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The UK’s Environment Agency is warning the public to prepare for a higher risk of flooding due to climate change.
The national body has launched a new Flood Action Campaign to help raise awareness of the risks and provide advice on how to respond to flooding when it happens.
It follows a pattern of severe flooding which has become more frequent and intense in recent years. The Met Office, the UK’s national weather service, has highlighted how 9 of heaviest rainfalls over the past 100 years have occurred since 2000.
These includes a series of harsh storms which have caused over 36,000 homes to be flooded across the country between 2012-2015. Coastal surges, higher sea levels and unprecedented amounts of rainfall are now becoming commonplace in different parts of the UK. December 2015, for example, was the wettest month ever recorded.
The new campaign includes a tool to search whether your home is in a high risk area and tips to reduce impacts. These include switching off your energy supply, preparing a medical bag and avoiding driving through flood water.
The agency is also offering a free warning service to alert people of dangerous floods when they occur.
Sir James Bevan, Chief Executive of the Environment Agency, said: “Climate change is likely to mean more frequent and intense flooding. Floods destroy – lives, livelihoods, and property.
Our flood defences reduce the risk of flooding, and our flood warnings help keep communities safe when it threatens. But we can never entirely eliminate the risk of flooding. Checking your flood risk is the first step to protecting yourself, your loved ones and your home”
The Environment Agency estimates that in England alone there are 5.2 million properties at risk of flooding. This is out of a total 27 million households across the four nations of England, Wales, Scotland and Northern Ireland.
Photo: Rose and Trev Clough/CC
India has been announced as this year’s hosts of World Environment Day on 5th June.
The global celebrations will be used to raise awareness of plastic waste and find ways to reduce the prevalence of single-use plastics.
The news was made today by UN Environment and India’s Environment Ministry in New Dehli.
Dr. Harsh Vardhan, India’s Minister for Environment, Forest and Climate Change, commented: “India is excited to host the World Environment Day this year. Indian philosophy and lifestyle has long been rooted in the concept of co-existence with nature. We are committed to making Planet Earth a cleaner and greener place”.
World Environment Day was established by the UN in 1972 to raise environmental awareness and action. Last year’s day, led by Canada, had the theme of ‘connecting people to nature’.
As part of its duties as hosts, India will organise and lead initiatives around the country on plastic waste and clean-up. This will include activities in public spaces, national reserves, beaches and forests to help drive national interest in the issue.
Erik Solheim, Head of UN Environment said at the announcement on Monday that India will be a “great global host”.
“The country has demonstrated tremendous global leadership on climate change and the need to shift to a low carbon economy, and India will now help galvanize greater action on plastics pollution”
“It’s a global emergency affecting every aspect of our lives. It’s in the water we drink and the food we eat. It’s destroying our beaches and oceans. India will now be leading the push to save our oceans and planet”, he added.
UN Environment states that India has the highest recycling rates in the world, and is well-placed to help accelerate changes to solve plastic pollution. It’s estimated that 500 billion plastic bags are used every year around the world, and that 50 percent of the plastic we use is single-use.
Singapore has announced plans to introduce a new carbon tax from 2019.
The tax will initially be levied at $5 Singapore dollars ($3.8 US) on all facilities which produce 25,000 tonnes, or more, of greenhouse gas emissions each year.
Heng Swee Keat, the country’s Minister of Finance, made the announcement on Monday in the yearly budget proposals.
Agence France-Presse reported Mr Heng saying: "Singapore produces less carbon emissions per dollar of GDP than most countries"
“We intend to further reduce our emissions intensity to make a bigger effort to combat climate change."
“In doing so, we will take into account international climate change developments, the progress of our emissions mitigation efforts and our economic competitiveness…The economically efficient way to maintain a transparent, fair and consistent carbon price across the economy to incentivise emissions reduction", he added.
It’s estimated that 30-40 companies will be impacted by the tax, which contribute up to 80 percent of Singapore’s carbon emissions, according to The Straits Times. These are taken from the petroleum refining, chemicals and semiconductor sectors.
Despite its small size, no larger than a city, Singapore ranks 32nd in the world for carbon dioxide emissions, per capita, just behind Germany, according to data from the World Bank.
The decision to tax companies emitting 25,000 tonnes follows China’s own plans to launch a carbon market on companies producing more than 26,000 tonnes. However, China’s goal is to cover more than 7,000 companies which emit a total of 3 billion tonnes of greenhouse gases.
There are also government plans to help power companies and businesses to improve energy efficiency. Mr Heng announced an Energy Efficiency Fund which will prioritise funding towards projects which have greater reductions in emissions.
Photo: Sven Scheuermeier
US researchers have found that using drones instead of truck deliveries could reduce greenhouse gas emissions and energy use.
The academics, led by the Lawrence Livermore National Laboratory (LLNL) in California, flew commercial drones and modelled their energy use over distances of up to 4 kilometres within cities.
They found that drones consume less energy than delivery trucks, but that more warehouses may be needed as support.
The paper states: “Because of their small size, when solely comparing the energy use required per km of distance travelled, we find that electric drones are far more efficient than trucks, vans, larger gasoline drones, and passenger cars”.
Their results are published in the Nature Communications journal.
However, given that trucks can carry more packages and travel further distances means the results are not unanimous. Using larger drones for different sized packages could be the easiest solution to cut carbon emissions in the short term.
The issue is as pertinent as ever. Figures from the US Energy Information Administration show that transport has now overtaken the electricity sector to be the largest contributor of greenhouse gas emissions in the United States. Cars and trucks now account for 25 percent of all such emissions.
LLNL scientist Joshua Stolaroff and lead author of the paper, commented on its findings:
“A light package -- say, a pair of sunglasses -- flown by a small drone over a few miles, saves a lot of energy and greenhouse gas emissions compared to a delivery truck. But a larger package -- say, a computer monitor -- flown by a drone large enough to carry it, probably does worse than a delivery truck”.
However, there are ways to make current drones more efficient. Stolaroff points out that “charging drones only with renewable and low-carbon electricity would be the easiest way”.
“They also might find creative ways to deliver goods from existing retail stores rather than building additional warehouses. The bottom line is to pay attention to life-cycle impacts when designing both the drone and logistics network.”
Source: Nature Communications
Photo: Dose Media
The Church of England has marked the start of Lent by challenging Christians to use less plastic during the 40-day period.
To aid followers, the Church has created a calendar with tips for how they can cut the material out of their lives on each day of the festival.
The Lent Plastic Challenge includes suggestions such as giving up disposable cups, shopping more at local markets, using a bamboo toothbrush, and choosing natural fibres instead of synthetics.
Ruth Knight, the Church's environmental policy officer, said: "The Lent challenge is about raising our awareness of how much we rely on single-use plastics and challenging ourselves to see where we can reduce that use.
"It ties in closely with our calling as Christians to care for God's creation."
The church was partly motivated to promote the challenge on the back of the successful Blue Planet II documentary series, which detailed the scale of plastic waste in the world’s oceans. In a statement, the Diocese of London explained: “David Attenborough has recently brought to everyone’s attention the hideous damage being caused by our throwaway society to life in the oceans – where so much of our waste eventually ends up”
“Over 8.3 billion tonnes of plastic have been produced since the 1950s. That’s enough plastic to cover every inch of the UK ankle-deep more than ten times over. Just 9% was recycled”.
The Church is the latest major UK institution to advocate for using less plastic in recent months. The BBC, the Royal Family and Scottish Parliament have all made commitments to reduce their plastic intake. In addition, restaurants Wagamama, Pizza Express and J D Wetherspoons have all pledged to remove plastic straws from their outlets.
Photo: Stephen Radford
Scandinavia has long been known for its progressive tendencies, and this is particularly true when it comes to recognising climate change’s threats and opportunities.
New research has highlighted how the Nordic countries are also leading by example in the green finance market.
The non-profit organisation Climate Bonds Initiative has analysed progress made by Denmark, Sweden, Norway, Finland and Iceland in issuing loans which are ring-fenced to find solutions to climate change.
The Green Bond Market in the Nordics, released this week at a conference in Stockholm, shows that these countries are far ahead of the international community in the market.
While this north European region may be small in size, the data shows it punches above its weight, accounting for 6.7 percent of the entire global green bond market, and 18.5 percent in Europe as a whole.
