SBI Reports has been leading industrial market research reporting for more than a decade. The brand established SBI Energy to address the complex nature of the Energy and Resources industry. SBI Energy reports capture data vital to emerging energy market sectors on a global scale. Growth of energy technology, manufacturing, construction, transportation and investment is exciting in its innovations and opportunities, and integral to the advancement of security and science.
Karin Rives, Staff Writer
State Department Documents and Publications
February 17, 2011
Washington — The U.S. government is pushing for large-scale wind power development and the timing may be just right.
A recent study from Bloomberg New Energy Finance says that costs for electricity generated by onshore wind are now on par with costs for coal-generated power in the United States and several other markets. That could speed up development of renewables at a time when the world seeks cleaner sources of energy.
President Obama has called for 80 percent of U.S. energy to come from sources that produce little or no greenhouse gas emissions by 2035, a goal that will require increases in wind, solar, hydro and other “green” power sources. The United States gets about 11 percent of its electricity from renewable sources today.
WIND BLOWS IN THE RIGHT DIRECTION
Growing sales, more efficient wind turbines and overcapacity in the production of hardware have pushed the cost of onshore wind power to $68 per megawatt-hour. That’s just above the $67 per megawatt-hour to produce coal-generated electricity, Bloomberg reported in its latest market analysis.
Electricity from plants fueled by natural gas still costs significantly less — $56 per megawatt-hour, Bloomberg reported.
One megawatt-hour can power about 800 average-sized, single-family homes in the United States for one hour.
The study shows “wind continuing to become a competitive source of large-scale power,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance.
“For the past few years, wind turbine costs went up due to rising demand around the world and the increasing price of steel,” he said. “Behind the scenes, wind manufacturers were reducing their costs, and now we are seeing just how cheap wind energy can be when overcapacity in the supply chain works its way through to developers.”
Capital costs for offshore wind farms still run up to 50 percent higher than the cost to develop wind power on land, according to a recent report by SBI Energy, which tracks the market for renewable energy. Offshore wind turbines must be larger to withstand high ocean winds, but they can also generate more power, which helps offset some of the initial investment, SBI wrote.
Despite such challenges, a growing number of nations, including the United States, are pursuing offshore wind. Turbines at sea have less of an environmental impact than those on land and they can generate much more electricity.
U.S. PUTS OFFSHORE WIND ON FAST TRACK
In 2010, the United States cleared the way for the first large-scale offshore wind project off the coast of Massachusetts in the northeastern United States. That set the stage for proposals to open up other areas for such development, including the Mid-Atlantic coasts of New Jersey, Maryland, Delaware and Virginia.
The government hopes to deploy 10 gigawatts of offshore wind energy capacity by 2020, and 54 gigawatts by 2050. Millions of homes could get their power from wind that way.
The U.S. Department of the Interior has put the Mid-Atlantic projects on an expedited approval track, and leases to developers could be offered by late 2011, the agency said. To support those projects, the Department of Energy has announced $50.5 million in new funding to develop new wind turbine designs and to identify market barriers to wind energy.
The government recently gave a $1.3 billion loan guarantee to the world’s largest wind farm that will be developed in eastern Oregon in the northwestern United States.
Although the rate of growth in U.S. wind installations slowed in 2010, the industry continues to expand. This is largely thanks to a federal tax credit that makes renewable energy more competitive with coal and other fossil-fuel sources, which long have enjoyed federal subsidies.
Thirty-seven states now have commercial wind stations within their borders, the American Wind Energy Association (AWEA) reported recently. Iowa, with 20 percent of its power coming from wind, leads the pack.
In the last five years, 400 manufacturing plants have been built or expanded to produce wind energy equipment, said AWEA Executive Director Denise Bode “We’re going to be making a whole lot more affordable, homegrown electric power in the years to come,” she said.Copyright 2011 Federal Information and News Dispatch, Inc. State Department Documents and Publications
While increasing population, rural development and overall increasing energy consumption is good news for utility companies, there is one technological movement underway that will hurt their revenue steam in the future. And that is the microgrid’s potential to sell electricity back to ‘macrogrid’. Check out my new 3 minute audio on the global microgrid market here: http://www.sbireports.com/Microgrids-2835891/
Exciting growth in the world of microgrids is setting the market up for a secure future within the world’s electricity infrastructure network. In 2010 the world market for microgrids reached $4.14 billion, up 15% from the previous year. This exuberant growth is expected to continue for at least a few decades, as the need for microgrids grows and as interest remains high.
