas have no
regulations in Quebec this is because wind turbine towers are not
considered buildings while Ontario and California feature some of
the most stringent.
A US national standard is in the works, spearheaded by AWEA,
but there is indecision regarding whether SLs should be classed as
elevators; if so, increased regulation would be required. According to
McBrayer, climb-assist technologies are currently selling more widely
in the US because of the SL standards issue, and the uncertainty is
driving a need for further cost reductions. On one hand, he says,
were being asked by the [OEMs] to lower costs. At the same
time [the industry is] writing a code thats adding more cost to be
compliant. If the new standard is driven by the elevator sector, he says,
unnecessary costs will be added: Gates at the bottom; protection
in case someone would be underneath when [the SL] comes down,
which would probably never happen; limit switches on landings. If
[the standard is] driven by elevator safety concerns, which weve had
zero incidents with, were in confict, he says.
Product differentiation
We make the same lift as our competitors they are compatible (the
dimensions are about the same). And connection-wise, electricallythey
are about the same, says De Meirichy. This compatibility is important
when selling to multiple OEMs.
From the outside you could say [our SLs and our competitors] look
more or less similar, says Laursen. For him, product differentiation lies
in experience, installed base and market strategy. For the past four
to fve years we have developed not only individual products but the
complete package, he says, basically everything inside a tower: the
ladder system with fall protection equipment, SLs, platforms, railings,
lighting systems, cable trace, electrical components, control panel.
Most SL companies also manufacture other nacelle access
solutions: ladders and climb-assist technologies. For example, Hailos
core business is ladders and they have branched out into making SLs.
Offshore and older turbines
SLs for offshore turbines are basically the same design as onshore,
but somewhat larger, according to Laursen. Lifts in multi-MW turbines
typically have the capacity to carry more people and bigger loads, so
they can bring up heavier components. In addition, says De Meirichy,
specifcations are tougher offshore because SLs must have more
robust anti-corrosion qualities.
In older towers which may only have a ladder installed, De
Meirichy says, it is easier to retroft a climb-assist than a lift. The key
issue is dimensions, and space can be a problem. Increasingly, he
says, the decision to install a lift is taken when turbines are replaced.
Business is looking up
Laursen sees the SL market as a growing one. Market drivers include
ever-increasing turbine heights and growing awareness of health and
safety issues in emerging markets. Although there are no compiled
statistics on SL penetration, Laursen says, We can look at our
customers and how many SLs they are using in their products and ask,
do we see an increase and yes, year-on-year, we see an increase.
Author Details
Tildy Bayar is Associate Editor of Renewable Energy World
magazine.
0305REWWindTech_13 13 5/10/13 3:05 PM
14
INVERTERS
By Tildy Bayar
OPTIMISING
SMALL WIND
A new European research project aims to improve the performance of small wind turbines with new inverters designed
specifcally for these applications.
IMPROVING INVERTER PERFORMANCE
Small wind turbines (SWTs) less than 50 kW are playing a growing role
in electricity generation, and are now being deployed in domestic,
commercial and agricultural scenarios. The World Wind Energy
Association (WWEA) predicts that the global SWT market will increase
from 95 MW in 2011 to 700 MW in 2020, growth of approximately
25% per year. But market share has remained small when compared
to domestic-scale photovoltaics (PV).
Dr Nigel Jakeman of UK inverter manufacturer GenDrive believes
this limited market share has restricted supply chain options for SWTs
compared to large wind turbines. To address this problem Jakeman
has spearheaded Optiwind, a new research project with the aim of
improving the performance of SWTs through inverter optimisation.
Optiwinds research programme will be carried out by an EU
research consortium including GenDrive and research partners the
UK Intelligent Systems Research Institute and Fundacion Tecnalia
Research & Innovation of Spain. Jakeman says the research partners
will be supported by a consortium of companies representing all
aspects of the small wind supply chain, including turbine manufacture
and installation through to inverter and subassembly manufacture.
SWT inverters must come into their own
The small wind inverters that are currently available, says Jakeman, are
effectively PV inverters; they are subject to the vagaries of the larger
solar market and, crucially, are not designed for wind. The control
The World Wind Energy Association (WWEA) predicts that the global market for small wind turbines will increase from 95 MW in 2011 to 700 MW in 2020.
OptiWind
0305REWWindTech_14 14 5/10/13 3:05 PM
15
INVERTERS
you get on most SWTs is appropriate to solar cells, not wind turbines,
he explains. Optiwinds purpose is to come up with a control system
thats more appropriate for wind turbines.
Power change for a solar panel is a relatively slow and not
particularly dynamic process. When the sun rises in the morning
the panels inverter turns on, varying at a level of operation thats
consistent with the days level of solar radiation, and in the evening
it turns off and that is the extent of the change its control system
needs to manage. Wind is much more locally variable: a cloud
passing over and temporarily obscuring the sun is a relatively slow
event compared to the wind changes experienced at blade point.
A wind turbine speeds up and slows down as quickly as the wind
gusts, so its inverter needs to be much more responsive in order to
track the wind. Control systems are all about the speed and accuracy
of how you follow a rapidly changing input, says Jakeman.
On a SWT the primary control method is implemented within
the inverter software which controls power fow from the turbine. Of
course you need the right hardware platform to get the best from the
turbine, says Jakeman, but Optiwind will focus on the software. Key
intellectual property and performance enhancements are executed
within the software; the hardware must simply be able to deliver
what the software is designed to do.
Its about improved dynamics, really how the inverter responds
to a change of wind condition and how it controls its response,
how fast it can do it, Jakeman continues. What youre really trying
to do is track an optimum performance curve. Theres always an
optimum performance point regardless of wind condition; it changes
and you try to keep to it. If you dont have that dynamic of control
you move away from optimum performance and compromise
energy capture.
Improvements expected
Optiwind is a two-year project due to end in 2014, and is currently at
the initial research stage. At the moment were in simulation mode,
so were doing a lot of feld trials to benchmark our simulations with
real-world data. Then well optimise the control we want to achieve,
and then put that on a turbine and see what the improvement will be
with the control algorithm, Jakeman says.
When asked to quantify the effciency improvements expected
from Optiwinds research Jakeman said, We have a target to improve
SWT performance by 10%20%. Its tough to know how realistic that
is at this stage, without [having fnished] the testing. But for return on
investment its pretty signifcant.
The key difference between SWTs and high-value, full-sized
turbines is that operation of the latter is supported by optimising
technology active pitch control systems, for example, and a
variety of wind-tracking sensors whereas a SWT is a lot more of
a compromise, says Jakeman, because the cost per kW rises as
turbine size shrinks. SWTs are largely passive-response systems;
many lack blade pitch control and will instead be on a hinge or
spring. This means the systems intelligence needs to be located
in the inverter while, at large wind scale, improved aerodynamic
control systems are affordable. SWT solutions are a lot cruder,
Jakeman says, and therefore the inverter needs to be a lot
more understanding and intelligent about how it calls power off
the system.

