REW 20060901 Sep 2006

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Why PV in Africa needs a new approach Biomass resources
and trade The outlook for solar silicon Netherlands first
offshore wind farm Building-integrated wind power
Financing Chinas renewables boom PV in the United States
SeptemberOctober 2006 Volume 9 Number 5
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Proven
Technology
investment that pays...
The S88 2.1 megawatt wind
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The unique Flexi-Slip System
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the highest in its class.
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Australia China
Denmark Germany
India Netherlands
North America
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Contents
Regulars
FROM THE EDITOR
NEWS
A round-up of news from around the
world
DIARY
ADVERTISERS INDEX
Cover photograph The facade of
the MANCAT building in
Manchester, UK, displaying
building integrated photovoltaic
panels. These act as a rainscreen
and generate electricity, and are
one of a number of sustainable
features on this new building
DANIEL HOPKINSON
The last word
Enduring freedom Swedens
plans to wean itself off oil
The Swedish Prime Minister gives his
views on how, and why, Sweden will
end its dependence on oil and create
the worlds first developed oil-free
state
By Gran Persson
September-October 2006 Volume 9 Number 5
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Features
PV in the US where is the
market going, and how did it get
there?
Despite a booming global PV industry,
the US has fallen behind in the
manufacturing of solar cells and has
long-since lost its leading position in
the world market. However
increasing domestic demand and the
emergence of some thin-film leaders
has helped improve the outlook for the
sector
By Paula Mints
Small wind rising is the market
for building integrated wind
power about to pick-up?
Interest in micro-generation continues
to increase, particularly in the UK. This
article takes a look at some of the
main players in the rooftop turbine
field and provides some interesting
insights into the future of
building-mounted wind power
By Jon Slowe
Urban challenges new research
on integrating wind energy in
buildings
This article presents some recent
research into the performance and
potentials of building-integrated wind
and hears about some new systems
which have been designed to
model air flows in the urban
environment
By Eize de Vries
News feature
Offshore progress update on the
Netherlands first offshore wind
farm
As the Netherlands first offshore wind
farm takes shape, Renewable Energy
World reviews the latest progress, and
speaks to some of the people behind
the project
By Eize de Vries
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Contents
Features continued
Silicon shortage supply
constraints limit PV growth until
2008
As the photovoltaic industry continues
its explosive growth, the continuing
shortage of silicon threatens to slow
expansion and push up prices. In
response, the silicon industry is
planning to ramp up production in the
next few years
By Hilary Flynn and Travis Bradford
A bright future why crystalline
silicon will continue to deliver
Despite much talk about silicon
shortages and thin film technologies,
crystalline silicon will continue to be
the workhorse of the PV industry for
years to come
By Peter Woditsch
Success on the Horizon US wind
company goes from strength to
strength
More and more small wind developers
are being taken over by larger
companies or financial institutions.
One such developer is Horizon Energy,
which made international news when
it was taken over by investment firm
Goldman Sachs
By Elisa Wood
Keeping cool solar
air-conditioning
In this article we take a look at one of
the most exciting emerging fields of
renewable energy, outline some of the
new solar cooling products on the
market, and review several projects
currently being developed
By Alasdair Cameron
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The interview
Blazing a trail. An interview with
Conergys Hans-Martin Rter
Founded in 1998, Conergy has
emerged as one of the most
successful renewable energy
businesses, employing over 1200
people in five continents. In this
interview, its founder and CEO
discusses business strategy and plans
for the future
By Jackie Jones
Technology
fundamentals
Technology fundamentals
photovoltaic systems
At a time when so much attention is
being paid to the PV market, we go
back to basics and take a look at the
principles and processes behind this
exciting technology, covering
the physics, different cell and module
types and the related equipment used
in photovoltaic generation
By Volker Quaschning
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Clipper Windpower Plc
2.5MW of beauty...and intelligence.
Meet
Liberty.
Shes unique. Much more than a number. Hence, the name.
Her DGEN-Q distributed gearbox and MegaFlux
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magnet generators will free you from the stresses of todays
standard wind turbines. At the same time, shes compact
enough for installation with a crane sized for standard 1.5 MW units.

For more than a year weve subjected her to the challenges, trials
and rigors of her Wyoming test site. Despite lightning strikes, extended
periods of extreme winds and frigid temperatures, once installed...she
saw no need for the large crane to return. She remains unscathed...
a truetribute to her design. Shes now in full production in Cedar Rapids,
Iowa. With GL certication to 20 and 30 year fatigue lives, shes
engineered for the highest reliability. Sleek and classy, shes
quality through and through.

Beauty, intelligence, and surprisingly low maintenance.
Liberty...she just might be the wind turbine of your dreams.
Learn more about Liberty at www.clipperwind.com.
_______________
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Contents
A growing role opportunities,
challenges and pitfalls of the
biofuels trade
As the biofuel and biomass industry
goes from strength to strength,
questions are emerging regarding its
availability and environmental
credentials. This article provides a run
down of biomass potentials, look at
some of the recent studies on
sustainability and examine some of the
methods being used to ensure the
greenness of energy production from
biomass
By Martin Junginger, Andr Faaij,
Frank Rosillo-Calle and Jeremy Woods
The business of optimism
Wisconsins Midwest Renewable
Energy Fair
Renewable energy is a business based
on sound technology and the principles
of sustainable living. As such it
generates levels of enthusiasm and
passion which most industries can only
dream about. Renewable Energy World
went to the worlds biggest grass roots
renewable energy fair to get a feel for
this excitement
By Jeff Decker
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151
Features continued
Fresh ideas needed building the
PV market in Africa
For the last twenty years, the donor
community has been promoting
off-grid PV as an essential part of the
African development programme, but
with limited success. Now fresh ideas
are needed, including a new way of
thinking from both donors and
governments one that views on-grid
being as important as off-grid
By Mark Hankins
Finding the money is Chinas
renewable energy boom real, and
if so, how will it be financed?
China is looking to increase the share
of its rapidly growing energy demand
that is derived from renewable
sources, but what are the key policies
that will drive this growth, and are the
financial instruments in place that will
pay for them?
By Joseph Jacobelli
Liquid assets factors
contributing to the development of
small hydro in China
With small hydro growing at 4 GW per
year in China, we investigate one of the
largest renewable energy markets in the
world, ask how it got that way, and
what the Chinese governments policy
is for the future
By D. Pan
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Some see an endless horizon
We see endless potential
At Vestas, its never been our ambition to make the worlds biggest
turbines just the most efcient. Take our new V90-3.0 MW. Rather than
simply scaling up existing technology, weve taken a fresh look at turbine
design. By rethinking everything from blade and nacelle technology to
tower construction and transport, the V90-3.0 MW delivers more power
from a smaller investment. And that makes renewable energy even more
competitive. If youre looking for an efcient route to more power, look
no further than the V90-3.0 MW.
www.vestas.com
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2MW 60Hz
with Voith WinDrive
DeWind D8.2 with
Voith WinDrive Hydrodynamic Gearbox
DeWind
D8.2

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... the alternative
"..... the alternative"
www.eunrg.com
Head Ofce
EU Energy Ltd
Tel: +44 (0) 1908 424 455
Fax: +44 (0) 1908 424 356
info@eunrg.com
USA Ofce
EU Energy North America Inc.
Tel: +1 940 455 7450
Fax: +1 940 455 7451
northamericansales@eunrg.com
Canada Ofce
EU Energy Canada Ltd
Tel: +1 416 960 9960
northamericansales@eunrg.com
Subsi di ari es of the CTC group of compani es
Synchronous Generator connected
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Meets requirements of all grid codes
80 & 90m rotor
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Cold weather packages
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RENEWABLE
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ISSN 14626381
Group Publisher David McConnell
Publisher Emeritus Edward Milford
Editor Jackie Jones
Assistant Editor Alasdair Cameron
Design Danny Gillespie
Production Co-ordinator John Perkins
Production Controller Julie Challinor
Sales Managers Ekow Monney, Liam ONeill
Published by Pennwell Corporation
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Advertising: For information on advertising in
future issues of the magazine, please contact
David McConnell at PennWell on
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2006 PennWell Corporation
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Opinions expressed in this publication are not necessarily those of the Publishers
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RENEWABLE
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SeptemberOctober 2006 RENEWABLE ENERGY WORLD
11
FROM THE EDITOR
Member, BPA Worldwide
T
his is the 50th issue of Renewable Energy World, which we launched back
in 1998 to serve a sector that was just emerging from its adolescence,
determined to be taken seriously. Our message back then, as now, is that
renewables are not an alternative for the committed few, but that they had
to become an essential and significant part of the energy mix. And we
said REW was for the people who were going to make that change happen.
In the intervening years, the industry has transformed itself. It has matured, grown, and
many more players some very large indeed have entered the arena, while others
have moved on. Renewables have become a big business. And yet people in the
renewables sector still have a particular sense of purpose, a particular passion. Its a
great business to work in.
As REW was launching, so was a Hamburg-based, one-man renewables business.
That business has grown into Conergy, and we interview its founder and CEO on page
43. Hans-Martin Rters personal passion for renewables is unmissable, and he senses
the same engagement amongst his colleagues. He also identified, very early, the need
to give his customers the sense of being part of a solar movement. Such grassroots
individual enthusiasm for renewable options is explored on page 151 by Jeff Decker,
who joined 18,000 others at the Midwest Renewable Energy Fair in the US. That kind
of human energy continues still to nurture our sector.
Mostly, the years since 1998 have seen renewables on the up. But lessons have
been learned, too. In an important article on page 103, Mark Hankins looks back on
the history of solar PV in Africa its now time, he says, to do things very differently.
Its pleasing to look back at the names of the advertisers in the first-ever REW, and see
how many of them are with us still. We thank them for their continued support.
Lets continue to push forward renewables and to seeing where we have got to
another 50 issues from now.
Jackie Jones
Editor, Renewable Energy World
P.S. Starting in autumn 2006, REW will have an increased web presence, with many
more features on-line. Remember to check in at www.renewable-energy-world.com
_____________________
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ONE COMPANY BRINGS YOU BOTH.
WIND MEASUREMENT
WINDFARM SCADA
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XVII of the Energy Policy Act of
2005 (EPAct) that President Bush
signed into law on 8 August 2005.
The Energy Policy Act has set the
country on a path forward to
increasing clean energy sources that
will power our robust economy for
generations to come, said Secretary
Bodman.
BP ALTERNATIVE ENERGY
BUYS US WIND COMPANY
With its purchase on 15 August of
US-based wind power developer
Greenlight Energy, Inc., BP says it
will be able to accelerate its plans
to develop a leading wind power
business in North America.
Founded in 2000 and based in
Charlottesville,Virginia, the
company has a portfolio of some 39
mature and early stage development
projects across the USA with a
potential total power generating
capacity of 6.5 GW.This portfolio
contains a number of projects
which BP expects to be able to
develop over the next five years.
BP has acquired all the shares of
Greenlight Energy for a
approximately US$98 million,
excluding working capital and tax
adjustments. BPs US wind power
business is a key part of BP
Alternative Energy, the companys
low-carbon power generation
business.
This purchase gives BP
Alternative Energy immediate access
to a large number of high quality
wind development projects across
the country, including a number of
projects we expect to be able to
develop over the next few years,
said Steve Westwell, chief executive
of BP Alternative Energy. Matthew
Hantzmon, Managing Director of
Greenlight Energy, said The
strategic mandate of BP Alternative
Energy is a perfect fit to scale up
our business and enable the build-
out of Greenlights portfolio.
In July, BP Alternative Energy
announced it had reached
agreement with the wind project
developer and turbine manufacturer
Clipper Windpower to acquire a
50% stake in a 2 GW wind
development portfolio in the US, as
well as an agreement for the supply
of turbines with a generating
capacity of up to 2.25 GW over the
next five years.
SILICON BREAKTHROUGH
FROM DOW CORNING
Dow Corning Corp. says it has
achieved a milestone in solar energy
technology: a solar-grade (SoG)
silicon derived from metallurgical
silicon that exhibits solar cell
performance characteristics when
blended with traditional polysilicon
feedstock.This new silicon
NEWS
US$2 BILLION FEDERAL LOAN
GUARANTEE PROGRAMME
UNVEILED
A new programme for new energy
loan guarantees has been unveiled
in the US. On 7 August, US
Department of Energy Secretary
Samuel W. Bodman presented DOE
programme guidelines for a total of
US$2 billion in loan guarantees to
help encourage investment in
projects that employ new energy
technologies.
With these loan guarantees we
hope to encourage creativity and
ingenuity that will help us
strengthen our nations energy
security, said Bodman.Projects
eligible to receive loan guarantees
are vast and varied.We hope to spur
investment in new renewable
energy projects like solar and wind,
as well as clean coal technologies
and efforts that can convert
cellulosic biomass into ethanol.
According to the DOE press
release the solicitation, due to be
issued soon, will govern the first
round of loan guarantee
applications, valued at a total of $2
billion. In addition, over the coming
weeks, DOE will propose draft
regulations for public comment that
will govern future solicitations.The
Department says it views this first
round solicitation as a learning
opportunity that will assist in
building expertise before
permanent regulations are
developed.
Loan guarantees will enable the
Department to share some of the
financial risks of projects that
employ new or significantly
improved energy technologies that
avoid, reduce, or sequester air
pollutants and greenhouse gases.
Projects supported by loan
guarantees will help fulfil
presidential goals to diversify the
US energy sources, while reducing
reliance on imported energy
sources and will encourage energy
efficiency.The loan guarantee
programme was authorized in Title
SeptemberOctober 2006 RENEWABLE ENERGY WORLD 13
Send your news to Renewable Energy World
e-mail: rew@jxj.com Fax: +44 20 7387 8998
News
feedstock material, Dow Corning
PV 1101 SoG Silicon, is the first
commercially available feedstock
produced from such technology
using large-scale manufacturing
processes.
Dow Corning began bulk
production of PV 1101 earlier this
summer, and bulk customer
shipments began in August.
Progressive ramping up of the PV
1101 SoG Silicon production facility
to full speed is currently in
progress.
Until now, the solar industry has
largely relied on the supply of
polycrystalline silicon, a high-grade
purity product, originally developed
for the semiconductor industry.This
has meant that the solar industry
has in turn been subject to resource
restraint.The launch of PV 1101,
produced from a very different
route, will alleviate that restraint and
offer a new source of supply as well
as new technical and business
options for the solar industry.
PV 1101 is certainly one of the
most innovative technologies to
come along in the solar energy
industry since the manufacture of
the first silicon solar cells, said
Marie Eckstein, corporate vice
president and general manager of
Dow Cornings Advanced
Technologies and Ventures Business.
For years now, the solar industry
According to numbers from
the American Wind Energy
Association (AWEA), Texas has
now officially overtaken
traditional leader California as
the US state with the greatest
installed wind power capacity.
The findings were released
as part of AWEAs quarterly
report, and showed that Texas
cumulative total now stands
at 2370 MW, compared with
Californias 2323 MW, thanks
to 375 MW of new capacity
installed in 2006.
Altogether 822 MW of new
wind power have been
installed in the US in the first
half of 2006, and the country
is on target for another record
year of growth in wind power.
Total installed capacity in the
US now stands at 9971 MW,
making it likely that the
United States will become the
third country in the world to
pass the 10,000 MW mark,
after Germany and Spain.
Speaking about the report
AWEAs Chief Executive
Randall Swisher said: Wind
energy works, for Amercias
economy, environment and
energy security. Continuing
the federal commitment to
this clean energy source [the
Production Tax Credit] will
keep us on the road to a
sustainable energy future.
TEXAS OVERTAKES CALIFORNIA AS US FIRST WIND STATE
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been placed with the Vestas Group.
The project, to be located in the
North Sea, 12 nautical miles off the
Dutch coast, will consist of 60 of
the companys V80 2.0 MW wind
turbines.
The order has been placed by
Windpark Q7 Holding B.V., which is
jointly owned by the Dutch utility
ENECO, the Dutch developer
Econcern BV and the Dutch
investment company Energy
Investments Holding BV. It includes
supply and installation of the wind
turbines as well as a 5-year warranty
and maintenance contract. (The
customer will be responsible for the
supply of foundations and grid
connections through EPC
contracts.) We are very proud that
Windpark Q7 Holding B.V. has
gas emissions in the latest round of
the National Allocation Plans the
system that sets out how much each
countrys industry can pollute, and
so determines the price of carbon
in Europe.
Of the 25 member states only five
have submitted firm targets
(Germany, Poland, Lithuania, Estonia
and Ireland), while nine others have
submitted only draft reductions
(Belgium, Bulgaria, France, Latvia,
Netherlands, Portugal, Spain, UK and
Italy). Of the targets submitted,
many call for very small reductions
in greenhouse gas emissions over
the current allocations.The UK has
reduced its cap by only 2.9%,
Germany by only 3.4%, while Poland
has increased its cap by 17%.This is
in contrast to the European
Commissions request that average
reductions be around 6%.
The two countries with the
highest reductions are Spain and
Italy, with 16% and 13% respectively.
Furthermore,WWF and others
believe that the scheme is too weak
in any case, as most governments
give away their carbon allocations
for free, favouring the most
polluting industries. Moves are
underway for carbon allocations to
be auctioned off, something which
would help to achieve a more
realistic price for carbon, and
encourage greater reductions in
emissions. So far only the UK has
any serious intentions to auction
part of its allocation.
Since the emissions trading
scheme (ETS) was launched in
2005, the price of carbon has been
volatile, losing 70% of its value in
early summer as it was revealed that
many countries had set the first
round national allocation plans too
high, allowing their industries to
keep polluting and still come in
below their allocations.This caused
an excess of carbon on the market,
causing the price to collapse.The
latest round of allocations is unlikely
to do much to reassure the
emerging carbon industry that they
will not find themselves in a similar
position in the years to come.
120 MW NETHERLANDS
OFFSHORE ORDER FOR
VESTAS
The turbine order for a new
Netherlands offshore wind farm has
has hoped to be supplied by new
sources of silicon designed and
dedicated to them. PV 1101 is a
major step in that direction. It is a
step that will provide a means of
growth for the solar industry.
Gaetan Borgers, director of the
Dow Corning Solar Solutions, said
We can now offer the burgeoning
solar market two attractive supply
options.Through our majority
position in Hemlock Semiconductor
Corp., the worlds largest supplier of
polycrystalline silicon, we are
continuing to expand production
capacities for polysilicon.And now,
our new breakthrough blend
material is presenting customers
with another proven technology to
meet their material needs.
The PV 1101 blend material has
already been tested in independent
institutes and at several Dow
Corning Solar Solutions customer
production sites worldwide.The
testing showed that the blended
feedstock material exhibits
performance characteristics similar
to polysilicon in terms of solar cell
manufacturing and efficiency.The
results are very positive and we
have recorded a high interest for
our product. Orders have already
been placed. Borgers continued
PV 1101 SoG Silicon is the first
product manufactured at Dow
Corning Solar Solutions Groups
new production facility in Santos
Dumont, Brazil.While Dow Corning
has been providing materials to the
photovoltaic industry throughout
the companys history, it created the
Solar Solutions Group in 2001 to
focus on development and
commercialization of material
solutions that will improve cost
effectiveness, material availability,
durability and performance of
photovoltaic devices.
EU STATES WEAK ON
EMISSIONS TRADING
Environmental campaign group
WWF has branded the EU member
states too frail on emissions trading,
as many have missed the deadline,
or set embarrassingly low
reductions targets, for greenhouse
14 RENEWABLE ENERGY WORLD SeptemberOctober 2006
NEWS renewable-energy-world.com
MCT searches for 10 MW tidal
farm site
Bristol-based Marine Current
Turbines has announced that it is
investigating a possible site in
Wales for the construction of a
10 MW tidal farm, following the
publication of the UK governments
Energy Review and a Welsh Affairs
Select Committee report, both of
which called for the greater
deployment of renewables in the
UK.
MCT has already deployed a
300 kW SeaFlow device off the
coast of Devon, and is currently
building a 1 MW SeaGen
demonstration project in Strangford
Lough in Northern Ireland, due to
be complete by the end of 2006.
The Anglesey project would consist
of seven tidal energy generators
and would supply energy to
40006500 homes on the island,
representing 10%15% of the
islands electricity demand.
So far the project has received a
grant of 700,000 (1,010,000)
from the Welsh Assembly and
investigations are underway into
obtaining the necessary planning
and environmental permits.
Subject to the successful
completion of an Environmental
Impact Assessment (EIA),
construction on the project can
move forward and the whole
project could be completed by
2009.
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1-508-357-2221 www.evergreensolar.com
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renewable energy. It is estimated
that the rooftop mountable wind
turbine will produce 4000 kWh of
electricity a year, saving some 1.6
tonnes of carbon emissions. Its
slow rotation speed is claimed to
make it the quietest wind system
currently available.
The Fire Brigade is already
helping to tackle climate change
through a number of innovative
projects including a photovoltaic
system at Richmond Fire Station.
That project, completed in 2005,
converts daylight into electricity
from its 80 PV rooftop modules
and will produce over 11,000 kWh
of electricity per year saving
some 4.8 tonnes of carbon
emissions. In January 2005,Tooting
Fire station installed a solar heating
system to produce hot water and
save an estimated 16 tonnes of
carbon a year by heating the hot
water at the station.
Energy issues are a key priority
within the Brigade and we already
have a number of schemes in place
to help reduce the impact of our
operations on the environment,
said Valerie Shawcross, Chair of the
London Fire and Emergency
Planning Authority.The financial
and environmental benefits to
generating your own clean energy
are clearly numerous and the
turbines sustainable design means
it will hopefully become carbon
and energy positive within four
years.
UK Energy Minister Malcolm
Wicks commennted that:We can
chosen Vestas as supplier for their
offshore wind power plant, and we
look forward to continuing our
cooperation through the project
execution. It has taken time to
achieve this goal and we have been
through long and difficult
negotiations, however, both parties
now feel that we have entered a
contract which balances the
offshore risk with reward,
commented Anders Se-Jensen,
President of Vestas Offshore A/S.
With an accumulated offshore
market share of almost 70%, the Q7
project is a further strengthening of
Vestas leading position within this
market segment which is expected
to experience growth rates which at
least are in line with the onshore
market.
Delivery and installation is
expected to take place during the
second half of 2007, and the wind
power plant will be completed and
handed over during the first quarter
of 2008.
ALEO EXPANDS IN SPANISH
PV MARKET
Manufacturer and supplier of solar
modules Aleo is expanding its
business in Spain. Demand is
growing rapidly in the companys
most important European export
market. During the second week in
August, Gamesa Solar SA, a Madrid-
based renewables business, ordered
from Aleo over 11,000 modules with
a combined capacity of over 2 MW.
Delivery of the first modules starts
in August, with delivery of the entire
order to be completed by the end
of the first quarter of 2007.
This order is a signal, said
Christopher Dunne,Aleos new head
of international sales.The volume of
orders is increasing. Since the
passing of the royal decree in 2004,
the Spanish government has been
supporting renewables.By co-
operating with established market
players we shall quickly get the
brand known in Spain, said Jakobus
Smit of the Aleo board of directors,
who added that the company soon
plans to penetrate other southern
European markets.
At the end of 2006/start of 2007
Aleo will commence manufacture of
made in Spain modules at its own
plant in Barcelona.With an annual
capacity of 10 MW/year this will be
one of Spains largest solar module
manufacturing facilities.Customers
will be able to see the production of
high-quality modules here, and we
shall also be able to offer speedy
service.We plan to significantly
increase our sales in Spain in the
coming years, said board member
Heiner Willers.
HYDROPOWER LEADERS SEE
INDUSTRY EMERGING FROM
DECADE-LONG HOLDING
PATTERN
The hydropower industry is
emerging from a decade-long
holding pattern, evidenced by
US$10 billion in development
contracts to build hydroelectric
projects around the world,
according to Leslie Eden, chair of
the HydroVision 2006 conference in
Portland, Oregon, USA.
More than 2000 hydropower
experts and interest groups from 47
nations in Portland to discuss new
technologies, evolving energy
policy, as well as the economic,
nvironmental and cultural impacts
of the industry.
Eden said the holding pattern
was caused in large part by political
actions that took our industry by
surprise This led to a long period
of reflection and debate among
hydro practitioners, and a careful
examination of industry practices.
As a result, we have made enormous
strides to better address social,
environmental, economic and policy
challenges.This conference seeks to
address a variety of issues to
improve hydropowers standing in
discussions about our nations
energy future.
FIRST WIND TURBINE FOR
LONDON FIRE STATION
The first ever urban wind turbine
of its type has been installed on a
UK fire station, near London (see
photograph).The initiative at Hayes
Fire Station is part of the Brigades
ongoing commitment to help
combat climate change, cut carbon
emissions and produce sustainable,
in brief
Stags Holt wind farm
German utility E.ON has
announced that is has signed an
agreement with Vestas for the
supply of nine Vestas V90 2 MW
turbines for use in the Stags Holt
wind farm in Cambridgeshire.
Firefighters from Hayes fire station
(Middlesex, UK) with Energy Minister
Malcolm Wicks, Val Shawcross of the
London Fire and Emergency Planning
Authority and Station Manager Alan
Cooper
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all do our bit to help in the fight
against climate change. Rather than
just expecting big institutions like
the G8 or the UN to solve the
problem, it is down to us as
individuals and organizations to
also be part of the solution. So
called microgeneration can make a
real contribution to reducing
carbon emissions across the UK
and it is pleasing to see the fire
service installing their first ever
micro wind turbine. I hope to see
more on other fire stations, as well
as on our schools and on our
homes.
COMPOSITE TECHNOLOGY
AGREES TO STRATEGIC
RELATIONSHIP TO EXPAND
ITS WIND TURBINE SERVICE
BUSINESS
Composite Technology Corporation
has agreed to increase the share
capital of its German-based wind
turbine service subsidiary, EU
Energy Service and Maintenance
GmbH by bringing ENERTRAG AG,
an independent German alternative
energy company, into EU Energy
Service as a new shareholder and
partner in the service operations.
This would mean that EU Energy
Service would include the existing
service business of ENERTRAG
Energiedienst GmbH, and the name
of EU Energy Service will be
changed to E Energy Service GmbH
or E Energy.
Assuming a final agreement is
completed, joint operations may
begin by 1 October 2006. E Energy
will have approximately 850 wind
turbines under service contracts
and about 126 employees.This will
make E Energy one of the largest
independent wind turbine service
companies in the world, with
experienced teams for new
installations, service and
maintenance of several well known
models of multi-megawatt class
turbines such as GE,Vestas, Nordex,
REpower, including EU Energys
DeWind D6 and D8 models.
ENERTRAG also brings experienced
operating teams that have operated
some of the most successful wind
farms in Germany and France.
ENERTRAG AG, an independent
energy company from Dauerthal,
Germany, is one of the worlds
largest wind power producers
operating over 300 wind turbines
with a nominal load of 550 MW and
an annual yield of more than
1 billion kWh of electricity.
ENERTRAG has operations in
Germany, France and the United
Kingdom and has an annual growth
of approximately 25%.
CLIPPER WINDPOWER IN
LAKE ERIE WIND FARM DEAL
California-based Clipper Windpower
has recently struck an agreement to
supply 8 of its new 2.5 MW Liberty
turbines for a 20 MW wind farm on
the shores of Lake Erie.
The Steel Winds Wind Farm,
which is being developed by UPC
Wind and BQ Energy, will be located
on the site of an abandoned steel
factory in Buffalo, New York.
In addition to supplying the
turbines, Clipper will conduct the
installation, andwill carry out
operation and maintenance for the
next five years.
Speaking about the development,
Paul Gaynor, President and CEO of
UPC wind said:We believe the
industry is moving towards a larger,
more efficient machine; the Clipper
team is ahead of the curve in this
regard.We are pleased to be
investing in some of the industrys
latest and most promising
technology advancements.
M+W ZANDER TO BUILD NEW
ERSOL SOLAR MODULE
FACILITY IN ONLY 7 MONTHS
The ErSol Group is planning
gradually to increase its
manufacturing capacity for thin-film
modules to 40 MWp yearly output
by 2008. Now M+W Zander of
Stuttgart has been awarded
(18 August) the contract to design
and construct ErSols thin-film solar
module facility in Erfurt in Germany,
and is due to hand over the new
plant ready for equipment by the
end of January 2007. By summer,
ErSol is due to have a 6000 m
2
production for thin-film silicon
modules up and running. M+W
Zander says the contract is worth a
low double-digit million Euro
figure.
Ersol Groups entry into the thin-
film technology opens up an option
for growth that is virtually
independent of the availability of
silicon and unleashes significant cost-
cutting potential. If the market grows
as expected, further expansion at the
35,000 m
2
ErSol site in Erfurt remains
an option, says ErSol.
M+W Zander specializes in the
planning and construction of turn-
key photovoltaic module plants.
NORDEX AWARDED
14 MILLION CONTRACT
FROM EAST ASIA
Nordex AG has been awarded a
contract for the construction of a
21 MW wind farm in East Asia
believed to be in Japan although the
company is unable confirm the
location. Nordex will be installing
nine of its N90 2.5 MW turbines
during 2007 in conjunction with a
local business partner.The contract
for the delivery of turbines and
rotor blades has a value of around
14 million. Nordexs business
partner of will be supplying the
towers and foundations, and also
servicing the wind farm.
On account of the rough weather
conditions at the site, Nordex will
be fitting the turbines with special
lightning conductors: each rotor
blade will have an aluminium tip, as
well as other receptors spread over
the blade.As a further technical
feature, Nordex will be producing a
60 Hz version of the N90 turbines
for the first time in view of the grid
frequency required in this region
this frequency is used only in parts
of Japan,Taiwan, Korea and the
United States.
FIRST HALF OF 2006 WAS WARMEST ON
RECORD FOR THE US
According to preliminary data for the first half of the year, 2006 is
shaping up to be the warmest on record for the US, according to
the National Oceanic and Atmospheric Administration (NOAA). The
average January to June temperature for the continental US was
11C, or 1.8C above the 20th century (19012000) average. Five
states (Texas, Oklahoma, Kansas, Nebraska and Missouri)
experienced record warmth for the period and no state was near,
or cooler than, average.
Globally, the year is shaping up to be the sixth warmest year to
date (JanuaryJune) at 0.5C above the 20th century mean.
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This project is an important
reference for markets in East Asia,
where we have so far primarily
been building smaller turbines.At
the same time, it marks a return to
closer collaboration with our
partner, with whom we have been
working since 1994, explained
Carsten Pederson, COO of Sales and
Marketing at Nordex AG.To date,
around 270 Nordex turbines are in
operation in that region.
REC SILICON BREAKS
GROUND ON A US$600
MILLION EXPANSION
Its going to take us a couple years
of construction, but by the time
were done, we will have a facility
that has no equal in the world,Tor
Hartmann, REC Silicon senior vice
president and project manager told
the crowd of community members
and visitors gathered for the ground-
breaking of RECs new production
facility for granular polysilicon in
Moses Lake,Washington, USA on 15
August.
The new plant is based on the
proprietary technology that REC has
developed for production of
granular solar grade polysilicon
(SOG). It is being built adjacent to
RECs existing plant where the
production is already focused on
manufacture of solar grade silicon
The new plant will add
approximately 6500 MT to RECs
polysilicon production capacity,
totalling close to 13,000 Mt.
Currently, says REC, 20%25% of all
solar cells in the world are primarily
made from the companys
polysilicon.
The new plant will be extremely
energy conservative, says REC: the
solar cells made from the
polysilicon coming out of the new
plant will each year the cells are
in operation (at least 2025 years)
generate eight times more
electricity than REC Silicon
consumed in producing the raw
material.
Q- CELLS HALF-YEAR
REPORT: SALES UP 108%
AND NET INCOME FOR THE
PERIOD UP 153%
Q-Cells AG of Germany, the worlds
second largest solar cell producer,
revealed in its half-year report
(14 August) that it had increased
production for the first six months
of 2006 to 112.6 MWp from
66.6 MWp a year earlier.This reflects
growth of approximately 69%.
Sales, earnings before interest and
tax (EBIT) and net income for the
period rose all significantly in the
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in brief
Suntech Power acquires MSK
Suntech Power Holdings Co., Ltd
of Wuxi, China, is to acquire MSK
Corporation of Japan in a two-
step transaction. The acquisition
will give Suntech extensive PV
module sales and distribution
network in the key Japanese
market. While Japan is the
worlds largest single market for
PV modules, it is also one of the
most difficult markets for
foreign players to enter, said Dr.
Zhengrong Shi, Suntechs
Chairman and CEO. We
anticipate that this acquisition
will give Suntech the advantage
of MSKs nationwide sales and
marketing platform in Japan,
which we expect to leverage to
grow our market share in this
important market.
PHOTO: COLUMBIA BASIN HERALD
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first half. Sales increased 108% to
243.1 million from 116.7 million
in the prior-year period. EBIT and
net income grew at rates of 138%
and 153%, respectively, to 55.9
million (previously 23.5 million)
and 37.4 million (14.8 million).
Q-Cells AG has raised its forecast
for fiscal year 2006.The company
continues to expect production to
increase to approximately 255 MWp
(compared with 165.7 MWp in
2005). Q-Cells now anticipates sales
of approximately 525 million for
fiscal 2006 (compared with 299.4
million in 2005), EBIT of
approximately 115 million (63.2
million in 2005) and net income of
approximately 75 million (39.9
million in 2005).
In the first half, Q-Cells AG
generated 49.1% of its sales outside
of Germany.This ratio was only
35.4% in the same period of 2005.
In view of the continued growth in
export demand, the company
expects to increase this share to
60% by the end of 2007.
As of the end of the first half of
2006, the company had an annual
production capacity of 280 MWp at
its Thalheim location (equal to a
nominal capacity of 350 MWp). By
the end of 2006, production
capacity is to increase by 56 MWp
to 336 MWp (corresponding to a
nominal capacity of 420 MWp)
based on conversion, expansion and
optimization of the existing lines
I-IV. By the end of 2007, production
capacity will be increased to 432
MWp (corresponding to a nominal
capacity of 540 MWp) based on the
completion of the first two
expansion stages of production line V.
Q-Cells AG now anticipates
production in its core business will
reach 330 MWp for 2007
(previously 316 MWp).To ensure
further growth in the core business
beyond 2007, the company has
finalized additional supply contracts
for silicon and silicon wafers with a
total capacity of 430 MWp, with
priority for the period 20092018.
STEORN SEEKS CYNICAL
SCIENTISTS TO TEST FREE
ENERGY TECHNOLOGY
In an advertisement placed in The
Economist of 18 August, Steorn, an
Irish technology development
company, has challenged the global
scientific community to test what it
calls its free energy technology and
to publish the findings. Steorns
technology is based on the
interaction of magnetic fields and
allows the production of clean, free
and constant energy.The technology
can, claims the company, be applied
to virtually all devices requiring
energy, from cellphones to cars.
Steorn wants its advertisement to
attract the attention of the worlds
leading scientists working in the
field of experimental physics. From
all the scientists who accept
Steorns challenge, 12 will be invited
to take part in a rigorous testing
exercise to prove that Steorns
technology creates free energy.The
results will be published worldwide.
Sean McCarthy, CEO of Steorn,
commented:During the years of its
development, our technology has
been validated by various
independent scientists and
engineers.We are now seeking 12 of
the most qualified and most cynical
from the worlds scientific
community to form an independent
jury, test the technology in
independent laboratories and
publish their findings.
NEWS A round-up of news from around the world
He added:We are under no
illusions that there will be a lot of
cynicism out there about our
proposition, as it challenges one of
the basic principles of physics.
However, the implications of our
technology go far beyond scientific
curiosity: it addresses many urgent
global needs including security of
energy supply and zero emission
energy production. In order for
these benefits to be achieved, we
in brief
European Technology Platform
for Wind Energy
The Advisory Council of the
European Technology Platform
for Wind Energy TPWind has
opened its call for applications
for membership of the Steering
Committee, which will lead
sector technology and policy
R&D strategy into the future.
Applicants should visit
www.windplatform.eu for full
information and the application
form. The deadline for
submissions is midnight,
15 September 2006.
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need the public validation and
endorsement of the scientific
community.Were playing our part
in making that happen by throwing
down the gauntlet with todays
announcement now its over to
the scientists to ensure that the real
potential and benefits of our
technology can be realized.
Following the validation process,
Steorn intends to license its
technology to organizations within
the energy sector. It will allow use of
its technology royalty-free for certain
purposes including water and rural
electrification projects in developing
countries, details to be announced
later.
Steorn was founded in 2000 and
has developed cutting edge
technologies for third parties,
including optical disc forensic
analysis and plastic card fraud
prevention technologies. It is now
focused on the commercialization of
its energy technology. Further
information at www.steorn.com
SHARP AND CURRYS TO
BRING SOLAR TECHNOLOGY
TO UK HIGH STREET STORES
Sharp Electronics, the world's
leading manufacturer of solar
panels, has joined forces with a UK
leading electrical retailer, Currys, to
offer a range of solar energy
solutions for the home. Customers
opting for solar power can expect
to reduce their electricity bill by up
to 50% and could cut down their
home's carbon dioxide emissions by
up to two tonnes per year.
The 1.366 kW systems will
initially be on sale in three Currys
stores in southe-east England, and
information will also be available
online.After a detailed in-store
consultation with a trained adviser,
customers with suitable houses will
be offered a home assessment free
of charge. Purchasers should qualify
for financial support through the
UK Low Carbon Buildings
Programme.
Peter Keenan, managing director
for Currys, comments,Our
customers are becoming more
environmentally aware all the time.
But this is far more than a green
solution for the home. It is also a
perfect way of safeguarding against
the inevitable energy price rises.We
have selected Sharp as our supplier
because, as clear market leaders in
solar panel technology, they can
help us bring the best products and
the best service to our customers.
This is the first time that solar
panels for the home have been
available from a major retailer in the
UK.
UKS FIRST COMBINED PV
AND WIND TURBINE SYSTEM
TO BE INSTALLED IN CENTRAL
LONDON
Londons Climate Change Agency
has been granted planning
permission for the UKs first
combined PV and wind turbine
system.The generators will be on
the roof of the new Palestra
building, designed by architect Will
Alsop on Blackfriars Road.Three
floors of the building will become
the new headquarters of the
London Development Agency and
the London Climate Change Agency
starting in September 2006.The
renewable energy generated by the
system will provide renewable
electricity to these floors.
The 436,000 (640,000) rooftop
project comprises a combination
of 63 kWp of PV modules and
21 kW of 14 building-integrated
wind turbines.The combined
renewable energy system will
generate 3,397,000 kWh of
renewable electricity and reduce
CO
2
emissions by 3300 tonnes
during its lifetime.The project is
being funded and implemented by
the London Climate Change Agency
which was set up by the Mayor of
London last year to tackle climate
change through promoting
renewable and sustainable energy.
Mayor Ken Livingstonnee, said
This innovative renewable energy
scheme will provide clean, green
electricity for the new headquarters
of the London Development Agency
and the London Climate Change
Agency. It demonstrates my
commitment for the Greater London
Authority organizations to lead the
way in taking measures to tackle
climate change through reducing
carbon emissions.
A feasibility study for a fuel cell
trigeneration system is also under
way for the building.This, together
with the renewable energy, would
supply the entire buildings
electricity, heating and cooling
needs.
WIND POWER REACHES NEW
HEIGHTS
In Colorados ski heartland,Vail
Resorts, Inc. has announced that it
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will offset 100% of its energy use by
purchasing nearly 152 million kWh
of wind energy.This is sufficient to
meet the needs of five mountain
resorts,Vails lodging properties
including RockResorts and Grand
Teton Lodge Co., all of its 125 retail
locations (operated through Specialty
Sports Venture), and its new
corporate headquarters in
Broomfield, Colorado. By purchasing
renewable energy credits (RECs)
equal to Vails entire electricity use, it
becomes the second largest purchaser
of wind power of all corporations in
the US, according to the company and
the US Environmental Protection
Agency (EPA).
To purchase the RECs, which are
credits created when producers
generate electricity using wind
turbines,Vail will work with Boulder-
based Renewable Choice Energy as
its wind power provider.Vail
announced the initiative as part of its
ongoing environmental efforts.The
purchase, the company says, is the
equivalent of cutting over 211 million
pounds (96 million kg) of carbon
dioxide emissions every year the
same as taking 18,000 cars off the
road or planting over 27,000 acres of
trees, according to EPA.
By embracing wind power as a
clean and renewable source for 100%
of our company-wide electricity use,
we want to reinforce our
commitment to the natural
environment in which we operate
and be a leader on this critical effort
within the travel industry, said Vail
CEO Rob Katz.
Vail is also asking its employees
and guests to join in its renewable
energy efforts by launching a Ski
with the Wind promotion. Under the
new promotion,Vail Resorts is
offering a free one-day ski lift ticket,
valid at any of its five mountain
resorts, to US residents who purchase
wind power for their home for one
year with Renewable Choice Energy.
The company also announced that
each of its executives has personally
signed up to purchase wind power
for their homes. More details about
the Ski with the Wind promotion,
including applicable restrictions, and
Vail Resorts wind power purchase
program can be found at
http://www.snow.com/.
