SUN AND MONEY TOGETHER AT SUNEDISON

MEMC Creates SunEdison Capital, Proposes Company-Wide Name Change

13 March 2013 (Solar Industry)

“MEMC Electronic Materials Inc. has formed SunEdison Capital, a new division within its SunEdison subsidiary…

“SunEdison Capital will focus on aggregating capital to develop, build and finance the long-term ownership of solar power plants. As part of this effort, the division will develop internal and external capital funds and facilities, playing a key role in financing the growth of SunEdison's solar business in addition to acquiring new projects.”

click to enlarge

“Additionally, MEMC has released details on a forthcoming company name change. Subject to shareholder approval, the company will rename itself SunEdison Inc. If approved, the name change would be effective after the company's annual meeting of shareholders on May 30, 2013.

“This name change does not reflect a change in business strategy related to either of the company's segments, MEMC says. Rather, the name change is designed to better reflect the synergistic nature of the two businesses and help create and maintain one global brand name.”

Tweet

Read More

THE FIGHT FOR NEW ENERGY IN NO CAROLINA

New Bill Seeks To Repeal N.C.'s Renewable Energy Mandate

Laura DiMugno, 14 March 2013 (North American Windpower)

“…New legislation proposed in the [North Carolina's] House of Representatives would repeal North Carolina's renewable portfolio standard (RPS), the major driver of renewable energy development in the state…North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard, passed in 2007, is 12.5% by 2021 for investor-owned utilities and 10% by 2018 for electric cooperatives and municipal utilities. The authors of the bill, dubbed the “Affordable and Reliable Energy Act,” say the state’s RPS is raising energy costs for North Carolina consumers.

“However, a recent study found that North Carolina’s clean energy policies - including the RPS - will actually save customers over the long run. According to the study, electricity rates will peak in 2015 and then decline through 2026, ultimately saving customers $173 million…[B]etween 2007 and 2012, clean energy resulted in $1.7 billion in economic benefits to North Carolina and generated $2.56 billion in spending in the state's economy…and while the broader North Carolina economy lost more than 100,000 jobs between 2007 and 2012, the state gained 21,162 clean energy jobs during the same period…”

click to enlarge

“According to the American Wind Energy Association, there are at least 18 facilities in North Carolina that manufacture components for the wind energy industry…PPG Industries, a supplier of fiberglass to the wind energy industry, has two factories that employ hundreds of workers…A repeal of the RPS would likely lessen demand for offshore wind in North Carolina…A comprehensive study…found that North Carolina has the best offshore wind resource on the East Coast…

“North Carolina’s highly regulated electricity market limits opportunities for newer energy technologies…The bill would also eliminate all funding for renewable energy research, further limiting the ability of [New Energies like] offshore wind to compete with more established technologies…Despite backing from state lawmakers, however, it is unlikely that the state’s voters will support the bill: Recent poll results…found that 69.7% of North Carolina voters are in favor of the state’s RPS program…The bill still must travel through a number of committees before going up for a vote.”

Tweet

Read More

HOW TO BOOST EV SALES

What Will It Take To Boost The Overall Success Of EVs?

7 March 2013 (Renew Grid)

“Charging stations and battery-swap locations are the most crucial to developing a sustainable electric vehicle (EV) infrastructure, according to respondents to a recent survey by PwC...[T]he global hybrid and EV market share [is projected to] reach 6.3% by 2020. As municipalities continue to work with the private sector to meet future demands and develop ‘smart cities,’ finding the ideal ratio between integrated public charging stations and the number of EVs on the road is a prevailing challenge when investing in existing and future infrastructure…

“Approximately 25% of survey respondents said one public station for every 20 EVs is an ideal ratio, while 20% indicated one station for every five vehicles is ideal…Roughly 80% of respondents also indicated that 30 minutes or less charge time is considered fast charging for EVs.”

click to enlarge

“…46% of respondents felt that long-term total cost of ownership savings is the most likely reason consumers would be willing to pay an up-front premium for an EV. PwC says automakers continue to evaluate the price premium consumers are willing to pay for an EV…[and found] consumers willing to pay a premium price would need to remain under $5,000 (PHEVs 57.9%, PEVs 47.7%)…

“Survey respondents indicated global collaboration (26.6%) will lead the development and production of EVs and supporting technologies by 2020. Respondents said China will lead by 2020 (25.9%)…[A]utomakers are working to find a balance between production and consumer demands. The trend is to build where you sell. Automakers planning for long-term success will likely have the competitive edge.”

