Transmitting Canadian Hydroelectric Power to the USA via Submarine Cable

Such an interesting article with big picture thinking we all need. This article incorporates elements of interprovincial transmission concepts and Canadian energy exports throughout the US. Very timely and interesting read.

Transmitting Canadian Hydroelectric Power to the USA via Submarine Cable

Harry Valentine, Commentator/Energy Researcher

Canada has for decades, exported hydroelectric power from Quebec and from Labrador into markets in the northeastern USA. California has periodically imported hydroelectric power from British Columbia. A power transmission company based in Vancouver has proposed to install a submarine power cable along America's Pacific coast to carry electric power from British Columbia to California. A transmission development company in Toronto is formulating plans to install a submarine power cable under waterways that link Montreal and New York City, for the purpose of carrying hydroelectric power to that city from dams at James Bay.
A recent announcement from Newfoundland in Eastern Canada involved plans to carry hydroelectric power from Labrador to Northeastern American markets via submarine power cables installed under 2 straits along Canada's Atlantic coast. The province of Manitoba that has much undeveloped hydroelectric generating capacity along the Nelson River and Churchill River, has indicated the interest in exporting some of that power into Midwestern American markets at some time in the future. It may be possible to carry that power via submarine power cable installed under northern riverbeds, Lake Winnipeg and the Red River, with potential to extend the cable through the riverbeds of tributaries and over a short distance across land into the headwaters of the Mississippi River.
Submarine power cables installed in the riverbed of the Mississippi River could connect to similar cables that carry power to cities such as Minneapolis-St Paul, Chicago, St Louis and Kansas City. However, Manitoba Hydro may only have enough undeveloped generating capacity (some 10,000MW) to meet up to 40% of future Midwestern American power requirements that may increase by up to 25,000MW by 2030. Midwestern American power providers may consider obtaining competitively priced Canadian hydroelectric power from Hydro Quebec, via one of 2 direct routes. A third indirect route would see a submarine cable across southern Hudson Bay linking the power dams of Hydro Quebec and Manitoba Hydro.
Montreal-Chicago link:
The is potential to install a submarine cable along the south side of the St. Lawrence River, between the navigation channel and the riverbank from Montreal to Lake Ontario. There is a canal along the south side of the Moses-Saunders power dam near Massena NY that may provide the submarine cable with a route around the power dam and the navigation locks. The cable may follow the south shore of Lake Ontario to any of several streams located to the west of Rochester NY, that have origins near the barge canal that connects Tonawanda NY to Syracuse NY.
That barge canal connects to the channel that carries water from Lake Erie to Niagara Falls and may carry a submarine into the south side of Lake Erie, where it may reach Toledo and Maumee River. The Maumee River connects into the Wabash River that has a tributary with headwaters located near the headwaters of a tributary of a river system that carries water to Chicago. The capacity of the submarine cable may provide potential to serve other possible power markets at Erie, Cleveland and Toledo.
While a submarine cable is possible between Montreal and Chicago, it needs to be a reserve option to a shorter and more direct route between the power dams of Quebec and Chicago. Mutually cordial and cooperate intergovernmental relations between New York State, Ohio, Indiana and Illinois would make such the optional southern route possible. Canadian politics will ultimately determine the route of the submarine power cable between Quebec and Chicago.
Direct James Bay -- Chicago Link:
A direct link between the hydroelectric power dams near James Bay and Chicago would cross over Ontario. It may involve submarine cables installed along the eastern shore of James Bay and in the riverbed of the Moose River and tributary the Missinaibi River that has headwaters near rivers such as the Magpie and the Whitefish that flow into Lake Superior. The cable would continue along the eastern shore of Lake Superior and under the navigation channel to the northern coast of northwestern Michigan.
There are several streams in northwestern Michigan with headwaters in close proximity that flow to Lake Superior and to Lake Michigan. Depending on the nature of intergovernmental relations between Illinois and Michigan, it may be possible to install submarine cables in such riverbeds. A submarine cable buried under riverbeds across northwestern Michigan may be extended south along western Lake Michigan to Milwaukee and Chicago. The overall distance between the power dams of Quebec and Chicago would match the distance between the power dams and New York City and be 1/3^rd shorter than the link via Montreal.
Canadian Negotiations:
A direct connection between the Quebec power dams and Chicago would depend on future negotiations between Quebec and Ontario. Ontario wanted to purchase hydroelectric power from Labrador via a power line across Quebec, except that political differences between the governments of Quebec and Newfoundland precluded such an arrangement. A submarine cable under the Lower St. Lawrence River may be possible, given that that river is under joint jurisdiction of the both the Federal Government of Canada and the Government of Quebec.
Ontario may be agreeable to an American-owned submarine power cable connecting between Lake Superior and James Bay through rivers that flow across northern Ontario. James Bay is under Federal Canadian jurisdiction and there would be opportunity to negotiate to install a submarine cable under the seabed near the eastern shore of James Bay, to the a point where Hydro Quebec would provide a connection to their hydroelectric power dams. Quebec's willingness to allow Ontario to acquire hydroelectric power from Labrador would likely enhance prospects for a shorter link between Quebec's power dams and Midwestern American markets.
Lower St. Lawrence River Cable:
High-ranking officials of the Federal Government of Canada have indicated their interest in developing an east-west power connection across Canada. In this regard they may advocate and facilitate the installation of a submarine power cable from Labrador at the Strait of Belle Isle and upstream along the Lower St. Lawrence River to either the Upper St. Lawrence River or the Ottawa River. It is possible that influential political forces in Quebec may allow for a submarine cable to follow the bed of a river that flows from Labrador through Quebec into the Gulf of St. Lawrence.
Modern drilling technology allows for the drilling of circular conduits under the control dams along the river system, to allow submarine power cables to be "threaded" through the conduits. The submarine power cable may be routed to the Canadian side of the Moses-Saunders international power dam, from where it would connect to an upgraded overland power transmission line to carry electric power to Toronto. The submarine power cable may follow an alternate route up the Ottawa River (also under Federal Canadian jurisdiction) from Montreal to Ottawa, from where a high-density power line that is due for upgrading connects through to Toronto.
Political Opposition:
There is the likelihood of influential political forces using the judicial system to prevent the installation of a submarine power cable along the Lower St. Lawrence River that may carry electric power from Labrador to Ontario. Such action would undermine the credibility and authority of the Federal Government of Canada and serve the interest of secessionist political elements in eastern and western Canada. It would also leave Quebec with the option of a submarine cable carrying electric power from Montreal to Midwestern American markets using a longer southern route.
Ontario would be left with the option of purchasing Canadian hydroelectric power from Labrador via buried power cables installed along rail and roadbeds across the northeastern USA, to the Moses-Saunders power dam. However, the successful installation of a submarine power cable under the St. Lawrence River, between the Gulf of St. Lawrence to either the Moses-Saunders power dam or to Ottawa, would affirm credibility of the Federal Government of Canada. It would also provide Ontario with access to a source of competitively priced, renewable electric power from another region of Canada.
Conclusions:
Labrador (Newfoundland) and Quebec are literally competing against each other in the export of hydroelectric power into northeastern American markets. Such competitive rivalry has undermined cordial intergovernmental relations in Eastern Canada. Ontario could offer an option for Quebec to export hydroelectric power to Midwestern American via a short route, provided Quebec allows Ontario to receive hydroelectric power from Labrador via the St. Lawrence River. Such an arrangement would maximize hydroelectric power generation in both Labrador and Quebec, giving American markets the option of competitively priced renewable electric power.

