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2013/01/03

| 01.03.13 | Production Tax Credit jumps fiscal cliff

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FierceEnergy

January 3, 2013
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Today's Top Stories
1. BIPV good for housing and solar
2. EPA still refusing to reevaluate cellulosic biofuel mandate
3. Germany collaborating with Ukraine on biofuels
4. Chinese oil demand hits new high
5. AVSP could capture 25% more solar

Editor's Corner: Production Tax Credit survives fiscal cliff

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Market Your Open Smart Grid Career Opportunities to 17K Qualified Smart Grid Professionals!




Editor's Corner

Production Tax Credit survives fiscal cliff

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn


The renewable energy industry can breathe a sigh of relief as it jumps the fiscal cliff unscathed.

The Federal Production Tax Credit was set to expire at the end of 2012, and much of the renewable energy industry's (including on and offshore wind) fate hinged on the extension.

In 2012, 10,000 wind energy jobs were lost, according to the American Wind Energy Association. Without the extension of tax credits, the industry was looking at a potential loss of an additional 37,000 jobs, not only hurting the U.S. economy, but putting the country behind in the global renewable energy market.

According to the U.S. Department of Energy, offshore wind has the potential to produce four times the capacity of the current electric grid. And investments in Atlantic offshore wind could generate 300,000 new jobs and $200 billion in the U.S. economy, according to the National Wildlife Federation -- an opportunity that could be seized with tax credit extensions.

Some states have enacted policies to facilitate renewable energy, but those alone go just so far. With the extension of the Production Tax Credit in the early morning hours of New Year's Day, the government is walking the talk, and proving that clean energy is a priority for the country.

– Barb

Read more about: wind energy
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Marketplace

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Today's Top News

1. BIPV good for housing and solar

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

The emerging market for building integrated photovoltaics (BIPV) could offer a new way to develop revenue streams for both the housing and construction industry and global solar industry, according to Pike Research.

"The growing availability of energy-efficient, flexible, and transparent solar materials is transforming the way that architects and building engineers view, and use, photovoltaic systems," said Pike's Research Director Kerry-Ann Adamson. "In the future, BIPV will no longer be confined to spandrel or overhead applications. Rather, the entire building envelope will be able to put it to use, allowing the structure to produce its own power and feed additional power into the grid system."

A rebound from the great solar depression, as well as several long-term project that hit the market, will drive the BIPV market going into 2013, the research contends. Further, an increasing number of players in the supply chain are working together to provide solutions for the entire building envelope but also need to develop finished solar modules made by continuous production from PV rolls to enable the modules to be produced cost effectively in large volumes.

In 2011, Dow Solar got a $12.8 million injection of funds from the DOE's SunShot Initiative, which Dow invested in its "Transformational Approach to Reducing the Total System Costs of Building Integrated Photovoltaics" program. The program provides sustainable solutions that develop new materials and designs to enable the integration of lightweight and robust BIPV shingles.

For more:
- see this article

Related Article:
Dow Solar gets $12.8M from DOE SunShot

Read more about: building integrated photovoltaics, Pike Research
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2. EPA still refusing to reevaluate cellulosic biofuel mandate

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

The American Fuel & Petrochemical Manufacturers has petitioned the U.S. Environmental Protection Agency to waive the 2012 cellulosic biofuel mandate, citing a lack of domestic supply available for commercial use. This is the second year in a row that AFPM has filed a waiver petition for what it calls "a non-existent biofuel that EPA has mandated under the Renewable Fuel Standard (RFS)."

In 2011, American refiners were required to use six million gallons of cellulosic biofuel to meet the EPA-established mandate; however, the EPA Moderated Transaction System says that zero cellulosic biofuel was actually produced, AFPM contends.

"EPA's ambitious timeline for introducing cellulosic biofuel into the fuel supply market continues to be unrealistic despite billions in incentives to renewable fuel producers," said AFPM President Charles T. Drevna. "Congress foresaw that the aggressive renewable fuel standards might be unattainable and established several waiver provisions in the Clean Air Act including for inadequate domestic supply. If zero production doesn't meet the definition of inadequate, then it is time for Congress to reexamine the entire RFS and its failure to produce their desired results."

