Wednesday, January 21, 2009

U.S. Tops in Wind Energy

According to a statistic released by the American Wind Energy Association, the U.S. is not the leading country in wind energy, passing Germany, after a record breaking year of wind energy market growth. The national trade association of country's wind industry says in 2008 the industry had another record growth year - the third record year in a row and generated more than $18 billion in revenues.

"Wind energy installations are well ahead of the curve for contributing 20% of the U.S. electric power supply by 2030 as envisioned by the U.S. Department of Energy," Executive Director of the American Wind Energy Association, Randall Swisher, said on December 26.

At the end of September, the U.S. had over 21,000 megawatts of wind capacity up and running, doubling the capacity from 2006. 21,000 megawatts of capacity are expected to generate over 60 billion kilowatt hours of electricity in 2009, enough to serve over 5.5 million American homes. This means that in 2009 wind power is estimated to displace the burning of 30.4 million short tons of coal - enough to fill a coal train that would stretch 2,000 miles from Washington, DC to the middle of Utah. AWEA also calculates the 60 billion kilowatt hours of electricity generated by wind power next year will displace 91 million barrels of oil, or 560 billion cubic feet of natural gas- about nine percent of the natural gas used for electricity generation in the United States. The U.S. Department of Energy reported that wind power could provide 20 percent of U.S. electricity by 2030, supporting 500,000 jobs and reducing greenhouse gas emissions as much taking 140 million vehicles off the road, and saving four trillion gallons of water.

As part of the $700 billion financial bailout law passed in October, production and investment tax credits that benefit the wind industry and other renewable energy industries were approved by Congress and singed into law. The tax credit package will extend the renewable energy production tax credit for one year and the investment tax credit for eight years.

In 2008, the wind industry and environmental groups forged a new alliance. On November, 20 conservation and environmental groups and wind energy companies announced the creation of the American Wind Wildlife Institute to facilitate timely and responsible development of wind energy while protecting wildlife and wildlife habitat. AWWI to serve as example for other energy sectors by proactively addressing potential biodiversity impacts as wind energy is more widely deployed.

"Climate and energy are the issues of our time," said Julia Levin, global warming director at the National Audubon Society and the first chair of AWWI's board of directors. "AWWI will play a crucial role in developing the science, mapping and other tools needed to accelerate properly sited wind power development and begin reducing U.S. greenhouse gas emissions." "The expansion of wind power in the United States is essential to reduce heat-trapping emissions and limit the impacts of global warming on our nation's wildlife," said Dr. Peter Frumhoff, AWWI board member and director of science and policy at the Union of Concerned Scientists. "Our new institute will work to ensure that wind power and wildlife can both thrive."

The seven nonprofit founding organizations of AWWI represent more than 4.3 million members nationwide and include: Association of Fish & Wildlife Agencies, Environmental Defense Fund, National Audubon Soceity, Natural Resources Defense Council, The Nature Conservancy, Sierra Club and Union of Concerned Scientists. The remaining 13 founding AWWI members are wind industry businesses. They include: AES Wind Generation, BP Wind Energy, Babcock & Brown, enXco, Clipper Windpower, E.ON, GE Energy, Horizon Wind Energy, Iberdrola Renewable Energies USA, Nordic Windpower, NRG Systems, Renewable Energy System Americas and Vestas Americas.

Source: http://www.ens-newswire.com/ens/dec2008/2008-12-26-01.asp Date:26-12-08

India State Hikes Wind Power Rate To Attract More Investors

The Tamil Nadu Electricity Regulatory Commission (TNERC) has proposed a sharp increase in the wind power tariff to attract more private investors and tap the state's wind power potential. Though Tamil Nadu with an installed capacity of 1400MW accounts for 43% of the total wind power generated in the country, it has failed to draw more private players because of the low tariff. Tamil Nadu offers a low price for wind energy from private investors compared to states like West Bengal.

Wind turbine manufacturers, wind energy developers and wing energy generators have periodically made representations to the TNERC urging it to refix the tariff in view of input costs such as capital costs, interest rates and maintenance costs in increasing in the last two years.

Despite being a significant wind power producer, Tamil Nadu has been showing a declining trend when it comes to augmenting its wind energy sources. In fact, there is fear that investment have been shifting from Tamil Nadu to other states like Gujarat, Maharashtra and Karnataka which offer a more competitive price.

Tamil Nadu's wind power mills are situated in three major passes in the western ghats - the Aralvaimozhi, Sencotta and Palghat passes. "Various factos like constraints on evacuation of wind energy and frequent load shedding affected investments. The industry has been quite unahppy with the tariff, which was fixed during May 2006 at Rs 2.90 paise. As many businessmen came forward seeking tariff revision, we decided to put forth a proposal" said a TNERC official, who did not wish to be named.

