Issue 447
26•February•2015
Week 08
Hot rocks play new role
The Caribbean Development Bank is to make more finance available to
develop new renewables projects, in particular for geothermal energy.
Broker’s dozen
The State Bank of India will provide US$12 billion to develop 15,000 MW of
renewables capacity.
Pulling together
States in the US Northeast should collaborate more to establish offshore wind
projects and a supply chain, a new report recommends.
Sundown in Sardinia
E.ON has sold its Italian solar assets to investment group F2i, including
around 30 MW of Sardinian capacity.
COMMENTARY
3
 Caribbean banks on new renewables
finance
3
PROJECTS & COMPANIES
5
 ASIA – India to invest US$12 billion in
green energy
5
 EUROPE – Gas Natural freezes Spanish
wind plans
5
 LATIN AMERICA – Pattern forms 1-GW JV
with Cemex
WIND
6
6
 NORTH AMERICA – Northeast should
collaborate on offshore wind
SOLAR
6
7
 AFRICA – Gold miner unveils plans for
150-MW scheme
7
 ASIA – Madhya Pradesh to hold solar
tenders in April
8
 EUROPE – E.ON sheds Italian
solar assets
GEOTHERMAL
9
10
 AFRICA – Toshiba opens Kenya’s largest
geothermal plant
10
 ASIA – MHPS wins Philippine geothermal
plant upgrade deal
NEWS IN BRIEF
10
11
REM
26 February 2015, Week 08
page 3
COMMENTARY
Caribbean banks on
new renewables finance
The Caribbean Development Bank will make new finance available to expand renewables
as fuel supplies from the Petrocaribe scheme appear increasingly unstable
By David Gacs
 Diesel-fired generation supplies around 85% of the region’s energy
 New finance will be made available to member states and private companies
 The CBD is keen to build new geothermal capacity, but needs help from experienced firms and investors
In an effort to drive the uptake
sustainable power, the Caribbean
Development Bank (CDB) is to expand
its available range of financing and
technical development programmes. This
would make new capital accessible by
both member states and private sector
companies keen to establish energy
projects.
Around 85% of the region’s energy is
derived from diesel-fired power
generation. In a bid to diversify, the CDB
has made renewable energy projects –
with a particular focus on geothermal, a
natural option for many of the region's
tiny volcanic islands – an institutional
priority, even in the face of the bearish
global oil market.
Indeed, the timeliness of the Bank’s
decision suggests it is likely linked to
fallout from the increasing turmoil of the
Venezuelan economy and the effects this
could have on its Petrocaribe preferential
trade programme – the primary supply of
the region’s hydrocarbons.
CDB Renewable Energy and Energy
Efficiency Unit’s head, Tessa Williams
Robertson, said the Bank was “looking at
the inclusion of renewable energy and
energy efficiency components in all of
our projects wherever the opportunity
presents itself.”
To this end, it is moving forward with
special assistance for green energy
projects, on concessionary terms. One
principal unit born of this initiative is the
geothermal energy development facility,
which is currently awaiting final
approval.
The facility, which will support
exploration and feasibility studies
through to field development and plant
installation, is currently being formulated
by the Caribbean lender and its partner
organisations. It follows a memorandum
of understanding (MoU) signed in 2014
between CDB, the Inter-American
Development Bank (IADB) and the
Japan International Cooperation Agency
(JICA), to agree to work together on the
promotion of renewables in the Eastern
Caribbean, geothermal especially.
Details around the scope of financing
and credit lines to be made available
have not yet been released.
“Developing geothermal is not lowcost, and much of the investment will
need to come from the private sector. It is
also highly technical, covering a range of
disciplines, so it makes sense for us to
work with credible developers/investors
who have the capacity and the
experience,” explained Williams
Robertson.
At present, though, the best prospects
for development, in terms of both cost
“Developing geothermal is
not low-cost, and much of
the investment will need to
come from the private
sector”
and location, are still under consideration
by the Caribbean Bank.
Hot topic
Although Alstom Renewable’s 15-MW
Bouillante plant in Guadeloupe is the
only operating geothermal facility in the
Caribbean, the region has seen a surge of
activity recently.
In January, Saint Vincent and the
Grenadines was awarded a US$15
million loan to help fund the
development of a 10-15 MW geothermal
project on the slopes of the La Soufriere
volcano. The project, expected to come
on stream by 2018 to supply up to half
the island's electricity demand, is a
partnership between the government,
Iceland's Reykjavik Geothermal and
Canadian energy company Emera.
The savings this offers are clear: Saint
Vincent derives 80% of its energy from
imported diesel, costing the government
US$26 million per year, according to the
country's Energy Unit Director,
Ellsworth Dacon.
Saint Lucia is also exploring its
options, with the country's minister for
sustainable development and energy
saying explorations by US-based Ormat
Technologies are scheduled to begin in
Q1 2015. If successful, it could provide
the island with around 30 MW, half of its
energy requirements. Funding worth
US$3.8 million has been secured for the
project thus far.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 4
COMMENTARY
In 2013, Dominica won US$10.3
million in backing for a geothermal
project by the EU's Caribbean
Investment Facility. Saint Kitts and
Nevis also signed a concession
agreement in September 2014 for a
10-MW plant with Nevis Renewable
Energy International. Meanwhile in
the same month, the governments of
Grenada and New Zealand signed a
geothermal support partnership
framework for the exploration and
eventual use of geothermal energy on
the island.
All in all, the World Bank believes
the Eastern Caribbean islands, many
of which are in fact volcanic
outcrops, have a combined
geothermic potential of 850 MW.
Supply security
The CDB’s push to kick-start domestic
renewable energy industries is aimed to
provide a buffer for small, economically
vulnerable Caribbean countries from the
insecurity caused by the vicissitudes of
oil markets. “A radical shift in the supply
and use of energy to reduce the
dependency on imported fuel is urgently
required, particularly in the context of
persistent economic challenges”, said
CDB.
It would also limit the outflow of
foreign reserves from the countries'
treasuries. The reliance of the region on
oil from Venezuela's Petrocaribe
programme is causing increasing concern
as the country’s economic and political
stability become increasingly uncertain.
The CDB has said as much. “Recent
declines in oil prices, although
welcomed, have not removed the
persistence of vulnerabilities associated
with high dependency on imported
fuels,” commented Williams Robertson.
In response the Bank has made energy
security a broad objective in its 20152019 Strategic Plan, and it is now “a
consideration in all of the technical
assistance and investment projects which
CDB finances.”
Venezuela's oil exports to the 17
Petrocaribe members accounted for more
than 40% of their total energy
Source: World Bank
consumption. The oil-for-loans scheme
was established with 14 members in
2005, providing preferential payments
for Venezuelan oil on extremely
favourable terms.
Under the conditions of the initial
agreement, most members paid between
5% and 50% of market price upfront and
the balance over a 17- to 25-year period,
at 1% interest. Not surprisingly, the
programme was readily taken up by
several Caribbean countries, especially in
light of the 2008 financial crisis, when
tourist revenues plummeted.
However, production by Venezuelan
state-owned oil company PDVSA has
seen a steady decline, dropping from
around 3.4 million barrels per day in
1998 to 2.7 million bpd in 2012 as
production has stagnated and domestic
consumption has continued to rise.
Although PDVSA has said it seek to
maintain output at 3 million barrels in
2015 and reach 4 million bpd by 2019,
NewsBase Research does not expect even
3 million bpd in this timeline without
major changes in the oil industry.
