A smarter grid for a smarter world

At a time when the focus of the world is as much on pressing, short-term issues such as economic crises and global regulations as it is on longer-term concerns such as climate change, it is important to reaffirm that smart grids are no longer buzz words for the future. They have already become a presence delivering unrivalled benefits driving efficiency and saving energy.

The smart grid has already started to impact our lives. The world’s traditional electrical network, simple and linear with centralised energy production and passive consumption, is undergoing an irreversible transformation to a much more complex, interconnected and interactive model.

All over the world and all over the electricity network, smarter solutions have been implemented which can balance supply and demand far more efficiently, connecting smarter, more active consumers to a greener and more intelligent energy grid.

Due to the steady upstream in smart grid technology, the world’s energy mix is continually evolving. In addition to traditional generation from nuclear, coal, oil and gas, the share of renewable power from photovoltaic, wind, hydro and marine energy is growing fast.

Part of the solution
While solar and wind farms have the capacity to generate significant power, they often operate at a 20-30 percent capacity, so the ability to effectively integrate these plants into the grid and manage instability is key.

For example in Italy, AES Sole, a global company that develops, finances, constructs and manages utility-scale solar farms across the world, started the construction of a large∞scale photovoltaic power plant. With an output of 38,5MWp the park consists of 573,100 solar panels and has the power generation capacity equivalent to the consumption of 18,000 homes (estimated 50,000 inhabitants). This installation will save 28,000 tonnes CO² compared to an equivalent fossil fuel plant and will have a near zero environmental impact as the site could fully be returned to farming activity and without any concern about potential hidden contamination.

Operating as a single contractor for the entire project, Schneider Electric proposed a single contract for the plant design, construction and commissioning which secured feed in tariffs with the short project completion. The solution gives a guaranteed plant availability of 99 percent for two years and commercial energy production happened immediately on the grid connection date due to an innovative solution of ‘full on load’ testing of the plant before operation.

Driving change
On the demand side of things, more efficient companies and active end-users are driving smarter demand to maximise the cost and environmental benefits from energy and company-wide efficiency.

For enterprises and public administration, ‘Active Energy Efficiency’ is the fastest, cheapest and most efficient way to reduce their energy bill and CO2 emissions while managing their business growth.

Schneider Electric’s headquarters in France is a perfect showcase of what active energy efficiency really means. In June 2011 it became the first site in the world to be certified ISO 500001 (the new energy management standard). Having divided the energy bill by four since moving to the site in 2009, a combination of intelligent systems, detailed measurement, strong process and engaged employees has enabled a regular year∞on∞year energy reduction of 5-10 percent, reaching 80 kWh/m² per year by end of 2012.

The general public are not passive and they represent an active part of the smart grid solution. Consumers look for competitive prices and also want to contribute to CO² emission reduction. They are ready to play an active role by controlling consumption, producing green energy, driving electrical vehicles to name but a few. Thanks to new information technologies homes can be equipped with ‘Active Energy Management Solutions’ that allow them to save up to 30 percent on their energy consumption, becoming even more efficient homes and contributing to the production of negawatts – the energy that we don’t use.

Supporting this booming evolution, Schneider Electric has recently become the first manufacturer worldwide to obtain ‘ZE Ready’ certification for Renault for its full EVlink electrical charging infrastructure range. ZE Ready is a comprehensive testing protocol designed to guarantee that internationally accepted standards will be implemented consistently and fairly among electrical vehicles and any charging infrastructure.

In France nearly 700 contractors have already been certified to install charging stations in residential homes and nearly 150 electrical equipment installers work with corporate customers and local communities to equip parking lots with charging stations that can handle energy management services.

Intelligence and communication are delivering value
The smart grid really happens with smarter interactions. Once customers are connected to the smart grid, efficient enterprises as well as efficient homes, they can take advantage of the new ‘demand-response’ systems that are now being tested around the world.

Demand-response is about adapting real-time consumer demand for electricity. It works by encouraging consumers to use less energy during peak hours, or to try to move the time of their energy use to off-peak times such as night time and weekends.

The business model is that of a virtual power plant. When demand rises, this virtual plant aggregates load shedding capacities, today mainly from electro-intensive users as well as decentralised production capacities. It then supplies the grid with this extra electricity to help manage the peak and the value is then redistributed among all users.

Highly supportive of this solution, Schneider Electric has just signed a partnership with French start-up EnergyPool. EnergyPool’s current customer pool already represents a peak-shaving capacity of over one percent of today’s peak – and the pool is growing incredibly quickly as energy prices increase and public money for new generation build decreases. ‘Demand∞response’ could shave 10 percent off the peak usage according to some analysts – making huge savings on new generation investment and on CO2 emissions.

The smart grid equation
Smart grids are now on the way to success and every one is part of the future energy solution. We at Schneider Electric believe everyone has a role to play. Utilities drive smarter supply to manage the increase in demand, overcome network complexity and address environmental concerns. Energy efficient companies and active end users are driving smarter demand to maximise the cost and environmental benefits of greater energy efficiency.

Smarter demand, coupled with smarter supply and demand∞response will continue to make the smart grid a reality, and at Schneider Electric, we are helping customers to be smart grid∞ready everywhere and at every level.

The attempt to waste not, whilst wanting not

On the Eastern edge of Mexico City lies a sight unseen throughout Europe: garbage – 60 million tonnes of it – stretches off into the distance and over the horizon.

Toxic streams, polluted with heavy metals, meander through a landscape of trash mountains reaching up to 13 metres in height. Poisonous smoke, generated by the open burning of refuse, fills the air. This is Bordo Poniente, the world’s second largest garbage dump.

Estimates of its size vary, depending on whom you ask; city officials have quoted 420 hectares, while some bloggers say it is closer to 1,000. Despite its enormous size, this massive wasteland struggles to contain the 12,500 tonnes of largely unsorted trash that are dumped on the site every day.

When it rains, black rivers flow out of the garbage forming toxic pools of pesticides, heavy metals, and other poisons. These waters inevitably make their way to the nearby canals and lakes, polluting Mexico City’s water sources. When it is not raining, however, Bordo Poniente’s inhabitants and labourers fear a different phenomenon. In the dry seasons the methane produced by layers of decomposing waste can cause violent explosions and raging fires that are difficult to extinguish.

Currently Bordo Poniente emits two million tonnes of greenhouse gases into the atmosphere, accounting for 15 percent of the city’s emissions – equivalent to about 500,000 cars. About one million tonnes of these emissions are carbon dioxide (CO2), while the remaining half comes from the methane that causes the violent explosions. Yet, methane is not only volatile; it is also a powerful greenhouse gas, with a warming potential 20 times more than CO2. Unlike CO2 though, its stored energy can be harnessed, inciting scientists and entrepreneurs around the world to finding creative ways of exploiting it.

In New Jersey, where the capturing of methane from landfills is becoming commonplace, a single 240∞hectare landfill produces 20MW of power, enough energy to supply roughly 16,000 US homes. If Bordo Poniente were to use the same technology, a back-of-the-envelope calculation suggests that it could produce up to 35MW, powering some 40,000 local homes. Mexico City has in fact begun preparations to capture some of the methane from Bordo Poniente, which it will use to power the local area. The city has also commissioned a 300-hectare recycling and integrated energy centre (CIRE), costing an estimated $140 million. According to the City’s Waste Commission, the centre will burn 45 percent of Mexico City’s trash by 2012 converting the landfill into a giant ‘waste-to-energy’ (WtE) plant.

According to a recent cost benefit analysis in Britain, WtE plants are more cost-effective than their coal counterparts. Predictions suggest that electricity produced from these plants could generate 3.1 percent of Britain’s total electricity by 2030. Although the costs to install WtEs are large, these are likely to be reduced with appropriate technological transfer. Additionally, WtE plants are considered to be more socially acceptable than coal power plants and as well as lowering greenhouse gas emissions, their efficiency increases have proven to be quite profitable.

Cogeneration
WtE plants that integrate combined heat and power plants (or ‘cogeneration’) with traditional industries may require even greater initial investments, but are all the more efficient. Turning industrial waste into energy can earn carbon credits, diversify a factory’s output, and ease potential price fluctuations of the primary produce. Take, for example, the sugar mills in India who are leaders in the field of cogeneration and biomass energy; besides producing sugar, nearly one in six mills is a cogeneration plant. These plants generate electricity and heat using bagasse, the residue that results from crushing sugarcane. Apart from feeding this energy back into the plant, it is sold to the electricity grid, thus reducing production costs and creating an additional source of income.

However, as of now, these cases are rare examples. High initial investment requirements are only one of the reasons why WtE plants can face strong public resistance. Therefore, concerted political will is required for such plants to become commonplace, as is the case in some European countries (Sweden, Denmark and Germany). In Germany for example, combined heat and power plants were incentivised in order to make them commercially and politically viable.

Environmental controversy
Despite its advantages, WtE technology remains controversial, particularly at a local level. Back in Mexico City, the environmental group Greenpeace has criticised the CIRE plan, arguing that incineration would worsen air quality and release toxic chemicals into the atmosphere. Gustavo Ampugnani, Director of Campaigns at Greenpeace Mexico, claims that composting and recycling would “in fact save between three and five times more energy.” As a recent Friends of the Earth UK report explains, there are three main types of WtE plants: landfills with methane capture, incinerators, and plants that use anaerobic/aerobic digestion to breakdown waste. The report shows that composting or anaerobic digestion emits less greenhouse gas emissions than either incineration or landfills with methane capture.