A large variety of microgrid types are available to fit into every nook and cranny of the world’s electrical network, including: smart microgrids for those that are energy savvy; islanded, decentralized or remote electrification microgrids for hermit villages and islanders, hybrid microgrids for the more creative types and rudimentary microgrids for those that are thrifty or economically challenged. Microgrid installations around the world include everything from diesel generator-based rural electrification projects that supply electricity to small remote villages to large, futuristic cities and surrealistic theme parks that rely on the newest microgrid technologies.
High interest in microgrids is helping to break a few of the barriers to microgrid market growth. Over the past decade, significant obstacles have stood in the way, such as a meager regulatory base and an array of less than perfect technologies. Government bodies and other organizations with investments in microgrid technologies have been working to develop microgrid guidelines; while universities and other research centers around the world are bent on developing methods and technologies to improve microgrid schemes.
North America currently holds the largest piece of microgrid pie, staking a near 74% claim of the market in 2010. While the country is expected to continue to expand its microgrid ventures, it will lose at least a small slice of pie to other countries’ quickly growing share. Asia has already begun to compete with its western cousin and is heading towards a near doubling of its market share by 2020.
Overall the microgrid market is going to be exciting to watch. Its growth and trajectory will likely flow down already visible channels, as well as in unexpected directions, as the world tackles its electricity issues, and as the microgrid infiltrates the seemingly omni-potent, but aging macrogrid.
-SBI Research Analyst, Nana Lapham
New York, January 26, 2011 —The world microgrid market reached $4 billion last year with North America claiming 74% of 2010’s total industry share, finds market research publisher SBI Energy. Fueled by rapidly growing solar, renewable energy and smart grid markets, the microgrid has become a viable solution to supply energy to local communities. Microgrid installations around the world include everything from diesel generator-based rural electrification projects that supply electricity to small rural communities to large, futuristic cities and theme parks using the newest microgrid technologies.
SBI Energy’s latest market study, The World Market for Microgrids, has identified a unique opportunity for marketers at U.S. military bases seeking reliable and secure energy. The majority of U.S. military bases are powered by public electrical grids, which in some instances lead to as many as 300 power outages per year. These interruptions weaken military readiness and security. In the face of a terrorist attack or natural disaster, reliance on conventional energy supplies may be inefficient and may even be detrimental to military functions. Microgrid advantages in this case are clear: in the face of a massive power outage, the microgrid is able to separate from the main utility grid—if it is not already islanded —and keep vital facilities and operations powered.
As U.S. Representative Martin Heinrich of the 1st Congressional District of Mexico says, “Microgrids provide a more secure infrastructure for our military–both here and abroad. Growth in the military microgrid segment will rise by 375% from 2010 to 2020. Total market value in this segment is projected at $1.6 billion in 2020, up from $.33 billion in 2010 and electrical output will increase from .13 GW in 2010 to .60 GW in 2020.
As the microgrid expands its realm of operations in commercial, military and industrial segments, the costs associated with implementation are decreasing. Installation price can vary wildly depending on a number of factors–including the size, scope and technological advancement of a specific project. From solar–hybrid implementations in small remote villages to giant undertakings such as the $4 billion Crystal Island project, the future will become less individualized and more mass, factory built–greatly reducing costs associated with implementing a microgrid.
The World Market for Microgrids provides an in–depth analysis of the economic drivers and challenges and key social and political factors facing the microgrid industry. The market study also reports historical market and growth in dollars (2006 – 2010), broken down into five market segments, as well as future forecast data through 2020. Furthermore, a new chapter segment featured in all 2011 reports examines the current and upcoming employment opportunities that will be created as microgrid manufacturing and installations ramp up. Microgrid activity around the world, including information on the overall electricity situation and specific microgrid projects, is examined, as are the company strategies of 15 leading industry manufactures and new technologies. For more information, please visit: http://www.sbireports.com/Microgrids-2835891/.