U.S. wind power drops off despite falling prices

What I find most interesting about this article is 1) how low some of the rates are in the US for wind power - 5-6 cents/kwh 2) that China has 41,800MW of installed wind capacity.

The American Wind Energy Association reported a substantial fall in U.S. wind power installations in 2010, saying some project developers held off from investing because of uncertain federal policies.

The trade association said that 5,115 megawatts of wind power capacity were put online last year, compared to 10,000 megawatts of capacity in 2009. The 2010 number also falls below annual installations for 2008 and 2007, according to AWEA data. (Click for PDF of report.)

At the same time, AWEA reported that the price for electricity from wind has fallen. Recent power purchase agreements to buy energy from wind farms have been in the range of 5 cents to 6 cents per kilowatt-hour, AWEA director of industry data and analysis Elizabeth Salerno said in a statement. That price, which includes the tax credit project developers receive, puts it below the price of electricity generated by natural gas in some parts of the country, according to AWEA.

Energy project developers receive a 30 percent tax credit for investing in wind farms, but the existing credit was set to expire at the end of 2010. The uncertainty over whether that investment tax credit would be renewed caused "a dampening effect on investment all the way around," said Peter Kelley, the vice president of public affairs at AWEA.

The lame duck Congress in mid-December passed an extension to the tax credit until the end of 2011. With that in place, AWEA says that utilities are locking in today's rates to purchase wind power, with 5,600 megawatts now under construction.

With the direction on national wind policy unclear, state-level policies, such as utility mandates for renewable energy, are becoming more important. Texas is by far the biggest wind power state, with 10,085 megawatts of capacity installed compared to 3,675 megawatts for Iowa and 3,177 megawatts in California.

The total U.S. wind capacity is now 40,180 megawatts, which is 15 percent higher than the start of 2010. Last year, China surpassed the U.S. for the most installed capacity which grew an estimated 62 percent last year to 41,800 megawatts.