Oil accounts for over 90% of Caracas'
foreign currency earnings, and the recent
dramatic decline in oil prices has hit the
country hard, especially in light of the
cost of the heavily subsidised domestic
market. Venezuela's finances are now
becoming increasingly unstable –
inflation was pegged at around 70% in
January 2015, and its economy is now
officially in recession – jeopardising
supplies to Petrocaribe members.
Furthermore, a new geopolitical
landscape may also play an important
role. In a report by the Institute of the
Americas for the 2014 US Southern
Command Policy Roundtable Series,
energy analyst Alexis Arthur wrote: “In
terms of priority, political relationships
with nations such as Cuba, as well as
loan servicing to China and the economic
necessity of exporting to countries
paying upfront outweigh the needs of
Petrocaribe recipients.”
Moreover, Arthur believes the situation
is well on its way to coming to a head:
“Petrocaribe is already on shaky ground.
Delays in shipments from Venezuela and
delays in payments or payments in kind
by member countries are indications that
the parties are struggling to make the
agreement work.”
Crucially, Caribbean countries,
particularly the smaller island states, are
not currently equipped to deal with a
Petrocaribe collapse, especially in light
of such high dependency on fossil fuels.
Now more than ever, the successful
deployment of renewables – particularly
the reliable baseload power offered by
geothermal energy – is of vital
importance.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 5
PROJECTS & COMPANIES
ASIA – India to invest
US$12 billion in green energy
More than US$12 billion is to be made
available by the State Bank of India
(SBI) to finance government plans to add
15,000 MW of renewable energy
capacity in India, reports said.
The financial loans over the next five
years were announced by the SBI’s
chairwoman, Arundhati Bhattacharya, at
a renewable energy conference in New
Delhi.
“The funding would be for 15,000 MW
of renewable power. Of course, the
proposals will have to be viable and they
also have to be viable as per the norms of
the banks,” she said quoted in the
Economic Times.
Most of the loan money should support
the growth of wind and solar power
projects, Indian media said.
However, there will not be any special
interest rate concessions for potential
borrowers.
“The interest rate will depend on the
borrower,” Bhattacharya explained. “We
have to do internal rating of the customer
plus external rating. So [the] rate will not
be the same for all customers. It also
depends on the size of the project,
viability and the risks involved. So it will
not be the same for all,” she said.
The RE-INVEST conference was
organised by the Ministry of New and
Renewable Energy.
It heard a call by the head of HSBC in
India, Naina Lal Kidwai, for the creation
of a green bond market in the country to
help finance clean energy developments,
the Times said.
Potential investors in solar power, a
key target of Prime Minister Narendra
Modi’s renewables expansion plan,
voiced concerns at the conference about
the slow pace of land access to build
plants, Reuters said.
First Solar of the US expressed interest
in developing 5,000 MW of solar
capacity in India by 2019, but chief
executive Jim Hughes said his company
“needed to secure land, agree financing
and reach power purchase agreements
with buyers before building the
capacity.”
EUROPE – Gas Natural
freezes Spanish wind plans
Spanish utility Gas Natural has put all its
outstanding domestic wind farm
development plans on hold.
The Barcelona-based company is one
of Spain’s largest utilities, with millions
of customers, and its renewables
subsidiary, Gas Natural Fenosa
Renovables (GNFR), was established in
2010. By this year, it was the only
company in the country still building
new capacity, after government cuts
effectively ended renewables subsidies
there.
2010 also saw it win the development
rights to a package of new projects with a
combined capacity of 339 MW at a wind
auction, and it added a further 110 MW
to its plans at a later date.
All these wind projects were to have
been located in the northwest region of
Galicia, the windiest part of the country.
Last summer, GNFR said it was
abandoning five of its wind farms, with a
combined capacity of 141 MW, claiming
they had become unfeasible under
Spain’s new wind energy regulations, as
well as other reforms within the power
sector.
However, it also said the remaining
308 MW in its construction portfolio
remained viable, and that it was
committed to these despite subsidy cuts.
The first of these new farms, the 14MW Cordal Park Montouto, was
commissioned late last year. It was also
the only new commercial-scale wind
capacity built on the Spanish mainland in
the whole of 2014, and it operates
without support on the wholesale
electricity market.
Presenting Gas Natural’s annual results
to a shareholders’ meeting last week,
CEO Rafael Villaseca has now
announced that all nine of GNFR’s
remaining outstanding projects will be
frozen indefinitely. “The conditions for
investment in wind power in Spain are
simply not there,” he said.
In such a climate, GNFR is particularly
exposed. According to Villaseca, the
renewables division ended 2014 with
operational installed capacity of 902
MW, of which 738 MW came from wind
power.
The Spanish Wind Energy Association
(AEE) has warned that Spain’s new wind
market has all but disappeared. Gas
Natural’s latest decision raises the very
real possibility that no new capacity at all
will be commissioned in the country this
year.
Nevertheless, the utility has said it will
continue to seek authorisation for the
repowering of its Vilán wind park, a
move which would see the current 22
installed wind turbines reduced to just
two larger, more efficient machines.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 6
PROJECTS & COMPANIES
LATIN AMERICA – Pattern
forms 1-GW JV with Cemex
Cemex – one of Mexico’s biggest
companies – has created a joint venture
with US group Pattern Energy to develop
at least 1 GW of renewable energy in
Mexico over the next five years.
“Mexico is a natural expansion market
due to our development headquarters in
Houston and our team’s experience in
developing over 1,000 megawatts of
wind projects in California, New Mexico
and Texas,” said Pattern Energy
president and CEO Mike Garland. “We
enter the rapidly growing renewable
energy market in Mexico with a strong
and experienced local partner in Cemex.”
The move has been encouraged by
Mexico’s recent energy law reforms. The
Mexican government has also included a
mandate for 35% of generation to come
from clean resources by 2024, creating
significant opportunities for the
development of Mexico's substantial
wind and solar resources, the companies
added in a joint statement. There is
currently just 150 MW of solar capacity
in the country.
Pattern, which has developed more
than 3.5 GW of wind projects, will have
the right of first offer (ROFO) to acquire
the projects it develops, while Cemex
Energy – a new energy subsidiary of the
Mexican cement and building materials
producer – may take minority stakes in
the schemes. Cemex has already dipped
its toe into green energy, with the
development of a 1.5-MW solar
installation at a plant in the Dominican
Republic.
Cement is one of the most energy and
carbon-intensive materials to
manufacture – partly because the process
requires a lot of electricity to heat the
kilns and partly because CO2 is released
from limestone, one of its main
components, during the manufacturing
process. As such, the industry has long
sought ways to reduce its carbon
footprint. Cemex has a target of
obtaining 3-5% of its electricity from
onsite sources over the next five years, in
particular from renewables.
“This is a win-win deal that will help
us make use of our experience to
continue our track record as a leader in
the clean energy industry and in the
consumption of alternative fuels,” added
Cemex energy director Luis Farias.
WIND
NORTH AMERICA – Northeast
should collaborate on offshore wind
The US’ current offshore wind policy is
not working and a new approach is
needed. These are the findings of a new
report by Clean Energy Group and
Navigant Consulting, emphatically titled
“Up in the Air: What the Northeast States
Should Do Together on Offshore Wind,
Before It’s Too Late.”
One of the key recommendations is
that collaboration – in areas like New
England especially – must be increased if
the offshore wind industry is to take off.