The revision of tariff is expected to bring in more players and investments to the tune of Rs 2,000 crore. "With the demand-supply gap standing at 2000 MW, we need more power plants. It is unfair to put the entire burden on the government. Though Tamil Nadu has an edge over States like Gujarat and Karnataka which contribute only 11% to the national wind power generation, the tariff remained a stumbling block," said the official.

Meanwhile, industrialists foresee a better investment scenario if the tariff is revised. Raj Kumar Khemka, vice chairman of NPEC said that the decision would encourage more investments. He said more independent power projects would come up even in areas with low wind velocity.

Said Ramani, the task force member of the Indian Wind Turbine Manufacturers Association: "The size of our business is about 600 MW throughout the state. Though there will be a slight fall in investments due to the economic meltdown, we are sure of good growth during the financial year 2009-2010."

Source:http://timesofindia.indiatimes.com/Cities/State_hikes_wind_power_rate_to_attract_more_investors/rssarticleshow/3848227.cms Date:17-12-08

Suzlon to up its stake in German wind power firm

Suzlon Energy, the world's fifth leading and India's largest wind turbine manufacturer, Tuesday announced that it will invest about 270 million euros (about $369 million or Rs.17.56 billion) to hike its stake in German wind power company REpower Systems AG.

Suzlon will pick up a 22.4 percent stake that Martifer Group of Portugal holds in REpower, which will up its holding in the German firm to about 91 percent.

As per the new terms, Suzlon will pay Martifer in three tranches with the first instalment of euro 65 million ($89 million or Rs.4.23 billion) being paid this month.

The next instalment, of euro 30 million ($41 million or Rs.1.95 billion), will be made in April 2009 and the final one of euro 175 million ($239 million or Rs.11.38 billion)the following month.

Suzlon's acquisition of Repower Systems is aimed at tapping the European and North American wind energy markets. Said a Suzlon spokesperson: 'REpower complements us in both extending our geographical presence and widening our product portfolio. Suzlon is strong in the South European market with medium capacity onshore wind power plants, and REpower has strong offshore capabilities in Northern Europe.'

While Suzlon's largest on-shore wind turbine is of 2.1 MW capacity, REpower's wind turbines are in the range 2.2 MW to 5 MW.

'REpower will also benefit from the deal as it can capitalise on Suzlon's integrated supply chain and manufacture or source wind turbines faster and at cheaper rates,' the spokesperson added.

Suzlon's script was trading up by 7.17 percent following the announcement.

Source: http://www.calcuttanews.net/story/442664 Date: 16-12-08

Suzlon Energy sells 10% Hansen stake to Ecofin

The world's fifth largest wind turbine maker, Suzlon Energy, has agreed to sell about 10% of its equity stake in gearbox designer Hansen Transmissions to Ecofin, a London-based investment firm which specializes in the utility and infrastructure sectors. Suzlon says the sale is part of its strategy to finance future growth plans. Suzlon has taken the step in view of the tight liquidity situation and its obligation to buy the stake of Portuguese company Martifer in REpower, Germany.

Suzlon is the largest shareholder of Hansen and part of the advisory board. After the stake sale, Suzlon will retain a voting right and economic interest of about 61 percent in Hansen. The company has not disclosed the value of the transaction but it is believed to be in the neighborhood of 77 million euros.

"It's an asset sale that the company is doing and this is in line with the plan to raise funds," said sources close to the company. Suzlon has been targeting to raise funds that would part finance its move to raise its stake in Repower. The Tulsi Tanti-controlled company had earlier postponed a Rs 1,800-crore rights issue in October due to bad equity markets.

Suzlon's transaction to sell the stake would reduce its shareholding in Hansen to about 61.28%, while Ecofin will have voting and economic interest in Hansen of about 11.62%. Suzlon has also granted Ecofin the right to nominate one director on the board of Hansen.

Suzlon has acquired the Belgium-based manufacturer of gears for wind turbines in May 2006 for about Rs 2,500 crore (€465 million). It floated Hansen on the London Stock Exchange in December 2007 and raised about €400 million.

The transaction is also subject to conditions, Suzlon's statement said. Ecofin has undertaken to Suzlon that it won't dispose shares acquired from Suzlon until after June 30, 2009. The lock-up is renounceable only in certain circumstances, the statement added. Ecofin will get 67,010,421 shares representing 10 per cent equity interest in Hansen through AE-Rotor Holding, a wholly-owned indirect subsidiary of Suzlon, which is currently holding the shares. Ecofin already holds 1.62 per cent of Hansen shares.

Suzlon Energy has been trying to increase its shareholding in REpower to more than 90% that would allow it to transfer the wind energy technology to India, for use in forthcoming projects. Suzlon currently accounts for about 10.5% of the global market share of the wind turbine market.

Last month, Suzlon bought the first tranche of Protugal major Martifer group's stake in REpower Systems for Euro 65 million that has taken Suzlon's holding in REpower to 73.71%.

