Wind Market in India sees European Wind Companies Vestas,Gamesa,Enercon gain marketshare from No.1 Suzlon

1 Jun, 2011
Energy,Gamesa,Suzlon,Vestas,Wind Energy

Top European Wind Companies Vestas,Gamesa and Enercon have gained marketshare in 2010 in the Indian Wind Power Market.Note Indian Wind Energy Companies have competed with each other as the Indian Wind Power Market starts slowing down.India installed more than 2 GW in Wind Capacity and is the world’s fifth largest market.Suzlon the biggest Indian Wind Turbine Company has seen its marketshare go below 50% for the first time to 41% as aggressive initiatives by foreign wind manufacturers pay off.Note GE,Siemens and others have set up blade and turbine factories in India to lower costs and improve their position.Gamesa has been the biggest winner by gaining a 10 percent marketshare taking the No.3 position from the world’s largest wind turbine company Vestas.Enercon maintains its 2nd position with 500 MW of installations despite severe legal problems between the domestic unit and the German parent.Note the European Wind Makers are facing tough competition in their home markets because of market decline.They are also finding penetration in China which accounts for 50% of the world’s capacity addition in 2010 tough as the domestic wind players are in a price war.India remains the best market for their growth prospects.

Wind Power Farms in India have grown at a rapid pace and newer wind farm developers like Caparo have set aggressive plans for expanding capacity in India.The power situation in India remains deficient and provides a great opportunity for all energy players.Renewable Energy is being promoted in India through government subsidies like generation based incentives,renewable energy certificates etc.Offshore Wind Power also looks to be the next big area of growth with Gujarat looking to set up India’s first offshore wind farm

Gamesa Tops Vestas in India Wind Sales, Suzlon’s Share Dips

Spain’s Gamesa Corporacion Tecnologica SA topped Vestas Wind Systems A/S, the world’s biggest wind-turbine maker, in new installations in India in the financial year ended March 31, the latest figures show.

Of the 2,351 megawatts of capacity added in India last year, Suzlon was still the top supplier taking 41 percent of new installations, or 955 megawatts, according to the IWTMA figures. The local unit of Germany’s Enercon GmbH kept its No. 2 ranking with 504 megawatts.

Gamesa, 18 months since entering the Indian market, has become the third-biggest supplier with 228 megawatts, or 10 percent. Vestas slipped one spot to No. 4 with 215 megawatts.

Toshiba acquiring,investing in Green Companies (Landis & Gyr,Unison) as Nuclear Energy faces Fukushima Winter

31 May, 2011
Japan,Nuclear Energy,Renewable Energy,Smart Grid,Solar Energy,Solar EPC,Solar Panels,Wind Energy

Japanese Nuclear Giant Toshiba which is the second largest seller of complex nuclear equipment globally is looking to shift its focus towards Renewable Energy and Energy Efficiency.The company is already facing delays in shipping nuclear reactors to customers as the Fukushima Disaster makes governments around the world rethink their nuclear power ambitions.The Nuclear Energy Disadvantages are winning over the Advantages currently in public sentiment.Toshiba which acquired US Westinghouse has a target of selling 39 nuclear reactors which is getting delayed.With advanced nuclear power countries like Germany,Switzerland and Japan killing nuclear energy,the going looks tough for Toshiba.The company was already facing tough competition from the GE-Hitachi and Areva as well as new players from South Korea and China in the nuclear equipment market.

Toshiba acquiring Green Companies

Nuclear Energy is facing slowdown even from countries like China which has the largest growth planned for nuclear energy .Even India is facing tough opposition in building new nuclear power plants (Jaitapur).With the winds clearly turning against nuclear energy which was already facing a slow death in developer countries,Toshiba has started to make acquisitions in the Clean Technology industry.The company has bought Landis&Gyr which is one of the biggest  global smart meter manufacturers.The company has also bought a stake in South Korean Wind Company Unison.

Toshiba Solar Plans

Toshiba the Japanese Giant known for its Global Leadership in Nuclear Power Equipment,Electronics and Memory Businesses has decided to become a big player in  the Solar EPC business as well.This strategy is quite different from the other global conglomerates entering the Solar Energy Field.It is already in the process of building a 10 MW plant in Bulgaria and plans to generate around  $2 Billion Dollars annually from US and Europe by 2015.