The report cites the fate of Cape Wind
to support its case. In January, the 468MW project, in the Northeast off
Massachusetts, lost its two power
purchase agreements for 77.5% of its
power. National Grid and Northeast
Utilities’ NStar have said that Cape Wind
missed a December 31 deadline for
completing financing and starting
construction. While this was a major
setback, the iconic project has already
faced well-funded opposition for more
than a decade.
“While the Cape Wind project
floundered amidst fierce local opposition,
the project’s difficulties highlight a larger
“It is difficult, if not
impossible, for any single
state to jump-start the
offshore wind industry.”
policy problem – it is difficult, if not
impossible, for any single state to jumpstart the offshore wind industry,” the
report said.
A smaller project, Block Island
offshore Rhode Island, looks set to start
construction this summer. But it is
essentially a demonstration project and
will have far less of an effect in terms of
jump-starting a supply chain for the US
offshore wind industry. As yet, no utilityscale offshore projects have been built in
North America.
“The bottom line is that a new policy
approach must be put in place to support
a robust offshore wind industry in the
United States,” the report argues.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 7
WIND
“To be effective, that approach must
rely on multi-state collaboration.
Offshore wind will only become cost
competitive and reach its true potential
if the states in the Northeast region act
together to help create a market for the
technology.” If not, only a few small
projects will be developed, and they
could well be the last, the authors
warn.
Northeast states could, for example,
establish a regional offshore wind
target, to create a clear demand signal
for offshore developers and supply
chain providers. Policy incentives
could be co-ordinated, to drive
demand and produce economies of
scale over time, and permitting should
be standardised across borders.
Economic development would be
helped by each state collaborating
rather than competing.
Regional financing mechanisms –
such as bonds and green bank
financing – should also be developed.
Transmission could be more easily
funded if the effort was multi-state, the
authors said. The Northeast could also
create multi-state buyers’ networks
and bargaining agents to purchase
offshore wind power on behalf of
multiple states. This would reduce costs
and create a reliable pipeline for project
developers with an aggregated demand
across the region.
The authors acknowledge that offshore
wind remains expensive, but add that the
cost of photovoltaic (PV) solar power has
plummeted in the last two decades, partly
Source: BOEM
thanks to government support and new
business models. “As a result of those
concerted policies, in many regions of
the country, solar has become an
affordable, financeable and commercially
viable source of energy,” they said.
While offshore wind is unlikely to see
costs fall in quite the same way – owing
to the innate expense of installing
foundations on the seabed – the
Northeast could quickly and easily
become a hub for both wind
manufacturing and energy production,
and a valuable asset for future
developments in the US.
SOLAR
AFRICA – Gold miner unveils
plans for 150-MW scheme
South Africa’s biggest gold producer,
Sibanye Gold, will develop a 150-MW
photovoltaic (PV) solar facility in a bid
to reduce its dependence on expensive
and increasingly unreliable power from
utility Eskom.
In addition to solar, the mining firm
will also develop between 200 MW and
600 MW of new coal-fired thermal
power plant (TPP) capacity, also used to
meet its total operational demand of
around 500 MW.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 8
SOLAR
Sibanye’s CEO, Neal Froneman, said it
had taken the decision to generate its
own electricity because of the
intensifying disruption gripping stateowned Eskom’s supply. With forecasts
suggesting the situation is likely to
continue, greater energy independence is
vital to Sibanye’s continued production.
“Ongoing delays at Eskom’s new
capacity-build projects and a lack of
critical maintenance at its existing
stations has resulted in regular supply
interruption, which is likely to continue
for the foreseeable future,” he said last
week.
“Sibanye has undertaken several
studies into other alternative energy
sources that we consider reliable and
over which we will be able to exercise
some control. We are also engaging with
technology partners in order to develop a
deeper insight into independent power
generation,” Froneman added.
Furthermore, the economics of
distributed generation are favourable; the
company says it spent US$240 million
on electricity in 2014 and projects an
increase in power costs to US$266
million in 2015. This expense is not far
off the expected US$259 million
it would take to complete the 150-MW
solar scheme.
The listed gold miner has four main
operational sites in South Africa which
include the Driefontein, Kloof and Cooke
operations in the West Witwatersrand
region, and Beatrix in the southern Free
State.
The plant may be built in 50-MW
stages at a site close to Driefontein, with
the first 50-MW stage on line by 2017,
according to Mining Weekly. This would
lower the company’s average grid energy
requirements by around 10%.
Froneman said that plans were under
way to approach some banks which have
an interest in green energy for cash to
finance the projects. “There are certain
banks that will be very partial to green
energy,” he added. “We’ve done quite a
lot on that financing model and that’s
why the 3 billion rand [US$259 million]
is not a capital overhang on our balance
sheet.”
Meanwhile, Sibanye says it continues
to work with the national utility “to
manage and minimise the impact of load
shedding on the operations, by
implementing various pre-agreed actions
to reduce consumption by the amount
required.”
With pressure on the grid increasing,
Eskom – which generates up to 90% of
the country’s electricity – has urged
major commercial consumers to cut their
energy consumption by at least 20%.
Source: Sibanye
ASIA – Madhya Pradesh to
hold solar tenders in April
The Indian government says it is making
good progress in developing a 750-MW
ultra mega solar power plant in Rewa in
Madhya Pradesh.
The Ministry of New and Renewable
Energy said it was close to finalising the
acquisition of 15 square km of land, and
that tenders were due to be invited by the
government in April.
The US$643 million photovoltaic (PV)
project, which will be developed in three
250-MW stages, is a joint venture
between the state state-run PSU Urja
Vikas Nigam and Solar Energy
Corporation of India (SECI).
When completed it will be the world’s
largest solar power plant – ahead of
California’s 550-MW Desert Sunlight
project.
At least 20% of the energy generated
by the plant will be used within Madhya
Pradesh State.
In addition, the project is anticipated to
source domestically manufactured solar
PV modules. This is a government
stipulation to support Indian module
manufacturers in lieu of its decision not
to impose anti-dumping duties on
imported modules.
Work has already begun on the
construction of new power transmission
lines for the facility.
“We are planning to inaugurate the
plant on August 15, 2016. The plant will
be developed in three segments of 250
MW each. Land acquisition will be over
by end of [the] month and over 90% [of
the] land for the project is owned by
government…Preliminary reports are
already prepared and we will complete
formalities by April and we will be in a
position to invite tenders,” S R Mohanty,
Chief Secretary for New and Renewable
Energy, told the Times of India.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 9
SOLAR
The Madhya Pradesh solar power plant
is among the first to receive financial
support from the current government,
which allocated US$167 million to solar
power in the 2014-15 budget.
The World Bank said that it was ready
to support the project, which may require
a total investment of about US$1.3
billion.
It is in line with the government’s plan
to boost radically the amount it will
spend on renewable energy.
Over the next five years, India’s
renewable energy ministry has proposed
a gross budgetary support of US$640
million to set up 25 500-MW projects in
the states of Rajasthan, Gujarat, and
Jammu and Kashmir.
The country is aiming to install
100,000 MW of solar capacity by 2022, a
five-fold increase on its previous target.
Electricity production from the solar
project at Madhya Pradesh will cost less
than in any other state, at an estimated
US$0.08 per kWh.
EUROPE – E.ON sheds
Italian solar assets
German energy group E.ON is selling its
entire Italian solar generation portfolio to
Milan-based investment fund F2i, for an
undisclosed sum.