THE SWT INVERTER NEEDS TO BE
MORE UNDERSTANDING ABOUT HOW
IT CALLS POWER OFF THE SYSTEM
According to Jakeman, Optiwind will also save the installer the
work of setting up the inverter, moving it closer to being a plug-
and-play device, and will help alleviate maintenance issues. If the
inverter is effectively working out the characteristics of the turbine,
it can also monitor the turbine, he says. If you can monitor how
optimum performance changes, you can also monitor how potential
performance could be degrading and service it appropriately.
Jakeman says Optiwind will offer are three core benefts: frst,
improved energy yield, which will increase returns for the end user
by 10%20%; second, time saved for the installer at the site, up to
an hour at a time or 5% of standard electrical setup time (not hugely
signifcant but it helps in a competitive market, says Jakeman); and
third, service costs avoided. Service cost reductions are diffcult
to quantify in advance, but Jakeman says Its all about trying to
manage the time a service agent has to spend at the site. Rather than
relying on scheduled maintenance, he would be able to tell when
a service event is needed, and the optimised inverter will help him
determine that.
Author Details
Tildy Bayar is Associate Editor of Renewable Energy World magazine.
SWTs are largely passive-response systems Optiwind
0305REWWindTech_15 15 5/10/13 3:05 PM
16
TECH NOTES
Wind updates
Advertisers Index
ABB FRANCE 5
ABB OY IFC
HEMPEL A/S 7
REWNA IBC
SIEMENS AG BC
Superconducting generator
A new generator using high
temperature superconducting
cables instead of copper for
the rotor windings has been
undergoing trials in Rugby, UK.
GEs Hydrogenie operates at
43 Kelvin or -230C.
The generator uses cold
helium gas piped through a
rotating coupling into the rotor
and then circulated around the
individual coils. The rotor is
located inside a vacuum, but
still has some direct contact via
its shaft.
Benefts are predicted in terms
of size and mass reduction, most
likely as a direct-drive application
in installations such as wind
turbines. According to GE, studies
show that the lifetime energy
saving for a superconducting
wind turbine compared to a
conventional machine could be
as much as 20% for offshore or
desert machines above 10 MW.
Rotor blade lifter launched
Germanys ematec has developed
and built a rotor blade lifter which
it says can accelerate and improve
safety in blade assembly.
The lifter grips the rotor blade
in every possible turning position,
the company says. Blades may be
taken up directly from the trailer or
even from the ground. Multi-joint
gripper arms and large rubber-
coated pressure plates enclose the
rotor blade; retaining claws secure
the blade in a form-ftting grip. To
keep the wind attack surface as
small as possible, the rotor blade
can be tilted at an angle of -10 to
+95. With certain rotor blades,
we achieve a reduction of the wind
attack surface of up to 50%, says
ematec CEO Manfred Eberhard.
Nordex is using the lifter in
assembling Bavarias biggest wind
farm in Zschingen.
New fbre optics
Belden Inc has introduced a range
of fbre-optic data transmission
cables designed for use in
onshore and offshore wind parks
in the EMEA region. New torsion
resistant optical cables are
suited for use in extremely harsh
environments and energy-dense
areas, the company says.
The halogen-free cables are
designed to be installed vertically
in wind turbine towers as the
tower data communication cable.
Floating platform
The UKs Energy Technology
Institute (ETI) has named US-
based Glosten Associates and its
partner Alstom as FEED designer
for a foating platform system
demonstrator.
The PelaStar tension leg
nplatform (TLP) prototype will be
developed using Alstoms Haliade
6 MW offshore wind turbine. The
TLP will be designed for potential
deployment at the WaveHub test
facility in Cornwall.
The FEED study will take
about 12 months to complete
and cost some 4 million
(US$6 million). The ETI will then
decide whether to invest up to
21 million ($30 million) in the
construction and deployment of
the TLP, which could be deployed
off the UK coastline by 2015.
Blade adhesive developed
A new epoxy adhesive from
Huntsman Advanced Materials
is designed to increase fatigue
resistance for wind blade
shell bonding and repairs, the
company says.
The new product has been
formulated to deliver increased
fracture toughness and load
bearing strength. Its developers
claim it has drastically reduced
linear shrinkage in the range of
0.2%0.6%, which would reduce
internal stress during curing.
New Bladed version
GL Garrad Hassan has released
Version 4.4 of Bladed, its
integrated software package for
design and certifcation of onshore
and offshore wind turbines.
New features include a
new pitch actuator model with
additional functionality, a new
external controller interface,
improved moorings capability
for foating turbines, and several
updates to the hardware test
module, the company says. It also
reports that the softwares foating
capability has been enhanced with
a tool that allows the user to auto
populate the stiffness matrix that
represents a catenary mooring line
from some basic line properties.
Acoustics best practice guide
The UKs Institute of Accoustics
(IOA) has launched a good
practice guide for wind turbine
noise asessment. The lOA Good
Practice Guide (GPG) relates
to the application of European
standard ETSU-R-97 for wind
turbine noise assessment.
Small wind portal launched
The World Wind Energy
Association (WWEA) has launched
a dedicated internet portal for
small wind turbines, aiming to
offer an exchange platform for the
small wind sector. The portal has
a public area which is accessible
for everybody and an area that
is accessible for all members of
WWEA Small Wind, offering more
in-depth information for small
wind professionals.
Smallwind.org offers
general information, statistics,
information on standards,
certifcation and policies, a buyers
guide for consumers and a
discussion forum.
Blade fnishing product
Chemicals giant BASF has
launched a refnishing system
for rotor blades. The Relest
Wind RepKit can repair damage
incurred during production and
damage from high wind speeds,
the company says.
The system was designed
for stationary use on the ground
or on the turbine itself. The
kit includes all of the required
paints and accessories, BASF
says, and an accompanying
training course is offered on
the theory and practice of rotor
blade refnishing.
0305REWWindTech_16 16 5/10/13 3:05 PM
Progressive
Changes
for the future
Nov. 12-14, 2013
Orange County
Convention Center
Orlando, FL
0305REWWindTech_C3 3 5/10/13 3:05 PM
Siemens offshore direct drive wind turbine with 6.0-MW
rated power is a new breed of wind turbine. It is the latest
evolution in the Siemens D6 platform and features the
worlds first 154-meter rotor.
The brains are housed in the advanced diagnostics system
that provides comprehensive real-time performance data
and service requirements. It also keeps track of its lifetime
and overall asset condition. It has 50% fewer moving parts
than a comparable geared machine and a towerhead mass of
less than 360 tons. The 6.0-MW drives project profitability
through optimized infrastructure, installation and service.
Such a creature of lean and simple beauty could only be
borne of Siemens.
Drawing on over 30 years of experience in wind power, and
a global network of highly skilled employees, Siemens has
proven itself to be a trustworthy and reliable business partner.
As the world looks for energy solutions, if anyone has the
answers then Siemens has.
siemens.com / wind
The Siemens D6 platform
Turbina Sapiens in its natural habitat. Turbina Sapiens in its natural habitat.
0305REWWindTech_C4 4 5/10/13 3:05 PM

MAY - JUNE 2013
A MODULE ELEVATION
APPROACH TO TERRAIN
THE ISSUES EXPLORED
RETHINKING
SITE DEVELOPMENT
CHOOSE THE
RIGHT TRACKER
DEVELOPING SOLAR IN
SOUTH AMERICA
P 13
INSIDE JAPANS
MEGA-SOLAR BOOM
P4
0305REWLSSolar_C1 1 5/10/13 2:48 PM
0305REWLSSolar_C2 2 5/10/13 2:48 PM
MAY-JUNE 2013 LARGE SCALE SOLAR 1
May-June 2013 CONTENTS
Regulars
From the editor 2
News IBC
Advertisers index IBC
Features
PV sector holds steady 3
Preliminary 2012 data from the IEA PVPS programme shows the photovoltaic sector remaining
roughly stable, despite the perceived turmoil. How much PV is the world installing, and where?
By David Appleyard
Japan: solars real deal? 5

Japans large-scale solar economy is booming but is it sustainable? We look the factors
involved in the nations current solar explosion and ahead to a possible future.
By Elisa Wood
Choosing the right tracker 8

Applying solar trackers to a project is not clear cut. Developers not only have to consider cost
and location but the type of tracker that best suits the project. Yet as innovations in technology
continue, trackers are starting to play a larger role in the industry.
By Meg Cichon
Developing South American solar 10
Moving into a new regional market is not a step large-scale solar developers undertake lightly.
One Spanish developer discusses playing the long game in South America.
By Tildy Bayar
Rethinking site development 12

Developing solar array felds can be an exercise in massive excavation, grading and stormwater
management. A module elevation approach can save time and money.
Can small tweaks mean big savings? 15

A new kind of tracking system, in combination with system-wide savings, could substantially
reduce balance of system costs, claims one company.

