SolarSummary: November 5-11, 2002

by Kirsten Elder

Companies in the news

Ebara Solar Inc: www.ebarasolar.com

Powerlight Corp: www.powerlight.com

Shell Solar (Philippines): www.shell.com/solar

Spire Corp: www.spirecorp.com

Applications

The US Navy Region Southwest announced it has deployed the largest federal solar photovoltaic system in the nation. The system is a unique solar electric carport at Naval Base Coronado in San Diego, which makes innovative use of existing parking space. The installation is comprised of two contiguous solar arrays, covering a half-mile long parking structure that serves US Navy personnel. In addition to providing shade for parked cars, the system generates the equivalent energy during the day to power over 935 homes. This 750 kW solar electric system will reduce the demand on California’s power grid and was designed, manufactured and installed by PowerLight Corporation of California.

The City of San Diego has taken the first step towards its goal of energy independence by commissioning its first solar-powered municipal building. The newly installed PV array consists of 468 panels and the entire structure will produce approximately 91,950 kWp per year to power the administration building, which currently uses 87,000 kWp of energy per year. The Citys Mayor believes that although the payback period may be as long as 25 years, the project has been a wise use of the Citys money due to the environmental and health benefits it brings. (Solarbuzz, 06/11/02)

The Massachusetts Institute of Technology is due to have 40 solar energy systems installed thanks to a grant from the Massachusetts Renewable Energy Trust (RET). Grants totaling US$2.6 million announced in October are part of the RET’s US$10 million Solar-to-Market Initiative, among the largest public investments in the solar photovoltaic industry in New England. The RET’s money came from a portion of Massachusetts electric bills collected over the last several years. (SolarAccess, 07/11/02)

Markets

In India, the Thane Municipal Corporation (TMC) is expected to pass a unique proposal which would make it mandatory for all new residential buildings constructed in the city to have solar energy panels. The first-of-its-kind initiative by a civic body is expected to help conserve energy as well as slash residents electricity bills by at least 15 percent. Thane is located in the greater Mumbai Metropolitan Region. In April 1999, the Union Ministry of Urban Development issued a directive asking all states to tap solar power as an alternative source of energy. The TMC may be the first civic body in the country to take a concrete step in the matter. (Kishore Rathod via Solarbuzz, 11/11/02)

Experts from both Germany and Singapore say that using solar energy to provide power for Singapore is unlikely to succeed in a big way unless the Government gets involved by paying part of the cost. They pointed out that a dozen small projects to tap solar energy have been tried, but these have not been applied on a large scale because of the high cost of buying and installing solar panels it costs four times more to get power from the sun than from oil. However, according to Mr Christophe Inglin, the Singapore managing director of Shell Solar, now is an ideal time for Singapore to develop its use of solar energy. He explained that with the freeing up of the energy market, consumers pay different electricity rates based on different hours, with prices peaking when demand peaks, such as at midday when air conditioning use is at its highest. Using solar energy when the sun is at its fiercest would help drive the cost of using such energy at peak periods down. His advice to Singapore: Develop your expertise and technology in solar energy, and then export it to the region. (The Straits Times via Solarbuzz, 11/11/02)

A memorandum of agreement (MoA) was forged recently between Shell Solar Philippines Corp (SSPC) and the Cooperative Bank of Palawan (CBP) in an effort to bring electricity to the remote Philippine region of Palawan. Shell Solar said the financing program through the CBP materialised after a survey showed that 80,000 households in the far-flung communities in the province have no access to electricity. Under the MoA, Shell Solar will give a P2.6 million (US$49,100) grant for solar power units to qualified households as determined by the CBP. CBP has said the loan is payable over five years at a 16 percent interest rate per annum. Based on the scheme, the cooperative bank, upon receiving verification that the household-applicant is qualified, shall pay the full amount of the solar power system to Shell Solar. (Asia Pulse via Solarbuzz, 06/11/02)

