Renewable Energy World - magazine - 5/6-2011
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RENEWABLE ENERGY WORLD MAY–JUNE 2011 67
PHOTOVOLTAICS: MULTI-TECHNOLOGY FIELD
A
s PV installations under the 2007 Secondo Conto Energia
ministerial decree of the Italian feed-in tariff scheme exceed
140,000, for a combined total of 2.7 GW, and new incentives
encourage renewable energy developments through the 2010
Terzo Conto Energia decree, the opportunity to assess the real
performance of available PV technologies have never been greater.
Charged with supplying the energy needs and reducing the
CO
2
contribution of Italy’s Bolzano Dolomiti airport (ABD), the eld
is the largest Italian PV experimental installation as well as one of
the rst large ground-mounted systems on Italian airport terrain.
It was developed with co-nancing from the European
Regional Development Fund (ERDF) 2007–2013 of the European
Union. The plant is owned by ABD, while EURAC’s Institute for
Renewable Energy is the scientic body responsible for studying
the performance and the degradation of the different PV modules
throughout the entire lifetime of the installation.
The value of such a plant is both scientic and commercial.
Its purpose is to study the behavior of PV modules, in both the
short- and long-term, with scientic accuracy and in a specic
geographical context.
The results feed scientic publications and, at the same time,
support different sections of the PV sector, such as developers,
producers, installers, nancing institutions, as well as decision-
makers and customers, helping them to identify the most suitable
technology for their applications.
ABD PV FIELD FEATURES
The conept for the eld, located in northeast Italy, was rst mooted
in 2008. In August 2010 it was connected to Italy’s medium voltage
network. The energy its produces can power approximately 220
households and is expected to reduce ABD’s CO
2
emissions of
about 377 tonnes/year, or some 65% of current emissions.
Falling under the 2007 ministerial decree of 2007, the
electricity produced by the ABD PV system has been approved
under the Italian incentive scheme and receives a feed-in tariff
of €0.346/kWh. Overall investment in the project has reached
€2.6 million to date.
The installation has a peak power of 724 kWp and it is
divided into two main parts: a 662 kWp commercial installation,
-
TECHNOLOGY
PV FIELD
Situated in Italy’s Bolzano Dolomiti airport is the country’s largest PV experimental
eld. With a total of 24 different technologies installed, the project allows the
performance of various commercially available PV technologies to be assessed.
Dr Alessandra Colli reveals the details.
A CROSSROADS BETWEEN
RESEARCH AND INDUSTRY
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PHOTOVOLTAICS: MULTI-TECHNOLOGY FIELD
68 RENEWABLE ENERGY WORLD MAY–JUNE 2011
comprising 8538 CdTe First Solar 277 modules
with a nominal peak power of 77.5 Wp each, and
a 62 kWp experimental installation, consisting of
24 different types of modules, divided into groups
ranging 1 – 2 kW each.
While most of the modules have a 30°
tilted position and are mounted on FS Schletter
system supports (which are piled about
2 metres into the ground without any
concrete footings), some are also installed on
tracking systems.
There are two types of tracker unit installed.
The DEGER Top tracker 40NT, is a single axis
active tracker, has an inclination of 30° and the
possibility to rotate in an east-west direction with a
maximum angle of ±45° (considering the south as
home position).
The DEGER tracker 7000NT, a dual-axis active
tracker, has the possibility to adjust elevation and rotation. The
elevation angle is 15°–90°, while the east-west rotation can be
active for a 360° sweep, with adjustable limit switches.
An additional at roof-like structure, created to test a group of
Solyndra modules, completes the overview of available supports.
This horizontal surface is covered with a white waterproof roong
membrane Alkorbright PVC-p from Renolit.
Given the shape of the CIGS tubular cells, the portion of energy
production as related to the reectivity from below the modules can
vary from 0–39.3%, according to the position of the sun.
The whole PV eld is connected to105 SMA inverters of different
sizes. Among them, 30 are located in the experimental section,
including those linked to the two trackers.