UK FALLING BEHIND ON
TRANSPORT EMISSIONS
The government of the United
Kingdom has been attacked by MPs
on the Environmental Audit
Committee (EAC) for failing to tackle
the rising greenhouse gas emissions
from the transport sector.
In a recent release, the MPs said
that an element of fatalism has crept
into the Department of Transport, and
that there were sections which felt
that rising emissions were an
indicator of a healthy economy.
Between 1990 and 2004, overall
carbon emissions from the UK fell by
5.6%, but within this, emissions from
transport have risen by 10% and
emissions from air travel by over
111%.
Speaking to on-line environmental
news service Edie,Tim Yeo, chair of
the EAC said he would like to see the
UK government set emissions targets
sector by sector, rather than having a
single target for transport.This would
make it easier to target industries that
were failing to perform.
One of the proposals suggested by
the committee was for flights to be
taxed on the basis of how fuel
efficient the aircraft are, not simply
by how many passengers they can
carry.They also suggested that
measures be introduced to cut the
amount of air freight, and in
particular food miles (the practice of
flying food around the world to
guarantee supplies of out-of-season or
exotic food.
The EAC also had proposals for
land and sea transport.The tax paid
on vehicles should be more closely
tied to their emissions, they said, with
the gap between high-polluting and
low-polluting cars widened to act as a
greater incentive.They also called for
some system of levies to be placed
on ships arriving in UK harbours, as
shipping is not currently covered by
the Kyoto Protocol or other climate
change treaties.
DECENTRALIZED SOLAR THE
ANSWER TO SUMMER LOAD
PEAKS
Decentralized, solar-generated
electricity could be answer to
growth in European electricity
demand in summer, particularly to
deal with consumption peaks caused
by weather conditions, which in turn
cause supply interruptions
according to Dr Winfried Hoffmann,
President of the European
Photovoltaic Industry Association
(EPIA).
Writing in the EPIA monthly
newsletter, Dr Hoffmann says:
Electricity demand in summer is
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constantly increasing years after year.
But the current electricity networks,
highly centralized, are not adapted to
face strong consumption peaks. Solar
electricity can very well be the
answer to this growth in electricity
demand in summer.Actually, the
output from photovoltaic (PV)
systems exactly corresponds to the
time when stronger demand is
observed due to the air conditioning
consumption.
As a decentralized source of
energy, photovoltaic energy is
therefore close to end users needs,
adds Hoffmann.This avoids network
transmission problems, especially
during periods of peak consumption.
In addition, solar generators produce
more electricity as the intensity of
light increases, particularly around
noon.With PV systems designed to
face needs at peak power times, and
good energy planning in urban areas,
solar electricity can very well
support disruptions on electricity
networks, adds Hoffmann.
However, even with peak power
prices, solar electricity may not
become price-competitive until
around 2015, according to EPIA
projections. But solar electricity is an
ideal complementary source of
energy, being both very flexible and
absolutely decentralized, so should
be promoted, adds Hoffmann.
CHINAS POWER SECTOR
REFORMS WHERE TO NEXT?
With its rapid rate of expansion,
Chinas power sector is unique.At the
same time, it shares many challenges
that other countries have long
grappled with: how to reflect the full
costs of generating electricity in
prices to consumers while increasing
access to this essential commodity?
And how to reduce the
environmental burdens of generating
power? So said Claude Mandil,
Executive Director of the
International Energy Agency (IEA) at
the launch of: Chinas Power Sector
Reforms:Where to Next?
This new IEA study is published at
a time when China is deliberating on
a new comprehensive energy law, as
well as revisions to its electricity law.
Since China first embarked on an
effort to gradually liberalize its power
sector, great progress has been made:
separating generation from
transmission and improving
distribution systems, experiments
with wholesale markets are getting
off the ground, and an increasingly
independent regulator has taken its
place in the Chinese administration.
China should be congratulated for
this, Mandil said, stressing, however,
that important challenges remain.Too
much electricity is wasted by
consumers and by networks, so too
many power plants are being built to
meet this demand.Too much fuel is
wasted in generating power, and too
much pollution is released as a result.
The report assesses ways to
mitigate the tensions between rapid
economic expansion and protection
of the environment, and the
promotion of greater equity.While
keeping an eye on the long-term
goals for the power sector, it
contributes mainly to the debate on
actions to take in the next few years.
While no country has yet found a
perfect solution, there is already clear
evidence of the benefits that can be
derived from competitive power
markets, and this should remain the
long-term goal, Mandil said.
Several near-term actions stand
out as priorities. China needs first to
strengthen its institutional and
governance framework. In addition
to clarifying legal structures, it should
further define the roles of
government agencies, for instance,
clearly defining the State Electricity
Regulatory Commissions (SERC)
mandate and enforcement powers
regarding pricing and oversight of
generators, the grid companies, and
system dispatch and security.
These activities should all be
taken with a view to tackling the
environmental consequences of coal,
which fuels 70% of Chinas
electricity. China has the opportunity
to leapfrog reformed systems
elsewhere by integrating energy
efficiency and environmental goals
into its regulatory framework for
competitive power markets.At least
in the near term, direct support for
efficiency is important, including
demand side management
programmes that reduce barriers to
adoption of better technologies, says
the IEA. Steps can also be taken
quickly to make power prices more
reflective of actual costs sending
strong signals to investors to choose
more efficient equipment and fuels,
and to consumers to use electricity
more wisely. Cleaner power plants
also need to be used generation
performance standards and higher
pollution fees would increase the
likelihood of cleaner plants being
built.
NEW BIOENERGY CHP PLANT
FOR GERMANY
Poyry's Energy business group has
been awarded an owner's
engineering contract by Fernwrme
Ulm GmbH of Germany, for the
design and construction support of a
new bioenergy CHP plant.The total
value of the contract is 1.5 million.
The project site is in the city of
Ulm in the state of Baden-
Wurttemberg, about 100 km south-
east of Stuttgart.The construction
phase is estimated to last over two
and a half years.The commissioning
of the bioenergy plant is envisaged
to take place in winter 20082009.
SHENZHEN GOES SOLAR
From 1 November 2006, the Chinese
city of Shenzhen is making it a legal
requirement that all new residential
buildings incorporate solar thermal
heating, in an attempt to cut down on
the citys spiralling energy demand.
The new law (the first of its kind
in China), will apply to all residential
buildings under 12 stories tall. Failure
to comply with the regulations could
lead to developers and builders being
fined up to US$62,500. However,
exemptions will be available if it can
be proved that it is not possible to
implement the technology in a
particular building. In addition,
buildings over 12 stories tall are
exempt, in recognition of the
technical limitations of using solar
thermal in tall, high density buildings.
Shenzhen is situated in Guangdong
Province in southern China, and
enjoys over 2000 hours of sunshine a
year (compared to around 1400 in
the UK). Since 1980 its population
has increased from about 300,000 to
over 10 million, due to massive
migration from the countryside and
other parts of China.This has led to
an explosion in energy demand,
placing great strain on the local
environment and forcing the
municipal government to push for
greater use of renewables and energy
efficiency.With its sunny climate, the
local authorities have ambitious plans
for solar, and are calling for 50% of
the cities buildings to use solar
thermal by 2010, and 20% to use
photovoltaics.
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5th INTERNATIONAL
EXHIBITION
ON EFFICIENT
AND SUSTAINABLE
ENERGY
5th INTERNATIONAL
CONFERENCE ON EFFICIENT
AND SUSTAINABLE ENERGY
20-22 September/2006
ZARAGOZA, SPAIN
FERIA DE ZARAGOZA A-2, Km 311 E-50012 ZARAGOZA www.powerexpo.org
2 0 0 6
5th INTERNATIONAL
EXHIBITION
ON EFFICIENT
AND SUSTAINABLE
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5th INTERNATIONAL
CONFERENCE ON EFFICIENT
AND SUSTAINABLE ENERGY
Organised by Conference Coordinator Main Sponsor Sponsors
GOBIERNO
DE ARAGN
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Heinrich-Hertz-Strae 18
59423 Unna
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Just off the coast of the Netherlands, Europes latest offshore wind farm, is
starting to take shape at Egmond aan Zee. Eize de Vries talked to Shell
WindEnergys NoordzeeWind director Huub den Rooijen about project challenges
and his companys future plans for the fast-growing global wind energy market.
T
hanks to excellent weather, by 28 July 2006, all thirty-six
monopiles of the 108 MW Egmond aan Zee offshore wind
farm had been successfully installed, 1018 km off the Dutch
North Sea coast. Located in 18 metre deep water and made
up of 36 Vestas V90-3 MW turbines, this is the first offshore
wind farm ever to be built in the Netherlands. Due to become
operational by the end of 2006, it has a projected annual energy yield
of at least 330 million kWh, capable of supplying around 100,000
homes per year.
Egmond aan Zee is being developed by NoordzeeWind, a 50:50
joint venture between multinational oil and gas giant Royal Dutch Shell
and leading Dutch energy utility Nuon. Plans for the project, initiated
by the Dutch government and originally known as the 100 MW Near-
Shore Windpark (NSW), date back to the mid-nineties, while a
feasibility study had already been completed by 1997. In October 2001
the government issued a tender that was won by Shell/Nuon early in
2002. In 2005 the financial go-ahead was given for the 200 million
project by the boards of both companies. With a gap of only four years
from start of development to the start of construction, Den Rooijen
speaks of this as a fast-track project from the corporate perspective
of both companies. While happy with current progress he is also of the
opinion that the Dutch government should do more to facilitate private
parties interested in carrying out future offshore projects in the
country. In this respect he believes that there is still ample room for
improvement, and especially feels that improving market confidence in
the private sector is an essential instrument in speeding up offshore
wind developments in the Netherlands.
CONSTRUCTION AND MAINTENANCE
VOF Bouwcombinatie Egmond has been contracted to build the
Egmond aan Zee wind farm. This group comprises Dutch civil
engineering and offshore contractor Ballast Nedam and wind turbine
supplier Vestas of Denmark. The same combination is also
responsible for wind farm operation and maintenance (O&M). For
wind farm maintenance the partners chose to go for boat landings
and wind turbine access by ladder. Den Rooijen: During the period
19981999 Shell put a number of small unmanned North sea gas
platforms in service. We evaluated several O&M installation access
methods, but straightforward boat access proved at the end the
simplest and safest solution. A similar method is adopted for the
current project, where a dedicated offshore turbine service vessel is
currently being built. It features the well known soft bow structure.
When accessing a turbine the vessel moves with the soft bow
against two additional purpose-designed pillars attached to the
monopile. The vessel is firmly held to the pillars by giving full engine
throttle, a stable passage condition that permits service personnel
to step onto a ladder fitted to the support structure and from there
they climb to safety inside the turbine.
In the middle of April 2006, Ballast Nedams giant floating
installation barge Svanen rammed the first monopile in the seabed.
This 103 metre long and 90 metres wide self-propelled heavy lift
barge installs piles and the so-called transition pieces on top of each
Update on the Netherlands first offshore wind farm
Offshore progress
RENEWABLE ENERGY WORLD SeptemberOctober 2006 27
Offshore progress NEWS FEATURE
100 million is a large strategic investment
for Shell Renewables
View from a Vestas V90 3 MW turbine installed at Kentish Flats in the UK; the same
turbines are being used in Egmond aan Zee ELSAM
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pile. These jacket type tubular steel pieces are meant to alleviate
slight pile misalignments (< 0.5 degrees) and feature a top flange for
level tower mounting. The Svanen is composed of two
interconnected catamaran type hulls with a fixed-position 80-metre
high superstructure capable to hoist loads up to 8100 tonnes. This
huge lift capacity will be more than sufficient to install proposed 510
MW offshore wind turbines (even completed ones including nacelle
and tower) or heavy large-diameter gravity-based concrete
foundations each weighing thousands of tonnes. Prior to picking up
and ramming in a new monopile, the Svanen is manoeuvred into the
correct position by means of cables attached to multiple heavy-duty
sea anchors. A jack-up type vessel, by contrast, is temporarily fixed
to the seabed by means of expandable legs during monopile
ramming and/or wind turbine. Den Rooijen: Thanks to the
professionalism of the Ballast Nedam crew, the innovative monopile
installation method especially developed for the Svanen experienced
a steep learning curve and became faster with each new pile.
Ballast Nedam and Vestas did not choose the Svanen for the
actual wind turbine installation (nacelle + tower), A2SEA instead has
become subcontractor for this specialist job for which it employs the
Sea Energy vessel. Other subcontractors include IHC (hammer),
Ocean Team PU (sea cable laying), Royal Boskalis (foundation rock
protection works), Fugro (foundation positioning), and GB Diving
(diving jobs).
The V90-3 MW wind turbines employed at Egmond are largely
similar to the units operating at Kentish Flats (a 90 MW UK offshore
wind farm constructed in 2005), says Den Rooijen: From a power-
engineering point of view the wind farm layout comprises three
separate and electrically independent groups (strings) of twelve
turbines. Electric power from each individual string is fed to a land-
based transformer station build onshore at Velsen-Noord near the
Corus steel mills by a separate 34 kV sea cable. This wind farm
layout is the outcome of an economic optimization. An alternative
solution comprising an offshore transformer station and a 150 kV sea
cable feeding the power to shore would have had a slightly higher
electrical efficiency (cable losses), but is also more costly.
According to the plans, the first string of twelve turbines will be
tested and feed power into the grid by the end of summer.
Den Rooijen: With the development of the Egmond aan Zee
offshore wind farm, Shell and Nuon take on the challenge to prove
that offshore wind energy works. Also that it is a worthwhile
investment and a valuable contribution to a more sustainable Dutch
NEWS FEATURE Offshore progress
ABOVE With its maximum load of 8000 tonnes the Svanen can easily handle even the largest monopile foundations SHELL / NUON CENTRE Turbine blades lined up, ready for installation
SHELL / NUON RIGHT The Svanen in dock in the Netherlands SHELL / NUON
The strategy of purchasing existing wind
farms from third parties is becoming
increasingly less significant
TABLE 1. Egmond aan Zee monopile foundation specifications
Source: Ballast Nedam, 2006
Pile
Diameter 4600 mm
Length 42.5 metres
Average mass 230 tonnes
Average soil penetration depth 26 metres
Transition piece
Diameter 4200 mm (internal fitting)
Length 27 metres
Mass 150 tonnes
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energy supply mix in future. For Shell the success of this first Dutch
project is of key importance for more than one reason. It represents
a yardstick for our company to show how we deal with safe and
effective working procedures during offshore installation activities as
well as O&M visits. And the fast-track learning experience will
prepare Shell WindEnergy for undertaking even larger offshore wind
projects in future. An example is the 1000 MW London Array project
in the outer Thames Estuary that we plan to build in the next years
together with two international partners.
SHELL CUTTING EMISSIONS?
With regard to the 100 million investment from Shell in the Egmond
aan Zee project, Den Rooijen says that the amount is small
compared with the total Shell Groups 2006 investment of US$19
billion (and a proposed $20 billion sum for next year). At the same
time the 100 million is a large strategic investment for Shell
Renewables, Hydrogen and CO
2
, a new Shell business group that
comprises Renewables (Shell Solar and Shell WindEnergy), CO
2
, and
Shell Hydrogen. Den Rooijen explains that curbing growing CO
2
emissions has been given a key priority in Shells long-term business
strategy. He also views it as a major problem for the entire world,
requiring urgent attention and maximum effort to find appropriate
solutions: Shell like all other competing oil and gas companies is
faced with the fact that exploration of crude oil and gas becomes
increasingly difficult. In addition, the emission of CO
2
during
extraction and refining per unit ready oil product continues to go up.
Shell, as a huge company with worldwide presence, is also a large
energy consumer. To meet part of our global electricity demand we
operate conventional power generation with a total installed capacity
of close to 10,000 MW, which will grow further over the next couple
of years, (by comparison the Netherlands, with a population of more
than 16 million, has 20,000 MW of installed capacity). In general
Shell management sees it as a key obligation to help our customers
to bring down their CO
2
emissions, and simultaneously substantially
reduce Shells own internal CO
2
emission. We are on track to reduce
our own greenhouse gas emissions in 2010 by 5% compared to
1990 levels.
With regard to wind power, Den Rooijen says that Shell
WindEnergy focuses on value creation through developing and
operating wind farms worldwide. China is one of the upcoming wind
countries where Shell is active as a project developer. The initial
strategy of purchasing existing wind farms in the US from third
parties is becoming increasingly less significant as our development
portfolio grows. Den Rooijen: It is also not our intention to purchase
an existing wind turbine manufacturer. However, we still keep a keen
eye on wind technology development as we look for opportunities to
accelerate the introduction of technologies which will drive down the
cost price per kWh electricity. Innovation is essential to achieve this
goal but this is not simply a matter of making bigger turbines, but
also to increase product reliability and reduce the need for
maintenance. With our experience in operating all kinds of rotating
equipment under all sorts of difficult climatic conditions, Shell is
certainly in a position to assist wind manufacturers by increasing the
reliability of their wind turbine equipment.
Eize de Vries is wind technology correspondent for Renewable Energy
World
rew@jxj.com
To comment on this article or to see related features from our archive,
go to www.renewable-energy-world.com.
NEWS FEATURE Offshore progress
Somerset County Council Somerset
Wind Energy Initiative
The Contracting Authority is giving interested parties the opportunity to lease
Council owned land for the commercial development of wind turbines to
generate renewable electricity as part of its initiative to promote the development
of renewable energy resources in the County and to meet regional targets for
implementation of renewable electricity generating capacity. The term of the
leases will be 26 years.
The concessionaire will be responsible, at its own cost, for carrying out
feasibility studies into suitable sites for the location of wind turbines, obtaining
all relevant consents, installing, operating and maintaining the wind turbines, and
at the end of the lease, decommissioning the sites. The Contracting Authority will
negotiate an annual income from the concessionaire based on a percentage of the
gross of the electricity sales, inclusive of income generated from the sale of
Renewables Obligation Certificates.
It is anticipated that the maximum capacity of the wind turbines for the whole
project will be 12 MW across a number of sites.
Enterprises selected to submit a bid should not assume that their selection
implies any recognition or acceptance of their suitability to undertake the
contract.
The Council may wish to take into account social and environmental
considerations in the contract.
The Council reserves the right not to proceed with the process of selecting a
contractor at any time during the process, which shall include the right not to
award the contract.
The Council is a Public Authority under the Freedom of Information Act 2000
and all information received will be dealt with in accordance with the Act.
Expressions of Interest:
To express an interest in providing these services, a Pre-Qualification
Questionnaire must be completed and returned to the address
below by 12.00 noon UK time on Friday 29th September
2006. Copies of the Pre-Qualification Questionnaire can be
obtained by contacting Alan Palmer at the address below.
Alan Palmer, Senior Procurement Officer
Corporate Procurement Unit,
Somerset County Council, County Hall, Somerset TA1 4DY UK
Telephone: 01823 358186
E-mail: Apalmer@somerset.gov.uk
ABOVE The twin hulled Svanen floating barge SHELL / NUON CENTRE By July 2006 all 36 monopiles had been successfully installed SHELL / NUON RIGHT Installing the nacelles from
A2SEAs specialized Sea Energy vessel SHELL / NUON
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PV in the US PHOTOVOLTAI CS
As the global PV industry continues its impressive growth,
manufacturing is still dominated by Japanese and European companies.
How did the US lose its once leading position in PV manufacturing, and
what can be done bring it back to the top. Paula Mints writes this report.
T
hese are exuberant times for the PV industry, with
worldwide demand exploding and investment
pouring into companies in a fashion slightly
reminiscent of the dot com era. Its taken the PV
industry over twenty years to experience profitability,
and the prospect of speedy returns is attractive to start-up
talent coming in from other industries
The comparative ease with which one can gain
investment these days is good news for an industry which
requires millions of dollars to get from the research and
development stage to pilot production to commercialization,
not to mention the investment in time and effort required for
success. In the US, several thin film technology start-ups are
concentrating their efforts in the Bay Area. But some of this
exuberance should be approached cautiously. In this regard,
some famous words of caution posed by former Federal
Reserve Chairman Alan Greenspan come to mind: But how
do we know when irrational exuberance has unduly
escalated asset values which then become subject to
unexpected and prolonged contractions.
From 20002005 the five year compound annual growth
rate for global PV was 41%, a significant achievement for any
industry. Strong industry growth is leading to some highly
optimistic estimates of the future, and it may well be that
industry growth is on an upward trajectory that will not slow,
even in the face of supply constraints and rising system prices.
It is good to remember that demand for
photovoltaic products exists because of
subsidies, and would not exist without them
PV in the US
Where is the market going and how
will it get there?
While it lags somewhat in crystalline PV manufacture, the US, and California in
particular, has the potential to become a world leader in thin-film technology
SOLAR INTEGRATED TECHNOLOGIES
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However, during these heady times it is good to remember
that demand for photovoltaic products exists because of
subsidies, and would not exist without them.
Germanys highly successful feed-in tariff law is the
current driver for PV industry growth, creating the largest
market in the world for PV products. A host of similar
programmes in Europe are expected to stimulate demand in
the near term, among them programmes in Spain, Portugal,
France and Italy. In 2005, 47% of all PV modules sold went to
Germany.
Once upon a time, the US was the shipment leader for
the photovoltaic industry, but not anymore. Its position has
changed for several reasons, the most important of which is
government support for both its manufacturing and its
market. Whereas other regions (most notably Japan) have
provided support for their manufacturing sectors, the US has
not. And while countries in Europe have learned from and
emulated Germany, the US remains confused about what sort
of programme will stimulate demand across 50 disparate
states.
US MANUFACTURING WEAKENS
The US, once the shipment leader, has experienced a slowing
of its manufacturing strength. Though, in economic terms
there is balance the US has about a 10% demand share for
PV products, and a 9% share of global shipments, demand for
PV products has yet to meet the potential of a vast country
with huge energy use. In 2005, US demand in megawatts was
almost precisely equal to its shipments in megawatts
(shipments 133.6 MWp, demand 137.2 MWp)
Figure 1 provides an overview of regional shipment
growth for four global regions, the US, Europe, Japan and the
ROW (rest of the world). The US was the global shipment
leader until 1995, when it lost that position to Japan. In 2002,
the US slipped from second place to third, in terms of
shipments, behind Europe, and in 2005, growing
manufacturing strength in the ROW region pushed the US
into fourth place. From 20002005 the US had a compound
annual growth rate of 12%, far behind growth rates for the
other three regions. For the same time period, Europe and
the ROW grew by 47%, while Japan grew by 50%.
WHAT HAPPENED TO US PV MANUFACTURING?
If the US was once the global PV manufacturing leader, what
happened and how did that leadership evaporate? The
explanation is fairly simple, first demand in the US market
has slowed, and manufacturing tends to follow demand.
Second, the US has not invested sufficiently in encouraging
PV manufacturers to locate there.Third, manufacturing costs
are significantly cheaper in Asia, where much of new
manufacturing is currently locating.
In contrast, Japan has invested heavily in its
manufacturing sector to the degree that manufacturing costs
(due to government subsidies) are lower, and system prices
tend to be lower too. Germany is also offering incentives for
technology manufacturers to locate there. China, viewing its
domestic solar industry as a potential revenue source, is
providing incentives to domestic and foreign manufacturers,
which, coupled with the significantly lower cost of labour
and the potential of a vast market, provides a strong incentive
to locate manufacturing facilities in that country. The US
PHOTOVOLTAI CS PV in the US
If the US was once the global PV
manufacturing leader, how did that leadership
evaporate?
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FIGURE 1. Shipment growth by region 19952005
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simply has not competed with other regions of the world on
these terms. Moreover, its solar research and development
budget has gone through years of semi-feast and almost-
famine based on the political agenda of the times.
The US controlled over 40% of worldwide sales until
1998, when strong government support in Japan allowed
that country to gain share. By 1999, the US had settled into
second place. Figure 1 provides an outline of regional
shipments from 1998 through 2005, and clearly shows the
slow erosion of US manufacturing strength.
From 1998 through 2005, US manufacturing grew at a
compound annual rate of 15%, compared with 47% for
Europe, 53% for Japan, and 34% for the rest of the world
(ROW). Led by Suntech in China, Motech in Taiwan and
Sunpower in the Philippines, the ROW region will likely
surpass Europe in manufacturing strength by 2008, and may
eventually threaten Japans number one market share
position. The US, by contrast, will likely continue to lag
because of fewer subsidies on the demand side, fewer
incentives for manufacturers, and higher manufacturing
costs. Though there are currently several thin film
technology start-ups with marketing
and sales divisions located in the US,
these companies are strongly
considering locating manufacturing
elsewhere in the world. And perhaps
the most important factor demand
continues to expand in Europe and
Japan, while markets in the Rest of the
World (ROW) are showing promise.
Meanwhile, the US has not found the
proper formula to stimulate a vibrant
market for solar products in its
domestic market.
US DEMAND UNREALIZED POTENTIAL
So, why hasnt the US realized its potential as a strong market
for PV products? After all, the US has a significantly stronger
sun resource than Germany and Japan. There is a fairly
simple explanation, solar is expensive and the subsidy
programmes necessary to stimulate demand are also
expensive and in some cases, barely adequate. From the
consumer side, given an average residential price of
$9.00/Wp DC, and an average system size of 3.5 kWp, for an
estimated system price of $31,500 many consumers need
to consider this purchase in the context of buying a more
fuel efficient car (in these days of rising oil prices), putting a
child or children through college, among other things. At
Solar Power 2005 in Washington DC one solar expert asked
a room full of other solar experts how many had PV roofs on
Japanese companies continue to dominate PV manufacture, often manufacturing solar
cells in Japan and shipping these to other regions (such as this factory in the UK) for
assembly SHARP SOLAR
1997 global demand = 114 MWp
US
21%
Germany
20%
ROW
24%
Japan
35%
US
12%
Japan
35%
ROW
27%
Germany
26%
US
10%
Japan
28%
ROW
18%
Germany
44%
FIGURE 2. Global share of PV demand 1997, 2002, 2005
The US simply has not competed with other
regions of the world on these terms. By 1999,
the US had settled into second place
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their houses. When relatively few hands went up, the
rhetorical question becomes, if we cannot sell to ourselves,
just how do we sell solar to other customers?
Incentives (tax and rebate programmes), net-metering
programmes, and feed-in tariffs are necessary along with
financing mechanisms (low-interest loans) to stimulate
demand in any market, in any country, and in all regions of
the world. No subsidies, no market, it is as simple as that. In
the United States, lack of co-ordination (among other
problems) in what should be a robust market for PV
threatens to keep PV from recognizing its potential. In
Germany, the EEG (the law that spawned the feed-in tariff)
has created jobs and a strong domestic industry, but it is also
expensive to maintain and has its foes.
In the US, the solar industry struggles with finding the
best way to motivate its state and federal governments to
create programmes that will finally stimulate strong,
sustained demand. This is even given California and New
Jerseys commitment to their solar subsidies. In 2006, only
seven US states have over ten financial incentive
programmes for PV California, Washington, Pennsylvania,
Massachusetts, New York, Oregon and Montana. Hawaii, a
state with high electricity rates and a good sun resource, has
no subsidy at this time. California and New Jersey have the
best subsidies and the strongest markets. Washington state
and Colorado show promise, and hopefully, the strong sun
resources in Nevada and Arizona will be met with strong
subsidy programmes in the near future.
Over time, US demand has weakened, though at 10% of
global demand in 2006, it remains significant. Figure 2 offers
a view of the US demand share in 1997, 2002 and 2005. In
1997, the US had a 21% share, five years later in 2002, it had
a 12% share, and three years later in 2005 the US demand
share had slipped to 10%. Again, referring to manufacturing
strength, is it any wonder that technology manufacturers are
choosing to locate elsewhere?
If the US market had a personality, it would be described
as grumpy, often intractable and seemingly irrational. It is a
difficult market to traverse and members of the PV selling
TABLE 1. Global demand and supply 20002005
Region 2000 2001 2002 2003 2004 2005 CAGR
US Shipments 76.2 96.7 107.8 91.5 140.6 133.6 12%
US Demand 34.7 43.8 60.8 76 101.8 137.3 32%
Japan Shipments 95.3 145 233.8 350.6 547 714 50%
Japan Demand 77.9 109.8 176.2 243.8 295.9 392.4 38%
Europe Shipments 58.5 85.4 123.4 173.1 272.9 406.9 47%
Europe Demand 74.1 120 172.6 232.6 472.4 676.1 56%
ROW Shipments 22 25.8 39.9 60 89.2 153.2 47%
ROW Demand 65.3 79.2 95.3 122.9 179.7 202 25%
*Columns and rows may not add due to rounding
In the United States, lack of co-ordination
threatens to keep PV from recognizing its
potential
The German feed-in tariff remains the driving force behind the global PV market, and
similar programmes have been adopted by several other European countries PHOTOWATT
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channel from other regions in the world where incentives
are more robust find it hard going here. (The PV selling
channel consists of distributors, system integrators,
installers, retailers and dealers.) Table 1 shows both
shipments and demand for the US, Europe, Japan and the
ROW from 2000 through 2005. From this table the US
position can only be seen as weakening in terms of both
demand creation, and supply.
The data in Table 1 indicate that demand from all regions
has increased and is strong, including demand in the US.
Demand in Europe, particularly from Germany, has
experienced the strongest compound annual growth, at 56%.
Shipments from Europe have increased by a CAGR of 47% for
the same period. In Japan, shipments have increased by 50%
(again, the government in Japan provides financial incentives
for its manufacturing sector), while demand is slower at 38%.
Focusing on the US, though demand is healthy at a
compound annual growth rate of 32%, the CAGR for
shipments from 2000 through 2005 is 12%. In the US, again,
there are not sufficient incentives for manufacturers to
locate there either in terms of demand (10% of the
worldwide total), or in terms of financial motivation.
WHAT CAN BE DONE?
There is no simple answer to fixing the demand and supply
sides of the US market, there are just too many different
facets to the problem, not to mention suggested approaches.
Some suggestions, however, can be posed.
First, technology manufacturers must be offered good
incentives to locate their facilities in the US. In this regard
the US has the opportunity to become the thin film
technology leader. At this time there are several thin film
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US PV shipments could be boosted by increased domestic demand, particularly in states
such as California where new incentives are being introduced LA DEPARTMENT OF WATER AND
POWER
There is no simple answer to fixing the
demand and supply sides of the US market,
there too many different facets to the problem
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start-ups currently developing CIGS, CIS, a-Si and CdTe
technologies in the US.These companies are at various stages
in the development process, from white board to pilot line.
Before they decide to locate manufacturing elsewhere, why
not offer them a reason to stay? A strong PV manufacturing
sector in the US means jobs, tax revenue, consumer spending
and technological leadership. As a plus, thin film
technologies are making significant inroads.
Second, continue the federal and personal tax credits and
offer subsidies or rebates in more states that provide
incentives to consumers to buy. These programmes are
expensive, but, they are absolutely necessary to stimulate the
market for PV products. These programmes must, however,
be transparent (easy to understand), easy to track, and the
subsidy must slowly decrease over time, so that the market
does not disappear rapidly. California has made a good start
with its ten year commitment to its solar market, but its
programme remains difficult to understand and is not
finalized.
Third, as in Japan, the US state and federal governments
should deliver a consistent message about renewables in
general, and solar, so that energy consumers begin to view
solar as a reasonable, rational and desirable answer to their
energy needs.
The US can recover its manufacturing strength but
manufacturers need a reason to invest, and consumers need
motivation to buy. These are not easy problems to solve, but
as the solar market continues to grow, there is evidence from
other regions and countries that finding an answer to the US
riddle is a worthwhile exercise.
Paula Mints is Associate Director with Navigant Consulting
PMints@NavigantConsulting.com
To comment on this article or to see related features from our
archive, go to www.renewable-energy-world.com.
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To encourage widespread domestic growth, the US needs to deliver a consistent
message in support of solar energy, and renewables in general, at both the state and
federal level OREGON DEPRTMENT OF ENERGY
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Hans-Martin Rter leads one of the worlds most successful renewables
businesses, which he founded in 1998. Conergy is now active in five
continents, has 1200 staff and an expected 2006 turnover of 800
million. He told Jackie Jones about his vision and company strategy.
A
s Germanys largest seaport, the city
of Hamburg has for centuries been a
centre of mercantile entreprise and a
gateway to the wider world. So it
should come as no surprise that
Hamburg is home to one of the most
dynamic businesses in renewables. Started
by Rter as recently as 1998 in my living
room! the business now has a worldwide
presence. Its CEOs own sense of
excitement about the enterprise is obvious
and he says the same is true for members of
staff: The employees are passionate about
the technologies and our brand. That is
where our success is its not the strategy,
its the people
All the same, the strategy is certainly
interesting.
WHERE IS THE RENEWABLES
MARKET GOING?
Rter cites Jeff Immelt of GE, who has
estimated that the renewable energy market
will be worth US $300 billion by 2015, built
on the central technologies of wind power,
biomass, PV, solar thermal and geothermal,
he says.
But the market stands on three different
pillars, too. First there are power-plant scale
installations, ones with an investment volume
of over 20 million their customers are
mostly professional or utility companies. In
10 years, Conergy expects over 40% of total
volume of renewables to be in that sector.
Then there are the individual, or solitaire
installations such as solar installations that
individual homeowners might put on a
rooftop. They expect this sector to account
for 15%25% of the market in 10 years.
Finally, there are networks systems ones
that use a combination of systems such as
PV, heat pumps and pellets heating, or
(offgrid) a combination of PV with small wind,
for instance. This network sector is expected
to make up about 35% of the market.
If you really want to play a role in the
$300 billion market you need to have a
strong balance sheet and to be present in all
three pillars, says Rter. If we are to
compete, then for us it is important now to
be involved in power plants. And Conergy is
well placed to do this many of the large
multinationals that have become involved in
renewables are in the production process
such as GE or Siemens in wind, BP and Shell
in solar. We are their customer explains
Rter But we are the ones who have direct
access to institutional investors. We have
built up packages worth more than 400
million a year with just one institutional
investor. With this we have the financial
power to go into a region and say we can
deliver whatever renewable technology the
customer wants.
INTO NEW MARKETS
The renewables sector is only just emerging
from its infancy it is still dependent on a
43
Blazing a trail I NTERVI EW
handful of key markets with supportive
policy in place. At present, Germany has a
market share of 50%55% of the PV market,
and we are the strongest player on the
system integration side. But I believe that in
5 years Germanys share of that market
might be just 25%.
Expanding into new markets is essential
all round, and Conergy wants to reduce its
dependency on the German market and
move into others ahead of the game. Hans-
Martin Rter mentions several other German
companies who entered the Spanish PV
market last year but they are having huge
problems in meeting large orders at a
reasonable price. We want to be in the new
markets ahead of the wave, so we can grow
with the market.
From a firm foothold in Germany,
Conergy has already set up offices across
Europe, in Australia, Mexico and the US.
Regional heads are now preparing further
expansion in North and South America, the
Mediterranean, Asia and Australia.
Our strategy has two parts. The first
part of the strategy is to go to the customers
in new regions. The second is to give the
customers the best solution for them. The
companys approach is to identify regions
that will have good potential, and spend time
analysing those markets. We analyse the
markets in terms of some very key figures.
An interview with Conergys Hans-Martin Rter
Blazing a trail
If you really want to play a role in the $300 billion
market you need to have a strong balance sheet
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We look at the overall environment, the
growth in energy demand, and the potential
for cross-selling synergies. If we see that it
has the potential to grow, we make a
decision about whether to enter into that
market in system integration, project
development or on the product side we
have the choice.
At that stage Conergy acquires local
knowledge. We hire experienced teams, we
acquire companies in those regions with a
good track record, who understand those
markets and know everything about that
market and the customers in it.
And Conergy is able to go into a new
market with the right economies of scale to
ensure speedy profits. In a market like South
Korea, for instance, he says: If we go into
the market with 1 or 2 MW, we immediately
have the largest market share. We can help
the teams to be the most successful in the
region, and are profitable directly, as we
have low purchasing prices he explains.
This is how we are profitable in each of the
new regions within 12 months. But it still
takes 23 years to become a sustainable
business that is growing month by month.
Its a good strategy for us, not just because
we earn money but because the business
becomes more independent of [the market
conditions in] any one region.
This is how it worked for us in Spain, in
Mexico, and in the US. In the US we now
have more than a 10% share of the PV
market, and in Spain more than 20% of the
PV market. Spains feed-in tariff makes it
very attractive for us to sell there, he adds.
WHAT DO CUSTOMERS WANT?
SELLING THE HOLISTIC SOLUTION
Customer-oriented is a phrase Conergy
uses a lot. Rter says it has been an
essential element of their approach since his
first days in the business. Then he started
leafleting households in the districts of
Hamburg which he thought held most
promise for selling solar roofs and sold the
first systems: I was very proud but it was
an important learning curve. You learn how
sensitive you have to be in listening to
customers requirements. If you put the
is state-driven, technologically speaking.
What does this mean for a company like
Conergy? You need to be a very powerful
partner for utilities and governments and
you need to offer a wide range of
technologies. You cant achieve this with one
technology and one small customer group.
A NEW TIE WITH THE SHIRT, SIR?
Any good business benefits from cross-
selling selling another product to an
existing customer. And customers are
pleased to buy more from a company they
are satisfied with. This is one of the reasons
some of the multinationals are in
renewables. Rter explains that a utility in
Melbourne, Australia, might one day be
looking to invest in a coal plant. And the next
day it might be looking to invest 100 million
in a large PV plant so thats an opportunity
for a company like GE, for instance, which
can offer both. Conergys strategy is having
a whole range of renewables solutions for
customers within specific markets.
We have a checklist for PV, wind power,
bioenergy. Along with that we have the
financial power to go into the regions and
offer wind, solar thermal power or whatever
the customer wants, says Rter.
Cross-selling has worked well in
Germany, where the main customers are
farmers. We sell them solar and bioenergy
the same sales team. And at the moment
SunTechnics (a Conergy business) is being
very successful in selling heat pumps to our
existing customers. This cross-selling effect
helps protect the company from the
seasonal market fluctuations, to do with bad
weather or silicon shortages, or price. If we
dont have success with PV in one quarter,
we sell solar thermal, heat pumps, or
bioenergy systems.
MOVING INTO THE UNITED STATES
Conergy moved into the US in 2005, through
the acquisition of Dankoff Solar, a veteran of
the US renewables market. Was it good
strategically? Absolutely thats a good
team, driven by Paul Benson. Weve doubled
the number of employees. We have a lot of
fun together. They have good experience of
the market, and good strategic knowledge.
We can work with them to analyse which
parts of the US market expect growing
demand for renewables. Well expand the
market step by step, first to become the
strongest player in the US market in PV, then
moving for example into bioenergy, wind
power, solar thermal power.
I NTERVI EW Blazing a trail
wrong sentence, or make things sound too
technical it can put them off. You have to
make high-tech sound very convenient, not
say too much about technology. The
approach needs to be very professional, and
the customer needs to feel part of the
complete movement for using solar
technology. Thats what I learned in those
first years. I no longer see the customers
every day unfortunately but its always in
my mind, and I ask my sales teams what
they are seeing.
In new or existing markets, its important
to start with the customers needs and
provide the right solutions. The technology
is very important, but just looking at how we
improve the efficiency of something it is not
enough.
Being aware of a customers fears and
concerns matters. For instance, we may
need to make bigger efforts in the guarantee,
insurance, maintenance and so on to help
him with the finance - rather than improving
the efficiency of our PV system by another
fraction of a percent. He quickly adds that
Conergys own PV systems perform better
than the prognosis but thats only part of the
process. We have to sell the holistic
solution.
WHY SOLAR PV IS NOT ENOUGH
Rter the scientist believes in PV technology
100%. At university I was doing research
into PV for space systems, for satellites. For
me it became clear that it is so easy to
produce electricity this technology has
the potential to be the most widely installed
technology. There is a resource of 120 W of
solar energy on each square metre of the
earths surface. Its only 2 W/m
2
for wind, 1
W/m
2
for bioenergy, and 0.5 W/m
2
for coal.
You can make solar so, so, so cheap that no
other technology has a chance we just
have to make it more efficient.
Rter the businessman needs a shorter-
term, more pragmatic strategy. After a few
years I learned it will not be a purely solar
market We need to focus on all the
renewables. I came to understand the
mechanisms of the energy market, which is
not really a free market in many countries it
The first part of the strategy is to go to the
customers in new regions. The second is to give
the customers the best solution for them
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Has the California Solar Initiative given
Hans-Martin Rter more confidence in the
US market? Yes from my point of view in
five years the US market will be the
strongest worldwide. Thats why we are
investing a lot, we have a strategic eye on
this market.
He expects to see good growth rates
among the non-wind technologies in the US
in the coming years but not a boom. A
boom needs better supporting structures
than we have today, something more like a
feed-in structure. It is hard to set up a good
financing structure for systems. And you
need the infrastructure companies are not
prepared to double the number of
employees, etc.
He continues: In the US, companies are
in the same position as they were in Spain
maybe two years ago, as German
companies six years ago, and Japanese
companies eight years ago.
What about solar hot water in the US?