Cover photo: David Appleyard
5 15 12
10
0305REWLSSolar_1 1 5/10/13 2:47 PM
David Appleyard, Chief Editor, Renewable Energy World
FROM THE EDITOR
Ranking US utilities for their use of solar
power, the Solar Electric Power Association
(SEPA) has again highlighted the increasing
role of large-scale developments in utility
power strategies.
Naming the 10 American electric utilities
which have added the most new solar
capacity and the most solar on a watts-per-
customer basis in 2012, this sixth annual
ranking reveals that utilities accounted
for 73% of all capacity integrated into
the US grid in 2012, a slight increase on
2011 fgures.
With the fnal fgures due as REW goes to
press, among the top three in the rankings
are Pacifc Gas and Electric Company
(PG&E) of California, Southern California
Edison, and Public Service Electric & Gas
Co of New Jersey. These players often
rank highly, SEPA says, due to their utility
purchasing programmes.
An example of this type of scheme comes
from the Independent Power Producer
Sempra Gas & Power, which develops major
solar projects and then sells the output to
utilities such as PG&E, among others. The
companys Copper Mountain Solar complex
in Boulder City, Nevada, is currently one of
the largest photovoltaic (PV) plants in the US
and has recently completed the frst phase
of expansion.
Construction on the site initially began
in late 2011 with the output from the
150 MW solar installation sold to PG&E
under a 25-year contract. The frst 92 MW of
solar panels of the Copper Mountain Solar 2
project were installed in late 2012 and early
2013. Meanwhile, construction of the third
phase of expansion, the remaining 58 MW,
is due to begin next year and expected to be
completed by 2015.
At 250 MW of total capacity, the Copper
Mountain complex weighs in at around the
capacity of a modern gas turbine unit and
demonstrates that solar power is indeed
utility-scale.
Julia Hamm, president and CEO of SEPA,
said: We are impressed with the sheer
number of new utilities that have moved into
the Top 10 list, particularly those who have
never been ranked in the past and are now
adopting solar as part of their energy mix.
Of course, its not just in the US that large-
scale solar development is gathering pace.
New fgures from the European Photovoltaic
Industry Association (EPIA) reveal that for the
second year in a row, PV was the number one
new source of electricity generation installed
in Europe and now covers 2.6% of electricity
demand. Furthermore, they forecast that
even under a pessimistic business-as-usual
scenario, the global annual market could
reach 48 GW in 2017, while under a policy-
driven scenario it could be as high as 84 GW.
The falling cost of solar power and the
increasing engagement of utility players are
the biggest drivers behind the expansion
of large scale solar, and evidence of the
fundamental shift in scale is mounting.
Whereas just a few years ago projects of
1 MW were considered impressive, projects
now are on the order of hundreds of MW
and getting still larger. Copper Mountain
and PG&E are just one example. Right now
there is another near you.
CHIEF EDITOR David Appleyard
CONSULTING EDITOR Jackie Jones
ASSOCIATE EDITOR Tildy Bayar
DESIGN Kajal Patel
PRODUCTION DIRECTOR Mari Rodriguez
SALES MANAGERS Sandra Spencer, Peter Andersen,
Dan Harper
GROUP PUBLISHER James Callihan
SENIOR VICE PRESIDENT Richard Baker
PUBLISHED BY PennWell International Publications
Ltd, The Water Tower, Gunpowder Mills, Powdermill
Lane, Waltham Abbey, Essex EN9 1BN, UK
TEL +44 1992 65 6600
FAX +44 1992 65 6700
E-MAIL rew@pennwell.com
A detailed supplier listing and other information can
be found at www.RenewableEnergyWorld.com
ADVERTISING For information on advertising in
future issues of the magazine, please contact:
SANDRA SPENCER on
+44 1992 656 664 (direct), or
PETER ANDERSEN on
+1 603 924 4405 ext 204, or
DAN HARPER on
+1 603 924 4405 ext 211
or e-mail rew@pennwell.com
All rights reserved. No part of this publication may
be reproduced in any form or by any means, whether
or retrieval system without the prior written consent
of the Publishers.
While every attempt is made to ensure the accuracy
of the information contained in this magazine, neither
the Publishers nor the authors accept any liability for
errors or omissions.
SUBSCRIPTIONS Renewable Energy World is
circulated free to professionals in the renewable
energy industry. To start a free subscription visit
www.rew-subscribe.com. Professionals outside
the renewable energy industry may start a paid
subscription. For pricing information visit www.
omeda.com/rew or call +1 847 559 7330.
Renewable Energy World is published 6 times a year
by PennWell International Publications Ltd, The Water
Tower, Gunpowder Mills, Powdermill Lane, Waltham
Abbey, Essex EN9 1BN, UK, and distributed in the
USA by SPP at 75 Aberdeen Road, Emigsville, PA
17318 043. Periodicals Postage paid at Emigsville PA.
POSTMASTER send address changes to
Renewable Energy World
REPRINTS if you would like to have a recent article
reprinted for an upcoming conference or for use as
a marketing tool, contact Rhonda Brown, E-mail:
pennwellreprints@fosterprinting.com Tel: +1-866-
879-9144, ext 194
PRINTED in the UK by Reaction Ltd.
Evidence of the
fundamental shift in
scale is mounting
2 LARGE SCALE SOLAR MAY-JUNE 2013
0305REWLSSolar_2 2 5/10/13 2:48 PM
POLICY & MARKETS
P
reliminary market data on the global
photovoltaics sector as reported by
the IEA Photovoltaic Power Systems
Programme (PVPS) shows a roughly stable
PV market in 2012 compared with 2011, with
installation levels roughly similar across the
two years.
At least 28.4 GW of PV systems were
installed in the world last year, while parity
with retail electricity prices was reached
in several more countries in 2012 due to
PV system price decreases and electricity
price increases.
And, while these data are expected to
be confrmed in the coming months, some
important trends can already be extracted.
For example, the European market has
decreased signifcantly, with installations
falling from 22 GW in 2011 to 16.9 GW in
2012, but it still remains number one by
far with 59% of the PV market. Specifcally,
Germany and Italy have now enough PV
capacity to produce 5.6% and 5.75% of their
annual electricity demand, respectively.
However, the Asian markets had the
highest growth in 2012 with 66%, and China
entered the top three with a second place
position for installed PV capacity in 2012.
Overall, thirteen countries had at least 1 GW
of cumulative capacity at the end of 2012
and nine countries installed close to 1 GW in
2012, the IEA concludes.
In the top 10, there are fve European
countries, four Asia-Pacifc countries and one
country in the Americas region, they note.
THE PVPS PROJECT
The 28 PVPS members are: Australia, Austria,
Belgium, Canada, China, Denmark, EPIA, the
EU, France, Germany, International Copper
Association, Israel, Italy, Japan, Korea,
Malaysia, Mexico, Netherlands, Norway,
Portugal, SEIA, SEPA, Spain, Sweden,
Switzerland, Turkey, the UK and the US.
Across the 23 IEA-PVPS countries, some
89.5 GW of cumulative PV installations
were developed collectively, mostly as
grid-connected plants, by the end of 2012.
Six countries that are not part of the PVPS
programme represent an additional 7 GW,
mostly in Europe: the Czech Republic with
2.1 GW installed, Greece with 1.5 GW, and
below the GW mark, Bulgaria, Slovakia,
Ukraine and Thailand.
Next to these countries, India has installed
more than 1.2 GW. While other countries
around the world have reached various PV
installations levels, the total of these remains
hard to quantify with certainty. Some could
argue that the 100 GW mark worldwide has
been passed, but evidence remains limited.
According to the IEA, at present it seems that
96.5 GW represents the minimum installed
Flat market, but positive outlook
China entered the top three with a second place position for installed PV capacity in 2012. WiNG
PV SECTOR
HOLDS STEADY
Preliminary 2012 data from the IEA PVPS programme shows the photovoltaic sector remaining roughly stable. David
Appleyard fnds that Asian markets are surging and a host of new countries have joined the 1 GW club.
0305REWLSSolar_3 3 5/10/13 2:48 PM
POLICY & MARKETS
PV capacity by the end of 2012 with a frm
level of certainty.
HOW MUCH INSTALLED IN 2012?
In 2012 the PVPS countries installed
25.2 GW, with a minimum worldwide
installed capacity totalling 28.4 GW. While
the IEA acknowledges that they are hard
to track with a high level of certainty, they
believe that installations in non-PVPS
countries succeeded in pushing the installed
capacity above 28 GW in 2012.
While some new countries have reportedly
installed some PV, installation numbers for
2012 have stabilised when compared with
2011. Final numbers, which are due to be
revealed later in 2013, will show whether PV
installations actually grew in 2012, stabilised
or fell short of 2011 fgures by about 100
MW, the IEA says.
Number one market Germany installed
7.6 GW, after two years at similar installation
levels. However, this occurred within the
context of reduced feed-in tariffs (FiTs),
pushing self-consumption as a natural PV
development driver in the country where
total installed PV capacity now tops more
than 32 GW.
China stands in second place, with
at least 3.5 GW installed (some sources
believe installations topped 5 GW, the
IEA notes). This performance is in line with
the ambitions of Chinas government to
continue developing its internal PV market,
pushing for 35 GW by 2015, starting at the
current 7 GW.
Third-place Italy installed 3.3 GW, little
more than a third of 2011s tremendous
9.3 GW. With a fnancial cap on costs
for electricity consumers passed, future
Italian PV development will have to rely
more on self-consumption than FiTs, the
IEA believes. Nonetheless, they add that
the 16.2 GW installed in Italy will produce
at least 5.75% of the electricity demand
of the country in 2013, an undisputed
world record.
Close behind in fourth place, the US
reached the 3.3 GW mark and now has about
7.2 GW of installed capacity. Fifth place
goes to Japan, with around 2 GW installed,
putting the total installed capacity at
7 GW, roughly the same as China. Together,
these fve countries represent 70% of all
installations recorded in 2012 and slightly
more in terms of installed capacity.
The fve following places go to France
with 1.1 GW, the UK with 1 GW and Greece
with 0.9 GW. India and Australia are also
reporting preliminary numbers close to
1 GW in both cases, the IEA adds. With
these 10 countries, 88% of the 2012 world
market has been covered.
Smaller national markets have raised their
total installed capacity above the GW mark.
For example, Belgium installed 600 MW to
reach 2.5 GW, while Korea stayed just below
that mark with a more vigorous market than
in the past few years. Some countries that
grew dramatically in the last years have now
stalled or experienced very small additions,
the Agency notes. Spain totals now more
than 5 GW of PV systems by IEA fgures,
followed by the Czech Republic at 2.1 GW.
Looking at geographical trends, the
analysis fnds that in Europe, net-metering
systems allowed the market to grow quickly
in Denmark (310 MW added) and the
Netherlands (an estimated 125 MW), with
signifcant additions in Switzerland (200 MW)
and Austria (230 MW).
In Asia, next to China, Japan and Korea,
Thailand is progressing fast with preliminary
data showing around 210 MW installed in
2012. Malaysia installed 22 MW in the frst
year of its feed-in tariff system.
In North America, preliminary data
for Canada shows the installation of
268 MW while the appetite for PV in Latin
and Central America hasnt transformed into
a real market yet, the IEA concludes. Several
GW of PV plants have been validated
in Chile, but except in Peru, with some
50 MW, and Mexico with 15 MW, real
development of grid-connected plants
hasnt yet begun, the IEA states.
In the Middle East, Israel progressed
rapidly, with close to 0.7% of its electricity
already coming from PV, while Turkey has
started more slowly with only around 2 MW
installed in 2012.
While Europe still represents a major part
of global installations, the share of Asia and
the Americas started to grow rapidly in 2012.
This evolution is quite visible from 2010 to
2012, with the share of Asia Pacifc growing
from 17% to almost 30%, whereas the
European share of the PV market went down
from 82% to 59% over the same two years.
MARKET PROSPECTS
The IEAs technology roadmap estimates
that by 2050 PV could provide 4500 TWh
or 11% of global electricity production,
reaching 3 TW. With system and generation
costs expected to fall by more than half
over a decade, residential and commercial
systems are forecast to reach grid parity in
most regions by 2020. Towards 2030, typical
system generation costs are expected to
decrease to US$0.70.13/kWh and in this
scenario, utility-scale PV could become
competitive in the sunniest regions by 2030
and provide 5% of global electricity by 2050.
However, the Agency notes that industry,
grid operators and utilities will need to
develop new technologies and strategies to
integrate large amounts of PV into fexible,
effcient and smart grids.
David Appleyard is Chief Editor of
Renewable Energy World magazine
e-mail: rew@PennWell.com