The plant has a surface area of 18,860 m
2
(205x92 metres)
covered with 20 cm of white gravel, a material with a reectivity of
around 25–30%. The eld orientation is 8.5° west from south.
The ABD eld was designed to assess the performance of the
majority of the PV technologies currently available on the market and
for use specically in an Alpine valley. In addition, the two tracking
supports allow comparison between xed and moveable options.
The purpose is to evaluate and quantify differences in terms
of energy performance among the different PV technologies and
solutions, so to identify the most economically convenient to install
in a specic environment, being the South Tyrol region or another
comparable location.
Nevertheless, the results obtained from the monitoring activity
underway at ABD also aim to dene the energy rating of various PV
modules under specic irradiance levels and spectral characteristics
of sunlight.
For this purpose, an on-site meteological station has been
installed to detect weather data and solar radiation in all its
components (global, direct, diffuse, albedo) to support the
characterisation of the photovoltaic modules.
It includes instruments, such as the three pyranometers, a
pyrheliometer and an albedometer, as well as ambient temperature
and wind sensors. A sun photometer operating in the AERONET
network (coordinated by NASA) is next to be installed to detect
aerosols, ozone and vapors in the atmosphere to better characterise
the solar spectrum. PV reference cells (crystalline-Silicon and KG5-
ltered) are mounted in-plane with the modules, as well as on the
two trackers.
To maintain the quality of the monitoring instruments and assure
the quality of data, regular checks and maintenance, as well as
calibrations, are foreseen.
In addition to the monitoring instrumentation, the performance
and the degradation of the modules under test at the ABD installation
will be evaluated indoor using a pulsed solar simulator, requiring the
maintenance of at least an internal reference module for each type
installed on the eld.
MUTUAL SUPPORT RESEARCH-INDUSTRY
In the year since it began operating the ABD eld has attracted
signicant interest from all over Europe, ranging from PV module
producers to installers and from scientists to the general public.
The ABD eld is a cross-roads in which
electricity production becomes useful for
research and performance evaluation
EURAC’s Institute for Renewable Energy participates in the
Enertour programme, organised by TIS Innovation Park, to guide
groups of interested people through relevant and innovative
renewable energy applications in the South Tyrol region. The ABD
PV eld is among the installations of major interest.
Those participating in Enertour are mainly players from the PV
sector looking for information about module technologies, as well as
technical options for installation.
In the past few years – and in light of Italy’s booming PV market
– there were a signicant number of approaches made to the
PV sector as players attempted to capitalise on the large market
opportunities potentially available.
With 24 different types of modules, ranging from frameless
solutions to the more standard module with an aluminum frame,
and from transparent to opaque ones the variety of mounting clips
and supports are also widely covered.
In additon, as the modules are tested in real working conditions,
their performance is often far from the normal STC operating
conditions frequently used in laboratories.
A working approach was adhered to for module acquisition by
Final yield (Yf in kWh/kWp) for some technologies installed at ABD PV eld
evaluated from monitored data on a six month period.
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__________
70 RENEWABLE ENERGY WORLD MAY–JUNE 2011
following the installer’s order process, meaning that even the PV
production industry was itself brought under scrutiny.
The ABD eld is thus a cross-roads in which electricity production
becomes useful for research and performance evaluation. In such a
‘playground’ science and industry can meet, discuss and support
one other.
A FIRST PERFORMANCE COMPARATIVE EVALUATION
Data including electric variables, module temperature for each
group, and ambient information is collected each day. An example
evaluation of the energy performance of four PV technologies
mounted on 30°-tilted supports – crystalline silicon cells (c-Si),
copper indium selenide (CIS), copper indium gallium selenide (CIGS)
and cadmium telluride (CdTe) – is shown on page 68.
The performance assessment of various PV technologies is
based on indicators such as the performance ratio (PR) and the nal
yield (Yf) in kWh/kWp.
Following the indications of the international standard IEC
61724, the performance of a PV system can be expressed by the
performance ratio which shows the overall effect of losses (due to
module temperature, irradiance usage, low components efciency,
faults) on the power output of the plant.