The market is too low level though there
are over a million square metres of solar
collector, over 900,000 are swimming pool
collectors, but you cant earn money from
those. A solar company can only earn money
from flat (glazed) collectors. We expect
things to improve as gas prices rise over the
next 23 years, and when it booms we shall
be in place. But we shall wait for that
to happen.
And acceptance of renewables among
US utilities? My feeling is that the American
utility companies are less experienced than
in Germany or in Spain. They see
renewables as more of a pilot function. They
dont see the potential of renewables as
realistic. But in Germany the utilities know
exactly that the potential is there for
renewables to meet 100% of the supply. If I
talk with board members of a large utility
about co-operative strategies of how we can
do more renewables, then we strategize
together. They know that our inverters are
stabilizing their grids. They are used to
working with renewables now.
In the US, I would say the utilities are 4
or 5 years behind because there are not so
many installations. In 2 or 3 years they will
catch up. But they do prefer the quota model
which puts them in the drivers seat, in
control of the complete process.
TECHNOLOGIES TO WATCH?
Concentrating solar thermal power
Hans-Martin Rter agrees that solar thermal
power is very interesting. He wonders why
more systems were not installed in the past,
but quickly provides his own answer:
Parabolic systems need direct solar
radiation, the right solar conditions thats
why you need to look to Mediterranean, US
and so on. But in the past there has been no
feed-in tariff or positive policy in places with
those conditions. The start of the Spanish
feed-in tariff for solar thermal power was the
Renaissance for these technologies. He
explains: You need to have an economic
balance sheet the cost of these projects
requires the investment of several hundred
million euros, so for it to be worth investing
you need the right conditions.
When does he think this technology will
become competitive? If the fossil prices
continue to rise, then in some markets with
high direct solar radiation we will see lower
prices coming from solar thermal power
plants than from fossil. In regions with high
direct radiation we will see an exploding
market in next 1015 years but not in the
next five years! Plants built in the next few
years will be reference systems, he explains.
Conergy itself is working on different
development stages of solar thermal power
projects in Spain, the US, North Africa,
Turkey, Australia. In the next two years we
shall see a lot of projects ... we can say
confidently that we have the right team on
board to engineer a lot of these power plants
they have come from institutes, from
competitors, says Rter.
Solar cooling
Solar cooling fits well into the Conergy
cross-selling strategy. In Spain, explains
Hans-Martin Rter, they dont just want hot
water, but cooling. There is a big problem
with power peaking but using PV to
generate power for air conditioning is too
expensive. However, to create cool water
directly on the rooftop is relatively cheap,
and you can feed this very cold water
directly into air conditioning. That's how our
thinking is explains Rter. To go to a
customer, find out their requirements here
they need hot water, there they need cooling.
Thats why we invest a lot in technologies.
We buy technologies, buy licences and
patents. What do they want? They want
plug-and-play systems in combination with
air conditioning systems. And packages are
needed for the less industrialized countries,
in particular.
Does he have a view on the potential of
cooling for the US market? Definitely, we
are tracking this with former Dankoff team
and if we find the right solution for solar
cooling, could have a huge market. We are
starting with our first installations in Europe
so we can get on with them now, but dont
have a US product yet because of the
certificates. Maybe by summer 2007 could
take a product into the US.
Our teams in the US are trained and are
starting to talk to customers to begin to
understand their requirements. So when we
decide to roll out cooling in the US they will
know everything about the customer need
and will be able to come up with good
holistic systems. We have access to all of
the fitters and the end customers. Well be
ready.
Hans-Martin Rter is CEO and Founder of Conergy.
web: www.conergy.de
Jackie Jones is Editor of Renewable Energy World.
e-mail: rew@jxj.com
To comment on this article or to see related
features from our archive, go to
www.renewable-energy-world.com
Founded in 1998
Expected turnover in 2006: 800
million
Geographical reach: 22 countries in
five continents
Over 1200 employees
Technologies offered: solar PV,
solar heating and cooling, wind
power, bioenergy
Business units: AET (wholesale)
offers support for system
integrators and installers.
SunTechnics offers engineering and
service to private and commercial
roof owners. voltwerk AG serves
private investors in closed funds in
the renewable energies sector. As
an original equipment manufacturer,
Conergy is orientated towards
indirect sales and distribution via
wholesalers.
Included in the 2006
SustainableBusiness.com list of the
worlds 20 most sustainable
companies
Products: Inverters, solar thermal
collectors, mounting systems,
Sunreader and Conergy planner.
Manufacturing: at three plants in
Germany: Hamburg, Rangsdorf
(near Berlin); Bad Vilbel (near
Frankfurt).
CONERGY IN BRIEF
I NTERVI EW Blazing a trail
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WI ND Small wind rising?
As interest in micro-generation continues to increase, Jon Slowe reviews
some of the main players in the rooftop turbine field, and provides some
interesting insights into the future of the building-mounted wind power
market.
M
icro-wind small wind turbines rated at few
kilowatts and below is currently receiving
increasing amounts of attention. In the UK
especially, there is considerable excitement about
the potential to mount such products on buildings,
with the lure of mass markets and sales of tens of thousands of
units a year attracting many developers to the area.
Elsewhere, manufacturers in Japan are bringing out new
products and targeting sales of several thousand units a year,
while in the US, Southwest Windpower has recently raised
US$8 million to support the launch of its new Skystream
product designed for the residential market. However while
there is definitely interest in small wind in the US and Japan,
there is less excitement about mounting micro-wind turbines
on buildings than in other regions, particularly in some
European countries.
Delta Energy & Environment, a research and consulting
company specializing in decentralized energy, has recently
completed a multi-client study entitled Roof Top Wind
Turbines: A Product for Mass Markets?, examining the
potential for building-mounted micro-wind turbines. It
identifies over 20 companies developing or manufacturing
micro-wind products, many of which are targeting building-
mounted applications. Including very small products (less than
0.5 kW) increases this number to over 35. A number of these
companies have been selling products for years (with the
majority of activity to date in the US and Japan), although most
of these products have been designed for battery charging and
very few installations have been on buildings.
Will a large market for building-mounted wind turbines
develop? Opinions on this are polarized, with some believing
that low wind speeds (amongst other issues) will see this
market flop on its face, whilst others predict paybacks as low
as five years and see a huge appetite for homeowners and
other building owners wanting to generate their own
electricity.
Two companies Windsave and Renewable Devices, both
based in the UK are amongst those furthest ahead in
developing products for building-mounted applications. Both
currently say they have in the region of one hundred products
installed on buildings in the UK.
Both companies are relatively young and small. Renewable
Devices, whose product is rated at 1.5 kW was formed in 2001,
and has been working on a wind turbine specifically designed
for building-mounted application. Subsequently Scottish
& Southern, one of the six major UK utilities, has taken a stake
in the company and is distributing its products currently
focusing on selling them to housing developers, the public
sector and commercial building owners rather than targeting
the homeowner market. As of mid-2006, Renewable Devices
said it had installed over 100 units. Its product has a diameter
of 2.1 metres, is rated at 1.5 kW, and has an innovative diffuser
ring which helps to reduce vibrations as well as potentially
helping to concentrate wind flows. Renewable Devices says it
expects to be selling 5000 to 10,000 units a year in the UK
within a few years.
Windsave has developed a slightly smaller model, with a
diameter of 1.75 metres and rated at 1000 W (at 12.5 m/s).The
company says that like Renewable Devices it has installed
over 100 units across the UK. Windsave is looking at multiple
routes to market, including setting up installer networks across
the UK. Centrica, the largest electricity and gas supplier in the
UK, is conducting a trial of a small number of Windsave
While there is interest in small wind in the
US and Japan, there is less excitement about
mounting turbines on buildings
Small wind rising?
Is the market for building-mounted wind power
about to pick-up?
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Small wind turbines on the roof of an office in London RENEWABLE DEVICES
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Setting the standard
More than 2.500 SLIM
transformers installed inside various onshore and

offshore wind turbines feeding national grids all over the world speak for
themselves - the standard has been set.
SLIM
solutions, from 630 kVA to 4.4 MVA up to 33 kV, are the result of
innovative transformer design from Pauwels combined with the thermal
technology of DuPont NOMEX
homogeneous high-temperature insulation

system (according to IEC 60076-14). This smart partnership between two
market leaders has resulted in effective space management, increased
reliability and first-class performance.
Compact, light, vibration-proof, safe and environmentally friendly, SLIM
transformers also have low losses, high efficiency and exceptionally low cost
of ownership.
Thats why the Pauwels SLIM
transformer is the reference for your wind

turbine applications.
SLIM
is a registered trademark of Pauwels International N.V.

DuPont and NOMEX
are registered trademarks of DuPont or its affiliates.

Pauwels International N.V. - Antwerpsesteenweg 167
B-2800 Mechelen - Belgium - Tel. + 32 15 283 486
www.pauwels.com - www.nomex.com - info@pauwels.com
Pauwels SLIM
Transformer
The reference
for your wind turbine
Pauwels is a wholly-owned subsidiary of Crompton Greaves Ltd.
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products. Windsave is planning a product launch in August
2006, and says it will float on the UKs Alternative Investment
Market at a similar time to give it the capital to ramp up sales.
It says it expects to sell around 20,000 units after its product
launch.
In addition to these companies there is a flurry of activity
from others keen to get into the market. They fall into two
categories. One is established wind turbine manufacturers that
have, to date, mostly installed their product on free-standing
poles; the second is new entrants to the wind turbine industry.
Established micro-wind turbine manufacturers operate in a
mature market, with applications including yachts, remote
telecommunication sites, both off-grid and grid-connected
homes, and powering street lights (particularly in Japan).
Some manufacturers have already installed a small number of
their products on buildings, such as two of the market
leaders, Bergey Windpower and Southwest Wind Power.
However a number of these companies are wary of noise
and vibration issues, and of the limited wind resource
available over rooftops. Two of the established
manufacturers which are more bullish about the
opportunity for building-mounted systems are UK-based
Ampair, and Japan-based Zephyr. Both are developing models
and fixings for mounting on buildings. Zephyr has developed
an 1 kW wind turbine branded Air Dolphin, which it says is
suitable for building mounting.
There are a large number of new entrants to the wind
turbine business focusing on building-mounted applications,
attracted by the potential size of the market. Companies are
working on a variety of designs (vertical axis both lift and
drag and horizontal axis machines), with some targeting
households and others targeting larger commercial buildings.
One of these companies is Turby, which has installed a number
of its vertical axis turbines on buildings in the Netherlands.
So how big is the opportunity for building-mounted wind
turbines? Based on the number of buildings and growing
interest in environmental issues from energy users the
potential market is extremely large. But there are several
challenges for product developers and manufacturers to
overcome, and a number of limiting factors that will constrain
market size.
Critical technical issues that must be addressed include
noise and vibration, fixings and the inverter and controller.
Wind turbines will always vibrate, and these vibrations will be
transmitted to the building unless steps are taken to minimize
vibration and transmission of these vibrations to the building.
The fixing of the pole on which the turbine is mounted to the
building must be strong enough to resist both static and
dynamic forces, and the building must be strong enough to
absorb such forces. Most installations of building-mounted
wind turbines in the UK have, to date, been preceded by
structural engineering surveys to examine the impact of the
wind turbine on the building. With the wind turbine possibly
just metres away from bedroom windows, noise from the wind
turbine must also be controlled to acceptable levels. Product
developers have also found an absence of efficient inverters
and controllers suitable for connecting the micro-wind
turbines to the grid, with a number of companies developing
their own solutions.
The major limiting issue that may constrain market size is
the state of the wind resource over roof tops.There appears to
be little understanding of this resource and the mechanics
wind-flows over roof tops. Some commentators believe that
there will be so little wind, and what wind there is will be so
turbulent (affecting horizontal axis but not vertical axis
machines) that micro-wind turbines mounted on buildings will
generate relatively little energy. Others point to the theory that
buildings can actually enhance wind speeds. (For more
information on issues surrounding wind flows in the urban
environment, see article by Eize de Vries, page 56.)
Estimates made by manufacturers, developers and others
Small wind rising? WI ND
ABOVE The1.5 kW SWIFT wind turbine. The company is also developing a smaller
product, rated at 1 kW RENEWABLE DEVICES BELOW A micro turbine installed on a rooftop in
Scotland WINDSAVE
Centrica, the largest electricity and gas
supplier in the UK, is conducting a trial of a
small number of products
Developers have found an absence of efficient
inverters and controllers suitable for
connecting micro-wind turbines to the grid
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for annual energy production from building-mounted wind
turbines range from around 800 kWh to 3000 kWh for 1 kW
rated products, with the majority of estimates lying in the
10001500 kWh range. Little data exists for wind speeds over
buildings, and what data is available suggests figures at the
lower end of the above ranges. In urban areas the roughness
of the landscape, turbulence and wind shadowing may result in
relatively low levels of energy production.
Planning permission is another limiting factor although in
the UK the Government is about to review whether planning
permission should still be required for microgeneration
(including micro-wind turbines).
The economics of micro-wind depend critically on how
much energy is produced, together with a number of other key
factors, with capital costs, installation costs, and maintenance
requirements highly significant. Market research carried out by
Delta suggests that a mass market will only develop if paybacks
fall to five years or below. However further modelling by Delta,
shown in Figure 1, shows that only with very aggressive
assumptions do paybacks fall to five years. Under other
scenarios developed by Delta they are much longer, in some
cases well over ten years. Whilst the critical influencers of
economics have been examined in detail by Delta, it is too early
to say with any certainty what typical paybacks will be,
although we doubt that at least in the next few years they will
be sufficiently low to excite the mass market.
There will be, however, a sizeable market of innovators and
early adopters for building-mounted micro-wind products
willing to tolerate longer paybacks. In the UK, housing
developers are being increasingly pushed into adopting
renewable energy technology, although it is not yet clear how
well micro-wind will compete against other options. Amongst
homeowners, there is a segment of the market with strong
environmental motivations that will tolerate long paybacks and
some forward thinking local authorities and housing
associations are already trialing or about to trial, micro-wind
products on their property. Commercial organizations keen to
demonstrate their environmental credentials will also be early
adopters of these products.
Another area to watch is utility engagement in this sector.
Again, UK utilities are pushing ahead most rapidly with micro-
wind. Scottish & Southern, one of the six major UK utilities,
Clean, free energy
for your home.
www.ampair.com
0845 389 0660
The Ampair 600 is a new micro
wind turbine. With a rotor diameter
of only 1.7 metres, and an output
of 0.6kW, its designed to meet the
growing demand from householders
for a renewable energy source.
Ampair is backed by Boost Energy
Systems, who manufacture a range
of wind turbines, micro hydro
generators, and hybrid wind/water
turbines, and distribute solar panels.
Established in 1957, weve recently
won awards for market-leading
research and development.
0
2
4
6
8
10
12
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800 1200 1600 2000
Annual electricity production (kWh)
P
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(
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Very low case
Low case
Medium case
High case
FIGURE 1. Projected pay-back periods for roof mounted wind turbines
Source: Delta Energy & Environment
Rooftop wind turbines on a new building in Bosnia VENEKO / BERGEY WINDPOWER
Estimates for annual energy production from
building-mounted wind turbines range from
800 kWh to 3000 kWh for 1 kW products
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Count on Mobil Pegasus gas engine oils for performance thats proven to extend drain intervals in applications from gas gathering to
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plans to install a few thousand of Renewable Devices micro-
wind products over the next few years, and three other major
UK utilities (including Centrica) are currently trialing
products. With their marketing power, utilities have the
potential to give this sector a major push. Outside of the UK
there is little engagement of utilities with building-mounted
micro-wind products.
As mentioned, the UK is currently the centre of building-
mounted micro-wind activity. But why is this so, and will other
countries follow? The interest in micro-wind is part of a wider
interest in micro-generation, encompassing residential scale
combined heat and power units (micro-CHP) and other forms of
low carbon heat and electricity generating products. In the last
few years the micro-generation industry particularly those
involved with micro-CHP have successfully pushed for
regulatory changes, for example allowing interconnection with
the grid (for pre-certified units) without prior permission from
the grid operator. Micro-generation has also rapidly risen up the
political agenda in the UK, resulting in the Government
publishing a Micro-Generation Strategy in April 2006. But the
quantity of micro-generation currently installed in the UK
remains negligible at present, particularly in comparison to the
amount of photovoltaic capacity installed in Germany and Japan.
If micro-generation does take off in the UK, we can expect
to see other countries learn lessons from its experience and
work to develop micro-generation markets themselves which
is likely to include building-mounted micro-wind where
suitable wind resources exist. But the necessary changes to the
regulatory framework, and
engagement of utilities, can take
several years to happen. The
Netherlands, with a strong
background in decentralized energy,
may be on of the first markets to
follow the UK. A number of micro-
wind product developers targeting
building-mounted applications are
based in the Netherlands, with most
of these companies are focusing on
mounting their products on
commercial buildings.And Japan and
the US already have established
micro-wind markets, and the
experience of mounting products on
buildings if proved to be successful
in the UK may translate itself to these markets.
In Deltas view, there are a number of key areas of
uncertainty that will affect how micro-wind develops. Markets
for non-building-mounted systems are expected to grow
steadily, with the vast majority of sales in the US and Japan.
Whether or not the UK market for building-mounted systems
takes off depends critically on annual energy production,
installation costs, maintenance requirements, and capital costs.
There appears to be an attractive market of early adopters
of building-mounted micro-wind products in the UK, likely to
be good for possibly as many as several thousand units a year.
Whether or not a larger, mass market will develop is not yet
clear. This will likely require relatively high levels of annual
energy production, manufacturers and developers achieving
aggressive cost targets, simple and straightforward installation,
and the requirement for planning permission being removed.
As more units are deployed, the regulatory framework is
reformed, and more companies bring product to market, the
future for building-mounted micro-wind turbines will become
clearer. We advise utilities and other stakeholders to continue
to watch this emerging area closely.
Jon Slowe is a Director at Delta Energy & Environment, a research and
consulting company focusing on decentralized energy
e-mail: jon.slowe@delta-ee.com
ABOVE LEFT Small turbines and photovoltaics on a building in the US SOUTHWEST WINDPOWER ABOVE RIGHT The Airdolphin is
another of the new turbines bidding to enter the roof top market ZEPHYR
Catch more
with Verteco
power converters
www.verteco.com
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You can contact us directly or through your insurance broker. For further information,
visit our website at www.windpro-insurance.com
Email info@windpro-insurance.com
WindPro is a registered mark of WorldLink Specialty Insurance Services, P.O. Box 2877, Newport Beach, CA 92663. The services and products identified
by the mark include insurance underwritten by certain underwriters at Lloyds and other insurers. All insurance mediation activities in the UK are carried out by
WindPro as a trading name of Lloyd's broker JLT Risk Solutions Limited, 6 Crutched Friars, London EC3N 2PH who are authorised and regulated by the Financial
Services Authority. Photograph: courtesy of enXco
Delivering insurance solutions
to the wind industry
We arrange insurance
for over 9,000 megawatts
of wind energy worldwide
What can we do for you?
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European Contacts
Richard Carroll
Tel +44 (0)207 528 4715
Spanish Contacts
Diego Pagadigorria
Tel +34 944 315161
US Contacts
Curt Maloy
Tel +1 760 836 0417
Visit us at the following events:
Stand 23 at GWEC
18-21 September 2006
in Adelaide, Australia.
Stand 506D at BWEA
10-12 October 2006 in Glasgow.
Stand 309 at CANWEA
22-25 October 2006 in Winnipeg,
Manitoba, Canada.
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WI ND Urban challenges
I
n some recent research, Sander Mertens of the Dutch
consultancy DHV investigated urban wind energy, with a
special emphasis on the concentrator effects of wind
around buildings.The research begins with the assumption
that decentralized energy production will continue to gain
importance, increasing its contribution to worldwide energy
demand, and as an alternative to todays dominant and largely
centralized power production systems. With the urgent need
for environmentally friendly energy sources, and concerns of
security and supply, in the future various renewable energy
sources will gradually substitute fossil fuel sources as part of a
smart energy mix. According to Mertens, wind energy in the
built environment has considerable commercial and economic
potential: With wind power generation in the built
environment, the clean energy can be directly utilized in the
building or in its vicinity. It can therefore be regarded as a
saving on external energy demand, meaning that from a
financial point of view each kWh generated by the wind plant
can be valued at a much higher customer price than otherwise
has to be paid to the power utility.And as the energy becomes
available close to where it is needed, power transport losses
can be greatly reduced.
In the study, Mertens identifies three distinct types of
building integrated wind power:
installations on the roof or at the side of existing buildings
installations between two airfoil-shaped buildings
installations in a duct through a building.
ROOF TOP MOUNTING
The first stage in the urban development of wind power
and the one which is currently starting to be realized is to
put small wind turbines (~0.110 kW) on top of existing
buildings.The Netherlands is one of the pioneer countries in
this type of development, and over the last few years several
small companies have developed and installed a limited
number of turbines on buildings such as schools, offices, and
apartment blocks. These turbines comprise a variety of
models, such as H-Darrieus type rotors in vertical-axis (i.e.
2.5 kW Turby) as well as in lying horizontal-axis position (i.e.
modular designed WindWall). In addition some
conventional horizontal-axis wind turbines, featuring a
yawing mechanism to redirect the rotor continuously to the
wind (i.e. Fortis, Provane, and WES Tulipo) have been
installed.
Optimized urban wind turbine placement on a building
roof is not as simple as it sounds, says Mertens, explaining one
of the complex issues he tackled in his PhD. Average wind
speeds in the built environment are relatively low due to a
much larger surface roughness compared to wind conditions is
open rural areas. In cities, buildings and other obstacles slow
down the wind speed and increase overall turbulence, while
on building roofs, obstacles like chimneys and technical
installations affect local wind conditions. In other words, roofs
are structures with their own individual micro-wind climate
that determines the actual wind speed and overall wind flow
pattern.Acceleration of air flow around sharp building corners
is a well known phenomenon. At the leading roof edge facing
Small, building-integrated wind turbines are attracting an increasing
amount of attention as a possible source of decentralized renewable
power. Here, Eize de Vries presents some recent research into the
performance and potentials of building-integrated wind, and explains
some new systems which have been designed to model air flows in the
urban environment.
Urban challenges
New research on integrating wind energy in
buildings
Optimized urban wind turbine placement on a
building roof is not as simple as it sounds
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Computer generated image of the proposed world trade centre in Bahrain, one of a number of concept designs for building
integrated wind turbines MUHARRAQI STUDIOS / KHALID AL-MUHARRAQI
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the main wind direction flow, separation occurs and a highly
turbulent low wind speed zone close to the roof surface will
be formed.Above this so called separation bubble, a noticeable
acceleration in wind speed is introduced (Figure 1). If a wind
turbine rotor operates within the highly turbulent air bubble,
heavily increased material fatigue can cause the installation to
physically disintegrate within a short period.
Buildings that are higher than surrounding structures
block the wind and cause the undisturbed wind speed far
upwind to accelerate near the building. Mertens:One should
be aware of the fact that the airflow is not able to follow sharp
building contours and the majority of todays utility and other
buildings are simple rectangular blocks with sharp edges.This
phenomenon whereby the air flow is not able to follow a
sharp contour is called separation and it creates a local low
speed zone close to the roof of a sharp edged building.
These findings have influenced some of the design
parameters of Turby and WindWall turbines, both specifically
designed for roof edge placement, and both aimed at
benefiting from the resulting accelerated airflow.Assume, for
instance, that the inclined accelerated air flow over the roof
edge increases by 25%, then the power generation potential
increases by 95% compared to undisturbed horizontal
airflow. This sharp rise in output occurs because the power
in the wind increases by the wind speed cubed.
By contrast inclined air flow on conventional horizontal-
axis wind turbine rotors placed on a roof edge is known to
substantially reduce energy yield. For these turbines, the high-
turbulence environment on building roofs results in continuous
rotor yawing movements.This negatively affects power output
due to continuous rotor acceleration and deceleration and
reduces operational life time of the installation.
Another point stressed in Mertens work is that wind
flow on building roofs originates from multiple directions.
Based on his research, Mertens favours the use of either H-
Darrieus or classic Darrieus rotors at roof edges placed in
vertical-axis mode. He said: WindWall type turbines with
fixed horizontal-axis roof mounting can only benefit from
wind blowing perpendicular on the rotor and from only one
main direction.The yield potential per m
2
rotor swept area is
therefore only 25%50% compared to an H-Darrieus or
"classic" Darrieus rotor with a similar rotor swept area.
When wind turbines are put on flat-roof buildings,
Mertens recommends that the lowest rotor blade tip is
always positioned well above the outer contours of the
turbulence bubble. For example, when the roof width in the
main wind direction measures A metres, a first indicative
rule of thumb is to place the turbine in the middle or at 0.5
A. In this position the installation can benefit from wind
blowing from two opposing (main) directions while
operation in the destructive high-turbulence and low-energy
area is avoided. The vertical distance between the roof
surface to the lowest blade tip should finally be chosen at a
value of minimal 0.5 A.
MIXED RESULTS FOR URBAN WIND
Experiences with roof-mounted urban wind turbines in the
Netherlands have so far been mixed at best, says Mertens.
These turbines have to be custom designed for this specific
application, and adapted to a high degree of turbulence and
relatively low average wind speeds. Experiences over the past
years in The Netherlands show that many of these first
generation urban wind turbines were (for various reasons)
not always put on the most suitable buildings or the best roof
spots from a potential yield perspective point of view. This
sub-optimized urban wind turbine siting can be attributed to
a variety of reasons. These include obstacles in obtaining
permits, building owner preferences and local political
pressure to do something good for the environment. Some
building owners also attempt to keep the wind turbine nearly
invisible to avoid criticism, and there have always been
commercial pressures with (small emerging) equipment
suppliers to deliver. A second point is that development of
well performing and reliable urban wind turbines proves, in
practice, to be technically complex, costly and time-
consuming process, especially for the small companies.Third,
overly optimistic but inexperienced manufacturers more
than once came with totally unrealistic energy yield potential
claims for their products, often prototypes with little to no
track record.
FIGURE 1. Airflow over building roof edge (Computational Fluid
Dynamics calculation). Source: DHV
The windwall turbine is installed at the edge of a building to take advatage of localized
air-flows WINDWALL
Experiences with roof-mounted urban wind
turbines in the Netherlands have so far been
mixed at best
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M 1 - i n n o v a t i v e c o n t r o I s y s t e m s f o r s o p h i s t i c a t e d a u t o m a t i o n s .
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According to Mertens this combination of factors has
already had a negative effect on the reputation of urban wind
energy in the Netherlands and he feels that poorly performing
turbines, and the practice of putting installations more or less
at random on building roofs are the two key factors to blame
for the current loss of market confidence.
Speaking on this subject Mertens said: At DHV we
developed a computerized Computational Fluid Dynamics
(CFD) calculation tool, which visualizes the wind flow pattern
around a given building as part of its physical environment
(buildings and other obstacles). With a CFD calculation, the
wind flow pattern on and around a specific building can be
visualized and quantified relatively cheap and fast. It also
provides information on the best location to put an urban wind
turbine.This package includes average wind speed distribution
along the entire building roof edge and over the roof itself.
Mertens goes on, saying that by using the CFD methodology,
not only a specific building is examined but also the
surrounding physical environment is included. It is therefore
an excellent alternative to the much more costly and time
consuming practise of testing a building model (scale-model)
and its surrounding infrastructure in a wind tunnel. He
concludes: With the new method DHV and its partners hope
to greatly improve the process of determining the best
locations for wind turbines in the built environment. This in
turn will boost the technical and economic potential of urban
wind energy projects, and thereby commercial opportunities
for emerging equipment suppliers. Our new method has been
put in practice already several times. One recent example is a
CFD analysis of a four-storey educational building in Rijswijk,
near The Hague. (See boxed text below).
BUILDING INTEGRATION
Putting urban wind turbines on roofs is still in an early stage of
development, says Mertens. In future, buildings might be
constructed with wind turbines integrated into the structure
(or in the middle of twin-tower structures). The aim in such
concept buildings is to benefit from the wind speed
acceleration induced by a specific building shape. Such
integration of wind turbine(s) with buildings is also a much
more radical and adventurous approach compared to putting a
wind turbine on a building roof.
Almost everyone is familiar with the large and frequent
changing wind speeds close to buildings, particularly if you
have lost the odd umbrella as the result of a sudden gust
from an unexpected direction. The acceleration of
undisturbed wind speed is visualized by results of a CFD
building calculation carried out by DHV (ISO-surface with a
velocity of 6 m/s. The illustration clearly shows that the
building moves high wind velocities downwards).
Apparently, large buildings in the built environment cause
an acceleration of the low average wind speeds. This wind
speed acceleration caused by nearby buildings could in
theory be utilized in order to boost energy output of building
mounted wind turbines.
In the following pictures, the educational building in
Rijswijk, Netherlands, is shown. This building (shown yellow)
is surrounded by other building blocks and some trees
(shown as green screens). The two little towers on the roof of
the educational building represent the elevators, and a
relatively large advertising screen is show as a wire screen at
the right site of the long roof section edge.
The influence of the advertising screen is clearly visible on
the CFD results for two opposite wind direction perpendicular
to the long roof sites. When the wind comes from the right
(picture) the advertising screen poses a major obstacle to the
wind flow. In this specific case and also in general relatively
small local obstacles on a roof apparently do have great
influence on prevailing wind velocities.
Mertens: Based on the above figures the energy yield of a
rooftop wind turbine with moderate dimensions in the
Netherlands is in the range of about 100300 kWh/m
2
/year.
Average energy yield of large wind turbines in rural areas of
the Netherlands is by comparison about 1000 kWh/m
2
/year.
But the energy reimbursement of a roof mounted wind
turbine is typically three times higher. My conclusion is
therefore that the economic potential of small rooftop wind
turbines by assuming an optimized location and well-
performing equipment is comparable to that of a large wind
turbine in open areas.
CFD CALCULATION EXAMPLE: FOUR-STOREY EDUCATIONAL BUILDING IN RIJSWIJK, NETHERLANDS
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For the majority of wind turbine designers, as well as
architects and civil engineers, the concept of integrating a wind
turbine into a building is pretty new. Integrating two different
technologies requires new ways of thinking from all
participants. This includes developing new competence in
dealing with complexities in the field of costing in relation to
building shape and user functions.A 2002 MSc research project
co-ordinated by Mertens and carried out by Anne Jan Breimer at
the Technical University of Delft looked into structural building
aspects of the integration of a wind turbine in a building.
Besides generating clean energy, a so-called Wind Turbine
Building (WTB) might be attractive for organizations interested
in creating a positive image of socially and environmentally
sensitive entrepreneurship. Modern high-rise buildings are
increasingly characterized by unusual shapes and striking
design features and seem a good target for building integrated
wind power. The interaction between the specific image of a
building and user functions may result in positive added value
effects and new unexpected wind turbine features and design
options. On the other hand key functions of a building with
integrated wind power should remain a cost-effective system
(compared with other renewable energies) that is capable of
generating a sizeable proportion of its internal energy use!
One of the potential side-effects which needs to be avoided
in WTB is wind turbine induced vibrations on the building.
Buildings usually have a frequency in the range between 1.0
and 10 Hertz.A 100 metre high rise building on the other hand
has a typical eigenfrequency range between 0.51.0 Hz, but at
the same time a huge mass moment of inertia. This means in
practice that such a high-rise building is insensitive to wind
turbine induced vibrations, provided the eigenfrequencies are
not in the same range. That is to say, when only the first
eigenfrequency and high wind speeds are taken into account.
Individual construction elements of a building have their own
specific eigenfrequencies. For many of these elements a
vibration frequency level below 35 Hz is considered
unacceptable from a material fatigue point of view. However,
besides the actually measurable vibrations and their potential
impact on the building structure, vibration perception by
persons working in a WTB should also be taken into account
and is an aspect that certainly should not be underestimated.
All these potentially conflicting WTB demands necessitate
structural adjustments or even new construction methods for
future wind turbine integrated buildings.
CONCLUSIONS
Breimers main conclusion was that a technically perfect and
aesthetically pleasing integration of a wind turbine into a
building structure is only feasible when major structural and
functional modifications are accepted as a given consequence.
He concluded that the findings on subjects covered in the
research project were in general positive. From a structural
point of view the biggest problems with turbine integration
can be expected to stem from dealing with dynamic loads.
Additional research will be needed to show whether these
problems can be solved and at what costs.
Breimer believes that the first group of potential investors
in WTBs are likely to be those individuals or groups with a keen
eye on image-related aspects. Future WTBs have the potential
The Tupilo turbine is one of a number of conventional type turbines designed for urban
use WES
For the majority of wind turbine designers the
concept of integrating a wind turbine into a
building is pretty new
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to have positive impact on the general perception and
acceptance of the public regarding renewables and especially
wind energy technology applications. Actual energy output
will finally depend to a great extend on the actual location.
An essential subject that requires further research is the
relationship between investment cost for the wind installation
in a WTB, and additional costs for installation upkeep during
the entire operational lifetime. Other factors to be considered
include the loss of valuable floor space, set against envisaged
financial income from wind energy generation.
4
The WTB research views are largely shared by the findings
of a second research group that also worked on wind turbine
integration in buildings. Between 1998 and 2000 four
European organizations worked on this EU Joule III research
project titled Wind Energy for the Built Environment (WEB).
Partners included the Imperial College London, BDSP
Partnership also from the UK, Stuttgart University, and Dutch
engineering consultancy Mecal Applied Mechanics BV.
5
One of the conclusions was that an urban wind turbine
can induce harmful vibrations in the building structure. A
second potential risk factor is the (slim) possibility of disaster
as a result of a major calamity with the wind turbine. If for
instance a broken rotor blade hits a car parked near the
building and the fuel tank explodes, consequential damage
may be more serious than the single impact of the initial
event.An important question during our research project was
therefore developing a long term strategy on the urban
turbine technology development. Equally important is the
embedding into the urban environment, including a
determination of acceptable risks and how to deal with them.
The experts also believe that risks attached to operation urban
turbines should be seen in a wider perspective, as also
conventional large wind installations are sometimes built
near roads and other infrastructural objects.
A more fundamental question raised is whether small urban
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Testing the aerodynamics of a building integrated wind turbine in a wind tunnel DHV
It should be avoided that owners simply buy a
turbine, and integrate it with buildings that
cannot be called energy efficient
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turbines themselves as a phenomenon are practically feasible.
For instance it should be avoided that owners simply buy an
urban turbine for status reasons, and integrate it with buildings
that cannot by any standards be called energy efficient. Or as
the WEB co-ordinator put it:Our view point is that integration
of wind turbines in buildings can only be effective when it is
an integral part of an energy efficient building. In other words
there needs to be a realistic and credible ratio between the
wind power generated and the energy use of a building.
A major challenge was integration of shape and function
regarding working and living conditions on the one hand and
wind power generation on the other. Popular block type
buildings are not only functional, but also relatively
inexpensive to build. From an energy efficiency point of view
block type shapes offer a favourable ratio between volume as
a measure of usable floor space and energy loss through walls
and building roof. The coordinator again: For optimized
power generation capacity a building with an air foil shape
can offer certain diffuser type advantages for wind turbine
integration. From a practical building use point of view
however, an airfoil is not the first choice as it offers
comparatively little usable floor space for relatively high
costs. And due to the unfavourable volume/wall surface ratio
heat loss in winter and climate control in summer are both
much harder to control.
Mertens is in full agreement with these opinions about
building-integrated wind turbines. He concludes that
although DHV is actively involved with the design of more
than one building with integrated wind turbine, the project
stages are just too early for this article.
Eize de Vries is Wind Technology correspondent for Renewable Energy
World
rew@jxj.com
Sander Mertens is an expert on urban wind energy application and a senior
advisor with the leading Dutch engineering consultancy DHVs Sustainable
Wind group (www.windadviseurs.nl) based in The Hague. Mertens recently
completed a PhD thesis on urban wind energy applications at the Technical
University of Delft with a focus on Concentrator Effects of Buildings.
LITERATURE
1. Mertens, S. Wind energy in the built environment; Concentrator effects of
buildings, Published by Multi-Science (UK), ISBN 090652235 8, September 5,
2006
2. Breimer, AJ. MSc Thesis Part I: Integratie van windturbines met gebouwen
Voorstudie naar het ontwerp van een WTG [Translation: Integration of wind
turbines in buildings Wind turbine pre-feasibility study]
3. Breimer, AJ. Thesis Part I: Integratie van windturbines met gebouwen Ontwerp
van een WTG [Translation: Integration of wind turbines in buildings Wind
turbine design]
4. Vries de, E. Urban turbines (Part II): Integrating wind turbines in high rise
buildings. WindStats Newsletter, No. 2/2002
5. Vries de, E. Wind turbines in urban environments. WindStats Newsletter, No.
4/2001
Urban challenges WI ND
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Silicon shortage PHOTOVOLTAI CS
As the photovoltaic industry continues its explosive growth, the
continuing shortage of silicon threatens to slow growth and push up
prices. Hilary Flynn and Travis Bradford examine the silicon situation and
look at the industrys plans to ramp up production in the next few years.
T
he solar photovoltaic (PV) industry has grown
tremendously over the past decade, with annual growth
rates of 30% or more.The industrys rapid expansion is
directly linked to government support programmes, as
more and more governments grasp the critical role that
solar will play in addressing climate change and enhancing
energy security. Future growth, however, will be constrained as
long as refined silicon, the building block of most solar cells,
remains scarce and increasingly expensive.
While solar cells can be made with a variety of different
semiconductor materials, refined silicon, also called
polycrystalline silicon, served as the primary feedstock
material in 94% of the photovoltaic cells produced worldwide
last year. Historically, the electronics industry was the main
polycrystalline silicon consumer and the PV industry was
content to take scrap or off-spec material at lower costs. Since
2004, unexpectedly strong growth in silicon demand from the
PV industry in Japan and Germany and more recently from
emerging PV markets such as Portugal, Spain, and the State of
California has exceeded the scrap supply, as well as exploited
the spare production capacity that polycrystalline silicon
manufacturers carried over from the technology bust of 2001
to 2003. Buyers have now drawn down nearly all of the worlds
available inventories of polycrystalline silicon, and as a result,
there is little remaining cushion in the supply chain. Current
bulk silicon producers are running at maximum capacity to
keep up with promised deliveries to wafer and cell
manufacturers. Reports of unfulfilled silicon commitments, and
of shipments not reaching intended customers, are
increasingly common. At many of the industrys major
companies, some wafer and cell production capacity is
reported to be idle. The silicon shortfall, combined with the
more than 100% increase in price since 2003, is fundamentally
altering the PV industry, its prices, and its strategies for
continued growth.
After an initially slow recognition of the potential supply
shortfall, the silicon producers are finally beginning to
respond, as the recent spate of new polycrystalline silicon
project announcements demonstrates. From April to July 2006,
more than dozen companies announced over 50,000 tonnes of
potential additional polycrystalline silicon production capacity
set to come on-line over the next four years, almost twice what
was produced in 2005. While this sounds encouraging, the
realistic supply of polycrystalline silicon that is ultimately
brought online, however, may be very different than what
these potential supply announcements promise.
Silicon shortage
Supply constraints limit PV growth until 2008
After an initially slow recognition of the
potential supply shortfall, the silicon
producers are finally beginning to respond
Raw silicon ready to be cast in to polycrystalline silicon ingots WACKER CHEMIE AG
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POLYCRYSTALLINE SILICON PRICES
According to Michael Rogol, a PV industry analyst, prices for
silicon have increased dramatically over the last few years. The
average price for solar grade silicon has gone from US$24/kg in
2003 to $45/kg in 2005, with prices projected to reach $60/kg
in 2007. Jesse Pichel, an analyst at Piper Jaffray who follows the
solar energy industry, estimates that current contract prices
could run even higher. He estimated that in 2005 contract prices
for silicon, which do not separate solar grade from electronics
grade because with demand so high the two are fungible, would
be $5565/kg. For 2006 he estimates contract prices at
$6575/kg, and forecasts $70/kg for 2007. In discussions with
buyers and sellers of polycrystalline silicon, we learned that spot
market prices are markedly higher at $200/kg or more.
A number of companies are attempting to increase their
supply of polycrystalline silicon in response to rising prices,
but silicon processing is a highly capital-intensive endeavor
with long lead times. After several years of uncertainty, the
industry is generally accepting that the silicon supply
constraint will be nearly (perhaps completely) alleviated by
the end of 2008 through dramatic expansion plans announced
by existing producers (and some new entrants). These are
examined, company by company, below. Whether the planned
capacity comes online in the time frame indicated remains to
be seen. Meanwhile, concerns remain about the consequences
sustained high feedstock prices will have for the cell and
module producers in the interim.
POLYCRYSTALLINE SILICON SUPPLY TOP SEVEN
PRODUCERS
Just seven companies dominate worldwide polycrystalline
silicon capacity; these companies are clustered in three
countries, the United States (54% of production), Japan (24%),
and Germany (18%). In 2005, polycrystalline silicon production
capacity was 31,280 tonnes, 31,150 tonnes of which was from
the top seven producers (Figure 1).
Hemlock, in the US state of Michigan, captured 25% of the
world market with 7700 tonnes of production capacity. The
company plans to increase capacity to 19,000 tonnes by 2010,
and is in the process of selecting a location for a new
polycrystalline silicon plant.