Read more: http://news.cnet.com/8301-11128_3-20029343-54.html#ixzz1C1M3ZPCI

U.S. wind power drops off despite falling prices | Green Tech - CNET News

Montreal - Curb power use during cold snap: Hydro-Québec

Hydro-Québec is asking Quebecers to reduce their electricity consumption Monday as it expects the province is about to set a record for power consumption during the current cold spell.
It is worried that Quebecers will continue a pattern of cranking up the heat over the next couple days, and is asking people to reduce consumption especially during its peak hours
So between 6 a.m. and 9 a.m., then 4 p.m. and 8 p.m., the power utility is asking people to avoid using appliances such as dishwashers and washing machines.
Hydro-Québec said it expects usage will hit 38,000 megawatts Monday morning.
That would break a record set back on Jan. 16 2009.
"We're facing a cold snap, and when we have several consecutive days of very cold weather these are ideal conditions for peak demand to reach historic levels in this case," said Hydro-Québec spokeswoman Ariane Connor.
Hydro-Québec is also asking people to turn off any lights that are not essential, such as outdoor lights, and to skimp on hot water, and spend less time in the shower.
The utility said it will cut back on lighting in its offices, and it is asking businesses all over Quebec to do the same thing.


Read more: http://www.cbc.ca/canada/montreal/story/2011/01/24/mtl-hydro-cold-snap.html#ixzz1BxrU1sfY

CBC News - Montreal - Curb power use during cold snap: Hydro-Québec

Too much power? Solution for too much wind energy

There is no question that we often need to give away and export of electricity when demand is low and production is up.  Why not find ways to utilize all of our excess electricity when demand is low?  Doing this through heat storage curtails our fossil fuel consumption, and provides us with lower cost heating options.  Great concept.  Would love to see more test programs developed with the Ontario smart metering roll-out.

January 20, 2011

Possible solution to storing wind power

Column | Korky Koroluk

A simple, low-tech solution to the problem of storing wind power is undergoing testing in three small North American markets — one in Summerside, P.E.I., and two in Maine.

In the process, it is showing how alternative energy is able to offer new jobs for HVAC engineers and contractors.

The solution involves not centralized storage in one large plant, but “distributed” storage involving small ceramic heaters in peoples’ basements. It’s also being installed in a few small commercial buildings.

Critics have often criticized wind or solar energy installations because the wind doesn’t always blow and the sun doesn’t always shine. Intermittent sunshine has been overcome by building concentrating solar plants which, on sunny days, store energy as molten salts that are later used to produce steam turbines. It’s a system that is now being used in several places in the world, most notably Spain and the American Southwest.

Now researchers have come up with ceramic heaters, which are nothing more than extremely dense ceramic blocks in insulated cabinets. The blocks store energy as heat when the wind is blowing, then release it slowly over the next day or two.

The American experiments have been under construction for several months; the Summerside project is just beginning.

Prince Edward Island produces a lot of wind power. The problem is that the wind tends to blow more at night when energy demand is low. Because of this, the province has been selling some of that surplus energy to mainland markets, but at low rates.

But at a recent meeting of Summerside city council, homeowners were asked to buy the ceramic storage systems.

The heaters are expensive, though, at about $2,000 each. They are expected to save money over the long term, but that is often not sufficient to get people to act. That’s why the city is offering users a break on their electricity prices that could amount to about $600 a year. City fathers hope that will lead to at least 100 sales this year.

In Maine, getting people to convert to distributed wind energy is more urgent because oil is used to heat 80 per cent of all homes in the state. That’s why the incentive for switching off oil is somewhat sweeter.

For a start, the Highland Wind project developer, Independence Wind, is offering any participating household a $6,000 “wind for oil” grant. The money is to fund the purchase of one of the ceramic-block units, although it can be used for any renewable energy or efficiency investment.

In return for providing the storage, Highland Wind will supply wind power to residents at a deeply discounted price.

Fuel oil is presently running at about $3 (U.S.) a gallon. The discounted price will be equivalent to about $1.15 per gallon of oil.

The other Maine project involves Vinalhaven Island — an entire island with small communities dotted around it that has committed entirely to wind power. But like P.E.I., it has had to sell some off-hours power or shut down some of its turbines.

The project looks like a winner for the local economy, as well as individual users.

The total project is estimated to cost more than $210 million, most of which will go directly into the state economy through engineering, environmental, construction and related jobs. At peak construction, the project will bring more than 300 jobs to the local region. And every year, the project will pay more than $500,000 in state, local and county taxes.

That’s a lot of benefits for the application of what is really an old idea. There is, after all, nothing new about using ceramic blocks to store heat, and similar heaters are already in use in Britain to even out peak demand on its electricity grid.

But an old idea becomes new again if it means reduced reliance on oil.

Ideas for a rational electricity policy platform

Rod Taylor

We are about 10 months away from the next Ontario provincial election, and electricity policy is likely to be one of the top five ballot issues. What follows is a short list of ideas, available free to any political party, on what should make up an electricity policy platform.

1. Reaffirm the principle that making Ontario’s electricity prices competitive with our neighbours is the overriding objective. This principle has been sadly neglected in the recent “maximum renewables whatever the cost” era of Ontario’s Green Energy Act. The price of electricity should be set in the market, but electricity policy should be guided by a comprehensive, independent regulatory analysis of which of the various generation, transmission and demand management options offer the lowest, long-term life-cycle costs.