Anaerobic digestion, in a nutshell, is the creation of gas from organic waste in biogas plants. Small-scale composite biodigester units that are suitable for installation in any household have proved to be particularly useful in remote areas lacking access to conventional sources of power, especially in developing countries. But, they are often associated with high capital costs and are still not completely viable energy substitutes. While governments have focused much of their efforts on expanding the reach and connectivity of conventional power grids, it may make more sense to instead improve these sources of locally generated power that fill the energy void in remote areas.

Looking at the problem from a policy perspective, for waste to energy initiatives to play a role in the low-carbon energy transition, an integrated policy framework is essential. Easing bureaucratic hurdles and planning directives, and creating an environment where local groups involved in small-scale waste to energy projects can pool resources, will greatly facilitate the expansion of WtE. Furthermore, technology transfer and financial mechanisms such as selling locally generated energy back to the grid will undoubtedly incentivise uptake. Finally, changing social perceptions on WtE possibilities may pose a big challenge but is essential. Countries like Denmark and Germany have seen marked success in fostering public acceptance and greater stakeholder involvement on the issue, yet other countries still have a long way to go.

Although proponents of Mexico City’s CIRE scheme stress its potential to generate thousands of kilowatts of power and to put the city’s waste management scheme in the same league as the likes of San Francisco, groups like Greenpeace show clearly that public opinion is not yet on its side. Nevertheless, it looks likely that the CIRE plan will go ahead regardless. Even if waste to energy cannot be a comprehensive solution to Mexico City’s waste management problem, if the plan does go ahead, it will at least reduce some of the trash mountains that currently populate the expansive wasteland of Bordo Poniente.

About the authors
Niel Bowerman is Executive Director of Climatico and Radhika Viswanathan is Director of Research.  Climatico is a network of academics and professionals providing independent analysis of climate policy.  

A dim view

Lignite power plants belch dust and smoke into the air above the southern Greek town of Megalopolis, but residents resistant to environmental arguments have blocked a scheme to build the country’s biggest solar energy project on a nearby hillside.

Local game hunters, angry that an earlier plan to grow a forest on the site was scrapped, have gone to court to try to stop the construction of a 50-megawatt solar panel park.

“Under no conditions will we accept sacrificing even one tree… we are not bowing to these interests,” Kostas Markopoulos, president of the Hunters’ Association of the Peloponnese, said on a visit to the site on a hill overlooking the small town.

Below lie the huge open-air mine where lignite, a cheap but highly polluting energy source also known as brown coal, is extracted and adjacent plants where it is burned to generate electricity for southern Greece.

The nearest houses stand only about 100 metres away. Greece is far behind European Union leaders in the field, such as much less sunny Germany.

Despite one of the most generous government subsidies and long∞term guaranteed electricity prices worldwide, it ranked 18th in percentage of renewables as a proportion of gross electricity consumption in the EU in 2007.

The Megalopolis project, using photovoltaic panels to convert sunlight into electricity, would be one of the biggest solar energy schemes in the world. It is expected to cost €200m to €250m.

Nearly two years after electricity operator PPC was granted production licences, nothing has been built on the site. A court ruling on the hunters’ appeal is still awaited.

Investors, waiting for years to tap Greece’s huge potential, say that after decades of struggling with endless bureaucracy, they see some reason for hope as new legislation takes effect.

Sleeping giant
“In the past 15 years, Greece has been the sleeping giant of European renewables,” said Nikos Vassilakos, who heads a Greek and a European association of investors in renewables. “Now something is moving, maybe at a slow pace but investors have learnt to be patient.”

Greece is notorious for its long licensing procedure, which Vassilakos estimated at three to four years on average.

The government has just passed a zoning law for renewables as well as approved new incentives for individuals to install solar panels on rooftops and sell the electricity, doing away with a licensing process that used to cost thousands of euros.

By the end of this year, it plans to submit a law to shorten procedures for wind farms and small hydroelectric plants.

With installed capacity of about 1,200 megawatts, mostly from wind, Greece must move up a gear to comply with EU rules.

It needs to produce more than a third of its electricity from renewables by 2020, from about nine percent currently – the figure drops to about four percent without large hydro plants, which experts say is a more realistic assessment.

Investors present in the Greek renewables market include Italy’s Enel, France’s EDF, and Spain’s Iberdola as well as other, smaller companies. More than ¤4bn worth of renewable applications are awaiting approval by Greece’s energy regulator.

“It’s an exciting moment,” Vassilakos said. “Look at how big the untapped potential is.”

Missing the big picture
Walking around the mine and the hamlets bordering the plant, where pollutants in the air burn the throat after just a few minutes, the hunters’ leader Markopoulos is unconvinced.

“A (solar) park here at such a large scale … would be one large mirror that will drive away wildlife,” he said. “This should be done in other areas, and they exist, that do not destroy the natural environment.”

Environmentalists, investors and local authorities shake their heads in dismay and say the hunters and others lack information and are missing the big picture of environmental, health and economic benefits.

“Building photovoltaics there is going to be better for the environment than a few trees,” said PPC Renewables chief executive Tassos Garis.

 “At first we heard things like the temperature will reach 60ºC, dreadful things, nothing to do with reality,” said Megalopolis mayor Panayiotis Bouras, who backs the project.

Solar power is usually among the most warmly welcomed green options. Hydroelectric dams can cause anger when valleys are flooded and wind turbines can be called eyesores, but solar power is rarely criticised since its panels are usually quite inconspicuous.

The hunters, who shoot rabbits and other small game in the surrounding hills, are not the only ones worried about the project. Those who depend on the power plant and mine for a living fear jobs will be threatened.

 “People work here (in the lignite plant), they earn their livelihood there… what can we do?” said 77-year old Aggeliki, chatting with neighbours near a group of houses a stone’s throw from one of the plants.

Solar power goes through the roof

In recent years, the cost of producing solar energy has fallen dramatically. More than commercially feasible, it already rivals local energy costs in some countries. Achieving ‘grid parity’ is already a reality, and Trina Solar is leading the way.

Solar energy companies are on a roll. Productions costs are falling and demand is rising. The race is on not just to make sales and expand market share but to enhance brand recognition and create a reputation built on quality. It’s a race that’s winnable for Trina Solar, says the company, who markets itself as providing the “Best $/kWh”.

For too long many Chinese companies failed to differentiate themselves as brand leaders. For some it was a question of cash. For other companies it was about confidence. But solar energy companies are in a very different place today. It’s not just their stellar growth rates that are making companies like Trina Solar better known. It’s about the quality behind the technology – as well as the sheer range of applications solar panel technology is now able to support. “Total system costs are continuing to fall,” says the company. “And now we’re seeing a step∞change in how our technology is used. This includes the emergence of a range of applications that are a world away, frankly, from mainstay projects driven primarily by investment returns.”

The solar module producer highlighted existence of many markets where highly unstable power grid networks exist, especially in growing economies. “If you manufacture goods or services, you can’t afford to keep having black-outs. So the value of a solar installation working alongside your traditional supply is starting to look exciting and attractive.”

Indeed. From factories to tourism, the demand drivers are increasing. In a country with unreliable power supply, solar can be installed at the point of need (unlike wind power) to allow one to refrigerate, cook, or assure medical services. Similarly, projects are now being considered which leverage solar’s flexibility to power extensive wireless telecom networks through tower installations.

It’s not just about supplying energy to the have’s and the have-nots; there’s a growing range of niche markets and applications that solar energy now supports. By supplanting the need for costly and polluting diesel-powered backup generators, traditional industrial sectors are also taking notice. Solar is becoming mainstream.

Trina Solar’s proven strengths
• Large-scale vertically integrated manufacturing
• Strong brand with a reputation for high quality products
• Industry-leading manufacturing cost structure
• Diversified sales across regions and market segments
• Strong research and development efforts and advanced technological capabilities

Surging growth
One of Trina Solar’s key strengths is its vertical platform. This means it is less reliant on other suppliers and companies for its primary value chain components, while it can continually improve its supply chain by leveraging its photovoltaic (PV) supplier park which is integrated alongside its manufacturing campus. This translates to significant cost savings, which are then passed onto the consumer, as well as being invested back into the business, especially R&D.

Yes, some other companies are also managing to reduce costs by integrating their processes. Many companies have little choice but to go the mergers and acquisitions route, but it can be a costly approach if your new acquisitions remain hundreds – or even thousands – of miles apart.

An example of these integrated savings is how Trina Solar manages its manufacturing process. Some companies only cast ingots and slice wafers to sell to others, who in turn run them through a series of high∞tech processes to produce a solar cell. Other companies purchase solar cells only to manufacture a module. But Trina Solar handles these four separate processes internally.

“It’s not just about costs and breaking them down,” says the company. “It’s all about logistic efficiencies, cycle times and leveraging advantages of these time and cost synergies. For new products and processes, it also allows management to rapidly address development issues and accelerate market delivery.”