Wacker Polysilicon has one polycrystalline silicon
production facility in Burghausen, Germany. Its 2005
production capacity was reportedly 5500 tonnes, which it
plans to increase to 6500 tonnes in 2007. Wacker anticipates
further expansion to 10,000 tonnes in 2008, and an additional
4500 tonnes online by 2010.
The Norwegian Renewable Energy Corporation (REC) has,
over the last few years, purchased two polycrystalline silicon
production facilities, both in the western US. According to a
company representative, the company produced 2800 tonnes
of electronic grade silicon (EG) and 2500 tonnes of solar grade
silicon (SoG) in 2005. REC recently announced that it will
move forward with the construction of an industrial-scale
fluidized bed reactor (FBR) polycrystalline silicon facility in
Washington State.With this new plant, and with small increases
in production at existing facilities, REC will have over 12,000
tonnes of capacity by 2010.
Tokuyama, of Japan, had a production capacity of 5200
tonnes in 2005. Tokuyama also has a 200 tonne pilot plant
using vapour-to-liquid deposition (VLD) technology, which it is
PHOTOVOLTAI CS Silicon shortage
BAE Solar Batteries
Made in Germany
E N E R G Y F R O M B A T T E R I E S
Actual photovoltaic range:
VLA-Batteries BAESECURA PVM solar (Modular), 220 Ah 1100 Ah
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VLA-Batteries BAESECURA PVS solar, 72 Ah 4700 Ah
acc. IEC 60 896-11, IEC 61427:2005
VRLA-Batteries BAESECURA PVV solar, 77 Ah 4460 Ah
acc. IEC 60 896-21,-22, IEC 61427:2005
BAE Batterien GmbH
Wilhelminenhofstrae 69/70 12459 Berlin Germany
Tel. +49 30 53001-401 Fax +49 30 5354949
E-mail: headoffice@bae-berlin.de www.bae-berlin.de
M
a
d
e
in Germ
a
n
y
BAE
DINENISO9001:2000
M
a
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e
i n Ger m
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y
BAE
DIN EN ISO 14001
Environmental Management by
0
2
0
0
0
4
0
0
0
6
0
0
0
8
0
0
0
1
0
,
0
0
0
1
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0
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ELKEM
Total China
Sumitomo
Mitsubishi
MEMC
Tokuyama
REC
Wacker
Hemlock
2005 2006 2007 2008 2009 2010
Current and projected production capacity (tonnes)
FIGURE 1. Polycrystalline silicon capacity 20052010
A mere seven companies dominate worldwide
polycrystalline silicon capacity
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perfecting.While the company is reluctant to disclose when it
will be able to move VLD to industrial-scale production, NEDO
(New Energy and Industrial Technology Development
Organization), a collaborator on the VLD project, indicated that
if the process can be fine-tuned, a production capacity of a few
thousand tonnes could be available in 2008.
MEMC currently produces polycrystalline silicon in the US
and Italy, but may build a third plant as it increases capacity.
Between the two facilities, MEMC had a production capacity of
3800 tonnes in 2005, which the company hopes to expand to
a total capacity of 8000 tonnes by 2008. MEMC has caused
quite a stir in the industry by failing to deliver 52 tonnes under
contract to Evergreen and signing an agreement with Suntech
to provide the Chinese cell manufacturer with wafers over a
10-year period.
Mitsubishi Materials Corporation owns two polycrystalline
silicon companies, one in the United States (Mitsubishi
Polycrystalline Silicon America Corporation), with a capacity of
1250 tonnes and the other in Japan (Mitsubishi Materials
Polycrystalline Silicon Co.) with a capacity of 1600 tonnes.
Construction of a 300 tonnes expansion project is underway
for the US company, but Mitsubishi Materials plans no
additional capacity.
According to a company representative, Sumitomo
Titanium Corporation of Japan caters to the electronics
industry. It had a production capacity of 800 tonnes in 2005
and plans to increase capacity to 900 tonnes in 2006.
Sumitomo recently announced that it will add another 400
tonnes by 2007.
By 2010, these seven companies expect to have a
combined production capacity of over 60,000 tonnes, nearly
double their 2005 level. Nevertheless, their slow response to
the need for more silicon, coupled with the potential long-term
market growth and profitability, has prompted other
companies to enter into the polycrystalline silicon business.
POLYCRYSTALLINE SILICON SUPPLY EMERGING
PRODUCTION
In addition to the major expansion announcements from many
of the larger polycrystalline silicon producers, several new
companies are attempting to enter the polycrystalline silicon
business with both traditional and new methods of
production. The most notable of the new entrants is Elkem
Solar, a division of the Norwegian chemical conglomerate
Elkem, which is currently in pilot scale production but which
will enjoy 12% of the market in 2010 if its expansion plans are
realized. A company representative anticipates that Elkem will
have 20003000 tonnes of SoG silicon production capacity in
2007, ramping up to 10,000 tonnes by 2010. The scale of this
production expansion rivals the two largest of the existing
major players, Hemlock and Wacker.
Other, smaller, new entrants such as M.Setek, a Japanese
silicon wafer-maker, are also reportedly entering into
polycrystalline silicon production. M.Seteks initial product is
estimated to be available in 2007, with a target production
capacity of 3000 tonnes by 2010 (though when we contacted
M.Setek the company declined to comment). Also, a joint
venture between SolarWorld and Degussa Joint Solar Silicon
GmbH will move from pilot-scale production to industrial
scale silicon production, according to a June press release from
SolarWorld. Large-scale production will begin in 2008 with a
capacity of 850 tonnes. JFE Steel Corporation also announced
at the end of July that it has begun construction of a 100 tonnes
solar grade polycrystalline silicon facility.
A joint project between Spanish cell-maker Isofotn, the
Andalusian government (Department of Innovation, Science
and Business) and Endesa, a Spanish utility, will result in the
first Spanish polycrystalline silicon plant, with an anticipated
capacity of 2500 tonnes. This announcement has exciting
implications for the PV industry, as the consortium will not
only supply much-needed solar grade silicon, but is also located
in a region poised to be the next big market for solar
ABOVE Polycrystalline silicon granules are the starting point for the manufacture of all
silicon PV MEMC RIGHT Silicon granules are melted in a crucible and re-cast in various
types of crystalline ingots MEMC
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installations. Endesas involvement is particularly interesting,
considering the need for large amounts of reliably cheap
electricity to produce polycrystalline silicon.
Another well known cell producer, SunPower, has signed a
four-year supply agreement with DC Chemical of Korea for the
delivery of $250 million worth of polycrystalline silicon
starting in 2008. The construction of this 3000 tonne plant
marks DC Chemicals first venture into the polycrystalline
silicon business, which SunPower will help finance with
advance payments over a 12 month period.
While these new entrants to the polycrystalline silicon
market will indeed contribute to the feedstock supply, there
are as many examples of projects that, though promising, need
to develop further before they can be included in
polycrystalline silicon supply estimates. ARISE Technologies of
Canada has obtained nearly $20 million in funding to build a
200 tonne pilot plant based on a new method to produce solar
grade silicon. The company hopes to have 2000 tonnes in
production capacity by 2010. Hoku, a fuel cell company in
Hawaii, announced plans not to only diversify into the PV
industry by making cells, but also to build its own
polycrystalline silicon facility. The facility would be located in
Singapore and is expected to have a production capacity of
1500 tonnes by the second half of 2008. Hoku has yet to firm
up its funding sources for this project.
Production of polycrystalline silicon in China over the next
five years is difficult to quantify with any degree of certainty.We
attended the 3rd Solar Silicon Conference in Munich in April
2006, where Professor Deren Yang of Zhejiang University
provided insight on the silicon situation in China. He projects
that up to nine companies combined will produce 5830 tonnes
annually by 2010. Since then, there has been a flurry of company
press releases, news stories, and rumours suggesting significant
activity in capacity planning that may generate 20,000 additional
tonnes (or more) within China. The chief uncertainty about
these potential Chinese producers is whether their product
quality will be high enough to meet the expectations of solar PV
OEMs (original equipment manufacturers). In 2005, there were
only two small polycrystalline silicon companies producing in
China: Emei Semiconductor Material and Luoyang Monocrystal
Silicon.Together, these companies produced only 130 tonnes.
China isnt the only country emerging outside the traditional
polycrystalline silicon-producing nations. According to
Dr Lebedev of Swiss Wafers, Russia and other countries of the
Former Soviet Union (FSU) have the potential to produce
upwards of 14,500 tonnes if the necessary investment funds
could be secured. He believes that 3000 tonnes of capacity will
be online in this region by 2009. One example of an FSU
company with firm expansion plans is Crystal, located in
Kyrgyzstan. Crystal anticipates 60 tonnes produced this year,
ramping up to 1200 tonnes by 2008.
We do not include many of these recent announcements
from companies newto the polycrystalline silicon industry in our
capacity forecast because they lack specific timeframes,
established technology, or adequate capital for large-scale roll-out.
We will monitor all of these manufacturers potential to change
the core silicon processing technology and cost structure, or to
increase the availability of solar grade silicon for the industry.
DEALING WITH THE SHORTAGE OF POLYCRYSTALLINE
SILICON
As the price of silicon increases and adequate supplies over the
next two to three years remain highly uncertain, producers
within the PV supply chain are coping with the silicon supply
Production of polycrystalline silicon in China
over the next five years is difficult to quantify
with any degree of certainty
Although the thin-film sector is growing, crystalline PV still accounts for over 90% of the
market MEMC
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shortage in a number of different ways. First, ingot producers
and cell manufacturers are attempting to use silicon more
efficiently. For example, Solaicx, located in California, is
developing a continuous Czochralski (CZ) process that the
company claims is faster and less wasteful than the traditional
method for making monocrystalline ingots.
Cell companies, including Evergreen and SunPower, are
attempting to lower their silicon requirements per watt.
Evergreen, which now relies heavily on Renewable Energy
Corporation for its polycrystalline silicon supply, requires only
6g Si/W for its String Ribbon cells. SunPower now produces
cells that require less than 8g Si/W. Both are using significantly
less silicon than the industry standard of 11g Si/W.
Second, more companies are vertically integrating, adding
silicon recycling or production capacity in-house. For example,
ErSol of Germany acquired Silicon Recycling Services, a
recycler with facilities in California and China, which supplied
the market with 700 tonnes of polycrystalline silicon in 2005.
SolarWorld doubled the capacity of its SolarMaterial Division
which will be able to recycle 1200 tonnes of polycrystalline
silicon annually.Again, companies such as Hoku and ARISE have
announced plans to build polycrystalline silicon facilities to
supply their emerging cell and module production lines, using
a completely vertically-integrated approach. GiraSolar, a PV
company in the Netherlands, has recently filed for a patent for
its proprietary process for producing polycrystalline silicon.
Third, companies are entering into joint ventures and long
term contracts. A survey of polycrystalline silicon producers
revealed that most, but not all, polycrystalline silicon sales took
place via short-term and long-term contracts. In fact, long-term
contracts are funding much of the additional capacity being
built over the next few years, through up-front loans and
payments. An example is the recently-announced agreement
between cell producer Suntech of China and MEMC.
The silicon shortage is undeniably putting pressure on the
PV industry, but it is also having a positive impact. In the long-
run, having polycrystalline silicon companies dedicated to the
solar industry, using silicon more efficiently, and enhancing
recycling capabilities will benefit the industry.
FORECASTING SILICON AVAILABILITY
To synthesize what rising silicon prices, increasing efficiency of
silicon use, and new plants coming online by 2008 mean for the
PV industry over the next several years, the Prometheus Institute
(PI) developed a projection model with three potential growth
scenarios (Figure 2).The three growth rate scenarios for the PV
industry in this analysis are 10%, 30%, and 50%.We developed the
models underlying assumptions through an extensive literature
review and in consultation with other industry experts. Our key
assumptions are that polycrystalline silicon use per watt will
decline by 5% from its starting value of 12g/W in 2005; the
market share for silicon wafer cells will decrease 0.5% per year
as end-users substitute thin films for wafer-based cells; and the
integrated circuit (IC) demand for polycrystalline silicon of
20,000 tonnes in 2005 will increase 7% each year according to
semiconductor industry analysts.
In calibrating the model for 2005, we noted that the PV and
semiconductor industries used approximately 8000 tonnes
more polycrystalline silicon than was reportedly available, based
on the stated annual production capacity from the major
suppliers. Several factors may serve to explain this discrepancy.
First, more polycrystalline silicon was probably delivered to the
market from producers than the capacity figures suggest.
Companies made their inventories available to the market.
Wacker attributes its ability to meet customer orders to its
polycrystalline silicon inventory, and undoubtedly other silicon
companies drew down their inventories. PI did not receive
inventory figures from any of the polycrystalline silicon
producers we contacted, but we believe a realistic estimate of
drawn down from 2004 inventory to be between 2000 tonnes
and 3000 tonnes. Analysts Rogol and Pichel believe inventory
was 4000 tonnes and 7000 tonnes, respectively. Given the
current high price of silicon, it is unlikely that significant
inventories remain to supplement needs in 2006 and 2007. It is
also possible that plants were run in excess of stated capacity or
that yields were optimized for the solar grade process.
Second, recycled polycrystalline silicon probably accounted
for a couple of thousand metric tons between the feedstock
recycled in-house at cell manufacturers like GE and SolarWorld,
as well as SRS and PV Crystalox. Recyclers are also expanding
capacities. In the short term, unused wafers left over from
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The silicon shortage is undeniably putting
pressure on the PV industry, but it is also
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previous years could help alleviate some of the polycrystalline
silicon constraint. SMIC, a wafering company in China, recently
made public its intention to recycle 300,000 wafers it collected
from its own wafering activities and to convert them into PV
cells. As inventories of off-spec material are diminished, the
contribution of recycled material to feedstock supply will
ultimately be constrained by the amount of pure
polycrystalline silicon available to the industry.
Third, several companies produced small amounts of useable
silicon in pilot-scale batches not included in the model
presented here. PI estimates that the available excess
polycrystalline silicon from recycled material, production in
excess of disclosed production capacity, inventory, and pilot
scale production amounted to a few thousand tons.This explains
the discrepancy between capacity and demand in Figure 2.
Our scenarios show that until 2008, growth in the PV
industry must moderate to below 30% per annum due to limits
imposed by the availability of silicon.Variables such as the exact
time when a facility will come online and the time needed to
ramp up to full production make it difficult to forecast
production quantities with certainty. Based on announced
capacity expansions, silicon capacity in 2006 will only be 3500
tonnes more than 2007, allowing for less than 6% growth in
silicon cells produced.We will see some improvement in 2007 as
an additional 6500 tonnes comes online and the industry
experiences 16% growth. By the end of 2008, silicon capacity
will be 50% more than it was in 2007. It is hard to imagine how
the wafer and cell producers will be able to absorb so much
silicon after two years of constrained growth. After 2008, PV
industry growth rates over 30% are possible based on marginal
improvements in efficient silicon use, announced capacity
expansions, and a reasonable expansion of the thin film
production as it gains additional market share. We embedded a
modest growth in thin film market share, from 6% in 2005 to 8%
in 2010, yet the recent increase in capacity announcements
suggests that our assumptions for thin film growth are
conservative. Thin film companies are no doubt looking at the
silicon shortage as an opportunity to gain market share.
IMPLICATIONS FOR THE PV INDUSTRY
Several trends are emerging in response to the polycrystalline
silicon shortage that may have a lasting impact on the industry.
First, beyond the contracts between wafer and cell producers
and polycrystalline silicon producers mentioned above, it
appears that supply agreements are becoming more popular
up and down the supply chain. This solidification of the PV
industry is one effect of the feedstock shortage, as companies
attempt to secure materials, whether it is modules, cells,
wafers, or polycrystalline silicon. This vertical integration
through contractual relationships, and possibly future
acquisitions, will be necessary for producers to have control of
the vital inputs and customers of their products at the various
stages of production.
Second, capital is rapidly flowing into thin film technologies
not affected by the silicon shortage, including $600 million in
new public equity financing to two top thin film producers
United Solar Ovonic and First Solar announced so far this year.
With thin films further benefits of low cost and aesthetic appeal,
the silicon shortage should present an opportunity for thin film
manufacturers to substantially gain market share.
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Looking beyond 2008, it is unlikely that the historic PV
industry growth rates near 50% in 2004 and 2005 can be
repeated and sustained without the combination of:
Rapid growth of thin film from its current 6% market share
to over 20%;
Significant new silicon production capacity beyond that
already announced and will realistically come online; and
An industry-wide doubling in the efficient use of silicon (to
under 6 g/W) by todays dominant PV manufacturers.
It is possible, but not easy, to accomplish all of those goals in
the next 4 years. With growing interest among investors and
policy-makers, the PV industry has sufficient capital and the
technical talent for the challenge. But such growth will also
require creativity, and perhaps more importantly, the tenacity to
endure the pain the next few years of supply constraints will
impose.
Hilary Flynn is a senior researcher at the Prometheus Institute
e-mail:hflynn@prometheus.org
Travis Bradford is President and founder of the Prometheus Institute.
His book, Solar Revolution: The Economic Transformation of the Global
Energy Industry, was released this August from MIT Press
e-mail:tbradford@prometheus.org
web:www.prometheus.org.
This article was adapted and updated from one that originally appeared
in the July 2006 issue of PVNews, published by the Prometheus
Institute for Sustainable Development.
To understand the current and future silicon market, the Prometheus
Institute for Sustainable Development is performing a comprehensive
research project on the state of the silicon supply. The central findings
from our research are presented here, and the entire report which
provides an overview of silicon processing, company descriptions and
implications for the PV industry will be available later this summer from
the Prometheus Institute website.
archive, go to www.renewable-energy-world.com.
Silicon shortage PHOTOVOLTAI CS
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2005 2006 2007 2008 2009 2010
Year
P
o
l
y
c
r
y
s
t
a
l
l
i
n
e
s
i
l
i
c
o
n
(
t
o
n
n
e
s
)
Total capacity
Total Capacity
10%
30%
50%
Growth rate
FIGURE 2. Polycrystalline silicon capacity and demand 20052010
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Prof. Peter Woditsch is convinced crystalline silicon will continue to
dominate as the workhorse of solar PV well into the future. In this
article he explains why.
S
ince 2000, the PV market has been growing at an
annual rate of at least 35%, and cell and module
production is expected to reach 7 GW by 2010. This
level of growth will largely depend on the existence of
unlimited markets as estimated in the studies of
CLSA (Rogol), EPIA and other analysts. However, a hockey-stick
growth curve is expected for crystalline silicon module
production up to 2010. In periods of such rapid growth, supply
bottlenecks are a natural event and have been experienced
by the PV industry before, with silicon (19981999), and
crucibles (20012002).
At Deutsche Solar we believe that for the foreseeable future
at least, 90% of the world market will be met by crystalline
technologies. Mono- and polycrystalline modules have
dominated the market for the past 25 years and together with
ribbon technology, have accounted for over 90% of the total PV
installations. I, personally, believe that crystalline silicon will
play a dominant role in the years to come. So, the availability of
silicon is the crucial factor for market growth in the next
5 years. It is worth remembering that silicon is the most
abundant material on earth, making up 25% of the Earths
upper crust, and is as abundant as all metals together.Therefore
there is no shortage of silicon, just suitably pure silicon.
In 2005, more than 1.2 million tonnes of metallurgical
grade silicon was produced (with a purity of around 99%).This
has a variety of uses in the market, such as the alloying of
aluminium, deoxidization in steel production, and the
manufacture of silicones. One of the important uses for
metallurgical grade silicon is the production of high purity
silicon for the semiconductor and PV industries.This is usually
conducted via the classic route of trichlorsilane or silane as
gaseous intermediates.The resulting prime-polycrystalline silicon
is the starting material for different crystallization technologies.
Other than a small number of float zone products, the
Czochralski-process is the main route for single crystals used in
the electronics industry, and up to 38% of the PV industry.The
PV industry has developed different new technologies for the
production of polycrystalline silicon ingots. Casting-, Bridgman-
and heat-exchange methods are now standard means of
producing polycrystalline ingots, bricks and wafers for the PV
industry at lower cost, because of the higher productivity and
lower energy demand they offer compared with the
Czochralski-process.
Enhanced by the lack of silicon, new technologies that
avoid wafer slicing are emerging, such as the string-ribbon-
process, EFG (Edge-defined Film-fed Growth) or RGS (Ribbon-
Growth-on-Substrate)(see Figure 1).
Over the next five years there is likely to be a steady
increase in silicon manufacturing capacity around 15% per
year and a growing proportion of this additional capacity will
available for the PV-industry. The demand from the electronic
industry is expected to grow at a moderate 5% per year. So,
there is enough silicon for the PV industry to achieve growth
of at least 35% per year.
This shortage in silicon supply has occurred because of a
lack of investment in the production of high purity silicon
during the last five to seven years. First the spare capacities of
the silicon producers in the first few years of this century
needed to be utilized by the PV industry, and prices stabilized
on a profit-bearing level, before the technology owners for
silicon production technology were willing to invest again.The
PV industry, especially cell and module producers, invested too
A bright future
Why crystalline silicon will continue to deliver
A bright future PHOTOVOLTAI CS
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fast, without looking for a safe supply of wafers.
So in 2005, silicon users were faced with sky-rocketing spot
market prices and strong price increases for long-term
contracts as well. Becoming more confident of strong growth
of PV, the big silicon producers are now investing in additional
capacities, with proven technologies shifting the risk of the
investment to their customers by means of long-term take or
pay contracts. New plants are now coming on-stream.
INDUSTRY FINDING SOLUTIONS
With insufficient numbers of wafers available to maintain the
tremendous growth of solar cell production capacity, the
challenge of undersupply with wafers has led to technical
developments to lower the specific silicon requirement per Wp.
The main solutions devised by solar-grade silicon
customers include:
PHOTOVOLTAI CS A bright future
European Photovoltaic
Solar Energy Conference
Hall 3, Booth No. 37
FIGURE 1. Silicon foils technologies.
Source: Schott solar / Evergreen Solar
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thinner wafers
better yield in crystallization and wafering
enhanced recycling of material and
higher solar cell efficiencies.
These have brought down the specific demand of silicon
per Wp, from 13 tonnes/MW in 2004 to 9.5 tonnes/MW in
2006, and this process will continue to an expected level of
7.5 tonnes/MW in 2010 for the proven crystalline silicon
technology. New technologies, which avoid kerf (sawing) loss,
will lower this ratio even further.
String ribbon and EFG have already been commercialized,
by Evergreen and EverQ on the one hand, and Schott Solar on
the other side. Sharps non-sliced wafer technology (NSWT)
and ribbon growth on substrate (RGS) are at a pilot stage
today (Figure 1).
Now that the market has convinced the silicon producers
that PV will continue as a growing market, they are not only
investing in proven technology but are also putting money
into the development of new technologies for production of
solar grade silicon by means of proven gaseous intermediates
(Wacker and Hemlock are looking at granular silicon
production from decomposition of trichlorsilane, and REC of
silane), or are looking into fluid-bed-reactor technology or
processes for the production with very low energy demand
and low cost potential for silicon production. These
technologies will add several thousand tonnes, beginning in
2008 and then ramping up to reasonable amounts.
One of these new technologies is the free space reactor for
silane decomposition, developed in a joint venture between
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FIGURE 2. Silicon value chain cost effective alternatives
Source: Deutsche Solar
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Degussa and SolarWorld. The material flow starts with
metallurgical silicon (or ferro silicon) and ends up with solar
silicon, and a pilot plant for 850 tonnes/year is planned for
2008. The main goal of all technology developments is the
reduction of cost by means of reduced energy demand and
higher output per volume and time.
Another step in the production of low-cost solar silicon dates
back to the 1980s when a couple of companies tried to clean
metallurgical grade silicon using mainly physical and
metallurgical technologies ending with a directional
solidification process to clean the silicon through a process of
segregation. These technologies are now being revived, along
with the direct route to solar-grade silicon by using high-purity
raw materials in the classic electro-smelt furnace. If such
technologies are successful, they will supply additional amounts
of solar silicon in 2008 at the earliest, but with potential for
large amounts.
Because of the strong demand for modules and some delay
in filling the silicon availability gap, thin-film technologies are
scenting an opportunity. Having been in competition with
crystalline silicon technology since the 1980s, their market
share dropped from 10% to 6% during the last five years. Under
the impression of rising prices for PV modules during the last
year, several companies are using this opportunity to
commercialize these technologies now.The investment behind
the projects expected in the period from 2006 until 2009 in
Germany adds up to around 400 million and seems to be
higher per Wp than for crystalline technology. Is this the way to
become cheaper in production?
Time will tell whether thin film activities will be more
successful than in the past. Since 1980 this writer has always
been startled by the announcement of thin-film promoters that
thin-film technology will be the future and crystalline
technology will take second place. It was the other way around
for the last 25 years, but no crystal ball will show the answer.
SILICON TODAY
The production and the market for silicon modules in 2005,
were out of balance. Germany had a market share of nearly 50%
and a production of around 20%, Japan vice versa. Japan and
Germany together have a world wide, and a very high, market
share of 68%.The challenge for all companies involved in the PV
market is to develop the markets in other countries, so that the
growth of PV becomes sustainable and spread world wide (see
Figure 2).
The distribution of the installed cost for a PV system in 2005
is given in Table 1, based on a silicon price level for long-term
contracts. Market penetration requires lower prices in the future
at minimum a price decrease of 5% per year as claimed by the
German feed-in law, which is the biggest export hit to other
countries.The claimed price decrease has to be followed in all
production levels.Wafer, cell and modules have to take a part in
the same way as the balance of systems and an easy and quick
system for installation and the mounting structure as well.
We estimate that by 2010 the costs of crystalline module
technology will come down to less than 50% of the cost levels
in 2002, an average decrease of 8% per year (see Figure 3).
The penetration of new markets and countries and the cost
reduction potential will be a guarantee for future growth of the
PV industry. This growth is necessary to be prepared for the
energy demand of mankind in the future.
IN BRIEF
To sum up:
crystalline silicon will continue to have more than 90% of the
market share, for the forseeable future, at best
there is enough silicon available to follow an average market
growth of 35%
new technology will show price reduction potentials
new routes for alternative solar grade silicon production are
under development and will increase silicon availability
there is a need to develop new markets besides Germany
and Japan
we see the potential for reducing the price of crystalline
silicon modules down to 50% of 2002 levels by technology
development.
Because of its unlimited availability, lack of toxicological
problems,and further cost reductions through new technologies,
there is a bright future for PV technology based on silicon
Prof. Dr Peter Woditsch is Chairman of the Management Board of
Deutsche Solar, part of Solarworld, Freiberg, Germany.
web: www.deutschesolar.de
This article is based on his presentation at the PV Industry forum,
Freiburg, in June 2006.
go to www.renewable-energy-world.co
PHOTOVOLTAI CS A bright future
TABLE 1. Distribution of costs in silicon-based PV
Balance-of-system and labour 33%
Solar grade silicon 10%
Ingot/wafer 14%
Solar cell 16%
Solar module 18%
Distribution 9%
FIGURE 3. Development of production costs 20022010
Source: Deutsche Solar
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WI ND Success on the Horizon
As the companies involved in
the wind industry get bigger
and bigger, many smaller,
independent corporations are
finding it necessary to get
backing from larger groups or
financial institutions. One such
company is Horizon Energy, which
made international news when it
was taken over by investment firm
Goldman Sachs. Elisa Wood reports
H
orizon Wind Energy is a Cinderella story of the US
wind industry. Founded as a small family start-up, the
company turned heads in March 2005 when it landed
the glass slipper financial powerhouse Goldman
Sachs purchased Horizon (named at the time Zilkha),
a landmark event often cited by analysts to underscore just
how seriously big money takes wind power these days.main
Now Horizon expects to expand its project equity to
1400 MW by the end of 2007, up from only about 50 MW two
years ago
Horizon is rapidly evolving from a develop-and-sell player
to a full-fledged wind independent power producer with the
Goldman Sachs balance sheet behind it, said Keith Hays, Global
Wind Energy Advisory Research Director, for Emerging Energy
Research, a Cambridge, Massachusetts consulting company.
The firm is building its footprint both in Texas and the
Northeast, and will be a player to watch.
UNUSUAL BEGINNINGS
The Houston,Texas company has unusual roots for an energy
venture. Its founder Selim Zilkha got his start in his fathers
financial business, a one-room bank in Baghdad that expanded
throughout the Middle East and into Europe. After deciding
banking was not for him, he opened Mothercare in the UK in
the early 1960s, a store that specializes in maternity wear and
baby goods. During his more than 20 years at the helm of the
Horizon expects to expand its project equity
to 1400 MW by the end of 2007
The 80 MW Top of Iowa wind farm, part of more than 500 MW built by Horizon so far
ALL IMAGES HORIZON WIND ENERGY
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Success on the
Horizon
US wind company goes from strength to strength
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company, Zilkha expanded the British operation into other
European countries and the United States.
Then, in the early 1980s, the energy market caught the eye
of the entrepreneur. He sold Mothercare and acquired the
troubled Towner Petroleum and renamed it Zilkha Energy.
Along with his son, Michael, he turned the company around by
pioneering use of three dimensional
computer modelling, at the time a
nascent approach, to uncover hard-to-
detect gas and oil reserves in shallow
waters of the Gulf of Mexico. The
father-son team became known as
technology wildcatters.
Competitors followed, the business
became tougher, and by the late 1990s,
they decided it was time to sell. Thats
when the Zilkhas began to look at
wind power. They had an interest in
the environment and energy, and they
said,Well, if its going to be difficult to
get oil and gas, it stands to reason that
renewable energy makes sense, said
Michael Skelly, Horizon Wind Energys
Chief Development Officer, who began
with the company when it was owned
by the Zilkhas.
The Zilkhas sold their oil and gas
operation to Sonat for US$1 billion, purchased Texas-based
International Wind and transformed it into Zilkha Renewable
Energy.The duo soon found themselves on the right side of an
upward trend.Total US wind installations grew from 2500 MW
to over 9000 MW during the years they built their wind
enterprise. The company prospered under a develop-to-sell
business model, building plants and then selling down interest
in them. Buoyed by the wind industrys growth, the company
at one point had around 100,000 hectares (250,000 acres) of
land under lease for wind development from New York to
California.
But by the mid-2000s, the Zilkhas began to suspect they
had taken the company as far as they could. The wind
industry was getting too sophisticated for a small developer.
The company had little use for the federal production tax
credit, a key financial tool that drew big players to the sector.
The model had changed; the industry got too big for two
individuals, albeit individuals with a lot of financial
resources, Skelly said.The amount of capital we needed was
just too great.
Thats when Goldman Sachs stepped in with its large
chequebook, purchased the company, renamed it Horizon
Wind Energy, and set a new course for its future. (The Zilkhas
have since moved into biomass development.) Supported by
one of the worlds largest investment banks, Horizon now
builds projects with its own resources, seeks debt financing
after construction, and retains equity ownership.
ALIGNING THE STARS
So far, the company has focused largely on developing wind
projects in New York, Iowa, Pennsylvania, and Oklahoma,
In an effort to blend in, Horizon recently housed the control centre for an Iowa wind farm
in a rebuilt barn
Total US wind installations grew from
2500 MW to over 9000 MW during the years
they built their wind enterprise
Lubrication Systems
for Wind Turbines
Simplifying Service!
Visit us at POWEREXPO 2006
in Zaragoza, Spain
September 20 to 22, 2006
Hall 4 - Stand A 31
System Consulting
Engineering
Installation
Commissioning
Maintenance/Service
Training
Lincoln GmbH & Co. KG
Neuenhausplatz 73
D-40699 Erkrath - Germany
Phone +49 (211) 20 99 62-0
Fax +49 (211) 20 99 62-40
www.lincolnindustrial.de
Representative for Spain:
Grupo Tecnico RIVI, S.L.
Pol. El Plano - Naves 82 &107
50430 Maria de Huerva (Zaragoza)
Tel./Fax +34 (976) 12 65 85 /-79
www.rivi.net ______
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Tel.: +32(0)3 450 12 11
Fax: +32(0)3 450 12 20
Hansen Transmissions International nv
Leonardo da Vincilaan 1
B-2650 Edegem
Belgium
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Which gearbox do you
want at the heart of
your turbine?
A reliable gearbox?
With low noise levels?
One that is easy to maintain?
Heavy performance but light weight?
One of two 4.5 MW full load test rigs at Hansens fully
Integrated manufacturing plant in Lommel - Belgium
LETS
TALK
Come and see us
at the EWEC 2006
in Athens, Greece -
booth 302
Hansen Transmissions is a pioneer,
driving the wind turbine industry
forward. An interactive partnership
with our customer base ensures the
development and production of high
performance gearboxes that excel in:
1. Quality
2. Low noise levels
3. Easy maintenance
4. Weight reduction
Today, approx. 15000 wind turbines
operate with a Hansen gearbox.
Hansen continues to invest for the
future. Since 2004 the worlds most
advanced gearbox factory with in-
house component manufacturing,
assembly and testing has provided
the world with the gearboxes of the
future.
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Washington, Texas and Illinois. But it is also expanding into
other areas. Most recently, Horizon made the news when it
won the bid in July to build a 66 MW wind project in Oregon
for Idaho Power. Horizon has 12,140 hectares (30,000 acres)
under option at the Union County site where it may
eventually develop 300400 MW.The company also is eyeing
development in New England in partnership with Linekin
Bay Energy, which has proposed a 500 MW wind farm in
northern Maine.
As it investigates project sites, Horizon looks for several
elements the right combination of wind resource,
transmission access, project size and energy prices and state
incentives. The company prefers deals that offer long-term
power purchase contracts.
It continues to be a complex business; the stars have to
line up, Skelly said.At this point, the company is particularly
bullish about wind markets in New York, Texas, Oklahoma
and Washington, although its not ruling out other areas of
the country in its search.
Horizon often partners with other companies, both large
and small. Such collaborations are a growing trend within
the industry and one more indication of its maturation,
according to Skelly.
While Skelly sees demand for wind continuing to push
growth, he also warns that the industry faces some hurdles.
President Bush wants wind power to become 20% of the
nations supply, up from 1%. However, current incentives are
likely to spur only about 50,000 MW by 2015, less than 3% of
the nations electric energy mix, Skelly says.
To get there, to get to 10% and upward, a consistent
federal policy would be helpful. And we have major
transmission issues that we need to address nationally.There
are hard choices to be made, he said.
BEFRIENDING THE NEIGHBOURS
Moreover, a growing not-in-my-backyard (NIMBY) sentiment
could seriously derail growth in the wind power sector. Skelly
is keeping a particular eye on the controversial 420 MW Cape
Wind, the nations first proposed offshore project. Boston,
Massachusetts developer Energy Management Inc. has been
trying to win approval for five years, fighting against politically
connected and wealthy property owners that live along the
New England shoreline.They include US Senator Ted Kennedy
and his family. Should Cape Wind lose this battle, the entire US
wind industry will suffer, says Skelly. The Kennedys are doing
our industry an immense disservice. Ive been at public hearing
TABLE 1. Horizon Wind Energy projects in operation or advanced development 2006
Project Name Location Size Partner Status
Blue Canyon Wind Power Lawton, Oklahoma 225 MW Kirmart Operating
Mill Run Eastern Fayette 15 MW Atlantic Renewable Operating
County, Pennsylvania Energy (now PPM)
Somerset Wind Power Somerset County, 9 MW Atlantic Renewable Energy Operating
Pennsylvania (now PPM)
Meyersdale Wind Power Casselman River Valley 30 MW Atlantic Renewable Energy Operating
Pennsylvania (now PPM)
Top of Iowa Wind Farm Worth County, Iowa 80 MW Midwest Renewable Energy Operating
Tierras Morenas Guanacaste province of Costa Rica 24 MW Energia Global, now ENEL Operating
Twin Groves Wind Farm McLean County, Illinois 200 MW 2006/2007
(formerly Arrowsmith)
Pine Tree Wind Power Kern County, California 120 MW Prometheus Energy Services Late 2007
Wild Horse Wind Power Kittitas County, Washington 230 MW Puget Sound Energy will own 2006
Lone Star Wind Farm Sheckleford County, Texas 200 MW RES under construction
Maple Ridge Wind Lewis County, New York 320 MW PPM 200 MW operating
Farm (previously Flat Rock) 320 MW late 2006
A growing not-in-my-backyard sentiment
could seriously derail growth
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The swift erection of land-based windmill
installations calls for a powerful and
versatile crane. The 600 t CC 2800-1 crawler
crane manufactured by TEREX Demag is one
of the most versatile and cost-effective of
heavy-duty cranes for the erection of wind
farms.
Theres an upsurge in the wind power
market according to recent research at the
German Wind Energy Institute, by 2014 wind
farms are expected to be generating some
210,000 megawatts (MW) of electricity
worldwide. Thats a predicted rise of
151,000 MW! Meantime, the main focus will
be on the onshore market. The challenge: to
build even more wind farms in far less
inviting terrains and in ever more limited
turnaround times.
Crane manufacturer TEREX Demag
(Zweibrcken, Germany) attaches immense
importance to onshore projects as a
developing market. For windmill erection,
the company already supplies a wide
variety of telescopic and lattice boom
cranes ranging from 100 to 1,250 tonnes
tailored to suit the needs of the market.
Customers have shown they set great store
by factors such as lifting capacity, low
running costs and versatility. All around
the globe, facilities generating 2-3 MW have
become the norm and are likely to dictate
the shape of the wind power market over the
next few years. In their efforts to draw even
more efficiency from the turbines, engineers
and designers are coming up with taller and
taller masts and improved blade shape
design. Thats why theres a great demand at
present for lattice boom equipment of
between 400 and 600 tonnes. These cranes
are especially adapted to hoist the 75-100
tonne gondolas up to the crucial hub heights
that are located between 90 and 130 meters
above the ground.
Crawler crane CC 2800-1: a 600-tonne
premium performer
An outstanding specimen of a crane to use
in erecting two and three megawatt land-site
wind farms is the CC 2800-1, which boasts a
600-tonne lifting capacity. Fitted with a 96-
meter SH/LH SGLmax main boom plus
special wind power jib LF2 12m, the crane
manages to hoist gondolas weighing up to
110 tonnes to hub heights of 100 meters
(hook height 108m). With a 102-meter main
boom of the same type, the titan takes 103
tonnes up to a soaring 105-meter hub height
(114m hook height). Using Superlift for the
heaviest of all loads, gondolas weighing 100
tonnes can even be hoisted to a hub height
towering a mind-blowing 130 meters (138m
hook height) above ground.
Total flexibility even in narrow track
To cater for the most specialised of
requirements that customers may have with
regard to a 600 tonne crane, we produce the
CC 2800-1 in a number of versions. The
standard model CC 2800-1 comes with a
standard crawler chassis, while the TC
version has an on-road chassis. Theres also
a Narrow Track version, which permits
transportation of the crane, fully rigged,
from one windmill erection site to the next
along roads that are only 5 meters wide.
Due to the fact that dismantling and re-
erection can be dispensed with, as the crane
is transported to the next site in this way, the
time thus netted can be more gainfully
invested in a substantial increase in
productivity.
In next time, a dedicated wind power crane
With a few accessory devices the CC 2800-1
can be converted and back again from
being a standard crane into a dedicated
600 Tonnes
Closer To
Wind Power
ADVERTISEMENT FEATURE
wind power crane. As a result, it can be
deployed on any type of construction site,
not only on those involving wind
installations.
Featuring among the extras are ultra-strong
intermediate segments for the main boom
system and a rigid ancillary extension, the
LF2, which is 12 meters long. These wind
power configurations, designed to
complement standard versions, provide
first-class lifting capacities and clearances
with minimum bother resulting from
transport. A further asset: resale
opportunities become a bigger cinch.
Economic double hook operation
Speed is everything. To get a rotor
assembled double-quick, using double
hooks on the CC 2800-1 provides the
money-saving answer. The rotor, including
all its blades, can be assembled as a single
unit on the ground and inched into vertical
during its ascent. This greatly cuts erection
times.
Ample hoisting power for multi-megawatt
turbines
As the leading manufacturer of lattice mast
equipment, TEREX Demag also supplies
cranes capable of erecting multi-megawatt
turbines. For instance, a CC8800 sporting a
1,250-tonne lifting capacity has been used to
put up a number of 5-MW class facilities in
the north of Germany.
Consistently the proper equipment and in
the years to come
TEREX Demag supplies the proper crane for
all types of facility. The ever-increasing
significance of wind power also harnesses
from the wind enormous energy for the
creation of optimum crane solutions. And no
matter which way the wind aims to blow in
the years ahead the ongoing supply of
revolutionary responses will rotate to meet
precisely what the market demands.
Terex-Demag GmbH & Co.KG
Christian Schorr-Golsong
Director Marketing
Phone: +49 / 6332 83 1738
Email: Christian.schorrgolsong@terex-demag.com
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where people say, My home is special too. If the Kennedys
dont have to look at turbines, why do I? Why is the Kennedys
deck more important than my deck?
Unlike some of its competitors, Horizon Wind does not
shrink from such battles and will pursue projects in
communities that are less-than-hospitable to wind, according
to Skelly. We realize that sometimes there will be spirited
debate around the merits of a particular project.We are willing
to have that debate. At the same time, if a project truly could
pose harm to birds or the local environment, the company says
it will not pursue development.
