Ingeteam, global leader in power electronics and electrical engineering, in consortium with SAFT, the world’s leading battery manufacturer, and Corex Solar, have signed a multi-million euro contract for supplying the French CRE’s (Commission de R

Simo, the first commercial wind farm equipped with Gamesa’s 4.5 MW wind turbines, has been commissioned in Finland, where the company has installed four G128-4.5 MW machines for TuuliWatti. Specifically designed to withstand low temperatures, these four wind turbines in Simo are the most powerful turbines ever installed in Finland, Gamesa reports.

Gamesa, a global technology leader in wind energy, has celebrated the fourth edition of its Patents and Inventors Competition, which is designed to acknowledge its employees’ efforts to develop innovative new technology with the potential to set the company’s technology offering apart from the competition.

Concerning the installed wind power capacity, China is still world leader. But the United States has more wind energy supplying its electrical grid than any other country, including China.

In 2013, the United States produced over 167 billion kWh of wind energy, whereas China produced and delivered 138 billion kWh, according to a new analysis from U.S. wind pioneer James Walker. It relies on data from the U.S. Department of Energy’s Energy Information Agency, the International Energy Agency, the Global Wind Energy Council, and the American Wind Energy Association (AWEA). As of September 2014, there were 46,600 wind turbines operating in the U.S. with a total generating capacity of 62,300 MW – enough to provide power for 15.5 million average American homes. A total of 1,254 MW have come online so far in 2014 and there is currently 13,600 MW under construction across 105 projects.

Until recently the international standings in wind energy production have been difficult to establish because of missing data, but it can now be revealed that the U.S. holds roughly a 20 % world lead in total wind-generated electricity. That’s although China pulled ahead of the U.S. several years ago in installed wind turbine capacity, the theoretical maximum that all turbines would produce if running full-out, in which it holds roughly a 50 % lead.

“America is blessed with outstanding wind resources. We invented utility-scale wind farms, and by investing in building and fine-tuning them here in the U.S., we now have some of the best infrastructures ever built in this country,” said Walker. “This is a victory for American productivity, in an industry that began here and has rapidly evolved with the ingenuity of U.S. inventors, engineers, manufacturers, and developers.” The American wind energy industry has built a new domestic manufacturing sector with 500 factories in 43 states, attracts an average of US$ 15 billion a year in private investment into the U.S. economy, and supports an average of 73,000 jobs.

Over US$ 120 billion worth of U.S. wind projects have been installed since the year 2000. “We have built an industry that’s revitalizing local and rural economies in the U.S., attracting US$ 15 billion a year in private investment into our economy, and we are leading the world in production,” said AWEA CEO Tom Kiernan. “We have common-sense federal tax policy to thank for this production, the Production Tax Credit, which only rewards results. And being number one in the world is the best result you can ask for.”

In addition, the U.S. wind energy industry has been able to lower its costs by more than half in the last five years, according to the recently released annual analysis of the levelized cost of energy by Wall Street advisory firm Lazard. In addition to the savings on shipping from close-by U.S. factories, investments in taller towers, longer blades, improved gearboxes, and transmission lines, and over 30 years of experience in siting and operating wind turbines to maximize their power output, have helped drive down costs and improve productivity.

Walker is a past President of AWEA and now Vice Chairman of EDF Renewable Energy, a leading developer of wind energy. He served as CEO from October 2002 until March 2005, and was subsequently responsible for management of the company’s portfolio of over US$ 1 billion of operating wind projects.

Katharina Garus

ST. PAUL, MN.—(eSolarEnergyNews)—Those who happen to know one of the 40,000 3M workers across North America can now power down their own utility bills using 3M’s hefty discount on solar panels.

3M is expanding its revolutionary employee solar program to include friends and family, significantly broadening the number of homeowners across the U.S. and Canada who’ll be able to get solar at a reduced rate and take advantage of clean, renewable energy.

«We are so thrilled to give our friends and families the first opportunity on such a progressive initiative,» said Gayle Schueller, 3M’s vice president of global sustainability, who announced the program’s expansion before hundreds of attendees at the annual Net Impact sustainability conference this weekend in Minneapolis. «Employee feedback has been robust, and we are eager to share this tremendous benefit with others.”