Meanwhile the solar energy market is surging. According to Solarbuzz, an independent solar energy research and consulting firm, the global solar power market – measured by annual volume of modules delivered to installation sites – grew at a compound annual growth rate of 44.9 percent from approximately 1.5 Gigawatts (GW) in 2005 to approximately 6.4 GW in 2009. That’s a truly stupendous rise.

Is such growth sustainable in the future? According to Solarbuzz, yes it is – very much so. Annual solar power system installed capacity looks likely to increase to approximately 24.7 GW in 2014, and solar power industry revenue could increase from $33.9bn in 2009 to $77.9bn in 2014 it claims. “We believe market growth will be driven largely by increasing affordability and rising grid prices as well as government initiatives in newer markets such as the UK, Australia and Southeast Asia,” says Trina Solar.

The solar market has been hit by some anxiety recently after government subsidies were cut in Germany. However European solar markets are increasingly stable and attuned to developing better technologies. But the next really big market for solar is the US. The Obama government is increasingly backing solar power and as it does so the US market is emerging as one of the top growth areas for solar.

Surviving the recession stronger
For many industries, the global recession of 2008-2009 made for tough going. “But even when credit was tight, we were less impacted,” says Trina. “Yes, some of our customers had to jump through additional hoops to obtain credit, but since the second quarter of 2009, we’ve been operating at 100 percent capacity. You’ve got to remember that European economies on the whole now have deep commitments to meet their renewable targets, and that isn’t going to change.”

There were other upsides as well. Thanks to increasing global production, the price of polysilicon, a key raw material, fell from $400 to under $100 per kilogram in 2009. So as the effect of the global economic crisis subsided through 2009, the combination of increased availability of financing for downstream buyers and decreased average selling prices of solar power products contributed to a strong increase in demand for solar power products during the second half of 2009 compared to the first quarter of 2009.

Of course, periods of volatility can make some investors uneasy. But Trina Solar was able to reassure investors by delivering manufacturing cost reductions at a faster pace than declining prices, a scenario made possible by the changing cost structures that Asian companies benefited from compared with their European counterparts.

“If you go back three to four years and you look at the cost structures of our company compared to European manufacturers, the silicon and non-silicon cost structures were basically reversed. Western companies had lower cost long∞term contracts, but we were buying on the spot market – a substantial difference in the price of silicon. We remained confident that the price of silicon was going to come down, so the end game was won by championing our non-silicon costs.”

Changing demand patterns
Regional demand patterns are also shifting. For a long time Germany served as the default end∞market for solar panels, thanks to widespread acceptance of feed-in tariffs (FIT) earned and the ability to lock into these FIT rates for an extremely lengthy period, often up to 25 years. “But Italy is also very big for us now,” says the company. “Seasonality still exists due to weather conditions, but its impacts are diminishing. For example, Italy recently announced that their feed∞in tariffs will now change frequently and more gradually, to avoid the annual year∞end crush to install and commission new systems. The tariffs will remain attractive but the plan is to smooth out the demand curve, making roll-out less seasonal, which is a positive.”

Another area that’s changing is branding and the need for customer-based service and support in local markets – in fact, wherever Trina Solar’s products are sold. “We’re working very hard now to ensure there is not just pre-service support but also post-service support. Branding is a very personal thing for many people. It’s not about just saying your product is good for consumers. It’s about actually getting out there and proving it, and high∞quality locally accessible customer support is very much part of Trina’s strategy in this logistically sensitive industry.”

Trina’s sales network in brief
• Closer to market for product feedback
• Regional warehouses for short response times
• Local professional support staff
• Consistent global brand image

Coming to a roof near you
The surging mass of IPOs during 2006-2007 also started to seriously put solar power on the map as far as investors were concerned. Some of the weaker players were certainly shaken out during the very tough, and almost immediate, recession.
But here’s an interesting thing. While costs were falling – in some cases dramatically – solar panel brand quality was rising. Unlike, for example, the semi-conductor industry, solar power branding is increasingly about promoting individual brand awareness, and a vital differentiating tool in the industry.

Consumers now increasingly identify solar products by the company which produces them, much in the way consumers identify auto brands. “It’s a business involving products that take significant time to ship or redirect based on customer needs, giving you an opportunity to secure customer brand loyalties. That’s particularly true given our products are warranted for 25 years, which is the length of many feed∞in tariff programmes.”

Brand recognition is also reflected in quality surveys and audits. Last year Trina Solar was ranked number two out of 14 international solar brands in terms of whether their marketed power output claims actually met reality. They did.  

New, high profile tie∞ups with Formula 1 also help – a lot. Trina became a sponsor of the Renault Formula 1 team earlier this year with the company’s distinctive logo sitting on the nose of the car. Make no mistake, Trina Solar is taking branding seriously, and that is increasingly important as the company becomes better known in the West. There’s no denying that Chinese brands are not well known globally, but that’s changing fast.  

A focus on innovation and quality
In terms of research and development, Trina Solar focuses on augmenting its ingot, wafer, cell and module manufacturing capabilities, while reducing manufacturing costs and improving the performance of its products. “Our research and development team works closely with our manufacturing units and customers continually to improve our module and system designs,” the company tells us. “We now own approximately 150 patents for technical innovations. Our vertically integrated business model has helped us develop into a leader in the PV industry.”

Of course, producing their own ingots, wafers, cells and modules in∞house allows Trina Solar to ensure quality along the entire integrated value chain as well as to maintain one of the lowest cost structures in the industry.

In September 2009 it launched its “Trina Solar Center for Excellence”, which includes a broad range of quality-control tests and procedures including product certification processes, material reliability and evaluation tests, and research facilities. The Center is equipped with advanced testing equipment similar to that found in internationally recognised, independent certification facilities. All equipment and testing procedures are done in accordance with rigorous, internationally recognised standards (UL1703, IEC61215 and IEC61730, to be exact).

“At our Center for Excellence, we put our modules through extreme environmental test conditions to ensure their reliability and performance. The platform also allows us to evaluate the latest materials, enhancing product quality and saving money over the long term. This means we can confidently provide our customers with a 25-year output warranty,” says the company. Meanwhile, new partnerships are sprouting up all the time. The company recently signed a partnership with the Massachusetts Institute of Technology. The deal means that Trina Solar now joins MIT in its Industrial Liaison Program that focuses on promoting university/industry collaboration and technology transfer.  

“We are very excited to announce this collaboration with MIT, one of the world’s leading research institutes, which is expected to strengthen ties between Trina Solar’s State Key Lab of PV Science and Technology and MIT’s research teams,” said Mr. Jifan Gao, chairman and CEO of Trina Solar when he announced the partnership. “Trina Solar and MIT share the same commitment to developing high∞quality solar electricity solutions for businesses and households worldwide and the Industrial Liaison Program is a great way to bring together top minds in the industry to help drive innovation.”

Changing times
So just how will the PV industry changed in the next 5∞10 years? It’s a good question given the pace of change in the solar industry. Costs are almost certain to fall, while more specialized application products will appear. “Products like architecturally friendly black modules and extended high∞output modules have been around for some time now, but they have been premium priced products. We’re now leveraging our manufacturing efficiencies to bring these products to mainstream customers.”

Though speciality solar roofing materials already exist that can generate electricity, they produce at a much lower efficiency rate than solar panels. Though the company is following the development of such building-integrated technologies, its current focus is to extend high quality, high efficiency product advantages to maximise the investment return of the end-user.

“The priority for us is coming in at the right point with market driven products and solutions. For example, to address the larger utility scale projects, we are introducing larger and wider modules to lower overall system installation costs,” says Trina Solar. “We should also see an increase in specially sized modules for smaller, one∞off areas. For building owners it will increasingly be about squeezing every last watt from your roof area. So there will be a wider range of products to choose from to cater for those needs.

Energy prices
What about energy costs? Will they rise or fall? You would think it’s a question of crucial importance for a solar energy player. The company highlights an interesting point. Yes, they acknowledge, traditional energy prices should climb long-term. “But we’re not altogether dependent on prices rising. There already exist varying regional examples where current grid prices translate to compelling economics. For example, in California, peak commercial users increasingly pay far more for their energy use than ordinary residential users. And in places like the Philippines, the cost of energy is huge – far more in terms of most people’s earning power than in places like the US or China. So it’s hard to generalise. But there are certainly huge opportunities.” Don’t forget, too, that part of Trina Solar’s success is its ability to manufacture at huge scale. In that sense, many predict that Chinese companies like Trina Solar will come to dominate the global solar panel market in the way the Japanese dominated the consumer electronics market for the last 40 years. It’s widely estimated that China’s solar manufacturers, including Trina Solar, have taken 43 percent of the global photovoltaic-panel market since 2004. And their heft gives them huge economic advantages, often enabling companies like Trina Solar to pass cost savings of at least 20 percent compared to their Western rivals.

Not forgetting the environment
As a global community, improving standards of living always comes at a cost. And as people consume more electricity every day, the question of how we generate that electricity becomes critical. Inevitably if people continue to rely on fossil fuels and emit ever-greater amounts of greenhouse gases, the damage to our environment and ourselves may become irreversible.

Trina Solar has put huge resources behind ensuring that their own waste challenges are met responsibly. “We have devoted significant efforts to reduce to acceptable levels the waste and by∞products caused by our manufacturing processes. We have installed anti-pollution equipment to neutralise, treat, and where feasible, recycle the wastes generated in our manufacturing processes, which can also carry economic benefits and further reduce our costs.”