The region’s dominance has been helped by strong climate change policies and regulations which require developers to factor in sustainability concerns.
2017 was also a particularly strong year for the Nordic region as new bond issuances reached 7.8 billion euros, more than 10 times higher than in 2013. The largest deal to date was set at 1.25 billion euros by Orsted, the Danish energy company.
Four of the five countries assessed also ranked within the global top 20 for the size and performance of their green bonds.
The money raised through these loans has been put into a range of similarly green sectors: 29 percent went into renewable energy projects, 20 percent on energy efficient buildings and a further 20 percent on low-carbon transport.
Climate Bonds Initiative CEO, Sean Kidney, commented: “Nordic nations have been at the forefront of green bond market development in Europe and worldwide, maintaining a presence in the Top 20 of issuing nations is a significant achievement.”
“Continued policy measures to promote environmental sustainability and low carbon development with support from institutional investors and stock exchanges can help maintain the momentum.”
“In combination with existing public sector green investment directions, more aggregation structures and sovereign issuance, a new phase of accelerated green finance could emerge between now and 2020.”
The report also estimates that the global market for green bonds could reach $300 billion in 2018, but that it needs to increase to at least $1 trillion by 2020 to adequately tackle climate change.
Source: Climate Bonds Initiative
The world’s first floating offshore wind farm has performed better than expected after its initial three months of operation.
The Hywind project, located 15 miles off the north-east coast of Scotland, consists of five turbines with a maximum capacity of 30 megawatts. Going at full pelt they can power 20,000 homes in the UK.
The project was built by Norwegian state-owned company Statoil, and has been operating since November.
The company has released figures this week that show during its first three months of operation the wind farm has generated an average capacity factor of 65 percent, i.e. it reached 65 percent of its maximum output for the whole winter period.
By contrast, a typical offshore wind farm has a capacity factor of around 45-50 percent during winter.
The floating wind farm had to survive brutal conditions in the North Sea with storms bringing wind speeds of up to 100mph and average wave heights of 8.2 meters.
"We have tested the Hywind technology in harsh weather conditions for many years and we know it works…It is very encouraging to see how well the turbines have performed so far. Hywind Scotland’s high availability has ensured that the volume of electricity generated is substantially higher than expected”, says Beate Myking, senior vice president of offshore wind operations in Statoil.
The developer sees great potential for building floating wind farms in places where fixed turbines can’t be built due to deep waters. It estimates that 80 percent of the world’s offshore wind resources lie in conditions of over 60 meters sea depth.
“We see great potential for floating offshore wind, in Asia, on the west coast of North America and in Europe. We are actively looking for new opportunities for the Hywind technology," says Irene Rummelhoff, executive vice president for New Energy Solutions in Statoil.
By developing more of these projects at scale Statoil hopes to bring the cost of the technology down to 40-60 euros per megawatt hour by 2030. This is where the current price of offshore wind has reached after sharp cost reductions were made in a short space of time.
"This is an ambitious, but realistic target. Optimised design, larger and more efficient turbines, technology development and larger wind parks will drive down costs, improve infrastructure and logistics," Rummelhoff said
Photo: Øyvind Gravås / Woldcam
A new report has found that the United States now sources almost one-fifth of all its power from renewable energy.
This figure has doubled in a decade with wind, solar and hydropower leading the charge. The findings come from the sixth edition of the Sustainable Energy in America Factbook, compiled by Bloomberg New Energy Finance (BNEF) and the Business Council for Sustainable Energy.
All renewable generation increased by 14 percent in 2017, thanks to increased amounts of available hydropower on the West Coast and very high levels of new build solar and wind farms. 23 gigawatts of added capacity from these technologies had their first full year of generation in 2017.
At the same time, traditional fossil fuel generation declined over the past year with natural gas down 8.1 per cent and coal 3 per cent. This progress has meant that carbon emissions in the power sector have fallen by 4.2 per cent year-on-year, which are the lowest level in 27 years, according to the Factbook.
The economic benefits of renewable energy have also become more apparent in the latest analysis. The low-cost of power means consumers have contributed a tiny 1.3 percent of spending towards electricity. In addition, the solar and wind sectors created 98,650 new jobs between 2015 and 2016, and in total now employ an estimated 475,000 people.
Jobs in the energy efficiency sector are also booming with a huge 2.2 million people involved in ensure homes and businesses are properly insulated.
“The performance is proof that clean energy delivers for the American economy,” said Lisa Jacobson, President of the Business Council for Sustainable Energy.
“The 2018 Factbook demonstrates that energy efficiency, natural gas and renewable energy are generating jobs and cleaner air while reducing energy use and boosting the productivity of the American economy. The focus of national energy policy in 2018 and beyond should be to further enhance and promote the continued growth of these clean energy sectors.”
The report also shines a light on the growing role of electric vehicles (EVs) in the US. Sales of the cars, including hybrids and battery versions, jumped by 23 per cent on the previous year, reaching 194,000. This helped the price of lithium-ion batteries plummet by the same amount.
“Sustainable energy deployment soared to record levels in 2017, cementing its role as a key contributor to U.S. energy,” says Rachel Luo, the lead BNEF author of the report. “At 18% of the power mix, renewable energy resources including hydropower are making nearly as large a contribution to U.S. electricity generation as the country’s nuclear fleet. Meanwhile, the falling price of newer technologies such as lithium-ion batteries is fueling the transformation of both the transportation and power sectors.”
World Sailing, the global governing body for the sport, has announced that it has been awarded with a coveted sustainability standard.
The international certificate, called ISO 20121, details the strict requirements an event has to meet to ensure sustainability. It covers all parts of event management, from caterers and lighting to stage building and participating teams.
The news means that it becomes the first international sports federation to be awarded with the important standard.
The body, which represents 144 member countries, announced the news yesterday on Twitter.
Dan Reading, World Sailing's Sustainability Programme Manager commented: "We wanted to receive third party certification to assure our stakeholders that we have a robust system in place. The whole process is based on continual improvement and World Sailing will be independently assessed by the British Standards Institute every six months to ensure that improvements are made”
The standard forms part of World Sailing’s ambitious Sustainability Agenda 2030, which it launched in November last year. The strategy includes plans to abolish single use plastics during its events by 2020 and reduce carbon emissions by 50 percent over the next six years.
The Agenda is linked to the UN’s Sustainable Development Goals, which sees sport as a “key enabler” to meeting the goals. World Sailing is also looking at gender equality in the sport, improving training and creating a framework to measure waste at all its events. The body has enlisted help from corporate partners Volvo, Rolex and SAP to meet its ambitious programme.
"Part of the process is to involve stakeholders in the creation of targets and we are still collecting feedback for our ambitious strategy which we will deliver over the next twelve years through our Sustainability Agenda 2030 consultation", Reading added.
Image Credit: World Sailing/Sailing Energy
New data from the Organisation of Economic and Co-operative Development (OECD) has shown that global taxes are currently insufficient to combat climate change.
The OECD’s latest report, Taxing Energy Use 2018, draws attention to how taxation around the world is not being properly used to reduce carbon emissions. One of the report’s key findings is that “almost all taxes are too low from an environmental point of view”.
Analysts looked at patterns of tax on energy use across different sectors in 42 countries between 2012 and 2015; these jurisdictions of high, middle and low income countries make up an estimated 80 percent of all global energy use.
They found that while some modest efforts had been made at taxing the use of greenhouse gas emissions, it was far from enough to encourage alternatives and tackle climate change. For example, only 0.3 percent of emissions which contribute to overall climate costs are covered by carbon taxes.
In particular, coal use is often left completely untaxed in many countries; an easy problem to solve and a quick win for reducing dangerous emissions. As the report makes clear, coal alone is responsible for half of all carbon emissions in the 42 countries assessed.
Currently, taxes have been largely confined to the road sector with a number of countries removing the historical low tax rates which diesel vehicles have to pay; however, these still remain too low in most places.
What’s more, as of 2015, a staggering 81 percent of emissions outside of road transport remained untaxed. A figure which since the signing of the Paris Agreement has, perhaps, started to change.
The OECD’s Secretary-General Angel Gurría commented on the report’s findings: “Efforts have been made, or are underway, in several jurisdictions to apply the ‘polluter-pays’ principle, but on the whole progress towards the more effective use of taxes to cut harmful emissions is slow and piecemeal. Governments should do more and better.”
