CleanTech Marketplace


What’s Ahead for the Smart Grid in 2012?

The past year was a busy one for the smart grid, with advanced energy meters and other major grid improvements being rolled out everywhere from Mexico and China to South Korea and the U.S.  So what does 2012 hold? Chris King, who’s chief regulatory officer for the smart-grid firm eMeter (recently acquired by Siemens), offers his predictions:

  1. Significant smart meter growth in emerging markets in South America, Eastern Europe and elsewhere. $50 billion smart meter and smart-grid opportunity by 2020. Leading countries include Brazil, Poland, and Singapore.
  2. Prepayment service will become a major topic of discussion now that smart meters make it possible to implement at no extra cost; the hope is that this will help solve (Britain’s) national scandal of cutting off power to over 6 million poor households per year. This is over 1,000 times as many disconnections as the US, which, with five times the population of the UK, has fewer than 5,000 disconnections per year.
  3. Smart Grid 2.0 will become a reality where smart meters have been fully deployed, including places like Ontario, Texas, California, Scandinavia and Italy. Consumers will see pricing options, new and interesting data applications — such as Green Button — and more automation, especially smart thermostats such as Nest.
  4. Leading utilities will begin deploying data analytics applications to gain insights from the rivers of data now arriving from smart meters and smart-grid devices.
  5. Waste of renewable energy will become a significant problem, with utilities paying millions to curtail wind power and, for the first time, solar power. The solutions — more transmission lines and time-based pricing to encourage load shifting to match consumption to production — will take longer to implement.
  6. Electric vehicles will reach critical mass, with over a quarter million plug-in vehicles sold worldwide.
  7. Smart-grid standards efforts will continue to make good progress, including data exchange standards for providing data to third parties authorized by consumers and sending data from meters to home area network devices in homes and businesses.
  8. Energy data privacy and security will remain top of mind for policymakers, ensuring that industry delivers on its commitments to provide strong protections for both.
  9. Policymakers will continue to expand opportunities for participation in the electricity market by the demand side, thus increasing reliability and lowering costs. National regulators in the US, the UK, France, Germany and elsewhere will take concrete regulatory steps such as creating capacity markets.
  10. The industry’s body of literature and experience will continue to become more compelling regarding issues such as consumer desires for information, pricing choices, and automation; utility reliability and operating savings related to smart meters; the positive business cases for smart meters; the favorable impression that the large majority of consumers have for smart meters in spite of the few but vocal opponents; and the ability for smart meters and smart grids to solve the problems related to implementation of renewable resources.

 

Electric Utilities Investing $4.1 Billion by 2018

Dec. 2011

Utilities are expected to invest in cyber-security measures to protect electrical grids as they upgrade the infrastructure to include smart meters and other technologies.

Increasing risks to the electrical grid will require utilities to invest a total of $4.1 billion between 2011 and 2018 in cyber-security for industrial control systems, research firm Pike Research said Aug. 23. The investments will be part of the larger upgrade to the nation's energy grid, which include the installation of smart meters.

In Pike's report, "Industrial Control Systems Security," the clean-tech market intelligence firm analyzed the market for industrial control systems (ICS) for smart grids as well as performed an assessment of the major risks facing smart grids. The cyber-security investments will increase at a relatively steady rate over the next seven years, rising from $309 million in 2011 to $692 million annually by 2018, Pike said in its forecast.

“The smart grid changes everything, but when it comes to cyber-security issues, much of the story remains the same,” said Pike Research senior analyst Bob Lockhart.

In the past, electrical grids were controlled by electro-mechanical and pneumatic devices. Today, they are controlled by computers running either Windows or Linux operating systems on standard IP networks, according to Pike. Wireless and Bluetooth capabilities are being added to supervisory control and data acquisition (SCADA) devices that are integral to the grid backbone's day-to-day operations. While the technology is intended to make utilities more efficient, they also open up a plethora of risks because these systems are no longer isolated within the facilities, Pike said. They are now directly accessible from the Internet and can no longer rely on the facility's perimeter defenses.

The discovery of the Stuxnet worm highlighted the security vulnerabilities in electrical grids and other critical infrastructure, as well as the "fragility" of SCADA systems, Lockhart said. "Nearly overnight, ICS security went from being a non-issue to being critical," he said.

Investments in ICS security will include control consoles and systems, telecommunications security, human-machine interfaces, system sensors and collectors, Lockhart said. The enhancements will benefit areas such as distribution automation, substation automation and transmission upgrades, according to the report.

The investments will also create new professional opportunities, such as development and maintenance of security reference architectures for utilities' control networks, development of security policies and procedures, maintenance of employee security awareness programs for ICS and change management, the firm said.

An unfair fight for renewable energies

By Arnold Schwarzenegger, former governor of California - published: December 4

More energy from the sun hits Earth in one hour than all the energy consumed on our planet in an entire year.

In those terms, it is absurd that our federal government spends tens of billions of dollars annually subsidizing the oil industry, which pulls diminishing resources from underground, while the industry focused above ground on wind, solar and other renewable energies is derided in Washington.