Climate change, the company notes, knows no boundaries. “Ultimately, we need electricity generation that is environmentally sustainable, economically feasible, and easily implemented on any scale, from our roofs to our power plants.”

It’s not just about acting responsibly. It’s also increasingly evident that government policy in China is getting behind solar energy to a degree that may rival western markets, as with wind energy. In a sense, China has little choice. Recently, China overtook the US as the world’s biggest energy user. It’s also the world’s biggest coal consumer. No wonder that it’s taking solar energy and running with it hard.

“The value of a solar installation working alongside your traditional supply is starting to look exciting and attractive.”

“We believe market growth will be driven largely by increasing affordability and rising grid prices.”

“The Obama government is increasingly backing solar power and as it does so the US market is emerging as one of the top growth areas.”

A little history
Trina Solar Limited was established in December of 1997 by Jifan Gao, now chairman, working with a small group of scientists during the infancy of the solar PV industry in China. Inspired by the growth of the solar PV industry abroad and particularly the Clinton administration’s ‘Million Solar Roofs’ initiative in the United States, Mr. Gao’s initial plan was to create a solar PV system installation company focused on providing solar energy to different regions in China. After much hard work and dedication, the team successfully launched China’s first solar PV house in August, 2000. Trina Solar then established itself as a leader in the field of solar PV. In cooperation with the Chinese government, Trina Solar helped to establish the first “China National Stand-alone PV System Technology Standard”. In order to promote this important milestone, Trina Solar hosted the First International Solar Power Technology and Marketing Forum in Changzhou in September, 2000. The rest, as they say, is history.

The names behind Trina Solar
Jifan Gao
Chairman and CEO
20+ years of management and entrepreneurial experience
Visionary founder of Trina Solar in 1997
Standing Vice Chairman of the New Energy Chamber of Commerce of the All-China Federation of Industry and Commerce

Terry Wang
Chief Financial Officer
20+ years of experience in finance and accounting
Former Executive VP of Finance at Spreadtrum (NASDAQ: SPRD)
Former [financial] controller at one of the world’s largest NASDAQ-listed semiconductor assembly and testing companies

Sean Tzou
Director and Chief Strategy Officer
23+ years of experience in supply chain management
Vice President of Solectron Asia-Pacific Services
Previously a Senior Executive of several global business units at Solectron

Further Information: www.trinasolar.com

A leader in renewable energy markets

In May 2010, the rural property of the farmer Nelbio Bronstrup, located in a small town in the Parana countryside, Brazil, received the first batch of materials to adapt his farm to a pioneering project in the country – the Condominium for Renewable Energy of Household Agriculture. It is an initiative led by the world’s largest hydroelectric power plant regarding power generation, the Itaipu Dam. Bronstrup’s farm, where he and his family raise 27 milch cows and 30 heifers, among other 40 rural properties located in one of the drainage basins of the Paraná region, will start producing energy from farming and cattle raising waste.

The project encompasses the company’s efforts into undertaking research and development of alternative sources of clean and renewable energy. The power plant is installed in the Paraná River located on the border between Brazil and Paraguay, both responsible for the administration of Itaipu. Besides its remarkable production in 2009, when it exceeded 91 million megawatt-hours, its performance related to sustainability has come to international prominence.

Each year, the company performs more and more sustainable development actions in the region where it is installed.

The Condominium for Renewable Energy of Household Agriculture integrates the Itaipu Platform for Renewable Energy, which is installed in its Technology Park, in Foz do Iguaçu, home to the plant. In partnership with local governments, educational and research institutions, farmers associations, cooperatives and non-governmental organisations, this initiative promotes research and technology for four sources of energy still poorly explored – wind, solar, biomass and hydrogen. In addition, the platform also researches new uses for the power plant’s main product; such as the development of electric vehicles.

The Itaipu Platform has already obtained practical results from several lines. The most important due to its environmental component is the generation of biomass energy. Paraná’s Western Region, where the plant is located, is one of the largest producers of chicken and pork in Brazil. The animal husbandry strengthens the local economy, but also has a large quantity of waste and effluents. Until now, most of that stuff was just dumped in streams and tributaries of the Paraná River, contaminating the Itaipu Reservoir.

Thanks to the programme, the waste is now transferred to biodigesters that convert organic material into methane gas and fertiliser. Biogas is used for producing electricity used by the farmers. There are six prototypes in operation, including a pig farm, a dairy farm, a poultry slaughterhouse and an agro-industrial crop production. In the most advanced of these projects, developed in the Colombari farm in São Miguel do Iguacu, the energy resulting from the excreta of 3,000 pigs feed the rural property with energy while the surplus electricity can be sold to the public distribution company. The biofertiliser is a byproduct of such process. According to Jose Carlos Colombari, swine producer and partner of the project, there are several benefits. “We save energy and also fight environment pollution.”

The Condominium for Renewable Energy is one more step towards the environmental sanitation that has been taken by the programme Cultivating Good Water that works on drainage basins, internationally acknowledged to be another important action of Itaipu. According to the company’s superintendent of Renewable Energy, Cicero Bley, the condo project responds to the big challenge of introducing smaller producers into the bioenergy market. “It’s a project that can be easily replicated in other parts of the country, especially in Southern states, where there is a strong agricultural production with animals kept in stable,” he says. After the physical adequacy of rural properties, the digesters will be installed, followed by the construction of the main pipeline and finally the MHP thermoelectric.

In March, the Itaipu Technology Park implemented the first laboratory for research on biogas in Brazil. In this laboratory, the potential of different organic materials (such as plants or animal waste) used for producing methane gas or biogas can be studied. The research is important to guide farmers in the region who may be interested in installing digesters in their rural properties.

Last year, another partner of the Itaipu Platform, Cooperativa Agroindustrial Lar invested R$4m to transform chicken excrement into energy from its slaughterhouse refrigerator installed in one of the municipalities of Paraná countryside. In no time, the investment should be recouped due to annual revenue of approximately 120,000 euros from the sale of carbon credits, since the cooperative shall cease to emit 20,000 tons of CO2 into the atmosphere.

Tail wind
A study carried out by the Itaipu Renewable Energy Platform has proved the potential of wind power in 29 Brazilian municipalities (28 from Paraná and one from Mato Grosso do Sul) by the shore of the hydroelectric power plant lake where over one million inhabitants live. Cooperativa Lar conducts tests to verify the feasibility of using wind turbines in its production units. The study found that farms from that region – 80 percent of them small, with less than 30 hectares – can adopt a hybrid system of supply, gathering energy from wind, biomass and solar energy, other source that has been researched by the Platform.

Since 2003, the Itaipu Platform conducts a feasibility study on the production of hydrogen from electrolysis of water that supplies the plant. This study, whose production experimental plant is already being installed, is the basis for developing an absolutely clean fuel with zero emissions of greenhouse gases.

Itaipu has used over 25 years of experience in power generation for researching new electricity use and developing an electric car prototype. The Itaipu Electric Vehicle is the result of a partnership, signed in 2006 between the power plant, Fiat Automóveis and the Swiss subsidiary KWO. The design of the 100 percent electric car allowed the development of a totally green vehicle, with zero emissions and almost no noise. Currently, there are 21 Electric Palio Weekend cars being used by companies involved in the project. The goal is to produce 50 more vehicles by the end of this semester.

An electricity-powered cart to collect recyclable materials is another highlight of the Itaipu Platform. About 81 electric carts have been manufactured by now. They are working throughout the surrounding counties of Itaipu Lake and other municipalities in Brazil reached by the Collectors Movement. The transport has capacity for 663 pounds of cargo and the autonomy to run 4-5 hours, or 15-19 miles.

The programme that tries to identify renewable energy sources for the triple frontier area is supported by another social and environmental project. Since 2003, Itaipu has coordinated the Cultivating Good Water programme, which is responsible for maintaining the totality of its reservoir of 29 billion cubic meters of water by means of sustainability initiatives. In seven years, the adequacy of rural roads and watershed implementation has been promoted by Itaipu (to prevent rain water drips from farms into rivers, causing erosion and polluting it with pesticides), and two million trees have been planted to replenish riparian forests that protect the springs. The programme also collects empty pesticide containers, encourages organic farming and sponsors waste sorting in the cities.

Case study
A programme of the Itaipu Dam, developed with over 2,000 partners, shows that respect for nature does not inhibit economic development.

Farming has always been considered one of the main villains of the environment, due to the vast tracts of land needed for producing grains and meat in a large scale. But in Western Parana, an experiment led by the Itaipu Binacional that brings together more than 2,000 partners, community associations, cooperatives, educational institutions, local, state and federal governmental agencies and NGOs, has demonstrated that production and economic development may coexist with respect for the environment.

The main objective of the Cultivating Good Water programme is to recover environmental liabilities, by promoting environmental education and changes in the production and consumption of the communities located throughout the watershed. For example, the farmer Luiz Antonio Arruda from São Miguel do Iguacu has made the conversion of his rural property into organic agriculture. “I was sick of messing with poison,” said the farmer, who came to be hospitalised for poisoning by agrochemicals.

