Integrated Balance of System Solution: The Next Solar Cost Savings Frontier

Phil is First Green Energy's go to expert on all things Solar!  Great read for those interested in the solar industry. Reducing BoS field labor and material costs on projects are critical to achieving competitive system performance and pricing.

By Phil Winters As PV modules decline in price, the focus on cost savings increasingly turns to the Balance of Systems (BoS). Though material costs of BoS continue to rise (copper, aluminum, steel, etc.), costs savings are derived primarily from the engineered integration of the BOS system which can reduce labor and materials on the job site. Two recent studies concluded that BoS costs will likely exceed the costs of PV modules in the near term, becoming the highest cost portion of a solar system (this is including the mounting system, which we are including in BoS descriptions). According to GTM research, “…attention from developers and EPCs will increasingly be placed on a project’s balance-of-system (BoS) costs. Historically, innovation in the BoS space has been somewhat limited, given its smaller share of the total system. However, BoS costs will represent more than half of total project costs by 2012, and many BoS players are beginning to integrate their offerings into full-service component packages and positioning for greater share in the market via meaningful economic gains.” As well, the recently launched U.S. Department of Energy SunShot Initiative ‘aims to dramatically decrease the total costs of solar energy systems by 75% before the end of the decade’. Much of the focus of this initiative is on BoS and labor savings advancements. During the last decade, we have seen a series of shifts in the PV landscape. In 2002, the solar industry was squarely focused on the modules while the inverter was considered a mysterious box with a limited 3 year warranty that could be sourced from only a handful of suppliers in the market. Slowly the focus changed to the inverter, which now comes with standard 10 and 20 year warranties, and boasts thousands of suppliers globally. Until recently, nary a thought was given to the BoS, with integrators frequently building their own mounting systems out of strut, stuffing their own combiner boxes and cobbling together their BoS solutions from a series of manufacturers via their local electrical distributor. Thankfully, the industry has matured and many of these ‘home-made’ solutions have abated over time with suppliers like Eaton stepping in with high-quality, volume manufacturing. This has contributed to the decreasing installed cost of PV. There is, however, much to improve upon where significant BoS cost savings can occur, which Eaton is now squarely addressing. Take for instance, the current state of connecting modules to combiner boxes. Most contractors currently do all this work manually; running PV cable the length of the combiner box to module connection point, cutting and stripping the wires, crimping their contacts, assembling the connectors, attaching ID labels and terminating the string in the combiner box. This will be repeated dozens, hundreds and thousands of times depending on the scale of the project. Did we mention this is generally being done by highly paid electricians? Like days of old, with homemade mounting systems and combiner boxes, this practice results in more cost, more connection points, more leak paths and definitely more potential quality and safety issues due to human error. On top of this, it is questionable whether testing is conducted on every one of those connection points─i.e. pull, hi-pot and continuity testing─thus further increasing potential human error trouble spots, which can be dangerous down the road, costing significant resources to fix. There’s an option, Eaton BoS alternative: a custom made PV cable assembly that is manufactured for your project in a controlled condition, by highly trained personnel using precision Swiss made equipment. These custom assemblies arrive at the job mapped, labeled, guaranteed and 100% certified for pull test, continuity and Hi-Pot. This approach also reduces material and labor costs up to 30% while significantly increasing the quality and certainty of long-term system performance. The Eaton solution replaces a highly laborious and time consuming process with a plug and play solution. BoS breakthroughs like this are driving the reduction in system costs while driving solar towards grid parity. Companies like Eaton, with their integrated total BoS solution, are driving innovation and cost reductions across the system to benefit the entire solar industry. Part of what differentiates the Eaton approach to BoS is how the engineering teams from each product work together to optimize layouts and system designs to achieve material and labor savings. Eaton engineers across product disciplines work together, so our designs are focused on reducing labor and materials in the field. While other mounting manufacturers design their mounting solution and provide a quote around this one component of the system, the Eaton approach is to review the electrical design parameters of the project to ensure mounting, cable, cable management and combiners are all designed in one integrated fashion to maximize efficiency and cost savings opportunities on each specific project. A complete BoS engineered solution looks at every angle of the project, ensuring consideration of every component in tandem rather than in a vacuum. This reduces cost while increasing certainty of construction logistics, material costs and performance of PV asset. Let me give you a real-world example: Eaton recently worked on a 10 MW project which had received three quotes from three different companies to provide single component solutions (mounting, combiner boxes and PV cable solutions). Standard solutions at a standard price. Then, Eaton got involved with our Total BoS Solutions. What we were able to achieve by integrating our design practices across our BoS solutions was a 15% reduction in mounting costs, and a reduction in pier requirements by 33%. By matching our mounting configuration to the string sizing of the system, were able to reduce PV cable costs by 50% while reducing the labor on PV cable installation by 70%. This is a remarkable achievement on one project─and this approach drove the advancement of innovation at Eaton. It is a remarkable and positive change for the PV industry that one company can offer roof and ground mounting solutions, combiners and re-combiners, cable management solutions, PV cable harness assemblies, wireless monitoring and grid tie solutions all from one qualified highly bankable vendor. As solar continues to step onto the world stage of large scale utility and massively distributed rooftops, the manufacturing community also needs to step up their game to ensure they are integrating BoS solutions which provide better performance, higher long-term certainty and reduced costs in materials and labor. Phil Winters is the Renewable Energy Business Development Manager for Eaton in Canada. Prior to joining Eaton, Winters launched and led project development and EPC firms serving the Canadian and global solar markets. Winters is a graduate of both Solar Energy International (1999) and the Ontario Solar Academy (2009), and is currently the Vice President of the Solar and Sustainable Energy Society of Canada. He holds MBA from Southern Methodist University’s Cox School of Business. http://www.interpv.net/market/market_view.asp?idx=814&part_code=03