“The damage to climate and air quality resulting from fossil fuel combustion can be contained, but the longer action is delayed the more difficult and expensive it becomes to tackle this challenge,” he added.
The United Kingdom’s Prince of Wales has spoken of the need for a “rallying cry for action” to stop the decline of the world’s coral reefs.
Speaking at the launch of the International Year of the Reef in London yesterday, the Prince said that coral reefs were “at a critical tipping point” and it was up to humans to ensure their survival or “fatally compromise our ability to safeguard the world's coral reefs and the species that will support future generations of humans and countless other species”.
The International Year of the Reef is a campaign designed by The Ocean Agency, working with both UN Environment and the International Coral Reef Initiative. It aims to draw attention to the immediate crisis facing coral reefs; some accounts say one-fifth has died off, while other estimates put the figure closer to 50 percent.
By building on a cross-section of support from governments, the public, businesses and the third sector, the campaign hopes that 2018 can scale-up action already taking place to prevent further die off.
Also speaking at the campaign launch, Erik Solheim, Head of UN Environment echoed the Prince’s sentiments by talking of “a critical juncture for the future of the world's coral reefs”. He said that climate change and ocean acidification threatened their very existence.
“For too long we have been taking much more from them than we have given back…These underwater ecosystems sustain a quarter of all marine life and gift more than half a billion people essential food and livelihoods”, he added.
UN Environment released figures to coincide with the launch which showed that funding to help protect reefs since 2010 has been inadequate to the task in hand, and commensurable to the benefits we draw from them. It estimates that coral reef ecosystems provide up $375 billion per year of economic benefit, through tourism, fishing and enabling new pharmaceutical discoveries. However, based on a survey of 83 countries, only $1.9 billion has been committed from 2010-2016 to conserve global reefs.
The Prince concluded his talk on a positive note, pointing out that the problem was not insurmountable: “the ocean has an astonishing ability to heal itself, if, if given the chance…we simply have to give it that chance”.
Image Credit: Clarence House
Newly released statistics show the world added 52 gigawatts (GW) of wind power capacity over the past year, indicating the global market’s continued appetite for clean power.
The Global Wind Energy Council (GWEC), an international trade body, released its official market figures today, which show strong growth in wind power across Asia, Europe and North America.
Total installed capacity now sits at 539,581 GW, a huge amount of renewable power enough to power entire countries.
China remained the dominant market with 19.5 GW of new capacity added, equivalent to the size of all the UK’s wind farms.
The US and Germany were also strong markets with 7GW and 6.5GW built in 2017. The UK was fourth with just over 4GW, although this could represent a rush to build projects before a subsidy deadline expired.
“The numbers show a maturing industry, in transition to a market-based system, competing successfully with heavily subsidized incumbent technologies”, said Steve Sawyer, GWEC’s Secretary General.
The US was a particularly strong market for corporate power purchase agreements (PPAs). Huge, well-known companies, such as Facebook, Apple and Nike, have made significant commitments to buy wind (and solar) power to meet their energy demands.
Tech giant Google recently announced it had signed PPAs worth 536MW across three Midwest states; Amazon also signed a 253MW wind power deal in October, its largest to date.
Mr Sawyer explained that innovations have helped wind power become a mainstream technology, with fossil fuel generation facing increasing pressure: “Wind is the most competitively priced technology in many if not most markets; and the emergence of wind/solar hybrids, more sophisticated grid management and increasingly affordable storage begin to paint a picture of what a fully commercial fossil-free power sector will look like”.
Wind power has also been helped by dramatic drop in prices, with disconnected markets in Morocco, India and Canada all coming in at $0.03 cents per kilowatt hour.
Elsewhere, in Latin America, there were growing achievements with 2GW of new capacity; Brazil and Argentina show promising strong signs of growth into 2018. In Africa, Morocco, Kenya and South Africa are the largest contenders in the market.
The top ten countries accounted for 89 per cent of new wind capacity
Image Credit: Johanna Montoya
While combined heat and power was the leading distributed energy resources choice for microgrids in 2017, solar is expected to lead by 2026
A new report from examines the market for microgrid enabling technologies (MET), providing global forecasts for capacity and revenue, segmented by technology and region, through 2026.
As one of many options to aggregate and optimize growing penetrations of distributed energy resources (DER), the microgrid platform allows for new levels of resilience and reliability, and can help organize mixed asset fleets of DER at the distribution network level. With the right set of control technologies, this platform can not only offer value streams to site hosts, but also provide value upstream to the larger grid. : According to a new report from , global cumulative MET implementation spending is expected to reach nearly $112 billion by 2026.
“Microgrids represent a key component of an emerging Energy Cloud focused on resilience and renewable energy integration,” says Peter Asmus, principal research analyst with Navigant Research. “Biomass, combined heat and power (CHP), diesel, fuel cells, hydroelectric, solar PV, and wind represent the lion’s share of potential revenue for microgrid implementation spending, and serve as the backbone of the microgrid value proposition: maximizing the value of onsite power generation.”
From a global perspective, CHP was the leading DER choice for microgrids in terms of capacity in 2017, with 655 MW deployed, followed by solar PV (392 MW), and then diesel (385 MW). By 2026, however, the MET landscape is expected to shift, with solar PV jumping to a commanding lead with 3,786 MW annually, followed by energy storage with 3,292 MW, according to the report.
The report, , analyzes the global market for MET, with a focus on eight DER: biomass, CHP, diesel, energy storage, fuel cells, hydroelectric, solar PV, and wind. The study provides an analysis of the market issues, including case studies, government incentives, and emerging standards, associated with MET. Global market forecasts for capacity and revenue, segmented by technology and region, extend through 2026. The report also examines the key technologies and hardware related to MET, as well as the competitive landscape. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Microgrid Enabling Technologies Market Overview, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
The biggest story in the global power sector is without doubt the rise of renewables, particularly the surge in wind and solar power deployment. Wind and solar capacity is ten-fold what it was a decade ago. Every few weeks seems to bring a new milestone, whether it’s a record low bid in an auction for new solar power or a record high level of generation from renewable sources.
The momentum behind renewables is very high, pointing to a virtuous circle of deployment that spurs innovation, cost reductions and job creation, which in turn allows for more deployment. But the source of this momentum needs to be well understood. In many cases, support policies and frameworks are giving renewables a strong push – globally, the IEA estimates that USD 750 billion in economic incentives have been provided to renewables over the past decade. While falling costs are reducing the need for financial incentives, policies are still essential to set the necessary conditions for growth.
Take solar PV. Recent auction results show that solar PV projects are offering impressively low prices – as low as 3 cents/kWh – in places where the resources are abundant and low-cost financing is available. But the fact remains that still only a small fraction of solar power is currently fully competitive without support. So, while solar made up one-quarter of all global capacity additions in 2016, nearly all of this growth relied on some form of government incentive.
Changes in policy have created boom-and-bust cycles in some markets, as investors respond to incentives when they are available, but then back off when the policies are weakened or withdrawn. In Italy, additions of solar capacity totaled 9.5 GW in 2011, but were already down by 85% two years later. A similar story occurred in 2009 and 2013 for onshore wind in the United States.
In China, the champion of global renewables, a planned cut in the feed-in tariff meant that deployment of wind fell sharply in 2016 compared with one year earlier. One of the big unanswered questions this year is whether something similar is in store for the Chinese solar market, which more than doubled in size in 2016. Another key question is how fast India and other countries can scale up their deployment of solar? Both depend on policy makers.
Policy changes are reflected in IEA scenarios
This contingency on policy is reflected in IEA analysis of the outlook for renewables. Each year, the World Energy Outlook produces new projections for all fuels and technologies, in different scenarios out to 2040. The main scenario, called the New Policies Scenario, is designed to show where existing policies as well as announced policy intentions will lead the energy sector. As policies change, so the projections change as well. For technologies like solar PV that rely on policy support, shifts in policy matter a great deal. The result of increased policy ambitions is clear in the latest WEO, where renewables account for 60% of all new power generation capacity additions globally over the next 25 years in the New Policies Scenario.
Back in 2008, China’s official solar target was 1.8 GW of capacity by 2020, a number that was reflected in the WEO projection in the New Policies Scenario. But, by 2014, Chinese policy had become significantly more ambitious and the target for solar had been raised to 100 GW by 2020. These changes were reflected each year in the WEO’s New Policies Scenario.