One way that Horizon tries to become a good local
neighbour is by building projects that meld with the native
architecture and landscape. For example, at its 80 MW Top of
Iowa Wind Farm in the rural farming region of Worth County,
Iowa, the company houses its administrative offices in a
recycled barn. A Supervisory Control and Data Acquisition
(SCADA) monitoring system replaces what was once the
hayloft. Horizon moved the 80-year-old barn to its site from a
hog and grain farm about six miles away.The developer wanted
a structure that reflected the pastoral beauty of the region,
something a pre-fab steel building could not do.
In fact, Horizons track record of successful community
relations was one reason why Goldman Sachs acquired the
ABOVE Key to Horizons success has been its pre-ordered supply of wind turbines. This
has allowed it to expand at a time of increasing turbine shortage RIGHT The Maple
Ridge Wind farm in New York State
We realize that sometimes there will be
spirited debate around the merits of a
particular project
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company, according to Alan Waxman, managing director of
Goldman Sachs & Co. Responsible development is mission
critical. If negative perceptions come out about this industry, it
is going to significantly hamper growth, he said at the American
Wind Energy Association conference in June.
But smart public relations alone cant drive Horizons
growth. The company made an astute play in securing a large
supply of turbines. While competitors find themselves caught
short by a manufacturing backlog in some cases postponing
or even cancelling projects Horizon has the inventory to
move forward.
Along with a new CEO and other new hires to strengthen
the teams execution capabilities, a key aspect of Horizons
strategy moving forward will be its turbine position, said EERs
Hays. With 1400 MW of turbine orders in hand, Horizon
benefits from the North American shortage. It can use its supply
to pursue acquisition opportunities with turbine-deprived
developers, as well as improve its ability to acquire projects
from players looking to develop and sell.This puts the firm on
par with larger wind IPPs such as FPL and PPM that aim to
source turbines for their multi-gigawatt pipelines, giving
Horizon a competitive advantage over other smaller
independent players.
Given this position, it is little surprise that Goldman Sachs is
nothing short of passionate in Waxmans words about its
newventure into wind. He sees exponential growth ahead.And
Horizon is poised for the journey.
Elisa Wood is US-based writer on energy issues
e-mail:rew@jxj.com
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SOLAR COOLI NG Keeping cool
Solar cooling has been
around for a long time, but
the recent development of
smaller and more flexible
systems is encouraging greater
take up of this technology, while
higher energy prices are improving
its economics. Alasdair Cameron
takes a look at some recent
projects.
E
lectricity for air-conditioning and cooling is already a
major energy requirement in some Asian countries and
the US, and demand is increasing rapidly in Europe, the
Middle East and emerging nations such as India and
China.As summers get hotter and demand for comfort
increases, an alternative to conventional air conditioning must
be found in order to avoid a massive increase in demand for
peak power, and its associated greenhouse gas emissions. Solar
cooling has the potential to provide a usable low-carbon
solution, particularly for large systems (>50 kW), with the
added bonus that the solar resource is greatest when demand
is highest.
Solar air-conditioning units use the suns heat to drive one
of two cooling cycles (either thermally driven absorption
cycles or desiccant cooling systems). Detailed descriptions of
these systems can be found elsewhere, but a basic outline can
be found below. The important point is that these thermally
driven systems work in exactly the same way whether they are
powered by solar heat or conventional means it is simply the
heat source that changes. Heat from renewable sources is
usually supplied as hot water, with the heat demands of the
cooling system dictating which type of solar collector is
needed. Lower temperature systems (around 6080C) can be
run from standard evacuated tube and flat plate solar thermal
panels, while higher temperature systems (>150C) can be run
from roof-top concentrating solar thermal systems.
These thermally driven systems work in the
same way whether they are powered by solar
heat or conventional means
Evacuated tube solar collectors used for cooling system in Freiburg FRAUNHOFER ISE / ESTIF
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Keeping cool
Solar air-conditioning
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So far, development of solar cooling has been hampered by
several factors, including a lack of small-scale chillers which
could be used for domestic systems, the size of the solar
collector area required, the need for cooling towers (or other
heat sink) which can make some systems impractical in small
developments, and, finally the high capital cost of installing
solar cooling systems. However, improved technology and
rising fossil fuel prices are improving the conditions for solar
thermal and there is a sense of growing excitement
surrounding this emerging renewable technology.
COOLING SYSTEMS
In general, air-conditioning (AC) units which can
use renewable heat have four main components.
Firstly they must possess a heat source to drive
the chiller. This may be a biomass boiler, a
cogeneration plant or a solar collector. Secondly,
the AC system must have a chiller which runs on
heat to produce cold water which will be used
to cool the air. The third stage is a means to get
the cooling power to where it is needed. This
can be achieved with fan coils (where warm air
is blown over cold coils, causing it to cool),
cooling beams, cool panels, central ducts or some other
system. Finally, large solar cooling systems must contain a
heat sink, to dispose of the excess heat removed from the air.
This may be a cooling tower, borehole, swimming pool or a
dry re-cooling system.
Thermally driven chillers
There are two main types of refrigeration technologies which
are used for building air conditioning systems electric vapour
compression systems (which use Freon
or similar
compounds), and heat-driven absorption cooling devices. Since
these absorption cooling systems can be driven by steam or
hot water (or indeed a fossil fuel burner) they can be powered
by solar thermal installations. Within the absorption chillers,
the two most common kinds of refrigerant cycles are lithium
bromide/water and ammonia/water, which have lower
temperature limits of 4.4C and -6.6C respectively.
The main provider of absorption chiller equipment for
use with solar thermal cooling is Yazaki of Japan, which has
supplied systems for many solar thermal cooling installations,
including the Schwarzenegger Stadium in Austria, the newly
rebuilt EAR Tower in Kosovo and a residential development in
Tampa, Florida. Other companies which provide chiller
equipment include Climatewell, EAW and Thermax.
Interestingly some of these companies have begun to
produce small systems less than 30 kW EAW has introduced
a 15 kW dessicant cycle machine, while Climatewell is
currently bringing its 10 kW dessicant system onto the
market. Even smaller, Spanish company Rotartica is entering
the market with a 4.5 kW system designed for domestic
air-conditioning.
SOLAR COLLECTORS
Along with a heat-driven chiller, the next essential piece of
equipment in a solar cooling system is a solar thermal heat
source. These can roughly be divided into those delivering
relatively low temperature heat (mainly standard solar thermal
panels, like those used for domestic water heating) and systems
which produce high temperature steam. The latter use
concentrating solar technology and are most suitable in
industrial applications.
Solar thermal collectors
The technology involved in these solar thermal systems is
relatively simple, with two main types of collectors. Flat plate
collectors are glazed, insulated panels containing an absorber
surface which converts sunlight into heat. This collector is
connected via a flow and return copper pipe to a
heat exchanger in the hot water cylinder. Flat plate
systems generally provide hot water at 6070C, and
so are traditionally less common in solar cooling
applications than evacuated tube systems.
Nonetheless, they are being used successfully in
some systems, including on a 70-bed hotel in Bavaria
(installed by Conergy in 2004), or on the roof of the
CitrinSolar factory (see below).
The second main type of solar thermal collector
is the evacuated tube. These consist of a series of
tubes, each containing an absorber and a pipe
surrounded by a vacuum. The vacuum is generally
better at insulating the water than standard insulation, allowing
higher temperatures to be reached than in flat-plate systems.
For this reason evacuated tubes make up the majority of solar
thermal systems for low-temperature cooling applications,
including the system on the Renewable Energy House in
Brussels (see below).
Concentrating solar thermal collectors
Some chiller systems require hot water at a higher temperature
than can be provided by the conventional systems mentioned
above. In these cases, small concentrating solar thermal devices
ABOVE A small 4.5 kW absorption cooler. The arrival of smaller systems is likely to
improve the take-up of solar cooling ROTARTICA BELOW Concentrating solar collectors
power the cooling system on a house in Tampa, Florida HELIODYNAMICS
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may be used, installed on roof-tops or on nearby land. These
generally resemble small parabolic troughs and use mirrors to
reflect sunlight onto a central receiver containing a mineral oil.
This heats up to very high temperatures which then passes
through a heat exchanger to produce hot water or some other
heated liquid. Because of the high temperatures systems such
as these can achieve, they are favoured for some cooling
applications, particularly large industrial systems.
In the US, Solargenix is the main provider of this
technology through its PowerRoof system. The first Power
Roof was installed in Raleigh, North Carolina in July 2002, and
was capable of providing 176 kW of cooling power.The Power
Roof is a curved (not quite parabolic) collector which focuses
onto a central receiver, achieving temperatures of up to 350C.
Other providers of CSP technology for heating and
cooling applications include Solel, SOLITEM and
Heliodynamics. As will be mentioned later, many of these
systems are fully integrated CHP stations, generating heat,
electricity and cooling (tri-generation).
PROJECT EXAMPLES
By the middle of 2005 there were more than 70 solar thermal
cooling systems operational in Europe, and several more
installed worldwide, including the US and Japan. The lead
countries continued to be Germany and Spain (see Figure 1),
and although most systems were large installations designed
for use in factories, hospitals and offices, there are an
increasing number of smaller systems being trialled across
the world, as well as the usual industrial systems.
EAW 15 kW trial projects in Germany
At the lower end of the scale (<30 kW) there has always been
a lack of absorption chillers available that could run on hot
water (the smallest unit made by Yazaki is 30 kW). One of the
A 70 kW chiller system in the Fraunhofer ISE building in Freiburg FRAUNHOFER ISE / ESTIF
There are an increasing number of smaller
systems being trialled across the world
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main effects of this has been to stifle the development of solar
air-conditioning as it has only been available to larger users.To
fill this gap, several small systems are being developed,
including a 15 kW water/lithium bromide absorption chiller by
EAW and the Institute of Air-Conditioning and Refrigeration
based in Dresden (ILK). So far nine systems have been installed,
each with a different primary heat source, of which several are
being monitored by the ILK (Table 1).
The first of these was installed in Moosburg in the south of
Germany and uses flat-plate thermal collectors and a wet
cooling tower, the second uses evacuated collectors and a dry
re-cooler, while the third uses the waste heat of a small co-
generation unit (a tri-generation system).
The Moosburg system is installed on the roof of the
CitrinSolar building, a manufacturer of flat-plate solar
collectors. Altogether the building has 89 m
2
of solar thermal
collectors, of which 42 m
2
are used for solar thermal
applications, along with a 27 kW biomass back-up boiler. Since
the system was installed in summer 2005, it has been
continually monitored and appears to be performing well,
providing an average of 10 kW of cooling power.
The second of the systems was installed on the ILK
building in Dresden and used 42 m
2
of evacuated tube solar
collectors from Schott. Since this system was only recently
installed there is not yet good information on how well it is
performing.
Renewable Energy House
The new Renewable Energy House in Brussels, Belgium is a
good example of state-of-the art integration of renewable
energy technologies in a less than ideal setting. As the
headquarters of the European Renewable Energy Council,
the building contains a large number of renewable
technologies, one of the most interesting of which is its
heating and cooling system. In addition to its 42 kWth solar
thermal collectors (comprised of 30 m
2
of evacuated tube
collectors from Thermomax and 30 m
2
of high performance
flat-plate collectors from SOLID), the building has an 80 kW
Keeping cool SOLAR COOLI NG
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Germany
41%
Greece
9%
Spain
27%
Israel
1%
Turkey
1%
Serbia (Kosovo)
1%
Netherlands
3%
France
6%
Italy
4%
Austria
3%
Portugal
4%
FIGURE 1. Distribution of solar thermal systems in Europe and
Mediterranean (June 2005). Source: Presentation by Hans-Martin Henning,
published in the proceedings of ESTEC 2005
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biomass boiler and a 25 kW ground source heat pump,
linked to 115 metre bore-hole. While the biomass boiler and
heat pump are used to provide heating in winter (with
support from the solar thermal), in summer, almost the entire
cooling system is run by the solar thermal panels, through a
37 kW thermally-driven absorption cooler from Yazaki. This
machine uses relatively cool (80C) hot water which can be
easily provided by the solar system. While most cooling
systems of this type require a cooling tower to allow the
release of excess heat, the location and design of the
renewable energy house did not make this feasible (it is an
old, architecturally important building, surrounded on both
sides by much taller offices). Instead, excess heat is stored in
the bore-hole, which is prevented from year-on-year
overheating by heat extraction in winter.
Small cooling systems grow in Spain
Spain is emerging as one of the key markets for solar thermal
cooling systems, thanks to its high insolation, need for
cooling and favourable political environment for
renewables. Furthermore, the recent introduction of the
solar thermal obligation may have a positive impact, as
buildings which already have solar collectors installed could
be more likely to then install solar-driven chillers.
The last couple of years have seen some exciting
developments, as smaller, 4.5 kW systems have been
developed for domestic systems. These use LiBr desiccant
chillers supplied by Rotartica. Since 2005, five such systems
have been installed, along with several other larger air-
conditioning systems.Table 2 shows a comprehensive list of
the major projects which have been developed in Spain over
the last five years. In all but one of the examples listed in the
table, solar cooling is used to provide air-conditioning. The
exception is the Fontedosa plant, in which the cooling is
used for industrial applications.
From 20062008 several new applications are planned,
including a group of five new buildings which will form part
of the Arfrisol project. Funded by the Spanish Ministry of
Science and Education and led by CIEMAT, the aim of this
scheme is to build demonstration projects using
photovoltaics and solar thermal to achieve buildings that use
TABLE 1. EAW small capacity solar thermal cooling systems on trial in Europe. Source: EAW
Location Absorption chiller Heat source Recooling Cold water use
Koethen, Germany Wegracal SE15 CPC-evacuated tube Wet open cooling tower Cooling of office
collectors, 77 m
2
space; gravity
cooling system
Westenfeld, Germany Wegracal SE 15 Flat plate collectors and Wet open cooling tower Room cooling with
cogeneration unit fan coils
Bad Schandau, Germany Wegracal SE 50 Flat plate collectors and gas Wet open cooling tower Cooling of exhibition
burner back up spaces, cooling panels
Ingolstadt, Germany Wegracal SE 15 Flat plate collectors, 30 m
2
and
cogeneration unit; experimentation
and demonstration plant
Limenau, Germany Wegracal SE 15 Flat plate collectors, electrical
heater; experimentation and
demonstration plant
Moosburg, Germany Wegracal SE 15 Flat plate collectors, 42 m
2
Wet open cooling tower Cooling of office
space, fan coils
Eppan, South Wegracal SE 15 Flat plate solar thermal Wet open cooling tower Room cooling, radiant
Tyrol / Italy collectors, 150 m
2
cooling panels
Sattledt, Austria Wegracal SE 15 Flat plate solar thermal collectors Wet open cooling tower Room cooling, radiant
cooling panels
Dresden, Germany Wegracal SE 15 Evacuated tube collectors, 45 m
2
Closed loop dry cooler (fan coil) Cooling of
experimentation
hall, fan coil
Spain is emerging as one of the key markets
for solar thermal cooling systems
This system combines solar thermal and photovoltaic technology to generate heat,
cooling and electricity HELIODYNAMICS
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only 10%20% of a standard construction. In all cases, these
demonstration buildings are expected to use Climatewell
chillers provided by Grupo Solar SA.
JTC factory in Singapore
One of the larger, commercial-style of solar air-conditioning
plants, the 200 kW de-humidification system installed on the
roof of a JTC factory in Singapore represents an interesting
use of solar air-conditioning mixed with conventional
cooling. Powered by 570 m
2
of flat plate solar collectors this
system helps de-humidify air which is then cooled using a
conventional (electrically powered) vapour compression
unit. Interestingly, the designers of this system had originally
envisaged using an on-site gas turbine to provide heat, but
were forced to change their plans when the local utility said
that an appropriate gas supply would not be available in
time. Solar thermal provided a reliable fall back.
Concentrating solar thermal systems
Although not yet widespread there are a number of solar
cooling installations which use parabolic trough or other
concentrating solar thermal power solutions. Because these
systems can generate very high temperatures they may also
be used to generate electricity (by using steam to drive a
turbine) as well as heating and cooling.
US-based Solargenix is one of the principal companies
offering this technology for use in cooling applications and
has installed systems on a number of buildings, including its
first system which was installed on an office block in Virginia
in late 2002.This system provided 176 kW of space cooling,
along with heating and domestic hot water. The troughs
were installed on the roof of a parking lot next to the Parker-
Lincoln building. More recently Solargenix has been focusing
on large-scale parabolic trough systems for electricity
generation, and opened its first 1 MW plant in Arizona early
in 2006.
Heliodynamics is another US company which uses CSP
for cooling applications. Its Harmony system uses mirrors to
TABLE 2. Major solar cooling installations in Spain over the last 14 years. Source: Joan Charles Bruno published in the proceedings of the OTTI
Solar Air-Conditioning conference, Freiburg 2006.
Institution Town / District Year Solar collectors Chiller
Viessmann offices Pinto 2001 FPC 105 m
2
+ ETC, 6 m
2
105 kW
Engineering school Sevilla 2001 FPC, 151.2 m
2
Yazaki 35 kW
Hotel Laia Derio 2002 FPC, 173 m
2
105 kW
CARTIF Valladolid 2002 FPC 37.5 m
2
+ ETC 40 m
2
Yazaki 35 kW
Sport Centre Madrid 2003 ETC 740 m
2
170 kW
Factory Inditex Arteixo 2003 FPC, 1626 m
2
Carrier, 147 kW
Senior residence Navarra 2003 ETC, 149 m
2
105 kW
Crever-URV Tarragona 2003 ETC, 96 m
2
Yazaki 35 kW
Fontedoso SL Avila 2003 ETC, 504 m
2
Yazaki 35 kW + Yazaki 70 kW
Stella-Fuega Santiago de Compostela 2003 FPC, 63 m
2
115 kW
Centro Clara Campoamor Baracaldo 2004 FPC, 163 m
2
229 kW
Education Dept. offices Toledo 2004 ETC, 175 m
2
250 kW
Fabarica del Sol Barcelona 2004 ETC, 175 m
2
Yazaki, 105 kW
Fundacion Mteroploi Madrid 2004 ETC, 72 m
2
Thermax 80 KW
CENER offices Pamplona 2005 ETC, 240 m
2
Thermax, 350 kW
Edificio Trasluz Madrid 2005 ETC, 204 m
2
390 kW
Isofotn offices Malaga 2005 ETC, 230 m
2
Yazaki 35 kW
Ikerlan Vitoria 2005 FPC, 20 m
2
Rotartica 4.5 kW
Fagor Electrodomesticos - 2005 FPC 28 m
2
+ ETC 21.4 m
2
2 x Rotartica 4.5 kW
Rotartica SA Basauri 2005 FPC 30 m
2
+ 25 m
2
+ 20 m
2
3 x Rotartica 4.5 kW
Gamesa Solar Tarragona 2006 FPC Yazaki, 35 kW
Tknika, Education Dept Renteria 2006 FPC, 20 m
2
Rotartica 4.5 kW
of the regional government
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concentrate sunlight on a central set of photovoltaic cells.
These produce electricity, while water pipes behind the PV
take away waste heat which is used to drive the absorption
cooler. A stripped down version is also available which
bypasses the PV section and directly heats the water.
Currently Heliodynamics is commissioning its first 10 tonne
(~35 kW) cooling system in Tampa, Florida.This project will
be followed by others in California and New Mexico, after
which the company hopes to establish demonstration sites
in Spain for the Southern European, North African and
Middle Eastern markets.
In Europe, German-based SOLITEM GmbH has developed
a parabolic trough collector capable of generating high
temperature steam for heating and cooling and electricity
generation.The first of these systems was installed on a hotel
in Dalaman, Turkey, and has been successfully operating
since 2003. This system produces high temperature steam
(180250C) which is used to drive and absorption chiller
for air-conditioning.The economics of this system are helped
by the variable price tariff for electricity in Turkey,
depending on the time of day (peak hours are 5pm to
10pm). In the future, SOLITEM looks to expand in the
Mediterranean region, looking to markets with high direct
sunshine.
ECONOMICS
Currently the major obstacle to the greater uptake of solar
cooling technology (aside from the inconvenience of not yet
having off-the-peg small household units) is the
comparatively high capital costs associated with installing
these systems.As energy prices continue to rise however, the
economics of solar cooling can only improve and in some
cases, industrial and commercial projects are already viable,
particularly where waste heat is already being produced.
CONCLUSION
The fact is that solar cooling works, and while it may
currently lack the convenience of small compressor units,
the increasing emergence of small systems for domestic use
can only improve the ease of take-up. As domestic PV and
solar thermal systems become more commonplace,
opportunities will emerge for increasing integration of
renewable heating, cooling and electricity systems. Such an
integrated approach (particularly if applied to new build
housing) would help to reduce the costs of these systems
and bring about a new way of thinking in home energy use.
Alasdair Cameron is Assistant Editor of Renewable Energy World
e-mail: rew@jxj.com
Keeping cool SOLAR COOLI NG
As energy prices continue to rise, the
economics of solar cooling can only improve
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Fresh ideas needed PHOTOVOLTAI CS
For the last twenty years, the donor community has been promoting
off-grid PV as an essential part of the African development programme,
but with limited success. New models of how to develop PV are needed,
says Mark Hankins, including a new way of thinking from both donors and
governments, that views on-grid being as important as off-grid.
W
hile attending a marketing seminar of a major PV
company I was struck by a graphic showing
recent world PV demand growth. Graphs show
sharply rising sales in Europe,America, Japan and
China but African sales dont even register. In
the early days of PV market growth, Africa was an important
market and there was much talk about how PV would help
solve the low access to power throughout rural areas of the
continent. Ten years later, Africa does not even feature in PV
marketing executives world view and we are no closer to
widespread electricity access, PV or otherwise.
In 1995,Africa accounted for about a quarter of the annual
75 MW world PV demand. Many of us in the PV sector then
thought, with a degree of confidence, that Africas place in the
market was secure. Since then, world demand for PV has
skyrocketed to over 1500 MW per year, while PV demand in
Africa has remained virtually stagnant. In fact, the demand for
off-grid PV systems has not grown substantially, few national PV
programmes have taken off and, with the exception of the
telecoms sector (which is thriving), the PV sector in Africa has
become less and less interesting to international players and
the private sector in general.
Why has PV in Africa been such a non-success? Several
reasons are proposed below, which have to do with the
strategies, policies, multilateral projects and use of incentives
for PV in Africa. In this article, some of the key decisions -
made by donors and governments that affected the PV
industry in Africa are questioned. For example, why has
development of PV in Africa been limited to the off-grid sector
only? Why have PV initiatives in Africa been so closely tied to
poverty alleviation? Why have PV subsidies been largely
disallowed, when it can be shown that they are the key to
growth everywhere else in the world?
Might there be a better approach to the development of
Africas PV market? Just about any supplier even those
enjoying the billions of dollars pumped into northern
countries on-grid programmes each year will agree that
eventually Africa must be an important market. Investment in
real growth strategies makes sense but we havent seen a
successful strategy yet.
PV PROMOTED EXCLUSIVELY FOR OFF-GRID RURAL
ELECTRIFICATION
While grid-connected PV has dominated sales in developed
countries, with annual installations in the hundreds of
megawatts, in Africa the marketing focus has remained almost
exclusively on small off-grid, stand-alone systems especially
the 50 Wp solar home system (SHS).Yes, PV has much to offer
the rural electrification strategies of Africa. On a continent
where electrification rates are typically less than 10%,
providing any form of power for rural people is of interest.
Since the early nineties, international policy makers and
energy planners (this writer included) promoted PV as a first
step to rural electrification. But PV was never a substitute for
the grid, and power planners and consumers were not as
enthusiastic about 50 Wp systems as the donors, multilaterals
and NGOs.
There are on the order of 80 million plus rural families off
grid in rural Africa a huge market, it would seem.
Nevertheless, in 10 years, the PV industry hasnt penetrated
more than a half percent of this market. There are only a few
hundred thousand SHS installed in Africa, and the yearly uptake
has not been impressive. Few large PV companies are overly
excited about prospects, and they have been unwilling to
invest in infrastructure for delivery of PV to off-grid areas.
Without incentives, should they be expected to?
In the few places where the PV SHSs have been moderately
successful (Kenya, Morocco, Zimbabwe), PV markets operate in
an informal manner outside of project, government or power
company control. Like bicycles and gen-sets, PV systems are
sold over the counter. Although this private sector market
might be the preferred approach, it is often accompanied by a
downward spiral in quality and performance. Simply put, rural
Fresh ideas needed
Building the PV market in Africa
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poor cannot afford to buy full systems, so they buy
components. Their systems are not designed they are
budgeted for and the poor performance of thousands of
slipshod systems does not help the reputation of the
technology.
Therefore, for an expensive technology, the off-grid rural
poor market segment poses challenges that thus far have not
been surmounted. Rural spending power is quite limited.
Although the cellular phone boom provides hope that PV SHS
markets can be expanded on the continent, the
expansion into the rural household market is not
happening fast enough.
LACK OF GOVERNMENT POLICY, TARGETS AND
INTEREST
The spectacular growth of the PV industry in the
North has come as a surprise even to Europeans
and in Africa, governments still do not have PV on
the radar. For most, PV has been a donor thing, not
something that has a real role in overall energy or
electricity sector planning. Even for off-grid PV,
donors are usually the champions PV has not
been taken seriously at policy levels. In
government ministries, the few PV rural
electrification projects that have been set up are
rarely target-oriented, and are often managed in
ways that give players little transparent access to the funding
available in fact very little funding actually installs
equipment.
South Africa is one of the few countries that attempted
(and that can afford) a large-scale subsidized introduction of
PV systems. In the ten years since Mandela was elected,
South Africa doubled grid access from 35% to almost 70%
with more than a billion dollars of subsidized electrification.
But, as all PV marketers know, it is increasingly expensive to
reach the off-grid rural communities. Therefore, in the plan,
those areas too far from power lines were supposed to get
subsidized PV systems.
At the launch of the programme six years ago, off grid areas
were divided into seven concessions. These areas were
tendered to large commercial players, which each got
exclusive control of their concession, and access to
government subsidies amounting to well over half the cost of
each 50 Wp system.
But South Africas concession approach has not lived up
to its promise of quickly providing hundreds of thousands of
PV systems, and red tape has slowed the roll-out of the
project to a trickle. Unexpected backlashes put a brake on
what was initially touted to be the largest PV initiative in
Africa. First, systems were often rejected by consumers who
expected much more than 12 volt power.The 50 Wp one size
fits all offering to politically-aware consumers expecting AC
power didnt go down well. Secondly, PV company
concession exclusivity killed any incentive to compete that
the companies might have had. In fact, South Africas once-
thriving private sector PV SHS market has been destroyed by
the introduction of the concession system.
In many ways, South Africas PV experience illustrates the
problem of PV and rural electrification in sub-Saharan Africa.
Back in 1980, many African governments proclaimed that 80%
would have access to grid electricity by 2000. Of course, this
did not happen. In 2006, many of the same governments are
pushing forward the same unattainable goals to 2020.
Practically speaking, no government will stand up and tell
voters that they will not be supplied with real electricity
and that they must settle for low output PV systems.
1
Moreover, because the target is always to expand the grid
universally, policy makers are not interested in off-grid PV as a
tool except in far-flung marginal remote locations. In short,
PHOTOVOLTAI CS Fresh ideas needed
PV System in a tented camp in Kenya. For building the industry, promoting PV for
productive uses like tourism may be as effective as providing PV for poor households
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unrealistic promises of grid power work better for politicians
than limited 12 volt power today. Although PV may work in
a technical sense, it is suicide in a political sense.
For the most part, permanent secretaries, government
ministers and utility CEOs intent on extending wires see
little role for 12 volt PV systems; for them, at best, it is a
second-class technology for the rural poor. Unaware of the
rapid advances PV is making on-grid around the world,
senior planners are preoccupied with the pressing problems
of managing decaying national electric grids, using
conventional solutions such as hydropower and thermal
stations. They do not have enough resources (financial or
human) to innovate or find creative uses of PV even
though PV can make substantial contributions to RE,
distributed supply solutions and local supplies where the
grid is fragile.
PV is seen as weak technology with no potential for
national supply. With this status quo, there is little high-level
interest in the technology or its potential future role in
solving national electricity problems, on or off grid.
POORLY IMPLEMENTED CAPACITY-BUILDING DONOR
PROJECTS
As of 2005, there is relatively little to show for the
investment of over US$100 million in PV in Africa from
multilateral donors such as the Global Environment Facility
(GEF), the UN or the World Bank over the last 10 years.
Although, failure of PV projects is linked to development
failures in Africa in general, there are some fundamental
project issues that need to be re-thought.
In the mid-1990s, the GEFs operational units, the World
Bank and UNDP, began designing a number of PV projects
throughout the continent. Using GEF funds, the UN launched
national PV efforts in Zimbabwe, Ghana, Uganda, Malawi,
Lesotho, Namibia, Tanzania and elsewhere. The World Bank
and IFC used GEF funds to build PV into energy programmes
in Kenya, Ethiopia, Mozambique, Zambia and Uganda.
From day one, capacity-building and barrier removal
were the guiding mantras of GEF-supported PV projects in
Africa. The theory of barrier removal was that renewable
energy technologies, such as PV, wind or micro-hydro, would
be viable if certain key barriers were removed so that they
could enter the marketplace. What was needed, said the
economist project designers, was elimination of these
barriers so that renewables could compete on an even
footing. For PV, high investment costs, low awareness, lack of
technical skills and capacity were seen as the chief barriers.
So GEF funding, channelled through government, ended up
funding activities that it was hoped would remove these
barriers. In reality, most of the funds supported international
workshops, vehicle purchases, development of standards and
codes of practice, hiring of project managers and consultants,
development of financing mechanisms and a whole range of
awareness raising activities, while comparatively little was spent
A small business in Tanzania uses a solar system looted from a project in Mozambique
Removal of barriers does not necessarily
mean that the private sector will enter the
sector or that investments will occur
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on actual installation of equipment. In fact, to date, much of the
allocated money hasnt even been spent! In hindsight, it can be
seen that removal of barriers does not necessarily mean that the
private sector will enter the sector or that investments will occur.
Those interested in why PV markets have not expanded in
Africa might want to analyse some of the major project efforts
that were supposed to stimulate markets (these projects are
tiny by international standards!). The four examples below
provide a litany of failure and there are many more:
A $5 million 1995 UNDP GEF project in Zimbabwe resulted
in the PV marketplace growing from four to over 60
companies overnight. After the project, most of the
companies fell out of the market, and the revolving fund set
up was quickly depleted and closed down.
The $5 million 1998 IFC PVMTI project in Kenya sought to
make PV financing funds available to banks and PV
companies and thereby transform the market. Even at the
projects concessional rates, PV companies and banks were
not interested in the loans. In a market where 15,000
systems are sold per year commercially, less than 500
systems have been installed by the PVMTI project.
A multimillion dollar 2003 World Bank GEF effort to expand
the PV market in Ethiopia, offered as part of a $120 million
dollar energy sector loan, was designed by consultants and
handed over to a government department that did not have
the capacity to execute the project. No systems have been
installed thus far, but the project is on the GEF website and
listed as an active project.
The Solar Development Group was a $45 million GEF/IFC
development and investment programme aimed at
accelerating private sector reach into rural areas. Aimed at
developing country markets, it made several million dollars
of investments and grants to PV companies in East Africa,
with a relatively small impact. It had trouble finding
companies that were interested (or could qualify) for the
loans. Eventually its portfolio was handed over to a Dutch
bank.
In the aid business, nobody likes a muckraker.Typically, we
say little about the failures and simply move on to the next
project. We try to learn, but we also have relatively short
memories and in time we just get on with it. The danger,
though, is that we get cynical, and begin to believe that the ideal
i.e. development of the PV market is not possible.Africa isnt
ready for it or The continent is too poor.
Among the projects completed in the last decade, there
were a lot of good ideas on how to build markets, but there
wasnt really that much money and there was even less
commitment to make things happen. The lag time and
resulting inertia between the initiation and the execution of
good ideas often prevented the private sector from
participating. PV company directors in Africa will tell of days
spent meeting and working with project designers and
managers in vain hope that they could make something
happen.Too often, projects were designed and handed over to
entities, such as small government departments, that could not
possibly execute them. Too often, the well designed projects
were a waste of time in the end because the local willingness,
policies, or capacity to execute simply was not there.Too often,
the private sector was not concretely involved in projects.
Often, donors did not take responsibility for their funds.
Multinational organizations simply went ahead with the
business of implementing projects because (as in the case of
the World Bank) they are green window-dressing for much
larger loan packages or (in the case of the UN) they are part of
a political process of doling out internationally agreed funds.
Even the most enthusiastic government officials, consultants or
PV companies were thwarted by GEFs faceless bureaucracy,
committee decision-making and paperwork of the long project
approval process.
LACK OF SUBSIDY AND INCENTIVES
Nevertheless, the most important single reason for PVs lack
of progress in Africa is the lack of incentives for companies
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The danger is that we get cynical, and begin
to believe that the ideal is not possible
Every gimmick imaginable to build markets
has been incorporated into multilateral
projects. But not subsidies.
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and consumers. The phenomenal growth of PV in Japan,
Germany and elsewhere is almost entirely due to incentive
support and policy drivers that come from governments.
For Africa, the GEF the largest single investor in PV has
said that subsidy is forbidden in its projects. From the
beginning, this was the rule. Elaborate financing and
guarantee mechanisms have been designed, pilots have been
executed endlessly, new marketing methods have been
introduced and productive uses have been proposed. Every
gimmick imaginable to build markets has been incorporated
into multilateral projects. But not subsidies.
Without subsidy of the type that has stimulated western
markets, it is impossible to expect rural African markets to
start buying PV on even modest scales. If the rich in the
North i.e. people that can afford 2 kWp systems can only
be convinced to buy if there is a subsidy on offer, how can the
poor in remote households be expected to pay the full price?
Moreover, how can PV companies be expected to invest huge
amounts of money to set up infrastructure to sell one 50 W
module at a time in remote villages when they can sell them
by the thousand in Germany?
A lack of subsidy for African PV is not the GEFs fault.The
decision not to subsidize was a political one made at an early
stage by people who agreed that subsidies messed up
markets. All along, we knew that the GEF did not have the
hundreds of millions of dollars needed to really affect change
in the sector. In any case, the 4th phase of GEF funding will
have much less support available for PV, so GEF will no longer
be a major supporter of the industry in Africa.
Government rural electrification funds which might have
subsidized thousands of systems have not been made
available for PV. In most countries, there is not even enough
funding for grid electrification. Existing resources are too
scarce to extend the hundreds of kilometres of 30 kV lines
required, and renewable energy departments didnt want to
split funding with PV companies.
2
Finally, from the overall needs perspective, PV as a
technology has never been a priority.Alleviation of poverty is
the big theme. In the development community, there are
many who believe that PV has received too much
development assistance already. In a continent where health,
shelter, education, water, income generation and other basic
human needs are so poorly served, it is difficult to make a
direct case for PV.
Still, when Germany, California and Japan invest billions in
PV places with hundreds of times more kilowatt hours per
capita than Africa and scarcely half the solar radiation doesnt
the idea of building the Africa PV market make a kind of moral
sense? Of course it does! PV must play a role in the future of
Africas power supply.The question is: How to do it.
REAL NICHES FOR PV IN AFRICA
Unlike Germany or Japan, few (if any) African countries have
had a coherent plan or strategy for the PV sector. PV in Africa
has always been a small-project led affair, without long-term
champions or deep-pocketed supporters.As mentioned above,
national governments do not have serious interest, except
where rural electrification wires cant reach. The sectors that
matter the private and utility sectors are almost universally
unaware and unwilling to invest in PV.
Perhaps the focus on PV for rural electrification only has
been detrimental to development of African PV markets,
because it has taken the focus off and diverted resources
from other viable and important PV markets. While grid-
connected growth worldwide has outstripped off-grid PV
market growth, similar important and strategic niches for grid-
connect PV in Africa have been left ignored and undeveloped.
Nevertheless, growing PV production and falling costs
will eventually reach Africa and new niches will surely
develop.As these niches develop, key stakeholders in African
power markets, including utilities, mainstream government,
regulators, consumers and the private sector who
presently view PV only as a tool for off-grid electrification
will become more interested in the PV technology.
Those companies and investors interested in the future
of PV in Africa need to prepare themselves. Of course the off-
grid market is the first place to watch. But other markets will
develop, especially in countries like South Africa and
Namibia, where such investments can be afforded.
Although much of the potential impact of PV remains in
small off-grid systems (SHSs), there is considerable potential
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Perhaps the focus on PV for rural
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for use of PV in more elaborate off-grid systems. Therefore,
when considering how to roll out PV for off-grid areas,
planners should start expanding their horizons beyond the
rural poor alone. Maximizing access means looking at the
public sector (as the World Bank is currently doing in a
number of countries with projects that install PV in clinics,
schools and pumping stations) as well as the private sector.
Tourism, small business, telecoms and agriculture would
invest in PV if provided with the necessary incentives (and
capacity building). It may be that support for larger off-grid
community and business-serving systems may have more
impacts than SHS systems.
If on-grid PV makes sense in countries where there is
excess power, then surely PV makes sense where grid power
availability and fluctuations are a problem. In places like
Kampala, Dar es Salaam and Nairobi, businesses and
households go without electricity for days on end, and
consumers are faced with long waits for grid extension due to
low grid capacity. Today, there are tens of thousands of
inverter/battery back-ups installed in east African cities where
power supplies are fragile. Addition of PV arrays to such
systems would be seen as a viable investment by many
customers. In power-starved countries, a grid-feeding PV
system, funded by consumers, is of interest to the power
company, however small the overall PV capacity. Moreover,
investment in large on-grid PV systems will build PV industries
and have a positive effect on PV availability in the countries.
Despite clear opportunities for PV on the grid in Africa,
there are very few examples of on-grid PV in Africa (Namibia
and South Africa have initiated some projects).This is because
of a lack of policy support, perceptions among key
stakeholders that PV is not viable on-grid (costs, legal), short-
term reactive planning that does not include distributed
power, and a lack of ability of pro-PV activists to overcome
hurdles such as metering and the potential mis-match of
generation and load demand.
But, as happened in Germany, grid-connect programmes
will be critical to development of the PV industry in Africa.
First, grid-connect system capacity will build skills in an
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TABLE 1. African PV niches
Potential PV applications in Africa Justification
Off-grid PV
Solar home systems Household systems (the
market should diversify both
upward and downward from
the 50 Wp SHS)
Public service systems Schools, clinics, water pumps,
community institutions
Private sector systems Ranches, game lodges, small
business, telecomm
Isolated grid power systems In diesel powered off-grid
systems, PV is increasingly
competitive as a power source
On-grid PV
Urban and peri-urban offices Such businesses already use
and small businesses battery back-ups as survival
tools to get them through
power shedding.
Upper class households As above
Building facades Developers of buildings
consider energy costs in their
investments and may be
willing to invest in PV if it can
creatively fit with building
energy loads
Tourism (small and large hotels) Hotels increasingly like to be
seen as green and invest in
self-sufficiency as part of their
strategies.
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industry that has been focusing on small off-grid systems.
Secondly, they will increase business flow and revenue for
struggling companies. Thirdly, they will add prestige to PV
and make the sector more interesting to investors and
corporate customers. Finally, grid-connect PV will enable PV
companies to diversify their business and, in the long term,
enhance their ability to serve rural customers.
WHAT IS NEEDED FOR PROGRESSIVE DEVELOPMENT OF
PV IN AFRICA?
There is an urgent need for stimulation of PV development in
Africa. A market that has not grown significantly in 10 years
will not grow spontaneously. There is an urgent need for
support of both off-grid and on-grid PV activities. First, there is
a need to reinvigorate the off-grid PV sector through the use
of well planned initiatives that utilize incentives and
intelligent, serious government policy. Secondly, there is a
need to get PV on-grid in Africa.
Support by donors and governments for PV projects and the
achievement of agreed targets should go hand-in-hand. It is
absolutely necessary that supporters mandate accountability as
part of their projects. This should mean numbers of systems
installed and sold. Africa knows how to install PV what is
needed are supporters that are concerned about the entire
process of project design, execution, monitoring and evaluation,
not just the front end.
As in Europe, US and Japan, subsidy will be a key element to
the development of the market. With the drying up of GEF PV
support, there is a need to seek new sources of subsidy funding.
Some countries may be able to support modest PV subsidies with
locally raised revenue. Others will require support from donors.
If, as has been the case in so many projects, donor projects do not
work, it may be useful for the $20 billion PV industry to consider
allocating support for Africa from within its own coffers.
Off-grid, there is a need to rethink how projects are being
planned and executed.