Stay Clear, Stay Safe - Dam Safety

Always an important message when it comes to hydroelectric power.

Ontario Power Generation (OPG) is urging the public to exercise extreme caution around waterways, and to be mindful of water safety especially near or around hydroelectric stations and dams.

"Stay clear, stay safe is a simple message," says Mike Martelli, OPG's Senior Vice President of Hydro-Thermal Operations. "Ontario's lakes and rivers are popular holiday weekend destinations but people need to keep themselves and their families safe by paying attention to the warnings signs, fences and booms around hydroelectric stations."

Most hydroelectric facilities are controlled remotely by operators located many kilometres away. As a result, dams can suddenly open at any time, creating rapid change to water levels and flows, while producing deadly undertows.
Additional water safety information can be found online at www.stayclearstaysafe.ca including links to OPG's water safety partners - the Ontario Provincial Police, and the Ontario Federation of Anglers and Hunters.

SOURCE Ontario Power Generation Inc.

 @opg Stay Clear, Stay Safe

Recurrent Energy hires Celestica to make solar electricity modules for Ontario

TORONTO - Celestica (TSX:CLS), a Toronto-based global manufacturing company, will be making solar modules for a U.S. company that will supply the Ontario Power Authority under a multi-year agreement announced Monday.

The modules are part of a project awarded to Recurrent Energy of San Francisco as part of the renewable energy Feed-In-Tariff program for the government-owned Ontario power grid.

Production will begin at Celestica's Toronto plant in the second quarter of this year, said Mike Andrade, Celestica's senior vice-president of the Americas.

"It's nice that there's a (green energy) market in our backyard," he said, adding that clean technology is a major growth initiative in the company's Canadian business.

"In Canada, historically we've done most of our business in the IT and communication space and we've made a concerted effort over the last few years to shift our focus to diversifying that."

The Celestica-manufactured photovoltaic modules will be used in the construction of 19 solar power plants that Recurrent Energy has contracted to do under the provincial government program.

Recurrent Energy said it expects to invest hundreds of million dollars in the development, which it says will create about 2,500 jobs in the province.

Last week, Celestica said it sees the opportunity for double-digit growth in revenue in 2011, for the first time in several years.

The revenue growth follows several years of investments in new market segments for Celestica _ particularly aerospace and defence, industrial and healthcare _ and the company anticipates making further investments in such areas in 2011, Muhlhauser said.

Recurrent Energy hires Celestica to make solar electricity modules for Ontario - Winnipeg Free Press

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)

© Thomson Reuters 2011 All rights reserved

Run-of-river projects need to be reconsidered

Both of B.C's major provincial parties are going through a time of enormous change, and it's fitting that we stop to recognize the contributions Carole James and Gordon Campbell have made to the public life of this province. Regardless of one's political orientation we need to acknowledge the dedication and commitment it takes to lead a political party and run for elected office.

Having said that, however: in my estimation, Ms. James and the NDP made a critical mistake during the last provincial election when they decided to oppose run-of-river power projects. They bought into the anti-private-sector propaganda pounded into their heads by the province's public sector union leaders and as a result they lost the support of many well informed B.C. environmentalists who knew the real facts.

Anyone familiar with run-of-river projects knows they have a negligible environmental impact compared to other forms of energy production. Run-of-river projects are a perfect fit for B.C.'s mountainous, snow-covered terrain and wet coastal climate, and other places in the world would give their eye teeth to have access to the clean hydro resources we have. We can only hope that the NDP will don their 20/20 hindsight goggles next time around, learn from their past mistake, and start supporting renewable energy projects again instead of maligning them.

