Monthly Archives: April 2012

U.S. tariffs on Chinese solar cells fuel debate about green jobs

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A simmering trade dispute is highlighting a debate about the kinds of jobs America can sustain in a greening economy.

The Obama administration’s recent decision to slap import tariffs on Chinese solar cells was hailed by some domestic solar manufacturers as a victory for energy job creation, leveling the field while also sending a powerful message to Beijing about monopolistic behavior in crucial industries.

But a close look at the U.S. solar industry suggests that the tariffs may actually be a job killer because the vast majority of positions in the sector aren’t on the assembly line. Instead, upward of 70% of U.S. solar employment is in installation, sales and distribution — and companies that hire those workers argue solar cells must get significantly cheaper to remain competitive with other energy sources.

“What China is doing to boost its manufacturers is unfair, but tariffs could actually reduce solar jobs,” said Gordon Johnson, a green tech analyst at Axiom Capital Management. “The price of solar panels goes up and looks unaffordable compared to alternatives.”

Although the U.S. pioneered photovoltaic solar cells decades ago, it has fallen increasingly behind lower-cost manufacturers of the technology, including China, South Korea and Malaysia. But the U.S. is among the world’s fastest-growing solar consumers, opening vast opportunities for service-sector jobs in the sunlight-extraction business.

The matter comes to a head next month, when the Commerce Department will announce a determination on a possible second round of tariffs on Chinese-made silicon-based photovoltaic cells, which convert sunlight into electricity and are by far the most popular solar technology.

While tariff advocates say that protecting a solar manufacturing base is crucial to the nation’s energy security, others argue the U.S. has already lost that footrace. Instead of swooping in to rescue remaining plants, they say, the focus should be on reducing the cost of solar to speed liberation from fossil fuels, which dovetails with the goal of reducing unemployment.

“Installation is where all the jobs are,” said John Smirnow, vice president of trade and competitiveness at the Solar Energy Industry Assn. “There are 5,600 companies in the healthy, vibrant and growing solar-services sector.”

The Commerce Department’s May 17 ruling, in response to allegations of dumping by the U.S. unit of a German solar panel maker, could fundamentally alter the solar landscape in the U.S. Dumping is when a company or industry sells its products below cost to capture the market. If additional tariffs are applied, they will probably be much higher than the relatively light first round announced in March, which ran from 2.6% to 4.7%.

The smaller tariffs — designed to balance out Chinese subsidies of its solar factories — could squeeze margins for installers, but most experts agree they aren’t enough to radically reduce consumption. Anti-dumping duties, however, could run above 20%, dramatically increasing the cost of switching to solar.

Cost is a key factor in getting businesses and homeowners to convert to solar power. A typical residential roof setup costs about $25,000, which federal, state and local rebates and tax incentives can cut to about $13,000 in the city of Los Angeles. At that price, it still could take about a dozen years for the systems to pay back the upfront costs through lower electricity bills.

Source: http://articles.latimes.com/2012/apr/23/business/la-fi-solar-jobs-20120423

Cameron Urges ‘Financially Sustainanable’ Clean Energy

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U.K. Prime Minister David Cameron said wind and solar companies must focus on cutting costs and developing the most suitable sites to make their technology palatable to the public.

He also said clean energy projects have drawn 4.7 billion pounds ($7.6 billion) of investment into the U.K. in the last year, supporting 15,000 energy jobs. The government announced a series of new contracts worth 350 million pounds led by one granted by the utility EON.

“Our commitment and investment in renewable energy has helped to make renewable energy possible,” Cameron told energy ministers from 23 nations today in London. “Now we have a different challenge. We need to make it financially sustainable.”

The comments were aimed at highlighting the benefits of Cameron’s ambition to make his government the “greenest ever”after the U.K. economy tipped into its first double-dip recession since the 1970s. Ministers have scaled back subsidies for solar power after a surge in installations threatened to drive up electricity costs.

“The government seems to forget it needs to be affordable for consumers who are the ones left picking up the bill,” said Richard Lloyd, executive director for the Which? organization that publishes consumer advice magazines. “People tell us that soaring fuel bills are their No. 1 financial concern.”