The EPA has 90 days to act upon the waiver petition, but AFPM has requested a faster track because compliance period for refiners ends on February 28, 2013 and cellulosic biofuel waiver credits for 2012 must be purchased on or before that date.

For more:
- see this article
- see this article

Read more about: American Fuel & Petrochemical Manufacturers, cellulosic biofuel mandate
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3. Germany collaborating with Ukraine on biofuels

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Germany will help the Ukraine establish its own biofuel production in 2013, according to minagro.gov.ua. The partnership builds upon a long-standing Ukraine-German scientific exchange.

Ukrainian scientists have created draft projects for pilot biofuel complexes, which would produce thermal power and biogas out of agricultural waste using German technology and equipment. Germany could also invest in the biofuel projects.

Viktor Tymoshchuk, an expert at the Department of Engineering and Agricultural Machinery, the Ministry of Agrarian Policy and Food of Ukraine, told Worldwide News Ukraine that this year the two countries plan to take their partnership to a new level by bringing to life biofuel projects, including the establishment of a pilot bio-energy village.

The Ukraine currently produces entry-level 700,000 tons of solid biofuel per year, according to Tymoshchuk. Comparably, an average German biofuel plant provides 800,000 tons of solid biofuel per year.

Ukraine hopes to launch 10 solid biofuel production plants.

For more:
- see this article

Related Article:
USDA investing in bioenergy

Read more about: Viktor Tymoshchuk, biofuel production
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4. Chinese oil demand hits new high

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Robust growth in China's oil sector is proof that the country's economy is on its way up, according to research from Platts.

Platts' analysis of recent Chinese government data revealed that China's apparent oil demand increased 9.1 percent year over year in November 2012 to 42.96 million metric tons, or an average 10.5 million barrels per day -- the highest on record -- surpassing the previous record high of 9.8 million barrels per day in September and 9.75 million in October. In November 2011, apparent demand grew by just 3.3 percent year over year to 9.62 million barrels per day.

Demand November was driven by record refinery throughput, according to China's National Bureau of Statistics. Net oil product imports also increased.

"The strong growth in November came from a recovery in consumption but part of it was also likely due to domestic refineries keeping their runs high to replenish oil product stocks that were run down in summer," said Song Yen Ling, Platts senior writer for China. "According to sources, demand growth could moderate to around the 5 percent level going forward once refiners have replaced these stocks," Song said.

For more:
- see this article
- see this article
- see this article

Read more about: Platts
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5. AVSP could capture 25% more solar

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

The first few days of 2013 have demonstrated that interest in utility-scale solar power is not a thing of the past with one of the largest solar power acquisitions by MidAmerican Solar, a subsidiary of Warren Buffett's utility MidAmerican Energy Holdings.

MidAmerican has added to its more than 1,830 MW renewable energy portfolio with the acquisition of SunPower's 579 MW Antelope Valley Solar Projects (AVSP). The deal could net as much as $2.5 billion, but the total value has yet to be confirmed.

After four years in development, the two co-located projects that comprise AVSP will form the largest permitted solar photovoltaic power development in the world. SunPower will install its modular technology used to rapidly deploy utility-scale solar projects while minimizing land use. The technology uses highly efficient solar panels and a sun tracker system to increase energy capture by up to 25 percent.

The power from both units will be purchased by Southern California Edison. Construction will begin in the first quarter of 2013 and will be completed by the end of 2015.

The project could offset more than 775,000 tons of carbon dioxide emissions per year -- equivalent to removing almost three million cars from to road -- over 20 years, according to estimates from the U.S. Environmental Protection Agency.

For more:
- see this article

Related Articles: 
Buffett's utility heads into renewables
Buffett's utility completes solar acquisition

Read more about: MidAmerican Solar, U.S. Environmental Protection Agency
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Also Noted

SPOTLIGHT ON... ComEd to get power from Shady Oaks

Algonquin Power, the non-regulated power generation subsidiary of Algonquin Power & Utilities Corp., has acquired Shady Oaks wind facility from China's Goldwind International. The facility is located in Illinois and will sell electricity to Commonwealth Edison. The deal is reported at approximately $148.9 million. Article

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