Besides the health issue, he struggled to keep conventional farming, especially with its dependence on inputs. Today, Arruda produces cucumber, coffee, Brazilian cherry, guava, pineapple, among other products with certification of organic production. The income has nearly tripled with the Organic Life marketing fairs promoted by Itaipu throughout the municipalities, the adoption of organic products by public schools, and selling to the government, through the Brazilian programne Fome Zero (Portuguese for Zero Starvation).

The concept of green farming has also allowed Arruda to open a new business: rural tourism. Groups of tourists from Europe, North America and neighbouring countries come to Brazil to know about the organic production on his rural property. According to Arruda, the technical support he receives from the staff of the Cultivating Good Water programme allows him to increase business with a little product processing. Instead of selling fruit, for example, he sells the pulp ready for consumption, his main source of income. “The quality of life we have today I would not trade for anything,” he assures.

Altogether, the Organic Agriculture programme has 26 technicians working in 29 counties that are part of the Paraná Basin 3 (a set of watersheds connected to the reservoir of the dam). The free technical assistance is a cornerstone of the programme. Currently, about 1500 farmers are following the example of Arruda and adopting agro ecological techniques of culture.

High productivity
Not only the ecological production is favoured by the Cultivating Good Water, but also a series of actions are carried out by Itaipu and its partners. Among them, there are soil conservation and protection of springs and watercourses, such as terracing, readjustment of rural roads, installation of community water supply, and planting and conservation of native species of trees in riparian forests. Thus, Itaipu contributes to agriculture in the region as a whole, assisting in the retention of the two main natural resources of the Western Paraná: deep and fertile soil, and water in abundance (as guaranteed by rivers such as Parana and Iguaçu, and the Guarani Aquifer by the reservoir of the Itaipu hydroelectric plant, more than 170km long and with 29 billion cubic meters of water pooled).

The high productivity of Western Parana is helping to consolidate its position as the largest grain producer in the country. In 2010 the state will collect a volume of 30.3 million tonnes. This year, for example, farmers in the West of Paraná are celebrating a historic result: the best growing season ever recorded by the Department of Rural Economy (Deral) of the Ministry of Agriculture and Supply. The regional survey is still preliminary, but is now virtually complete. Productivity increased 73 percent over the 2008/2009 season, averaging 3,500kg per hectare. In some municipalities, such as Itaipulândia, increased productivity reaches 247 percent. “It’s the best season of all time,” says Esser Jovir Vicentini, an economist at DERAL.

The farmer Aderbal Boff is one of those celebrating the excellent results of the 2009/2010 harvest. He has just finished the harvest of soybeans in the two areas where he used to plant: his own 150-hectare farm in Itaipulândia and a lease of 180 hectare. At the first harvest, he had recorded an average yield of 7,705 pounds per bushel. The second was even better with 8,686 pounds per hectare.

“Technology, fertiliser and seeds were the same as in previous years. The difference is that it rained a lot and at the right time”, says Boff, who has been in Paraná since 1965.

What it is and how it works
Created in 2003, Cultivating Good Water is characterised by community participation and management of watersheds.

Created from the change in the institutional mission of Itaipu, in 2003, the Cultivating Good Water programme is a set of strategies to ensure the sustainability of an entire watershed. From the identification of key environmental liabilities in the region of the plant (water contamination by pesticides, sediments and organic matter erosion, and loss of biodiversity), a series of corrective actions have been taken, inspired by planetary documents such as the Earth Charter, the Treaty of Environmental Education for Sustainable Societies and Agenda 21.

The two main differences of the programme are based on the methodology of participatory management and river basin-oriented planning. Each watershed has a steering committee (established by municipal law in 2009),
composed of civil society organisations such as neighbourhood associations, trade associations and cooperatives, and government environmental agencies and public ministries, among others.

Another methodology differential involves the rise of awareness, the diagnosis and the participatory planning of corrective actions, reaching the agreement to commitments (Water Treaty). Until now, the programme is in 127 watersheds. According to Maria Concepcion Donosco, coordinator of UNESCO for Latin America and the Caribbean, the programme is considered a model for watershed management.

Itaipu Binacional, which prides itself on being a leader in clean energy production, aims to be an acknowledged institution for its commitment to sustainable development.

The truth about our energy future

For many of us, our knowledge of energy begins and ends with the flip of a light switch, or the insertion of a nozzle into our car’s gas tank. Seldom do we stop and contemplate what goes on behind the scenes, and the complex choreography taking place around the globe to deliver energy to our fingertips.

Energy is fundamental to human existence. It is as important as affordable food, clean air and water. Part of the reason we saw energy prices escalate so dramatically in 2007 and half of 2008 is that millions of people in developing nations were being lifted out of subjugation, creating a period of rapidly increasing demand worldwide. This was a good thing as it represented more and more people in India, China and other nations gaining access to energy. And while the demand for energy has slowed during the current economic downturn, the truth is that the world’s increasing demand for energy means securing our nation’s long-term energy future will require all forms of energy, especially oil and natural gas.

According to the US Energy Information Administration (EIA), the world will require 50 percent more energy in 2030 than it did in 2005. Alternatives and renewables will play an increasingly important role in meeting that demand, yet the EIA estimates that those sources will still only account for less than nine percent of the energy produced in 2030, while oil and natural gas will account for just under 60 percent of all energy produced.

There is no way around it for the foreseeable future – our world needs to continue to invest in and develop oil and natural gas resources. Without continued investment in these resources, demand will rapidly outpace supply, resulting in tremendous price escalation for every individual who uses energy.

The truth about climate change
I have spent my career around scientists who study rocks that are millions of years old. Understanding the formation of the rock, depositional characteristics and the climate conditions that existed at the time are critically important to finding oil and natural gas. Looking back through millions of years, there is evidence of ancient time periods where global temperatures were significantly warmer than today and where carbon emissions were significantly higher than today. The science is clear that the planet has undergone numerous periods of heating and cooling prior to the industrial age.

Climate is incredibly complex; however, I suspect that nearly all of us agree that we want clean air and that emissions should be addressed in a practical manner that is environmentally effective and economically responsible. To this end, I strongly believe that science, not politics, should lead the way in driving adoption of renewable energy sources and in developing sound energy policy. The science of our own business continues to evolve and we are applying it to reduce emissions and deliver more resources to the American people.

I am proud of the environmental record of America’s oil and natural gas industry, which invested more than $42bn in new low- and zero-emissions technologies between 2000 and 2006. This amount represents nearly half of the total spent by all US companies and the US federal government combined, and our industry’s investments continue.

One example of this commitment to emissions- reduction technology that my company, Anadarko Petroleum Corporation, is implementing is our enhanced oil recovery, carbon sequestration project at the Salt Creek oil field in Wyoming. Salt Creek is among the largest carbon-sequestration projects in the world. We are injecting carbon dioxide, which would otherwise be vented to the atmosphere, under ground into a 100-year-old oil field. The CO2 is sequestered and creates pressure that improves the production of oil. This project alone currently sequesters enough CO2 each day to offset the equivalent emissions of more than half-a-million automobiles. In addition, Anadarko and other companies like ours are voluntarily partnering with the US Environmental Protection Agency in the Natural Gas STAR programme. Since joining the programme in 1996, Anadarko has achieved cumulative emissions reductions of over 38 billion cubic feet of gas, equivalent to the emissions of 2.8 million cars.

Another important part of reducing emissions is increasing our nation’s usage of natural gas – the cleanest-burning fossil fuel. Anadarko is one of the leading independent producers of natural gas in North America, which includes our massive Independence Hub development in the deepwater Gulf of Mexico. This amazing project broke numerous world records for deepest producing platform, deepest pipeline and deepest sub-sea infrastructure in water depths greater than 8,000 feet. The project is currently producing enough clean∞burning natural gas to meet the energy needs of more than five million average American homes each day. This is accomplished from a single floating structure about half the size of a football field and more than 100 miles offshore, well beyond the view from any beach. Projects like this require billions of dollars of investment, deliver clean-burning American energy, create American jobs and can be replicated as long as our government’s energy policy does not restrict our industry’s ability to do so.

Finally, conservation matters and its importance is often overlooked. All manufacturers, businesses and individuals should be conscientious about the energy we use. We should constantly strive for improved efficiencies and conserve where we can. Using less is a personal choice for many of us, and should be a focus every day.

The truth about energy policy
As I’ve pointed out, oil and natural gas will continue to make up the vast majority of our energy mix for the foreseeable future. Our industry has proven its ability to develop these resources safely while respecting the environment. We’ve also demonstrated our commitment to addressing climate change through the tens of billions of dollars we’ve invested in new technologies aimed at reducing emissions. Politics remains the most significant challenge to securing an energy future consumers can afford. Our citizens deserve a balanced, fact-based energy policy that promotes energy efficiency, conservation and greater supplies of all forms of energy.

Raising taxes, even indirectly, in a time of economic decline is fraught with risk. An example of this is the Obama Administration’s budget proposal that calls for an estimated $400bn in new taxes and fees on the American oil and natural gas industry. This policy will result in higher energy costs for every American by reducing investments in the exploration and production of oil and natural gas. A recent study estimates it will result in the loss of more than 270,000 jobs annually, and will very likely prolong the recession, further stifle job creation and increase America’s reliance on foreign sources of energy. Similar policies have been attempted in the past, and they have failed in dramatic fashion.