This article is available on-line. To comment
on it or forward to a colleague, visit: www.
RenewableEnergyWorld.com
Top 10 rankings using preliminary simplifed fgures for 2012 by installations and
cumulative total. IEA
Table 1: Top 10 PV countries in 2012
2012 installations MW Total installed capacity MW
1 Germany 7604 Germany 32,411
2 China 3510 Italy 16,250
3 Italy 3337 US 7221
4 US 3313 Japan 7000
5 Japan 2000 China 7000
6 France 1079 Spain 5100
7 UK 1000 France 4003
8 Australia 1000 Belgium 2567
9 India 980 Australia 2400
10 Greece 912 Czech Republic 2085
0305REWLSSolar_4 4 5/10/13 2:48 PM
POLICY & MARKETS
J
apans solar market is soaring. Spurred
by a generous incentive, developers
are announcing mega-scale
projects, investors are closing deals and
manufacturers are placing orders. The nation
is fast becoming the industry champion
of 2013.
But we have seen this kind of rush before,
only for it to crash when the incentive
disappears. Spain went from euphoria to
woe with the economic crisis, and other
European nations have made swingeing cuts
to incentive schemes.
Will Japan be another boom and bust, a
story imposed too often on renewables? Or
is its solar industry different? Does it have
the right mix of circumstance and know-how
to become a stable, top market for large-
scale solar? Is Japan, as some predict, the
real deal?
BREAKING RECORDS
Italy now holds the record for the most solar
added in a year 7.9 GW for 2011. Fuelled
by a new feed-in tariff (FiT) for large projects,
Japan will challenge that record, as it adds
6 GW9.4 GW of photovoltaics in 2013, much
of it from large-scale projects, according to a
forecast by Bloomberg New Energy Finance.
Japan could even topple China from its spot
as top solar market, BNEF says.
This represents a big leap for Japan.
Before instituting the FiT, the nation
had only 0.8 GW of large PV from about
40 installations, according to Japans Agency
for Natural Resources and Energy.
Domestic and international companies are
vying to capture the new bounty. Many are
already active; others are positioning for a
point of entry. They include Softbank, ORIX,
Kyocera, Toshiba, Gestamp Solar, JGC,
Mitsui, Sky Solar, SPARX, Panasonic, Sharp,
Nations large-scale solar market is
booming but is it sustainable?
Japan has the will, the need and the means to build a lasting solar economy. The nation needs power and has few
alternatives except renewable energy, and it is known for its technology know-how. Its domestic solar manufacturing base
is experienced and diversifed, and its fnancial sector is amenable to solar deals. With all of these factors going for it, Japan
may be the real deal, fnds Elisa Wood.
Upsolar, a Hong Kong-based module manufacturer, supplied the modules for the 1 MW Mitax installation at Kyushiu. Mitax Megasolar
JAPAN: SOLARS
REAL DEAL?
0305REWLSSolar_5 5 5/10/13 2:48 PM
Suntech, First Solar, Yingli Green Energy,
Solaria and SunPower, among others.
The feed-in tariff is driving the large
projects. The economics are quite
compelling, said Daniel Shugar, CEO of
California-based Solaria.
In July 2012 Japan initiated its new FiT,
which required that utilities buy electricity
from large solar installations under
20-year contracts at 40 ($0.40)/kWh. The
Ministry of Economy, Trade and Industry
eased down the rate by 10% in April
2013. Still, the incentive remains one of
the most attractive in the world right now,
even with the recently announced 10% cut
in tariffs, said Raj Prabhu, CEO of Mercom
Capital Group.
Under the revised tariff, small PV systems
(less than 10 kW) receive 38 ($0.38)/kWh
and larger systems receive 36 ($0.36)/kWh.
Small projects can sell their excess power
and large projects all of their power through
the tariff.
The price is still very attractive for
independent power producers. The price is
set to have a projected IRR of at least 6%. The
new FiT price is more than double the FiT
price in Germany, said Shuhei Abe, chairman
of SPARX, a Tokyo-based investment group,
which recently signed a deal to install an 8
MW PV project in Kumamoto, scheduled to
begin operating in December.
The FiT for large projects is new for Japan,
which has focused more in the past on
residential solar. Japan initiated a renewable
portfolio standard in 2003 and six years later
began offering a tariff for the purchase of
surplus solar from residential installations.
But no FiT existed before 2012 for projects
500 kW and above.
FUKUSHIMA AFTERSHOCK
Like many nations, Japans push for solar
is forward-thinking, driven by a desire to
green its energy supply. But Japan also has
an eye in the rear-view mirror, at the March
2011 earthquake and tsunami that crashed
its economy and its faith in nuclear. Pushed
by a wary citizenry, Japanese offcials have
shut down most of the nations nuclear plants
until they can prove their safety.
Loss of the plants has led to power
shortages in Japan, and a growing energy
ascetic among the population. If you go to
Tokyo in the summer you will notice that air
conditioning is uncomfortably low. That is
partly because people realise that there isnt
a lot of capacity, said Jenny Chase, BNEFs
solar insight manager.
What is replacing the nuclear power?
For now, fossil fuels, specifcally imported
liquefed natural gas and oil. Today,
fossil fuels produce 90% of the nations
electricity. Meanwhile, renewables largely
hydroelectricity are a relatively small part
of the mix.
Aside from renewable energy, Japan has
few indigenous energy resources. And the
high cost of importing fossil fuel is putting
pressure on electricity prices. Four utilities
Kansai Electric Power, Kyushu Electric Power,
Tohoku Electric Power and Shikoku Electric
Power have sought rate increases since
late 2012. And more are likely to do so,
according to the Ministry of Economy, Trade
and Industry.
The major factor behind these recent
applications for electricity rate increases is
the growing fuel costs for thermal power
generation, resulting from the suspended
operation of nuclear power plants, said the
ministry in a statement.
Japan is trying to bring down costs
through energy effciency and conservation,
importing low-cost natural gas from the US
and liberalising its utility industry.
The solar projects, however, arent viewed
as cost-cutting measures at least not
initially. They are actually adding to Japans
electricity rates because of the FiT, although
not by much. Utilities cover the cost of
the tariff through a surcharge paid by all
customers. The FiT is available not only for
solar, but other renewables as well: wind,
small and medium-scale hydroelectricity,
geothermal power and biomass.
So far, the FiT has not had a signifcant
impact on rates, costing about 117.3 billion
($1.3 billion) in 2012, which is about 1.6%
of Japans total electricity cost, BNEF
said. The tariffs costs are expected to
rise as more solar is built and the FiT is
increasingly employed.
Solar is not at grid parity in Japan without
incentives. So the nations push for more
solar is viewed not as an economic play,
but as a way to bring safer, cleaner and
more indigenous resources to the nation.
Moreover, Japan needs power now, and
solar can be built fast.
When compared with the immediate
alternatives, solar becomes an obvious
choice for the Japanese, said Solarias Shugar:
Japan doesnt have another alternative to
importing massive amounts of fossil fuel
power which puts you at geopolitical risk.
If you think of nuclear versus solar, solar wins
on the economics. And nothing is more
hazardous than plutonium and Japan knows
that more than anyone. Given that stark
contrast, youre going to go solar.
Further, while solar prices may be
relatively high now in Japan, they are falling
there as they are elsewhere in the world.
System prices dropped last year by 14% to
280 ($3.11)/W for projects over 1 MW,
according to BNEF. Prices will likely continue
to fall, as Japan imports more modules. But
the FiT could also serve to keep Japans
prices on the higher side globally, BNEF said.
A STABLE INDUSTRY
The Japanese have yet another ingredient in
their favour: technology know-how.
POLICY & MARKETS
2013 top six utility-scale markets forecast
Bloomberg New Energy Finance
0305REWLSSolar_6 6 5/10/13 2:48 PM
POLICY & MARKETS
You have a very strong indigenous
manufacturing sector, Shugar said. You
have four companies that have dominated
Sharp, Kyocera, Panasonic, and Mitsubishi.
The costs are relatively high in Japan
compared with China. But they have done
research into new materials and some
emerging concepts.
Domestic manufacturers produced
2.2 GW in 2012, and exported only 21%
or 460 MW. Still, it wont be easy for them,
as eager competitors from other countries,
especially China, move into the market. Not
surprisingly, imports rose 34% in the fourth
quarter of 2012, according to BNEF.
And Japans manufacturers have not been
exempt from the global troubles facing the
sector. Module manufacturer Yocasol went
bankrupt, Japan Solar Silicon dissolved,
and Sharp posted losses in 2012, BNEF
said. But Japans domestic manufacturing
market is expected to strengthen as solar
installations accelerate at home. Several of
Japans solar manufacturers are subsidiaries
of large, diversifed and familiar companies.
Investors may favour the known and stable
entities over less certain foreign companies,
BNEF said.
A CULTURAL PROCLIVITY
Japans solar industry also is nourished by
strong public support, emanating from a
cultural reverence for nature.
Social and environmental forces also
play a part, as many Japanese people are
highly environmentally conscious. The
Fukushima incident certainly accelerated the
process, said Roy Li, representative director
for Upsolar, a Hong Kong-based module
manufacturer that supplied the 1 MW Mitax
installation in Kyushiu.
Nor surprisingly, Japan has long been a
leader in residential PV, with 4 GW already
installed before the new FiT. The technology
savvy nation also has been quick to adopt
smart grids. Both trends create a natural
segue for todays mega-solar boom.
Another, less tangible market driver is
a cultural proclivity toward acting in the
public good. Japanese companies pride
themselves in supporting the national
interest, in this case restoring the countrys
energy supply with renewables.
For a company in Japan to demonstrate
how green it is, and that it has understood
the national challenge of electricity and
the phase out of nuclear and all the terrible
things that came with it and addressing
this question on its own production site I
think that is a high incentive for Japanese
companies, said Alexander Ochs, climate
and energy director at Worldwatch Institute.
LAND LIMITS
While Japan may have a strong cultural
proclivity toward solar, its climate, geography
and population density impose limits. It has
plenty of sunshine for PV, but not enough to
be a good candidate for concentrating solar
power, according to BNEFs Chase.
The small nation is also population dense,
with 343 people per km
2
, which is high
compared with other top solar countries.
Germanys density is 231/km
2
; China,
141/km
2
; and the US 32/km
2
. So, open land
is precious and expensive in Japan. Much of
the new large scale solar in Japan is ground-
mounted and that requires land.
Its a serious issue, said Upsolars Li.
About 73% of Japan is mountainous and/
or forested. There is a lack of large parcels
of suitable land due to issues like land cost,
saturation of the local grid, distance to
substations, local climate or terrain, etc. The
recent boom will quickly consume suitable
land, and has driven up land cost.
The problem is inspiring some
creative solutions, according to Matt
Dougherty, an associate at DLA Piper
Tokyo Partnership. One common theme we
are seeing in plant location is in golf courses.
There was a glut of golf course construction
in Japan during the Japan Inc era but now
many of those courses are either bankrupt
or underperforming.
Shugar added that unused industrial
sites are not diffcult to fnd in a country
like Japan. In addition, solar using trackers
can increasingly complement agriculture,
opening up new possible land resources
for projects.
Added Ochs, Since land mass is somewhat
limited, I think the smartest way to go is to
use buildings, rooftops, parking lots. This
is a highly industrialised country with many
factories, warehouses, commercial buildings.
These places should not just use less energy
they should actually produce it.
FINANCING AVAILABLE
While land may be a problem, fnancing
is not, say several industry insiders. Japan
enjoys low commercial lending interest rates,
about 0.9%, which are likely to translate into
low interest rates for solar projects, as well,
according to BNEF. Both large banks and
specialized investment frms have shown
interest in solar lending.
We have utilised limited partnerships
for our solar projects. Most investments
are either greenfeld, which invests from
scratch, or brownfeld, which is already up
and running. Because the mega solar market
is still young, most of the investments are
greenfeld, as are our investments, said
SPARXs Abe. Capital is coming from
institutional investors who are open to
new or non-traditional ventures, wealthy
individual investors and pension funds.
Although fnancing structures vary from
project to project, Mercoms Prabhu says