PV needs to become part of the rural electrification planning
process, and governments need to be clear about the limits of
rural grid expansion programmes, because such limitations
are the basis for PV marketing.
partners and governments should set targets for PV
programmes, and donor payments should be tied to
achievement of targets.
the private sector needs to champion PV expansion
programmes.We have seen that the government will not do
this on its own.
intelligent subsidies and incentives must be made available for
the development of PV markets, in the same way that rural
electrification funds are made available for grid expansion.
subsidies should be available for a range of PV systems in the
public, household and private sector. Large systems in
tourism, telecoms, agriculture and other commercial facilities
are needed, as many public sector systems simply are not well
managed.
finance channels need to be stimulated all the way into rural
areas from importers to retailers to consumers
development partners, governments and supporters of rural
PV need to have a long term vision, not short term project
horizons.
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On-grid, there is a need to develop experience and treat PV as
an electricity source that it highly valued and easily deployed.
Clearly a situation where there is over a gigawatt of grid
connected PV in developed countries and nothing in Africa is not
tenable.
targeted education and awareness raising of power
companies, consumers, regulators and government
especially at high levels needs to take place.
government and utility policy must be adjusted to provide
incentives and clear procedures for connecting PV to the grid
targets must be set by ministries that promote use of PV on-
grid
investment by private sector in grid connect must be
supported and encouraged
creative financing tools must be developed (including carbon
finance)
group of knowledgeable champions among African power
utilities, ministries, private sector and regulators need to be
developed and supported
frameworks need to be developed for installation of grid
connected systems and resolution of technical (grid code
issues), regulatory, tariff/financial as well as environmental
accounting issues
existing global experience in grid-connected PV to the needs
to be incorporated into the African market
markets for grid-connected PV in selected niches must be
opened up and popularized among consumers.
In this article, we have seen that the Africa PV market has
become increasingly less attractive as other world markets grow.
PV markets in Africa have been constrained by a lack of real
Government policy and achievable targets, a weak capacity-
building and barrier removal approach by donor-funded
promotion initiatives and a lack of substantive incentives for the
private sector.
However, we cannot ignore PV markets in Africa. More that in
any other part of the world,solar energy must play a role in Africa,
as alternatives become increasingly expensive. New efforts in PV
must take different approaches that learn from successes in the
North, particularly the use of subsidy, and from the mistakes of
past projects.Governments,utilities and large consumers must be
involved in PV projects, and new projects must include both
small off-grid and large on-grid systems. Increasingly, African PV
traders must look to the large players in the North to help them
build their markets.
An Africa with a large PV market benefits everybody.
Mark Hankins is an energy consultant based in Kenya
e-mail: mhankins@africaonline.co.ke
NOTES
1 South Africa did this and faced the wrath of consumers who rejected PV SHS by
the thousands!
2. Namibia, Uganda and South Africa are three countries where PV is being
supported with rural electrification funds.
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FI NANCE Finding the money
As China looks to increase the share of its rapidly growing energy
demand that is derived from renewable sources, Joseph Jacobelli takes a
look at some of the key policies that will drive this growth, and at the
financial instruments that will provide the necessary billions.
O
n 28 February 2005, the Chinese government
introduced a new and comprehensive policy to
promote renewable energy sources. Called the
Renewable Energy Law, this legislation was formally
enacted on 1 January 2006 and has led to an
acceleration of announcements of new renewable energy
projects, particularly in the areas of wind and biomass. The
reasons for this are obvious. Over the next 15 years or so, China
is looking at increasing its wind-based electric power
generation capacity from a little over 1200 MW at the end of
2005 to at least 30 GW by 2020.This should require investment
of anywhere between US$2128 billion; depending on the
percentage of domestically sourced equipment. Overall,
electric power generation capacity from renewable energy
sources should rise from around 10 GW in 2004 to at least
130 GW by 2020. Such strong momentum in the renewable
energy sector raises two key questions: how serious are
government authorities in their promotion of renewable
energy sources, and how will this huge planned increase in
renewable energy sources be financed?
CHINESE GOVERNMENT AUTHORITIES ARE SERIOUS IN
THE PROMOTION OF RENEWABLE ENERGY SOURCES
The legal framework
In the past 18 months or so, the Chinese authorities have
released two documents important to the development of
renewable energy sources in China. On 28 February 2005, the
Standing Committee of the National Peoples Congress (NPC)
issued The Renewable Energy Law of the Peoples Republic of
China to be effective from 1 January 2006. Another key
document was released by the National Development and
ReformCommission (NDRC) less than a year later, on 4 January
2006, and was entitled Trial Measures for the Administration
of the Pricing of, and the Sharing of Costs in Connection wit,
the Generation of Electricity Using Renewable Energy
Resources, also effective from 1 January 2006.
Article 2 of the Renewable Energy Law clearly defines
Chinas idea of renewable energy sources. It says that the Law
refers to non-fossil energy of wind energy, solar energy, water
energy, biomass energy, geothermal energy, and ocean energy,
etc and that the Application of [the Renewable Energy Law] in
hydropower shall be regulated by energy authorities of the
State Council and approved by the State Council.
We believe there are at least four key articles in the 2006
Renewable Energy Law worth highlighting.
High transparency. Central government authorities made
a commitment to publicize renewable energy targets
(Article 8).
Grid connection and purchase guarantee. The
Renewable Energy Law mandates the grid both to connect,
and to purchase, all of the available electric power output
from authorized renewable energy power producers
(Article 14).
Pass through. Importantly, the Renewable Energy Law
emphasizes the difference to the grid between renewable
power and the other forms of electric power. This means
that any difference between the price of electricity from
renewables and on-grid price of power from conventional
sources, as well as any costs incurred by the grid to connect
renewable energy generators to the grid, is to be passed on
through to end users (Articles 20 and 21).
Finding the money
Is Chinas renewable energy boom real, and if so,
how will it be financed?
Over the next 15 years, China is looking at
increasing its wind power capacity from
1200 MW at the end of 2005 to 30 GW by 2020
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Chinas rapidly growing economy has put huge strain on the environment, with an estimated four million dying every year from air
pollution. This has made the development of renewable energy a priority for the central government
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Financial support. The Renewable Energy Law provides
financial support to renewable energy projects in three
ways:
1. Establishment of a government renewable energy
development fund (Article 24).
2. Authorization of preferential loans from financial
institutions (Article 25).
3. Preferential tax treatment for authorized renewable
energy sources projects (Article 26).
The 2006 trial measures, applicable to renewable energy
sources projects approved after the end of 2005, also contain a
few key articles worth mentioning.
Pass through.These measures clarified that the difference
between the on-grid tariffs for renewable-generated
electric power and for desulphurized coal burning, should
be passed through to the retail price and that the difference
shall be apportioned over the quantity of electricity sold
by grids at the provincial level and nationwide (Article 5).
Pricing for biomass.These measures detailed the pricing
mechanism for renewable energybased electric power
generation projects.The most important factor is that such
projects would receive a subsidy of RMB250/MWh
($31.25) above the benchmark on-grid tariff for
desulphurized coal burning generators (Article 7).
Pricing for solar.The measures simply mentioned that the
tariff rates would be determined by the State Councils
pricing department based on the principle of reasonable
costs and profit (Article 9).
Surcharges. Several articles within the measures (Articles
1218) explain the process under which end users would
pay for a surcharge for using renewable-based electric
power. While detailed, the various articles do not offer an
automatic process. Rather, they emphasize that the
determination of the surcharge remains within the
authority of the State Councils pricing department.
Overall, it is impressive that the body of legislation was
released ahead of the expectations of industry practitioners.
These participants, however, have publicly criticized
authorities for not offering a feed-in tariff for wind power
projects.
In the energy field, China has never blindly and hurriedly
undertaken change. The restructuring of the electric power
transmission and distribution and generation sectors took the
best part of eight years and now, four years later, fine-tuning is
still taking place (Chinas two grid companies no longer have
administrative functions but still own a small number of
generation assets which they were supposed to sell off).
In short, China has not been comprehensive enough with
its policies but the fact that some sensible legislation is already
in place is a tremendous leap forward for the Chinese
renewable energy industry. Confidence remains high that in
the next five years, authorities will further amend and improve
renewable energy sources legislation.
THE MOTIVATION
The motivation on the part of Chinese government to promote
the development of the renewable energy industry arises from
three concerns over the environment, social obligations and
energy security.
Concerns over environment
China has a well publicized pollution crisis and this has
provided the authorities with a greater drive to promote
emissions-free energy. While politically, energy security is
probably the basic motivator behind a greater emphasis on
renewable energy, the most serious driver is (or should be)
pollution, which is regularly highlighted by local and global
media.The pollution-related costs to the environment are great.
A recent article highlighted some of the issues:
According to the World Bank, China has six of the worlds
10 most polluted cities
Pollution may cost $54 billion per year in environmental
damage and health problems
Acid rain falls on one-third of the land.
Others have highlighted that China is the worlds second-
largest producer of greenhouse gases and that two-thirds of
China has not been comprehensive enough
with its policies, but the legislation in place is
a tremendous leap forward
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its cities have poor-quality air, often due to coal dust from
power plants.According to the World Health Organization, air
pollution kills about 4 million people per year in China.
Rural electrification
Another factor which motivates the Chinese government is
rural electrification and China has been aggressive in trying
to ensure that all its people have access to electricity.
Depending on the source, Chinese organizations estimate
that there are between 10.5 million and 30 million people in
the country with no access to electricity, mostly in rural
areas, representing 0.8%2.3% of Chinas total population.
Currently, the National Development and Reform
Commission is targeting to provide power to all those with
no access to electricity via two programmes, Village
Electrification and Household Electrification.
Energy security
Whilst fossil-fuel (gas and coal) supplies appear abundant,
historically there has been too much dependence on coal.
Since late 2003, when electric power demand began rising
faster than expected by authorities, problems with such large
dependence on coal-fired power plants has became apparent.
In one instance, coal prices rose so sharply from 20032004
that some thermal coal plants in eastern and southern China
did not have sufficient fuel to generate power and were forced
to shut down.
The sharp rise in global oil prices and existing limited
availability of oil has once again highlighted to the Chinese
authorities the need for greater energy security. Whilst
renewable energy may only account for about 12% of Chinas
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total installed capacity by 2020, it should still help in
furthering energy security.
Other motivations
Renewable energy would appear to be beneficial in meeting
most of the challenges faced by the electric power generation
sector.
Price
Currently the electric power tariff mechanisms for various
forms of generation are at an early stage in China. For coal, oil,
gas and nuclear generation, the on-grid tariff (i.e. wholesale
tariff) mechanism is still being developed by authorities.The
immediate target is to involve coal-fired generation in
experimental, competitive on-grid power sales, in some key
regions including eastern, north-eastern and southern China.
Relative to these other forms of electric power generation,
renewable energy sources have some clear guidelines
regarding the on-grid tariffs, thanks to the Renewable Energy
Law.The hydro on-grid tariff too is unlikely to change, as it is
fixed by government. Biomass-generated power already has a
fixed feed-in tariff. For wind and solar-generated power for
now, as with hydro, the on-grid tariff is fixed by government
and not by a utility regulated formula.
Utilization rates
It is widely known that increases in electrical capacity have
finally begun to outpace growth of demand, and this should
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TABLE 1. Renewable electricity projects vs. other electric power generation sources
Source: Merrill Lynch AsiaPac Utilities Research
Coal Hydro Oil Gas Nuclear RES
Price Tariff mechanism currently still at Unknown Neutral Unknown Unknown Unknown Positive
early evolutionary stage
Volume Utilization rates nationwide declined Negative Neutral Negative Neutral Unknown Neutral
in 2005 and should decline in 20067
Fuel Thermal costs have risen sharply in Negative Neutral Negative Positive Positive Positive
20046 and should stay at high level
High gas price levels may hinder Positive Neutral Neutral Negative Neutral Positive
its development as a key generation fuel
Energy fuels (thermal coal and gas) Negative Neutral Negative Negative Neutral Positive
supply disruptions could occur again
Financing Rising debt from sharp generation Negative Negative Negative Negative Positive Positive
and T&D expansion
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continue in 2006 and 2007. This will affect coal and oil-fired
generation whose dispatch depends on overall utilization
rates in individual grids.The trend should be neutral to hydro
and other renewable energy generation, as the grid is obliged
to pick up all of the output generated by these two forms. It
is also neutral for gas, which is expensive and not widely used
for baseload in China. For nuclear, dispatch is dependent on
the grid, but is largely treated like hydro and power generated
from renewable energy sources.
Higher fuel costs
Power generated from renewable energy sources is now also
looking much more competitive than competing forms of
generation. It is estimated from sample projects that wind and
biomass can sell power to the grid at anywhere between
RMB500700/MWh ($62.587.5).This is generally lower than
oil-fired generation which is typically more like
RMB600800/MWh ($75100). Nuclear energy is currently
priced a little lower than wind and biomass, at around
RMB400500/MWh ($5062.5). The range for gas is not
currently applicable, given that there are only limited
examples.
High gas prices
Chinas target to have 60 GW of gas-fired generation by 2020
(from a base of just 12 GW in 2004) now seems ambitious.
The target was devised on the assumption of low oil and gas
prices well before $70 oil! These high prices may hinder the
growth of gas and some of the balance may be substituted by
coal-fired or renewable energy sources generation.
Energy fuels supply disruptions
In 20032005, a sharper-than-expected increase in electric
power demand put pressures on the coal transport
infrastructure, leading to some coal-fired generation power
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Renewable energy is now looking much more
competitive than competing forms of
generation
Small hydro is one of the most common types of renewable energy found in China, and it
is still growing. Over 3 GW of new small hydro was installed in 2006 ESHA
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plants with limited (or no) coal supply during peak demand
periods. In 2005 and 2006, residential, and to a lesser extent
commercial, demand for natural gas disrupted the supply of
natural gas to new gas-fired power plants. Both events are
positive for renewable energy sources based generation,
which should not suffer from such severe fuel supply
disruptions.
Sharp expansion of generation and transmission and
distribution
In 2005, China added about 65.9 GW of generating capacity,
bringing its total to 508 GW.We estimate China will be adding
75 GW in 2006, 82 GW in 2007 and then 74.584.5 GW on
an accumulated basis between 2008 and 2010. Concurrently,
the heavily neglected transmission and distribution systems
must be expanded as well, at an estimated cost of around
$291 billion between 2006 and 2010 and a further $625
billion between 2011 and 2020. The sharp increase in
spending may cause some to be concerned as to whether
renewable energy sources would have challenges in raising
funds for the development of the projects.This should not be
a concern given that electric power generation and
transmission and distribution projects are priority sectors.
Thus these projects should find raising funds from Chinas
four key commercial banks relatively easy.Also, as mentioned,
the Renewable Energy Law does authorize preferential loans
from financial institutions (Article 25) to renewable projects.
THE FINANCING OF HUGE PLANNED INCREASES IN
RENEWABLE ENERGY SOURCES
We estimate that China will be raising installed capacity from
renewable energy sources from about 10 GW in 2004 to
130140 GW by 2020. The strongest growth will come from
wind power which should increase from 1.2 GW in 2005 to
3040 GW by 2020. Hydro, solar, and biomass are each likely to
increase more than 10-fold.
We suspect that actual wind power capacity expansion is
likely to top the current 3040 GW target. In fact, in recent days
authorities at an industry conference mentioned that China was
raising its 2010 wind power target 60%, to 8 GW from 5 GW,
although no mention was made of the 2020 target.
1
Chinas
biggest wind power operator, China Longyuan, part of China
Guodian Group (one of Chinas Big Five electric power
generation groups), said at this same conference that it was
TABLE 2. Generation estimates by type. Source: Speech of Energy
Bureau in World Renewable Energy Conference 2004; China Sustainable
Energy Program. NDRC.
Generation targets Year-end 2004
a
2010
b
2020
b
by type (GW)
Renewable energy 10 60 130
target (total)
Renewable energy 9.719.81 60.45 130141
target (calculated)
Small hydro plants 7 50 79
Wind 0.76 4 30.0040
Biomass 1.902 6 20
Solar PV 0.05 0.45 12
a
Actual capacity installed
b
Estimated capacity
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itself targeting wind power installed capacity of 3 GW by
2010 from about 0.42 GW in 2005.
Updated targets should be released relatively soon as semi-
official Chinese media sources reported that the State Council
will soon issue mid- and long-term objectives for the
development of renewable energy sources.
2
Given such massive
growth, where will the necessary finance come from, and will
sufficient funds be available to ensure maximum development?
Commercial bank loans
Assuming an average of $8001000/kW, China should be
spending at least $104140 billion developing renewable
energy generation. Typically, electric power projects can be
70%80% financed by commercial bank loans. This means
that the banking system should be looking at lending
between $72.8112.0 billion.
Other forms of funding
Whilst renewable energy sources are a priority area for China
and thus raising commercial bank loans should be relatively
straightforward for authorized projects, the downside is that
these loans are typically based are on floating rates. As such,
Chinese renewable energy projects, and electric power
companies in general, have been looking at gradually
diversifying their funding sources. These have included the
issuance of corporate bonds, fixed-rate short-term notes and
convertible bonds, along with the setting up of joint ventures or
selling stakes and raising funds on the stock markets. Below we
detail some examples from 2006 of these various channels to
highlight the scale and diversity of forms of funding other than
commercial bank loans.
3
It is worth noting that equity issuance
had stopped for about a year in China and that only in May 2006
did the China Securities Regulatory Commission resume the
approvals process for initial public offerings.
Corporate bonds
11 May: China Yangtze River Three Gorges Project
Development Corp said it would issue 20-year bonds at
4.15% annual coupon worth RMB3 billion ($375 million)
Fixed-rate short term notes
21 June, Huaneng Power International announce it would
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issue a 1-year note in the inter-bank market worth RMB4.5
billion ($562.5 million)
25 May: Huaneng Power International Inc. said it had
floated its first batch of short-term bonds for 2006,
RMB500 million worth ($62.5).
Convertible bonds
23 May: Shanghai Electric Power Co. board approved the
issuance of RMB1 billion ($125 million) worth of five-
year convertible bonds.
Setting up of joint ventures or stake-sale
21 June: Beijing-based China Energy Conservation
Investment Corp announced it had taken a 47.5% stake in
Zhejiang Windey for RMB40 million ($5 million)
21 June: Guangxi Guidong Electric Power Co Ltd said its
parent would sell 29% in power producer to Spains
Iberdrola for RMB218.21 million ($27.3 million)
16 June: Singapore-based China EnerSave Ltd said Friday
it bought a 51% stake in a 270MW power plant in Henan
for $45 million.
20 May: Frances Electricit de France said it was
considering acquiring further stake in Chinese electricity
companies or power stations.
Initial Public Offering (IPO) and other equity
issuance
21 June: Zhejiang Windey, a wind turbine manufacturer
said it is looking at an IPO in the next two years to raise
up to RMB200 million ($25 million)
20 June: Another wind turbine manufacturer, Goldwind
Science & Technology Co., said it was considering an IPO.
CONCLUSION
China is an exciting investment prospect for the renewable
energy industry, with predictions of rapid growth and the
first steps towards a comprehensive renewable energy
support policy. With a wide range of sources of equity and
finance, the only real limits on this growth will be the
technology and the political will.
Joseph Jacobelli is Head of AsiaPac Utilities Equity Research and
Senior Director, Merrill Lynch (Asia Pacific) Ltd
e-mail: joseph_jacobelli@ml.com
NOTES
1. China May Raise Wind Power Installed Capacity to 8mn kW, 19 June 2006,
SinoCast China Business Daily News
2. China commits preferential fiscal, tax policies for renewable energy firms, 20
June 2006, Xinhuas China Economic Information Service
3. Data sourced from: AFX Asia, Asia Pulse, China Daily, China Securities Journal,
Dow Jones International News, Le Figaro, Reuters, Xinhua Financial Network.
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info@ewec.info
+32 2 546 19 80
www.ewec2007.info
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Energy Council
European Academy of
Wind Energy
Call for Abstracts
Deadline: 7 September 2006
All abstracts must be submitted online
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Exhibition
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EWECis the Annual General Meeting for
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With small hydro growing at over 4 GW per year in China, D. Pan takes a
timely look at one of the largest renewable energy markets in the world,
how it got that way, and what the Chinese governments policy is for the
future.
B
y the end of 2005, there were 39,660 MW of small
hydro capacity in China, representing over 95% of all
renewable electricity capacity installed. In 2004 and
2005 the sector had continued to grow rapidly, with
China installing an additional 3.59 GW each year.
According to the Chinese Ministry of Water Resources, during
this period half of the land, one third of the counties (in China
a county is an administrative region which can correspond to a
city and its hinterland) and one quarter of the Chinese
population were supplied with electricity mainly derived from
rural hydro power.
It has been widely recognized that SHP has a special role to
play in energy supply, poverty alleviation, environmental
improvement, increase of farmers' living standards and
development of local economy. In China, the definition of small
hydro has been modified several times of the last 40 years, rising
from <3 MW in the 1960s to <50 MW in the 1990s.
The environmental benefits of developing SHP should
not be ignored. The annual generation from rural small
hydropower in China replaces the need to burn 44 million
tonnes of standard coal, displacing the emission of over 110
million tonnes carbon dioxide, 85 million tonnes of carbon
monoxide and 900,000 tonnes of sulphur dioxide. Most of
the electrified counties are situated on the upper reaches of
rivers, where the land is more thickly forested. Using small
hydro in such regions saves firewood, meaning logging can
be prevented and soil erosion avoided. According to
statistics, there are nearly 20 million residents using
electricity to cook in areas supplied by rural hydropower in
China, thus protecting a huge amount of timber from being
chopped down every year. In the primarily electrified
counties, the forest cover increased at an annual average of
9.88% over the past 15 years, 5.4% quicker than that of the
whole country. Previously farmers especially the women
and children spent a great deal of time picking up or
collecting fire wood, and burning hay and fuel wood all the
year round.This not only polluted the local environment, but
was inefficient and undermined their health.
Meanwhile, the boom in SHP has greatly benefited the
hydropower equipment manufacturers in China. 2004 saw
the production of a record 6.3 GW of hydropower
equipment. In 2003 the production of hydropower
equipment was around 5.16 GW, whereas in 2002 this figure
was only 2.98 GW. Encouragingly, along with the
development of SHP in the past decades, the quality of the
hydropower equipment produced in China has also
improved considerably, especially in recent years. So far, 12
kinds of standards or regulations relating to the hydropower
equipment sector have been established. Due to the constant
progress made in information technology, a series of high
efficiency turbines have been developed and produced. For
The annual generation from rural small
hydropower in China replaces the need to
burn 44 million tonnes of coal
Liquid assets
Factors contributing to the development
of small hydro in China
Liquid assets SMALL HYDRO
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instance, the efficiency of the domestically produced
impulse turbine (single jet) has reached 90.75%, very close
to the 91% achieved in some advanced countries, while
efficiency for the Francis turbine scores 94.5% in China,
compared to 94.9% achieved elsewhere. At the same time,
owing to the fact that the processing costs of manufacturing
medium and small sized turbine equipment represents fairly
a large proportion of their price, the equipment is very
competitive on the international market.
FACTORS CONTRIBUTING TO FAST SHP GROWTH
In 2002, China started to confront its growing power shortage,
something which was brought to light in 2003 when 21
provinces and autonomous regions in China experienced
frequent brownouts.This has provided an opportunity (and an
impetus) for the development of alternative electricity sources,
with several consequences for the SHP sector.
High market demand. China's severe shortage of
electricity in recent years has created a golden age for
SHP development.The national GDP growth rate in 2003
reached 9.1% (the expected growth from the central
government was 7%) and the GDP growth rate hit 15% or
even higher in many of China's eastern coastal areas.This
has continued ever since, with growth in 2004, 2005, and
2006 averaging at 8%9%. In 2003 the steel output
reached 222 million tonnes, up 21.9% on 2002; the
growth rate of cement production accounted for 18.9%.
These energy-intensive industries became the main force
behind the growth of the industrial consumption of
electricity. Thus, the demand of electricity consumption
was much higher than predicted.
Favourable tax policy. The Chinese government set the
rate of value-added tax for SHP at only 6%, whereas the
rate for large hydro was 17%. Meanwhile, the 33% income
tax for SHP can be reduced to 16.5%
or even 0% in some places. Other
preferential policies have been
introduced by both central and local
governments, and hundreds of
millions of dollars are being allocated
for SHP development each year. The
return period for SHP developed
with a low interest loan is 10 years.
Multi-channel fund mobilization.
One of the main obstacles to SHP
development is the availability of
construction capital. SHP-based rural
electrification not only depends on
the local governments but also on the
local people to be mobilized. So it is
important to have ways of collecting
funds:
Multi channel ways of collecting
funds. Farmers, groups of farmers as well as
enterprises are encouraged to invest. Funds outside
the county are also encouraged to develop SHP. In
short, whoever invests, all are welcome, adopting the
mantra who invests, owns and benefits
Adopting a share system or share co-operative
system for the mobilization of funds and finance,
including using the foreign capital. Since the early
1990s when some areas adopted share systems to run
SHP stations, about 80 SHP stations and grids have
been set up. Such a system is beneficial for the
mobilization of funds for SHP construction
Self-rolling funds for SHP enterprises. Due to the
constant input and construction over the last few
decades, many counties now generate sufficient profit
from their SHP plants to invest in new facilities
Abundant SHP potential. The theoretical SHP potential
in China is 150 GW, with 72 GW seen as economically
exploitable. Since the 1990s, SHP stations with an
installed capacity of up to 50 MW could enjoy the
preferential SHP policies. Thus, the theoretical SHP
potential in China was increased to 170 GW, and the
exploitable potential to 120 GW.
In 1983, the state issued a call to develop SHP actively
and set up rural electrification pilot counties. For the past
20 years, 653 counties based on SHP-based rural
electrification have been developed, representing one third
of the total in China. In all, 1576 Chinese counties have
developed SHP, of which 780 counties are mainly supplied
by SHP, representing (as mentioned earlier) half of the
territory and roughly one quarter of the population.
The policy of Three selves self
construction, self management and self
consumption developed in China in the
early 1960s has been the guiding
philosophy of SHP development in China.
Self construction allows local
government and people to mobilize their
initiative to make full use of the local
resources, technology and crude
materials to develop SHP, with the
collection of funds generally being made
by the locals. In some places, they even
produce the SHP equipment themselves.
Self management means that those who
invest own the SHP station, protecting
the initiative of the local people to
develop SHP. Hence, the management
system for SHP is quite ahead the time.
Self-consumption means that the energy
produced by the SHP station should be
consumed locally for the main, indicating that SHP must have
its own supply area and it forms the SHP market of unified
system embodying generation, supply and consumption.
In contrast with some other developing countries, the
SMALL HYDRO Liquid assets
In all, 780 counties are mainly supplied by
SHP, representing half of the territory and one
quarter of the population
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development of small hydro power in China has tremendous
grass root support. Apart from the strategic objectives,
standards and policies which are set forth by the central
government, the planning, exploitation, operation,
management and equipment manufacturing are all
implemented by the local governments. Such principles of
self-reliance and mainly depending on the locals to develop
SHP and extend the state grids form the main features of the
management system. Hence, rural energy is supplied by the
state grids, local grids and the isolated rural grids in a
decentralized manner in China.
SHP PROSPECTS
In 2005 the total annual power consumption in China hit
2500 billion kWh. As predicted, the total installed electrical
capacity in China exceeded 500 GW by 2005 and the newly
added installed capacity in the whole country hit 70 GW.
From January to June this year, total power consumption
reached 1311 TWh, a 12.89% increase as compared to the
same period in 2005.
While the majority of generation in China is from fossil-
fuel powered thermal stations, SHP is a renewable and
environmentally sound energy. With the availability of small
scale investment, it is sustainable and appropriate for the
vast number of decentralized rural households. Therefore,
the approach of Chinese Ministry of Water Resources has
been clear to continue to intensify harnessing rural
hydropower.
In 2003, China began an ecological protection project
designed to speed up the replacement of firewood used for
cooking with electricity from SHP. The implementation of
the project has so far been smooth, and it
looks as though the problem of around
104 million farmers burning cooking fuel
can be resolved, reducing the
consumption of burning hay 149 million
m
3
, protecting 22.6 million ha of forest,
reducing the annual emission of
200 million tonnes of carbon dioxide and
920,000 tonnes of sulphur dioxide.
Furthermore, a scheme such as this has
the potential to unfetter rural productive
forces, improve standards of living,
alleviate the hardships of chopping
wood and burning hay, and promote
co-ordinated development between the
rural regions and towns. The project can
show that the development of SHP has a
key role to play in solving the issue of hay
for the farmers, supplying rural energy,
protecting the environment, resolving the
issues of agriculture, farmers and villages
and improving the living conditions of
the farmers.
By 2020 China will have completed
the development of 300 SHP counties,
each with an installed capacity over
100 MW (of which 100 will be over 200 MW in terms of
installed capacity, 40 will be super SHP bases of over 1 GW
and 10 provinces will have over 5 GW. This at least is the
strategic plan from the Chinese Ministry of Water Resources.
In accordance with plans outlined by China's National
Development & Reform Commission, the country will invest
around 1000 billion yuan (US$125.4 billion) in developing
SHP to meet the demands of Chinas rapidly growing
economy in the coming years, with the target for SHP
capacity set at 75 GW by 2020.
A new era of green energy is coming. Over the last 20
years, the interest of the world community in hydro power has
been increasing. A number of international conferences have
appealed for greater utilization of renewable energy sources
such as small hydro power, including the World Summit on
Sustainable Development held in Johannesburg of South
Africa in 2002 and the Ministerial Declaration issued at Third
World Water Forum held in Kyoto of Japan in March 2003.
Meanwhile, Chinas recently introduced Renewable
Energy Law recognizes both large and small hydro power as
renewable energy, although the incentive price policy for
renewable energy does not apply to hydropower. However
thanks to Chinas rapid economic growth, SHP will hopefully
maintain its level of development and be exploited and
promoted in sound and rational manner in the future.
D. Pan , is Acting Secretary General of the HRC Secretariat
e-mail: dqpan@hrcshp.org
Web: www.hrcshp.org
For more information on the China Renewable Energy Law, see article
Finding the money by Joseph Jacobelli on page 116.
Liquid assets SMALL HYDRO
ABOVE The quality of Chinese-made small hydro equipment has improved dramatically
over the years and is now almost equal to imported machinery ITPOWER BELOW LEFT A
pico hydro turbine in use in China ESHA
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BI OMASS A growing role
As the biofuel and biomass
industry goes from strength
to strength, questions are
emerging regarding its
availability and environmental
credentials. Here Martin Junginger,
Andr Faaij, Frank Rosillo-Calle and
Jeremy Woods provide a run-down of
biomass potentials, look at some of the
recent studies on sustainability and
examine some of the methods being
used to ensure the greenness of
energy production from biomass.
I
n the 2006 MarchApril edition of Renewable Energy
World, Alasdair Cameron raised some interesting points
regarding the sustainability of biofuels, their potential to
contribute to the global energy supply, reduction of
greenhouse gas emissions (GHG), and their impact on land
use and biodiversity. Given the complexity of this issue, the
authors gladly wish to contribute to this discussion. First, we
give an overview of biomass production potentials, and the
importance of technological development and perennial crops
to utilize this potential. Second, we take a look at some of the
most critical issues for developing large-scale biomass for
energy production, and indicate at the same time how these
issues may be avoided or solved.Third, we provide an overview
of on-going developments to ensure the greenness of biomass
by developing safeguards, e.g. via sustainability criteria and
certification schemes for bioenergy. Finally, we highlight the
importance of sustainable international bioenergy trade as a
major driver to develop biomass potentials.
WHAT ARE THE PERSPECTIVES FOR PRODUCING
BIOMASS FOR ENERGY?
In principle we divide biomass into three categories: energy
crops on current agricultural land; biomass production on
marginal lands; and residues from agriculture and forestry, dung
and organic wastes. As we show below, we estimate that
globally, these categories may supply 200 EJ, 100 EJ and 100 EJ
(EJ = 10
18
J) respectively.
Clearly, biomass production requires land.The potential for
energy crops therefore largely depends on land availability,
which must also account for growing worldwide demand for
food, nature protection, sustainable management of soils and
water reserves and a variety of other uses. Given that a major
Harvesting sugarcane in Brazil. Land availability and farming efficiency (intensity) will
be the key limiting factors on bioenergy production ELLEN CORDEIRO / UNICA
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A growing role
Opportunities, challenges and pitfalls
of the biofuels trade
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part of the future biomass resource for energy and materials
depends on these intertwined, uncertain and partially policy
dependent factors, it is impossible to present the future
biomass potential in one simple figure. A review of the
literature on future biomass availability carried out in 2002 (17
studies in total) revealed that no complete integrated scenario
assessments were available [Berndes et al., 2003].These studies
include those by IPCC, US EPA,World Energy Council, Shell, and
Stockholm Environmental Institute, and arrived at varying
conclusions on the possible contribution of biomass to the
future global energy supply (e.g., from less than 100 EJ/yr to
above 400 EJ/yr in 2050). Table 1 provides a summary of the
biomass categories and biomass supply ranges as a result of
various approaches and methods used by different studies.The
major reason for the differences is that the two most crucial
parameters land availability and yield levels are uncertain,
and subject to widely different opinions (e.g., the estimates for
2050 plantation supply ranges from less than 50 EJ/yr to almost
240 EJ/yr). In addition, the expectations about future
availability of forest wood and of residues from agriculture and
forestry vary substantially among the studies.
In theory, with projected technological progress and
without jeopardizing the worlds food supply, energy farming
on current agricultural land could contribute over 800 EJ.
Organic waste and residues could possibly supply another
40170 EJ, with uncertain contributions from forest residues
and potentially a very significant role for organic waste,
especially when bio-materials are used on a larger scale.
2
In
total, the upper limit of the bioenergy potential could be over
1000 EJ annually. This is considerably more than the current
global energy use of about 430 EJ.
How do these bottom-up potentials compare to top-down
calculations on how much biomass could be produced? In the
1980s and 1990s, the late Prof. David Hall (at the time the
world's leading expert on photosynthesis), and others showed
that man already appropriates roughly 10% of the global net
primary production (NPP) of biomass through agriculture and
forestry activities. Dukes takes this analysis further and
extrapolates it to say that the energy fixed through
photosynthesis into biomass by this 10% appropriation is
approximately equal to current global primary energy
demand. Hence, by simple extrapolation, mankind would need
to appropriate another 10% of the global NPP to meet a 430 EJ
demand solely from bioenergy. In this discussion, it is
important to point out that global photosynthetic capacity and
therefore NPP is not fixed because limiting factors such as
plant nutrients, water and pest and diseases can be managed by
farmers and foresters.
3
However, the question of how an expanding bioenergy
sector would interact with other land uses, such as food
production, biodiversity, soil and nature conservation, and
carbon sequestration has been insufficiently analysed in these
studies.A refined model of interactions between different uses
and bioenergy, food and materials production, would facilitate
In theory, energy farming on current
agricultural land could contribute over 800 EJ
TABLE 1. Overview of the global potential of bioenergy supply on the long term for a number of categories and the main pre-conditions and
assumptions determining these potentials
a
Biomass category Main assumptions and remarks Potential bioenergy
supply up to 2050
(EJ/yr)
Energy farming on Potential land surplus: 04 Gha (Most studies find 12 Gha). A large surplus 0700
current agricultural land requires intensive agricultural production systems (i.e. modernization of all aspects). (100300)
When this is not feasible, the bioenergy potential could be reduced to zero. On average
higher yields are likely because of better soil quality: 812 dry tonne/ha/yr are assumed.
Biomass production on On a global scale a maximum of 1.7 Gha could be involved. Low productivity of 25 dry 0150
marginal lands tonne/ha/yr. The supply could be low or zero due to poor economics or competition (60150)
with food production.
Residues from agriculture Potential depends on yield/product ratios and the total agricultural land area as well as 1570
type of production system. Extensive production systems require re-use of residues for
maintaining soil fertility. Intensive systems allow for higher utilization rates of residues.
Forest residues The sustainable energy potential of the worlds forests is unclear. Part is natural forest 0150
(reserves). Low value: figure for sustainable forest management. High value: technical (30150)
potential. Figures include processing residues.
Dung Use of dried dung. Low estimate based on global current use. High estimate: technical (0)555 EJ
potential. Utilization (collection) on longer term is uncertain.
1
Organic wastes Estimate on basis of literature values. Strongly dependent on economic development, 550+
consumption and the use of bio-materials. Figures include the organic fraction of MSW
and waste wood. Higher values possible by more intensive use of bio-materials.
Total Most pessimistic scenario: no land available for energy farming; only utilization of
residues. Most optimistic scenario: intensive agriculture concentrated on the better
quality soils. (In brackets: more average potential in a world aiming for large scale
utilization of bioenergy).
a
The overview is based on review of 17 studies and [Faaij et al., 2000], [Smeets et al., 2004] and [Hoogwijk et al., 2005]. Where two ranges are given, numbers between
brackets give the range of average potential in a world aiming for large-scale utilization of biomass. A lower limit of zero implies that potential availability could be zero, e.g. if
we fail to modernize agriculture so that more land is needed to feed the world.
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an improved understanding of the prospects for large-scale
bioenergy in the future. Recently, these issues were addressed
in several studies. One approach is reported in Smeets et al.,
[2004] where bottom-up information was used on land-use,
agricultural management systems on a country-by-country
basis, projections for demand for food and information on
possible improvements in agricultural management (both for
crops and production of meat and diary products). Figure 1
shows the possible variation in the technical potential,
assuming four different agricultural production systems (see
also table in appendix). In all scenarios, no food shortages
occur. Scenarios 1 to 3 have in common that they are based on
medium growth assumptions between 1998 and 2050 for
global human population (from 5.9 to 8.8 billion people) and
per capita food consumption (from 2.8 to 3.2 Mcal per person
day), a high plantation establishment scenario (from 123 to 284
Mha) and a high technological level for the production of
bioenergy crops. Scenario 4 is based on the assumption that
research and development efforts may increase yields above
the existing level of technology used in this study as e.g. in
scenario 3. In scenario 4 crop yields are 25% higher than in
scenario 3 due to additional technological improvements. For
further details, see Smeets et al. 2004.
Other studies used integrated assessment modelling to
evaluate future biomass potentials for different SRES scenarios
[Hoogwijk 2004 and Hoogwijk et al., 2005]. In these analyses,
Latin America, Sub-Saharan Africa and Eastern Europe are the
most promising regions; Oceania and East and North East Asia
also show significant potential in biomass production areas
under some scenarios in the longer term. The latter can be
explained by the projected demographic developments
(possibly declining population in China after 2030) and fast
technological progress in agriculture, leading to substantial
productivity increases. These analyses also show that a large
part of the technical potential for biomass production may be
developed at low production costs of about US$2/GJ
[Hoogwijk, 2004 and Rogner et al., 2000].
TECHNOLOGY DEVELOPMENT
While the main efficiency gains are to be found in agricultural
productivity, technological developments can dramatically also
improve competitiveness and the efficiency of bioenergy.
These gains encompass two major components: conversion of
primary biomass to final energy carriers, and long-distance
biomass supply chains (i.e. intercontinental transport of
biomass derived energy carriers) [Faaij, 2006 and Hamelinck et
al., 2004]. Regarding the first component, current production
of biofuels for transport is inefficient, from the perspective of
the energy balance and the production per hectare. With the
exception of ethanol from sugar cane, first generation
biofuels, such as ethanol from corn, sugar beet or wheat, or
biodiesel from oil seed crops such as rape seed, typically only
reach 20%50% well-to-wheel GHG emissions reductions
compared to gasoline (for ethanol) and diesel (for biodiesel)
[IEA, 2004].4 Also, such schemes are fairly inefficient on a
GJ/ha basis, and far from competitive, even with current oil
prices. However, there are several second generation
technologies in the pipeline, such as ethanol production from
lignocellulosic feedstocks, and production of biodiesel using
the Fischer-Tropsch process.
These technologies can achieve higher GHG reduction
rates and higher yields per hectare. Also, they will be able to
convert a larger diversity of biomass feedstocks than the
current first generation technologies, in particular, low-cost
residues. It is expected that these second generation
technologies will be commercially available within the next
one or two decades, i.e. in the time frame in which truly large-
scale production of biofuels could take off.These aspects have
to be taken into account when calculating future land-
requirements. Thus, we deem calculations, such as how much
the EUs land area would be needed to cover its domestic
demand for e.g. biodiesel based on current rape seed yields and
conversion technologies, rather misleading. Regarding the
second component of bioenergy logistics, development
technologies which convert low-density (both in terms of mass
and energy per volume) primary biomass to high-density, high
value energy carriers such as wood pellets, torrefied pellets,
pyrolysis oil or even directly produced transportation fuels
such as ethanol and biodiesel, will widen the possibilities of
long-distance bioenergy trade and increase the
competitiveness of biofuels.
PERENNIAL CROPS THE WAY FORWARD
Regarding the feedstock production, second-generation
technologies will favour the production of perennial crops
(such as eucalyptus, poplar, and grasses such as miscanthus and
sugar cane), as they are better than the current annual
World
North America
75
168
204
39
Oceania
America
55
93
114
40
Japan

2 2 2 2
19 25 30
W.Europe
13
E.Europe
13
24
29
5
CIS &
Baltic States
111
223
269
83
Caribean &
Latin America
162
234
281
89
sub-Saharan
Africa
117
282
347
Middle East &
North Africa

2
31
39
2
South Asia
263137
23
East Asia
28
158
194
22
1273
1548
610
367 forest growth and
agricultural and forestry
wastes and residues
dedicated woody
bioenergy crops
surplus forest growth
162
234
281
89
2
49
FIGURE 1. Total bioenergy production potential in 2050, agricultural
production systems scenarios 1 to 4. The numbers above the bars
are EJ/yr. For more background information, see appendix and
Smeets [2004].