Italian subsidiary E.ON Climate and
Renewables Italia Solar will divest its
total generating capacity of 49 MW of
ground-mounted solar plants, the
majority (70%) of which are installed on
Sardinia.
F2i is an infrastructure investment fund
owned by a number of financial
institutions. It has built up a track record
of investment in the solar power market
in Italy through its dedicated Holding
Photovoltaica (HFV) unit, run by F2i's
“First Fund,” and which has installed 89
MW of solar capacity under management
in Italy.
The company is now expanding
rapidly as a force in the Italian solar
market, having also acquired assets via a
70% acquisition of Edens – Italy's second
largest wind power generator with 600
MW of installed capacity – from
previous holder Edison. F2i's “Second
Fund” also holds a stake in Alerion
Group, which owns around 200 MW of
capacity.
F2i intends to incorporate the newly
acquired E.ON capacity into HFV at a
future date.
E.ON has announced a shake-up of its
corporate focus in recent months, with a
new emphasis on renewable power
development, but the sale of these assets
has raised some questions about the
reason for doing so.
An E.ON press release describes the
plant locations as areas with “high
irradiation and benefit from favourable
solar regimes...providing stable cash
E.ON’s Fiume Santo plant in Sardinia
flows in the long term.” However, the
recent, retroactive cuts to Italy’s solar
feed-in tariff (FiT) suggest that these
regimes may not be as favourable as they
once were.
A spokesperson for E.ON confirmed in
written comments to NewsBase that the
reason for the sale of its Italian solar
power generation assets was not a
reflection of the group's attitude to solar
power, nor renewable power in general.
“We sold our Italian solar assets because
[of the fact that] E.ON withdraws from
the Italian market,” the spokesperson
said.
This is evident in the company’s other
regional sales. In early 2015 E.ON
agreed to the sale of 4,500 MW of Italian
capacity, comprised of a 600-MW coalfired power plant in Sardinia, and 3,900
MW of gas-fired power capacity spread
across the Italian mainland and Sicily.
The utility is set to continue to build up
its renewable power assets, solar in
particular. E.ON's spokesperson
commented that “currently E.ON is
mainly wind-driven,” but that is likely to
change in line with the group's solar
objectives. However, it will take some
time to reach the approval stage, with
“no investment decisions taken
concerning new projects.”
E.ON already has solar projects in
operation, for example in the US, such as
the 18-MW Fort Huachuca plant in
Arizona, which is now feeding output
into the grid.
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REM
26 February 2015, Week 08
page 10
GEOTHERMAL
AFRICA – Toshiba opens Kenya’s
largest geothermal plant
Kenya’s largest geothermal power plant
has formally started commercial
operations after its ceremonial opening
on February 19.
The Olkaria geothermal power plant is
located in the Olkaria district, about 100
km northwest of Nairobi. The No. 1 and
No. 4 units, which use Toshiba turbines,
each have 140 MW of capacity.
According to Toshiba, the two units’
combined output capacity of 280 MW is
equivalent to about 20% of the African
country’s current total electricity
generation capacity.
Electricity demand is predicted to
continue to expand in Kenya amid high
economic growth. Kenya constructed the
two units as part of efforts to boost its
total electricity generation capacity to
17,500 MW by 2030, from 1,660 MW at
present, Toshiba said.
In autumn 2011, Japan’s Toyota
Tsusho and South Korea’s Hyundai
Engineering won a full-turnkey contract
worth about 30 billion yen (US$252
million) to build the Olkaria project.
The contract was awarded by Kenya
Electricity Generating, a state-owned
company that produces about 80% of
electricity consumed in the African
country.
The contract included delivery of an
entire set of geothermal power plant
facilities, as well as associated civil
engineering and construction work.
Toshiba delivered four 70-MW
geothermal steam turbine and generator
sets for the project in 2013.
Toyota Tsusho is the trading arm of
Toyota Motor. The geothermal power
generation project in Kenya became the
first such project for the Japanese firm.
Toshiba boasts a track record of
delivering 52 geothermal steam turbine
and generator sets with a total installed
capacity of approximately 3,400 MW in
North America, Latin America,
Southeast Asia, Europe and elsewhere
around the world.
Toshiba claims to be the global leader
in geothermal power, accounting for 24%
of the world’s total installed capacity.
ASIA – MHPS wins Philippine
geothermal plant upgrade deal
Japanese thermal power system giant
Mitsubishi Hitachi Power Systems
(MHPS) has won a geothermal power
plant rehabilitation contract in the
Philippines.
The contract was awarded by Green
Core Geothermal Inc. (GCGI), a group
company of Energy Development Corp.
(EDC), the world leader in geothermal
power generation capacity, MHPS said
last week, without disclosing the value of
the deal.
The contract is for rehabilitation work
on the No. 1, No. 2 and No. 3 units at the
Tongonan geothermal power plant,
which has an output capacity of 37.5
MW each. The rehabilitation work on the
three units is scheduled to be completed
in February 2017, MHPS said.
According to MHPS, the Tongonan
geothermal power plant is located near
Ormoc, a port city on the central
Philippine island of Leyte. MHPS
delivered the core equipment for the
plant in 1981, enabling the Tongonan
facility to support the region's power
demand reliably for 34 years.
“Under the rehabilitation work on
order, MHPS will replace the steam path
components of the three dated steam
turbines at the plant with its newest
model,” MHPS said in a statement.
The Philippines is one of the world's
foremost generators of geothermal
power. EDC ranks as the global leader in
terms of geothermal capacity, with 1,159
MW.
MHPS was created on February 1,
2014 after Mitsubishi Heavy Industries
(MHI) and Hitachi integrated their
thermal power system operations. MHI
and Hitachi hold stakes in MHPS of 65%
and 35% respectively.
The joint venture company also took
over the two parent firms’ geothermal
power system, environmental equipment,
fuel cell, electric power sales and other
related businesses.
The contract with GCGI is the second
deal to be clinched by MHPS in the
Philippines in about four months. It is
also the second geothermal deal to be
awarded to the Japanese company in
about four months.
MHPS said on October 30 that it had
won a contract to supply two steam
turbine and generator sets for two units
of the planned Limay coal-fired power
plant in Bataan Province, the Philippines.
MHPS also said on October 29 that it
had won a full-turnkey contract to build a
25-MW geothermal power plant in
Mexico through its local subsidiary,
Mitsubishi Hitachi Power Systems de
Mexico (MHPS-MEX).
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REM
26 February 2015, Week 08
page 11
NEWS IN BRIEF
AFRICA
South Korean firm to
help build solar plant
in Nigeria
The federal government has again signed
a memorandum of understanding with a
local firm and its South Korean technical
partners for construction of a 1,000-MW
solar plant in Nigeria. Minister of Power
Chinedu Nebo said at the MoU signing
that the firms, Firstgate Business
Intermediaries and its South Korean
partners have shown considerate
commitment on the project. He thus
urged them to work on delivering the
projects within the time frame as
stipulated in the pact.
Nebo also requested the consortium to
tap into the huge power technology
abounding in South Korea to deliver
quality power plant in Nigeria. He noted
that there are solar energy farms in South
Korea that could power cluster industries
with advanced battery storage systems.
The minister said building such plants
requires huge financing, an average of
US$2 billion to have an operational
1,000-MW thermal power plant.