most deals are from bank syndicates fnancing
1520 year term loans. Some of the investors
include Mizuho CB, Mizuho Bank, Toho
Bank, Tohoku Bank, 77 Bank, Bank of Iwate,
BTM-UFJ, Chiba Bank, Mitsubishi UFJ Lease
& Finance Company, Oita Bank and Shinsei
Bank, he said.
THE REAL DEAL?
Shugar, who has done business in Japan
in various capacities going back to the late
1980s, has yet to pursue large-scale projects
or contracts, but we are very interested
in the market, he said. There may not be
any need to rush. Japans solar industry is
sustainable, according to Shugar. Not a
fash market.
That staying power emanates from an
unusual combination of circumstances.
The government has created an incentive
that appears to work. Japan needs power
and has few alternatives except renewable
energy. It fears nuclear. At the same time,
the country is known for its technology
know-how. Its domestic solar manufacturing
base is experienced and diversifed, and
its fnancial sector is amenable to solar
deals. And fnally, the Japanese people
are predisposed toward green energy and
acting for the larger good.
It is a situation that doesnt exist anywhere
else, Shugar said.
Elisa Wood is a US correspondent for
Renewable Energy World magazine.
on it or forward it to a colleague, visit:
www.RenewableEnergyWorld.com
0305REWLSSolar_7 7 5/10/13 2:48 PM
TECHNOLOGY & MARKETS
I
t sounds obvious: put solar panels on a
movable mount to follow the sun and catch
as much sunlight as possible. But applying
solar trackers to a project is not clear cut.
Developers not only have to consider cost
and location but the type of tracker that
best suits the project. Yet as innovations in
technology continue, trackers are starting to
play a larger role in the industry.
FIXED, SINGLE OR DUAL
Solar panels are typically mounted at a fxed
angle. Such systems have few parts, so are
less costly than those with trackers and
have fewer operations and maintenance
(O&M) considerations.
Single-axis systems track the sun east to
west as it moves across the sky, allowing
them to increase system performance by
20% or more over fxed systems in areas
of high insolation. Dual-axis trackers angle
through both the x and y axes, typically
generating about 8%10% more energy than
single-axis types, depending on location.
A major consideration when using trackers
is land use. They generally take up much
more land than fxed systems because their
movement can create shadows which can
affect neighbouring panels, so they must
be spaced appropriately. According to MJ
Shaio, senior analyst at GTM Research and
co-author of the report Solar PV Balance of
System (BOS) Markets: Technologies, Costs
and Leading Companies, a typical fxed-tilt
system usually uses about 1.6 to 2.4 ha of
land per MW, while a single-axis tracker can
use anywhere between 1.8 and 3.0 ha/MW.
Tracking systems maximise potential
output but they also come with higher
capex and opex considerations. Increased
land requirements together with more
sophisticated technology hike initial
development costs while the requirement
to maintain motors and control systems also
pushes up O&M expenditure.
The pros of trackers are more energy
harvest for the same amount of panel,
explains Shaio. Per panel you get more
kilowatt hours, which is great. However,
there is a little bit of a trade-off. Trackers
are more expensive because now you have
moving parts. Instead of something that is
just sitting on the ground you now have a
motor that moves the panels. O&M costs
will be higher, as well. The motor needs
to be maintained throughout the life of
the tracker.
Scott Daily, tracker project manager at
First Solar, agrees. Daily argues that dual axis
trackers are generally only seen deployed in
markets with high feed-in tariffs (FiTs), where
increased revenues derived by maximising
a sites KWh output can offset these higher
O&M outgoings.
RELIABILITY CONCERNS
When tracker technology frst started to hit
the mainstream in solar development, some
systems suffered from reliability issues.
Because of the moving parts and general
lack of long-term, tested experience,
the solar industry tended to shy away
from trackers.
According to Daily, during the FiT boom
in Europe many projects utilised dual-axis
trackers with poor reliability, which led to
high O&M costs. Sometimes these systems
can have compounding or cascading failure
modes, which can be diffcult to troubleshoot
and require heavy equipment to repair, he
says. Shaio notes that, as recently as even
just a few years ago, the only people willing
to use trackers were those that were also
willing to take on a lot more risk. However,
trackers are starting to become the norm,
especially in places with high solar insolation.
There are always going to be bankability
and viability concerns, says Shaio, especially
for new vendors, even if they have a track
record in Europe. But now if you are siting
a project anywhere with high irradiation,
youre defnitely going to think about and
consider trackers, says Shaio.
A BLOSSOMING MARKET
In the past several years, tracking technology
has made some drastic improvements.
Equipment and O&M costs have come down
and standards are higher. And now that there
are a lot more projects in the feld that use
tracker technology, it has become a much
more bankable aspect of a solar project, and
developers are more comfortable using it. A
clear indicator of these progressive changes
is First Solars 2011 acquisition of RayTracker.
According to Shaio, the acquisition was
perplexing at the time because thin-flm
projects typically wouldnt use tracker
technology. Due to its lower effciency,
thin-flm needs more land area to reach a
certain capacity target, and when you add
trackers to the mix, you start to eat up even
more land. But in hindsight, Shaio thinks,
First Solar made a smart move that fts well
in its project portfolio.
[First Solar] typically [develops projects] in
wide areas where space constraint is not a
ON TRACK
TO SUCCEED
Tracker systems
gain ground
Despite reliability concerns, solar developers are looking more
favourably on tracking technologies. But there is more to it,
fnds Meg Cichon.
Applying solar trackers to a project is not clear cut. Developers
not only have to consider cost and location but the type of
tracker that best suits the project.
AllEarth Renewables
0305REWLSSolar_8 8 5/10/13 2:48 PM
concern, so in retrospect it was a pretty good
move by them, explains Shaio. They have
started to roll out the tracker technology
fairly aggressively.
The acquisition also had lasting effects on
the overall tracker market. When RayTracker
was acquired, there was a relatively small
number of companies in the feld, so
very few options were left for third-party
developers. It was great for companies like
Array Technologies because they had less
competition, but not so great if you were a
developer trying to diversify for your vendors
or get better pricing through competition,
says Shaio.
Recently a few European companies
DEGERenergie, Mecasolar and SPG Solar
have tried to enter the North American
tracker market and take advantage of the
low competition and growing demand.
FINDING A NICHE
Although single-axis trackers seem to be
dominating the market, some dual-axis
companies have found their niche.
The issue with dual axis at this point is
basically that the added generation from
upgrading from single to dual-axis doesnt
economically pan out in terms of the extra
materials and costs, says Shaio. There are
certainly players in the market that are still
doing dual axis AllEarth Renewables has
one and most CPV companies still in the
game are typically using dual-axis tracking,
but single-axis are more preferred.
Dual-axis players have found success in
smaller-scale markets. Daily says much of
that success comes from consumers that
may not be as economically driven, such
as corporates that have a goal to offset as
much consumption as possible, or those that
favour energy output rather than the lowest
levelised cost of energy.
Andrew Savage, director of
communications and public affairs at
AllEarth Renewables, says his company
focuses its dual-axis trackers on
everything from residential to 2.2 MW
farms and has built its following in the
northeastern US, not an ideal location for
tracking systems. The nice thing is that our
trackers have been tested and proven in
some harsh conditions, and that is helpful
for fnanciers, he says.
Dual-axis systems are more attractive in
areas with production-based incentives, like
FiTs, according to Savage. And now AllEarth
has its eye on the blossoming solar leasing
market. Many potential
leasing customers
are unable to take
advantage of support
programmes because
their roofs are not viable
for solar. Savage says
that AllEarth provides
an attractive option for
these customers with its
ground-mount system,
and, since the majority
of its existing customers
are residential, leasing
would be a natural ft.
Considering the
amount of solar that is
sold through leases, its
a market that you cant
not be in, he adds.
CHANGING THE GAME
Another dual-axis tracker manufacturer is
making waves with an entirely new concept.
Wasiq Bokhari, CEO and founder of QBotix,
believes his new technology can signifcantly
increase margins and allow for easier
installation and increased deployment.
The QBotix system consists of 200
trackers, which total about 300 kW, and two
robots, one primary and one backup, which
travel on a steel monorail to each tracker. The
monorails also contain two charging points
for the robots. A robot travels along the
rail every 40 minutes to adjust each tracker
individually throughout the day. The rail also
carries the systems wiring, eliminating the
need for trenching.
The QBotix system uses less steel a
major price driver for tracking systems.
According to Bokhari, the system is roughly
half the cost of dual-axis trackers and the
same cost as single-axis. Because of that
price parity, we are able to achieve an LCOE
reduction of up to 20% compared with fxed
systems, he adds.
Bokhari says the robot is made of water-
and dust-resistant components, and the
system is also weather-resistant. It can
withstand high wind loads for the projects
2025 year life, while the robot can withstand
temperatures from -30C to 60C.
The robot collects performance and
reliability data that allows it to optimise
the performance of each tracker, and
ultimately the entire system. It also contains
built-in GPS sensors, memory capabilities
and wireless communications. If the robot
malfunctions, the backup immediately takes
its place, which means there is no tracking
loss. The robots are also easily replaceable.
The system comes preassembled and
can be used with any standard foundation
and solar panel. And because it is much
lower to the ground, heavy machinery is not
necessary for installation.
Shaio thinks Qbotix offers a promising
technology but its biggest hurdle to get
to market will be convincing engineers
and fnanciers that it is reliable and will be
around long-term.
Its a brand new technology, and that
tends to make a lot of fnanciers really
nervous, says Shaio. Banks arent risk
takers, they want something that has been
installed out in the feld in gigawatt scales.
Convincing the market that the product
and the company is going to be around
for 20 years will be their biggest challenge.
But innovations like QBotix may be exactly
what the solar industry needs to prosper.
Since balance-of-systems costs account for
roughly half of the entire system, trackers
may play a large role in cutting costs.
Meg Cichon is Associate Editor of
RenewableEnergyWorld.com.
TECHNOLOGY & MARKETS
The QBotix system consists of 200 trackers, which total about
300 kW, and robots which travel on a steel monorail to adjust
the angle of each tracker.
Qbotix
0305REWLSSolar_9 9 5/10/13 2:48 PM
A
fter securing a US$41.4 million
loan from the Inter-American
Development Bank in March,
Spanish project developer Solarpack began
construction on its 25.5 MW Pozo Almonte
solar plant in Tarapac, in Chiles Atacama
desert. The plant will sell its power to the
Doa Ins de Collahuasi mining company,
accounting for 13% of the mines energy use.
Solarpack says it has a pipeline of more
than 120 MW in Chile, of which 20 MW are
already fully developed. For example, in
April 2012 it completed the 1 MW Calama
Solar III project, also in the Atacama region,
which sells power to another mining
company, Codelco.
Solarpack has also developed close
to 100 MW in Peru, under government
sponsorship. In addition to two 20 MW
projects in Majes and Reparticion, owned by
independent power producer T-Solar, there
are the Tacna and Panamericana plants, also
20 MW each and jointly built and owned with
Spanish developer Gestamp. Solarpack also
says it has been awarded a power purchase
agreement (PPA) for a 16 MW plant in the
province of Mariscal Nieto.
We discussed the challenges of
developing large-scale solar in Latin America
with Solarpacks CEO, Pablo Burgos.
A STRATEGIC DECISION
According to Burgos, Solarpack has pursued
a slow and steady strategy in relation to the
South American market. When it was ready
to expand, the company made a strategic
decision to focus on countries that were
likely to reach grid parity soon. Chile was of
particular interest for several reasons.
First, the country features some of the