The Solar Community Initiative, launched in October in partnership with Geostellar, the World Wildlife Fund and other major companies, offers a 25-35 percent discount on solar photovoltaic systems thanks to the bulk purchasing power of prospective buyers. The average homeowner saves 30 percent on their monthly utility bills, and can have panels installed for zero money down with financing through Geostellar.

So far, the program has been met with excitement at 3M. In just three weeks, more than 1,000 employees have done initial assessments for solar, and about a dozen have sealed the deal to have solar installed in their homes.

And it’s this level of enthusiasm that is behind the expansion of the program. To sign up, all friends and family would need to do is visit geostellar/go/3M for an assessment. Once their information is entered, they will receive a proposal, but they would need to provide the 3M promo code to receive the special discount.

Between 3M, Cisco Systems and Kimberly-Clark, the goal is to get 1,000 employees to take part in the initiative. In sum, there are about 100,000 employees targeted between the companies, so the companies, collectively, are looking at an adoption rate of around 1 percent.

The initiative aims for widespread adoption of solar energy across all 50 states and several Canadian provinces. If the companies achieve the goal of getting 1,000 employees to sign on, more than 74,500 metric tons of carbon emissions would be avoided each year – the equivalent of taking more than 15,000 cars off the road.

The results of this research are discussed in an article published in Nature Photonics by researcher and lead author Riad Nechache.

The INRS research team discovered that by changing the conditions under which a thin film of these materials is applied, the wavelengths of light that are absorbed can be controlled. A triple-layer coating of these materials—barely 200 nanometres thick—captures different wavelengths of light. This coating converts much more light into electricity than previous trials conducted with a single layer of the same material. With a conversion efficiency of 8.1% reported by Nechache and his coauthors, this is a major breakthrough in the field.

The team currently envisions adding this coating to traditional single-crystal silicon solar cells (currently available on the market). They believe it could increase maximum solar efficiency by 18% to 24% while also boosting cell longevity. As this technology draws on a simplified structure and processes, as well as abundant and stable materials, new photovoltaic (PV) cells will be more powerful and cost less. This means that the INRS team’s breakthrough may make it possible to reposition silicon PV cells at the forefront of the highly competitive solar energy market.

BAODING, CHINA—(eSolarEnergyNews)— Yingli Green Energy, the world’s largest vertically integrated photovoltaic (PV) manufacturer, today announced that its wholly-owned subsidiary, Yingli Green Energy Spain, S.L.U («Yingli Spain») has supplied over 5 megawatts (MW) of solar panels for Bolivia’s first solar power plant. Isotron, a subsidiary of the energy company Isastur and a leading global PV project developer and engineering, procurement, and construction (EPC) services provider, installed more than 17,000 solar panels in the 5 MW project, which is Bolvia’s largest solar project and the world’s largest storage-equipped hybrid PV-diesel project.

As Bolivia’s first and largest solar power plant, the 5 MW system is expected to deliver clean energy to more than 49,000 people. It occupies 15 hectares (Ha) of land near the remote city of Cobija in the state of Pando, which has relied on diesel power generation because it is not connected to Bolivia’s national utility grid. EGSA (Empresa Electrica de Guaracachi S.A), a subsidiary of ENDE (Empresa Nacional de Electricidad),  carried out preliminary studies and basic engineering for the project.

The new solar power system incorporates both battery storage and diesel generation to ensure continuous access to electricity. It is expected to generate 7,500 megawatt-hours (MWh) of clean power each year, meeting approximately 50% of regional demand.  The power plant will offset more than 1.9 million liters of diesel fuel, which will result in significant energy cost savings for the Bolivian government.

«We are pleased to complete this project in partnership with Isotron of Bolivia, one of our long-term strategic partners. We believe this is a landmark reference project in Bolivia and globally due to its large scale, the combination of traditional power generation and energy storage with PV, and the number of connected consumers,» commented Mr. Fernando Calisalvo, Managing Director of Yingli Spain.

«Yingli proved to be a committed partner at every stage of this innovative project, which promises to be one of Latin America’s most influential and forward-looking energy facilities. We look forward to working with the Yingli team in the future, especially as PV becomes an increasingly important element of the energy mix in Bolivia and beyond,» noted Mr. Jose Antonio Alvarez, an ISASTUR Group Board Member.