Investments and Finance

The Government of Sri Lanka received a credit in the amount of US$75 million equivalent from the International Development Association (IDA) to finance the Renewable Energy for Rural Economic Development (RERED) Project. It intends to use the credit proceeds towards payments for goods, works, related services and consulting services to be procured under this project. The project has several components: Grid-Connected Renewable Energy Power Generation; Solar PV Investments; Independent Grid Systems; Energy Efficiency and Demand Side Management; and Technical Assistance. This project will be jointly financed by a grant in the amount of US$8 million equivalent from the Global Environment Facility (GEF). Procurement of contracts financed by the IDA credit and the GEF co-financing grant will be conducted through the procedures as specified in the World Banks Guidelines, and is open to all bidders from eligible source countries as defined in the guidelines. (Solarbuzz, 11/11/02)

A report from the US General Accounting Office (GAO) asserts that the Export-Import (Ex-Im) Bank does not adequately finance Renewable Energy projects, and has inconsistently reported their funding e
fforts during the past decade. This follows a recent statement by the Ex-Im bank saying that they have substantially increased financing for Renewable Energy industries and projects. However, of the US$28 billion the Ex-Im Bank provided in loans and guarantees for energy-related projects from 1990 to 2001, 93 percent was used to finance fossil fuel projects while just 3 percent went to Renewable Energy projects, according to the GAO report. A response to the report from the Vice Chairman of Ex-Im Bank, Eduardo Aguirre included in the GAO draft report said global market conditions had driven Ex-Im Bank’s disproportionate funding of fossil fuel projects. (SolarAccess, 08/11/02)

Ebara Solar Inc. of Pittsburgh has been told that it will no longer receive funding from its Tokyo-based parent company, Ebara Corp, because it is negatively affecting the companys overall bottom line. Ebara Corp initially invested in Ebara Solar to develop energy sources for remote irrigation and water supply pumps. Ebara Solar had been preparing to market its flexible solar cell products to North American customers next year, but has been told that it will have to make do with financing already allotted for 2002 if it wants to continue operations. Ebara Solar has said it has not yet severed ties with Ebara Corp, and there is still a possibility that the corporate parent could remain as a minority partner. However that would require an infusion of venture capital from another source. Ebara Solar is working with the Pittsburgh Technology Council to identify potential venture funding sources. (Pittsburgh Journal via Solarbuzz, 07/11/02)

Policy and Incentives

UK Energy Minister Brian Wilson announced the members of the new Renewables Advisory Board. The Board will play a significant role in the formation and delivery of Government policy on Renewables. New members include: Tom Delay, currently the Chief Executive of the Carbon Trust; Dr Jeremy Leggett, CEO of Solar Century; and Ray Noble, who has been involved with R&D and projects with PV for over 10 years through his work with Ove Arup. Many of the new members experience focuses particularly on wind energy. (DTI press release via Greenpeace UK, 11/11/02)

The Dutch government will submit legislation to the parliament for 140 million in subsidies for clean energy production to help offset cuts planned in tax incentives for green energy consumers. The new proposals are part of an effort to cut the overall amount the state spends to promote clean energy by about 310 million annually, while shifting funding to producers from consumers, a spokesman for the Dutch economics ministry said. In September, the government said it would trim 450 million in subsidies in place since the beginning of the year by reducing the exemption to the “eco-tax” to three cents from six cents per kilowatt hour for households which use green energy. More than one million Dutch households have opted to buy green energy instead of traditional coal, gas or nuclear-generated power since July 2001. (Reuters via Solarbuzz, 05/11/02)

Corporate News

Spire Corporation announced it has restructured the management team for Spire Solar Operations, effective immediately. The purpose of the changes, according to the President and CEO of Spire Corporation Roger G. Little, is to gain the maximum benefit from the different skill sets of the senior management now in place. Rodger W. LaFavre, currently Vice President and Chief Financial Officer of Spire Solar, will assume the new position of Chief Operating Officer of Spire Solar. Stephen J. Hogan, Executive Vice President and General Manager of Spire Solar, will focus on the management of Spire Solar Chicago. Ramin Karimpour, currently Vice President of Solar Equipment Sales, will assume the new position of Vice President and General Manager of Solar Equipment. (Business Wire via CNN Money, 05/11/02)

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