highest global horizontal irradiation (GHI)
levels in the world. In the Atacama desert
region skies are cloudy for an average of only
30 days per year, with an annual rainfall of
0.01 mm. Second, Chile has an open
electricity market, and third, its electricity
prices are relatively high, due largely to the
lack of indigenous fossil fuel sources.
This was the origin of our bet on the
region, said Burgos. We have been very
patient for years doing development there.
The planned Pozo Almonte plant is our
milestone, he continued, although we
already have megawatts on the ground.
Expanding on its activities in Chile, in late
2009 Solarpack fled a proposal in response
to neighbouring Perus request for proposals
and was awarded projects totaling 80 MW.
WORKING WITH A PARTNER
Commercial mining in Chile uses roughly
18% of the nations power. The Doa Ins de
Collahuasi mining company, which will buy
the energy from the Pozo Almonte plant, is
an electricity consumer, said Burgos.
In the Chilean market it is possible to
buy electricity from different providers
simultaneously. One provider our project
will be up and running at the end of the
year, Burgos said; to address the rest of its
electricity needs Collahuasi has contracts in
place with coal- and gas-fred plants.
Since Solarpack won an international
tender to develop Pozo Almonte, while the
project will be undertaken collaboratively
with the mining company, the collaboration
is a result of the tender process. However,
said Burgos, until the industry matures vis
vis this kind of project, collaboration can
be important for both parties. We need
a customer with a very clear view and
DEVELOPING SOUTH
AMERICAN SOLAR
Playing the long game: patience pays
off in expansion moves
Expanding into a new regional market is not a step large-scale solar developers take lightly. Tildy Bayar spoke with one
developer about what it takes to succeed in Latin American markets.
The 20 MW Tacna PV plant in Peru Solarpack
BUSINESS STRATEGY
0305REWLSSolar_10 10 5/10/13 2:48 PM
knowledge of what hes buying so he can
make the project viable in terms of the
PPAs terms and conditions, he explained.
[Collahuasi] has understood very well what
a renewable energy project needs to fy and
to be competitive.
INTO PERU
Solarpack has developed two 20 MW
projects in Peru with partner Gestamp, both
completed at the end of 2012. The companys
process in Peru has been quite different
from its experience in Chile, explained
Burgos. In Peru Solarpack has won public
tenders from the Ministry of Energy, which
are open to technologies other than solar.
Solarpack won a portion of the 2010 solar
tender, and a second tender issued in 2011.
The companys two plants have a concession
contract with the government basically a
PPA, says Burgos which function within a
very regulated process. In Chile we worked
with private entities, he says; here we are
working with the government.
Burgos sees his companys position in Peru
as very strong. We have an advanced pipeline
based on the number of years we have been
on the ground, he says. We also have the
experience as one of the few companies that
have already installed plants of this size over
20 MW so we are in a good position to be
competitive in tenders.
NEW MARKETS
Solarpack is looking to move into other
South American countries, and is also active
in South Africa. PV developers have to be
constantly looking for new markets, Burgos
says. To be sustainable you have to have a
certain level of solar
radiation. You dont
have to necessarily be
in the highest-radiation
country in the world,
but it should be strong
enough so costs are
competitive. And, he
adds, his company is
looking for markets
where you dont face
regulatory risks like
in Spain.
In Burgoss opinion
Spains energy reform
has killed its PV
market by eroding
investor confdence.
And, he continued,
Spain has an excess of capacity on the
electricity market so there is no room for
new installed megawatts here. For the next
few years, prospects are very bad for PV
technology.
For Solarpack, moving into new markets
was only partly a matter of choice. We were
prepared to go abroad and conquer new
markets, said Burgos, but we really felt the
Spanish market was decreasing so we had to
go abroad.
Burgos sees the South African solar market,
with its government grants, as particularly
interesting. It is a growth market and he
notes that we are all there almost all the
developers. He pointed to fnding sources
of fnancing as an important difference
between markets: Where your debt comes
from changes from market to market, he
said. Interconnection is also a challenge
as different markets handle regulation
differently. And how developers secure
tariffs is a big difference. Its regulated in
some countries, in others you go for private
consumers and sign PPAs.
A CRITICAL MASS ADVANTAGE
Being frst in Peru has been a challenge,
Burgos said. Our developments are the frst
PV plants to be built in the country, frst from
a regulatory perspective and second for the
construction you need to fnd and organise
resources with enough experience to build
this. In a place with more PV plants, more
critical mass in the region, we would have
had the advantage of better contractors who
were more effcient.
Burgos refers to Tacna and Panamericana,
Solarpacks two Peruvian plants, as twins.
The plants are very similar in size, technology
and equipment, and only slightly different in
terms of GHI.
The plants are 100 km apart, and in
describing them Burgos again invokes
the idea of critical mass as a development
and operational advantage. Two times
20 MW was a good option, he says,
because it is more diffcult to fnd grid
connection points with 40 MW of capacity
than with 20 MW. Other challenges included
environmental and grid access regulations
that specifed different conditions for
projects below and above 20 MW, another
reason to go for 2x20. Getting the contracts
in place was not easy, Burgos said, but he
also said the process was nothing special
compared to other countries.
MOVING INTO SOUTH AMERICA
If you want to move [into the South
American market], you have to open
shop and be patient and invest signifcant
amounts of money until the projects come
into operation, Burgos advises. In our case,
in Chile, its been four years until we have
started construction in one big project. So
thats the main comment. Invest heavily and
be patient until the projects come out: this is
an important message from our experience.
On the other hand, he said, South America
is considered to be slightly larger in terms of
size than what it is in reality, so you have to
be careful with numbers. In terms of numbers
of gigawatts that are announced, etc this
is not a gigawatt market, he said. While he
noted that theres a lot of expectation, he
predicted that many projects currently in
development will never come online.
Given the size of the region, he
cautioned, the amount of PV power it can
take at this moment is not that much. This is
not a market where nobody has landed yet;
lots of companies have landed in the last two
years. And since its a free market you really
have to be competitive to get PPAs with the
consumers thats the main point.
Tildy Bayar is Associate Editor of
Renewable Energy World magazine.
Inaugurating the 20 MW Tacna PV plant in Peru, which was built at
the same time as its twin plant Panamericana. The two plants are
100 km apart and are similar in technology and equipment.
Solarpack
BUSINESS STRATEGY
0305REWLSSolar_11 11 5/10/13 2:48 PM
H
ow strange that the development of
many solar array felds has largely
become an exercise in massive
excavation, grading and stormwater
management. This is ironic when we consider
that such projects carry the sustainable tag.
Yet there is a better way. Such terrains can be
developed with minimal disturbance to the
site footprint, within an existing regulatory
framework and with less impact to sensitive
environmental features.
A module elevation site development
technique can be used as a primary tool for
determining fnished grades. This approach
emphasises an engineering design that
focuses on environmental harmony,
which allows developers to better control
development and cost schedules while
minimising mitigation, conveyances and
land banks. Several solar developers have
taken this path, with demonstrated results.
RETHINKING CONVENTION
Solar arrays have historically been large
grading and storm water management
projects because of the clients criteria for
installing the fxed or movable support racks
of the array. Developers typically grade
sites to a profle such as 2% maximum east,
west and south slopes and a 1% maximum
north slope. On sites with existing slopes
of 5% or more, the biggest line item is
earthmoving, which, of course, requires
pre-construction notifcations, permitting,
costly studies and signifcant mitigation
efforts, and the co-ordination of electrical,
structural, geotechnical, environmental and
civil engineers.
RETHINKING ARRAY
FIELD CONVENTIONS
A module elevation approach can save
time and money on site terrain
In many cases the development of solar array felds has become an exercise in making costly changes to the terrain. But
there is a better way, fnds Michael Crowley.
Solar array support post heights are 1.22-1.83 metres on average to optimise
material costs and issues surrounding array rotation clearance. Kleinfelder
SITE DEVELOPMENT
0305REWLSSolar_12 12 5/10/13 2:48 PM
SITE DEVELOPMENT
One solar energy developer decided to
take a different perspective as it considered
the development of a 9.7 ha site in North
Carolina, US, that is topographically diverse
and on which slopes are greater than 10%.
The site had one drainage way and two
jurisdictional wetland areas that had to
remain undisturbed. Initially the developer
looked to achieve a grading profle to match
the industry standard.
Early calculations estimated the need to
move nearly 38,000 m
3
of material, which
came to more than US$500,000 in estimated
earthmoving and excavation costs.
Subsequently the client relaxed grading
specifcations to 3%5% maximum east,
west and south slopes and 1% maximum
north. The new specifcations cut the grading
estimates to nearly 19,000 m
3
and halved
the earthwork costs. But, even with relaxed
grading criteria, the cost for grading and
earthwork exceeded the project budget.
Instead the developers engineer
recommended that the team take a module
elevation plan approach that focuses on the
orientation of the arrays and the array post
heights instead of the grading.
ELEVATION APPROACH
Typical slopes for an array allow for a
5%-plus maximum slope for south, east
and west facing arrays and a less than 1%
downhill slope for north facing arrays. In fact
some manufacturers allow slopes of up to 9%
and, in special cases, up to 15% for south,
east and west facing arrays. The less than 1%
north is preferred to avoid panel shading,
but can be mitigated with sometimes costly
increases in support post height.
Support posts higher than the
conventional optimal 1.83 metres would
likely require considerably more in materials,
which would exceed the cost of grading.
Post heights lower than 1.22 metres would
create a clearance issue between the panels
and the ground.
In a module elevation approach, the
engineer divides the site into blocks of
arrays. For instance, the site in North
Carolina was divided into 18 array blocks. For
each block, the engineer elevated the array
1.221.83 metres above grade and
assigned elevations to the four corners
and intermediate points. Areas where the
array plane was greater than 1.83 metres
above existing grade were designated
for fll, while those areas that showed less
than 1.22 metres above existing grade
were designated for cut. Subsequently
the site grading plan became a series of
localised cuts and flls and a much smaller
grading footprint.
SOUTHWESTERN SIMILARITIES
A southwestern US solar developer derived
similar benefts from the module elevation
approach when it sought to develop a site
that included a number of jurisdictional
washes (dry creeks or stream beds that
temporarily or seasonally fll and fow after
suffcient rain).
The typical approach would have been
to submit a pre-construction notifcation
and apply for a nationwide or individual
permit through the US Army Corps of
Engineers. The developer would have had
to fll the washes and construct the site to an
appropriate grading profle.
Depending on the required permit, an
additional year or more would have been
added to the project schedule, which would
have put the project at risk of missing the
customers commercial operation date.
In this case, due to the need for a Section
Harvesting solar energy with
SolarMax!
What makes solar power plant operators as happy as far-
mers? Quite plainly: maximum results day in and day out.
With the powerful SolarMax inverters you can easily create
the best prerequisites for maximum energy yields.
SolarMax stood for top-class Swiss quality for more than
20 years: outstanding materials and workmanship, absolute
reliability, effciency, and durability. Furthermore, we offer our
customers extensive warranty coverage and excellent advice
combined with intelligent solutions for plant monitoring.
Come follow us to the sunny side plant SolarMax inverters
into your solar power plant.
M
a
x
im
ise