This analysis should consider all costs, including environmental, such as the cost of long-term nuclear waste storage, mercury emissions from flooding, greenhouse-gas impacts from backing up intermittent solar and wind generation, etc.

2. Recognize that dispatchability is key to operating a power system. Demand and supply must be instantaneously matched, and this means generators must be dispatched on and off the system. Wind and solar power are intermittent, variable and non-dispatchable. Hydroelectricity is renewable and dispatchable.

There are 2000 megawatts of hydro power waiting to be developed in Ontario’s north. In its 2007 integrated plan, the Ontario Power Authority said this option is the most cost-effective of all renewables, including the cost of transmission incorporation.

3. Overcome Ontario’s delusional obsession with electricity self-sufficiency. It is delusional because two-thirds of our power is made from primary energy sources (uranium, natural gas, coal) sourced outside the province. If Boston can rely on northern Canadian hydro power for a substantial portion of its power, why can't Toronto? Ontario sits between the two lowest-cost power jurisdictions in Canada – Manitoba and Quebec. Once we’ve built out our own untapped and renewable northern hydro power, let’s import more from our neighbours. Ontario has world-beating expertise in transmitting high voltage power through climate and distance; let’s use it.

4. Revise the Clean Energy Act. Dramatically reduce the terms for new purchased power to five years; reduce the size of any single installation; reduce the subsidy offered; restore local planning authorities; make competitive electricity prices an objective of the act.

5. Rationalize Ontario’s power sector. The government has announced its intention to reduce the number of agencies, boards and commissions as part of its austerity program. Recombining parts of the power sector must be done with extreme care. For example, the planning parts of the OPA could be merged with the Independent Electricity System Operator, but if the contracting for long-term supply that the OPA currently does joins the IESO, the “I” (for “independent”) will be lost and the credibility of the Ontario market structure destroyed.

There is, however, room in Ontario’s power sector for significant rationalization and that’s on the distribution wires side. This sector offers major opportunities for economies of scale. Local distribution companies should be encouraged to amalgamate or, at the least, share scalable network services (e.g. billing, metering, forestry, line maintenance) to reduce costs.

6. Do not build social programs on the backs of ratepayers. No future government will be elected on the basis of tax increases; but unlike in other sectors (mining, forestry, chemicals, steel, autos, telecom, gas distribution, etc.), in the electricity sector, the province owns the lion’s share of the assets and can send directives to the regulator.

This tempts every government to build social programs (e.g. employment programs) and charge them to the electricity ratepayer (e.g. creating an Ontario nuclear industry, or an Ontario industrial windmill manufacturing industry). No new taxes should also mean no further plundering of the capital pool made available by raising electricity rates by ministerial direction. The best way to prevent this in future is by taking the assets out of the province’s hands, and relying on a well-funded, independent regulator to protect the consumer without ministerial direction.

By taking these six positions, a political party would have a rational and comprehensible electricity policy to offer voters in the October, 2011, election.

Rod Taylor is former executive vice-president, Hydro One, and was a member of the board of the Ontario Independent Market Operator and sat on Ontario’s Market Design Committee.

http://www.theglobeandmail.com/news/opinions/opinion/ideas-for-a-rational-electricity-policy-platform/article1876455/

Ontario’s new dilemma: Too much power

John SpearsBusiness Reporter
Ontario residents were bemused to discover that on New Year’s Day 2011, on average, they were paid to use electricity.

If that seemed unusual – and it is – it’s only the start.

Within the next two years, the conditions that produced the bonus New Year’s power could crop up about one day in every seven, according to an analysis by the agency that runs Ontario’s power market.

A big reason: about 5,000 megawatts of wind powered generation is due to be connected to the Ontario grid in the next few years, producing surges of power that are more than the province needs.

The power surplus may be a head-scratcher for consumers, who saw blackouts and power shortages only a few years ago.

But energy bureaucrats are now hard at work trying to head off the impending surpluses, which force the province to give away power not just to customers in Ontario, but also to the U.S.

The focus of their efforts is a report prepared by the Independent Electricity System Operator(IESO), which operates the provincial power grid.

The report notes that 5,000 megawatts of wind generation capacity will come on stream by 2013. (This is roughly the amount of power Toronto uses on a hot day.)

That flood of new wind power changes the balance of energy, says the report.

“The IESO would experience surplus conditions roughly 14.5% of the time based on average wind output,” it predicts.

Under normal market conditions that would cause the price to fall to zero or below and some generators would shut down.

But the new wind farms, operating under current contracts that pay the operator 13.5 cents a kilowatt hour, would see all of their power flow onto the grid at the contract price.

Customers shouldn’t start anticipating lower bills. Although the market price might show up as zero, customers are still on the hook for the contractual prices awarded to wind producers. That’s collected through the “provincial benefit” payment that shows up as a separate line on the bills of customers who buy from retailers. Other customers also pay, but it’s buried in their energy charge.