Ministers Meeting

Delegates at the Clean Energy Ministerial meeting hosted by Britain represent nations that account for 80 percent of greenhouse-gas emissions and 90 percent of global clean-energy investment. They’re working on policies that boosts renewable.

Britain’s economy shrank 0.2 percent in the first quarter after a 0.3 percent contraction in the final three months of last year, defying analysts’ predictions that growth had resumed following the recession in 2008 and 2009.

Cameron’s government has supported investment in offshore wind capacity while curtailing subsidies for solar power plants after incentives led to a boom in installations. Today, the prime minister will stress that renewable-energy sources are needed to drive the economy and that the power they provide must be affordable.

“There are huge challenges facing governments across the world today, and one of the most important of all is how we meet our growing energy demands,” Cameron said, according to a text released by his office today. “We urgently need a more diverse, cleaner mix of energy sources that will give us security without causing irreparable damage to the planet.”

Offshore Wind

Britain is leading the world in deploying offshore wind turbines, and a third of the most favorable sites in Europe are in its waters. It’s also encouraging wider use of biomass, geothermal and heat-pump technology.

EON, JDR Cable Systems Holdings Ltd. and Helius Energy Plc (HEGY)are among the companies announcing more investments in U.K. renewable-energy projects alongside the ministerial meeting, according to a statement from the Department of Energy and Climate Change.

The government said more than 20 companies are joining an entity called Norstec that’s aiming to develop the renewable infrastructure around the North Sea. Early supporters include Scottish Power Ltd., Dong Energy A/S, Mainstream Renewable Power Ltd., Statoil ASA (STL), Statkraft AS, Siemens AG (SIE), Gamesa Corp. Tecnologica SA (GAM), Alstom SA (ALO), Areva SA (AREVA) and David Brown Gear Systems Ltd., according to the prime minister’s office.

Source: http://www.bloomberg.com/news/2012-04-25/cameron-sees-clean-energy-supporting-15-000-jobs-in-u-k-.html

Eni and Rosneft to agree on Russian oil and gas – sources

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Italy‘s Eni and Rosneft are expected on Wednesday to sign an agreement to jointly tap Russian offshore oil and gas deposits in the Arctic and Black Sea, industry sources told Reuters.

The agreement is modeled on the multi-billion-dollar deal between Rosneft and ExxonMobil, finalised last week, to tap Russia‘s offshore energy riches and team up on joint projects abroad.

“The deal will be similar to that between Rosneft and Exxon,” one of the sources said.

The sources said that Eni will obtain 30 percent in a planned joint venture with Rosneft which will develop offshore oil and gas in the Barents Sea near Russia’s maritime border with Norway, as well as deposits in the Black Sea.

Eni will cover initial exploration costs, according to the sources. “Rosneft will get a possibility to enter Eni’s international projects,” a source said.

Source: http://uk.reuters.com/article/2012/04/25/rosneft-eni-idUKL6E8FP0YG20120425

The UK’s renewable energy sector is major job creator, says new report

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A new report has for the first time quantified the UK’s renewable energy sector, underlining its importance as a job creator and revenue generator.

The report from The Renewable Energy Association (REA) and Innovas, a major player in the low carbon economy field, shows the UK’s £12.5 billion-worth renewable energy industry supports 110,000 jobs across supply chains, and is likely to support 400,000 energy jobs by 2020.

REA chief executive Gaynor Hartnell said, “Harnessing our renewables creates employment and means that rather than spending money on energy imports we can keep it circulating in the UK economy.”

Hartnell urged the government to initiate necessary measures for developing the UK’s skills base and to keep the country tuned to achieve its renewable energy goals as this would go a long way in ensuring employment and sustaining economic growth.

The unveiling of the report, entitled, ‘Renewable Energy: Made in Britain’, coincides with the opening today of the Clean Energy Ministerial Summit.

The sector’s overall rise in market value was 11% year-on-year in 2010-11, far outpacing economic growth of 1.4% for the same 12-month period.

It report points out that if the UK meets its renewable energy targets, the use of fossil fuels would be reduced by an average of £60 billion by 2020, giving a much-needed boost to the UK’s balance of trade.

Minister of State for Climate Change Gregory Barker said the industry has the potential of generating substantial investments as well as innumerable jobs, and lauded the REA for launching the report that clearly outlines the opportunities and challenges in the field.