Mike Taylor

Coquitlam

Run-of-river projects need to be reconsidered

Plutonic Power, GE Energy agree to buy 50MW Canadian portfolio

Plutonic Power and GE Energy Financial Services have agreed to buy three of First Solar’s power plants in Ontario, Canada. Permitting for the projects, which have a combined capacity of 50MW, is expected to take place this spring and construction scheduled to start in June.

Despite selling the portfolio, First Solar has agreed to long-term contracts to supply engineering, procurement, construction and operation services for the 10MW Amherstburg, 20MW Belmont and 20MW Walpole facilities. The electricity generated by the three sites will be will be sold to the Ontario Power Authority under a 20-year energy-purchase agreement and connected to the province's distribution grid at five points.

"Expanding into both a new market and a new technology represents significant growth for Plutonic," said Donald McInnes, vice chairman and CEO of Plutonic Power. "Our solid relationship with GE Energy Financial Services enabled this expansion into our third joint near-term operating asset."

"This transaction is GE Energy Financial Services' first solar investment in Canada, broadening our US$6 billion renewable energy portfolio and supporting our strong partnership with Plutonic," said Mark Tonner, GE’s managing director. "We see significant growth potential for solar power worldwide, which continues to improve on technology costs and efficiencies."

Plutonic Power is expected to make an equity contribution of around CAN$6 million towards the project and will also take on the role of senior partner in the agreement; debt financing will be coordinated by First Solar and is expected to be in place at financial close.

http://international.pv-tech.org/news/plutonic_power_ge_energy_agree_to_buy_50mw_canadian_portfolio

Hydroelectric power could be key to state cutting gas emissions - Framingham, MA - The MetroWest Daily News

Hydroelectric power could be key to state cutting gas emissions - Framingham, MA - The MetroWest Daily News

More hydroelectric power from Quebec could help power lights in local living rooms as part of a wide-ranging plan to cut greenhouse gas emissions 25 percent below 1990 levels by the end of this decade.

Nearly a fifth of that overall cut would come from importing more hydroelectric power from Canada, largely through a new transmission line proposed from Quebec to New Hampshire.

"That's still off in the future," said Lisa Capone, spokeswoman for the Executive Office of Energy and Environmental Affairs. "We figure probably it's at least five years away from actually being a reality."

The state's plan says that ultimately the new transmission line, known as the Northern Pass project, could serve up to 15 percent of the Bay State's current electricity demand.

It's not the only change proposed to Massachusetts' electric supply to account for 7.7 percent of the overall 25 percent emissions cut.

Another proposal would require utilities to increasingly favor cleaner or no-emissions fuels for the electricity they sell customers. The plan also anticipates that some of the state's older power plants may shut down under new U.S. Environmental Protection Agency regulations now in the works.

Overall, the state plan released Wednesday calls for everything from more energy-efficient buildings to incentives for drivers to stay off the road in order to meet the 25 percent cut.

The plan is part of the state's broader 2008 Global Warming Solutions Act, which mandates an 80 percent reduction of greenhouse emissions below 1990 levels by 2050.

Imported hydroelectric power would not be new to the region. Canadian hydroelectric already accounts for 8.5 percent of New England's electric consumption, the state's plan says.

A 2010 fact sheet from ISO New England, a nonprofit that runs the region's electrical grid, estimates that figure at 5 percent for the region and just 2 percent for Massachusetts.

New England gets about 38 percent of its power from natural gas, 25 percent from oil, 14 percent from nuclear and 9 percent from coal, the ISO says.

Hydroelectric is relatively low-cost and does not require renewable energy subsidies, the state's emissions plan says, but existing transmission lines are at full capacity.

Hydro Quebec, NStar and Northeast Utilities are working on the Northern Pass project with the Patrick administration's support. Project organizers say the new line could provide another 1,200 megawatts of hydro electricity, enough to power nearly a million houses.

The project is still in early engineering and study phases, with the goal of wrapping up in 2015, the Northern Pass website says.

Some environmental groups, including the Appalachian Mountain Club, oppose the project in its current form. Some of the proposed route would cut through the White Mountain National Forest and other protected lands.

As part of its effort to shift the electric supply to cleaner sources, the state is still looking to other renewable technologies.

An existing requirement of the 2008 Green Communities Act says Bay State utilities must hike their use of renewable energy by 1 percent a year. By 2020, 15 percent of the state's electric supply is supposed to come from eligible technologies, including wind and solar power.