About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services. To learn more, visit www.sbireports.com. Follow us on LinkedIn, Facebook, Twitter and Tumblr.
Two years after the enactment of ARRA, indications are strong that the Recovery Act is aiding the U.S. in attaining its goal of doubling renewable generation capacity over the next two years.
Renewable energy has taken hold in the U.S. with installations of new wind turbines and solar panels occurring regularly. The U.S. is making significant progress toward attaining its goal of doubling renewable generation capacity over the next two years, due in large part to support from the American Recovery and Reinvestment Act (ARRA) introduced in 2009.
ARRA investments are funding research projects to develop next generation renewable energy technologies, such as solar thin films and new wind turbine designs that will create a cost competitive alternative to electricity currently generated from coal or natural gas power plants while simultaneously creating long-term economic market growth. Consider the following examples:
· Aided by ARRA investments, The Council of Economic Advisors (CEA) reports that domestic manufacturing capacity for solar photovoltaic (PV) modules is forecasted to grow from <1 GW per year in 2008 to nearly 4 GW per year in 2012.
· ARRA investments are accelerating the rate of innovation in solar photovoltaics and according to the CEA, the new technology will drive down the costs of solar panels over the next five years; possibly by 50%.
· U.S. wind power capacity grew 40% in 2009 over the prior year, despite weak economic and investment conditions. In July 2010, the CEA reported that ARRA was responsible for approximately 6 GW of wind capacity installation that might not otherwise have occurred in 2009.
· U.S. manufacturing capacity for components such as gearboxes, generators, and large casted steel parts, has lagged behind actual demand. The 48C Manufacturing Tax Credit program awarded $346 million in tax credits to 52 wind manufacturing projects to facilitate additional U.S. manufacturing capacity to ensure the U.S. is able to supply a growing domestic market through domestic production.
· An April 2010 U.S. Geothermal Energy Association (GEA) survey indicated a 26% increase in new projects under development in 2009 and concludes that the stimulus funding played an important role in propelling geothermal growth amidst recessionary economic conditions.
Overall, the Energy Information Administration (EIA) estimates that U.S. renewable generation capacity will increase 32% more than without ARRA support – reaching 155 GW in 2015. Two years after the enactment of ARRA, indications are strong that the Recovery Act is aiding the U.S. in attaining its goal of doubling renewable generation capacity in the next two years.
New York, December 08, 2010 — The Wall Street Journal reported on Monday, December 6, 2010 that a “framework agreement” has been signed between French President Nicolas Sarkozy and Indian Prime Minister Manmohan Singh. The agreement will allow French state–owned Areva, to sell nuclear reactors to India’ Maharashtra state complete with nuclear fuel for 25 years.
Manufacturers of nuclear reactor components, such as Areva, are entering a pivotal period as the new landscape of global nuclear energy production takes shape. Nations like India who are committed to constructing next-generation nuclear facilities will rely on these manufacturers to provide high quality products that foster a safe, secure, and enduring environment for energy production.
“India’s shortage of fossil fuels is driving its assertive investment in nuclear technology. Their government has given approval for construction of new nuclear reactors using indigenous technology,” says Shelley Carr, publisher of SBI Energy, a market research firm.
India’s dedication to developing nuclear electricity as a cleaner alternative to coal–fired power has nations–the United States, for example–fiercely competing for a piece of its lucrative opportunity. According to Nuclear Energy Technologies Worldwide: Components and Manufacturing, a study by SBI Energy, India has six reactors currently in manufacturing and ten additional units planned through the next decade. Of this ten, six will be supplied from France as part of the newly signed agreement. Local media reports the value of the first two French reactors is estimated at $9.4 billion. SBI Energy’s study forecasts the total nuclear energy installed capacity in India will accelerate its domestic production of reactors and grow at a compound annual growth rate (CAGR) of 13% through 2013 to reach 39.4 MWh.