THIS DAY LIVE, February 18,
2015
ASIA
Philippine’s
renewable energy
deals up for grabs
The government of the Philippines has
launched the second round of open and
competitive selection process (OCSP 2)
for renewable energy deals, reducing the
number of hydropower sites up for
development due to “local issues” that
have yet to be resolved. Materials
distributed during the OCSP 2 launch at
Dusit Thani Manila in Makati City
showed the Energy Department is
offering four geothermal sites and 17
hydropower sites, down from 20 initially,
with aggregate potential capacity of more
than 867 MW.
The 21 areas are less than the 24 sites the
department previously announced after
taking into account results of studies,
location and existing infrastructure to
transmit power, director of the
department’s Renewable Energy
Management Bureau Mario Marasigan
said. “The reduction of target sites
resulted from concerns during
stakeholders’ consultation,” Marasigan
said. “There are questions on the
readiness of the NCIP (National
Commission on Indigenous Peoples) and
local government units. Is there conflict
in the area? If we were not able to
resolve those issues, we didn’t include
them,” he explained.
BUSINESSMIRROR, February 23,
2015
NTPC to invest
US$10 billion in
renewable
Clean Technica reported that renewable
energy capacity contributes 0.25% to the
total installed power capacity of India’s
largest power generation company,
NTPC Limited. This, however, could
change dramatically if the company
fulfils the commitment it stated recently.
NTPC Limited plans to invest US$10
billion to set up 10 GW of renewable
energy capacity over the next 5 years. A
large part of this capacity is expected in
the form of solar power projects. The
company has been asked by several state
governments to set up large-scale solar
parks and is reported to have 3GW solar
power capacity in its pipeline. NTPC has
already issued at least 4 tenders of 250
MW solar power capacity each. These
projects will be installed across 4
different states.
STEEL GURU, February 24, 2015
Egypt, Japan to set
up wind farm
Egypt and Japan International Cooperation Agency (JICA) signed a
contract on Thursday 19/02/2015 to set
up a 200-MW wind farm in Gabal el-Zeit
area in the Gulf of Suez at a total cost of
EGP 1938.9 million. The project will be
finalised in 35 months and funded by a
soft loan granted by JICA, said
Electricity Minister Mohamed Shaker
who attended the signing ceremony.
Shaker added that all environmental
studies of the project have already been
finalised. The project, to be linked to the
national power grid, aims at diversifying
energy sources in Egypt by depending
more on renewable energy. The new
wind farm has 100 wind turbines with
two MWs each. Egypt seeks to attain
20% renewable energy objective by
2020.
MENA, February 21, 2015
Alternergy may open
67.5-MW Philippine
wind park
Alternergy Wind One Corp may
complete its 67.5-MW Pililla wind farm
in the Philippine province of Rizal as
early as May 2015, about two months
ahead of schedule, a source has informed
the Manila Standard Today. The joint
venture between Alternergy Viento
Partners Corp, a unit of Korea Electric
Power (Kepco) and Meralco PowerGen
Corp was scheduled to finalise the USD177.9-million (EUR 157.4-million)
project in July 2015, according to Energy
Department records. However, an
informed person has told the newspaper
that the plant could be completed as early
as May. The Pililla wind scheme, which
comprises 27 wind turbines, received the
Confirmation of Commerciality from the
country’s Department of Energy (DOE)
in May 2013. The wind park is estimated
to be able to generate some 154 GWh of
electricity per year upon its completion.
It was announced in the summer of 2013
that Alternergy Wind had obtained a
USD-130-million loan for the project
from a group of banks led by Philippinebased BDO Capital & Investment Corp,
part of BDO Unibank. Alternergy Wind
is working on a USD-236-million project
to build another wind farm in Pililla, this
time with a capacity of 72 MW. The plan
is to have both parks hooked to the
distribution network of Meralco.
SEE NEWS, February 23, 2015
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All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 12
NEWS IN BRIEF
ABB India achieves 1
GW of solar inverter
sales
expansion envisaged by the Government
of India,” Chairman and CEO Ravi
Kailas said.”
MYRTAH ENERGY, February 25,
2015
ABB India on Tuesday became the first
company to reach sales with a
cumulative capacity of 1 Gw (GW) solar
inverters. The company marked the same
with the roll out of an order for Tata
Power Solar’s project for Kiran Energy
Solar Power at its manufacturing facility
in Nelamangala, about 45 kms from here.
ABB India commenced local
manufacturing of solar inverters in 2012
and partnered with several customers, the
company stated here on Tuesday. “We
hope to be a key component in India’s
solar powered future through our
solutions spanning the entire solar value
chain,” said Bazmi Husain, managing
director, ABB India. ABB is among the
largest suppliers of solar photovoltaic
inverters that play a key role in
converting sun’s energy into electric
current. ABB’s inverters range from 100
kW to 1,000 kW.
BUSINESS STANDARD,
February 24, 2015
Japan considers
solar tariff cut
Myrtah secures
finance for 150 MW
of wind projects
Mytrah, the India-based renewable
focused independent power producer,
announced it has signed an 8,527.8
million rupees (US$137.50 million) longterm loan agreement with a leading
Indian financial institution. The loan will
be used as long-term project finance debt
in building 150 MW of wind power,
which is now fully financed and expected
to be on stream in the next 12 months,
ahead of India’s 2016 wind season. With
the Company’s current capacity at 543
MW, this project will take Mytrah
beyond 690 MW. Additional projects in
development are expected to add further
production capacity for the 2016 wind
season.
“With expertise across the full value
chain and a 3500-MW development
pipeline, we are ideally positioned to
deliver a substantial part of the rapid
Japan is considering reducing the
incentives for developers of solar power
projects by as much as 16% to reflect
lower operating and maintenance costs.
The tariff for applications approved
between April 1 and June 30 could be cut
to 29 yen per kWh from the current rate
of 32 yen under a proposal presented by
a panel in charge of reviewing the
country’s renewable-energy incentives.
The tariff would be cut again to 27 yen
per kWh beginning in July, the panel
recommended.
The lower tariff could cool investments
in Japan’s booming solar market by
making it less attractive for developers
eager to lock in contracts at some of the
highest rates in the world. The tariff
reductions are part of an annual review of
the mechanism used by Japan to
encourage investments in renewable
energy. The incentive, known as a feedin-tariff, offers long-term contracts to
clean energy producers at above-market
rates. Japan’s feed-in-tariff rates are for
as many as 20 years.
BLOOMBERG, February 24, 2015
Bronzeoak working
on three solar parks
Bronzeoak Philippines Inc expects to
complete this year a trio of Philippine
solar parks for a total cost of US$232.8
million, a company official told the
Philippine Daily Inquirer. The renewable
energy projects developer has set up a
joint venture with a partner, whose name
has not yet been disclosed, to build a 55MW solar power station in the province
of Negros Occidental. The total
investment for this project is estimated at
some US$115.5 million, director Don
Mario Y Dia has said.
The JV, called San Carlos Sun Power
Inc, is seen to secure a notice to proceed
(NTP) with that project in April or May,
Dia added. At the same time, Bronzeoak
Philippines’ venture with asset manager
Thomas Lloyd Group is working on a
US$48.3-million scheme to expand the
existing 22-MW Sacasol 1 solar farm by
23 MW. Also, the Philippine company is
installing a 33-MW solar plant in La
Carlota for a total cost of US$69 million.