Tweet

Read More

PRES TO TALK ENERGY

Obama Confers With Energy, Oil Executives on Second-Term Agenda

Roger Runnigen, March 8, 2013 (Bloomberg BusinessWeek)

“President Barack Obama has conferred with more than a dozen oil, natural gas and clean-energy executives, as well as academic advisers, at the White House in advance of an energy-policy speech [March 15 at the Argonne National Laboratory, near Chicago. It was billed as a meeting on Obama’s second term ‘clean energy agenda,’…and coping with climate change]…

“The meeting included Jim Hackett, chairman of Anadarko Petroleum Corp. (APC), the second-biggest U.S. independent oil and natural gas producer by market value; Lew Hay, chairman, NextEra Energy Inc. (NEE), which sells energy from natural gas, wind and nuclear power sources…Alex Laskey, president and co- founder, Opower Inc., a provider of energy-monitoring software…Debra Reed, chief executive officer of Sempra Energy (SRE), a U.S. natural gas distributor; Terry Royer, president and chief executive officer of Winergy Drive Systems Corp., a maker of wind-turbine parts…”

click to enlarge

“…Jeff Shaw, chief executive officer of Southwest Gas Corp. (SWX), a natural gas distributor; Fred Smith, chairman, president and CEO of FedEx Corp. (FDX), operator of the world’s largest cargo airline…Cynthia Warner, chairman and chief executive officer of Sapphire Energy Inc., a producer of fuel from algae…[Shirley Jackson, president of Rensselaer Polytechnic Institute and former chairwoman of the Nuclear Regulatory Commission; Bill Ritter, a former Colorado governor and clean-energy advocate who’s director of Colorado State University’s Center for New Energy Economy, and Cass Sunstein, now a professor at Harvard Law School and former regulatory adviser at the White House Budget office in Obama’s first term].

“Since Obama took office, domestic oil and gas production has increased annually, energy production from renewable sources such as wind and solar has more than doubled, and emissions of carbon pollution have decreased…The energy talks at the White House covered the role of natural gas in in the U.S. economy, new opportunities for renewable energy such as wind, solar and advanced biofuels, the importance of clean energy research and development, and increasing energy efficiency in homes and businesses…”

Tweet

Read More

A TOOL TO KNOW THE SUN

Sun Number Develops New Solar Analysis and Sales Tool

12 March 2013 (Solar Industry)

“Sun Number LLC has released a new tool designed to improve solar companies' capabilities to analyze the solar potential of properties and close sales with customers.

“The tool, developed with support from the U.S. Department of Energy's SunShot program, utilizes high-resolution aerial data, advanced GIS technology and proprietary algorithms to produce instant analyses of the solar potential of residential and commercial building rooftops…Solar companies can immediately obtain information about a property's solar suitability without an on-site visit.”

click to enlarge

“Sun Number helps solar companies identify properties that have high solar suitability for proactive sales efforts. The online tool also shortens the sales cycle by providing suitability information for properties, including specifics on rooftop morphology and the impact of shade…It takes into account the pitch of every roof section, the orientation of every roof plane, shade created by surrounding buildings and shade created by surrounding vegetation that might impact solar potential.

“Additionally, Sun Number scores take into account regional factors, such as average sunshine for the market, atmospheric conditions, availability of local solar incentives, regional cost of electricity for calculation of solar savings, and other factors.”

Tweet

Read More

THE VALUE OF SOLAR

Austin Energy’s Value of Solar Tariff: Could It Work Anywhere Else? Austin’s solar policy framework may just be too weird to duplicate.