The PR is calculated according to the formula PR=Yf/Yr, where
Yf = E/P
0
and Yr = H/G, and respectively E is the energy produced
by the PV system [kWh], P
0
is the installed peak power [kWp], H is
the in-plane insolation [kWh/metre
2
], and G is the irradiance at STC
[1 kW/metre
2
].
The PR value allows evaluating modules behaviour on different
time scales (instantaneous, daily, monthly, yearly). A very interesting
comparison is the irradiance dependence of the module’s behaviour.
This dependence can be shown plotting instantaneous values of
performance ratio with respect to irradiance values.
The PRs are calculated on a 15 minute-basis for every month
and not just for selected sunny days.
Performing no ltering process shows the situation as it is in
reality, and not just the ‘ideal’ case. In fact, ltering for only clear sky
days, would reduce the spread in the calculated PR, but would also
give the impression of a very insensitive system.
Random variations depend on measuring instruments, the items
tested, the test/calculation procedure and the test environment.
The conducted analysis shows a better performance of
c-Si and CdTe modules in comparison with CIS and CIGS.
CdTe technologies have already been assessed for good
performance in the Alpine region, due to the increased level of
diffuse irradiance, and this comparison conrms their very good
performance at low irradiance values.
The performance ratio values are shown without any adjustment,
just as calculated from monitored data, thus showing the PV system
and the monitoring system as they actually work.
A possible validation of the performance ratio can be performed
by extrapolating power to STC conditions during stable and high
irradiance data sets using the temperature coefcient data for power
for each PV technology. This procedure gives the possibility of
determining a correction coefcient and reducing system uncertainty.
ONLY THE BEGINNING
As the ABD eld is still in its rst year of activity, many evaluations of
the various PV technologies are set to be undertaken in the coming
months. Stabilisation processes will be highlighted in data collected
for winter and sping, with positive and negative trends possible in
the different technologies.
The inuence of temperature on the modules’ performance will
be also discussed, as well as the effect of the different components
of the irradiance will be shown in detail.
A recent comparative analysis conducted in collaboration with
RSE-GSE from Milan, has already shown variable performance
tendencies for the same modules in three different Italian locations.
This means that it is already effectively determined that the best
outcomes arise where the behavior of a PV technology is studied in
close connection with the environment that is going to host it.
Alessandra Colli, Lorenzo Fanni and Wolfram Sparber are part
of EURAC’s Institute for Renewable Energy.
The Authors would like to thank the European Regional Development
Fund (ERDF) for co-nancing this project and the Fondazione
Cassa di Risparmio from South Tyrol for the support of the research
activities.
Acknoledgements are due to the management of the Airport
of Bolzano Dolomiti (ABD), Thaler Engineering Studio, Leitner
Solar, and the whole CoPES Consortium.
e-mail: wolfram.sparber@eurac.edu
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
PHOTOVOLTAICS: MULTI-TECHNOLOGY FIELD
The rst row of the CdTe-based commercial part of ABD PV eld
EURAC/O. SEEHAUSER
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__________
72 RENEWABLE ENERGY WORLD MAY–JUNE 2011
Company Results
Green prots rise as
last of 2010 results
come into focus
DONG
Majority Danish-state owned Dong Energy is a leading wind energy
player specialising in the offshore market.
As of end of 2010 it had 1035 MW of on and offshore wind
power capacity in operation and 1316 MW under construction.
In 2010 it opened its 48 turbine 173 MW Guneet Sands
offshore wind farm off the coast of the UK. Earlier in the year the
company and its partners began constructing the planned 630 MW
175 turbine London Array project, off the east coast of the UK. When
commissioned it will be the largest offshore wind farm in the world,
its developers say.
Dong’s revenue, EBITDA and operating cash ows for 2010
showed a signicant improvement on 2009 gures, being 11%,
59% and 50% up respectively. The company closed the year
with revenues of DKK 54.6 billion (US$10.87 billion) an EBITDA of
DKK 14.1 billion ($2.81 billion) and a net prot of DKK 4.5 billion
some ($8.6 billion).
