An Ignoble Experiment

2. "Overly generous" incentives driving solar in Japan

The good news is that more than 50 percent of all homeowners in a recent survey by the Association of Energy Services Professionals (AESP) are actively pursuing energy efficiency in their homes. The bad news is that most of them are not looking to utilities to do that.

According to the survey of 1,000 homeowners, conducted jointly with International Communications Research, only 40 percent said they were participating in programs encouraging energy conservation and energy-efficiency offered by utilities like time of use rates and energy audits. Specifically, the results revealed that only 25 percent are using time-of-use rate differentials to lower their energy costs. Just 12 percent were utilizing financing options for new appliances. Participation in refrigerator recycling programs was just 10 percent and only 8 percent had conducted home energy audits, even though most utilities provide them free of charge.

The results are both encouraging and disappointing. As a result, AESP is encouraging consumers to view utilities as partners with the shared goals of decreasing energy use and expenditures.

"The results clearly demonstrate that consumers are willing to embrace energy-efficiency measures as they do save money and energy. Utilities strive to inform and educate their customers on the benefits of energy-efficiency practices," said Meg Matt, president and CEO, AESP.

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This week's sponsor is IEC 61850 Europe 2013.

Further information can be found at: www.iec61850-europe.com

By Barbara Vergetis Lundin

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3. AEE, MIT partner to speed advanced energy

Japan is projected to install more than 5 GW of new solar capacity in 2013, according to research from IHS. As a result, Japan would outpace Germany, Italy, and the U.S., becoming the second largest PV market worldwide. Installations are expected to exceed 1 GW in the first quarter of 2013 alone.

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Japan benefits from generous incentives which drive the solar market. For example, a feed-in tariff (FIT) pays up to 42 yen per kilowatt hour (.44 cents on the U.S. dollar).

"At ¥42, Japan's FIT is by far the most attractive globally -- overly generous perhaps, which could lead to overheating of the market," said Ash Sharma, senior director of solar research, IHS. "And while a 10 percent reduction in tariffs is widely expected by industry players, this will have little effect on both internal rates of return and market demand. Furthermore, many systems that have already applied for the higher FIT are able to benefit from this rate of ¥42 even if they are installed after April 1."

In 2013, solar projects larger than 2 MW are driving a triple-digit growth rate in Japan; however these projects may not endure.

"These so-called 'mega-solar' projects are being deployed at a rapid rate, and we expect they will account for approximately 25 percent of total demand in 2013," said Frank Xie, IHS senior analyst for PV and solar research, and co-author of the report. "Government policy is in clear support of these projects while the country grapples with severe energy shortages following its shunning of nuclear power. However, this is likely to be short-lived and decline after 2014 once the current pipeline of approved projects is completed, largely because of a shortage of land in the country."

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U.S. not among high-growth solar markets

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By Barbara Vergetis Lundin

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4. U.S. policies aimed at growing Asian market

Advanced Energy Economy (AEE) has undertaken a broad-based effort to realize a more innovative power sector for the country.

In partnership with the Massachusetts Institute of Technology's Industrial Performance Center (MIT-IPC), AEE will convene top national utility executives with advanced energy company executives to identify steps at the regional and national levels that could speed advanced energy adoption within the utility sector.

"By joining together on neutral ground, we can start a dialogue that leads to a more innovative energy sector in the country, faster growth for local and regional economies, and -- crucially -- a more effective response to the challenge of climate change," said Richard Lester, head of MIT's Nuclear Science and Engineering Department.

The goal is that this dialogue will result in the development of an action plan and roadmap focusing on helping advanced energy companies understand the taxonomy of utility needs, aligning business models and incentives so utilities can get involved in innovation and create value for diverse stakeholders, and assisting regulators in encouraging innovation in the sector.

"Advanced energy companies are creating economic value today and will create even more if we make the most of local resources," said AEE co-founder and co-chair Hemant Taneja. He added that forging public-private partnerships to leverage regional assets will drive faster adoption of new technologies and faster growth of the companies that produce them.

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By Travis Mitchell

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5. Water utility reaches 100 percent reliability

The energy industry is becoming an increasingly global enterprise. The U.S. government has a number of policies and programs designed to help utilities and energy service companies remain competitive in this expanding market.

Asian communities in particular have a highly advanced energy system. Japan, for example, began its solar net metering program in 1992 and instituted a renewable portfolio standard (RPS) in 2003. China's population is exploding, and it will need a lot of energy in the near future. This creates a tremendous opportunity for U.S. companies to invest in and become active with, but the sheer size of the marketplace can often be overwhelming.

To that end, the U.S. Department of Energy (DOE), U.S Department of State and others are involved in a number of business collaborations with Asian countries in an effort to support business growth.

"The U.S. government is very interested in collaboration," said Lorraine Hariton with the U.S. Department of State.

Speaking at Tuesday's EnergyBiz Leadership Forum, she cited what she believes to be the huge potential of the rapidly expanding Asian marketplace, but added that it can often be a daunting task for American businesses.

"From my own experience, I know there's a lot that the U.S. government does offer to help, especially small- and medium-sized companies, get into new markets," she said.

DOE is also hopeful that the U.S. has the policies in place to become major players in the overseas market.

"DOE is very optimistic about our smart grid cooperation," said Casey Delhotal, DOE's director of East Asian affairs.

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By Barbara Vergetis Lundin

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