Technological developments can dramatically
also improve competitiveness and the
efficiency of bioenergy
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agricultural crops, economically and environmentally. Next
to their better GHG performance, soil carbon improvements
can be realized, while fertilizer and pesticide inputs are
generally lower. In addition, a recently published article in
Nature shows that actual biomass yields can be higher if a
large biodiversity of perennial crops is maintained [Tilman,
2006a, 2006]. If designed and managed wisely, biomass
plantations can be multi-functional and may generate local
environmental benefits. For example, willow plantations in
Sweden may be used for soil carbon accumulation, increased
soil fertility, reduced nutrient leaching, shelter belts for the
prevention of soil erosion, plantations for the removal of
cadmium from contaminated arable land (phyto-
remediation), and vegetation filters for the treatment of
nutrient-rich, polluted water [Brjesson and Berndes, 2006].
Short rotation woody crops (SRC) in general require
fewer inputs of herbicides and pesticides. Rich et al. [2001]
suggest SRC plantations are generally better for a wide
variety of wildlife than existing adjacent farmland around
the (former) ARBRE project area in the UK.When established
on agricultural land an increase in biodiversity usually result,
e.g. in some cases an increase in species richness occurs.
SRC is generally regarded as environmentally friendly and
many environmental groups view the technology favourably.
Also, in the UK, large-scale SRC monoculture is unlikely given
the nature of land tenure. Rather, the most likely scenario
may be a large number of small plots scattered over large
areas.
WHAT ARE THE MAIN CRITICAL ISSUES
REGARDING THE LARGE-SCALE PRODUCTION OF
BIOMASS FOR ENERGY?
The (sustainable) use of different types of land
(marginal and degraded, as well as good quality
agricultural and pasture land) depends on the success
of accelerating the improvements in current
agricultural management practices, and integrating
biomass production in a sustainable way into current
land-use patterns. Our understanding of how this can
be achieved from region to region is often limited.
Current experience with energy crops such as willow,
miscanthus and switchgrass is limited but can point to
how biomass production can gradually be introduced
in agriculture and forestry. In developing countries
(e.g. in sub-Saharan Africa) very large improvements
can be made in agricultural productivity.
5
However
better and more efficient agricultural methods cannot
not be implemented without investments, proper
capacity building and infrastructure improvements and
political stability. Much more experience is needed with such
schemes, in which the introduction of bioenergy can play a
pivotal role to create more income for rural regions by
additional bioenergy production. Financial resources generated
could then accelerate investment in conventional agriculture
and infrastructure and also lead to improved management of
agricultural land. Listed below are some of the critical issues
that require further research, particularly local demonstrations.
Competition for water
Water is a critical resource for both food and biomass
production and is in short supply in many regions. Water
scarcity in relation to additional biomass production has been
addressed to a limited extent. Berndes [2002] explains that
large-scale expansion of energy crop production would lead
to a large increase in evapotranspiration appropriation for
human uses, potentially as large as the present
evapotranspiration from global cropland. In some countries
this could exacerbate an already stressed water situation. But
there are other countries where such impacts are less likely to
occur. One major conclusion for future research is that
assessments of bioenergy potentials need to consider
restrictions from competing demand for water resources.
Improved agriculture must enhance water-use efficiency (e.g.
through breeding for drought tolerance and by using drip
instead of overhead irrigation).
Availability of fertilizers and pest control
Raising agricultural productivity can only be achieved when
better management and higher productivities are achieved.
This implies better plant nutrition and pest control methods.
Sound agricultural methods (agroforestry, precision farming,
biological pest control, etc.) exist that can achieve major
increases in productivity with neutral or even positive
environmental impacts. However, such practices must be
secured by sufficient knowledge, funds and human capacity.
Land-use plans taking biodiversity and soil quality into account
Criticism is raised by various recent studies (e.g. by the MNP
[Brink et al., 2006] and the European Environment Agency
Second-generation technologies will favour
perennial crops such as eucalyptus, poplar,
miscanthus and sugar cane
ABOVE Palm kernels stacked for testing at a palm oil processing plant in Malaysia RALPH
SIMS RIGHT Most ethanol in the US is currently made from maize (corn) a relatively
inefficient method of manufacture. New technologies will improve the situation NREL
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[EEA, 2006]) that further intensification of agriculture and
large-scale production of biomass energy crops may result in
a losses of biodiversity compared to current land-use, even
when international standards for nature protection
(10%20% of land reserved for nature) are respected [Smeets
et al., 2004]. Perennial crops have a better ecological profile
than annual crops and the benefits with respect to
biodiversity can be achieved when perennial crops are
displaced. However, insights into how biodiversity can be
optimized and improved compared with current land-use,
when sound landscape planning is
introduced, are limited and urgently
require additional research. Overall,
experience from Sweden and the UK
with integration of willow production,
indicates there is a positive effect. Sao
Paulo State has strict standards for sugar
cane production areas and which appear
to ensure that its production does not
necessarily lead to a loss in biodiversity.
More regional efforts, experience and
site-specific solutions are needed.
Regarding improvement of soil quality,
Lal [2006] shows how some biofuel plantations e.g. Jatropha,
Pongamia, can contribute to restore degraded soil and
sequester carbon in biota and soil.
The use and conversion of pasture land
As discussed above, much land can be released when
production of meat and diary products is done in more
intensively (including partial zero-grazing).This would allow
grassland currently used as pasture to be used more
efficiently. Grasslands could then be used for production of
energy grasses or partly be converted to woodlands. Such
changes in land-use functions have been poorly studied.The
impacts of such changes should be closely evaluated.
Socio-economic impacts
Large scale production of modern biofuels, could provide a
major opportunity for many rural regions around the world to
generate income and employment. Given
the size of the global market for transport
fuels, the benefits could be vast, e.g. by
reducing oil imports and exporting
biofuels. Nevertheless, it is far from certain
that those benefits will accrue to the rural
populations and small-holder farmers.
Also, the net impacts for a region as
whole, including possible changes and
improvements in agricultural production
methods, should be kept in mind when
developing biomass and biofuel
production capacity. New biofuel
production schemes should ensure the involvement of the
regional stakeholders, in particular the farmers. Worldwide
experience with such schemes needs to be developed.
Macro-economic impacts of changes in land-use patterns
Although the analyses discussed indicate that both world
food demand and additional biomass production can be
A growing role BI OMASS
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reconciled, more intensive/efficient land-use and additional
land-use for biomass production may lead to macro-
economic effects on land and food prices. Although this is
not necessarily a bad outcome as it could be vital for farmers
to enable investment in current production methods, the
possible implications on macro-economic level are poorly
understood. Again, more work is needed to identify the
speed at which changes should be implemented to avoid
undesired economic effects.
6
Net GHG emissions including indirect land-use effects
Connected to the previous issue are impacts on overall GHG
emission rates related to (biomass-induced and general)
changes in land-use. As pointed out previously by Cameron,
the pressure on land is often huge in many developing
countries such as Malaysia and Indonesia, and to a lesser
extent Brazil.
7
In these cases, increasing production of palm
oil and soy are one of the main drivers of deforestation, and
GHG emissions arising from forest clearance by fire, and
changing soil carbon stocks with different types of land use.
If biomass energy crops increase pressure on land, these
problems could be exacerbated, both directly and indirectly.
For the direct cases, more research is required on GHG
balances when perennial energy crops replace pastures,
(degraded) farm land or forests the choice of the right
cropping system is crucial. Regarding the induced impacts, it
is clear that land-use change patterns are complex, and that
whole-system GHG emissions have to be assessed.
TACKLING THE ISSUES
DEVELOPMENT CRITERIA FOR
SUSTAINABLE BIOMASS
PRODUCTION
With the increasing international
trade in biomass resources, concerns
have been growing about whether all
imported biomass streams can be
considered sustainable. The
production and removal of biomass
can have negative impacts on
ecology and land-use, as well as socio-
economic impacts and GHG
emissions. Recently, these aspects
have been recognized by policy
makers, scientists and the industry.
Various preliminary efforts have been
undertaken to move towards
certification and track-and-trace
systems for imported biomass.
Examples include the development
of the Green-Gold-Label, a biomass
tracking system developed by Essent [CU, 2006], the
FairBiotrade research project carried out by Copernicus UU
(see e.g. Lewandowski et al., 2005, Damen and Faaij, 2004
and Smeets and Faaij, 2006), and various other studies on
sustainability and certification of biomass (see e.g. Tipper et
al., 2006; WWI, 2006; WWF, 2006 Hamelinck, 2004).
Furthermore, the initiatives such as the IEA Bioenergy Task
40 on International Sustainable Bioenergy Trade (see
www.bioenergtrade.org), the FAO International Bioenergy
platform (IBEP) or the UNCTAD Biofuels initiative
demonstrate the increased attention to global biomass trade
and sustainability.
The need for biomass sustainability criteria has also been
recognized in several EU countries and by different
international bodies. Current examples are:
Ongoing development of GHG and sustainability criteria
for biomass transportation fuels under the renewable
transport fuel obligation (RTFO) in the UK [Archer,
2006].
Existing regulations energy/CO
2
balances and
sustainability criteria for Belgian biomass for co-firing
[Ryckmans, 2006].
The EU strategy for biofuels [EC, 2006], in which
standards to ensure the sustainability of biofuel
feedstocks are explicitly mentioned.
More in general, the issues surrounding the production of
palm oil in Southeast Asia and soy beans in South America
have triggered the establishment of round tables where
all stakeholders in the chain are represented.
The Dutch government has one of the most advanced
policies for developing sustainability criteria for biomass. In
the autumn of 2005, awareness regarding the necessity of
biomass sustainability criteria increased when
environmental NGOs condemned the use of palm oil for
green electricity production in natural gas-fired power
plants. While the short-term policy reaction was to reduce
More research is required on GHG balances
when perennial energy crops replace pastures,
(degraded) farm land or forests
Traditional crops such as olives can provide oil for biodiesel production, and also wood
which can be converted to biofuels by second generation technologies
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feed-in tariffs for palm oil, the urgent need for biomass
sustainability criteria was recognized by the Dutch
parliament. Thus, a commission was established in January
2006 to develop a system for biomass sustainability criteria
for the Netherlands.
The main starting points of the commission were
[Cramer et al., 2006]:
Development of a long-term vision about biomass
sustainability (20202040).
Based on this vision, development of concrete,
measurable biomass sustainability criteria in the short
term.
Development of a universal framework of sustainability
criteria, with the emphasis on non-food applications
(chemical industry, fuels, energy production). The
sustainability criteria and indicators developed could
also be of importance to judge food production on
sustainability aspects. It is acknowledged that biomass,
feed, fuel and fodder can barely be regarded separately.
Compliance with international treaties, EU regulations,
WTO rules etc.
Development of short term minimum sustainability
demands and stricter criteria in the longer term.
Sustainability criteria are valid for both biomass energy
crops and biomass crops, and both applicable for
imported biomass and domestic biomass.
Based on these starting points, consultations with Dutch
stakeholders and scientific support, the commission
developed a number of biomass sustainability criteria and
indicators/procedures for the short-term (2007) and the
medium term (2011). These included GHG reductions of at
least 30% (rising to 50% by 2011), no decline of biodiversity or
valuable ecosystems, prevention of soil erosion, preservation
of quality and quantity of surface water and ground water
increased human welfare and no reduction in food supplies,
etc., see appendix for more details [Cramer et al., 2006].
While it is clear that for most of such criteria, indicators
and procedures still need to be developed, these approaches
show promise. What is more important to emphasize is that
such criteria cannot be developed overnight.The procedure is
to set minimum levels of sustainability criteria now, and use
pilot cases to build up experience of how sustainability
criteria can be met under diverse conditions. Also, the
proposed sustainability goes far beyond many other sectors.
This could easily backfire on biotrade if too many restrictions
are put in place, making an evaluation period even more
important. In addition, some sustainability criteria may
actually conflict with each other and, the costs of meeting the
sustainability criteria will have to be evaluated and if
necessary the criteria and indicators can be adapted and
improved.
8, 9
This was the approach followed in the Dutch
case, and a four-year evaluation period has been established.
Finally, a crucial aspect of such criteria is enforcement.
Examples from FSC-certified wood show that such systems
are effective but not flawless. Frequent field visits are vital
to ensure compliance with criteria, as is stakeholder
participation both during the set-up and monitoring of
certification systems.
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With this in mind, our mission here at
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THE ROLE OF INTERNATIONAL BIOENERGY TRADE
After discussing the potentials and pitfalls of global
bioenergy production we want to emphasize, be it briefly,
the importance of international bioenergy trade as one of
the main drivers behind development of the major
transitions required. As can be seen in Figure 1, main supply
regions are generally not situated in densely populated and
highly developed areas where demand is likely to be large.
These three examples highlight the rapidly emerging trade
in bioenergy.
Pellet exports from Canada to European countries and the
USA
The export of wood pellets from Canada has grown
exponentially in the past several years (see Figure 2),
primarily from the west coast. There are at least 11 pellet
plants in Canada, exporting to Europe and the US [Bradley,
2006]. Expectations are that production will exceed one
million tonnes in 2006.
Ethanol exports from Brazil to Japan, the USA and Europe
Figure 3 shows Brazils ethanol trade since 1970. Market
opportunities and constraints have determined exports and
imports. A substantial amount of ethanol was imported
during the 1990s, first during the supply shortage of ethanol
(19901991) and second when international sugar markets
were favourable for exports (19931997). Traditionally,
Brazilian exports of ethanol have been oriented for beverage
production and industrial purposes but, recently, trade for
fuel purposes has increased significantly, as illustrated in
Figure 3. In 2004 exports reached 2.5 billion litres and it is
estimated that almost the same amount was exported in
2005 [Walter et al., 2006].
Palm oil and palm kernel shell exports from Malaysia and
Indonesia to Europe
Over the last few years, increasing amounts of palm kernel
shells and palm oil have been co-fired in European power
plants. While no exact statistics are available, substantial
imports have been occurring in the UK and the Netherlands
[Junginger et al., 2006, Rosillo-Calle & Perry, 2006].
These examples show how international bioenergy trade
helps to meet the demand for transport biofuels and for
electricity from biomass. The future vision of global
bioenergy trade is that it develops over time into a real
commodity market which will secure supply and demand
in a sustainable way. The development of truly international
markets for biomass may become an essential driver to
deliver the biomass potentials discussed above, and to
exploit a resource which is currently under-utilized in many
world regions. Exporting biomass-derived commodities to
supply the worlds energy markets could provide a stable
and reliable demand for rural communities in many
countries, particularly developing ones, thus creating an
important incentive for rural investment that is much
needed in many areas in the world. Thus, we see trade as an
essential prerequisite for viable bioenergy development,
with the practical monitoring of sustainability as a key factor
for long-term security.
SO WHAT CAN BIOMASS-FOR-ENERGY DELIVER?
The techno-economic potential of biomass resources for
energy and industrial materials can be very large in theory,
twice the current global energy demand, but more likely
around 400 EJ without competing with food production,
protection of forests and nature. Roughly, one quarter
(100 EJ) could be provided by efficiently exploiting residues
from agriculture and forestry and from organic waste.
Another 100 EJ could stem from the rehabilitation of
0
800
700
600
500
300
100
T
o
n
n
e
s
(
t
h
o
u
s
a
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d
s
)
1997 1998 2000 2002 2004 1999 2001 2003 2005 2006
400
200
Capacity Production
US sales Overseas sales
Domestic sales
FIGURE 2. Pellet production and export in Western Canada.
Source: Bradley, 2006
1970 2001
3000
3000
2000
0
2000
B
r
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z
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'
s
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t
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a
d
e
(
m
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l
i
o
n
l
i
t
r
e
s
)
1975 1985 1995 1980 1990 2000
1000
1000
Imports Exports
FIGURE 3. Trade in ethanol in Brazil 19702005.
Source: Walter et al., 2006
We see trade as an essential prerequisite for
viable bioenergy development, with practical
sustainability as a key factor
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degraded land. Note that these two potentials do not require
additional land. The remaining half could come from
dedicated energy crops on current agricultural and pasture
lands, corresponding to about 1 billion ha worldwide.This is
some 8% of the global land surface and one-fifth of the land
currently in use for agricultural production. If the global
bioenergy market is to develop to supply 400 EJ per year
over this century (compared with 430 EJ current total global
energy use), the value of that market assuming $4/GJ would
amount to some $1.6 trillion per year. Logically, not all
biomass will be traded on international markets, but such an
indicative estimate how important this market could
become for rural areas worldwide.
These numbers are impressive, perhaps daunting to
some. Major transitions are required to exploit this
bioenergy potential, which can only be reached in the
second half of this century. Improving agricultural land-use
efficiency in developing countries (i.e. increasing crop yields
per hectare) is a key factor. It is still uncertain to what
extent, and how fast, such transitions can be realized in
different regions. Significant problems are posed by the lack
of capital, skills, land tenure, etc., all of which are major
impediments to agricultural modernization. Under less
favourable conditions, the (regional) bioenergy potentials
could be quite low.
Biofuels are not the panacea for solving the global energy
situation, but should be seen as part of the solution. While
bioenergy can, in theory, provide a substantial part of the
future global energy supply, realizing these potentials will
require profound changes, especially in agriculture.There are
potential alternatives to bioenergy that can also play a major
and sometimes synergistic role, such as solar, geothermal,
wind, etc. Even though there are a number of critical issues
involved with the large-scale production of biofuels, we also
see opportunities for many countries: for example, restoring
degraded soils using biomass could result in environmental
gains and exporting refined biofuels can be high-value
export products allowing re-investment in poor rural areas.
Ensuring the sustainability of biomass production is a
major challenge, but also a great opportunity. Change means
not only threats, but also opportunities. The challenge is to
be able to implement the change in intelligent and benign
ways. After all, this could be a first large-scale commodity
market where there is considerable scope for implementing
sustainability criteria which, in turn, could have positive
impacts on food and fodder commodities. At the same time,
global bioenergy trade is growing rapidly, and annual
increases of 100% of traded biomass volumes are becoming
reality. Therefore, the rapid early development and
implementation of sustainability frameworks is crucial.
Certification, preferably starting from an internationally
accepted framework but applied and verified at a regional
level with strong stakeholder participation, seems to be a
feasible way to achieve this. Showing best-practice
operations through export-oriented pilot projects in a
diversity of developing countries and different rural areas is
crucial in the short term. Good examples of successful
business models and sound sustainability frameworks can
guide market forces in a sustainable direction. If we succeed,
we may be looking at the first stages of the Green OPEC (or
BIO-PEC) of the future!
Martin Junginger and Andr Faaij are based at the Department of
Science, Technology and Society in the Copernicus Institute at University
of Utrecht in the Netherlands.
e-mail: m.junginger@chem.uu.nl and a.p.c.faaij@chem.uu.nl
Frank Rosillo-Calle and Jeremy Woods are based at the Centre for
Environment Policy at Imperial college, London.
e-mail: jeremy.woods@imperial.ac.uk
The authors would also like to thank Bo Hektor for valuable comments.
While the authors are all members on IEA Bioenergy Task 40, the
arguments and visions expressed in this article are not necessarily those
of the IEA Bioenergy Agreement. For more information on IEA Task 40,
see www.bioenergytrade.org.
FOOTNOTES
1. Note that traditional use of dung as fuel should be discouraged. The dung
potentials shown here mainly stem from intensive agriculture, which offers
opportunities for fermentation and production of biogas.
2. The range of the land area required to meet the potential additional global
demand for bio-materials (such as bio-plastics or construction materials) was
not included in Table 1. The energy supply of bio-materials ending up as waste
can vary between 2055 EJ (or 11002900 Mt dry matter) per year. This
range excludes cascading and does not take into account the time delay
between production of the material and release as (organic) waste.
3. For example, leaving aside (at this point) the wider environmental and social
implications, well-managed sugarcane grown in Brazil's cerrados fixes between
20 and 30 oven dry tonnes of biomass per ha/yr compared to undisturbed
'natural' vegetation which could fix between 0 and 5 odt/ha/year when
mature. Land management is a crucial factor therefore.
4. Note that Brazilian ethanol from sugar cane is the only biofuel currently
commercially available, which achieves much higher GHG emission reductions,
i.e. 80%90% (IEA, 2004). Also other current biofuels from crops in tropical
regions (e.g. biodiesel from jatropha, palm oil etc.) perform better than biofuels
from crops grown in temperate regions).
5. Current agricultural methods deployed in sub-Saharan Africa are is often
subsistence farming, with low yields per hectare.
6. For a more detailed treatment of the biomass vs. fuel debate, see for example
the SEI Newsletter [June 2005].
7. See the March/April edition of Renewable Energy World.
8. For example modernization of agriculture may make the necessity of very hard
physical labour obsolete. At the same time greater mechanization will lead to
less employment.
9. Examples of other certification system show that depending on the local
situation and specific criteria, additional costs may vary widely, e.g. 8%65%
(Junginger, 2006).
Due to space restrictions, all references and Tables 2 and 3 do
not appear here. However they have been included in a digital
copy of this article, which can be requested by emailing the
authors. It will also be available to download at www.renewable-
energy-world.com.
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Always a sunbeam ahead
The SolarMax web portal is another innovative service
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for visualisation of energy yields, CO
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payment information. Data can be exported to other
programs.
Status and error messages displays are available in
conjunction with the MaxControl monitoring option.
Overview options enable consolidation and compari-
son of several systems.
Despite its advanced functionality, the SolarMax Web
Portal is simple to operate. It offers informative analy-
sis and graphical or tabular display options.
Trust is good. Monitoring and visualisation is better.
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4-8 September 2006,
Dresden
Hall 2 / Stand 19
21st European
Photovoltaic Solar Energy
Conference and Exhibition
Sponsoring Exhibitor
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Volker Quaschning describes the basics of direct solar electricity
generation using photovoltaic systems, looking at the different cell and
module types and the related technology.
The history of photovoltaics goes back
to the year 1839, when Becquerel
discovered the photovoltaic effect, but no
technology was available in the 19th
century to exploit this discovery. The
semiconductor age only began about 100
years later. After Shockley had developed
a model for the pn junction, Bell
Laboratories produced the first solar cell in
1954; the efficiency of this, in converting
light into electricity, was about 5%.
PRINCIPLE OF SOLAR CELLS
Electrons and the holes they leave behind
are, respectively, negative and positive
charge carriers, which usually appear in
pairs within solid matter. Semiconductors
are used to produce solar cells, and the
characteristics of the semiconductor
material make it easy for incoming photons
of sunlight to release electrons from the
electron hole binding. Leaving the holes
behind them, the released electrons can
move freely within the solid.
However, these movements have no
clear direction; to make use of the
electricity, it is necessary to collect
electrons. The semiconductor material is
therefore polluted with impure atoms. Two
different kinds of atom produce an
n-type and a p-type region inside the
semiconductor, and these two neighbouring
regions generate an electrical field (see
Figure 1). This field can then collect
electrons, and draws free electrons
released by the photons to the n-type
region. The holes move in the opposite
direction, into the p-type region. However,
not all of the energy from the sunlight can
generate free electrons. There are several
reasons for this. Part of the sunlight is
reflected at the surface of the solar cell, or
passes through the cell. In some cases,
electrons and holes recombine before
arriving at the n-type and p-type regions.
Furthermore, if the energy of the photon is
too low which is the case with light at
long wavelengths, such as infrared it is
not sufficient to release the electron. On the
other hand, if the photon energy is too high,
only a part of its energy is needed to
release the electron, and the rest converts
to heat. Figure 1 shows these processes in
a photovoltaic (PV) cell.
The model shown in Figure 2 provides a
figurative demonstration of the way in
which a solar cell works. The model
consists of two flat levels; the first level has
plenty of holes, and these are filled with
water. Rubber balls then fall onto this level,
and water splashes from the holes.
Although some water splashes back onto
the first level, some reaches the second
level; it flows from there to a waterwheel
that drives a dynamo and generates
electricity. On the first level, water flows
back into the holes, to be hit again by
further rubber balls. In this model the
rubber balls represent the photons of
sunlight, the two levels are the n-type and
p-type regions, and the water signifies the
electrons.
SOLAR CELL MATERIALS
Various semiconductor materials are
suitable for solar cell production; however,
silicon is the most frequently used material
today, being employed in the manufacture
in the majority of solar cells. The second
most common chemical element in the
Photovoltaic systems FUNDAMENTALS
Photovoltaic systems
Technol ogy f undament al s
FIGURE 1. Processes occurring in an irradiated PV cell
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earths crust (after oxygen), silicon can
mainly be found in quartz sand (SiO
2
). A
reduction process is used to extract silicon
from the quartz sand at high temperatures,
and the next step is to remove remaining
impurities from the polycrystalline silicon.
Polycrystalline silicon crystals are oriented
in different ways, separated by grain
boundaries, which introduces some
efficiency losses. Seeding a single crystal at
high temperatures can transform the
polycrystalline silicon into monocrystalline
silicon, and, with no grain boundaries
present in the resulting material, losses
within a solar cell are thus reduced.
However, more energy is needed to
produce monocrystalline silicon, and it is
more expensive.
Besides crystalline silicon, thin-film
modules present promise as a future
solution. These can be made of amorphous
silicon and other materials such as
cadmium telluride (CdTe) or copper indium
diselenide (CuInSe
2
, or CIS). Thin-film
modules can be produced using only a
fraction of the semiconductor material
necessary for crystalline cells, and their
development potential is therefore very
high. However, it is not yet clear which
material will dominate future markets. Most
experts say that crystalline solar cells will
continue to dominate for the rest of this
decade, but thereafter, other materials
could become more important, provided
they can be produced more economically.
SOLAR CELL PARAMETERS
Most photovoltaic data sheets present a lot
of parameters; the most common terms
relating to crystalline solar cells will be
explained here.
The solar cell generates a current, and
this current varies with the cell voltage.
Currentvoltage characteristics usually
show this correlation. When the voltage of
this solar cell is zero described as a
short-circuited solar cell the short circuit
current I
SC
, proportional to irradiance on the
solar cell, can be measured. The I
SC
rises
with increasing temperature, though the
standard temperature for reporting short
circuit currents is usually 25C. If the cell
current is equal to zero, the solar cell is
described as open-circuited. The cell
voltage then becomes the open circuit
voltage, V
OC
. The dependence of V
OC
on
the irradiance is logarithmic, and decreases
at a faster rate with rising temperature than
the I
SC
increases. Therefore, the solar cells
maximum power and the cell efficiency
decrease with rising temperature. For most
cells, a temperature rise of 25C causes a
power drop of about 10%.
The solar cell generates its maximum
power at a certain voltage. Figure 3 shows
the currentvoltage and powervoltage
characteristics. It shows clearly that the
power curve has a point of maximum
power, called, quite straightforwardly, the
maximum power point, MPP. The
maximum power point voltage, V
MPP
, is less
than the open circuit voltage, and the
current I
MPP
is lower than the short circuit
current. At the MPP, current and voltage
have the same relation to irradiance and
temperature as the short circuit current and
open circuit voltage.
In order to make solar cells and
modules comparable, MPP power is
measured under standard test conditions
(STC): irradiance at 1000 W/m
2
, a
temperature of 25C, and air mass (AM) 1.5.
The power generated by the solar modules
in real weather conditions is usually lower,
hence STC power has the unit Wp (Watt
peak). In terms of dependence on
irradiance, the current dominates the
devices behaviour, so that the MPP power
is nearly proportional to the irradiance.
Solar cell efficiency is the ratio of the
maximum electrical solar cell power to the
radiant power on the solar cell area.
Saleable crystalline solar cells now reach
efficiencies up to almost 20%, but in the
laboratory, efficiencies of more than 25%
are possible. The efficiencies of thin-film
solar cells are, however, lower.
PRODUCTION OF SOLAR MODULES
Solar cells are not normally operated on an
individual basis, due to their low voltage,
and in PV modules, cells are mostly
FUNDAMENTALS Photovoltaic systems
FIGURE 2. Modelling the principle of solar cell operation
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connected in series. Single, unprotected
crystalline silicon solar cells can also be
damaged rapidly, due to climatic
influences, so to avoid this, several
crystalline cells of edge length 1015 cm
(46 inches) are combined in the form of
a solar module for protection. The front
cover of this is formed by glass with a
low iron content, and the back cover
consists of glass or plastic. Between the
front and back covers, the solar cells are
embedded within plastic, usually EVA
(ethylene vinyl acetate), which is cured at
temperatures of 100C. This process is
called lamination. A frame is in some
cases added to the finished modules,
while a junction box is used to protect
the contacts from water, and to mount
bypass diodes inside.
If just one cell of a large number of
series-connected cells becomes shaded,
then the shaded cell starts blocking to
current, and the whole string then stops
generating power. The bypass diode
cannot avoid the disproportionate power
loss, but can avoid possible damage to
the shaded cells. Therefore, partial
shading of PV generators should be
avoided whenever possible.
The base for thin-film modules is a
substrate. In most cases, this is made
of glass or a metal foil, and spray and
deposition processes then add the
solar cell materials and cell contacts. The
solar cells are interconnected directly in
series within the module. Finally, the
samples are then either laminated or
coated with a polymer, to protect the
solar module from climatic influences.
FIGURE 3. Currentvoltage and powervoltage solar cell characteristics, showing MPP
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Saft Ni-MH batteries are totally sealed and are more compact
than Ni-Cd batteries. Maintenance-free, they are ideal for
remote applications and are easy to transport. For example,
Saft Ni-MH batteries are linked to solar panels installed in
isolated lighthouses.
Saft Li-ion is the technology of the future for this maturing
market: our new Intensium Flex product is a complete battery
system - more than just a battery. It has been launched and
will be tested in the market.
www.saftbatteries.com
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STAND-ALONE SYSTEMS
Connection of PV modules in series,
parallel or seriesparallel combinations
builds up the solar generator (as is shown
in the photograph below left). Consumers
are hardly ever connected directly to the
solar generator, however, as in reality
photovoltaic systems are more complex.
In the absence of any kind of storage,
there will be periods without any power
for a system solely powered by
photovoltaics, which is clearly not
desirable.
Today, the most common method for
electricity storage is the leadacid
battery, and the main reason for this is
cost. The car industry in particular prefers
lead batteries. So-called solar batteries
have a slightly modified structure,
compared with car batteries, in order to
achieve longer lifetimes. The simplest
battery system consists only of a PV
generator, a battery and the load.
Rechargeable batteries in simple battery
systems, with the PV generator and load
directly connected to the battery, are not,
however, protected against deep
discharge or overcharging. Therefore,
such systems should only be chosen if
negative operating conditions can
definitely be avoided otherwise, the
battery can be damaged very quickly. As
a consequence, most battery systems
use a charge controller; today, most of
these are parallel charge controllers, as
seen in Figure 4. This charge controller
measures the battery voltage and
disconnects the load if the battery is
nearly empty; if the battery is full, the PV
generator is short-circuited, and in this
case a blocking diode avoids battery
discharge. An inverter can be also added
to the battery system to drive alternating
current (AC) loads.
GRID-CONNECTED SYSTEMS
A large number of photovoltaic systems
installed in industrial nations today are grid-
connected. An inverter converts the direct
current (DC) voltage of the modules to the
two-phase or three-phase AC voltage of the
public grid. The inverter usually has an
integrated MPP tracker which operates the
PV generator at the maximum power point.
Photovoltaic systems FUNDAMENTALS
FIGURE 4. PV battery system with parallel charge controller
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However, the voltage and current
generated by the PV modules must fit
within the inverter range. If PV modules
are connected in series, their voltage
adds to the total voltage, whereas the
current of parallel PV modules adds to
the total current.
Photovoltaic inverters only operate at
rated power for a very few hours in any
year, as, due to changes in solar
irradiance, they work predominantly at
part load. Therefore, it is very important
that inverters have high efficiencies, even
when operating at these part loads. A
representative efficiency is used to
compare different inverters, the so-called
Euro efficiency. This is clearer than the
term average efficiency, and is the
average efficiency for typical European
irradiance conditions.
There are several different inverter
concepts that can be used when setting up
a PV system. As Figure 5 demonstrates,
these are:
a number of parallel PV module strings
connected to central inverters, which
can convert the PV generator power up
to several hundred kilowatts
only one PV string, with a power range
between 500 W and 2.5 kW, connected
to a string inverter.
module inverters, used to connect a
single module to the grid; these
operate well even if some modules are
shaded or do not have exactly the
same power, though general inverter
efficiencies decrease with smaller
systems.
MARKET AND ENVIRONMENT
One argument often used against
photovoltaics is the huge amount of
energy needed to produce PV systems,
with the idea that more energy is used to
produce systems than they can generate
in their lifetime. However, a multitude of
studies has proven that the energy
balance of PV systems is clearly positive
todays systems need between two and
five years to pay back the energy used in
production, depending mainly on annual
solar irradiation. Future thin-film systems
with lower material needs will reduce this
period significantly, and recycling of
photovoltaic modules is also possible.
The lifetime of todays PV modules is
expected to be 2530 years, and some
module manufacturers give 25-year
warranties.
By the end of 2005, more than 3100
MW of photovoltaics were installed
worldwide. Germany has the highest
installed capacity, followed by Japan and
the US; between them, these three
countries represent about two thirds of
global PV capacity. Market growth rates
in the last 10 years were between 20%
and 40%, and in recent decades (until
recently at least), there was a price
reduction of 20% when the market
volume doubled. As a result of this,
photovoltaic prices dropped by about
50% every decade.
It is not sure how long this price
reduction process will continue.
However, photovoltaics has the potential
to become competitive even with
conventional grid-connected systems, in
a few decades. The potential for PV is
huge, and in theory, PV could meet the
total global electricity demand. Along
with the other renewables, it is one of the
most important options for a future,
climate-compatible electricity supply.
Dr Volker Quaschning is author of Understanding
Renewable Energy Systems, published by James &
James/Earthscan. See www.earthscan.co.uk.
e-mail: volker@quaschning.de
web: www.volker-quaschning.de
To comment on this article or to see related
features from our archive, go to
www.renewable-energy-world.com
FIGURE 5. Connection of photovoltaic modules to inverters using a) central inverter; b) string
inverter; c) module inverter
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e-mail: info@krempel.com
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European Photovoltaic Solar
Energy Conference and Exhibition,
Dresden, Hall 2, Stand 11
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The business of optimism RENEWABLES
Renewable energy is a business based on sound technology and the
principles of sustainable living. As such it generates levels of enthusiasm
and passion that most industries can only dream about. Jeff Decker went
to one of the worlds biggest grass roots renewable energy fairs to get a
feel for this excitement.
O
ne of the worlds biggest renewable energy fairs
broke its attendance record in June, when more than
18,000 people travelled to Custer, Wisconsin. They
came for the technology, the optimism and the
business opportunities at the 17th annual Midwest
Renewable Energy Fair.
For three days innovators and distributors discussed the
present and planned the future while others learned to make
their homes and lives sustainable. Surrounded by experts and
visionaries, with practical and affordable energy alternatives
in every direction, you started to believe that society just
might overcome its energy troubles to create a responsible
and efficient way of life.
That wont happen though, predicted keynote speaker
James Kunstler. People seem to thing theyre entitled to this
smooth transition, he points out, but its liable to be a very
messy process. We do face tremendous problems with
reforming our way of life assuming that we want to
continue being civilized.
In his eyes (and in his bestselling book, The Long
Emergency: Surviving the End of the Oil Age, Climate
Change, and Other Converging Catastrophes of the Twenty-
first Century) modern urbanized society is using up
resources at full speed with no sensible plan for the future.
The big money is still on fossil fuels, he points out, and its at
the front of a doomed social plan. Experts say oil production
will peak sometime between 2005 and 2025. US production
peaked in 1971.
Kunstler sees enormous opportunities to replace fallen
economic and energy giants after the infrastructure fails,
while his peers see those chances today. His bleak predictions
struck home with the lunchtime audience. Some tried to
convince Kunstler he was wrong and a lot tried to convince
themselves.True or not, cataclysm or none, the people at that
energy fair believe a better world sits in the future. Its a more
humble and respectful lifestyle they plan to build with
knowledge and determination.
That will come with persistence and co-ordination,
believes Dr J. Drake Hamilton, science policy director for
Fresh Energy and the opening day keynote speaker. Her
nonprofit organization lobbies for policy change to foster
renewable energy growth, and she said events like the
Midwest Renewable Energy Fair can be a catalyst for action.
People need to know that theyre not just a voice in the dark,
and one of the great benefits of the Renewable Energy Fair is
to see that there are thousands and thousands of individuals
who feel the need to change to a renewable energy economy,
she said. Theyre very concerned about the number of
problems that are out there but theyre not sitting there
worrying.
In fact, theyre pushing a young economy to greater
heights, even as federal and local governments largely ignore
the calls for reform. I talked to hundreds of people at our
The business of
optimism
Wisconsins Midwest Renewable Energy Fair
Events like the Midwest Renewable Energy
Fair can be a catalyst for action
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display and after our talk, and theyre finding these barriers of
unsupportive polices, she explained. Just as public demand
led Nixon to create the Clean Air Act, Fresh Energy believes
voters can force change. I found at the energy fair a lot of
people are totally in line with cutting their own emissions and
are very supportive of these new clean technologies that we
have to adopt right away, but people that I spoke with had less
of an idea where the politicians are, and the politicians really
need to lead, she said.
This is important because government leadership provides
the key to market success, as witnessed in countries with
more successful renewable energy promotion policies.
Brazilian leaders have begun to hear the call and are
implementing broad transitions. Germany is investing public
funds in renewables and is the world leader in solar
electricity and wind power. Spain too is a leader in wind
power, according to the 2005 Global Status Report released
by the Renewable Energy Policy Network for the 21st
century. An estimated US$500 million goes to developing
countries each year as development assistance for renewable
energy projects, with $30 billion invested worldwide on
renewables in 2004. Renewable Energy sources generate
17% of the worlds primary energy (including large hydro),
with biomass burning at 9%.
The private sector has driven growth in the US, and has
helped Robert Geye of Milwaukee improve the sustainability in
his home and his landscaping business. For 15 years hes gone
to the Midwest Renewable Energy fair to find innovations he
could find nowhere else, even in this digital age. I find new
technology, and also learn how to put that technology into
existing buildings, he said. This year, Im looking into a
geothermal heat pump unit for heating and cooling the house.
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Solar cooker being demonstrated at the fair
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Hes constantly astounded by breakthroughs: Being able
to run McDonalds grease in your car and not need to burn
fuel anymore. Different types of wind generators. Different
types of solar panels. Different types of arrays and trackers.
Many of the fairs 100 workshops help him keep abreast
of the latest products and techniques. The many
technologies were compared against each other in
Economic analysis of RE systems. How to make and use
compressed earth blocks (CEBs) was one of many
construction sessions, while Bursting the hydrogen bubble
challenged the saviour notion of hydrogen-powered cars (i.e.
where does the hydrogen come from?). How to use biomass
from animal and human waste and turn a generator was a
session filled with farmers, while an online service guides
participants at home. Educators were welcome at private
sessions, such as Using RETScreen to model solar energy,
which outlined free software from the Canadian government
that helps predict savings from solar.
Geye said the bustling fair assures him that technical
support will always be on hand for the hardware he already
has and that hes not alone in his desire for sustainability.Its
almost like a big old ho-down, he chuckled, People are
wearing everything from old dresses to shorts to sport coats.
You name it, but everyones here looking for some kind of
knowledge and because of that theyre willing to
communicate with all others.
Todd and Louis Kleland drove there from Moose Lake,
Minnesota. You could stand in any one place and watch the
most interesting people walk by, Todd said. Everybodys
excited. Everybodys having a good time.That was even true
on the shows second day when major storms pushed every
attendee into the modern barns-turned-exhibit halls. As
tornadoes threatened to tear into the record crowd, the
people themselves chatted heartily with whoever was
crammed nearby.
Kleland found the optimism he knew as a youth. Its
really nice to see so many young people who are so active in
doing this stuff, he said, Theyre doing things that our
generation tried to do back in the 70s, but the momentum
wasnt there.Theres a lot of hopeful stuff here. Plus, you are
thinking, youve got to be doing some of this stuff yourself.
Youve got to be using less electricity and less gas and trying
to come up with alternatives.
The car of James Trocola burned unleaded petrol as he
drove north from Chicago for a fishing trip, but it was the
fairs first Clean Energy Car show that drew him to Custer.
Featuring converted diesels that run on vegetable oil and an
unconverted bus that runs on biodiesel, other vehicles such
as ethanol and electric cars were on sale, as were a collection
of hybrid racing buggies that burn as little as one US gallon
per 456 miles.
The solutions need to be more comprehensive
than just switching to new car fuels. The
people at the Midwest fair understood this
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There are a lot of sights to see, Trocola sighed. A new
electric bicycle has its engine tucked in the inner axle of the
front wheel, with an exceptionally efficient battery
unnoticed under the seat. Another used two giant solar
panels to power a traditional e-bike. Nearby massive sheets
of tin reached skyward and reflected sunlight to bake
cookies.
