SolarSummary: February 18-24, 2003

by Kirsten Elder

Companies in the news

Delphi International

ESD

ExxonMobil

Phnix SonnenStrom

Shell Solar

Tata BP Solar


Applications

Shell Solar has completed one of the largest solar electric installations at a public university in California. The $1.8 million Photovoltaic Project at Cal State Northridge was developed through a partnership with the university’s Physical Plant Management Department, Los Angeles Department of Water and Power (LADWP) and the Southern California Gas Company. The 3,000 solar panels are expected to save the university more than $50,000 annually in energy costs. (Shell Solar via Solarbuzz.com, 24/02/03)


Markets

The use of wind and solar will grow quickly over the next two decades, says the chairman and CEO of ExxonMobil, but growth will be due to government policies and incentives, and not market demand. Solar power costs the equivalent of US$100 to $250 per barrel of oil, Lee Raymond said, with the intermittent nature of solar energy adding additional costs. “Starting from such a low base today, wind and solar are unlikely to exceed a one-percent share of the world’s energy needs by 2020, even with double-digit growth rates,” he says. “Oil and gas – representing 60 percent of energy supplies today – will remain the dominant energy source until at least the middle of this century.” (Refocus Weekly, 19/02/03)

The London Development Agency (LDA) has recently commissioned UK-based ESD Ltd (Energy for Sustainable Development) to undertake research on the sustainable energy sector in London and the potential opportunities for growth. In order to assist the LDA with this work – ensuring that the findings are robust and comprehensive Adrian Court of Delphi International Ltd has been invited to join the advisory panel. (Delphi, 21/02/03)

Power production from renewable energies rose 18 percent last year in Germany to 45 billion kilowatt hours (kWh), electricity industry association VDEW said this week. Citing preliminary estimates, the association said in a statement that green power in 2002 had accounted for 8 percent of total production in Europe’s biggest power market. This compared with a renewables share of 6.5 percent out of total output in 2001. (Planet Ark [Reuters], 19/02/03)

Sasol is investing R15 million ($1.7 million) in a project to help the South African Government set up ten Integrated Energy Centres (IeCs) over the next three years to make energy more accessible and affordable to the rural poor. Sasol chief executive, Pieter Cox, says: “Instead of wholesalers, distributors, routers and spaza shop involvement, energy products will be delivered directly to the Integrated Energy Centre that will become sole wholesaler and distributor. Feasibility studies are currently underway to determine the best suited products which could range from liquid petroleum gas (LPG), paraffin, electricity and solar energy to coal.” (Solarbuzz.com, 19/02/03)

Indias Punjab Energy Development Agency (part of the Government of Punjab) has recently awarded TATA BP Solar an order to supply, install, commission and maintain 500 solar PV water pumping systems. The contract is valued at Rs. 157.5 million ($3.3 million) and is one of the largest solar water pumping projects ever in India. TATA BP Solar is required to complete the entire project in three months. (Solarbuzz.com, 18/02/03)


Policy and Incentives

The UK Government has reaffirmed its commitment to renewable energy by announcing a 1bn support package to enable Britain to generate 20 percent of its electricity from wind, wave and solar power by 2020. The announcement comes a week after speculation that such packages and targets were actually to be cut. The long-awaited Energy White Paper will also increase funding for the development of renewable technologies to 350m and outline new incentives to encourage greater energy efficiency. Although the White Paper will keep open the nuclear option on a long-term basis, it will rule out the building of any new reactors in the foreseeable future. (The Independent, 24/02/03)

The US Office of Energy Efficiency & Renewable Energy of the DOE has issued a pre-solicitation notice for this year’s State Energy Program. $16.6 million will be available for renewable energy projects that are proposed by individual states. Proposed projects must help the states accelerate deployment of renewables and energy efficiency technologies, facilitate acceptance of “emerging and underutilized” technologies and increase the responsiveness of federally-funded technology development efforts to private sector needs. Among the programs to participate this year are the Federal Energy Management Program ($500,000) which uses renewables on federal sites; and the Solar Technology Program ($250,000) to determine if islanding is a reasonable concern for distributed energy resources. (Refocus Weekly, 19/02/03)

The California Energy Commission (CEC) has ruled on the proposed changes to the California Emerging Renewables Program. The result will be that the rebate level that applied through last year of $4.50 per watt will reduce to $4.00 per watt and again down to $3.80 per watt from July 1, 2003. Thereafter, the rebate level will reduce by 20 cents per watt every six months. These rebate levels will apply to systems less than 30 kilowatts. (Solarbuzz.com, 19/02/03)


Industry Reports and Events

The US De
partment of Energy is seeking participants for the 2005 Solar Decathlon. The event is an intercollegiate design competition for student teams that will design, build and operate solar-powered buildings in a one-week competition in Washington in two years. The ‘Solar Decathlon: Energy We Can Live’ competition is open only to colleges, universities and post-secondary educational institutions. (Refocus Weekly, 19/02/03)


Corporate News

Dr. Murray Cameron has been appointed a member of the Board of Directors of Phnix SonnenStrom AG in Sulzemoos near Munich, Germany. He will take up his appointment on 1st March 2003. As the third member of the board of directors, alongside CEO Dr. Andreas Hnel and CTO Manfred Bchler, he will be responsible for international business within the company. (Press Release, 20/02/03)

Tata BP Solar has inaugurated its 38 MW solar module manufacturing facility in Bangalore, said to be the largest single location plant in the world. The plant, in which Tata BP Solar invested over Rs.30 crores, will produce over 160 W individually rated solar modules. The company has also launched 3 products – international model of solar water heating systems (300 litres per day capacity); building integrated photovoltaic modules and high efficiency solar cells, the last of which will set a new industry standard of 80W to 85W modules. (The Hindu via Solarbuzz.com, 21/02/03)

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Delphi International Ltd. is recognised for its role in helping establish and support the investment case for sustainable development in both OECD countries and emerging markets. Our experience of venture capital and early stage financing, together with considerable combined knowledge of the Water, Waste Management and Renewable Energy sectors, enable us to provide relevant strategic and business development advice to owners of ‘breakthrough’ technologies seeking expansion capital.

Understanding the expectation and requirements of Socially Responsible Investors, Delphi also works with both private institutions and multinationals to develop and advise innovative “green” funds or financing mechanisms. Our weekly SolarSummary, is an extract from our extensive research data base, aimed at the busy executive needing to keep track of the fast growing PV sector.

Contact: Kirsten Elder
Delphi International Ltd.
First Floor
Hinde Street
London W1U 3BJ
Tel: +44 (0) 207 486 4843
Fax: +44 (0) 207 486 4845
www.delphi-international.co.uk

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