Competition in the Nuclear Equipment Market Increasing

The Nuclear Equipment Industry is seeing intensifying competition with the entry of the Chinese and the South Koreans.While Nuclear Energy Market in the Developed World has hit a Virtual Wall,the Emerging Markets are still growing strongly.China and India are the biggest growth markets with other smaller nascent markets like Vietnam,UAE,East Europe and others.The fight between the Great Powers like Russia,USA,Japan has intensified for a piece of this lucrative market.Russia state owned Rosatom is leaving no stone unturned to garner a bigger marketshare of the Nuclear Equipment Market.It is using its vertically integrated model right from supplying uranium raw material to waste disposal to penetrate European Markets.

Japanese Giant Companies already making huge investments into Green Energy

Most of the Japanese companies are making huge investments into the Green Energy Space.Here is a list of Japanese companies in Solar Energy.

1) Sharp - Sharp,the Japanese Zaibatsu known more for its Electronics Products is also the world’s No 1 Company in terms Solar Module Revenues.Sharp has been the solar world leader since the past 4-5 years despite stiff competition recently  from upcoming Chinese Crystalline Solar (c-Si) players and Thin Film Leader First Solar

Sharp’s c-Si division is not cost competitive with the Chinese and Taiwanese companies as its cost structure is almost 30-40% higher than the cheapest Chinese producers.Though the quality of Sharp’s crystalline silicon modules is considered much better,the cost difference has become too big in a rapidly commoditizing industry

While companies like Masdar are abandoning their Thin Film plans,Sharp has started shipping a-Si modules from its 1 GW capacity  plant in Sakai.With its established distribution strengths and technological abilities in LCD Technology,Sharp is one company that can survive the c-Si onslaught.

2) Sanyo-Panasonic  – Sanyo plans to invest more than  70% of its total investment over the next  3 years in its renewable energy and energy storage segments.Sanyo has never been as successful in the hyper competitive electronics market as other Japanese companies like Sony or Sharp.However its lithium batteries and solar panels possess cutting edge technology.Its solar panels with proprietary HIT technology rival the best  in terms of efficiency and quality.

Panasonic after acquiring Sanyo has completely changed its strategy to become a major Green Player targeting a Major Percentage of Sales in the future to come  from Green Products.Panasonic which is the world’s biggest Plasma TV producer is going to spend $1 Billion on Green Building investments.Panasonic will combine its Green Strengths with Sanyo’s to sell a complete Eco-Friendly Home complete with Solar Power,LED Lighting and Energy Storage and Efficiency capabilities.In Solar where Panasonic  is the No. 3 player in Japan behind Sharp and Kyocera ,it is speeding up the expansion of solar capacity.It will spend more than $500 million aiming to triple its energy solutions business in Europe to 800 Million Euros by 2016.

3) Kyocera – Kyocera is Japan’s second largest solar panel producing company.The company recently won a major contract to build a solar farm in Thailand.Unlike other companies it has been slow off the blocks and unless  it perks up its game,it is likey to become a even smaller company in the global scheme of things.

4) Mitsubishi – Mistubishi is another old time Japanese solar company which has a low profile solar module and system business.The company is known for its high quality panels and has a decent presence in USA and Japan.However like Kyocera it has not been aggressive enough leading to loss in marketshare.

5) Mitsui - Mitsui Engineering and Shipping,one of Japan’s huge zaibatsus is planning a foray into the solar energy market as well.The Company is being supported in its initiative by METI which will collaborate with the Tunisian government in setting up a combined gas solar hybrid plant.A 5 MW Solar CSP plant will be set up by 2013 to demonstrate the technology.The company also owns a solar system business in the US after acquiring Sunwize

6) Toshiba – Toshiba the Japanese Giant known for its Global Leadership in Nuclear Power Equipment,Electronics and Memory Businesses has decided to become a big player in  the Solar EPC business.This strategy is quite different from the other global conglomerates entering the Solar Energy Field.South Korean Players like Samsung,LG,Hanwha and Hyundai are all building Crystalline Silicon Modules.Toshiba wants to enter the Smart Grid business by leveraging its experiece of the Solar EPC business.It is already in the process of building a 10 MW plant in Bulgaria and plans to generate around  $2 Billion Dollars annually from US and Europe by 2015

7) Honda – Honda,the Japanese auto giant has also joined the Solar Energy Race by selling Thin Film Modules based on CIGs technology.Japan’s conglomerates like Sharp,Kyocera,Mitsubishi and Panasonic already have big solar manufacturing operations with Sharp being the largest Solar Company in the World.Honda which has a small presence in the Solar Energy through its subsidiary Honda Soltec is expanding its lines of modules for the domestic market.