Most generators don’t suffer, despite the zero price. The majority sell their power at prices fixed by the Ontario Energy Board, or contracts through the Ontario Power Authority, all of which are funded through the provincial benefit payments.

There’s one other, counter-intuitive problem with increased wind generation. At the moment, more wind power means more gas-fired power.

Because wind power is variable, it has to be backed up by natural gas-fired generators, kept idling to be switched in if the wind dips.

The reserve generators also have to be paid for, and they boost carbon emissions that wind power is supposed to prevent.

Bruce Campbell, vice president of the IESO, is working on the issues raised by the wind power increase.

Part of the solution: Start treating wind like other generators and shut them out of the system if their power isn’t needed, and call them in when it is.

Energy bureaucrats, who never use a straightforward word when they can invent a technical term, call that “dispatching” power.

At the moment, all wind power automatically flows into the system. Rules may be needed to limit the flow when there’s too much.

“We need to integrate the wind generation,” says Campbell. “We want to be able to dispatch wind just as we do other generation.”

Potentially, that means having to tell a wind farm operator that we only need two-thirds of the power it is likely to produce today or tomorrow.

One of the issues Campbell is now discussing with the power industry is how to do that. If someone gets shut out, who is it to be, and what, if anything, should they get paid?

That’s a crucial question for wind farms, says Robert Hornung, president of the Canadian Wind Energy Association (CanWEA).

Hornung acknowledges that as wind power increases, the rules will change.

“There’s always been a strong desire among system operators to ensure that wind ultimately will be treated like other forms of generation.”

But he says his members have to know what the new rules are if their output is put on hold.

“Is there any compensation? If there is, what formula is that based on? Those details really matter,” he said.

Better weather forecasting is also essential to better wind management, says Campbell. The more lead time the system has to anticipate wind quantities, the better, and the IESO is looking for ways to get precise forecasting.

When wind is going to be strong, it may be a good time for a nuclear plant to schedule some short-term maintenance work, or for water-powered generators to collect water behind dams for use when the wind slackens, he says.

In addition, power users can be invited to take advantage of markets when demand is slack. Some industries can plan a short-term production speed-up if they know there’s going to be lots of power and low prices the next day.

Better forecasting should also decrease the need for keeping back-up generation running, says Campbell.

But the details of who gets to produce, and how much they’ll be paid, when there’s a power surplus, remain to be decided. The IESO is now gathering opinions.

Hornung says CanWEA has yet to make its submission, but will do so.

“It’s a discussion we all need to have.”

Ontario’s new dilemma: Too much power - thestar.com

North Shore Innu set to sign hydro deal

$6.5-billion Romaine project; Letter of intent signed; an agreement possible 'within days,' source says

BY MARIANNE WHITE, POSTMEDIA NEWS JANUARY 20, 2011

A Quebec Innu community is closing in on a deal with Hydro-Quebec that would clear the last legal hurdle for one of the largest infrastructure works in Canada, the $6.5-billion hydroelectric Romaine project.

The Innu of Uashat Mani-Utenam, on Quebec's North Shore, signed a letter of agreement with the utility and the Quebec government earlier this week that is guiding the parties in negotiating an agreement in principle.

A source close to the negotiations said yesterday a deal could be reached "within days."

The source added several meetings in the past weeks eased the relationship between the Innu and the government and that led Quebec Premier Jean Charest to appoint a special negotiator to the file.

"A deal would be good for everyone," the source said, adding the agreement could bring a fallout of "hundreds of million of dollars" for the Innu community.

In a brief statement, the Innu of Uashat stressed they hope to ink a final agreement "by the end of March" with Hydro-Quebec and the province.

Last June, the Innu filed a Quebec Superior Court motion for an injunction to halt construction of four dams along the Romaine River near Sept Iles, about 600 kilo-metres northeast of Quebec City.

The major project is set to produce 1,550 megawatts of power, beginning in 2020.

Hydro-Quebec declined to discuss the negotiations yesterday, but noted its goal is to reach an agreement that will see the Innu benefit from the project during and after the construction.

The province-owned utility has already reached agreements with four other Innu communities impacted by the Romaine project.