The new plan proposes requiring utilities to improve based on pollution per megawatt, rather than just certain types of technology.

The plan argues that this could help spur the types of changes that have already helped make Massachusetts' electricity portfolio 20 percent cleaner since 2005, such as substituting natural gas for coal and oil as a "bridge" to cleaner sources.

The state would also remain part of the Regional Greenhouse Gas Initiative, a 10-state effort to cut carbon dioxide emissions.

One local renewable energy company yesterday gave high marks to the overall plan for a 25 percent greenhouse gas emission cut.

"With this step, Massachusetts continues to be a leader in two ways - environmentally by setting the bar high to reduce greenhouse gas emissions and economically by promoting energy independence and renewable energy jobs within the commonwealth," said Kevin Price, CEO of Renewable Sales in Holliston.

Michael Durand, an NStar spokesman, said the utility is still reviewing the state's plan. But he said NStar played a major role in crafting a proposal to expand its existing residential energy efficiency programs to commercial and industrial customers.

When is it right to redevelop hydroelectric sites?

It is a question that many in the industry are familiar with. There are many concerns when developing renewable energy projects. The most important concern is the environmental impact. Ultimately, renewable energy's selling feature is that it provides greater environmental benefits than not doing it. In most scenarios, there are cost benefits to any new development. My feeling it that the redevelopment of already impacted areas provides an opportunity to maintain the existing impacts and the resulting adapted environment with the creation of renewed green energy production. Water is already the greatest form of renewable energy. Waterpower is commonly viewed as reliable, reactive and renewable. It has been described as a source of energy "more than renewable". I agree. So important to the energy mix is that hydro is used as the perfect and only large scale support system for the wind industry. Where we can dramatically curb the new environmental impacts and provide this source of energy, it is my feeling that we should take all means necessary to support the redevelopment and refurbishment of our heritage green energy assets.

Many of these sites are seen as too small, or too aged to attract large corporate investment. This has caused an environment of less than optimal usage of the flowing resource, and in some cases the abandonment and removal of these sites.

When we are promoting new renewable technologies, we need to also be supporting our proven suppliers and encourage their continuing operations. Support can come from local communities, government initiatives, school level education programs demonstrating its history and benefits, and supplying to an informative discussion so as to avoid broad generalizations on hydroelectric development that have tarnished the good.

Core Components of the Green Energy Act of Ontario

Ontario Green Energy Act

In 2006, Premier McGuinty set a precedent in North America by introducing the Renewable Energy Standard Offer Program - the most progressive green energy initiative in more than twenty years.

In that same year the Ontario Power Authority began work on the Integrated Power System Plan – a 20-year plan that will determine how Ontario’s electricity system will evolve.

A great start. But not enough to get us where we need to go.

We need the Ontario Green Energy Act to propel Ontario into a leadership position in renewable energy, to reduce our pollution and greenhouse gas emissions, to create meaningful jobs for Ontarians and to enhance community economic development for rural, remote and First Nations communities.

Ontario Bill 150, Green Energy and Green Economy Act, 2009

Bill 150 was tabled at the Legislative Assembly of Ontario on February 23, 2009 and passed into law on May 14, 2009.

Official Liberal Party of Ontario Website for Ontario's Green Energy Act

Ontario's governing Liberal party has created a website providing explanation and information on their proposed Green Energy Act. Find it here.

Green Energy Act Introduction Testimonials - February 2009

Read what's being said about the tabling of the Green Energy Act by the Government of Ontario.

Green Energy Act Executive Summary

The Ontario Green Energy Act will make Ontario a global leader in the development of renewable energy, clean distributed energy and conservation - creating thousands of jobs, economic prosperity, energy security, and climate protection.

Proposed Green Energy Act

On December 10th at Queens Park in Toronto, a proposed draft of the Ontario green energy act was released titled: "An Act Granting Priority to Renewable Energy Sources to Manage Global Climate Change, Protect the Environment and Streamline Project Approvals". The draft will be under constant revision so please read it and send us your feedback.

Core Components of the Green Energy Act

The ten key points that define the goals of the Ontario Green Energy Act.

Sustainable energy unplugged: Making the connection

Getting connected to the electricity grid is proving a formidable problem for sustainable energy generators. A green energy act would oblige utilities to connect renewable energy.

Beyond the RESOP and the IPSP

Ontario’s Renewable Energy Standard Offer Program (RESOP) was the most progressive green energy initiative in North America for more than twenty years.

http://www.greenenergyact.ca/Page.asp?PageID=1224&SiteNodeID=202&BL_ExpandID=44