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

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

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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