There’s a better, more constructive path toward our energy future. It involves opening up access to domestic resources offshore and onshore. Norway, one of the most environmentally sensitive nations in the world, produces its own resources for the good of its people. America has the resources, yet we are one of the only nations in the world that keeps much of our own resources off limits. Opening these areas in the eastern Gulf of Mexico and offshore from the east and west coasts of the United States could generate more than $1.7trn in revenue for the US government – more than four times the amount of the Administration’s current tax proposal. Plus, it could create more than 160,000 new jobs by 2030 and would clearly lower the cost of future energy for consumers while improving our nation’s energy security.

At Anadarko, our mission statement emphasises our commitment to explore for, acquire and develop oil and natural gas resources vital to the world’s health and welfare. I can only hope that the world’s political leaders will share the same commitment to the truth about our energy future.

More information: www.anadarko.com

Full of life

The brainchild of Masiya Net, Life Energy was founded in 2009 with the chief aim to explore the potential of introducing viable and innovative energy sources to the Gulf region. The company’s tender age may come as a surprise, as it displays a lot more authority than a firm with a mere two years to its name. Despite being a new comer to the industry, Life Energy is one of the fastest growing renewable energy companies on the market today, and it has successfully developed a concept that explores new avenues in the energy sector. Its repertoire is extensive and brings together a cross-section of different components including energy management, solar and wind energy, energy efficiency, hybrid systems and waste to energy services and support.
Focusing specifically on the Gulf-region, the forward∞thinking company aims to provide the area with innovative energy sources that are truly state-of-the-art in style, and even in certain cases, tailor-made to suit the specific needs of each client. Drawing upon the experience and expertise the firm holds, Life Energy is aiming to actively engage in energy saving and energy management activities locally and regionally, as well as on a global scale. International expansion is already underway and the company has pushed for geographical and operational diversity by entering other markets including Africa and the UK.

A route to success
So what’s behind the success and rapid growth of the company? “As one of the integrated solution providers in Kuwait, we believe that our success is ultimately derived from our customer’s success. We partner with our customers to reach their objectives. Also, we believe that our successes and progress are the direct results of our commitment to provide our customers with the product, solution, support, and after sales support,” read a recently published company statement celebrating Life Energy’s second year.

But these quality characteristics haven’t arisen out of nowhere. Crucially, Life Energy put much focus on its management team, and in return, the employees’ faithful dedication is reflected in the company’s notable achievements. In line with the staff-focused approach, staff training is key. Understanding that it’s crucial to establish a high level of expertise in order to offer the best possible advice to customers, Life Energy has invested significantly in training programmes for their technicians and engineers so as to ensure that they’re fit to provide the highest level of professional support to existing and new clients. An integral factor Life Energy also focuses on is the establishment of strategic alliances, locally and internationally. 

Another contributing factor to the multiple successes the company has enjoyed is its pioneering soul and its dedication to supply solutions coupled with a desire to keep developing within the ever- progressing market that spans renewable energy, energy management and the array of green building solutions.

A promising future
By pushing boundaries and offering tailor-made packages to a wide plethora of clients – all with uniquely different needs – Life Energy has achieved a respectable status in Kuwait, the Gulf region and beyond. To boost its reputation further, Life Energy maintains high standards and the businesses success is backed by healthy finances.

Continuing on its winning path, the next few years will see revenue growth and international expansion with continued focus on providing customer satisfaction.

To strengthen its position and to give its competition a run for its money, Life Energy and its partners have an advantage in that they boast sound experience in the areas of implementation and integration. On a local level, Life Energy has formed strategic alliances with unique partners in the field such as National Technology Enterprises Company (NTEC), a technology projects development company with a mission to lead in the development and application of leading edge technology, and ENMAA, a leading integrated real estate services company in Kuwait. On an international level, Life Energy has established partnerships with leading companies such as: Heliocentris, P21, Solyndra, Brisban, Zephyr, Eltek Valere and HEI Solar Light, leaders in the renewable power and energy conservation fields.

The company’s experience is multi-faceted, stretching from strategic thinking and project management to business analysis and developing integrated service models. Each undertaking is carefully tailored to suit any complex environment, which helps to ensure that the services are provided efficiently and professionally. The high level of skills and experience displayed by the support engineers that serve the company is an all-important tool, coupled with the company’s diversified experience in implementing and supporting solutions in different environments. Life Energy takes it in its stride to deliver a well-balanced delivery mechanism that focuses not only on the technical components of a solution, but also addresses a range of important aspects that will result in a successful venture with a promising future.

Proven track record
Since the company was established, it has prospered within the energy industry, racking up a good track record from a slew of respected clients. Catering to a range of different segments such as telecoms, governmental, educational organisations as well as the oil sectors, some of Life Energy’s most notable clients include: Wataniya Telecom Kuwait, Viva Telcom Kuwait, Kuwait Institute for Science Research, Renewable Energy for Kuwait Oil Company, Oasis and Advanced Monitoring Site Solution KOREK Iraq.
Some noteworthy projects that form part of Life Energy’s list of merits include: successfully demonstrating fuel savings of 24 percent through live network trials for Wataniya Telecommunications (QTel) via Wataniya Hybrid Solution using numerous energy manager solutions. Currently, Life Energy is working as an EPC contractor for the Kuwait Institute for Scientific Research (KISR) on testing the latest photovoltaic technologies under local weather conditions. This project is of high importance as it will help establish the national test platform for grid connected PV systems. Life Energy has also installed state∞of∞the∞art HEI solar street lights in one of Kuwait’s most prominent landmarks – the Kuwait Scientific Centre. tne

For further information
Tel: +965 222 50 222
www.thelifeenergy.com

Generating success in a relatively new market

Listed (EURONEXT LISBON) since June 2007, Martifer (MAR PL; MAR.LS) is an industrial group with approximately 4,000 workers present in 16 countries. In 2009 its operating revenue reached 606m euros, posting in the last four years average growth rates above 32 percent. Martifer started its activity in 1990 in the metallic structures sector, conquering the Portuguese market in only six years. Since 1996 the Group has extended its activity to new construction solutions, stainless steel and aluminium structures. Currently Martifer is engaged in three business segments: power equipment for the wind industry, engineering and development of new technologies for electricity production through renewable sources; solar photovoltaic, with one of the most automated production lines with capacity for 50 MW; promotion and development of renewable energy projects, which has 104 MW of operating wind and solar parks, and more than 3 GW under development. With 18 plants in operation worldwide, Martifer has a 20-year history of success.

Metallic construction
Martifer Metallic Constructions is the Iberian market leader in the sector and one of the largest players in Europe. It has industrial facilities in Portugal, Poland, Romania, Australia, and recently in Angola, with a total installed capacity of 80,000 tonnes per year. With a vision of leadership in all the markets where it operates, Martifer Metallic Constructions focuses its development strategy on the high-growth countries of Central Europe and Angola. In mature markets, such as Iberia and Ireland, it seeks recognition from the quality of its engineering and the ability to lead projects of great complexity. Martifer’s portfolio demonstrates its ability to meet goals and overcome challenges, ensuring excellence in all the projects it completes. Essentially dedicated to the execution of projects with a high level of complexity, using in-house design and engineering, complemented by a vast on-site construction team. It executes projects with a high level of steel structure, aluminium façades and glass and stainless steel solutions. With operating revenue of 315.5m euros and an average of 2,146 employees in 2009, Martifer Metallic Constructions is present in 12 countries and is considering the entry into high growth markets like the United Kingdom and Brazil.

Steel structures
Parent company of the Martifer Group, Martifer Metallomechanic Constructions has 20 years of experience in the construction of metallic structures, having participated in the most emblematic works in Portuguese history in recent decades, such as the Expo98 and Euro2004 stadia. With a strategy based on operational excellence and efficiency, Martifer Constructions is recognised as a trustworthy and superior quality partner, capable of carrying out highly complex projects on tight deadlines. The recognition of its quality and competence is reflected in clients’ satisfaction and in the numerous awards accumulated over the years, especially those in the last three editions of the European Steel Design Awards, which awarded three of Martifer’s works: “Dragão” Stadium, “Francisco Sá-Carneiro” airport, and in 2009, the Bridge of Leixões, confirming the competence capability and engineering expertise for large projects. With recognised experience in different types of metallic structures (such as stadia, airports, bridges and tall buildings), in various geographies (especially in Europe and Africa), Martifer is currently one of the largest European players in its segment.

Aluminium
Part of the Group since 1999, Martifer Aluminium specialises in designing, engineering and implementing solutions for façades and building covers. Iberian leader in its segment, it works on the principal of trust, responding efficiently and innovatively to complex requests. The company’s rigorous work methodology combined with the technical capabilities of its employees and the use of the latest technologies and most advanced materials results in the full materialisation of architectural intentions. Martifer Aluminium is present in eight countries and has an outstanding portfolio that demonstrates its ability to execute imaginative solutions and bold and innovative projects as diverse as the “Francisco Sá-Carneiro” airport, the new Terminal 2 at Dublin Airport or the Congress Palace of the Expo 2008 in Zaragoza.