Cash ows from operating activities came in at DKK 14.2 billion
while net investments for the year totalled DKK 8.6 billion ($1.71
billion).
EBITDA in 2010 beneted from earnings from new and expanded
activities, cost reductions in generation, higher energy prices, and price
hedging, said the company.
The new activities, including especially wind farms and oil elds,
contributed DKK 1.1 billion ($219.1 million) in 2010, in line with the
outlook in its 2009 annual report, said the company.
Both achieved EBITDA and operating cash ows were ‘regarded as
highly satisfactory and were signicantly higher than expected at the start
of the year, with positive development in all business areas’, it added.
‘Our target is thus to double earnings in the period between 2009
and 2015. DONG Energy’s success in 2010 indicates that it is possible
both to perform these two major tasks in relation to society and carry
on a protable and robust business,’ said board chairman Fritz Schur
speaking as the results were announced.
‘The continued growth in offshore wind power is a signicant
element in Dong Energy’s transition to become a more sustainable and
renewable energy supply [company] with wind energy and biomass
replacing coal,’ said the 2010 annual report.
According to its gures, the company’s installed wind and hydro
generation capacity has increased by more than 50% since 2008 and
is well on the way to reach an internal target of 3000 MW by 2020, it
added.
In its outlook the company said there remains extensive scope
for development with wind turbines continually increasing in size and
stretching into locations farther out to sea.
VATTENFALL
Sweden’s Vattenfall reported a full year 4% rise in net sales to
SEK 213.5 billion ($35.4 billion) with operating prots for 2010 up
6.9% to SEK 29.85 billion ($4.94 billion). Excluding items affecting
comparability, operating prot rose 27.7% to SEK 39.95 billion
($35.4 billion), while prot after tax for the year decreased 2% to
SEK 13.19 billion ($35.4 billion).
Excluding items affecting comparability, prot for the year after
tax rose 44.4% to SEK 23.19 billion ($3.84 billion). In Q4 its operating
prot decreased 12.8% to SEK 4.94 billion ($818.1 million). Excluding
items affecting comparability, operating prot for the same quarter
were up 6.7% to SEK 9.73 billion ($1.61 billion).
‘I am pleased to report an improved operating prot for 2010,
despite large one-off costs,’ said Vattenfall president and CEO
Oystein Loseth. ‘We have increased our production volumes and
lowered our operating and maintenance expenses, and with our new
business-led organisation,’ he added.
Loseth continued: ‘I see great potential for further efciency
improvement. The market outlook for energy companies continues
Offshore sub-station at Dong’s UK Guneet Sands wind farm
DONG
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RENEWABLE ENERGY WORLD MAY–JUNE 2011 73
Company Results
to be challenging, with stronger pressure on margins and weak
growth in demand. It is therefore of utmost importance that we
increase the company’s efciency and concentrate our business to
areas in which we have competitive advantages and have or could
have a strong position.’
Over the course of 2010 the company achieved a number of
key milestones including, in the UK, the granting of rights to develop
a 7.2 GW offshore wind farm of the southeast coast of East Anglia
in partnership with Iberdrola-owned Scottish Power Renewables.
Provided that the necessary regulatory approvals are granted
construction is expected to begin in 2015 and will be conducted in
stages, said the company.
SUNPOWER
California-headquartered SunPower Corporation designs,
manufactures and delivers high efciency, high reliability solar cells,
panels and systems.
In its 2010 annual report the company said it had positioned
itself for rapid expansion in both its business divisions and in its
manufacturing operations. It plans were ‘executed delivered with
exceptional results’, it said, closing the year with full year revenues
up 46%, non-GAAP earnings per share up 84% on the previous year
and with cash and investments totaling more than $900 million, a
healthy balance sheet and strong liquidity.
For 2010, the company recorded revenues of $2.21 billion, up
from $1.52 billion in 2009 for a net prot of $178.7 million, up from
2009’s $32.52 million in 2009.