EDF's Solar `Time Bomb' Will Tick On After France Pops Bubble

Jan. 19 (Bloomberg) -- France’s solar power boom that’s led to farmers building unneeded barns just to cover them in panels is costing Electricite de France SA more than a billion euros ($1.3 billion) a year as it meets state pledges to pay above- market prices for renewable energy.
French payments for solar-generated electricity sold into the distribution grid were the highest in Europe in 2009, leading to a 10-fold capacity increase in two years. What’s been a boon for panel owners and manufacturers has hit EDF because a tax to cover the higher costs of renewable electricity has fallen short.
“This is a time bomb EDF needs to defuse as soon as possible,” Bertrand Lecourt, an analyst at Deutsche Bank AG, said by telephone from Paris. While “the totally out-of-control phase” could be over, “it’s still something to be watched carefully,” he said.
The cost is siphoning off funds from EDF as it plans to spend 35 billion euros to extend the life of France’s aging nuclear plants. Europe’s largest power producer also aims to invest tens of billions of euros building plants in the U.K., China and Italy. The tax shortfall will widen this year and last until 2017 even as the government moves to cool the solar rush, said Aurel BGC analyst Louis Boujard.
EDF shares have dropped 20 percent over the past year, compared with a 3.7 percent decline in Europe’s Stoxx 600 Utilities Index. The Paris-based company had net debt of $57 billion euros at the end of June, according to a company filing.
Elsewhere in Europe, governments have stepped in to contain spiraling growth in solar generation.
Spanish Limits
The Czech Senate introduced a temporary tax on solar producers in December, and Spain limited the hours during which existing solar parks can earn premium rates. Germany almost doubled the surcharge consumers have to pay in renewable-energy subsidies starting this year.
To end what it has called a “speculative bubble,” France on Dec. 10 imposed a three-month freeze on solar projects to devise rules that could include caps on development and lowering the so-called feed-in tariffs that pay the higher rate for renewable power. The tariffs were cut twice in 2010.
“We just didn’t see it coming,” French lawmaker Francois- Michel Gonnot said of the boom. “What’s in the pipeline this year is unimaginable. Farmers were being told they could put panels on hangars and get rid of their cows.”
Solar Projects
The French cuts haven’t slowed demand for new solar projects. EDF received 3,000 applications a day to connect panels to the grid at the end of last year, compared with about 7,100 connections in all of 2008, according to the government and EDF. France could reach its 2020 target of 5,400 megawatts of solar generating capacity by the end of 2011 if all proposed projects are completed.
France’s energy regulator estimates EDF will pay an average of 546 euros a megawatt-hour for solar power in 2011. That’s almost 10 times estimated spot market power prices of 55 euros, and the highest among renewable energy sources.
The promise of rich returns spurred suburban supermarkets to put photovoltaic panels in parking lots and farmers to install units on empty, purpose-built barns, according to a French parliamentary report.
“Most panels installed in France were made in China with a highly questionable carbon footprint,” Environment Minister Nathalie Kosciusko-Morizet told parliament last month. Policy must “create jobs in France, not subsidize Chinese industry.”
The higher payments for renewable power are supposed to be covered by a levy added to consumers’ electricity bills, which also pays for the supply of power to needy households. For the last two years the CSPE levy, which remained at 4.50 euros a megawatt-hour between 2004 and the end of 2010, failed to keep up with the mounting costs.
Raised Tax
France raised the tax to 7.50 euros a megawatt-hour from Jan. 1, short of the 12.90 euros the regulator estimates is necessary to eliminate the shortfall through the end of 2011.
The new level and further increases in the coming years may allow EDF to reach a “balance” in the system by 2017, Aurel BGC’s Boujard said by telephone.
“EDF shouldn’t have to pay for renewable energy development in France,” Boujard said.
EDF’s shortfall was 1.4 billion euros in 2009, and is estimated to exceed 1 billion euros in 2010, the Commission de Regulation de l’Energie said in a report published this month. With the CSPE set at 7.50 euros a megawatt hour this year, the shortfall will reach an estimated 3 billion euros at the end of 2011 because of the increase in solar capacity, according to data in the report.
The solar component of the tax shortfall will rise to about a billion euros in 2011 compared with 60 million euros in 2009, according to Philippe de Ladoucette, head of the agency.
The development of wind and solar energies is “widening a deficit considerably,” EDF Chief Executive Officer Henri Proglio told Senators Dec. 14. “One can’t ask EDF to be the banker for marginal or local industries,” he said.

Solar energy investing: what's happening in the solar market?

You’ve heard it all before—myriad reasons why you should invest in solar technologies now, while the iron’s hot. If you’re expecting one of those typical news hooks, suspending popular belief, you won’t find it here. You should invest in solar companies, and here is Clean Energy Authority’s rundown of what’s going on in the solar market this week.

Almost every 2011 projection of the solar industry has predicted expansion on the horizon. The industry is looking very healthy, but some companies are actually surpassing expectations.

Worldwide Energy & Manufacturing USA (OTCBB: WEMU), a San Francisco-based photovoltaic-module provider, recently announced that it has been achieving above and beyond the already surprising growth of the rest of the industry.

iSuppli, a market intelligence service, reported that global photovoltaic installations grew 120.5 percent in 2010. Worldwide, maker of the Amerisolar brand modules, are projecting a stunning 165 percent increase in revenue, making the company one of the industry leaders.

"Our ongoing goal is to continue to strive for company growth that is in excess of the PV solar industry," said Worldwide CEO Jimmy Wang.

But don’t let Worldwide’s success seem indicative of other U.S.-based companies—Amerisolar modules are actually manufactured in China for the time being.

Chinese company Jinko Solar (NYSE: JKS) is weeks away from announcing its Q4 and full 2010 results to investors and the public.