Indeed, IEA scenarios are not forecasts and should not be treated as such. They do not present outcomes that are necessarily desirable or recommended. Rather, they are designed to help policy-makers, governments and industry understand how energy policy choices will affect the energy future on the horizon.
In many countries, solar PV and onshore wind are within sight of full competitiveness and can stand on their own two feet – i.e. investments can be justified based on market revenues alone without the need for additional subsidy. This is a critically important step that was analysed in detail in the WEO 2016 Special Focus on Renewables.
But cost reductions for wind and solar, on their own, are still not enough to deliver the rapid decarbonisation of the power sector. Policies do still matter – market design and structural changes to the power system will be essential to ensure adequate returns for investment and to integrate higher shares of variable wind and solar power.
To better understand the gap between what government are doing and what needs to be done, the IEA also provides a long-term decarbonisation scenario that describes an energy pathway that would be in line with limiting the average global temperature increase in 2100 to 2°C above pre-industrial levels, a target that is a widely recognized benchmark utilised in global climate talks. Under that scenario, known as the 450 Scenario, wind and solar grow by 50% more than in the main scenario.
The rise of renewables also has profound implications for global energy security, air quality, access to electricity and economic development. Over the years, the WEO has delivered a consistent message: good policies matter for the continued success of renewables. Policymakers need to step up their efforts in this area.
Courtesy International Energy Agency
New solar PV capacity grew by 50% last year, with China accounting for almost half of the global expansion, according to the International Energy Agency’s latest renewables market analysis and forecast. For the first time, solar PV additions rose faster than any other fuel, surpassing the net growth in coal.
Boosted by a strong solar PV market, renewables accounted for almost two-thirds of net new power capacity around the world last year, with almost 165 gigawatts (GW) coming online, according to the new report, Renewables 2017. Renewables will continue to have a strong growth in coming years. By 2022, renewable electricity capacity should increase by 43%.
“We see renewables growing by about 1,000 GW by 2022, which equals about half of the current global capacity in coal power, which took 80 years to build,” said Dr Fatih Birol, the executive director of the IEA. “What we are witnessing is the birth of a new era in solar PV. We expect that solar PV capacity growth will be higher than any other renewable technology through 2022.”
This year’s renewable forecastis 12% higher than last year, thanks mostly to solar PV upward revisions in China and India. Three countries – China, India and the United States – will account for two-thirds of global renewable expansion by 2022. Total solar PV capacity by then would exceed the combined total power capacities of India and Japan today.
In power generation, renewable electricity is expected to grow by more than a third by 2022 to over 8,000 terawatt hours, which is equivalent to the total power consumption of China, India and Germany combined. By then, renewables will account for 30% of power generation, up from 24% in 2016. The growth in renewable generation will be twice as large as that of gas and coal combined. Though coal remains the largest source of electricity generation in 2022, renewables close the generation gap with coal by half in just five years.
The deployment in solar PV and wind last year was accompanied by record-low auction prices, which fell as low as 3 cents per kwh (or kilowatt hour). Low announced prices for solar and wind were recorded in a variety of places, such as India, the United Arab Emirates, Mexico and Chile. These announced contract prices for solar PV and wind power purchase agreements are increasingly comparable or lower than generation cost of newly built gas and coal power plants.
China remains the undisputed leader of renewable electricity capacity expansion over the forecast period with over 360 GW of capacity coming online, or 40% of the global total. China’s renewables growth is largely driven by concerns about air pollution and capacity targets that were outlined in the country’s 13th five-year plan to 2020. In fact, China already exceeded its 2020 solar PV target three years ahead of time and is set to achieve its onshore wind target in 2019. Still, the growing cost of renewable subsidies and grid integration issues remain two important challenges to further expansion.
Under an accelerated case – where government policy lifts barriers to growth – IEA analysis finds that renewable capacity growth could be boosted by another 30%, totalling an extra 1,150 GW by 2022 led by China. Solar PV and wind capacity in China could by then reach twice the totalpower capacity of Japan today.
India’s move to address the financial health of its utilities and tackle grid-integration issues drive a more optimistic forecast. By 2022, India renewable capacity will more than double. This growth is enough to overtake renewable expansion in the European Union for the first time. Solar PV and wind together represent 90% of India’s capacity growth as auctions yielded some of the world’s lowest prices for both technologies.
Despite policy uncertainties at the federal level, the United States remains the second-largest growth market for renewables. The main drivers for onshore wind and solar – such as multi-year federal tax incentives combined with renewable portfolio standards as well as state-level policies for distributed solar PV – remain strong. Still, the current uncertainty over proposed federal tax reforms, international trade and energy policies could alter the economic attractiveness of renewables and hamper their growth over our forecast period.
The report also provides detailed analysis on the renewable consumption of electric cars and off-grid solar deployment in Africa and developing Asia. Off-grid capacity in these regions will more than triple reaching over 3 000 MW in 2022 from industrial applications, solar home systems (SHSs) and mini-grids driven by government electrification programmes and private sector initiatives. While this represents less than 5% of total PV capacity installed in both regions, the economic impact is nonetheless significant, and brings basic electricity services to almost 70 million more people in developing Asia and sub-Saharan Africa in the next five years.
Power consumption of EVs – including cars, two- and-three wheelers and buses – is expected to double over the next five years, with renewable electricity estimated to represent almost 30% of their consumption by 2022, up from 26% today. EVs play a complementary role to biofuels, which represent 80% of growth in renewable energy consumption in transport. However, the share of renewables in total road transport energy consumption remains limited, increasing only from 4% in 2016 to almost 5% in 2022.
Courtesy International Energy Agency
Behind-the-meter distributed energy storage systems that provide uninterruptible power supply service to non-mission critical operations benefit utilities and facility managers
A new report from analyzes the market for distributed energy storage systems with uninterruptible power supply (UPS) capabilities for non-mission critical operations (UPSX), providing an overview of market issues and revenue forecasts through 2026.
Historically, the high costs of UPS systems have made commercial and industrial (C&I) facility managers with non-mission critical operations hesitant to invest in the resiliency technology. Today, a new UPS application, UPSX, is emerging that leverages behind-the-meter (BTM) C&I distributed energy storage system (DESS) technology to provide grid ancillary services to utilities and competitive markets, as well as electrical demand charge reduction and resiliency to C&I facility managers. : According to a new report from , the annual global market for the deployment of UPS service from distributed energy storage is expected to reach $2.7 billion by 2026.
“Many C&I facilities with non-mission critical operations view electrical service outages as an unmanageable cost of doing business due to the high costs of traditional UPS service systems,” says William Tokash, senior research analyst with Navigant Research. “Navigant Research anticipates the emergence of a new UPS service option for this sector will leverage DESS and financing innovation to address this unmet need.”
According to the report, stakeholders now focused on the DESS applications market will begin to add UPS system capabilities to the design and operation of their DESSs. In turn, these UPSX capabilities will begin to address the unmet electrical outage mitigation needs of C&I customers in non-mission critical sectors, while offering an improved business case, increased grid reliability, and financing innovation.
The report, , examines the drivers, barriers, and regional trends affecting the deployment of UPSX. The study provides an analysis of the market issues, including drivers, barriers, and geographic trends, associated with UPSX solutions. Global market forecasts for UPSX revenue, segmented by region, building type, and technology, extend through 2026. The report also examines the key technologies related to UPS systems, as well as the competitive landscape. An Executive Summary of the report is available for free download on the
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Advanced Energy Storage for UPS Applications, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Genset vendors are embracing new value streams to provide added value to customers and to compete against falling prices of solar and energy storage
A new report from examines the global market for diesel and natural gas reciprocating generator sets (gensets), providing an analysis of key market developments and issues, with global forecasts that extend through 2026.
As the global power equation shifts toward generation that is more distributed, intelligent, and interconnected, smart features are being incorporated into gensets at a growing pace. Customers are now demanding advanced features like enhanced maintenance, microgrid interactivity, and demand response, enabled by advances in control technologies and the increasingly ubiquitous connectivity of devices in the Energy Cloud. : According to a new report from , the market for smart gensets is expected to surpass $18.5 billion in annual revenue by 2026 at a compound annual growth rate (CAGR) of 10.5 percent.