8 ) Solar Frontier - Solar Frontier is a subsidiary of Showa Shell Sekiyu and is listed on the Japanese Stock Exchange.The Company has big plans for the Solar Energy Market planning to increase its capacity by more than 10 times in 2011 to around 1 Gw in total.All its 3 plants are located in Miyazaki in Japan and uses previous plasma plant of Hitachi.Solar Frontier claims 11.5% efficiency for its CIS modules which are expected to go upto 14% by 2014It has signed a distribution deal with GE to sells its Copper Indium Selenide (CIS) Panels in USA

Toshiba cautious on nuclear sales, eyes renewables

Toshiba Corp said it may not reach its target of 39 orders for nuclear reactors until 2-3 years later than expected, and that it would increase focus on renewables and smart grids as the crisis rumbles on at the Fukushima Daiichi nuclear plant.Orders for four AP1000 reactors in China are on target, but approval delays in the United States and other countries could delay by 2-3 years the firm’s goal to expand nuclear sales to 1 trillion yen ($12.2 billion) and 39 reactor orders by March 2016, Sasaki said.He added that the company’s direct checks with customers had not yet found any planning to change their orders.It now targets sales of 350 billion yen in solar, hydroelectric, geothermal and wind power technologies, 900 billion yen in smart grid products and 800 billion yen in low-power consumption motors, inverters and batteries.On Monday, Toshiba announced an alliance with South Korean wind power firm Unison Co. The Japanese firm will buy some 3 billion yen in Unison convertible bonds as the first step of the deal and the Nikkei newspaper reported it would raise its stake to about 30 percent in about a year.

Renewable Energy in Poland (Wind,Biomass) in Brief – Increasing with Huge Prospects due to 90% Dependence on Coal

12 May, 2011
Biomass Energy,Coal,Offshore Wind,Renewable Energy,Wind Energy

Poland resiting EU mandate to shift from Dirty Coal to Green Energy Sources

Poland is one of the largest countries in Europe to have such a high dependence on Coal Energy to meet its Electricity Needs.Note European Union has a target to meet 20% of its Energy by 2020 from Renewable Energy sources which has mad the fossil fuel dependent Eastern European countries looks towards Wind,Solar and Biomass Energy.Note Eastern European countries like Romania have seen a boom in wind energy driven by incorrect Green Energy subsidy policies while the Solar Boom in Czech led to a drastic increase in electricity prices forcing the government to Bust it with a combination of FIT cuts,tax increases and strict regulation.Poland which is the largest Eastern European country in the EU has traditionally depended on Coal to meet most of its Energy Needs.Despite the major disadvantages of Coal,Poland has resisted reducing the support given to the Thermal Power Industry.The cheapness and abundance of Coal has made it hard for Poland to shift its Energy Policy like other Coal dependent nations like South Africa,China and India.

Poland Renewable Energy Target

Poland  has established a target of 7.5 percent of energy production from renewable sources by 2010, and 15% by 2020.  However, these targets have not yet been enforced, discouraging large scale renewable development.  Even so, the aggressive targets combined with strong economic growth provide a healthy investment atmosphere for renewable energy developers.   Utilities are required to purchase electricity from renewable sources, although prices are not regulated by tariffs.The Energy Act of April 2007 states that all energy companies selling electricity to end users have to obtain and present a specified number of renewable energy certificates or pay a substitution charge.

Solid biomass had the highest share in renewable energy production in 2008. It amounted to nearly 87% of the total domestic production of energy from renewable sources. Liquid biofuels were the next largest carrier in primary energy production from renewable sources (5.4%), followed by water (3.4%), biogas (2.4%) and wind (1.3%). Heat pumps, geothermal energy, solar radiation and energy from municipal waste were less significant in the total balance.