At 8 a.m. ET on Feb. 28, the company is hosting a conference call, open to the public.

Last week, TheStreet reported that Jinko’s shares were up 6 percent. Following this news, Goldman Sachs issued a downgrade to Jinko, assuming that the stock had peaked. Not so. Yesterday, Jinko shares rose another 7 percent. The announcement of the 2010 financials will either add weight to Goldman’s bleak outlook last week, or establish Jinko Solar as a major player.

To access the conference call, dial 1-866-519-4004, pass code: J inko S olar. Jinko asks that you call at least 10 minutes before the call is scheduled to begin. The call is toll free.

Another conference call taking place in February will unveil SunPower’s (Nasdaq: SPWRA, SPWRB) 2010 year-end financials. SunPower,one of busiest U.S.-based solar suppliers, has had a banner year.

The company announced Q3 revenues at $743.7 million, a 19-percent increase from Q2’s $625.1 million.

And back to China we go.

Chinese firms LDK Solar (NYSE: LDK), China Sunergy (Nasdaq: CSUN), and JA Solar (Nasdaq: JASO) were all cited in Zack.com’s recent Industry Highlights. Each company achieved Zack.com’s #1 Rank (short-term, strong buy rating).

The report cited current subsidies and rebates, environmental advantages, and the lack of fuel-cost risks, insuring that solar will continue to be in demand, cost effective, and continue to experience growth worldwide.

Because of China’s aggressive solar capacity goals for 2020, Zacks.com said that the above companies stand to benefit.

But solar’s popularity doesn’t only affect solar prices—inverters, semi-conductors, and micro grids are all riding the wave in 2011.

However, these markets are not matching the pace of solar modules. In fact, semi-conductor manufacturer Applied Materials (Nasdaq: AMAT) is showing a slowdown into 2011. The company predicts that revenue in 2011 will, most likely, be similar to 2010’s, without a significant increase.

Applied Materials is, however, trying to scale-down its chip-equipment business and is concentrating on semi-conductors tailor-made for the solar technologies.

Solar energy investing: what's happening in the solar market? : Solar Energy - Clean Energy Authority

Module 2: 2050 Supergrid

European Supergrid Slowly Coming into Focus

I would be very excited to hear about how people might envision this concept for Canada and all of North America. See the link at the bottom to watch a very informative video on the European Supergrid.

A new agreement is one more step forward on the long journey to develop offshore renewable energy infrastructure and unlock gigawatts of wind power capacity.

London, UK – In early December 2010, as Europe was grappling with sovereign debt crises and angry protests swept through its cities, a group of Ministers and grid operators met quietly to sign a deal that could help to secure the development of hundreds of gigawatts of renewable energy capacity.

The Northsea Countries Offshore Grid Initiative Memorandum of Understanding is the latest step in an ambitious program to put in place the infrastructure and market conditions to ensure that renewable energy generated offshore can be fed into the grid and brought to where it is most needed. The supergrid is considered an essential step in the development of Northern Europe's offshore wind industry and has the potential to unlock billions of euros in investment in key infrastructure.

At the heart of the plan is a vast series of undersea grid connections stretching down the coasts of the UK, France, Denmark, Netherlands, Germany, Ireland, Belgium, Norway, Sweden and possibly even down into Spain and Portugal. This offshore development would be combined with an improved onshore network, a more uniform system of grid management and interconnecting High Voltage Direct Current (HVDC) cables between countries.

Currently there are around 35-40 GW of offshore wind power capacity in various stages of planning in the UK alone, with many other countries in the region also laying out ambitious plans. Long term, the projections are for more than 169 GW of offshore wind operating in the North Sea by the middle of the century.

“The North Sea is such a fantastic energy resource for renewables that can service the whole region and a single electricity market will facilitate that sort of exploitation,” said Alex Murley, of RenewableUK, a group familiar with the project.

“It would allow you to cost effectively develop energy resources on a regional rather than a national level. 95% of current electricity is consumed within the country in which it is generated. Can you imagine Spain consuming 95% of its oranges?” asked Murley.

While non-binding, the recently signed MOU builds on previous in-principle agreements and seeks to promote cooperation in developing an offshore grid. Currently, there are three working groups set up to examine and tackle the technical, political and regulatory barriers.

The idea of an offshore suprgrid has been around for many years, and one of its main evangelists is Dr. Eddie O'Conner, CEO of Maintream Renewable Power and formerly of Airtricity. Back in 2002 O’Conner helped to conceive Friends of the Offshore Supergrid (FOSG), an industry-led body that was formally set up in March 2010 to push for speedier development of grid infrastructure.

“The FOSG came together to promote the concept of a supergrid. We have assembled the supply chain: providing the consulting engineers, the manufacturers of the HVDC equipment, the cable manufacturers and so on. We intend to advise governments as to how the supergrid can be rolled out as a single grid,” he explained in an interview with Wind Energy Update last year.