“Gensets are gaining a surge of smart features, thanks to improved controls and software, and demands from customers that they provide more services,” says Adam Forni, senior research analyst at Navigant Research. “While many older gensets just waited for the grid to go down, smart gensets are increasingly interactive—with human operators, with other DER, and with the grid itself.”
Customers adopt smart gensets for a variety of applications, but some common project characteristics include critical loads, remote sites, sophisticated customers, higher fuel costs, and larger and more complex projects. According to the report, genset vendors and controller and software companies are embracing these value streams, both to provide added value to customers and to compete against the falling prices of alternative energy resources like solar and storage.
The report, , analyzes the global market for diesel and natural gas reciprocating gensets for six segments: residential; commercial and industrial (C&I) standby; C&I prime and continuous; C&I combined heat and power (CHP); utility; and resource extraction. The study provides an analysis of key market developments and issues, with a focus on three key smart genset applications (operator-interactive, microgrid-interactive, and grid-interactive). Global market forecasts, broken out by segment, country, and region, extend through 2026. The report also examines the main technologies related to smart gensets, as well as the competitive landscape. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Smart Gensets is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Growing demand for space cooling and interest in net zero energy buildings are driving regional uptake of energy efficient building solutions
A new report from examines the market for energy efficient building technologies in Asia Pacific, providing market forecasts for products and services, segmented by eight commercial building types, and by new construction and retrofit spending, through 2026.
In Asia Pacific, energy consumption in buildings is expected to continue to grow rapidly, spurred by high economic growth and the increasing demand for cooling in warm climate regions. At the same time, as the focus on energy efficiency increases, most governments in the region have taken energy efficiency into serious consideration, pursuing green building certificate programs, a growing interest in net zero energy (ZNE) buildings, and the digital revolution of energy efficiency solutions. : According to a new report from , energy efficient buildings market revenue in Asia Pacific is expected to grow from $65.3 billion in 2017 to $111.3 billion in 2026.
“There is a growing demand for space cooling, as well as interest in ZNE buildings in Asia Pacific,” says Christina Jung, research analyst at Navigant Research. “Together, these two trends are driving the uptake of energy efficient building technologies, particularly in the region’s two most rapidly growing economies, China and India.”
While existing technologies can save more than two-thirds of major end-use energy consumption in buildings, two-thirds of global building energy use is still not subject to minimum energy performance standards. According to the report, this signals a vast potential market for building energy efficiency solutions providers in Asia Pacific and beyond.
The report, , analyzes the market for energy efficient building technologies in Asia Pacific. The study focuses on seven product types (HVAC, lighting, building controls, water efficiency, water heating, building envelope, and other) and two service types (commissioning and installation). Market forecasts, which are also segmented by eight commercial building types and by new construction and retrofit spending, extend through 2026. The report also provides an analysis of the market dynamics, including market drivers and hurdles, opportunities, and unique programs that are helping to extend and broaden commercial building efficiency throughout Asia Pacific. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Market Data: Energy Efficient Buildings – Asia Pacific, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Technology improvements and cost reductions are anticipated to continue driving installations
A new report from offers a country-level analysis of all offshore wind markets, including related policies, incentives, and regulatory environments, wind turbine market shares by country, and global market forecasts for offshore wind power capacity, segmented by project status and country.
Offshore wind continues to be an abundant clean energy solution for many coastal load centers where a greater proportion of population and energy demand is located. In addition, the resource is becoming more cost-effective with each competitive tender in Europe, with industry-leading countries such as the UK, the Netherlands, Denmark, Germany, and Belgium well into a transition phase to market-oriented policies that drive project costs down. : According to a new report from , the global wind industry installed an estimated 3.3 GW of new offshore capacity in 2017, bringing the global cumulative total to almost 17 GW.
“While the onshore wind market is larger in terms of total megawatt plant capacity added annually, offshore wind is growing more quickly,” says Jesse Broehl, senior research analyst at Navigant Research. “It is forecast to grow at an 11.1 percent compound annual growth rate between 2017 and 2022, compared to single-digit growth rates for onshore wind.”
Contributing to this forecast is a substantial 7.9 GW in varying levels of construction, primarily in Europe but also increasingly in China, according to the report. Other factors driving the market include technology improvements, such as an increase in turbine blade rotor diameters exceeding 160 meters, and cost reduction strategies in power-purchase agreements and other pricing metrics.
The report, , provides a country-level analysis of all offshore wind markets, including related policies, incentives, and regulatory environments. The study assesses global wind project construction and advanced development underway. Global market forecasts for offshore wind power capacity are segmented by project status and country. Turbine vendor data is provided, including global market shares and more granular installed capacity by country and by wind turbine vendor. Also detailed are average rotor diameters and turbine nameplate ratings by installed year, along with the market share diversification of offshore foundation types. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Offshore Wind Market and Project Assessment 2017, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Virtual power plants can provide both self-consumption optimization and participate in all electricity markets
A new report from examines the potential revenue streams available to distributed renewables generation assets in front of the meter using virtual power plants (VPPs).
With the decline of feed-in tariffs and net metering, distributed renewables providers are exploring new ways to provide value through these installations. Energy storage systems can help, but because they are still relatively expensive, a software-based platform that matches supply and demand in real-time is a promising alternative. : According to a new report from , the aggregation of distributed renewables assets into mixed-asset VPPs can help provide value to distributed renewables providers.
“The aggregation of distributed intermittent renewables is still relatively new—currently, only commercial and industrial installations are targeted, which are aggregated mostly through fee-based trading services solutions and are only sparsely used to provide ancillary services,” says Roberto Rodriguez Labastida, senior research analyst with Navigant Research. “In the residential market, aggregation is used mostly as a marketing tool and offered alongside other services like system sales and installations.”
In the near future, however, better resource forecasting, cheaper communications, and larger project portfolios are expected to help reduce the risk of participating in these markets. At home, aggregation becomes more attractive when other energy assets like batteries, electric vehicle charging, and connected HVAC are also managed by a VPP. With these assets and the generation system, the VPP can provide both self-consumption optimization and participate in all the electricity markets, according to the report.
The report, , explores the potential revenue streams and other sources of value available to distributed renewables generation assets in front of the meter using VPPs (not considering those available through load management). It also explores the aggregation services and the solutions that are being developed around them. Navigant Research focuses on deregulated markets (also known as consumer choice markets) in this report due to their transparency, but the analysis and recommendations are valuable to players working in regulated markets as well. The report also examines the key challenges related to the implementation of renewables aggregation strategies and provides case studies of VPP-enabled renewables business models. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Distributed Renewables Aggregation Strategies in VPPs, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
To adequately mitigate challenges and enable distributed energy resources integration, pervasive visibility into the network is needed
A new report from analyzes the global marketplace for distributed energy resources (DER) communications hardware and services, providing global market forecasts, broken out by segment, category, technology, and region, through 2026.
As DER proliferates, utilities and third-party owners have ramped up investments in asset connectivity and networking for improved operating economics, energy efficiency, and grid reliability. Control and communications at the DER level are anticipated to enable the development of markets for aggregated clean resources and services, service-oriented business models, and integrated grid management strategies. : According to a new report from , North America is expected to lead communications hardware and services revenue for DER integration until 2020, when Asia Pacific is anticipated to become the top market through 2026.
“Growing penetrations of DER threaten distribution grid stability and greatly complicate the grid management process for utilities,” says Michael Kelly, research analyst at Navigant Research. “To date, the structure of the distribution grid adds to the complexity of the problem, primarily due to the lack of sensing, intelligence, and high-speed communications at the edge of the grid.”
While compensation schemes will need to be developed to coordinate utility data access and control, demand for visibility at the DER level is expected to supersede most regulatory or cost considerations, according to the report. In order to adequately mitigate challenges and enable DER integration, pervasive visibility into the network is needed, and third-party DER owners must also pursue communications capabilities to optimize system performance and deliver the maximum benefits to end customers.