«As Bolivia’s first large-scale solar power system, we expect that this project will have a transformative impact in the region. Thanks to the combination of solar PV, energy storage, and diesel fuel generation in a single large-scale power plant, thousands of individuals in Bolivia now have access to reliable, clean electricity, which opens up dramatic possibilities for business development, education, and community empowerment,» commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

Renewable energies are an important element in the fight against global warming. Many countries around the world have set up ­support mechanisms for renewables. However, this support is temporary by nature and governments want renewables to ultimately become competitive with conventional energy sources. Providers ­therefore need to think about which products they can offer consumers and businesses at which prices and how they need to communicate their offers in order to ­make them attractive. This article looks at consumer preferences derived from international research and how electricity products in the market meet these preferences. Germany is one of the most developed markets for green electricity, but our analysis will ­also include facts and examples from other European ­markets such as France or the United Kingdom.

Consumer preferences

In the last 20 years researchers from many countries have explored consumer preferences and willingness to pay for green electricity. What are the factors that drive a consumer to purchase a green electricity ­product and possibly also to pay a price premium for it? First of all there are sociodemographic variables such as income or education. Then there are psychographic variables such as attitudes concerning ­environmental protection. While these two categories might serve providers in targeting the most ­promising customer groups, it is even more interesting for them to know those factors that can be influenced by ­designing a green electricity product and tailoring communication to customer preferences. These ­factors can be modelled as customer benefits. Which benefits can consumers draw from when subscribing to a green electricity product? These benefits can be divided into two categories: utilitarian benefits and psychological benefits (see figure 1)

Utilitarian benefits (left branch in the figure) can be divided into benefits that consumers derive from attaining their final goals, such as environmental ­protection, reducing CO₂ emissions or furthering ­energy production in their region, and benefits that arise from the perceived effectiveness of the consumer’s choice. The perceived effectiveness can be increased by information that the provider gives on the environmental impact of a green electricity product or by the provider promising that a certain percentage of the energy corresponding to the product is produced in newly erected renewable power plants. Labels can also increase the perceived effectiveness.

Besides these utilitarian benefits, consumers can also profit from psychological benefits. Consumers might not always be aware of these benefits, but they can be demonstrated in choice experiments and certainly influence consumers’ choices. One of these psychological benefits is the so-called ‘warm glow’, i.e. a feeling of moral satisfaction derived from a consumer’s awareness that they are doing something good for the environment. Consumers experience this ‘warm glow’ irrespective of others knowing about their choice. This is quite different for the second category of psychological benefits that come from what marketing researchers call ‘conspicuous consumption’. This benefit is caused by the consumers letting others (whose opinion is significant for them) know about their choosing a green tariff and enjoying an increased social image. The third psychological benefit is called ‘virtual nature experience’ and consumers experience it when looking at pictures of nature in the providers’ communication.

Marketing green electricity in Europe – some examples

Let us first of all look at some of the European economies, taking a macro view. In Germany, as the most populous country, providers in 2011 already sold almost 34 TWh of green electricity and 12 % of all households had subscribed to a green tariff by 2012. In the UK, this number is below 2 %. In ­Finland, the percentage is also in the low single digits. Looking at the range of choices, consumers in Germany can choose between literally thousands of tariffs; a resident of Munich, for example, can choose between more than 100 green tariffs alone. While there are a number of green tariffs in the UK market, there is currently not a single tariff certified under the renewable energy scheme that is ­available for new domestic customers. However, there are some that are still available for existing customers. Consumers in France can choose between nine green electricity providers operating nationwide. A resident of Marseille, for example, can choose out of 19 green tariffs, ten of which offer 100 % green electricity and nine a green percentage between 10 % and 26 %.

So, apart from Germany, consumers’ options are not very numerous. But apart from the range of ­choices, do the products offered relate to potential customer benefits as already outlined above? Do the products contribute to a reduction in CO₂ emissions, are they sourced regionally, do they foster new  installations and are they based on PV or wind power plants?

For Germany the picture is very clear; most of the green electricity sold in the country stems from old Scandinavian hydropower plants (see figures 2 and 3 below), i.e. German utilities buy RECS from hydropower plant operators in Norway, Sweden or Austria and upgrade their electricity to ‘green’. In the UK, not surprisingly, hydropower is also rather dominant due to its low cost. Besides domestic hydropower, UK tariffs are, like in Germany, based on Scandinavian sources. In France it is often not easy for customers to find out the origin of the RECS, but nationwide providers base their offers mostly on hydropower. Out of the ten 100 % green tariffs a resident of Marseille can choose from, four are purely based on hydropower, one is based on 95 % hydropower and for four the source is not disclosed. Only the Lampiris tariff, with a hydropower content of 26 %, relies more on wind power and others.