Stainless steel
Integrated in Martifer Constructions since 1996, Martifer Inox’s activity has increased in order to take on large projects, such as football stadiums, shopping centres, airports and public works, clearly benefiting from the Group’s synergies. Human resources competence associated with the underlying technology of its  production unit allowed it to reach for technical rigor which is recognised by clients and the capacity for conception, management and realisation of projects.

Aware of business opportunities and conscious of the importance of water for the future, Martifer Inox has been developing solutions in wastewater treatment since 2007, both in its structural component (stainless steel structure) and in its chemical component, with the objective of asserting itself as a company that combines high environmental consciousness with the most advanced technological resources.

Renewable energy
Today, environmental concerns must be more than an attitude, they must be a way of life and business. Martifer embraces this issue and proposes renewable energy solutions, with a key role in reducing CO2 emissions, making an important contribution to environmental preservation. Thus, it acts in the field of renewable energy in three ways: through Martifer Energy Systems providing equipment for wind energy; in Martifer Solar creating solutions that take advantage of solar photovoltaics; and with Martifer Renewables developing renewable energy projects.

Energy systems
Created in 2004, with the start up of the tower factory, which produces steel towers for wind power turbines, and the wind farm turnkey activity (BoP/EPC), Martifer Energy Systems began as a natural step into the renewable energy sector, collecting synergies, know∞how and leveraging on Martifer’s competencies in steel works, project management and vertical construction. The concern for environmental issues and search for sustainable solutions for the future have led the company to extend its activities in the wind sector, engineering and in the R&D of new technological solutions in the production of energy from renewable sources. Martifer Energy Systems has three industrial facilities in Portugal – production of wind towers (400 towers/year), components and assembly of generators in Joint Venture with Repower Systems (50/50). In the US, in partnership with Hirschfeld Industries, it has a wind tower factory with a 200 tower per year capacity, operational since the first semester of 2010. The company also controls 100 percent of Navalria, a shipyard located in Aveiro, Portugal, which specialises in ship building and maintenance, and the development of solutions for offshore energy. Present in six countries, this activity recorded revenues of 154.5m euros in 2009 and employed 587 people on average.

Solar energy
Martifer Solar is Martifer’s company dedicated to the development and construction of photovoltaic projects, installation of photovoltaic parks under turnkey or EPC contracts, development of architectural integration projects and microgeneration. It currently has one of the most automated production lines with capacity for 50 MW. The company has been working to be on the forefront of solar photovoltaic energy, combining the technical flexibility of its solutions with the quality of its products. To ensure an integrated solution to its customers, besides the photovoltaic modules Martifer Solar also provides solar tracking systems (Smartracker), solar parking lots (Smartpark) and a proprietary solution for rooftops without the need of drilling holes. It is present in Portugal, Spain, Italy, France, Belgium, Greece, United States, Czech Republic and expects to enter into new markets such as Turkey, Bulgaria and Canada. In Portugal Martifer Solar also operates in the energy efficiency area through Home Energy, which develops projects for the installation of solar energy solutions in households for microgeneration and the energy certification of buildings. The investment and constant development of its Research and Development department allows Martifer Solar to be at the vanguard of solar energy, with innovative solutions in the various business areas. Martifer Solar recorded an operating income of 130.5m euros in 2009, with an yearly average of 290 employees.

Sustainable and profitable

In times of change society needs visionaries. People with the courage to conceive new solutions beyond our current insight. People who lay their pioneering spirit at the service of our society and a better future. With this goal in mind and with the support of strong partners, Bertrand Piccard and André Borschberg, initiators and future pilots of Solar Impulse, are attempting to redefine the limits of human achievement. Their aim is to fly around the world in 30 days, powered solely by the sun.

The “Solar Impulse” airplane will take off and fly for several days and nights without using any fuel or emitting any pollutants. It will have a wing span of 80 metres (comparable with an Airbus A380) but will only weigh 2,000kg, not much more than a medium-sized car. 12,000 solar cells will generate energy during the day. This will be stored in extremely powerful, light-weight batteries and released at night. The dream of endless flight could become a reality – if it were not for the limitations of humans. Hence, there will be a stopover on each continent to allow for a change of pilots after five days and nights of non-stop flying during the round-the-world flight in 2011.

Now a decisive milestone is just around the corner: after years of intensive construction work and countless endurance, vibration and wind tunnel tests on individual parts, the Solar Impulse prototype is to be presented to the world public. A global premiere, which can be followed live at www.db.com/solarimpulse. The first test flights of the prototype are scheduled for the autumn, and in early 2010 the first 36-hour flight will prove that it is possible to fly through the night relying solely on the power of the sun. One thing is certain: the record round-the-world flight will set an example. “If an airplane can fly day and night without fuel, don’t tell me that our society cannot also do without fossil fuels,” emphasises Piccard. Solar Impulse will show that sustainability can and must be profitable. This is a conviction shared by Deutsche Bank, a Main Partner of the project. “Solar Impulse embodies our whole environmental commitment in a tangible and imaginative way,” underlines Dr. Josef Ackermann, Chairman of the Management Board and the Group Executive Committee of Deutsche Bank.

Out of the awareness that economic productivity, social responsibility and the protection of our environment are inextricably intertwined, Deutsche Bank has committed itself far beyond its core business to sustainability – with the clear goal of becoming a leading “Sustainable Bank”, as Hanns Michael Hölz, the bank’s Group Sustainability Officer, explains.
“Already in 1999 we established a global sustainability management system. Today, against the background of our comprehensive climate strategy, the bank’s entire energy needs in Germany, Italy and Switzerland, among others, are covered with renewable energies.”

The headquarters in Frankfurt will be one of the most eco-friendly high-rise buildings in the world once reconstruction of the “Greentowers” is completed in 2010, and by 2013 all business activities worldwide will be climate neutral. To enable its customers to take advantage of the enormous market potential of ecological and socially sustainable investment possibilities, the bank offers a wide range of respective services and products. Especially in times of change, these produce an excellent opportunity to invest in our own future and that of the globe.

“If we want to be successful in life we must develop the ability to think the opposite of what we have thought and done so far!” is how Piccard sums it up. Solar Impulse shows us how.

Africa losing billions in clean energy deals

Eduardo Gonzalez, Spain’s representative to the Global Wind Energy Council (GWEC), said the world’s poorest continent fares worst among other regions when it came to wind power generation.

Wind installed capacity in Africa and the Middle East is seen rising to about 5.1 gigawatts in 2014 from 1.5 GW in 2010, lower even than in the Pacific region, where capacity was seen rising to 6.4 GW in four years time from 2.9 GW this year.

“In the absence of the right wind measurements, political stimulus, regulatory framework and economic support, heavy investments in the renewable sector are going somewhere else,” Gonzalez told reporters on the sidelines of an African wind energy conference.

Gonzalez said the GWEC estimated that total global new investments in clean energy projects would top $200bn in 2010, rising from last year’s $162bn.

Global wind energy supply is expected to rise by 160 percent over the next five years with China and North America leading the low-carbon push, the GWEC said in April.

Gonzalez said Africa had “extremely good” wind potential, especially in the Gulf of Suez in Egypt, in Morocco towards the western Sahara and in the Western Cape of South Africa.

South Africa’s wind industry is the least developed with less than 10 MW of capacity in comparison to 400 MW in Egypt.

In April. promise was also shown in Tanzania and Kenya, where power utility KenGen invited companies to carry out feasibility studies on nine new wind sites as it seeks to diversify its energy mix.

“However, very little wind measurements have been taken in Africa and in order to develop projects we need measurements,” said Gonzalez.

He said African countries, fearful of expensive feed-in tariffs, should rather consider tax credits to encourage private investment as it moved to build its renewable energy sectors.

African wind investments
Gonzalez, also the communications manager for Spain’s largest power utility Iberdrola, said they expected a final answer from Egypt next year on a 400 million euro ($508.1 million) 300 MW wind project bid in the north African nation.

“By the third quarter of 2011 we expect an answer,” he said, adding that, if successful, the company would install the wind turbines and operate the Gulf of Suez wind farm for 20 years.

However, he said Iberdrola would not invest in South Africa, the continent’s biggest economy, until there was stability in the regulation of the wind energy sector.

South African power utility Eskom intends procuring a 100 MW wind farm, which could be scaled up to 200 MW, as it tries to lure investors in the renewable sector after introducing attractive feed-in tariffs.

“When there is a stable regulation for the wind sector in place with the right support mechanisms, we and the rest of the investors will flow down to South Africa… Until we see a stable regulation of the wind energy sector we won’t come to South Africa, as simple as that,” Gonzalez said.

Sweden eyes revival after ban

The centre-right government has launched legislation to allow the construction of new nuclear reactors, in a bid to replace the 10 ageing reactors which still produce about 40 percent of Sweden’s electricity.

Sweden was at the forefront of Western Europe’s anti-nuclear movement after the Three Mile Island accident in 1979 in the US.

In 1980, Swedes voted in a referendum to phase out existing reactors by 2010 and their fears were exarcebated with the 1986 Chernobyl disaster, which was first spotted internationally by Swedish authorities.

But finding alternative sources of energy proved too tough, so in 1997 Sweden decided to retain most of its reactors.

Over the years repairs and maintenance have proven more difficult than expected, with protracted outages this winter lifting Nordic electricity prices to record highs.