The report, , analyzes the global marketplace for DER communications hardware and services. The study examines the key market issues related to growth in DER communications capabilities, including drivers, challenges, and emerging trends. Global market forecasts, broken out by segment, category, technology, and region, extend through 2026. Analyses of communications technologies include: cellular, fiber, low power wide area networks (LPWA), point-to-multipoint (P2MP), radio frequency (RF) mesh, power line communications (PLC), and Wi-Fi. The report also examines the key applications related to DER communications, as well as the competitive landscape. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Communications Technologies for DER Integration, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Opportunities for vehicle grid integration deployment vary by location according to plug-in electric vehicle population, the grid, renewables penetration, and regulatory structures
A new report from analyzes the market opportunity for vehicle grid integration (VGI) technologies used to support grid reliability and stability, providing global forecasts for plug-in electric vehicles (PEVs), networked and bidirectional electric vehicle supply equipment (EVSE), and VGI capacity and revenue, through 2026.
As PEV adoption picks up pace within the next few decades, the electrification of transportation is expected to increase load significantly. For utilities, actively managing and spreading the load across infrastructure assets and time via VGI technologies can prevent infrastructure upgrade costs and may also decrease grid balancing costs. : According to a new report from , VGI technologies and services are estimated to achieve a market size of $700 million by 2026.
“Opportunities for VGI deployment vary significantly by location depending on the confluence of a growing PEV population, an advanced grid, penetration of renewable resources, and an encouraging grid regulatory structure,” says Scott Shepard, senior research analyst with Navigant Research. “Additionally, an increased focus from utilities and grid operators to enroll PEVs in grid services and demand response programs will have significant impacts on the VGI market.”
Navigant Research estimates that the combined global market for regulation and demand response (grid services) is currently near 198 GW. By 2026, global increases in renewables penetration and the advance of smart grid organizational structures are expected to bring the grid services market to more than 516 GW. According to the report, VGI will grow significantly in the next 10 years but account for only a minute portion of global grid service capacity by 2026.
The report, , analyzes the market opportunity for VGI technologies to be used to support grid reliability and stability. The study considers various policy factors associated with the growth of VGI, as well as significant market drivers and barriers. Global market forecasts for PEVs, networked and bidirectional EVSE, and VGI capacity and revenue extend through 2026. The report also examines the major VGI technologies and case studies and profiles key market participants. An Executive Summary of the report is available for free download on the .
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Vehicle Grid Integration, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Mr.Sujoy Ghosh, Country Head, First Solar, India
2017 is shaping up to be a record year for solar PV installations worldwide as well as in India. We have also witnessed sub 2cents/kwhr tariffs in auctions in Saudi Arabia and Mexico for projects that are expected to be commissioned over the next 24-30 months, thereby creating a further compression in the overall value chain that needs to be met by equipment suppliers, financing agencies and the service providers (engineering, procurement and O&M). Hence the companies that continue to focus on reducing costs, increasing scale and lowering their cost of capital/cost of doing business would be able to sustain through these times. Specifically on the PV module technology, the focus would remain on lowering of cost of production by either optimizing manufacturing processes, and/ or leveraging economies of scale. Also with the transition to more installations between the two tropics, there would be equal focus on long term reliability under harsher climates (hot and humid) and quality and consistency of processes would be under increased scrutiny from the end users. 1500V inverters would probably increase their market share as plant owners try to exploit every ounce of optimization feasible in order to achieve lower LCOE’s, while the scale of the blocks increase due to average increase in project capacities. 2018 would also see a an increased focus on hybridization of PV systems with storage or other forms of generation as grid capacity congestion issues begin to start becoming noticeable with the growth in both solar and wind in the recent past.
Mr. George John,Head -Mytrah Global Services,Mytrah Energy
Reverse bidding has become a norm in the renewable energy sector. The low tariffs especially pertaining to Solar sector can be attributed to the decreasing cost of solar modules due to advancement in technology. However, it is noteworthy that even today, most of our capacity comes
from Chinese manufacturers. The heavy emphasis by the government on ‘Make In India’ initiative is expected to drive the domestic manufacturers into building capacities to compete with the Chinese manufacturers. This would increase the self-reliance of the Solar sector by reducing dependencies.Intermittence in energy supply has been an age-old characteristic of renewable energy sector. Although Solar provides a more predictive forecast based on seasonality and time of the day, the power generation remains intermittent. The increasing global awareness on Battery storage and the technological innovations in this sector is bound to impact the Solar sector in the coming year. A successful breakthrough in terms of balancing the capacities and cost will make Solar sector more profitable in future. With Global companies such as Tesla overlooking Battery Storage innovations,this future might not be too far away.From an investment standpoint, Rooftop Solar has gained momentum and this trend is expected to continue into 2018. Rooftop Solar has seen investment from small scale investors as well, since it provides energy security coupled with government incentives.Another interesting trend we expect to see in Solar sector, especially in the near future, is the rise of smart grid solutions and Hybrid models using both wind and solar power generation. The increasing use of digitalization has already reached the Solar sector and we expect to see increased efficiencies because of this.In conclusion, 2018 will be an interesting year for Solar sector from supply chain point of view as well the enhanced efficiencies.
Mr. Devin Narang Country Head-India Sindicatum Renewable Energy Company.
Globally, India has probably the most robust policies in place for all forms of Renewable energy. What can be expected in 2018 borrows heavily from the initiatives the Government has in store for the sector. Specific targets and a well-defined roadmap to achieving them are encouraging. Addition of power generation capacity – especially through solar parks; building of domestic manufacturing capacities; refinements in Solar Policy (for utility scale & rooftop systems) and Bid Document – in particular, with regard to applicable duties and taxes; resolution of State-specific project development bottlenecks; and enhanced bankability of projects - these are some initiatives in the offing by the Government. Technology, on the other hand has also grown steadily, reflecting in increased component efficiencies at competitive prices. However, with regard to PV modules, prices are expected to pick up from the lows seen hitherto while stabilizing at the optimum. Although the Indian market is nascent when it comes to Storage, it would be interesting to see how solar projects combined with storage sustain in the long run. Finally, two (interconnected) aspects that need concerted initiative from different stakeholders are: creation of energy demand and ensured energy offtake. Schemes such as ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ (DDUGJY) and ‘Ujwal Discom Assurance Yojana’ (UDAY) have been important enabling factors from a macro perspective. Such developments have spurred growth in the sector – which stands at 15GW plus installed capacity on date. The achievement of 100GW of solar isn’t far.
Developers face varied challenges in building and managing a rooftop solar asset portfolio and some of the key challenges have been highlighted below.
“A road map has been laid out to set up at least 50 solar parks, each capacity of 500 MW. How do you think the solar parks in India are shaping up?”
Ecoprogetti srl is the leading manufacturer of complete Turnkey Line for module manufacturing.
Growth Opportunities in the Indian PV Market & Requirement of Indian Module Companies
Battery Storage companies secure $714 million; Smart Grid companies bring in $422 million; and Energy Efficiency companies receive $384 million
Mercom Capital Group, llc, a global clean energy research and communications firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for 2017.
To get a copy of the report, visit: http://bit.ly/MercomSGQ42017
In 2017, a combined $1.5 billion was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, an increase from the $1.3 billion raised in 2016.
In 2017, VC funding into Battery Storage companies almost doubled to $714 million raised in 30 deals from the $365 million raised in 38 deals in 2016, largely due to the $400 million Microvast deal. Total corporate funding, including debt and public market financing, rose to $890 million compared to $540 million in 2016.
Energy Storage Downstream companies received the most funding with $68 million followed by Lithium-based Battery companies with $65 million.
The top VC funded companies included: Microvast Power Systems with $400 million, Battery Energy Storage Solutions (BESS) with $66 million, Forsee Power brought in $65 million, Advanced Microgrid Solutions (AMS) raised $34 million, and Primus Power raised $32 million.
Eighty-six VC investors participated in Battery Storage deals in 2017 compared to 62 in 2016.
In 2017, announced debt and public market financing for Battery Storage companies remained steady at $177 million raised in 12 deals compared to $175 million generated by eight deals in 2016.
Three project funds totaling $446 million were announced in the Battery Storage category in 2017, compared to $820 million raised in 2016 in seven deals.
Nine Battery Storage project funding deals were announced in 2017 totaling nearly $2.1 billion. By comparison, just $33 million was raised in four deals in 2016.
There were six M&A transactions in the Battery Storage category in 2017, of which only two disclosed transaction amounts. In 2016 there were 11 M&A transactions, three of which disclosed transaction amounts.