your yield
www.solarmax.com
Hall B4 I Booth 110
0305REWLSSolar_13 13 5/10/13 2:48 PM
SITE DEVELOPMENT
404 (B) (1) Alternatives Analysis under an
individual permit scenario, there was a high
likelihood that the project would not be
approved at this site. Even if approved, the
study alone would have exceeded $150,000,
not including mitigation measures both on
and off site.
The approximately 20 ha site in southern
Arizona would have required the sitework
contractor to import over 76,000 m
3
of
material with an estimated cost of nearly
$1.5 million to meet the typical grading
profle and fll the washes. The foundations
in this development ranged from
0.612.4 metres. Engineers would have had
to design the array to span several washes,
which would have exceeded the maximum
3.01 metres of centre span between
foundations. Ultimately the cost of grading
and earthwork made the site undevelopable.
Instead the engineer stepped back and
created a design tool to analyse the site and
avoid the jurisdictional washes.
Using a predecessor to the now-validated
module elevation plan method, each string
of arrays was profled to view the existing
grade and array plain slope. By focusing on
the slope of the array plain and iteratively
comparing each array to the next successive
string, the engineers were able to minimise
grading requirements by varying the height
of the solar array supports so that there was
no impact to the jurisdictional washes and
the topography of the site was left largely
unchanged. The site was developed with
a site preparation cost, including minimal
grading, of less than $200,000.
The project included buffer areas and
native plantings which, while protecting
the integrity of the ephemeral waterways,
minimised impact on the local habitat. The
project could have been designed and
permitted conventionally using techniques
of mass grading, installation of storm water
best management practices and a much
greater footprint. However, applying the
module elevation approach to sitework
allowed the team to deliver a solution
that worked within the existing regulatory
framework with a minimal footprint. There
were fewer permits to obtain and far less
impact on sensitive environmental features on
the property.
The site development strategy using the
module elevation plan took the regulatory
effort out of the equation, resulting in a
project with a lower site development cost
and fewer permitting obstacles.
REGULATORY INVOLVEMENT
Developers exert considerable effort to
screen sites in an effort to avoid potential
encumbrances and minimise regulatory
involvement. Permits and inconsistencies from
one jurisdiction to the next often contribute to
a high degree of risk and often compromise
project viability.
While permits ensure environmental
sustainability and protect natural resources,
they also take considerable time and cost
to meet. The developer must engage
consultants to perform the requisite studies
and applications, and allow time for the
agency having jurisdiction to review them.
Typically the biggest threat to any
renewable resource project is permitting
and the possibility that the reviewing agency
will not give the green light, a growing
concern considering that increasingly
stringent regulations will make it even more
diffcult to advance development without
regulatory involvement. Had the solar
site development projects in North
Carolina and Arizona moved forward
with conventional mass excavation,
sitework and grading, the developer
would have been subject to a lengthy
permitting process.
The module elevation approach
emphasises fnding a solution with
minimal impact on the environment
that allows developers to better control
development and cost schedules while
minimising mitigation, conveyances and
land banks.
OPTIMISING SITE SELECTION
The module elevation approach is also
an effective site-selection tool for solar
developers looking to gain knowledge
about potential site development costs
before becoming fnancially committed
to a site.
Traditionally, true site development costs
were known only after the civil site design
was completed. But by using GIS topography
(often available for free from public domain
websites) and applying a module elevation
plan analysis, the developer can gain valuable
cost information early in the site selection
process, improving fnancial forecasting and
decision-making well before the civil site
design process begins.
In addition, an engineer can combine
the module elevation plan technique with
other desktop constraints-analysis services
to provide the developer with a very
complete early picture of the constructability,
permitability and extent to which the
proposed development will impact on
jurisdictional areas, minimising or eliminating
possible permitting nightmares later.
Focusing on array orientations and the
heights of support posts instead of the
grading specifcations through the module
elevation approach offers developers an
opportunity to minimise regulatory concerns
while delivering more affordable, timely
and sustainable solar projects with a much
smaller grading footprint.
Michael A Crowley, PE is a programme
manager with architecture, engineering and
science consultancy Kleinfelder.
e-mail: mcrowley@kleinfelder.com
The typical east, south or west facing solar array can handle a maximum slope of
5%-plus. Kleinfelder
0305REWLSSolar_14 14 5/10/13 2:48 PM
TECHNOLOGY PROFILE
R
eduction in balance of system (BOS)
costs is the holy grail of solar project
development. Tracking the Sun, an
annual PV cost-tracking report produced by
the US Department of Energys Lawrence
Berkeley National Laboratory (LBNL), found
that non-module costs represent a sizable
fraction of the installed price of PV systems in
the US in 2011, US$4.90/W for commercial
systems of 100 kW or more, while utility-
sector PV systems >2000 kW averaged
$3.40/W. Continuing deep reduction in the
price of solar panels will require concerted
emphasis on lowering the portion of non-
module costs, the report concludes.
One cost reduction often claimed is through
the use of trackers. Tracker manufacturers
typically indicate up to 30% additional
energy yield per unit of module aperture
by the use of dual axis tracking technology,
when compared with fxed aspect modules.
But how much could trackers in combination
with other improvements potentially reduce
costs for an entire installation?
California company Inspired Solar
Technologies (IST) claims its dual-axis
backtracking system can signifcantly reduce
LCOE and achieve up to 90% more energy
yield per unit of land. IST says its tracker
system yields 38%45% over fxed mount
systems, and its array design saves 20%25%
from tighter packing; the balance of cost
reductions comes from reduced power losses
and reduced parasitic demand, it says.
Founder and CEO Ken Oosting believes
his company has found the answer in a
combination of system-wide improvements
some large and some small that leverage
each other. The key to achieving the
breakthrough was patient optimisation of a
large number of parameters, he says.