Now the cabinet hopes to lift the ban and ensure the atom remains a major component of Sweden’s energy mix without stirring up long-held divisions over nuclear power.

The bill will not expand nuclear power, the government says, but maintain it at present levels, upgrade technology and increase the liability of owners as a way of limiting the risks of accidents.

“We want to clarify that the nuclear industry has to take full responsibility for all costs regarding the worst cases, if there was a real accident,” Environment Minister Andreas Carlgren told reporters. His ministry launched the bill.

Carlgren said that if passed, the nuclear industry could build new reactors only to replace existing ones.

“So we won’t have more reactors than the 10 we have now. In 10 years’ time, one or two (new reactors) could be invested in.”

European states such as Finland, the Czech Republic and Britain are keen on nuclear power as a way to provide a reliable source of energy, cut the need for fossil fuel imports and reduce manmade carbon emissions.

Parties split on the atom
The nuclear issue may loom large in the election campaign, where the centre-right government faces an uphill battle to remain in power against a resurgent Social Democratic Party and some staunchly anti-nuclear opposition parties.

The leader of the Social Democrats, Mona Sahlin, is against building new reactors, and is hoping she will form a coalition government with the similarly anti-nuclear Greens and the ex-communist Left Party. However, many in her party are in favour of nuclear power, particularly the trade unions.

“Nuclear power is probably going to be one of four or five issues in this election,” Folke Johansson, a professor of political science at Gothenburg University, told reporters.

“But it is not going to be the dominating one,” he said, suggesting that jobs and the economy will be more important.

“Nuclear power was very controversial in the late 70s and the 1980s – one government fell because of that issue,” he said, adding that the debate has softened since then.

Surveys show nuclear power is now favoured by most Swedes. Atomic energy was ranked by Swedes the best energy source to protect the environment and create jobs in a March poll, with 26 percent of people surveyed ranking it top, ahead of wind power (21 percent) or hydro power (18 percent).

But passing the legislation will not be an easy task also because a group of rebel coalition MPs are set to join the opposition in voting against the bill. It would only take four government MPs to block it, and two have already said “No”.

“This is a question of responsibility – a security issue – for me,” said one of the rebel MPs Eva Selin Lindgren, pointing to the risks of nuclear proliferation and storage.

Step forward?
The nuclear industry welcomed the bill as a step in the right direction at a time when maintaining the old reactors, some of which have been online since 1972, takes increasing effort.

“It’s a possibility for us to develop our nuclear business, so we think the bill is a positive step,” said Mats Ladeborn, head of Vattenfall’s nuclear power activities.

“We are implementing the biggest modernisation in the nuclear history of Sweden. We had planned for the power stations to be running before winter time (but) it took longer than expected and was more complex than we could foresee,” he said.

Sweden produces nuclear energy at three plants – Forsmark, Ringhals and Oskarhamn – supplying around 9300 MW.

The reactors have suffered shutdowns this winter as operators E.ON, Vattenfall and Fortum implement upgrades to boost capacity and safety standards.

Start-up times have been delayed, helping push Nordic spot power prices to a peak of 134.80 euros per megawatt hour in February – four times the average 2009 level.

The bill is not only good news for the industry, however, as it places a bigger burden on owners should things go awry.

If a nuclear accident now occurs, plant owners must cover costs of up to 3 billion crowns ($421.4m), while the state covers up to an additional 3 billion crowns. The new bill quadruples the owners liability to 12 billion crowns.

Renewed faith

The renewable energy industry is no longer a quirky kitchen industry, and for BP, with more than 30 years’ experience in the Solar market, it is certainly not one that has simply been strapped to the side of a large oil company. In fact, it is the future for most far-seeing corporations.

Sustainable technology and sound investment opportunities weren’t always obvious natural bed-fellows. Nevertheless big energy companies have been diverting large sums of investment cash towards developing renewable energy solutions for several years, especially important today as the need for more green and secure energy takes centre stage. As highly populated emerging economies develop, so does the global demand for energy. Climate change remains an important global challenge; however alternative energy sources are no longer just about being kind to the planet. Renewable energy has the potential to be highly profitable too, providing solutions – and there are many, including biofuels, solar and wind
– if executed effectively. “We don’t look at renewable energy from a different basis from big oil projects,” says Vivienne Cox firmly, CEO of BP Alternative Energy. “It’s a good business opportunity and these products need to be competitive in their own right.”

It’s also an industry that has the potential to create a large number of new jobs says Katrina Landis, COO at BP Alternative Energy. “In the short term, the debt markets have dried up, however when you look at any number of countries which are developing renewable energy, you realise what a strong future the industry has.” Landis points to wind turbine technology as an example of technical improvements that are possible not in five years time but now. “We’re taking advantage of new technology on one of our sites, where 100 older turbines have been replaced with just eight.” It’s a significant accomplishment – and an indicator of the rapid technology improvements which are feasible in this segment.

Obama means business
Much of the new seriousness about renewable energy is being led by President Obama. And this is where commitment is now met with hope. Katrina Landis attended the Obama inauguration events and says interest in alternative energy, particularly in the US, is massive as well as increasingly mainstream – a huge turnaround from just a few years ago. “There’s dramatic interest. Everyone from consumers to big industry. Obama has a spine of steel in terms of addressing environmental concerns as well as looking at energy security.” Meanwhile there are plenty of carbon targets to meet, and even exceed. Yet Cox says BP’s approach is much more than just meeting targets. “We are taking bold steps in BP to build the cost of carbon into everything we do; every project we consider, whether that be in Exploration, Refining or Retail. We now explicitly assume that carbon will be priced, so that alters the very way our products are engineered in the first place.”

But the fragile state of the global economy means some alternative energy companies will struggle, a point not lost on Cox. “The renewable energies market is still about growth, and yes, there are lots of companies going through challenging times. There will be shakeouts and consolidation. But the growth in this industry is being driven by a genuine concern about climate change, as well as concern about the security of control of energy supplies.”

A sounder planet
Despite the current economic difficulties, the future still needs to be planned for. That’s why BP’s Landis says taking the long view – where we’ll be in 2030, for example – is as important as the current short-term economic anxiety, however difficult. “Sure, in 2009-2010, the demand for energy could decline further. But you’ve got to think ahead and consider where developing nations like India and China, for example, will be by 2030. Their trajectory for growth is going to be significant. So we need to look at a proper diversified set of solutions for the future.”

So where does that leave us now in 2009? Landis says we don’t have to look too far to see really exciting energy possibilities being unearthed. “In 2005, when BP launched its Alternative Energy business, it committed to spending $8bn over a 10-year horizon. We’re well on track to meet this commitment. We’ve focused on four business areas which we believe will be winners for us. These are biofuels, carbon capture and storage, solar and wind. We’ve very excited about advanced biofuel technologies and are investing in lignocellulosic ethanol and biobutanol, both of which can be made from plant materials.”  BP has joint ventures working to commercialise these technologies. In February, they announced a joint venture with Verenium to produce lignocellulosic ethanol from non-food energy grasses, which expects to be producing ethanol in 2012 at a facility yet to be constructed in Florida.

Another partnership with DuPont is working to further develop biobutanol, a fuel molecule which can be blended into conventional fuels at a higher rate than ethanol, without requiring changes to fuel infrastructure or engines. Renewable biofuel technology will become incredibly important for just about all transport and urban mobility areas. It’s also the one that is likely to capture the public’s imagination says Cox. “It’s really about the notion of taking any kind of waste product or a biomass and breaking it down into fuel. And of course when we are choosing where to invest we are looking at options which achieve material reductions in greenhouse gas emissions when compared with conventional fuels and minimise any impacts on food production.” Cox is not making an argument for carpeting much of Europe’s countryside with corn fields or other fuel-plants. Rather, it’s about using land more effectively.

“We believe there is sufficient land available to meet society’s growing food, feed and fuel needs when managed appropriately” asserts Landis. Other solutions also suggest themselves: how about capturing the carbon emissions from a power plant and then pumping it back under ground into a declining oil field, which not only prevents the release of CO2 gasses into the atmosphere but also enhances oil recovery and extends the lifetime of the field? The sheer variety of sustainable, renewable energy options is huge.

Far greener than you think
One popular myth that needs debunking is that countries like China and India pay little attention to green technology and the environment because they’re too busy building up their industrial base. The reality, however, says BP’s Vivienne Cox, is rather different. “There is a perception that China won’t move away from fossil fuels. In fact, there’s a lot of progress being made in China working on renewable energy to combat change.” In fact, China is likely to leapfrog the West in terms of renewable energy development – and they will certainly be ahead of the West during the next decade says Vivienne Cox. The Chinese are also buying up green technology licences. So they are planning ahead. “It’s a mixture of demand, both private companies and government-supported schemes.”

So don’t underestimate the work that is being done, not just here in the West, but also in the new economies of the East. Just about everyone is committed to renewable energy. But the picture is not always obvious.

There is little doubt that any market is not immune to the difficulties and challenge as the global economy tightens. But there is a sustainably fuelled light bulb shining on the other side according to Cox and Landis. “It is less about faith when you look ahead at the alternative energy sector and more about a much deserved renewed commitment to an industry that not only makes good business sense to be in, but will also play a leading role in the world’s energy mix far into the future.”