US government-owned financial entity Overseas Private Investment Corp (OPIC) plans to invest up to USD 820 million (about Rs 3,600 crore) in the fast- growing Indian renewable energy sector by the end of 2011.

As part of efforts to boost clean energy initiatives, OPIC will make investments to the tune of USD 520 million in India’s renewable energy sector, including the solar segment, OPIC President and CEO Elizabeth Littlefield said today.

Further, it would also make private equity investments worth USD 300 million, especially in small solar companies.

These investments, totalling USD 820 million, would be made by the end of this year, Littlefield said.

She was speaking at a roundtable organised by the US-India Business Council (USIBC) on supporting India’s infrastructure sector.

The session also saw the participation of senior US government officials as well as Indian and American business executives.

Meanwhile, the US Trade and Development Agency (USTDA) will extend over USD 1.4 million for two projects in India’s energy sector.

The agency will provide USD 719,985 as a feasibility study grant to Astonfield Renewables Private Ltd for deploying two solar photovoltaic power projects having a total capacity of 15 MW.

These funds would be utilised for setting up a 5-MW plant at Bankura, in West Bengal, and a 10-MW project at Belgaum, in Karnataka.

USTDA Director Leocadia I Zac said the agency would also extend a USD 686,447 grant to North Delhi Power Ltd (NDPL) for implementation of smart grid technology.

The agency today inked pacts with Astonfield and NDPL for these proposed investments.

An amendment to bring proposed 2012 funding for ARPA-E, the blue-sky research arm of the Department of Energy, up to the current year level of $180 million passed the House today by a vote of 214-213. That level is far lower than the $550 million that the Obama Administration requested. But it does suggest that the likely worst-case scenario for the agency is a flat budget next year, as the Democratic-controlled Senate, which takes up the legislation next, generally supports increases for energy research. The amendment added $80 million to the $100 million approved by the House appropriations panel.

Meanwhile, a number of amendments in the House of Representatives sought to cut the renewable energy and energy efficiency research program at the Department of Energy, but they all failed. So, too, did a number of proposals to boost research into renewables or fossil fuel energy. An amendment to add $10 million to the solar energy research program passed, however, by a close vote of 212-210. The appropriations committee draft that came to the floor had called for $163 million for solar research, which if passed into law would mean a $97 million cut below the current year level. (The Administration has requested $433 million for solar energy research in 2011.) One hundred seventy-nine Democrats and 33 Republicans supported the amendment to set the level at $173 million.

“There is a small majority in the House that continues to support these programs,” said Nathan Facey, deputy chief of staff to Representative Marcy Kaptur (D-OH), who sponsored the solar energy amendment. Facey acknowledged that the increase wasn’t going to bring the House plan for the program up to the level of the current year but called it a significant “vote of confidence in the program.”

The Renewable Energy Policy Network for the 21st Century has just released their annual Renewables 2011 Global Status Report. I was one of the reviewers of the draft report, and therefore got to read and comment on it prior to publication. The report provides a comprehensive overview of global renewable energy sectors, breaking different categories down by total installed capacity and capacity added in 2010. It also ranks the global leaders for many categories.

Renewable energy grew strongly in 2010, as the total global investment in renewable energy reached $211 billion, up 32% from the $160 billion invested in 2009. Globally, the capacity of various renewable energy categories at the end of 2010 was:

Solar PV – 40 GW
Wind – 198 GW
Geothermal – 11 GW
Hydropower – 1010 GW
Biomass power and heat – 62 GW
Solar hot water/heating – 185 GWth
The U.S. leads global capacity for geothermal and biomass heat and power, China leads on hydropower, wind power, and solar hot water, and Germany leads in solar PV capacity. Globally, solar PV capacity has increased by a factor of seven in five years.

Some of the other highlights of the report, from the press release accompanying the report’s release:

Renewable capacity now comprises about a quarter of total global power-generating capacity and supplies close to 20% of global electricity, with most of this provided by hydropower.
Developing countries (collectively) have more than half of global renewable energy power.
Solar PV capacity was added in more than 100 countries.
The top five countries for non-hydro renewable power capacity were the United States, China, Germany, Spain, and India.
In the United States, renewables accounted for about 10.9% of U.S. domestic primary energy production (compared with nuclear’s 11.3%), an increase of 5.6% over 2009.
In the United States, 30 states (plus Washington, D.C.) have Renewable Portfolio Standards (RPS).
China led the world in the installation of wind turbines and solar thermal systems and was the top hydropower producer in 2010. The country added an estimated 29 GW of grid-connected renewable capacity, for a total of 252 GW, an increase of 13% compared with 2009.
Renewables accounted for about 26% of China’s total installed electric capacity in 2010, 18% of generation, and more than 9% of final energy supply.
Brazil produces virtually all of the world’s sugar-derived ethanol, and has been adding new hydropower, biomass and wind power plants, as well as solar heating systems.
In the European Union, renewables represented an estimated 41% of newly installed electric capacity. While this share was significantly lower than the more than 60% of new capacity in 2009, more renewable power capacity was added in Europe than ever before.
The EU exceeded all its 2010 targets for wind, solar PV, concentrating solar thermal power, and heating/heat pumps. Countries including Finland, Germany, Spain, and Taiwan raised their targets, and South Africa, Guatemala, and India, among others, introduced new ones.
Developing countries, which now represent more than half of all countries with policy targets and half of all countries with renewable support policies, are playing an increasingly important role in advancing renewable energy.

A cutting edge wave energy device which has been built in Fife will be unveiled later.

Aquamarine Power will show off the new Oyster machine at Burntisland Fabrications (BiFab) yard in Methil where its 800kW flap has been built.

The device is said to be able to generate more than twice as much power as existing machines.

First Minister Alex Salmond will be shown the Oyster before it is taken by barge to Orkney where it will operate.

The machine, which is delivering 250% more power than its first version, incorporates design improvements, which will make it simpler to install and easier to maintain.

Mr Salmond will be joined at the unveiling by BiFab managing director John Robertson and Aquamarine Power chief executive officer Martin McAdam.

A Scottish government spokesman said: “This is an exciting time for Scotland’s world-leading marine energy industry and today is another key moment in the journey to the commercial deployment of wave and tidal energy arrays that can harness the massive natural resources around our coast.”

Global clean and renewable energy investment grow 32% reaching US$112 billion 2010, according to the UN Environment Programme (UNEP).
By Renewable Energy Focus staff

Investment in large-scale renewable energy was led by China and developing economies as those countries overtake the ‘developed’ world in terms of financial new investment at the utility-scale.

Developing countries invested US$72bn whereas the developed world invested ‘only’ US$70bn, according to the report Global Trends in Renewable Energy Investment 2011 by Bloomberg New Energy Finance, commissioned by UNEP.

Developing economies:
China: US$48.9bn, +28%
South and Central America: US13.1bn, +39%
Middle East and Africa: US$5bn, +104%
India: US$3.8bn, +25%
Asian developing countries (excl. China and India): US$4bn, +31%

Government renewable energy research and development investment reached US$5bn, increasing over 120%.

Europe saved by small-scale installations
Europe, however, saw a 22% decline to US$35.2bn in new financial investment in large-scale renewable energy in 2010. Small scale projects on the other hand, saw a surge – especially in rooftop solar photovoltaics (PV).

Small, distributed renewable energy capacity:
Germany: US$34bn, +132%
Italy: US$5.5bn, +59%
France: US$2.7bn, +150%
Czech Republic: US$2.3bn, +163%

Part of the reason for the surge in small-scale installations, is the 60% drop in solar PV module prices from mid-2008.

European feed-in tariff cuts
European figures were also hit by the cuts in feed-in tariffs announced towards the end of 2010.

Spain and the Czech Republic moved to make retroactive cuts in feed-in tariff levels for already operating projects at the end of 2010, which caused damage to renewable energy investors’ confidence.

Germany and Italy also announced cuts, but only for new projects.

Despite cuts, the solar PV market is expected to remain strong in 2011.

By technology
Over the last two years, the prices for wind turbines have fallen 18% per MW, UNEP says. Wind saw investments of US%94.7bn, up 30% over 2009. In comparison, solar including small-scale reached US$86bn (+52%), biomass and waste-to-energy US$11bn, whereas biofuels dropped from its US$20.4bn high in 2006, to just US$5.5bn.

The biggest jumps in overall investment were in small-scale renewable energy projects, which reached US$60bn, up 91%; and government-funded research and development, which rose 121% to US$5.3bn.

Corporate research and development into renewable energy, however, fell 12% to US$3.3bn and provisions of expansion capital for renewable energy companies by private equity funds were down 1% to US$3.1bn.

Falling share prices
Clean energy share prices fell within the WilderHill New Energy Global Innovation Index (NEX) by 14.6% – underperforming wider stock market indices by more than 20%.

Furthermore, acquisition activity fell from US$66bn in 2009 to US$58bn. The two largest categories of merger and acquisition activity – corporate takeovers and acquisitions of wind farms and other asset – fell around 10%

Ecotricity has completed its 1 MW Sun Park solar photovoltaic (PV) installation at Fen Farm, Lincolnshire, UK.