CEO Tom Warner said: ‘Our strong Q4 results and performance
substantially exceeded our 2010 plan which we updated after our
Sunray acquisition closed last spring.’
Warner continued with a more detailed company breakdown:
‘For 2010 both our business segments exceed their plans as we
recognised 546 MW for the year. In our residential and commercial,
or R&C segment, we added approximately 500 dealers to our global
dealer network, ending the year with almost 1500 dealers. We also
doubled our North American commercial backlog which gives us
clear visibility for revenues and margins in that business for 2011.
In our utility and power plant, or UPP, division we met all our project
commitment and delivered more than 270 MW globally.’
Further, he said: ‘2010 was also a year when the Sunpower team
delivered many important innovations. We announced the world’s
rst 24% conversion efciency production solar cell as well as the
rst 20% panel. We launched our Oasis power plant in the US and
Europe which will reduce power plant balance-of-system costs by
25% between 2010 and 2011. We also made signicant progress
on our low-concentration PV system.’
Also during 2010 the company established a joint venture with
AU Optronics for the 1.4 GW Fab III facility in Malaysia.
Of the deal Werner said: ‘Our partnership with AUO combines
its high volume, world class manufacturing expertise with our world
leading solar technology. Working together, Fab III will produce
more megawatts faster, at lower cost, with substantially less cash
contribution from SunPower. In 2011, with the ramp up of Fab III,
we plan to increase our production by more than 50% compared
to 2010.’
Meanwhile, in Italy the company also completed a bond issue for
the last two phases of its Montalto solar power plant.
The offering totalling approximately €195 million was rated
investment-grade by Moodys and, said the CEO, is indicative of
Sunpower’s bankability and ability to drive diversied nancing
options for its projects.
ENEL GREEN POWER
Its annual report called 2010 a special year for Enel Green Power
with its listings on the Milan and Madrid stock exchanges on 4
November, 2010.
The success of the largest European IPO in the last three years
– despite the adverse economic climate – demonstrated all of the
potential of Enel Green Power, said the report. ‘We have undertaken
to develop in our business plan, the results of which are already
evident in the nancial statements for 2010,’ it said.
In 2010, Enel Green Power increased its revenues and gross
operating margin by 20% and 9%, respectively, compared with
the previous year on installed capacity totaling 6102 MW, of which
2539 MW (42%) was hydroelectric, 2654 MW (43%) wind, 775 MW
(13%) geothermal and 134 MW (2%) from other renewable resources
(solar, biomass and cogeneration). Total revenues including
commodity risk management amounted to €1.2 billion, a decline of
€5 million on 2009 gures. Of the total, €1.134 billion came from
the generation and sale of electricity (€1.163 billion in 2009) and
€66 million from other revenues (€42 million in 2009).
The decline of €29 million in revenues from the generation and
sale of electricity, in the presence of a rise in the volumes generated
and sold, reected the reduction in average prices, partly due to the
expiry of the CIP 6/92 incentive mechanism for the sale of electricity
from certain hydroelectric plants, said the company.
Gross operating margin came to €846 million, a decline of
€32 million compared with end of December, 2009 (€878 million).
Operating income for 2010 totaled €532 million (€573 million in
2009), a fall of €41 million essentially attributable to the decrease in
the gross operating margin and greater charges for depreciation of
generation plants, said Enel.
The 2010 nancial year closed with net income of €344 million,
up €22 million on the €322 million posted in 2009, beneting from
a decrease of €43 million in net nancial expense and €21 million in
lower income taxes.
David Beattie
Sunpower’s revenues were boosted by the sale of 44 MW
Montalto solar park in Italy
SUNPOWER
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INVITATION TO ATTEND
Be part of one of the Middle East’s most important events for the power and water industries as
POWER-GEN Middle East celebrates its 10th anniversary and WaterWorld Middle East launches
its rst co-located event at Doha Exhbition Center, Doha, Qatar.