THE TECHNOLOGY
The IST ArrayBot features a dual-axis
backtracking design. Dual-axis trackers
typically use a motor, often a stepper motor,
which offers an advantage for very small
and precise angular changes. Unusually
for a tracking system, ISTs uses hydraulics,
which are more generally associated with
large-scale movement. While passive
hydraulic systems are often used in
single-axis tracking, ISTs is active, driving
the tracker.
LIQUID GOLD FOR
TRACKING SYSTEMS
How hydraulics can improve returns
The ArrayBot uses a feedforward motion control
system that pre-calculates pointing vectors.
Inspired Solar Technologies
A new kind of tracking system in combination with system-wide savings could substantially reduce balance of system costs,
claims one company. Tildy Bayar investigates.
0305REWLSSolar_15 15 5/10/13 2:48 PM
TECHNOLOGY PROFILE
In Oostings former incarnation as a
robotics fellow at the Georgia Institute of
Technology, he worked on feedforward
control to produce smooth input to move
robot arms. That work had implications for
how we control a hydraulic unit, he says,
not because of stability, but to get effciency
and improved reliability and maintenance
metrics out of it.
The ArrayBot uses a feedforward motion
control system that pre-calculates pointing
vectors, joint angles and rate of change to
give a fuid fow demand for the hydraulic
pump, which tells precisely how fast to
run the single motor per tracker. Pointing
vectors are calculated for each day. If
there are weather changes the system can
adapt during the day, says Oosting; the
calculations are done overnight so the days
range is known. If there are heavy winds the
motor speed can be adjusted.
IST says it has recorded pointing vector
accuracy (continuous movement, rather than
incremental) at better than 0.004 degrees.
While accuracy varies between updates in
most tracked solutions, Oosting says Our
smooth movement means our accuracy
remains high at all times.
IST joins a growing renewables sector
trend for taking proven components from
other industries, such as automotive. Our
components are all well known and have a
good track record serving in industry and
harsh environments, Oosting says.
One issue sometimes seen with hydraulics
is fuid leaks and/or fres. The ArrayBot uses
a non-toxic, biodegradable hydraulic fuid,
eliminating the danger. We had to pull in
the experts and make sure we got the right
seals, pumps, hoses etc, says Oosting.
Our fuid has a great operating range for
temperature and is easy-cleanup, but its
not particularly cheap in fact its quite a
bit more expensive than standard hydraulic
fuids, he says. But when you think about the
fuid as a component of the tracker its a very
small percentage of the overall expense. It
avoids environmental issues for customers
and additional O&M costs.
ARRAY DESIGN
Each tracker holds a 540 m
3
array capable
of supporting 300 standard sized solar
panels. IST claims the form factor of its
solution allows for a smaller footprint, tighter
solar plant layout and correspondingly
improved land use. The standard
kW/ha measurement is 55.5 acres (around
2 ha)/MW. Our numbers run between
three and four acres (11.6 ha)/MW, and in
some cases we can go below three acres
(1 ha)/MW, says Oosting.
A small footprint makes the ArrayBot a
good option for integration with wind farms,
he says. Most other options require a lot of
fat land; we dont. On our demonstration
site were on a knoll at the peak of a hilly
area. He also suggests placing the array in
landflls, even in food plains because we can
mount the inverters up on the post.
OTHER COST REDUCTIONS
We found a way to reduce the number of
components in the array frame by about
300 I wont give away the secrets to that,
Oosting says. We have fewer moving parts
per MWh than even single-axis trackers. We
have substantially fewer electric motors than
any dual-axis or single-axis tracking system
that were aware of.
Manufacturing costs are another
signifcant vector. Oosting says the company
has worked closely with different vendors
Timkin, cylinder manufacturers in order
to verify that the ArrayBots components
could be easily and cheaply manufactured.
One problem you can run into in designing
something thats really innovative like this,
he says, is a great idea looks good on paper
but nobody can make it. In the solar industry
a lot of ideas out there look good, but will
they ever be commercially available?
The systems passive energy consumption
is less than that of a 40 W light bulb during
the majority of operations. Given our
100 kW per tracker capacity, I think this puts
us squarely at the bottom of the chart for
parasitic energy use, says Oosting.
O&M
IST projects its O&M costs to be less than
fxed systems, a surprising claim, due
to several features. First, the company
plans to offer a robotic cleaning solution.
Our technology is particularly suited for
automatic cleaning because we have
300 panels in one array. You cant afford to
put a robotic cleaner on an individual array
with 30 panels, Oosting says.
Second, the system is low to the ground.
Electric motors, especially in dual axis,
tend to be up in the air and not very easy
to get to. Ours is right at ground level and
has just one electric motor per 300 panels,
he continues.
There is an incremental O&M expense
for motion (backtracking typically causes
motion loss of around 2%), but Oosting says
this may be outweighed by the reduced
cleaning and maintenance costs. The array
can be tilted during rainstorms to facilitate
passive cleaning, and is exposed to less dust
and debris from the ground because, when
in stow, it is 9 metres off the ground.
FINANCING
Financing depends on bankability, and
ours is going to improve with time just like
everybody elses, says Oosting. He should
know: he has taken 10 previous companies
to market. As with any new technology, you
have a long-term vision for where you want
to go. We had to get through the market
acceptance and build our installed base
but this will be reality as we go forward,
he says with quiet assurance.
There are market forces that are beyond
our control things like Solyndra were very
unfortunate for all of us in the solar industry,
and the problems the panel manufacturers
are having too, he continues. Big-picture
market things are unpredictable, but we
have to adapt within that market.
Tildy Bayar is Associate Editor of
Renewable Energy World.
IST says it was able to lower the count of
components in the array frame by about
300 pieces.
Inspired Solar Technologies
0305REWLSSolar_16 16 5/10/13 2:48 PM
OMANS SOLAR
POTENTIAL IDENTIFIED
Omans Public Authority for Electricity and
Water (PAEW) has identifed four potential
locations where large-scale solar power
projects can be built, and land has been
allocated at two of the locations.
Dr Ali bin Hamed al Ghafri, assistant
chairman for international relations and
media at PAEW, has said that as many as
23 locations were identifed and tested.
Northern Oman was deemed most feasible
for solar development, while some areas in
the south were found more appropriate for
wind projects.
Of these 23 locations, four Adam, Manah,
Al Khaboura and Ibri have been identifed
as most feasible for solar power projects.
Adam and Manah have been identifed
for large-scale projects. Land at these two
locations has already been allocated and
tenders are being studied and awaiting fnal
approval, Ghafri said.
The solar power projects in Adam and
Manah will be large-scale projects in the
100 MW200 MW range, Ghafri said, while a
plan is being laid out on whether to use PV
and CSP technology for the project.
ENERGY STORAGE
MARKET SET TO GROW
The global PV storage market is forecast to
grow rapidly to reach US$19 billion in 2017,
from less than $200 million in 2012, according
to a new report from IMS Research/IHS.
Following the introduction of an energy
storage subsidy in Germany, global
installations of PV storage systems are
forecast to grow by more than 100% per year
on average over the next fve years, to reach
almost 7 GW in 2017.
Storage is predicted to be used in larger
systems in order to improve the integration of
PV into the grid, increase the fnancial return
of PV systems and meet the increasingly
demanding connection requirements that
some countries are imposing on variable
output electricity sources. Utility-scale PV
systems with storage are forecast to grow to
more than 2 GW annually by 2017 according
to the report, with Asia and the Americas
dominating this market.
While Germany is forecast to remain one
of the largest markets for PV storage, energy
storage solutions will also be deployed in
a wide range of other regions, the report
found. As the frst country to introduce a
subsidy for PV storage, Germany will inspire
other countries to follow suit, if the scheme
proves successful, IHS expects.
UK ENTERS TOP 20
The UK has entered the top twenty utility-
scale solar markets for the frst time at number
14. Sixteen large projects, including fve of
10 MW or more, were completed in Q1 2013,
when Renewables Obligation support was
reduced. The UKs largest project, at 33 MW,
was completed on a former Leicestershire
airfeld by developer Lark Energy.
The nation ranks even better perhaps as
high as number 10 in terms of installations
of 5 MW and above. A lot of the British solar
power plants were installed under the FiT,
which is capped at 5 MW, explains Wiki-
Solars Philip Wolfe, and many of the recent
projects were frst designed and consented
on that basis, even if now registered for the
Renewables Obligation.
While this rapid growth bodes well for
the domestic PV industry, two of the UKs
top ten developers and four of the top ten
EPC contractors are German, according to
Wiki-Solar. The leading owner-operator is
the UKs Lightsource Renewable Energy with
158 MW of capacity over 5 MW. Leading
EPC contractors include Portugals Martifer,
Germanys SAG Solarstrom and Abakus, and
the UKs Stepnell, T Clarke and Anesco.
There are 10 plants over 120 MW in
Germany, China, the US and India, each of
which has installed over 1 GW of utility-scale
capacity. Wymeswold, the UKs largest plant,
stands at number 98 in the global rankings,
led by the 250 MW Agua Caliente project in
Arizona, US.
CHINA TO CUT LARGE-
SCALE SUBSIDIES
Large-scale solar developers may lose in
China as the nation considers restructuring
its subsidies to favour smaller projects in
order to promote new plants in areas with
power shortages.
Currently, developers in China that are
selected by the government can obtain
a one-time return on investment through
subsidies of at least RMB5.5 ($0.88)/W under
some programmes if they complete work by
certain deadlines.
These offer a quicker payoff to investors
than plants that qualify only for the FiT, which
guarantees above-market prices for power
over 20 years.
A new policy may abolish one-time
subsidies, said Meng Xiangan, vice chair
of the China Renewable Energy Society
in Beijing. At the same time, a separate
subsidy based on power production would
be extended to low-voltage plants that dont
typically supply utilities, he said.
Should the government confrm the move,
incentives under the Golden Sun programme
would shrink just as China calls on developers
to install more PV devices than any
other country.
DUBAI OPENS SHAMS 1
The UAE has offcially opened its frst
large-scale solar energy plant, the three
companies behind the Abu Dhabi project
have announced.
The 100 MW Shams 1 concentrating solar
power (CSP) plant, which uses parabolic
trough technology, took the UAEs Masdar
(60% owners), Frances Total (20%) and
Spains Abengoa (20%) three years to build,
costing around US$600 million.
Using 258,000 mirrors on 768 tracking
collectors, Shams 1 is one of the largest CSP
projects in the world with an area of 25 km
2
,
and is also the largest solar plant in the fossil
fuel-reliant MENA region.
With the addition of Shams 1, Masdars
renewable energy portfolio accounts for
almost 68% of the Gulfs renewable energy
capacity and close to 10% of the worlds
installed CSP capacity.
Abu Dhabi has set a target to get 7% of its
electricity from non-fossil sources by 2020.
NEWS IN BRIEF
BC REWNA
IFC SMA SOLAR TECHNOLOGY AG
13 SPUTNIK ENGINEERING
Advertisers Index
0305REWLSSolar_C3 3 5/10/13 2:48 PM
Progressive
Changes
for the future
Nov. 12-14, 2013
Orange County
Convention Center
Orlando, FL
0305REWLSSolar_C4 4 5/10/13 2:48 PM

Renewable Energy World Magazine May/June 2013

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Renewable Energy World Magazine May/June 2013

Uploaded by

Copyright:

Available Formats

THANK YOU SUBSCRIBERS!

Youve joined 50,000+ readers worldwide to be more informed

Look for our ALL NEW

2013 Conference & Exhibition

July 23 26, 2013

0305REWWindTech_2 2 5/10/13 3:04 PM

You might also like