VC funding in the Smart Grid sector rose to $422 million in 45 deals in 2017, compared to $389 million raised in 42 deals in 2016. Total corporate funding, including debt and public market financing, came to $1.2 billion compared to $613 million in 2016.
The top VC funded companies in 2017 were ChargePoint, which brought in $82 million and $43 million in two separate deals, Actility which received $75 million, Brilliant which secured $21 million, and Particle and Urjanet each raising $20 million.
Eighty-eight investors funded Smart Grid companies in 2017, compared to 82 in 2016. Top VC investors in 2017 included: ABB Technology Ventures, Braemar Energy Ventures, Chrysalix Venture Capital, Clean Energy Finance Corporation, Energy Impact Partners, EnerTech Capital, GE Ventures, innogy, National Grid, Obvious Ventures, and Siemens.
Smart Charging of plug-in hybrid electric vehicle (PHEV), vehicle-to-grid (V2G) companies, had the largest share of VC funding in 2017 with $155 million in 10 deals, followed by Demand Response companies with $94 million in four deals.
In 2017, five debt and public market financing deals totaling $774 million were announced, compared to $224 million raised in five deals in 2016. There were no IPOs announced for Smart Grid companies in 2017.
There were 27 M&A transactions recorded in the Smart Grid sector (just seven of these deals disclosed transaction amounts) in 2017 totaling $2.5 billion. In 2016 there were 15 transactions (four disclosed) for $2.4 billion. The top disclosed transaction was the $1.1 billion acquisition of Aclara by Hubbell.
VC funding for the Energy Efficiency sector fell to $384 million in 38 deals in 2017 compared to $528 million in 33 deals in 2016. Total corporate funding, including debt and public market financing, was $3.3 billion, compared to $3.8 billion in 2016.
The top VC funded companies were View, which raised $100 million, followed by Kinestral Technologies with $65 million, RENEW Energy Partners with $40 million, Power Survey and Equipment brought in $24 million, and Stack Lighting with $16 million.
Efficient Home/Building companies captured the most funding with $172 million in five deals in 2017. A total of 51 investors participated in funding deals in 2017 compared to 72 investors in 2016. Energy Impact Partners was the most active investor in 2017.
In 2017, debt and public market financing announced by Energy Efficiency companies fell to $2.9 billion in 16 deals compared to the $3.2 billion raised in 16 deals in 2016. 2017 saw seven Property Accessed Clean Energy (PACE) financing deals bring in more than $1.6 billion compared to 12 deals that brought in $2.3 billion in 2016.
There were two securitization deals in 2017 for nearly $581 million compared to nine securitization deals for $1.8 billion in 2016. Securitization deals have now exceeded $4.5 billion in 24 deals since 2014.
M&A activity for the Efficiency sector in 2017 dropped to 10 transactions, three of which disclosed transaction amounts. In 2016, there were 14 M&A transactions with five that disclosed transaction amounts.
The largest disclosed transaction was the $526 million acquisition of LEDvance by a Chinese consortium consisting of IDG Capital, MLS, and Yiwu.
To get a copy of the report, visit: http://bit.ly/MercomSGQ42017
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.
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Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2017.
Total global corporate funding into the solar sector, including venture capital/private equity (VC), debt financing, and public market financing raised came to $12.8 billion, a 41 percent increase compared to the $9.1 billion raised in 2016.
To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017
"A strong fourth quarter pushed overall funding higher in 2017. Higher installation levels around the world, the lack of threat to the solar investment tax credit, lower than expected tariff recommendation by U.S. ITC, strong debt financing activity, and over a billion dollars in securitization deals helped the solar industry have a much better year in terms of financial activity compared to 2016. After several challenging years, most of the solar securities were up in 2017 reflecting overall positive sentiments around the solar industry even as several Chinese manufacturers decided to go private. Of course, all this could change swiftly if President Trump decides to impose higher tariffs in the trade case," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.
Global VC investments came to $1.6 billion in 99 deals in 2017, up 30 percent from the $1.3 billion raised by 78 deals in 2016 - led by several large private equity deals in India.
Solar downstream companies accounted for 85 percent of total VC funding in 2017, bringing in $1.4 billion of the total $1.6 billion raised. Thin-film companies brought in $106 million while service providers raised $47 million.
Investments in PV technology companies came to $40 million and Balance of Systems (BoS) companies raised $36 million. The concentrated solar power (CSP) category raised $8 million and the concentrator photovoltaics (CPV) category received $6 million.
The top VC/PE deals reported in 2017 included a deal for $200 million signed by Lightsource Renewable Energy. ReNew Power also had two deals of $200 million each, followed by Greenko Energy Holdings which raised $155 million. Hero Future Energies raised $125 million and CleanMax Solar raised $100 million. Overall, five of the top six solar VC funding deals in 2017 came from India.
There were 162 VC/PE investors that participated in funding rounds in 2017, with eight involved in multiple rounds: Engie, Avista Development, DSM Venturing, InnoEnergy, Innogy, International Finance Corporation (IFC), Shell, and Techstars.
Public market financing was flat in 2017 to $1.7 billion raised in 33 deals from $1.8 billion raised in 27 deals in 2016. Three IPOs were logged during the year that raised a combined total of $363 million for Canadian Solar Infrastructure Fund, New Energy Solar Fund, and Clenergy.
Announced debt financing in 2017 surged to $9.5 billion compared to $6 billion in 2016. There were six securitization deals in 2017 totaling $1.3 billion. Securitization deals surpassed the $1 billion for the year, a first.
Large-scale project funding announced in 2017 reached a $14 billion raised in 167 deals, compared to $9.4 billion raised in 133 deals during 2016. A total of 161 investors funded about 20.5 GW of large-scale solar projects in 2017 compared to 5.9 GW funded by 153 investors in 2016.
The top investors in large-scale projects included Clean Energy Finance Corporation (CEFC), which invested in 13 projects, followed by Santander with eight deals, and Commonwealth Bank of Australia and Siemens Financial Services with six deals each.
$2.4 billion was raised by 16 residential and commercial solar project funds in 2017 which was down 50 percent compared to $4.9 billion raised by 30 funds in 2016. The top fundraisers were: Sunlight Financial, Sunnova, Solar Mosaic, SolarCity, and Spruce Finance. Since 2009, solar residential and commercial firms offering leases, PPAs, and loans have raised more than $24.8 billion in lease and loan funds.
There were 71 corporate M&A transactions in the solar sector in 2017, up slightly from 68 transactions recorded in 2016. Solar downstream companies were involved in 51 of these transactions. Engie acquired three companies while BayWa, Brookfield Asset Management, Horizon Solar Power, Siva Power, Solar Spectrum, and Sonnedix acquired two companies each. The largest and the most notable transaction in 2017 was the $1.6 billion acquisition of FTP Power (sPower) by AES and Alberta Investment Management (AIMCo) from Fir Tree Partners.
Project acquisitions jumped up 67 percent as a record 228 large-scale solar projects with a combined capacity of more than 20.4 GW were acquired in 2017, compared to 2016 when 12.2 GW changed hands in 218 transactions.
Mercom also tracked 187 large-scale project announcements across the globe that totaled 10.6 GW in Q4 2017 and 922 large-scale project announcements totaling 50.1 GW for all of 2017.
To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Smart Grid. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.
Various Instruments For India’s Clean Energy Support Measures
Credits: IRENA REMap India Paper 2017
Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its latest quarterly report on funding and merger and acquisition (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors during the third quarter and first nine months of 2017.
To get a copy of the report, visit: http://bit.ly/MercomSGQ32017
Mercom found that, in the first nine months (9M) of 2017, $1.23 billion was raised by Battery Storage, Smart Grid, and Efficiency companies, up from $910 million raised in 9M 2016.
In Q3 2017, VC funding for Battery Storage companies dropped to $83 million in seven deals compared to $422 million raised in 10 deals during Q2 2017. A year earlier, $30 million was raised in nine deals in Q3 2016. In 9M 2017, $563 million was raised in 25 deals compared to $209 million raised in 29 deals in 9M 2016.
The top VC funded Battery Storage companies in Q3 2017 were: Advanced Microgrid Solutions, which raised $34 million from Energy Impact Partners, Southern Company, DBL Partners, GE Ventures, AGL Energy, Macquarie Capital, and former California Governor Arnold Schwarzenegger; Romeo Power, which raised $30 million; and Gridtential Energy, which secured $11 million from 1955 Capital, East Penn Manufacturing, Crown Battery Manufacturing, Leoch International, Power-Sonic, The Roda Group, and the company's chairman, Ray Kubis.