SBI Energy’s Nuclear Energy Technologies Worldwide: Components and Manufacturing report covers several components of the nuclear energy technology industry around the world including the overall market value of nuclear energy technology manufacturing. The report examines shipments, imports and exports, as well as the economic and market trends driving the nuclear technology industry. For more information, please visit: http://www.sbireports.com/Nuclear-Energy-Technologies-1926673/.
About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services. To learn more, visit www.sbireports.com. Follow us on LinkedIn and Twitter.
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This November, I asked Scott Smith, Vice President of Global Technical Architecture for meter data management company eMeter Corporation how utilities would handle the influx of data coming their way after smart meter installations.
According to Smith, finding the data storage and communications hardware to provide the necessary functions is not the biggest obstacle facing utilities in a smart meter project. The telecommunications industry has already covered the difficulties with high speed data transmission and large data storage requirements far exceeding what is needed.
The challenge, says Smith, is that utilities have to move away from the “historical model” of thinking about Smart Grid implementations from a hardware perspective. Instead, utilities need to be thinking about Smart Grid projects from a marketing (i.e. consumer relations) standpoint and from a business process perspective.
For comparison, let’s look at the smart meter rollouts of Toronto Hydro in Ontario, Canada and Pacific Gas & Electric Co. (PG&E) in California.
Toronto Hydro focused on developing its business plan around customer communication, implementing a time-of-use pricing model and effective use of the Smart Grid data. The strategy won the company three awards, including the Outstanding Achievement in Marketing and Communications Award from the Association for Energy Service Professionals in May 2010 for its smart meter project.
On the other hand, PG&E simply dealt with its smart meter project from the beginning as an infrastructure change. As a result, the lack of customer outreach has caused a customer relations nightmare for the utility. This has resulted in thousands of complaints and even a lawsuit in Bakersfield that claimed the new smart meters were not reliably reporting actual electricity use.
According to Smith, the difference is not that Toronto Hydro implemented a better system technologically, (although to be fair eMeter is the MDM for the Toronto Hydro Smart Grid project). The difference is that Toronto Hydro took pains to ensure that the business process and customer relations were in place to properly handle the transition to implementing its Smart Grid technologies before the first smart meter was even attached to a house.
-By Norman Dechampes, analyst for SBI Energy and author of ‘The Smart Grid Utiltiy Data Market’
Why aren’t alternative fuels taking off more quickly? It’s a valid question given the large quantity of proposals for massive solar and wind turbine installations in the U.S and around the globe this year. Meanwhile, we hear little news of new alternative fuels projects. The answer, according to a new market study, Specialty Pipelines for Renewable and Alternative Energy Substances, lies in the transportation logistics.
Crude oil, finished fuels, and natural gas pipelines crisscross the United States and the globe. But in many cases, these existing pipelines are not suitable for the transport of sensitive biofuels. The chemical disposition of biofuels is substantially different from conventional fossil fuels. For example, the corrosiveness and water solubility of ethanol makes it incompatible with most existing pipelines.
Industry concerns also persist regarding the contamination of jet fuel, which has strict quality control, by residual biodiesel left in the pipeline. Current pipeline deliveries of biodiesel remain limited to B5 blends through pipelines that do not traffic jet fuel.
An additional inhibiter to immediate alternative fuel success resides in the lack of existing pipelines in remote regions where Biomethane and biogas are produced. As a result, biofuels are largely transport by truck or rail, which drives up costs and limits how effectively biofuels can be brought to market.
In order to support current and future alternative fuels development, producers and investors are looking towards specialty pipelines for their distribution needs. As a result research publisher SBI Energy forecasts that the market for specialty pipelines is expected to increase nearly 4-fold between 2010 and 2015. Substances carried in specialty pipelines - carbon dioxide, ethanol, biodiesel, and biomethane/biogas - have found market growth due to high petroleum prices, the development of enhanced oil recovery methods using carbon dioxide injection, carbon capture and sequestration system development, the presence or potential for carbon emissions penalties in several world markets. The fastest growing segment, Ethanol, will expand significantly as construction proceeds on dedicated ethanol pipelines, creating a market in excess of $1,000 million by 2014. The projected 2011-2015 CAGR for this market is 27.2%.