SBI Energy: Market Insights, Opportunities &Trends

As nuclear power faces greater scrutiny in Japan and other nuclear-reliant countries such as Germany and the United States, equal focus has been brought to the central role that natural gas plays in the Japanese grid and elsewhere.

The lost reactors at the Fukushima Daiichi facility represented over 4 GW of capacity for the region. Other reactors at the Fukushima Daini facility, representing yet another 4 GW of capacity, and will be likely inoperable for over a year. This means the regional utility, TEPCO, and other utilities in northeast Japan must now turn to alternative baseload power sources.

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(Source: sbienergy.com)

The World’s Nuclear Energy Technology Renaissance: A Market Analysis - In Wake of Japan’s Nuclear Accident

On March 11, 2011 an 8.9 magnitude earthquake hit Japan; one hour later a tsunami hit the coast, causing massive flooding and destruction. Ten of Japan’s 54 nuclear reactors were shut down due to the earthquake and the resulting tsunami; while four of the Fukushima Daiichi reactors succumbed to actual damage, inciting international attention. What are the new industry forecasts and values? And how will the market recover long term?

(Source: sbienergy.com)

Wind Power Becoming Competitive with Coal

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. source: Venturebeat.com

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.

(Source: pennenergy.com)

Expanding Military Interest in Microgrid Technology Fuels $4 Billion Industry

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. Photo: Slendidaparna.com

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.

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Two Years Later, the Positive Influence of ARRA Investments Cannot Be Debated

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.

Photo: treehugger.com

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.

-SBI Energy

(Source: sbienergy.com)

Energy-Hungry India Enters Agreement with France for Nuclear Reactors and Fuel

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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Recovering Nations Increasingly Count on Liquefied Natural Gas as Critical Fuel in Production of Power and Heat

Population growth and economic growth are key factors driving increased demand for energy over the next five years. As population increases, the requirement for institutional services including infrastructure, government and healthcare along with potential demands for various commercial services also increases. In a dynamic twist on the classic domino effect, these increases will lead to more industrial activity such as manufacturing, mining and construction, transportation and the requirement for and ability to afford increased commercial and retail services, larger homes and more energy using appliances and equipment, all of which leads to rising energy requirements. Economic prosperity dictates the degree to which these requirements and potential demands are met.