Federal support for development of new energy sources is lower today than at any other point in U.S. history, and our government is forcing the ­clean-energy sector into a competitive disadvantage. To bring true competition to the energy market, ensure our national security and create jobs here rather than in China or elsewhere, we must level the playing field for renewable energies. In this presidential primary, Americans need to hear where the candidates stand on this critical issue.

Don’t get me wrong — we should not demonize fossil fuels. For more than 200 years, the United States has rightly invested in developing new sources of energy. From the land grants for timber and coal in the 1800s to the tax expenditures for oil and gas in the early 20th century to the investment in developing nuclear energy, support for energy innovation has always helped drive America’s growth.

Renewable energies, however, have not been treated the same way. When the oil, gas and nuclear industries were forming, federal support for those energies totaled as much as 1 percent of federal spending. Subsidies available to the renewables industry today are just one-tenth of 1 percent.

If our goal is to encourage competition in the energy marketplace, then the conversation in Congress shouldn’t be about attacking green energy or cutting all oil subsidies. The conversation should be about leveling the playing field so that renewables are bound by the same rules as fossil fuels. We must make it a national priority to clear the red tape and bureaucracy that puts renewables at a disadvantage. If the candidates running for president believe in energy independence as a matter of national security — regardless of whether they agree with the science behind climate change — then the issue of investing in renewable energies must be front and center in the campaign.

Instead of a simplistic and misleading one-word argument against green energy — Solyndra! — I’d like to hear from the candidates that government shouldn’t pick winners, as it clearly has with our lopsided subsidies. Instead of talking about one terrible green investment or, for that matter, any of the investments in fossil fuels that have cost billions, I’d like to hear them talk about how to make sure we properly vet all our investments to get a good return for the American people.

Federal investment is critical to the success of the renewable energy industry. That’s not a new idea. The same was true for coal, which would not have been economically feasible without tax exemptions and incentives. It was also true for offshore oil drilling, which was deemed unprofitable without royalty waivers and favorable packaging of federal leases.

Imagine what the renewables industry would look like if the federal government leveled the playing field and showed the same dedication we have in California. Our green sector is the brightest spot in California’s economy, having grown 10 times faster than any other business sector since 2005. Today, one in every four jobs in the U.S. solar industry is in California. One-third of U.S. clean-tech venture capital flows into our state. Nurturing the green-tech sector was the right thing for me to do as governor, and it is the right thing for the federal government to do.

I know from experience that it is frustrating for states to wait for the federal government to take action. Around the world, countries await treaties and international consensus. The United Nations convention on climate change is taking place in Durban, South Africa. The U.N. leadership on this subject has been great, but I don’t think we should just wait around. That’s why I am focusing on sub-national work; states, provinces and regions have shown that the time for action is now.

What our nation needs — for our economy, our national security and our environment — is more than a treaty signed by dignitaries. We need a level field on which the United States allows renewable energies to develop by the same rules as oil. If we can get there, the bountiful clean energy above our planet’s surface will compete well with the oil beneath it.

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Putting Solyndra Into Perspective

October  2011

Beyond reducing pollution and the nation's dependence on foreign oil, the solar industry employs 100,000 people within the United States, doubling the number of solar related jobs from 2009. The industry is projected to employ almost 500,000 by 2016, according to the Solar Energy Industries Association.

What makes Solyndra bankruptcy such a high profile event was the Administration's decision to turn Solyndra into the poster child for new clean tech economy.  The administration took a leap of faith with California-based Solyndra, expecting that its unique panels to be competitive and possibly transformative in the emerging clean energy industry sector, while providing the United States a technology lead and global market advantage.  

Solyndra built panels of lightweight, curved film that captured more of the sun's power than conventional flat panels. Its panels were easier to install and ideally suited for flat roofs on commercial buildings, a growing market sector. Solyndra's panels also weren't made of expensive silicon. But when silicon prices plummeted, and China decided to flood the market with cheaper panels, Solyndra unraveled.

The company's failure, however, was made to order for a political season marked by disinformation and unreasonable discourse. 

The FBI, Congress and inspectors general from the Departments of Energy and Treasury are now looking into whether the Obama administration rushed to sign a $535 million loan guarantee for the company without a thorough examination of its finances or the market for its unique solar panels. Solyndra declared bankruptcy Aug. 31, costing 1,100 jobs and putting taxpayers on the hook.

No doubt, Republicans will continue to use the Solyndra development to keep this story alive for as long as possible, especially in today’s polarized political environment.  The Solyndra investigation should not distract or keep President Obama and Congress from taking responsible risks that are inherent in launching and nurturing new clean tech companies, including those in the solar energy sector.

After all, this country continues to financially underwrite, subsidize, and provide generous tax breaks to the legacy fossil-fuel energy sector, while heavily subsidizing the entire nuclear energy cradle-to-grave waste disposal process -- and neither energy group holds the promise of energy independence or transitioning America to a clean and competitive energy economy.