Renewable Energy in Poland Increasing with Wind and Biomass Energy

Biomass and wind appear to be the most promising renewable energy resources for development in Poland, with an estimated potential of about 4,000 MW each.

Wind Energy in Poland

Poland also has some of the best documented wind resources in Central and Eastern Europe with areas reaching up to 1,000 W/m2 in power density. Poland has started to increase its Renewable Energy Industry with 460 MW of Wind Energy installed in 2010 .Poland is set to install around 500 MW of Wind Energy this Year.Poland had 1,005 MW of installed capacity for wind-generated power in the middle of 2010.

The Polish Wind Energy Association predicts very dynamic growth of installed capacity in the wind power sector, amounting to about 13 GW in 20203). The figure comprises almost 11 GW of onshore wind farms, 1.5 GW in offshore wind and 600 MW of small wind.

Biomass Energy in Poland

Thermal Power Plant are being  converted into a Biomass Power Plants because Biomass Energy has a number of advantages over Coal Energy.Both liquid and solid biomass are considered to be the main sources of renewable energy in Poland, for both electricity and thermal energy production.  Currently, biomass is mainly used as heat in small and medium scale boilers in industrial settings. Common fuel is wood pieces, sawdust, and wood shavings. Combined heat and power (CHP) plants using organic waste from pulp and paper operations, and straw and wood fired heating plants are also in operation.

The amount of electricity generated from biomass between 2006 and 2008 increased nearly twofold – from 1818 GWh to 3267 GWh. A large part of it was generated in co-combustion processes (84% in 2008). Also the amount of electricity produced from biogas increased almost twice during the three analysed years, from 117 GWh in 2006 to 221 GWh in 2008. Over half of this was generated from landfill biogas (63% in 2008), one third from biogas produced in sewage treatment facilities and the remaining small part was generated in the agricultural sector (4% in 2008).

French energy company GDF-Suez plans to convert a 225 MW Coal powered Plant will be converted into a biomass powered plant making it one of the biggest biomass plants in the world,The 205 MW Biomass power plant in Polaniec, south-eastern Poland will use about 1 million tonnes of biomass a year.GDF is also interested in purchasing assets from Sweden’s Vattenfall. The latter company intends to leave the Polish market by selling its major holdings there.Poland’s second-largest utility, Tauron, has taken a z?.30 million loan to help it finance the conversion of its coal-fired power plant in Tychy so that it can burn biomass instead.Note Pure Play Biomass Companies are difficult to invest in as Biomass Power Plants are built by the utilities.

Electricity in Poland

Polish power generation system is the largest in Central and Eastern Europe in terms of capacity.Poland has around 3 GW of Total Electricity Capacity with 90% coming form Thermal Power .It also has around 2 GW of Renewable Energy Capacity. Household electricity prices have increased by 32% since 2004, but they remain about 14% below the EU-15 and  EU-25 averages. Prices for industrial customers are about 28% below the European averages The power system is very fragmented, with nearly 400 power plants.Solar and Hydro Energy Resources in not well developed in Poland though a few companies have started to manufacture solar energy products in the country.

More Links on Poland Energy

1) http://www.elektrownie-wiatrowe.org.pl/en/

2) http://en.wikipedia.org/wiki/Wind_power_in_Poland

3) http://www.enercee.net/poland/energy-sources.html

4) http://www.sourcewatch.org/index.php?title=Poland_and_coal

5) http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=PL

Offshore Wind Energy to reach Grid Parity only after 2020 like Solar Thermal Power – Advantage Solar Photovoltaic Energy

12 May, 2011
Abengoa,Concentrated Solar Thermal,Offshore Wind,Renewable Energy,Solar Energy,Wind Energy

Offshore Wind Energy is supposed to increase from around  3 GW today to 75 GW by 2020 as countries in Europe,Asia and North America heavily support this industry.Onshore wind energy growth on the other hand is expected to  slow down as 38 GW of Wind Capacity were installed in 2010 with Western Markets showing a sharp slowdown.Note every industry sees costs declining with large capacity except the mature industries.For example Wind Energy has seen a 10% decline in costs for every 100% increase in installed capacity.Note offshore wind projects offer even more Wind Energy Advantages than normal Land Based Wind Farms.The only problem facing offshore wind power is high costs  as the industry still is on the learning curve.PWC has come up with a survey where most of the participants say that it will take 10-15 years for offshore wind energy to reach grid parity.What this means is that Offshore Wind Energy Companies will continue to depend on government subsidies like higher electricity prices,tax breaks,low interest loans to survive.