Despite the recent progress there remains a number of unresolved issues over who will own and operate the grid, who will pay for it and who will profit.

“There are various different ownership models and operator models. It is something that the third package [EU's latest energy policy] is looking at. The merchant model approach is something that is on the table now and we would look to encourage in the future,” commented Murley.

'Merchant model' refers to a system under which new companies could be established to develop and own offshore interconnectors or other infrastructure.

There also remains the question of political will, since the development of a large offshore grid will revolutionize European energy markets, bringing a single energy market significantly closer than governments have so far been willing or able to do.

Nonetheless, there does appear to be momentum behind the proposals. The third European energy package contains much of the policy basis for an offshore grid, with its emphasis on market liberalization and unbundling of grid ownership, energy generation and transmission. Despite some opposition from EU heavyweights France and Germany, the package was adopted in 2009, an example of the broad support it enjoys. New pan-European bodies such as European Network of Transmission System Operators for Electricity (ENTSO-e) and Agency for the Cooperation of Energy Regulators (ACER) have been established to help improve communication and coordination across the sector.

While there are a great number of details still to be worked out before a clearer picture of the new grid emerges, a number of concrete proposals are already in the planning. By 2020, RenewableUK estimates that there may be around 25 GW of offshore wind power capacity in UK waters (up from just over 1 GW today).

At the same time there are concrete plans for an additional 6.5 GW of interconnector cables linking the UK to the rest of Europe (at present there are 2.45 GW of interconnectors). The ability to trade large volumes of electricity with its neighbors should greatly enhance the usefulness of the UK’s offshore wind resources and overcome the challenges of intermittency associated with wind power.

Below is a video put together by Mainstream Renewable Power on the potential for Europe's supergrid. It's a big vision. But if it works as planned, it could give Europe a big advantage in the offshore wind space.

European Supergrid Slowly Coming into Focus | Renewable Energy News Article

Ontario opposition would seek green energy changes

Here's an article that I feel is important for Ontario solar, wind and hydroelectric developers, supporters, opposition and voters to be informed about.  

I understand the concerns of the Progressive Conservatives. Any new government's decisions and actions must well thought out. Analyze and understand the near term benefits and longterm impacts to the greater renewable industry involved (developers, operators, manufacturers, installers, communities, First Nations etc.).

If new rates are deemed fair and justified, the industry and the rate base will understand.  Threatening to kill the Green Energy Act (feed in tariff, related programs and procedures) without an immediate system in place will reboot a repeating industry boom and bust cycle that Ontario's renewable industry has experienced over the last 3 decades.  

Read below:

By Nicole Mordant

VANCOUVER, Jan 12 (Reuters) - Ontario's opposition Progressive Conservative Party would overhaul the province's feed-in tariff program for producers of renewable energy if it wins the October provincial election because it is too expensive, a party leader said on Wednesday.

The Conservatives, who have a double-digit lead over the governing Liberal Party in opinion polls, would also comb through existing contracts handed out under the incentive plan to see if changes can be made, said John Yakabuski, who is in line to take over as energy minister if his party takes power.

"Going forward, absolutely, we would not be signing these contracts," Yakabuski said.

"We are not going tear up contracts, but I can tell you we are going to look at each and every one of those contracts to see what options we have," he told Reuters in an interview.

Ontario, Canada's most populous province, has attracted billions of dollars in investment from foreign and domestic producers of renewable energy since it launched North America's richest and comprehensive feed-in tariff program late in 2009.

The program, which is aimed at creating jobs and eliminating coal-fired power plants to cut greenhouse gases, pays above-market rates under 20 year contracts to solar, wind, water and biomass power producers who meet certain criteria.

Ratepayers, who bear the costs of the program, have started to complain as their monthly power bills have risen.

"The problem is that the consumer pays and that is the tremendous, terrible wrong of their program," Yakabuski said.

He said the Conservatives were in favor of closing down coal-fired power stations and encouraging the development of renewable energy, but contracts for new power had to be awarded through a competitive bidding process.

The Conservatives have not yet issued their official energy policy but will do so well before the Oct. 6 election, he said.

The biggest investor in the Ontario green energy program to date is a consortium led by South Korea's Samsung C&T (000830.KS: Quote), which was awarded a C$7 billion ($7.01 billion) contract a year ago to build wind and solar projects and set up manufacturing plants.

Other foreign investors include Germany's Siemens AG (SIEGn.DE:Quote), which plans to build a wind turbine plant in the province, Bosch Solar Energy AG (BSLRF.PK: Quote) and Japan's Marubeni Corp (8002.T:Quote).

"I think the posture of the Conservatives is slowing some investment," said Michael Carten, chief executive of Sustainable Energy Technologies Ltd (STG.V: Quote), which has partnered with Bosch to build solar modules and inverters.

"I am sure that some of the big players are saying 'I have to see some continuity on this, let's see what will happen after the fall'," he said.

($1=$0.99 Canadian) (Editing by Rob Wilson)

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