SEE NEWS, February 23, 2015
AUSTRALASIA
Solar experts claim
subsidies wasted on
panels
More Australians are buying cheap
rooftop solar panels that fail long before
their promised lifespan, prompting
claims a federal rebate scheme needs to
be overhauled to prevent dodgy systems
receiving public subsidies. Solar industry
experts say lax rules covering the scheme
which provides incentives of up to $4350
for a $5500 rooftop system means it is
not always delivering the environmental
benefits promised. They blame an
explosion of cheap, mainly Chineseproduced solar panels that have flooded
the market over the past five years that
are failing to provide the 15 years of
clean power expected. Installers in four
states told Fairfax Media that the worst
systems stopped working within 12
months, with others “falling apart”
within two or three years. Problems
reported include silicon that cannot stand
up to the Australian sun, water egress in
panels, fires and defective inverters. The
term “landfill solar” is used in the
industry to describe dodgy solar systems
of uncertain origin.
SMH, February 22, 2015
Australia, New
Zealand back
geothermal in
Grenada
Following moves by several nearby
Caribbean Islands, Grenada is exploring
the potential of geothermal energy on the
island.
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REM
26 February 2015, Week 08
page 13
NEWS IN BRIEF
Last year, the government signed a
“support partnership framework” with
the government of New Zealand, aiming
to facilitate such exploration, and now
that is moving forward. The government
said this week that Grenada had
contracted Jacobs New Zealand limited
to undertake the required studies and
technical analyses on the project.
The initial phase of its assessment will
cover a 30-week period, Grenada’s
government said, beginning with reviews
that first began in December. A team of
scientists from both New Zealand and
Australia with both be conducting
technical and geoscience analyses this
month and next month. This stage will
conclude in June, when the technical
reports and a presentation of the “way
forward” are submitted. “The
government of Grenada is committed to
enabling the provision of more
sustainable energy to the citizens of
Grenada, and reduction in reliance of
imported fossil fuel,” it said.
CARIB JOURNAL, February 18,
2015
Mighty River Power
write-down lesson
for Contact
Mighty River Power’s NZ$69 million
write-down on two failed geothermal
developments overseas is a lesson for
Contact Energy, according to an analyst.
Contact is considering investing in
geothermal projects overseas, spooking
the market, which was expecting up to
NZ$1 billion in surplus funds to be
returned to shareholders over the next
five years.
The big write-down on Mighty River
Power’s (MRP) Chilean and German
ventures, which it had earlier announced
it was quitting, contributed to a 93%
plunge in half-year net profit to NZ$8
million. While MRP would not comment
on Contact’s plans, its chief executive
Fraser Whineray said successful overseas
investments needed ideal conditions. “If
you want to take renewables
internationally you need to have a
tremendous amount of capital, a lot of
time and very favourable and stable
market conditions,” Whineray said.
NZ HERALD, February 25, 2015
Meridian Energy’s
output falls 15%
New Zealand hydro and wind power
company Meridian Energy produced
1,115 GWh for January 2015, down
15.1% on the year. Hydropower
generation last month fell to 1,020 GWh
from 1,200 GWh. The company’s wind
power output also decreased to 95 GWh
from 113 GWh, it said in a statement on
its website on Friday. Meridian Energy
produced a total of 8,017 GWh since the
start of July 2014, when its fiscal
2014/15 began. This is by 0.7% more
than the corresponding seven-month
period of its previous fiscal year.
SEE NEWS, February 21, 2015
EUROPE
Romania considers
reviving support for
renewable energy
The Romanian government is
considering changes to a support
programme for renewable energy after a
cut in incentives last year made many
wind and solar power projects
unprofitable.
Energy Minister Andrei Gerea said the
cabinet in Bucharest is talking with
companies and the energy-market
regulator about a solution that would
make investments in renewable energy
“profitable again.”
Until new incentives are announced,
companies such as CEZ, Enel and GDF
Suez have put investment plans on hold,
according to officials from the three
companies.
Last year, Romania joined other
countries in Europe such as Spain,
France, Italy and the UK in curtailing aid
for renewable power. The intention was
to avoid overcompensating companies
and to limit electricity-price increases for
consumers.
Companies such as Iberdrola responded
by scrapping investment plans in wind or
solar parks. Romania has an installed
capacity of more than 4,500 MWs of
renewable energy generation plants.
By cutting in half the number of the so
called “green certificates” granted for
each MW of power produced from wind,
Romania forced companies that funded
millions of euros of new generation
plants to reconsider how they will
recover their investments.
“We are not in the positive business case,
and it’s a complicated situation that I
hope it’s going to be fixed soon,” said the
head of CEZ’s Romanian unit Martin
Zmelik. “I’m not saying that we expect
the government to return to past
commitments. But we need
predictability, which we don’t have.”
BLOOMBERG, February 23, 2015
Scots fear offshore
CfD washout
There is “considerable unease” in
Scotland around this week’s Contracts
for Difference auction results with the
country’s offshore wind portfolio widely
expected to miss out on awards.
Scottish National Party spokesman on
energy and climate change Mike Weir
told today’s Energy, Environment and
Transport Forum at Westminster that it is
“highly unlikely” a Scottish offshore
project will be chosen.
He said: “The capacity up for grabs in
this first round of CfD allocation is
significantly less than the industry
expected.”
There are two projects sited off Weir’s
Angus constituency totalling more than
1GW, both of which are bidding in the
first round.
“It’s clear these both will not be granted
a CfD. There is no guarantee, and it is
highly unlikely, that a Scottish
application will be chosen.”
He called this “a dilemma” and said he
has raised the issue with the Secretary of
State.
Weir added: “Many developers are now
looking at their offshore wind projects
and looking at whether they want to put
these projects forward to spend more
money when there is no certainty for the
future.”
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REM
26 February 2015, Week 08
page 14
NEWS IN BRIEF
Scottish energy minister Fergus Ewing
previously expressed optimism that a
Scottish project would make the cut
under the CfD offshore pot, which is
expected to total 900MW. Winners will
be announced on Thursday morning.
RENEWS, February 22, 2015
Germany starts pilot
PV tender
Germany has commenced its first
150MW tender for ground-mounted solar
PV projects.
Federal network agency BNA said the
pilot bidding round, open until 15 April,
represents “a new chapter in the
promotion of renewable energies”.
Bids offering the lowest power sale rate
will win and the tender’s rules state that
bids cannot exceed €0.1129 per kWh.
BNA president Jochen Homann said:
“The promotion will be converted from
an administratively fixed subsidy rate on
competitively determined rates of
support.”
Three PV tenders will take place
annually through 2017 with each round
announced approximately eight weeks
before the bid date on the BNA website.
The PV tenders, made possible under a
decree green-lighted by Chancellor
Angela Merkel’s cabinet, will serve as a
test run for rounds on other renewable
technologies from 2017.
Homann added: “The aim is to evaluate
the findings of the pilot process fully and
wisely.”
RENEWS, February 24, 2015
Solar loses out in UK
renewables auction
The UK solar power industry says it has
suffered a huge blow from its cut in
support after an auction for government
subsidies. This is the first time the
technologies have been forced to bid
against each other for government
support.
Previously ministers have made a
judgment on how much support each
technology needed to thrive. Offshore
wind, still in relative infancy, is the
biggest winner with 1,162 MW receiving
public support to 2019. Onshore wind
will get support for 749 MW. The
biggest loser is solar, with public support
for just 71 MW, a figure that the industry
says will result in a big drop in its
market.
Solar is expected eventually to become
the top source of energy globally by 2050
as the technology continues to improve.