Total Costs of a Offshore Wind Park

The cost of an offshore wind park can range between $4.5-5.5 per MW which is much higher than land based wind at around $2 million per MW.However the load factors for offshore wind are higher so they compensate somewhat for the higher capital and operating costs for offshore wind energy.Note the PPAs being signed for offshore wind range fro 20-25c/Kwh which is much higher than the 8-10c/Kwh given for onshore wind energy

What the Survey Showed

The average construction cost per megawatt varied among questioned European offshore wind power developers, with 38 percent of survey respondents saying their average cost came to less than $3 million, while 31 percent quoted $4-5 million.But most building contractors and manufacturers of wind farm components asked in the survey expected the cost for construction and turbines to drop in the next five years, making it cheaper to instal new wind farms.

Solar Energy Dropping by almost 10% Every Year compared to Offshore Wind

Solar Energy is the fastest growing renewable energy source because its cost are declining at a rapid pace.Solar Thermal Energy is getting left behind Solar PV with a number of CSP Plants being abandoned and converted to Solar PV Farms.Note Offshore Wind too might get affected if Solar PV costs continue to decline as rapidly as they are doing right now.While Offshore Wind is being heavily supported by European countries,its a matter of time before Solar PV starts making inroads into this Green Energy source as  well.Note Europe with 80% of the world’s offshore wind farms is also home to 80% of the world’s solar energy capacity as well.

Solar Thermal Power will also take almost 10 years to Reach Grid Parity

Abengoa which is a leader amongst Solar Thermal Companies thinks that Solar Thermal Power won’t reach Grid Parity till 2020 and may even take a further 10 years to achieve parity with the fossil fuel  energy sources costs.This makes you wonder if CSP is a technology worth investing in since  Photovoltaic Technology has already reached grid parity in some parts of the world and should reach parity in most parts by 2015.PV Technology has seen a rapid advance in technology and cost cutting over the past few years making the installation cost come down to $3.5-4/watt compared to $6-7/watt for CSP Technology

Offshore wind can shed subsidy in 10-15 years: study

Offshore wind power technology will become economic without state subsidies in 10-15 years’ time, most government bodies said in a survey published on Thursday by consultancy PwC.Nearly half of the government bodies interviewed said they expected offshore wind to survive without subsidies within 10-15 years, while 17 percent of respondents counted on less than 10 years and an equal share thought 15-20 years were needed.

Eighty percent of those who forecast a decrease said costs could drop 10-20 percent.”Nearly all of the developers we surveyed said supply chain capacity constraints are a significant problem for offshore wind construction to such an extent that 82 percent said they create the risk of a seller’s market,” PwC found in its poll.

80% Chinese Wind Turbines Companies might be Bankrupted as Smaller Producer to lose Government Subsidies (NDRC,MIIT) – Beneficial for Sinovel,Mingyang,Goldwind

12 May, 2011
China,DongFang Electric,Goldwind,Ming Yang,Shanghai Electric,Sinovel,Wind Energy

The Chinese government is set to remove the subsidies to small wind turbine companies in China under a new rule which will be implemented from June 1 .Note the authorities have been concerned about the over investment in the green energy industry boosted by the strong domestic market.The government has already cracked down on small polysilicon producers which  were producing polysilicon at uneconomic costs and causing environmental hazards as well.The Chinese government controls most of the funding through its massive state owned banks and gives a number of incentives to industry as well.With the removal of tax breaks,cheap land and easy loans,it will be difficult for even the bigger wind turbine companies to survive leave alone the small ones.

Chinese companies have become the low cost leaders in the Wind Equipment Industry and sell much below Western competitors.Leading WTG companies from the West like Vestas and Gamesa are reeling from Chinese competition and slowdown in Western markets.Suzlon too has been affected as Korean shipbuilders and Chinese wind producers have become major players.