The practices in Germany as well as the UK and France run counter to consumers’ goals of increasing the share of renewables by furthering new installations. Most of the hydropower plants have been ­running for decades. Nor do these products relate to consumers’ desires to support regional production. Plus, hydropower is not as popular as PV or wind. However, looking at providers’ websites in Germany (we have performed an online content analysis of around 600 green tariffs in Germany), they do address these goals. In the providers’ communication, issues such as environmental protection or climate protection rank highest. Regional production is also frequently on the list of communicated benefits. When we look at perceived consumer effectiveness, providers mention the support of new plants and have their products labelled. Among the psychological benefits, German utilities address the ‘warm glow’ and ‘virtual nature experience’ but not ‘conspicuous consumption’.

In the UK, double counting has been a frequently mentioned concern. It means that providers sell green energy to consumers but also fulfil their renewable obligation (RO) for the same amount of energy and even may sell the Levy Exemption Certificates (LEC) that they receive for the renewable electricity they produce. To avoid double counting, providers would have to hold the equivalent amount of Renewables Electricity Guarantee of Origin (REGOs) and retire both ROCs (over and above the statutory requirement) as well as LECs when selling green electricity. According to a survey by Consumer Focus, only three suppliers in the UK fulfil these conditions. Another characteristic of the UK market is that the existing green tariffs often combine green sourcing (from renewables) with green funds (financial support for renewable projects) and, less frequently, carbon offsetting (compensating emissions with CO₂ savings elsewhere in the world).

Another issue is that in Germany, the UK and France, providers leave consumers under the impression that they can support renewables and protect the environment while paying less for electricity than with their current supplier. On many providers’ websites price is a frequently mentioned benefit. But these low prices are only viable as long as providers base their offers on cheap RECS from ­hydropower with more or less no environmental benefit.

We have to conclude that many products in the European electricity markets do not contribute to consumers attaining their environmental goals by ­subscribing to a green tariff. But in providers’ communication protecting the environment and the climate ranks quite high. There is an obvious contradiction between consumer preferences and providers’ ­communication on one hand and the reality of their product offerings on the other. And there is another problem; if providers do not retire CO₂ emission ­certificates corresponding to the amount of green electricity sold, the total number of certificates in the market does not change and therefore other players in the market can emit all the more CO₂.

The tasks ahead

How can consumers’ environmental goals be linked more closely with green electricity products? On the state level, the necessary measures depend on the systems in place and differ between countries.

On the provider level, it would be beneficial to ­include more electricity from new installations in the portfolios. However, this will increase costs and put electricity suppliers in a situation where they have to convince their customers to pay higher prices. While studies from many countries have indicated that ­consumers are indeed willing to pay a premium for green energy, customers have grown accustomed to low or even zero premiums due to the providers’ above-mentioned ‘it is cheap and green’ communication strategy.

But consumers can also do something. Although the environmental effects of many green electricity products are doubtful, there are always a few tariffs that contribute to the construction of new plants. ­Labels can help to find these tariffs. However, these products will not be the ones where consumers can protect the climate and at the same time save ­money.

 Carsten Herbes

Further reading:

Herbes, Carsten und Ramme, Iris (2014): “Online marketing of green electricity in Germany – a content analysis of providers’ ­websites”, Energy Policy 64 (6): 44-47; DOI: 10.1016/j.enpol.2013.10.083

Information on the author:

Carsten Herbes is a professor of international management and renewable energy at Nuertingen-Geislingen University (NGU), ­Germany and Director of the ‘Institute for International Research on Sustainable Management and Renewable Energy’. His research interests include marketing and acceptance of renewable energies, community energy projects, biogas and Japanese business and economy. Before joining NGU he worked as a management consultant and as the CFO of a bioenergy company.

This article has been published in Sun Wind Energy issue 10/2014.

BayWa r.e. Wind, LLC announced today that it has sold its equity stake in the 19.8 MW Brahms wind project, located in Curry County, New Mexico, to Macquarie Infrastructure Company (NYSE: MIC) an affiliate of the Macquarie Group. The balance sheet funded project was placed in service last February and the Company announced the closing of tax equity with a Union Bank affiliate last month.