The passion impressed even Kunstler. I
thought it was a pretty impressive event, he
said. I met a lot of really good, thoughtful,
earnest people out there. Considering the
places that I go, and the number of people I
do meet, its reassuring to find people who
are tuned in to the appropriate scale. The
solutions need to be more comprehensive
than just switching to new car fuels, he
asserted. The people at the Midwest energy
fair, I think, understood this, so what you see
in an event like that is a lot different from the
nonsense that you see on CNN.
All across the grounds holistic
sustainability was in practice, with sustainable
building materials in use, organic food and a
heavy emphasis on recycling and composting.
Whats great about the fair, explained
Midwest Renewable Energy Association
Executive Director Tehri Parker, is we
actually focus on really practical things that are available to
people right now, as opposed to lot of conferences that are
really technical on things that could happen in the future.
Were sort of the pulse point of what the real people on the
ground are thinking. Exhibitors were asked to rate the value
of exhibiting at the fair. 56% said the value was excellent,
31% said it was good, and 13% said fair.
Its one of the top gatherings for experts to compare
notes, and those same people prepare workshops for
advanced and beginning homeowners. This year the
presenters were all American or Canadian, but she said that
each year between two and three percent of attendees are
from across oceans. In 2002, 37 companies were represented
and one year someone from all seven continents was at the
fair, she said.If you were from a European company and you
wanted to find out what was going on, sort of at the
grassroots level of renewable energy, the fair would be the
place to go, Parker stated.
That doesnt mean they need to come to this fair in
Custer, she said. One of the things that weve really been
working on is hoping other people run similar events in
their locales, so we dont have to use as many fossil fuels for
people to learn this stuff. It takes a year to plan each fair, she
said, and MREA has the experience to give guidance. Start
planning early. Look at what other people are doing. They
can contact us. Were happy to share our timeline and
budgets with them.
New fairs would have broad appeal, she said, as investors
begin to see the future. There are a lot of conferences
around the country focusing on renewable energy financing,
and those conferences are targeting big money investors and
where the future of the industry is going.
MREAs fair generates public interest and customers, said
James Polcyn, sales director of Phocos, Inc, a solar energy
product company from Arizona. Since that show, weve
noticed some of our dealers have been purchasing more
from us, he said. I dont want it to seem like its a sign that
were definitely catching up to places like Europe and things
like that, but theres definitely a larger subculture here
interested in renewable energy.
From a distributors perspective, its hard to feel a direct
RENEWABLES The business of optimism
ABOVE A modified motorbike with an electric engine is one of the more home made
innovations on display RIGHT James Kunstler gives a keynote speech
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boost from the show, warns Robin Gudgel,
president of MidNite Solar Inc. of
Washington State. You might make a
contact or show a product to a distributor,
and that distributor could take many, many
months before they act on what theyve
seen, he said. Because theyve already got
inventory and it may be difficult for them to
switch to a different manufacturer. A booth
costs $750 for manufacturers and
distributors and $375 for dealers and
cottage industries.
The fair is a big deal each year
regardless, he said, partly because of how it
tends to energize customers, stimulating
the renewable energy market.The novices,
theyre there the whole time. They find a
dealer and ask questions. Then that dealer
goes to their distributor. And they ask do
you carry MidNite Solar? Well, they only
like to say no so many times before they
feel like theyre missing out on something.
As the man who designed popular off-grid inverters for
20 years, Gudgel expects to deal with informed dealers. He
sees how the MREAs fair draws so heavily from the general
public. There are an awful lot of novices. People saying,
whats an inverter?That kind of gives an indication on the
level of education of the people.
He trusts his dealers to work with the public, but Gudgel
acknowledges momentum is building. Companies now need
to facilitate its growth, he said. A friend said, "you know, I
absolutely am convinced that 50% of my advertising budget
is totally wasted. The problem is, I dont know which 50
percent."
Where the public and where investors will go cant be
foretold, but its certain that more are expanding their
renewable portfolios. The yearning to become green is so
strong that utility customers pay a premium to support
renewable sources, even though no electrons are diverted
from windmills straight to their homes.
Several utilities are sponsors of the energy fair. Brian
Downey, spokesperson for Alliant Energy, said the fair is the
ideal opportunity to explain the renewable options and how
to integrate technologies into the grid.In that context, weve
got the same mission as the founders of the fair have, and
thats getting the word out on how individuals could more
wisely use energy, conserve energy, and how, as a society, to
move toward greater use of renewable energy.
Thats inevitable, said Franc Fennessey, local relations
manager for American Transmission Company, another fair
sponsor. His company is charged with connecting everyone
to the grid who has electricity to sell, and a lot of those
people go to the fair. And so do people who loathe
transmission lines, especially new ones. Northern Wisconsin
was recently the site of a prolonged battle over a new line
route. A lot of people feel that MREA and ATC are
incompatible, he said. Much to the contrary. We are very
much a part of the renewable story and we like to tell our
role in that.
They also compare notes on access issues. Siting
transmission lines, believe it or not, can be controversial.And
weve actually found a sympathetic audience, in part from
people who have found similar reaction to wind turbines,
Fennessey said.
As transmission companies and utilities move more and
more toward renewable energy sources, investment and
research will follow.Those at the fair are blazing those trails,
and even Kunstler thinks there are business opportunities in
renewable energy. Of course, he sees cash and credit first,
and later the revenues could be in barter form.
There will be enormous opportunities in rebuilding
local economic networks, the author said.The one thing we
cant really predict is what kind of social friction or discord
this is going to generate. There will be a lot of winners and
losers.
The courage and will in an ecologically aware society are
alive at the fair. Inside those farm stalls and exhibit halls are
people who understand their place among the Earths
creatures. Its centred on independent living and responsible
existence. If that lives and thrives anywhere then it may one
day be everywhere. Whether the devotion catches on will
determine whether wasteless and efficient technologies ever
dominate the market.
Jeff Decker is a freelance journalist based in the US
e-mail: reporterdecker@gmail.com
archive, go to www.renewable-energy-world.com
The fair is a big deal each year because of
how it tends to energize customers,
stimulating the renewable energy market
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I
expect that many of you, at some time in your lives, have
seen the Eiffel Tower in Paris, and perhaps as I did
have gone up to the top. It stands 324 metres above the
ground. Now imagine that Im at the top of the Eiffel
Tower and I throw down a rope. Someone down below
takes the rope and ties a knot around a beautiful Volvo car.
Then I, from my position up above, start pulling, hand over
hand, and lift that car all the way up. Imagine how much
energy that would take. Of course, I dont have that kind of
strength. But my point is: to do that job, all thats needed is
one decilitre of oil. Thats how powerful oil is. Thats how
strong the competitor to our bioenergy is.That gives you an
idea of the power source that we will do our best to replace.
It will not be easy, but that is the task.
I believe that we share a vision of the future. A vision in
which we have freed ourselves from dependence on oil.
When I speak about oil I am also speaking about other fossil
fuels. Just over six months ago I appointed an Oil
Commission here in Sweden.The goal that we have set is to
free ourselves from dependence on oil by 2020. We are not
going to do away with oil, but of our dependence on it.That
in itself is drastic enough.
If we are to succeed, bioenergy will play a crucial role. Its
not the entire solution, but a part of the solution. Working
technology in the field is already in operation. Not only do
you know how, you can show how.
There are many reasons why we should do away with
dependence on oil. The most important is the threat of
climate change. The threat from burning oil, coal and gas.
That cannot be ignored. It is, essentially, a deeply moral
question.A question of solidarity.This is because the poorest,
those who already live in the most vulnerable places around
the world, are those who will be hardest hit by climate
change. They are the ones who will be driven from their
homes. Here in Sweden we will also be affected but we will
manage better according to our forecasts. Not well, but
better than the poorest.
This is one dimension of solidarity. The other is between
generations. What message does it send that we inherited a
world from our parents that was in better shape than the
one we leave to our children? What right does our
generation have to destroy the climate?
This deeply moral question has only one answer. We do
not have that right.That same moral demands that we try to
do something about it.
But there is more to oil dependence than this moral
perspective. It also includes politics security politics and
economics. Dependence makes us vulnerable.
Sweden plans to free itself from its dependence
on oil by 2020. Here, Swedish Prime Minister Gran
Persson, who addressed the audience at World Bioenergy
earlier this year, explains why he is personally committed
to this important policy initiative.
Enduring freedom?
157
Enduring freedom? THE LAST WORD
the last word
Swedens plans to wean itself off oil
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There is a steady, dramatic increase in the demand for oil.
Not least due to the enormous growth that we see in
countries like China and India. Countries that still however,
together, only use half the amount of oil that the United
States does alone.
At the same time it is clear that the supply cant keep up
at the same pace.You dont need to be a Nobel Prize winner
to understand that this leads to an underlying pressure on
prices.To the point where oil becomes much too expensive
to burn.
The oil prices this spring, of over US$75, have resulted in
more and more people coming to realize how great our
dependence really is, and how vulnerable it makes us.
In May, the OECD adjusted its forecast for growth in the
OECD area upwards. Even so, we see stock market shifts all
over the world.The future is anything but secure.
This is the new age we are living in. Everything that we
now think is pointing in the right direction can, in a few
hours, vanish into thin air.All you have to do is take a look at
the energy issue to understand how vulnerable modern
society is.
Let us say that a large-scale terrorist attack takes place
somewhere in those regions that are vital to oil production.
How high might the price of oil rise, and how much can the
world economy take?
A year or so ago, Alan Greenspan, the former Federal
Reserve Chairman, said that the limit was $50 per barrel.The
price of oil then was about $30. Later, it reached $50. Now, it
has been up over $75.And no one will be surprised if it soon
will be over $100. And still the limit does not seem to have
been reached.
There is a limit of course but what it is, we dont know.
This is something we have no control over. If something
happens, it happens. And the impact is swift. If something
happens this afternoon, we see the results tomorrow, maybe
even tonight, in each and every one of our countries.That is
globalization and that is something we will continue to
live with.
That is how vulnerable the world is, due to its
dependence on oil and fossil fuels.
It is this vulnerability that I hope we can gradually
eliminate. To do that, we cannot make ourselves dependent
on overly large energy generation plants, nor too dependent
on certain types of energy. We must view the profitability of
investments in a long-term perspective. Do everything we
can to save energy, use it more efficiently. Everything we can
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All you have to do is take a look at the energy
issue to understand how vulnerable
modern society is
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do to replace oil is potentially a good deal, if not today, then
at least over time. I am also convinced that when we do so,
it will be good for jobs and good for businesses.
When I speak of freeing ourselves from dependence on
oil, it is not a dream about recreating times gone by. But
about new technologies and new solutions, although often
rooted in previously tested ideas. Its about new investments,
research and development. It is important to have this said.
It might be easiest to illustrate this with the transport sector,
where the truly difficult transition must occur.
Today, our cars run almost exclusively on fossil fuels. But
I do not believe in a future with fewer cars. I am old enough
to remember when my family bought its first car. It was
freedom to be able to travel outside of town. People in rich
countries are not going to want to give up the freedom that
cars provide. And in those countries where ordinary people
dont already have cars, people will want to get them. There
will be more cars in the future, not less I am convinced
about that. But cars dont have to use so much petrol. Its
possible that they dont even have to run on petrol, or on
fossil fuels at all. Therein lies the challenge. For the car
industry, for all of us.
Think about a country like Sweden. A country with two
car brands, Saab and Volvo beautiful cars and two truck
manufacturers, Volvo and Scania. The development of cars
and car engines for the new age will also be a question of
survival, for the industry, for jobs. Hardly any country is as
dependent on its automotive industry as Sweden per capita.
If the industry is to survive and develop, it must remain at
the forefront when new ideas are developed.You see, its not
the new technology I am afraid of, its the old. Its not the
new technology that creates unemployment and
environmental problems, its the old.
Its not the old technology that drives growth, its the
new. We already see this in the transport sector. More than
one out of every ten new cars sold in Sweden is a green car.
In the last year, sales of ethanol have grown by more than
500%. Billions are being invested in new production of
biofuels. We are working intensively to develop new
methods of producing ethanol, methanol, DME, biogas and
other fuels from biomass. For agriculture and forestry, the
future looks bright, but we have only started the process.We
do not know what lies ahead, and with a process of this
magnitude and these strong driving forces much will happen
that we can not foresee today. We have started the process
and that is the most important thing to do today.
In this way, climate policy also becomes industrial policy.
Its not the new technology I am afraid of,
its the old
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Poinger Strasse 2,
85551 Kirchheim-Heimstetten, Germany
TEL. + 49-89-2011177 FAX. +49-89-2012877
www.vosselectronic.de
Nanwa Nihonbashi Bldg., 2-16 4-Chome,
Nihonbashi-Muromachi, chuo-ku, Tokyo 103-0022, Japan
TEL. 03-3241-9141 FAX. 03-3241-9170
Energy policy also becomes employment policy. Environmental
initiatives also become initiatives for jobs and growth.
But if we are to get anywhere, it requires policies and
international policies. It requires the will. Otherwise it will
take too long.
Those who believe that this can be done without
politics, without policy levers, are wrong.
But we know the usual reaction every time an attempt is
made to introduce environmental taxes for instance or other
policy levers. That is regarded in the debate as a threat to
jobs, or a threat to competitiveness. To those who think this
way, I would just like to point out a little of what we have
accomplished in Sweden so far.
Since we came to power in 1994, after a three-year break
in opposition, energy intensity in society has been reduced
by almost 20%. Carbon dioxide emissions have been
reduced. We have introduced environmental taxes as well as
other policy levers. And at the same time we have
experienced a higher per capita growth rate than the EU, the
OECD or the United States as an average over the last
ten years.
So to say that high ambitions with regard to the
environment threaten jobs and growth is something I dont
set much store by.The fact is that the opposite is true.
It is clear that bioenergy will play an important role, both
for heating and for electricity production and as a motor
fuel. But it will require policy.Today, 25% of Swedens energy
needs are met by bioenergy.
And while as we see that replacing oil in motor fuel will
be an enormous and difficult challenge, the challenge
doesnt seem so great when it comes to heating. In this area
we dont have far to go. 40 years of expanding district
heating networks and other facilities, and the transition to
biofuels, mean that today, only 10% of housing is heated by
oil. And those 10% will disappear in the coming 15 years
Im convinced about that. At the same time as we are
developing the use of bioenergy, we are working to produce
more biomass.There are our forests, but in addition, we have
farmland that is not needed for food production. Farming for
energy purposes will grow in importance.
So even if weve already come a long way with bioenergy
in Sweden, we need to do more to increase our production,
our use and our research and development in the field. And
we will do more.
There are those who say that it doesnt matter what we
do in a small country like Sweden when pollution continues
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in other places. I definitely do not agree.
Of course we cant stop climate change on our own, but
we can show the way. What happens will depend on what
we all do in the EU, in North America. What is done in
countries like China, with its dynamic growth. Countries like
China can provide major assistance to all of us who want to
see new green solutions if the solutions they choose are
renewable.
I want Sweden to be a partner for all those who want to
invest in bioenergy. We have a great deal of experience that
we would be pleased to share. But we also need to listen and
learn.Thats why a conference like this one is so important.
Together, there is so much more we can do. I hope that
World Bioenergy can become an important meeting place
for the new bioenergy industry. And that the visit here in
Jnkping can be the starting point for a lot of good
business. Because its only when its based on good business
that progress in bioenergy can really gain momentum. I am
extremely afraid of a situation where we via subsidies build
up a new industry. We have the right in short perspective to
use pilot projects yes, but in long-term it must be based on
its own capacity, its own efficiency and it must be profitable.
And I believe it can gain momentum.
We live in a world with growing environmental
problems. But also with a growing awareness that we have to
do something about them. And along with that awareness
comes a growing demand for green energy, from companies,
from consumers and from decision-makers. I dont usually
make predictions about the future of different industries. But
I have to say that I am firmly convinced that bioenergy and
environmental technology will enjoy a long and very
prosperous future. If not the future of mankind will be sad.
So good luck in your extremely important job.
Prime Minister Gran Persson addressed the opening session of
World Bioenergy 2006 conference, held in Jnkping, Sweden. Also
present as VIP was Mr.Liu Zhen Ya, President of the State Grid
Corporation of China, and the Chinese Ambassador. Mr Persson gave a
special welcome to the Chinese delegation, saying he hoped that the
two countries can take an initiative for a major effort to develop
bioenergy in a strategic co-operation between Sweden and China
that could serve as a lever in global development.
Thanks to SVEBIO and Elmia for their co-operation in the preparation of
this article.
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Send details of your event to:
Renewable Energy World
e-mail: rew@jxj.com
2006
21st European PV Solar
Energy Conference and
Exhibition
Dresden, Germany
48 September 2006
WIP-Renewable Energies,
Sylvensteinstr. 2, 81369
Mnchen, Germany
Tel: +49 89 720 12 735
Fax: +49 89 720 12 791
e-mail: pv.conference@wip-munich.de
web: www.photovoltaic-conference.com
Power-Gen Asia 2006
Hong Kong
57 September 2006
PennWell Corp., PennWell
House, Horseshoe Hill, Upshire
Essex, EN9 3SR, UK
Tel: +44 1992 656629
Fax: +44 1992 656700
e-mail: powergenasia@pennwell.com
web: www.powergenasia.com
5th European Motor Biofuels
Forum
Newcastle, UK
1113 September 2006
Ms Marieke Bouman,
Europoint, PO Box 822, 3700
AV Zeist, the Netherlands
Tel: +31 30 6933 489
Fax: +31 30 6917 394
e-mail: mbouman@europoint-bv.com
www.europoint-bv.com/biofuels2006
5th Offshore Wind Energy
Conference
Hamburg, Germany
1213 September 2006
Mirja Rathlev, Germanischer
Lloyd WindEnergie GmbH,
Steinhoeft 9, 20459 Hamburg,
Germany
Tel: +49 40 31106 7016
Fax: +49 40 31106 1720
e-mail: mirja.rathlev@gl.group.com
web: www.windmesse.de
AWEA Wind Resource
Assessment Workshop
Syracuse, New York, USA
1314 September 2006
AWEA, 1101 14th Street NW,
12th Floor, Washington, DC
20005, USA
Tel: +1 202 383 2500
Fax: +1 202 383 2505
e-mail: windmail@awea.org
web: www.awea.org
3rd International Conference
on Biomass for Energy
Kiev, Ukraine
1820 September 2006
Conference on Biomass for
Energy, Institute of Engineering
Thermophysics, NAS of
Ukraine, 2a, Zhelyabov str.,
03057, Kiev, Ukraine
Tel: +38 044 456 94 62
Fax: +38 044 456 60 91
e-mail: conference@biomass.kiev.ua
web: www.biomass.kiev.ua/conf2006
The Washington Summit on
Climate Stabilization
Washington, DC, USA
1820 September 2006
Climate Institute, 1785
Massachusetts Avenue, NW,
Washington, DC 20036, USA
Tel: +1 202 547 0104
Fax: +1 202 547 0111
e-mail:
washington_summit@climate.org
http://washington_summit.climate.org/
Global Windpower 06
Adelaide, Australia
1821 September 2006
Jacqui Stuart, Australian Wind
Energy Association, PO Box
4499, Melbourne VIC 3001,
Australia
Tel: +61 3 9670 2033
Fax: +61 3 9602 3055
e-mail: jstuart@auswind.org
web: www.gw06.net
Power Expo 2006
Zaragoza, Spain
2022 September 2006
Feria de Zaragoza, Ctra. A-2,
km 311, E-50012 Zaragoza,
Spain
Tel: +34 976 764 700
Fax: +34 976 330 649
e-mail: info@feriazaragoza.com
web: www.powerexpo.org
Marine Renewable Energy
Conference
London, UK
21 September 2006
ICE Conferences, Institution of
Civil Engineers, One Great
George Street, London SW1P
3AA, UK
Tel: +44 20 7665 2313
Fax: +44 20 7233 1743
e-mail: conferences@ice.org.uk
web: www.iceconferences.com
8th Annual Renewable
Energy Finance Forum
London, UK
2526 September 2006
Euromoney Energy Events,
Nestor House, Playhouse Yard,
London EC4V 5EX, UK
Tel: +44 20 7779 8914
Fax: +44 20 7779 8945
e-mail:
energyevents@euromoneyplc.com
web: www.reff-london.com
Intercarbon International
Trade Fair and Congress for
Renewable Climate
Protection Projects and
Emissions Trading
Augsburg, Germany
28 September
1 October 2006
erneuerbare energien GmbH,
Unter den Linden 15,
72762 Reutlingen, Germany
Tel: +49 7121 30160
Fax: +49 7121 3016100
e-mail: group@energie-server.de
web: www.energie-server.de
Eolica Expo Mediterranean
2006
Rome, Italy
2830 September 2006
Artenergy Srl, Via Gramsci 57,
20032 Cormano (MI), Italy
Tel: +39 02 66306866
Fax: +39 02 66305510
e-mail: artenergy@artenergy.it
web: www.eolicaexpo.com
IHE Wood Energy 2006 co-
located with RENEXPO 2005
Augsburg, Germany
28 September
1 October 2006
erneuerbare energien,
Kommunikations- und
Informationsservice GmbH,
Unter den Linden 15, 72762
Reutlingen, Germany
Tel: +49 7121 30 16 0
Fax: +49 7121 30 16 100
e-mail: redaktion@energie-server.de
web: www.energy-server.com
International Congress on
Renewable and Alternative
Energies and Protection of
the Environment
Estoril, Portugal
24 October 2006
Excalibur Project, Avenida
25 de Abril, 17, 2 Frente,
2750-513 Cascais, Portugal
Tel: +351 21 483 75 14
Fax: +351 21 483 75 14
e-mail: excaliburoffice@sapo.pt
web: www.excaliburproject.com
AWEA Wind Power Finance &
Investment Workshop
New York City, New York, USA
45 October 2006
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Co-organised by
Supported by
American Wind
Energy
Association
Canadian
Wind Energy
Association
Chinese Renewable
Energy Industries
Association
Japanese
Wind Energy
Association
Japanese Wind
Power
Association
Sponsored by
18 - 21 SEPTEMBER
ADELAIDE, AUSTRALIA
MORE INFORMATION: www.gw06.net / www.auswind.org
Australias wind energy capital is proud to
host GLOBAL WINDPOWER 2006
South Australia is an internationally renowned wind, wine and wildlife destination. The Government
has already approved plans which will result in the state having the third highest percentage of
installed wind energy capacity in the world. Combined with the impending opportunities expected
from the new Asia-Pacic Partnership for Clean Development and Climate, Australia is in a
unique position to expand and export the wind energy industry througout the Asia-Pacic region.
GLOBAL WINDPOWER 2006 is a NOT TO BE MISSED EVENT providing an important forum for the global wind industry
to meet, share information, exhibit products and contribute to GWECs mission of ensuring that wind power continues
to establish itself as one of the worlds leading energy resources. GLOBAL WINDPOWER 2006 is expected to attract
representatives from all of the major wind energy continents.
BE BLOWN AWAY IN ADELAIDE
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Wind Energy
Association
Indian Wind
Turbine
Manufacturers
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AWEA, 1101 14th Street NW,
12th Floor, Washington, DC
20005, USA
Tel: +1 202 383 2500
Fax: +1 202 383 2505
e-mail: windmail@awea.org
web: www.awea.org
Renewable Energy 2006
Chiba, Japan
913 October 2006
Dr Masayuki Kamimoto
Tel: +81 29 862 6033
e-mail: inquiry@re2006.org
web: www.re2006.org
Sustainable Energy & Energy
Efficiency Expo
London, UK
1011 October 2006
Madeleine Johnson,
Event Connexions,
Mulberry House,
142 Berry Lane, Chorleywood,
Hertfortshire WD3 4BS, UK
Tel: +44 870 160 4540
Fax: +44 870 160 4541
e-mail:
madeleine.johnson@exposurecom.com
web: www.energy-expo.info
BWEA28 Annual Conference
and Exhibition Securing
Our Future
Glasgow, UK
1012 October 2006
Helen Barnes, BWEA,
1 Aztec Row, Berners Road,
London N1 0PW, UK
Tel: +44 20 7689 1968
Fax: +44 20 7689 1969
e-mail: helen@bwea.com
web: www.bwea.com/28
Forum of Environment and
Development
Bonn, Germany
1213 October 2006
Christina Paetzold, Forum
Umwelt und Entwicklung,
Am Michaelshof 810,
53117 Bonn, Germany
Tel: +49 228 35 97 04
Fax: +49 228 92 39 93 56
e-mail: ck.paetzold@forumue.de
web: www.forumue.de
Solar Power 2006
San Jose, California, USA
1619 October 2006
Solar Energy Industries Assoc.,
805, 15th St, NW, Suite 510,
Tel: +1 202 857 0898
Fax: +1 202 682 0559
e-mail: mbrownstein@seia.org
web: www.solarpowerconference.com
2006 CanWEA
Conference & Tradeshow
Winnipeg, Canada
2225 October 2006
Canadian Wind Energy
Association
e-mail: info@cancanwea.ca
web: www.canwea.ca
2nd International Conference
on JI Projects in Ukraine
Climate Change and
Business
Kiev, Ukraine
2325 October 2006
Organizing Committee,
Conference on JI Projects,
Institute of Engineering
Thermophysics, NAS of
Ukraine, 2a, Zhelyabov str.,
03057, Kiev, Ukraine
Tel: +38 044 456 94 62
Fax: +38 044 456 60 91
e-mail: conference@biomass.kiev.ua
web: www.biomass.kiev.ua/JIconf2006
The Great Wall World
Renewable Energy Forum
and Exhibition 2006
Beijing, China
2427 October 2006
CISSCT, Room 710,
No.86 Xueyuan Nanlu,
Beijing 100081, China
Tel: +86 10 62180145
Fax: +86 10 62180142
e-mail: information@gwref.org
web: www.gwref.org
Power-Gen India & Central
Asia 2006
New Delhi, India
2527 October 2006
Sally Stanley, PennWell
Corporation, Horseshoe Hill,
Upshire, Essex EN9 3SR, UK
Tel: +44 1992 656 615
e-mail: exhibitpgica@pennwell.com
web: www.power-genindia.com
Carbon Expo Asia Carbon
Market Trade Fair &
Conference
Beijing, China
2627 October 2006
Ms Sheryl Buan, Koelnmesse
Pte Ltd, Singapore
DIARY
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Tel: +65 6396 7180
Fax: +65 6294 8403
e-mail: s.buan@koelnmesse.com.sg
web: www.carbonexpoasia.com
PVTech Expo 2006
Milan, Italy
2629 October 2006
Artenergy Srl, Via Gramsci 57,
20032 Cormano (MI), Italy
Tel: +39 02 66306866
Fax: +39 02 66305510
e-mail: artenergy@artenergy.it
web: www.pvtech.it
China Power Technology
Conference
Beijing, China
31 October 1 November
2006
Tel: +86 10 85895156
Fax: +86 10 85892570
e-mail: power@zenithevents.com.cn
web: www.chinapower2006.com
EP China 2006 11th
International Exhibition on
Electric Power Equipment
and Technology
Beijing, China
31 October 3 November
2006
Watson Yau, Adsale Exhibition
Services Ltd, Unit 11011106,
11/F, Island Place Tower,
510 Kings Road, Hong Kong
Tel: +1 852 2811 8897
Fax: +1 852 2516 5024
e-mail: power@adsale.com.hk
web: www.2456.com/ep
5th World Wind Energy
Conference & Renewable
Energy Exhibition
Delhi, India
68 November 2006
World Wind Energy
Association, Charles-de-Gaulle-
Str. 5, 53113 Bonn, Germany
Tel: +49 228 369 40 80
Fax: +49 228 369 40 84
e-mail: secretariat@wwindea.org
web: www.wwec2006.com
Large Scale Integration of
Wind Energy EWEA Policy
Conference
Brussels, Belgium
78 November 2006
The European Wind Energy
Association, The Renewable
Energy House, 63-65 Rue d
Arlon, B-1040 Brussels,
Belgium
Tel: +32 2 546 1940
Fax: +32 2 546 1944
e-mail: ewea@ewea.org
web: www.ewea.org
Greenbuild 2006
Denver, Colorado, USA
1517 November 2006
U.S. Green Building Council,
1015 18th Street, NW Suite 805,
Tel: +1 202 828 7422
e-mail: info@greenbuildexpo.org
web: www.greenbuildexpo.org
RIO 6: World Climate &
Energy Event alongside
LAREF 2006: Latin America
Renewable Energy Fair
Rio de Janeiro, Brazil
1718 November 2006
RIO 6 LAREF
Organization Office,
a/c PML, Av. Rio Branco,
2518 andar, 20093-900
Rio de Janeiro RJ, Brazil
Tel: +55 21 22 33 39 53
Fax: +55 21 25 18 22 20
e-mail: info@rio6.com
web: www.rio6.com
DEWEK 2006 International
Technical Wind Energy
Conference
Bremen, Germany
2223 November 2006
German Wind Energy
Institute (DEWI), Ebertstr. 96,
26382 Wilhelmshaven,
Germany
Tel: +49 4421 4808 0
Fax: +49 4421 4808 43
e-mail: dewi@dewi.de
web: www.dewek.de
Power-Gen International
2006
Orlando, Florida, USA
2830 November 2006
Lisa Gasaway,
PennWell Corporation,
1421 S. Sheridan Road,
Tulsa, OK 74112, USA
Tel: +1 918 832 9245
Fax: +1 918 831 9875
e-mail: pgievent@pennwell.com
web: www.power-gen.com
11th National Renewable
Energy Marketing
Conference
San Francisco, California, USA
36 December 2006
www.renewableenergymarketing.net
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2007
Power-Gen Middle East
Manama, Bahrain
2224 January 2007
Samantha Malcolm,
PennWell Corp., Horseshoe Hill,
Upshire, Essex EN93SR, UK
Tel: +44 1992 656 619
Fax: +44 1992 656 704
e-mail: attendingpgme@pennwell.com
web: www.power-gen-middleeast.com
2007 European Renewable
Energy Policy Conference
Brussels, Belgium
2931 January 2007
European Renewable Energy
Council, Renewable Energy
House, 6365, rue dArlon,
B-1040 Brussels, Belgium
Tel: +32 2 546 1933
Fax: +32 2 546 1934
e-mail: conference@erec-renewables.org
web: www.erec-renewables.org/events
Renewable Energy Exhibition
Lyon, France
1417 February 2007
Arnaud Wigniolle, Sepelcom,
Avenue Louis Blriot, BP 87
69683 Chassieu cedex, France
Tel: +33 4 72 22 30 75
Fax: +33 4 72 22 32 58
e-mail: awigniolle@sepelcom.com
web: www.energie-ren.com
genera 07 Energy and
Environment International
Trade Fair
Madrid, Spain
28 February 3 March 2007
IFEMA - Feria de Madrid,
Parque Ferial Juan Carlos I,
28042 Madrid, Spain
Tel: +34 91 722 30 00
Fax: +34 902 22 57 88
e-mail: genera@ifema.es
web: www.genera.ifema.es
World Sustainable Energy
Days 2007
Wels, Austria
28 February 2 March 2007
O.. Energiesparverband,
Landstrae 45, A-4020 Linz,
Austria
Tel: +43 732 7720 14380
Fax: +43 732 7720 14383
e-mail: office@esv.or.at
web: www.esv.or.at
Power-Gen Renewable
Energy & Fuels
Las Vegas, Nevada, USA
68 March 2007
Kay Baker, PennWell
Corporation, 1421 S. Sheridan
Road, Tulsa, OK 74112, USA
Tel: +1 918 831 9102
Fax: +1 918 831 9875
e-mail: pgreevent@pennwell.com
web: www.power-gengreen.com
IWEC 2007 Irish Wind
Energy Association
Dublin, Republic of Ireland
2930 March 2007
IWEA, Arigna, Carrick-on-
Shannon, Co. Roscommon,
Republic of Ireland
Tel: +353 71 9646072
Fax: +353 71 9646080
e-mail: office@iwea.com
web: www.iwea.com
Hannover Messe 2007
Hannover, Germany
1620 April 2007
Hannover Messe AG,
Messegelnde, D-30521
Hannover, Germany
Tel: +49 511 89 0
Fax: +49 511 89 32626
web: www.messe.de
EWEC 2007 European Wind
Energy Conference and
Exhibition
Milan, Italy
710 May 2007
EWEA, The Renewable Energy
House, 63-65 Rue d Arlon,
B-1040 Brussels, Belgium
Tel: +32 2 546 1980
Fax: +32 2 546 1944
e-mail: info@ewec.info
web: www.ewec2007.info
15th European Biomass
Conference & Exhibition
Berlin, Germany
711 May 2007
ETA-Renewable Energies,
Piazza Savonarola, 10,
50132 Florence, Italy
Tel: +39 055 5002172
Fax: +39 055 573425
e-mail: eta.fi@etaflorence.it
web: www.conference-biomass.com
Russia Power
Moscow, Russia
2931 May 2007
PennWell Corp., Horseshoe
Hill, Upshire, Essex EN9 3SR,
USA
Tel: +44 1992 65 6600
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e-mail: russiapower@pennwell.com
web: www.russia-power.com
WINDPOWER 2007
Los Angeles, California, USA
36 June 2007
American Wind Energy Assoc.,
1101 14th Street, NW, 12th Flr,
Tel: +1 202 383 2500
Fax: +1 202 383 2505
e-mail: conference@awea.org
web: www.awea.org
estec 2007
Freiburg, Germany
1920 June 2007
German Solar Industry
Assosiation, Bundesverband
Solarwirtschaft e.V. (BSW),
Energieforum, Stralauer Platz
34, 10243 Berlin, Germany
Tel: +49 30 2977788 11
Fax: +49 30 2977788 99
e-mail: estec2007@bsw-solar.de
web: www.estec2007.org
Intersolar 2007
Freiburg, Germany
2123 June 2007
Solar Promotion GmbH,
Kiehnlestrasse 16,
75172 Pforzheim, Germany
Tel: +49 7231 58598 0
Fax: +49 7231 58598 28
e-mail: info@intersolar.de
web: www.intersolar.de
Power-Gen Europe 2007
Madrid, Spain
2628 June 2007
Vanesa Martinez, PennWell
Corp., Horseshoe Hill, Upshire,
Essex EN9 3SR, UK
Tel: +44 1992 656614
e-mail: attendingpge@pennwell.com
web: www.powergeneurope.com
Solar 2007
Cleveland, OH, USA
812 July 2007
American Solar Energy Society
Tel: +1 303 443 3130
e-mail: ases@ases.org
web: www.ases.org
Bioenergy 2007
Jyvskyl, Finland
36 September 2007
Ms Mia Savolainen,
FINBIO, Vapaudenkatu 12, 40100
Jyvskyl, Finland
Tel: +358 14 338 5435
Fax: +358 14 338 5410
e-mail: bioenergy2007@finbio.fi
web: www.finbioenergy.fi/bioenergy2007
ISES Solar World Congress
2007
Beijing, China
1821 September 2007
The International Solar
Energy Society (ISES),
International Headquarters,
Villa Tannheim,
Wiesentalstr. 50,
79115 Freiburg, Germany
Tel: +49 761 45906 0
Fax: +49 761 45906 99
e-mail: hq@ises.org
web: www.swc.2007.cn
Husum Wind 2007
Husum, Germany
1822 September 2007
Messe Husum,
Am Messeplatz 1618,
D-25813 Husum, Germany
Tel: +49 4841 902 0
Fax: +49 4841 90 22 46
e-mail: info@messehusum.de
web: www.husumwind.com
Greenbuild 2007
Fort Lauderdale, Florida, USA
79 November 2007
US Green Building Council, 1015
18th Street, NW, Suite 508,
Tel: +1 202 828 7422
e-mail: info@greenbuildexpo.org
web: www.greenbuildexpo.org
Rome 07 20th World Energy
Congress & Exhibition
Rome, Italy
1115 November 2007
MicroMegas Comunicazione
S.p.A., Viale Parioli, 2,
00197 Rome, Italy
Tel: +39 06 8091051
Fax: +39 06 80910533
e-mail: info@micromegas.it
web: www.rome2007.it
2007 Copenhagen Offshore
Wind International
Conference & Exhibition
Copenhagen, Denmark
57 December 2007
Danish Wind Industry
Association, Vester Voldgade
106, DK-1552 Copenhagen V,
Denmark
Tel: +45 3373 0330
Fax: +45 3373 0333
e-mail: offshore@windpower.org
DIARY
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DIARY
Advertisers index
20th World Energy Congress 2007, Rome 150
AEE Solar 66
Agni Energie Sdn Bhd 135
Aleo Solar GmbH IFC
Ampair MicroWind 52
ASYS GmbH 47
August Krempel Soehne GmbH 149
Axitec GmbH 147
Baccini s.p.a 73
Bachmann electronic GmbH 59
BAE Batterien GmbH 68
Beijing Sunda Solar Energy 100
Technology Co Ltd
Beijing Tsinghua Solar Ltd 101
Berger Lichttehnik GmbH & Co KG 72
Blue Sky Energy 70
Boading Tianwei Yingli New 69
Energy Resources Co Ltd
BWEA28, Glasgow 63
Calimax Entwicklungs- und Vertriebs-GmbH 139
CamLine GmbH 41
Carbon Expo Asia, Beijing 165
CEEG Nanjing PV-Tech Co Ltd 102
China Power Technology Conference, Beijing 167
Clipper WindPower 6
Comer Industries s.p.a 28
Conergy AG 99
Cube Engineering GmbH 90
Earthscan 119
Ecoprogetti Srl 161
ErSol Solar Energy AG 39
ESAB 61
Etimex Primary Packaging GmbH 81
EU Energy Plc 10
Evergreen Solar 15
EWEC 2007, Milan 126
Exxon Mobil 53
Fram Renewable Fuels 137
Fronius International GmbH & Co Ltd 40
Fulghum Fibrefuels Ltd 133
Global WindPower, Adelaide 163
GP Solar 144
GT Solar Technologies 96
Gnther Spelsberg GmbH & Co KG 74
Hansen Transmissions International nv 87
HCT Shaping Systems SA 115
HMS Hllmller Maschinenbau 78
Huber and Suhner AG 105
Ingeteam 17
International Institute for Environment and 164
Development
Isovolta AG 107
KACO Solar USA Inc. 42
Kipp & Zonen BV 22
Klber Lubrication 91
Lincoln Gmbh & Co KG 86
Lust Antriebsteknik GmbH 26
M Watanabe & Co Ltd 160
Manitoba HVDC Research Centre 20
Manz Automation AG 125
Mastervolt 111
Meier Vakuumtechnik GmbH 152
Metglas 16
Meyer Berger AG 109
Multi-Contact AG 153
Ningbo Solar Electric Power Co Ltd 37
NRG Systems Inc 1
Ocean Power Delivery Ltd 14
Oerlikon Balzers Coating 23
Outback Power Systems 113
P.Energy 38
Pauwels International NV 50
Peter Brotherhood Ltd 19
Phaesun GmbH 114
Photon Energy Systems Ltd 76
Photowatt International 35
Power Expo 2006, Zaragoza 25
PV Engineering GmbH 104
PV Tech expo 2006 62, 154
Q-Cells AG 36
Raycap Corporation 21
RENA GmbH 120
REpower Systems AG 29
Rogers NV 65
Ropatec AG 88
Roth & Rau AG 110
Saft 146
Sanyo Electric Co Ltd 32
Scheuten Solar Holdings BV 122
Schott AG - Solar 95
Second Wind Incorporated 12
Shell Renewables OBC
Siemens Wind Power AS 31
SMA Technologies AG 45
Solar Energy Systems International 24
Solar Outdoor Lighting 124
Solar Power 2006, San Jos 156
Solarstocc AG 97
Solarworld 4
Solland 75
Solutronic GmbH 112
Somerset County Council 30
Southwest Windpower IBC
Spire Corporation 121
Sputnik Engineering AG 142
Stangl Semiconductor Equipment AG 77
Studer Innotec 158
Suntech Power Co Ltd 159
SunTechnics Solartechnik GmbH 71
Surrette Battery Company Ltd 83
Suzlon Energy Ltd 2
Swiss Wafers AG 18
Tenesol Total Energie AG 123
Terex-Demag GmbH & Co KG 89
Tyforop Chemie GmbH 34
Ulbrich Stainless Steels & Special 108
Metals Inc
University of Geneva 118
US Greenbuild 2006, Denver 168
Verteco 54
Vestas Wind Systems A/S 8-9
Von Ardenne Anlagentechnik GmbH 80
Webel-SL Energy Systems Ltd 106
WindLogics Inc 64
WindPro 55
World Sustainable Energy Days 2007, Wels 166
Xantrex Technology SL 145
GREEN
BUILD
2006
11/15/06
THROUGH
11/17/06
DENVER
EARLY REGISTRATION
DISCOUNT
UNTIL SEPTEMBER 6, 2006
WWW.GREENBUILDEXPO.ORG
(Save the date)
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Now appearing in backyards everywhere.
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Learn if Skystream can work for you at www.skystreamenergy.com.
THE POWER TO CHOOSE.
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RENEWABLE
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