Chinese Wind Industry facing huge Overcapacity

The Chinese Wind Industry has around 80 wind turbine companies many of which are quite small and dont’ have the money and expertise to compete in the international markets.Though the Chinese dominate the top global wind turbine companies list with 7 of the top 15 WTG companies Chinese,many are not competitive.Sinovel which has become the largest wind turbine company has recently canceled order for Electrical Control Systems from American Superconductor citing high inventory.Other Wind Turbine companies are in even more trouble as the industry suffers from huge overcapacity.The Chinese Wind Capacity has grown at 100% CAGR to reach 18 GW in 2010.However this strong growth has led to saturation of the wind market and price wars are being seen in China.Exports to other countries have been difficult as the cost of transportation of Wind Turbines is high.Besides Chinese Wind Companies don’t possess strong technology and quality unlike established ones like Vestas,Gamesa,GE and Siemens.Though Dongfang and Shanghai Electric have managed to win some Turbine Orders in India,the export percentage is negligible.Wind Power in India too has reached a stable growth level and a number of wind companies in India are fighting for marketshare as well.

Smaller Chinese Wind Companies to be Wiped Out

It is likely that the smaller Chinese Wind Companies will go bankrupt as the Wind Industry reeling under overcapacity will unlikely see acquisitions of these smaller companies by bigger players like Goldwind,Ming Yang and others.The government wants these smaller wind companies to sell their older smaller turbines to outside markets,however that too seemly improbable given that the largest wind turbine companies have failed to export any turbines in a major way till now

China Fine-Tunes Wind Turbine Industry with New Guidelines

China’s wind power industry, which has developed by leaps and bounds over the past five years, will have to follow a new series of guidelines and restrictions, according to the 2011 edition of the Guideline Catalogue for Industrial Restructuring, a set of policy guidelines recently released by the National Development and Reform Commission (NDRC).Industry officials say that once an investment project is listed in the “encouraged development” category, the company or companies behind the project can enjoy preferential treatments such as floating shares in the stock market, lighter requirements for new bank loans and tax breaks.However, under the new guidelines, China will not extend these preferential policies to companies that produce wind turbines with 2.5-megawatt-capacity or lower. Instead, the policies will encourage the development of larger-capacity turbines, as well as components for control systems and converters for these larger turbines.However, under the new guidelines, China will not extend these preferential policies to companies that produce wind turbines with 2.5-megawatt-capacity or lower. Instead, the policies will encourage the development of larger-capacity turbines, as well as components for control systems and converters for these larger turbines.

Power Finance Corporation Green Energy – PFC Subsidiary to become one of the biggest Green Energy Financiers in India

12 May, 2011
Energy,Finance,Renewable Energy,Solar Energy,Wind Energy

Power Finance Corporation Green Energy has been floated as a subsidiary of one of India’s biggest power sector financiers Power Finance Corporation.As the name implies the company’s mission is to provide loans to India’s Green Energy Industry.Note India requires around  $10 billion dollars according to the government plans of building 17 GW of Alternative Energy Capacity in India between 2012-2017 which is low in my view.However even this low target will require a massive amount of debt financing to the tune of around $6-7 billion annually.Power Finance Corporation is one India’s largest infrastructure financing companies owned by the government.The company which has billions of dollars of loan assets to the Power sector in India has naturally entered the fast growing Green Energy area as well.

Note PFC has already given $400 million to different projects in the Renewable Energy area and has signed an intent to sanction around $300 million more.Wind Power in India is the biggest Renewable Energy Industry in India and Solar Power is seen to be growing at a fast pace as well under India’s JNNSM Solar Subsidy.Debt Financing has been a major hurdle for solar energy in India.However with major financial intermediaries like REC,PFC,SBI,ADB entering the sector some of the problems may be ameliorated.

PFC subsidiary will lend to green energy sector

State-owned Power Finance Corporation is planning to float a subsidiary, Power Finance Corporation Green Energy Ltd, to finance the renewable energy projects in the country.“We have already received a certificate of incorporation from the government for floating this subsidiary and we will begin operation soon,” R Nagarajan, director (finance) of PFC, told reporters.Last financial year, PFC had sanctioned around Rs 3,000 crore to various projects under the renewable energy segment and disbursed around Rs 1,800 crore during the period.“Loan disbursements to the renewable energy sector will be higher than that seen during the last fiscal as there are sound interests shown by both private and public players in this vertical,” he added.

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