Anne Lappe, March 8, 2013 (Greentech Media)

“Last fall, Austin Energy become the first utility in the U.S. to offer a ‘Value of Solar Tariff’ (VOST) to its residential electricity customers…[It is] an alternative to net metering, the bill credit mechanism that has driven most customer adoption of solar in the U.S…[U]tilities elsewhere…are looking to ditch net metering and jump on the VOST bandwagon…Here’s how the Austin VOST works: …[A] residential customer…is automatically signed up…[and pays] a monthly energy bill based on how many kilowatt-hours of electricity [are consumed and credited for every kilowatt-hour generated. That credit is subtracted…[from the] monthly electricity bill…

“…[T]he VOST rate is set up to more fairly reward solar system operators for the energy they produce…[It] is calculated using a value of solar algorithm…updated annually…[that accounts for]…Avoided fuel costs…Avoided capital cost of installing new power generation…Avoided transmission and distribution expenses…Line loss savings…Fuel price hedge value…[and] Environmental benefits…[Solar advocates in Austin say that they hope to add to the list of benefits, perhaps including a value for the economic development benefits of building inherently local energy infrastructure. These are] the same value elements that are examined when looking at the cost and benefit balance under net metering for residential and commercial customers…[F]rom 2006 through 2011, the calculated value of solar fluctuated from 10.3 cents per kWh to 16.4 cents per kWh for a fixed system. In October 2012, when the VOST was actually implemented, the value was set at 12.8 cents per kWh…”

click to enlarge

“…[T]here are a few issues unique to Austin Energy, and Austin, which make it unlikely that a VOST would look the same if it were replicated by utilities elsewhere…[especially in the Value of Energy, Environmental Benefits, and Fuel Price Hedge Value calculations]...In a utility service area where leasing is allowed, and is the preferred option for customers, a VOST becomes more complicated…In Austin…the City Council acts as the regulatory backstop to VOST decisions. A Public Utility Commission’s (PUC) main mission…is to keep costs low for ratepayers. City councils have much wider missions, which includes protecting the public welfare…

“One of net metering’s strongest virtues is its simplicity…VOSTs [should] initially be introduced as an option, not a replacement for NEM. Retain NEM for on-site generation, and develop a VOST as a voluntary alternative option for customers…See how it works before ditching the thing that does. Unless you are dealing with a solar champion like Austin Energy, the one-to-one retail net-metering credit keeps the conversation simple and fair for consumers, and limits the opportunities…to undervalue distributed solar.”

Tweet

Read More

IRS SOON TO DEFINE ‘IN CONSTRUCTION’ FOR WIND

Insider: Clarity On PTC 'Begin Construction' Language Expected Soon

Mark Del Franco, 5 March 2013 (Nrth American Windpower)

“…[The Internal Revenue Service (IRS)] has imposed an internal deadline of March 31 to clarify what it means for a wind project to be considered under construction, per the ‘begin construction’ language included in the [version of the production tax credit (PTC) signed into law in January]…[T]he IRS [repotedly] recognizes the urgency…to resolve the issues and release the guidance to wind energy developers.

“Historically, the IRS has taken up to a year - or even longer - to resolve such discrepancies. However, the wind industry does not have the luxury of time…The PTC extension included a change in language that requires projects to begin construction before Jan. 14, 2014, in order to qualify for the PTC, rather than the ‘placed in service’ deadline included in previous versions of the PTC.”

“Without further guidance, developers, suppliers and financiers are more hesitant to move forward with projects…[O]ne of the biggest challenges for the IRS will be to establish a rule that is fair to all the technologies mentioned in Section 45 of the Internal Revenue Code, which includes electricity produced from certain renewable resources,’ such as wind, solar, geothermal, municipal solid waste and qualifying hydropower…

“…The IRS released a similar ‘begin construction’ clarification in July 2010, after the issuance of the U.S. Department of the Treasury’s Section 1603 cash-grant program. The American Wind Energy Association has been encouraging the IRS and the Treasury to consider similar rules for the PTC, as the industry is already familiar with that guidance…[Less likely] is that rules pertaining to bonus depreciation - which also includes a ‘begin construction’ component - could be applied to PTC. However, bonus depreciation applies broadly to all businesses…”

Tweet

Read More