American solar companies are making gains in the international market even though they are competing against Chinese manufacturers that receive deep subsidies from their government. It must not be forgotten that part of Solyndra's downfall was due to China's undercutting competition with cheaper, subsidized panels.

That is not to say allegations of lax government oversight should be ignored. On the contrary, all steps should be taken to protect taxpayers' interest. An investigation of Solyndra will determine whether there is any wrong doing associated with the Solyndra's use of public R&D funds.  But Congress must not use this occasion to score political points at the expense of the nation's need to embrace U.S. clean energy innovation and the job machine it represents.

The United States once the global technology leader in green power, risks that loss in technology leadership and the U.S. jobs connected with it in the absence of a political will to break our nation’s oil addiction.   

 

Green Manufacturing, Solar Jobs, and the Media  

Sept. 2011

Over the last 36 months, more than 100 new U.S. renewable energy and energy efficiency manufacturing plants have opened in the United States.

The U.S. solar industry is booming. Stion just ribbon cut its new CIGs photovoltaics manufacturing plant in Hattiesburg, Mississippi. 

Sunvia (Norcross, Georgia), a U.S.-based solar photovoltaics (PV) manufacturer, in January 2010 announced that the company had received 5.7 million U.S.-dollars in Advanced Manufacturing Tax Credits (AMTC) to expand its solar cell manufacturing facility in Norcross. Sunvia started producing mono-crystalline solar photovoltaic (PV) cells at this facility in October 2008, and now operates two solar cell production lines with an annual capacity of 100 megawatts (MW). Currently, the company is preparing to construct a third manufacturing line, which could increase the total production capacity by 75 % with half its output headed for export.

XMSolar in Somerset NJ, a subsidiary of an Italian manufacturer that invested $145 million in the facility, opened its plant in December 2010 producing 65 MW and plans to expand to 100 MW in 2011.

A new U.S. solar employment report about to be released by The Solar Foundation shows real net growth in U.S. jobs in the solar industry.    

Yet, the bad press surrounding Evergreen Solar and Solyndra recent bankruptcies is distorting the status of the U.S solar industry and by default, all the green industries.

Evergreen’s demise was no surprise. Bloomberg News reported, “Since 2010, Evergreen has been the worst-performing company on the Bloomberg Global Leaders Solar Index. Solar-energy equipment makers are being hurt by excess capacity, the cutback of subsidies in Europe and increased competition from manufacturers in China.”

U.S. manufacturer, Evergreen, announced its intention to close its Devens, MA manufacturing plant in late 2010 and stated, “Evergreen Solar will continue to operate its high temperature filament plant in Midland, Michigan and its wafer facility in Wuhan, China. With approximately 75 megawatts of installed wafer capacity in Wuhan, the Company will continue to supply its outsourcing partner with wafers for conversion into Evergreen Solar branded solar panels.”  But, even these restructuring moves by Evergreen failed to save the company from bankruptcy and its Chinese competitors.

Solyndra’s failure has nothing to do with solar or green industries.  Solyndra’s failure also was not a surprise to many: the company’s costs for production exceeded $3/watt and the product was brittle and had suffered a breakage rate greater than industry standards.   

Again, House Republicans are using this incident to attack the Obama Administration, even though they are also the ones that have consistently pushed through $65 billion+ of loan guarantee authority for the U.S. nuclear energy industry. 

With politicians throwing bricks at each other, the green industries are right in the middle dodging these projectiles. Both political parties have embraced our growth, yet the Solyndra demise is being held up as some symbol. 

The national media has picked up the story and the reporting has fallen short on the facts.

The solar and renewable industries' sales went up during the economic meltdown. Sales and manufacturing capacity are increasing, not as fast as China, but steadily increasing. Component manufacturing, installation and service jobs have also increased dramatically in the United States.

In the meantime, China has become global leader in manufacturing, providing land, tax forgiveness, and huge domestic market subsidies for solar, wind, and virtually every other renewable technology. Domestic markets help countries drive global markets. And that sentiment was echoed by the Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Committee.

 

U.S. Wants to Win Green Energy Race . . . Republicans block progress

WASHINGTON, Sept. 2011 -- The U.S. Department of Energy said its work on clean energy innovation is putting the United States in the lead in the race toward a greener economy.

Deputy Energy Secretary Daniel Poneman said clean energy initiatives backed by the White House under a federal stimulus package are having a positive impact on the U.S. economy and the clean energy race.

"We are in a race to capitalize on the huge economic and job growth potential of the clean energy economy," he said in a statement. "Other countries like China are already moving aggressively to develop and deploy these technologies but with continued investments in innovation, this is a race we can win."

The White House is under fire from House Republicans over the bankruptcy of solar panel company Solyndra, which received a $535 million loan guarantee from the Energy Department. Critics said the White House was too aggressive in the plan but President Barack Obama's administration counters that aggressiveness is what's needed for a green economy.

As an economic powerhouse, Beijing is moving to include more renewable energy on the national grid. The country set a goal of increasing its solar power capacity significantly in the next five years.

Beijing's European rivals have started cutting back on solar power subsidies, meaning
 China is set to become a world leader in solar panel purchases.