Suzlon had earlier agreed with Marifer on a revised payment schedule to buy Martifier's 22.4% stake in REpower. The company was to acquire Martifier's stake via three tranches and by paying Euro 65 million in December 2008, Euro 30 million in April 2009 and finally Euro 175 million in May 2009. By the end of three tranches, Suzlon's ownership level in REpower would go up to about 91%

Source: http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/Suzlon_Energy_sells_10_Hansen_stake_to_Ecofin/rssarticleshow/3926826.cms Date: 02-01-9

China Passes India in Wind Power

Wind installation in China grew substantially by the end of 2008, surpassing the Indian market - the largest wind power market in Asia.

According to a new research report "Wind Power: Opportunities in Emerging Markets" by RNCOS, wind power installation is rapidly increasing in the People's Republic of China (PRC) and posted a stupendous growth rate of more than 127% by end of 2007. With this enormous growth, the Chinese wind power industry is expected to soon leave India behind, the largest wind power industry in Asia.

The National Development & Reform Commission (NDRC) of PRC initiated the wind industry commercialization in 2003 through the concession programs, speeding up wind power installation in the country. Later, a Renewable Energy Law was introduced in 2006 which, together with other measures such as pricing policy, obligation on grid companies to purchase renewable electricity, and cost distribution, boosted the development of renewable energy in China.

The introduction of the Renewable Energy Law provided legal guarantees and clear policy direction for the development of wind industry in China. Also, the government is providing a growth platform for domestic players by mandating the use of at least 70% components sourced from the domestic market in wind power projects that gives sufficient opportunities for further growth to domestic turbine market. As more and more domestic players will go for wind turbine installation, its cost will drop significantly in future due to high price competition, says the RNCOS report. The increasing preference for large turbines is also expected to drive the wind power installation in China at a rapid pace in coming years.


For more information visit: http://www.rncos.com/Report/IM158.htm Date: 05-01-09

GE Drivetrain Technologies Signs LOIs with A-Power

GE Drivetrain Technologies, a unit of GE Transportation, and A-Power Energy Generation Systems (Nasdaq: APWR) announced today that they have signed two Letters of Intent (LOI), one for GE Drivetrain Technologies to supply A-Power with 2.7 megawatt (MW) wind turbine gearboxes and a second to establish a Joint Venture partnership for a wind turbine gearbox assembly plant.

Under the supply agreement, GE Drivetrain Technologies will supply A-Power with more than 900 2.7 MW gearboxes beginning in 2010. ''We're excited about the opportunity to serve A-Power," said Prescott Logan, Business Leader GE Drivetrain Technologies. ''The speed and focus that A-Power has brought to building its wind turbine business, combined with the highly reliable design of its Fuhrlander 2.7 MW turbine, position A-Power well for long-term success in China and the broader global market.''

Added Logan: ''Our agreement with A-Power is part of our larger strategy to build our customer base through key strategic partnerships, expand into new geographies, and develop innovative drive train systems that leverage GE Drivetrain Technologies' more than 100 years of designing and manufacturing electromechanical drives.''

The companies' joint venture agreement creates a wind turbine gearbox assembly business that will be majority owned by GE Drivetrain Technologies and operate under the name GE Transportation. The new assembly plant will bring multi-megawatt gearbox capacity to China and serve as GE Drivetrain Technologies' Southeast Asia manufacturing center from which it will serve its customers in the region beginning in mid-2010.

The Joint Venture company will take advantage of A-Power's knowledge of the local market, as well as of GE Drivetrain Technologies' process and quality expertise.

Establishing a joint venture with a strong partner such as A-Power is consistent with GE Transportation's approach to the global market. ''GE's successful history of conducting business in China is based on our belief that we must operate as a local company,'' said Tim Schweikert, President of GE Technology Infrastructure in China. ''We appreciate the value of a local perspective as we bring advanced wind drive train technology to the forefront in China.''

The combination of these two agreements fits well with A-Power's business strategy and complements investments that it has already made to build a world-class wind turbine business. "Our gearbox supply agreement and JV partnership with GE Drivetrain Technologies represent another significant building block in the foundation of our wind turbine business,'' said John S. Lin, Senior Vice President, Director, Chief Strategy Officer and acting Chief Financial Officer of A-Power. "We are pleased to partner with a company such as GE that brings global quality standards, renowned engineering expertise, proven design, and a commitment to a local supply chain.''

These agreements support China's initiative to increase wind energy output from one gigawatt in 2005 to 30 gigawatts by 2020 and are the basis for additional future investments by GE Drivetrain Technologies in its local supply chain and advanced wind turbine drive train products, such as its IntegraDrive geared generator.

Source: http://www.forbes.com/prnewswire/feeds/prnewswire/2009/01/12/prnewswire200901120909PR_NEWS_USPR_____CNM034.html Date: 12-01-09