Costs have fallen 70% recently, thanks
partly to huge German subsidies that
attracted venture capitalists and drew
Chinese manufacturers into the market.
But the industry says it is not quite ready
to compete without subsidy yet in the
cloudy UK.
Leonie Greene from the Solar Trade
Association said: “This is incredibly bad
news. We cannot understand why
support is so little. Solar is massively
popular with the public and will compete
with fossil fuels by the end of the decade
if it is helped along the way. Today’s
decision appeared to be skewed in favour
of the big energy suppliers who dominate
the market.”
BBC NEWS, February 26, 2015
EU lawmakers back
new limit for foodbased biofuel
A European Parliamentary committee
has backed a new limit on traditional
biofuels made from food crops, which
critics say stoke inflation and do more
harm than good to the environment.
Those seeking to promote a new
generation of advanced biofuels made
from seaweed or waste welcomed the
vote. But those who have invested in
biofuels made from crops such as maize
or rapeseed say it puts jobs at risk.
Current legislation requires EU member
states to ensure that renewable sources
account for at least 10% of energy in
transport by 2020. The European
Parliament’s environment committee
agreed that biofuel from food crops
should not exceed 6% of final energy use
in transport, a tougher limit than the 7%
backed by member states last year.
It also agreed negotiations between
member states, the European
Commission and the Parliament should
start now on a legislative text, rather than
waiting for a plenary parliamentary vote.
Executive vice-president at enzyme
supplier Novozymes Thomas Nagy said
the decision was long overdue and
should help to spur necessary investment
in the right kind of biofuels. “A stable
and effective framework is the only way
forward to secure commercial
deployment,” he said.
But ePURE, the European Renewable
Ethanol Association, called on member
states “to remain firm on a minimum 7%
cap for conventional biofuels”.
REUTERS, February 24, 2015
Dutch Tocardo buys
UK tidal technology
Netherlands-based Tocardo Tidal
Turbines has agreed a deal to buy the
technology of UK company
Swanturbines. The transaction, financial
details for which were not revealed,
covers intellectual property, patents and
technology as well as the Swanturbines
trade name. Tocardo will gain the
company’s subsea tidal turbine
technology and deployment methods.
“For a long time, Tocardo has been
impressed by Swan’s technology, which
is complementary to our own tested tidal
energy technology,” said Tocardo chief
executive Hans van Breugel. “In
particular, Swan’s installation technology
is an important addition to our portfolio
and offering to our clients.”
Swanturbines technology generates
electricity from ocean currents through
mounting turbines to a support structure.
Chief executive James Orme said: “We
are happy that Tocardo see the value in
this technology and wish them all the
best for the future.”
RENEWS, February 26, 2015
Scottish government
cash to ‘kick start’
new wave energy
body
The Scottish government has awarded
GBP 14.3 million (US$22.2 million) to
Wave Energy Scotland to “kick start” the
new marine energy body.
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reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 15
NEWS IN BRIEF
It was set up in November last year to
speed up development and encourage
private investment in the industry. The
move followed the collapse of wave
power technology firm Pelamis which
called in administrators after failing to
secure development funding.
Scottish Renewables welcomed the
announcement, which it said comes at a
“challenging time” for the sector.
The first contract will be awarded to a
group of 12 former Pelamis employees,
led by the company’s former chief
executive.
Energy Minister Fergus Ewing said he
was glad they were able to “retain some
of the best brains working in marine
energy in Scotland”. “Only last month,
Highland and Islands Enterprise, on
behalf of Wave Energy Scotland,
successfully acquired the intellectual
property and a range of physical assets
previously owned by Pelamis,” Ewing
said.
The cash will be rolled out over the next
13 months.
BBC NEWS, February 25, 2015
LATIN
AMERICA
Pattern to work with
CEMEX Energia in
Mexico
Pattern Energy Group has announced that
its parent company, Pattern Energy
Group LP, signed a joint venture
agreement with CEMEX Energia, a
subsidiary of CEMEX, SAB de CV The
CEMEX Energia/Pattern Development
JV will jointly develop renewable energy
projects throughout Mexico.
“Through this strategic partnership with
CEMEX Energia, Pattern Development
has set a goal of jointly developing 1,000
MW of renewable generation in Mexico
over the next five years,” said President
and CEO of Pattern Energy Mike
Garland. “Mexico is a natural expansion
market due to Pattern Development’s
headquarters in Houston and its team’s
experience in developing over 1,000 MW
of wind projects in California, New
Mexico and Texas.”
Recent reforms in Mexican energy laws,
including a mandate for 35% of
generation to come from clean resources
by 2024, create significant opportunities
for development of Mexico’s substantial
wind and solar resources.
PATTERN, February 19, 2015
Brazil’s energy research agency, known
as EPE.
Developers registered 475 wind farms,
15 small hydroelectric and 13 biomass
plants. Natural gas projects were also an
important part of registrations, with 18
plants with a total of 6.6 GW.
BLOOMBERG, February 23, 2015
Gamesa to supply 75
turbines for Brazilian
wind power projects
General Motors has signed its first wind
power contract, agreeing to buy 34 MW
from a project being built in Mexico by
Enel Green Power. The American
carmaker will use power from the wind
farm in Palo Alto, Mexico, at its Toluca
facility west of Mexico City, GM said.
Remaining power from the 17 wind
turbines will be used at the Silao, San
Luis Potosi and Ramos Arizpe
complexes, it said.
When the project is operating, GM will
get more than 12% of its North American
energy consumption from renewable
sources.
BLOOMBERG, February 20, 2015
Gamesa Corporacion Tecnologica,
Spain’s biggest wind-turbine maker, got
orders to supply 75 units in Brazil for
projects from engineering company
Grupo Serven and power utility HidroEletrica do Sao Francisco. The Uniao dos
Ventos wind complex, in the
northeastern state of Rio Grande do
Norte, will receive 54 turbines, Gamesa
said. Owned by Serveng Energias
Renovaveis, a unit of Serveng, the 113.4MW wind complex is slated to start
operating by the end of 2017.
The Papagaio and Coqueirinho wind
farms, jointly owed by Hidro-Eletrica do
Sao Francisco and developer Sequoia
Energia, will receive 13 turbines. Their
Tamandua Mirim 2 project in the
northeastern state of Bahia will receive
eight turbines. The parks are planned to
start operating in the first half of 2016
BLOOMBERG, February 19, 2015
Brazil developers
register 19 GW for
July energy auction
Energy developers in Brazil applied to
sell power from 521 plants, with a total
of 18.929 GW, in an auction planned for
July 24. Most applications were for wind
farms. Wind projects with a total of 11.5
GW of capacity are registered for the
event, according to a statement from
GM’s first wind
power deal with Enel
on Mexican project
Eurus Energy buys
44% stake in
Uruguay wind project
Eurus Energy Holdings, a renewableenergy company jointly owned by Tokyo
Electric Power and Toyota Tsusho
bought 44% of a wind farm being built in
southeastern Uruguay by Akuo Energy.
The 42-MW Minas wind farm will
include 14 turbines from Denmark’s
Vestas Wind Systems and sell energy to
state power utility Administracion
Nacional de Usinas & Trasmisiones
Electricas under a 20-year contract, the
companies said. The purchase price was
not disclosed.
Construction on the project, located in
Lavalleja, began in March and is
expected to be done in early 2014.