In all, 16 investors participated in Battery Storage funding in Q3 2017 with Energy Storage Downstream companies raising the most.
The third quarter saw two debt and public market financing deals in Battery Storage totaling $45 million compared to $107 million raised in seven deals in Q2 2017. In 9M 2017, $174 million was raised in 11 deals compared to six deals that brought in $120 million in 9M 2016.
There was one M&A transaction involving a Battery Storage company in Q3 2017 compared to three M&A transactions in Q2 2017. In the first nine months of 2017, there were five transactions (two disclosed), down from nine transactions (two disclosed) in 9M 2016. Two Storage projects were also acquired in Q3 2017.
VC funding for Smart Grid companies in Q3 2017 totaled $76 million in 14 deals, compared to $139 million raised in eight deals in Q2 2017. In a year-over-year (YoY) comparison, $11 million was raised in seven deals in Q3 2016. In 9M 2017, $380 million was raised in 36 deals compared to $343 million raised in the same number of deals in 9M 2016.
Top VC funded Smart Grid companies included: Particle, which secured $20 million from Spark Capital, Qualcomm Ventures, and previous investors; INTEREL, which raised $11.9 million in funding from Jolt Capital; Roost, which received $10.4 million in funding from Aviva Ventures, Desjardins Insurance, and Fosun RZ Capital; Tritium, which secured $8 million from entrepreneur Brian Flannery; and Innowatts, which raised $6 million from Shell Technology Ventures, Iberdrola Ventures - Perseo, and Energy & Environment Investment.
In all, 28 investors participated in Smart Grid VC funding rounds in Q3 2017, with SG Communications companies raising the most.
A total of $11 million was raised in one debt financing deal in Q3 2017 compared to the $9 million raised in one deal in Q2 2017. In 9M 2017, $20 million was raised in two deals compared to $217 million raised in four deals in 9M 2016.
There were six M&A transactions (two disclosed) in Q3 2017. In Q2 2017, there were six transactions (two disclosed). In 9M 2017, there were 19 transactions (five disclosed) compared to 13 transactions (four disclosed) in 9M 2016.
VC funding raised by Energy Efficiency companies in Q3 2017 came to $47 million in eight deals compared to $29 million raised in six deals in Q2 2017. In a YoY comparison, $61 million was raised in five deals in Q3 2016. In the first nine months of 2017, $289 million was raised by Energy Efficiency companies in 28 deals compared to $358 million raised in the same number of deals in 9M 2016.
The Top VC deals in the efficiency category included: Power Survey and Equipment, which received $24 million in funding from EnerTech Capital, Investissement Quebec, Cycle Capital Management, Fonds de solidarite FTQ, and BDC Capital; Corvi, which received a $10 million strategic investment from Hero Enterprise; and Deco Lighting, which secured $8 million in funding from Siena Funding.
In all, nine investors participated in VC funding in Q3 2017. Within the sector, Efficiency Components companies brought in the most funding.
Announced debt and public market financing for Energy Efficiency technologies plunged to $615 million in four deals in Q3 2017 compared to the $1.4 billion raised in six deals in Q2 2017. In 9M 2017, $2.3 billion was raised in 13 deals compared to the same amount raised in 11 deals in 9M 2016.
There was one Property Accessed Clean Energy (PACE) financing deal in Q3 2017 for $205 million versus three deals in Q2 2017 that raised $668 million. In 9M 2017, $873 million was raised in four deals compared to the $1.3 billion raised in six deals in 9M 2016.
There were two M&A transactions (one disclosed) involving Energy Efficiency companies in Q3 2017, up from just one undisclosed transaction in Q2 2017. For the first nine months of 2017, there were seven transactions (three disclosed), down from 12 transactions in 9M 2016 (four disclosed).
To get a copy of the report, visit: http://bit.ly/MercomSGQ32017
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid, and Energy Efficiency and Solar and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.
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Large-scale project funding crosses $10 billion in 9M 2017
Mercom Capital Group, llc, a global clean energy communications and consulting firm, released a new report on funding and merger and acquisition (M&A) activity for the solar sector in the third quarter of 2017 and the first nine months of 2017.
To learn more about the report, visit: http://bit.ly/MercomSolarQ32017
Total corporate funding (including venture capital funding, public market and debt financing) in the first nine months (9M) of 2017 was slightly lower compared to the same period in 2016, with about $7.1 billion raised compared to the $7.5 billion raised in 9M 2016. There were 143 deals in 9M of 2017 compared to 125 deals in the same period of 2016.
Looking at just Q3 2017 data, Mercom found that corporate funding in the solar sector grew 74 percent compared to Q2 2017, with $2.4 billion raised in 45 deals. In Q2 2017, $1.4 billion was raised in 37 deals. Year-over-year (YoY), funding in Q3 2017 was about 19 percent lower compared to the $3 billion raised in Q3 2016.
“Debt financing activity outside of the United States helped bump up corporate funding in the third quarter as financing activity in the United States was muted ahead of the Suniva anti-dumping case decision,” commented Raj Prabhu, CEO of Mercom Capital Group.
Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 9M 2017 rose a slight seven percent to $985 million from $925 million raised during the same period in 2016, largely due to a strong first quarter in 2017.
In Q3 2017, VC funding for the solar sector doubled with $269 million raised in 23 deals compared to $128 million raised in the same number of deals during Q2 2017. Most of the VC funding raised in Q3 2017 (72 percent) went to solar downstream companies with $193 million in 13 deals.
The Top VC deal in the third quarter of 2017 was the $100 million raised by Indian rooftop installer CleanMax Solar. It was followed by the $56 million raised by Singapore’s Sunseap Group, the $21 million secured by Sol Voltaics, and Ampt’s $15 million. Ubiquitous Energy also raised $15 million. A total of 35 investors participated in solar funding in the third quarter of 2017.
Solar public market funding was approximately 12 percent lower compared to the first nine months of 2016, with $1 billion raised in 9M 2017 compared to $1.2 billion raised during the same period of 2016. Public market financing fell significantly in Q3 2017 with just $79 million in four deals, down from $473 million raised in six deals in Q2 2017.
During the first nine months of 2017, debt financing activity accounted for $5.1 billion in 51 deals, which was almost six percent lower compared to the first nine months of 2016, when $5.4 billion was raised in 55 deals. In Q3 2017, announced debt financing rose steeply to $2.1 billion in 18 deals compared to the $798 million raised in eight deals during the second quarter of 2017.
In the top debt deals, Greenko Energy Holdings raised $1 billion in green bonds in two separate deals, $650 million and $350 million. Cypress Creek Renewables also received $450 million from Temasek.
Announced large-scale project funding in 9M 2017 crossed the $10 billion mark, with $10.2 billion raised for the development of 117 projects. For the third quarter of 2017 alone, announced large-scale project funding came in at more than $2.8 billion in 36 deals.
Announced residential and commercial solar funds totaled $2.2 billion in 9M 2017, which was lower by almost 35 percent when compared to the $3.4 billion raised during the same period of 2016.
The first nine months of 2017 saw a total of 58 solar M&A transactions, compared to the 48 transactions seen in the same period (9M) of 2016. There were 18 solar M&A transactions in Q3 2017, up from 11 solar M&A transactions seen in the preceding quarter (Q2 2017) and equal to the number of transactions (18) posted in Q3 2016. Of the 18 total transactions in Q3 2017, 13 involved solar downstream companies, three involved PV manufacturers, and there was one transaction each by a BOS company and an Equipment provider.
There were 161 large-scale project acquisitions in first nine months of 2017 aggregating over 14.6 GW, compared to 145 project acquisitions totaling just 7.1 GW during the same period of 2016.
Similar to Q2 2017, investment firms and funds were the most active acquirers in Q3 2017, with 26 projects for over 2 GW, followed by project developers with 16 transactions totaling over 1.1 GW.
Mercom tracked 296 new large-scale project announcements worldwide in Q3 2017 totaling 15.7 GW.
To learn more about the report, visit: http://bit.ly/MercomSolarQ32017
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Battery Storage, Smart Grid, & Efficiency. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.
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