By Renewable Energy Focus staff

The solar PV park has been erected at the same site as a 16 MW wind farm consisting of 20 wind turbines has been operating since 2008.

In connection with the opening Ecotricity Founder Dale Vince says the company had planned several large-scale solar installations that could have gone live in 2011, but that with the UK Government’s U-turn on feed-in tariffs, those plans have now been scrapped.

“If this is the ‘Greenest Government’ ever, why are they strangling our solar industry at birth? With a big question mark right now over nuclear power, and huge climate change targets to hit, this is a crazy step to make, especially in the name of saving money.

“Indigenous sources of energy will save British taxpayers enormous sums of money in the coming decades – just last week energy prices rose by 10%, that’s £50 per year per household – contrast that with the measly £5 per year this Government are willing to see spent on building our own energy sources. If anything defines a false economy it’s this.”

According to the most recent issue of the “Monthly Energy Review” by the US Energy Information Administration (EIA), renewable energy has passed a milestone as domestic production is now greater than that of nuclear power and is closing in on oil.

During the first quarter of 2011, renewable energy sources (biomass/biofuels, geothermal, solar, water, wind) provided 2.245 quadrillion Btus of energy or 11.73% of US energy production. More significantly, energy production from renewable energy sources in 2011 was 5.65% more than that from nuclear power, which provided 2.125 quadrillion Btus and has remained largely unchanged in recent years. Energy from renewable sources is now 77.15% of that from domestic crude oil production, with the gap closing rapidly.

Looking at all energy sectors (e.g., electricity, transportation, thermal), production of renewable energy, including hydropower, has increased by 15.07% compared to the first quarter of 2010, and by 25.07% when compared to the first quarter of 2009. Among the renewable energy sources, biomass/biofuels accounted for 48.06%, hydropower for 35.41%, wind for 12.87%, geothermal for 2.45%, and solar for 1.16%.

Looking at just the electricity sector, according to the latest issue of EIA’s “Electric Power Monthly,” for the first quarter of 2011, renewable energy sources (biomass, geothermal, solar, water, wind) accounted for 12.94% of net US electrical generation – up from 10.31% during the same period in 2010. Non-hydro renewables accounted for 4.74% of net US electrical generation.

In terms of actual production, renewable electrical output increased by 25.82% in the first three months of 2011 compared to the first quarter of 2010. Solar-generated electricity increased by 104.8%, wind-generated electricity rose by 40.3%, hydropower output expanded by 28.7%, and geothermal electrical generation rose by 5.8%. Only electricity from biomass sources dropped – by 4.8%. By comparison, natural gas electrical output rose by 1.8% and nuclear-generated electricity increased by only 0.4% while coal-generated electricity dropped by 5.7%.

Google has published an analysis of the economic benefits of renewable energy innovation. It has concluded that even a five year lapse without a national clean energy policy would cost the United States an aggregate US$2.3-3.2 trillion in unrealized GDP gains and 1.2-1.4 million net jobs.

The most favorable outcomes occurred when innovation was paired with government intervention such as clean energy mandates or a carbon tax. The study also noted that innovation alone would not be enough to sufficiently curtail carbon emissions.

Google processed the data using McKinsey and Company’s US Low Carbon Economics Tool. Google’s researchers ran through multiple scenarios ranging from “business as usual” to what would likely happen if major break throughs occurred in energy storage, clean power, and transportation.

“Based on our modeling, we estimate that by 2030, innovation in the modeled technologies alone could have a transformative impact on the US, adding over $155 billion per year in GDP and 1.1 million net jobs, while reducing household energy costs by $942 per year, oil consumption by 1.1 billion barrels per year, and GHG emissions by 13% relative to BAU. By 2050, annual gains in GDP increase to $600 billion, net additional jobs to 3.9 million, and emissions reductions to 55%,” the study says.

Google concluded that the first renewable energy sources that become more economical than fossil fuels will win the future. General Electric recently claimed that solar power was on target toward meeting that criteria.

An “innovation arms race” between competing technologies would generate healthy competition in the marketplace that’s ultimately beneficial to consumers, Google’s study said. It has been upping the ante by fiercely promoting clean energy technologies over the past two years, investing nearly $1 billion to incubate wind and solar power projects.

Google’s study is not an outlier: renewable energy means jobs, a more prosperous future – and is not a drain on the economy despite politically charged rhetoric to the contrary. One of the largest private corporations in the United States has just given further credence to the claim that inaction is harmful to society.