Barker added, “Renewable energy provides us with clean and secure energy that cuts our reliance on imported fossil fuels.”

Source: http://www.egovmonitor.com/node/49449

Wind power: new poll finds 66% of UK public in favour

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Two-thirds of the UK public are in favour of wind power according to a new poll, published on the same day as a national anti-wind campaign launches in parliament.

Overall, 66% of Britons were in favour and just 8% against when asked: “to what extent are you in favour of or opposed to the use of wind power in the UK” in the Ipsos Mori poll, commissioned by wind trade body RenewableUK.

The figures show a slightly higher enthusiasm for wind power than a Guardian poll in March, which revealed 60% of people were in favour of wind. The discrepancy could be partly explained by the framing of the questions, with the Guardian research asking if people were in favour of windfarms near their homes.

Maria McCaffery, chief executive of RenewableUK, said: “It’s clear that the majority of those surveyed are supportive of energy from wind – strongly indicated from our survey results. Wind is an abundant, clean, secure and affordable energy source. It is therefore not only undemocratic to allow the vocal anti-wind minority to derail the UK’s plans for renewable energy, but also damaging to our economy, undermining investment and energy  jobs that will help to rebuild communities across the country and put the UK on a path to future economic prosperity.”

25,000 jobs to be created by Sizewell C power plant

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If EDF Energy is given the go-ahead to build two reactors at Sizewell C, it could generate 25,000 energy jobs over the whole lifetime of the project. During the seven or eight-year construction phase, bosses are expecting a maximum of 5,600 workers to be on site at any one time, with 900 permanent jobs created once the power station is complete.

It is estimated the project will be worth £100m a year to the local economy while it is being built and £40m a year thereafter. Although the project is in its early stages, EDF Energy says it wants local people to form a key part of the workforce and that it will work with education leaders and employers to raise awareness of potential opportunities.

This includes training and apprenticeships for young people, and liaising closely with schools and colleges. The company will also link up with Suffolk Chamber of Commerce to ensure local businesses have a good opportunity to be involved in the new nuclear supply chain.

Read the full story at Evening News 24

Up to 1,000 offshore energy jobs on the way: UK

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Tyneside-based OGN North Sea said it was to create up to 1,000 energy  jobs thanks to a £640,000 grant from the Department of Energy and Climate Change to build  foundations for offshore wind farms.

The cash comes from a £5m fund set up by the Government to help firms with novel ideas to reduce the cost of offshore wind energy.

The foundation structures have been developed by the firm’s sister company Aquind Limited and will be designed for large wind turbine generators in waters more than 30 metres (100ft) deep.

Last night, Nick Brown, a former Labour Minister for the North-East, who is the MP for Newcastle East, said: “I welcome this announcement, which is exciting news.

“It is a real project creating real jobs, which will mean work for the north banks of the Tyne.

“There are a whole series of green energy projects in the North-East which are a great new part of the North-East’s employment mix.”

Simon Bowens, of Friends of the Earth, said: “This is a great boost for Tyneside and highlights the huge benefits of developing  energy careers and  a low-carbon economy in the North-East.

“Combining the massive potential of clean British energy with the region’s engineering skills and expertise is exactly what’s needed to build our future prosperity. “ OGN, which already employs  about 1,000 workers in Wallsend, Tyneside, and Lowestoft, Suffolk, said Government support was vital to the project. Its chief executive David Edwards said: “The offshore wind energy market is  crucial to Britain’s future energy needs and we will do our utmost to ensure that this grant takes the UK into an even stronger role as the lead player in this sector.”

Energy and Climate Change Minister Greg Barker said: “The coalition Government is determined to drive ambitious green growth and we are putting our money where our mouth is.

“Making wind turbines more efficient is common sense and will help bring down the costs, making them more attractive to build and helping us increase the amount of electricity we get from clean,  green sources.

“It’s great to see OGN North Sea Ltd stepping up to the challenge to ensure offshore wind energy is produced in the most cost-effective way.”

This week Aberdeen-based Technip Offshore Wind said it would create 60 jobs by opening an office in the region in anticipation of an expected boom in wind farm projects off the North-East coast.

Source: http://www.thenorthernecho.co.uk/news/9649061.Up_to_1_000_offshore_energy_jobs_on_the_way/