BLOOMBERG, February 19, 2015
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All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 16
NEWS IN BRIEF
MIDDLE EAST
Kuwait plans solarpowered fuelling
stations
Deputy Chief Executive Officer of
Kuwait National Petroleum Company
(KNPC) for Marketing and Planning
Shukri Al-Mahrous unveiled here on
Sunday that Kuwait has plans to build
100 solar-powered fuelling stations. The
100 stations would be built in five years;
20 every year, Al-Mahrous told reporters
on the sidelines of his participation in the
KNPC’s annual meeting with
contractors, which kick started here
earlier in the day. He pointed out that the
first 20 stations are expected to start
operation by 2017. The plans come
within the framework of the KOC’s
efforts to increase reliance on renewable
energy in generating electricity, he said.
KUNA, February 22, 2015
Emirates Insolaire
showcases coloured
solar panels in Doha
Emirates Insolaire, a pioneer in the
development and application of new
solar technologies and a subsidiary of
Dubai Investments (DI), is showcasing
its coloured solar panel featuring
Kromatix technology at the ongoing
Façade Design and Engineering Summit
in Doha, Qatar. The firm is unravelling
ways to adapt its coloured and
sustainable solar panels, its breakthrough
photovoltaic (PV) modules as well as
solar thermal collectors to enhance the
design appeal and aesthetics of building
façades in the region, said a statement.
Emirates Insolaire solar panels, coming
in virtually any colour, have
revolutionised the industry, as they can
be easily integrated in natural colours to
any façade and roof and thus offer costeffective and sustainable customisation,
it said. The company has already
produced and installed its first façades in
Europe, while it continues to receive
enquiries from the UAE, Qatar, Saudi
Arabia, Kuwait, Egypt, Bahrain,
Lebanon, as well as from Europe, Asia,
the US, and Brazil.
TRADE ARABIA, February 22,
2015
NORTH
AMERICA
NextEra Energy
plans to build
Hawaii’s largest wind
farm
A subsidiary of NextEra Energy, the
Florida-based company that is buying
Hawaiian Electric for US$4.3 billion, has
plans to build the largest wind energy
farm in Hawaii on the southern coast of
Maui, a company spokesman confirmed
to PBN. The more than 120-MW project,
which would be located on Department
of Hawaiian Home Lands at the
Kahikinui homestead on the southern
slopes of Haleakala, would be built,
owned and operated by NextEra Energy
Resources, according to documents filed
with the state agency that were obtained
by PBN.
The Kahikinui Wind project would be
built on about 500 acres and lease the
land from DHHL for a term of 35 years.
PACIFIC BUSINESS NEWS,
February 20, 2015
Blackrock to buy
stakes EDF Texas
winds projects
BlackRock, the world’s largest money
manager, is buying 50% stakes in three
wind projects developed by EDF in
Texas. BlackRock closed its acquisition
of half of the 200-MW Hereford project
in Deaf Smith County and agreed to buy
the stakes in the 200-MW Longhorn and
194-MW Spinning Spur 3 wind farms
after they’re completed later this year,
the New York-based firm said.
BlackRock declined to disclose financial
terms. The projects are being developed
by San Diego-based EDF Renewable
Energy, a unit of the French utility.
BLOOMBERG, February 19, 2015
LDK Solar announces
closure of US
bankruptcy
proceedings
LDK Solar, currently in provisional
liquidation, has announced that, on
February 18, 2015, Judge Laurie Selber
Silverstein of the United States
Bankruptcy Court for the District of
Delaware entered final decrees closing
LDK Solar’s Chapter 15 bankruptcy
proceeding as well as the Chapter 11
bankruptcy proceedings of three of LDK
Solar’s US subsidiaries, LDK Solar
Systems, LDK Solar USA and LDK
Solar Tech USA. This entry of the final
decrees was the last step in the US
bankruptcy proceedings for LDK Solar
and the US Debtors, and marks their
formal closure.
LDK Solar is a leading vertically
integrated manufacturer of photovoltaic
(PV) products. LDK Solar, through its
operating subsidiaries, manufactures
polysilicon, monocrystalline and
multicrystalline ingots, wafers, cells,
modules, systems, power projects and PV
solutions. LDK Solar’s principal
manufacturing facilities are located in
Hi-Tech Industrial Park, Xinyu City,
Jiangxi Province in China.
LDK SOLAR, February 19, 2015
Energy secretary
praises advances at
First Solar plant
US Secretary of Energy Ernest Moniz
and chairman and president of the
Export-Import Bank of the US Fred
Hochberg journeyed to the Toledo area
to tour Tempe, Arizona-based First
Solar’s only US solar panel
manufacturing plant. The two men had
been invited by company CEO Jim
Hughes to visit the plant whenever they
wanted.
Have a question or comment? Contact the editor – Andrew Dykes([email protected])
Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
REM
26 February 2015, Week 08
page 17
NEWS IN BRIEF
First they viewed a 30-minute
presentation about the company, then got
a guided tour of the assembly area where
glass sheets are coated with thin-film
photovoltaic materials, turned into
panels, then tested. “I was last here in
2011. The step up and efficiency of these
panels is remarkable, a 50% increase
since 2011,” said Hochberg, whose bank
provides financing and insurance for
projects overseas so that American
companies like First Solar can compete
with foreign firms, many of which are
state-subsidized and have unfair
economic advantages in the marketplace.
TOLEDO BLADE, February 20,
2015
First Solar,
SunPower in talks for
joint yieldco
First Solar and SunPower are in talks to
form a joint yieldco, an entity that
provides power under long-term
contracts and pays out much of its cash
flow to shareholders. The two solarproducts companies have separately
made statements in the past about
possible formation of yieldcos. Rival
SunEdison spun off its own yieldco,
TerraForm Power, which had strong
demand when it went public in July.
In late trading, First Solar shares were up
11% and SunPower rose 13%.
WSJ, February 23, 2015
goes, should prioritize rooftop solar and
other small-scale renewables, rather than
massive projects in the desert.
DESERT RUN, February 24, 2015
Over 12,000
comments on desert
renewable energy
plan
SunEdison predicts
installations doubling
on solar growth
More than 12,000 people submitted
comments on California’s Desert
Renewable Energy Conservation Plan
before this week’s deadline, many of
them urging policymakers to protect
specific parts of the desert from
development.
Unprecedented in scope and scale, the
10,000-page draft plan has far-reaching
implications for the future of California’s
deserts. The plan covers 22.5 million
acres across seven counties, encouraging
solar, wind and geothermal development
in some areas and setting aside other
areas for conservation or recreation.
Major environmental groups have largely
supported the idea of balancing largescale renewable energy development and
conservation, but local activists have
called the plan an existential threat to the
desert’s iconic landscapes and delicate
ecosystems. Regulators, their argument
US solar panel maker and project
developer SunEdison expects its annual
installations to more than double this
year. The company intends to complete
solar and wind power facilities with
2,100 to 2,300 MW of capacity during
2015, according to a presentation. Last
year, it completed 1,048 MW of solar
farms, compared with a forecast of 1,000
to 1,100 MW.
SunEdison, based in Maryland Heights,
Missouri, expects those figures to jump
to 2,800 MW to 3,800 MW in 2016,
rising to 3,800 MW to 4,000 MW in
2017. The company listed a so-called
yieldco, TerraForm Power, in July to
hold and operate power projects it
develops, and it’s buying US developer
First Wind Holdings to expand into other
renewable-energy technologies.
BLOOMBERG, February 24, 2015
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Copyright © 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
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