POWER-GEN Middle East and WaterWorld Middle East 2011 will gather world-class experts
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Be a part of the rapid investment across the region by attending these premier events to
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POWER-GEN Middle East and WaterWorld Middle East 2011 will also provide the perfect
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If you are involved in the power or water industries, don’t miss this prime opportunity to stay
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For exhibition and sponsorship
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For information about participating at
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CHANGING
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Owned and Produced by: Supported by:Co-Host: Flagship Media Sponsors:
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RENEWABLE ENERGY WORLD MAY–JUNE 2011 75
FINANCING RENEWABLES
T
HE LAS
T
WOR
D
A swathe of natural disasters topped off by Japan’s earthquake and tsunami
will undoubtedly see insurance companies hike premiums in a bid to claw back
cash after some big payouts, Fraser McLachlan argues that developers will
have to work harder still to cut costs in both Europe and further aeld.
RISING INSURANCE PREMIUMS ARE
YET ANOTHER CHALLENGE FOR
RENEWABLES INDUSTRY FINANCE
W
ith the publication of the latest budget from the UK’s coalition
government, the country’s renewable energy industry found
itself questioning state commitment to the wider green agenda.
Whilst undoubtedly measurers to assist small business are
manifest, the wider policy lacked the specics that many in the
industry were hoping for.
Following the ‘green budget’ rst published by the previous
administration; perhaps many industry expectations had been raised
beyond the realistic connes of the wider economy. Perhaps.
Alternatively, the renewable sector lacks some of the political
punch and inuence of its wider industry brethren, such as oil and
gas, and its voice is quieter in the corridors of power. Either way, as
the numbers were crunched and the analysis completed, the nal
result didn’t look so promising.
One could argue that the government has a wider commitment
to a low-carbon economy rather than one driven by the renewable
energy industry – and it’s important not to conate the two.
The green investment bank has been promised an extra
£2 billion (US$3 billion) in capitalisation in addition to £1 billion already
committed. This should, in theory, allow for sponsorship of new
projects and investment in research and design. The limiting factor is,
unfortunately, the fact that the bank will not have the power to borrow
until 2015, limiting its capacity to support industry across the board.
The oor price put in place in the carbon market of £16/tonne in
2013, rising to £20/tonne in 2020 has also polarised the renewables
industry. Some fear it will give more impetus to the nuclear energy
lobby, whilst others believe it should support the renewables sector
as the future of feed-in tariffs remains uncertain.
What insurers need to bring to the
table is an added impetus by way
of clearer thinking into how the
insurance behind projects can work
most efciently
Nonetheless, it’s very easy to be overly negative, and although this
government, and many others, may not live up to its promises of
being the greenest government ever, the prospect for private industry
with the right incentives to support the renewable energy sector is still
evident, and it is in this realm that the insurance sector could really
make the difference.
Without insurance, no bank, fund, or third party investor will be able
to raise the cash to support a given project, and with the insurance
sector for renewable energy becoming ever more competitive,
insurers must ensure that they support the industry by pushing for
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THE LAST WORD: FINANCING CHALLENGE
76 RENEWABLE ENERGY WORLD MAY–JUNE 2011
quality standards in construction and operation, appropriate due
diligence and a willingness to engage with a host of different industry
players. But like renewables, insurers face their own challenges.
In the green energy sector, with many larger rms piling into the
industry to make short-term gains, competition on price is steadily
increasing. What many insurers fail to remember, however, are the
early 1980s, when brokers rushed to support the edgling wind
industry in North America.
Back then, technology, particularly with wind turbines, suffered
from numerous faults, and a general lack of awareness by the
insurance market into the complexities of turbines and the host of
potential pitfalls, resulted in a number of insurance companies ‘losing
their shirts’ and sparking a ight from the renewables sector back into
the relative safety of conventional power generation.
Without insurance, no bank, fund, or third
party investor will be able to raise the cash
to support a given project, and with the
insurance sector becoming ever more
competitive, insurers must push for quality
And whilst, yes, renewable technology has improved, substantially
in many cases, the green energy industry is still not without its issues,
and it is the insurance companies which ultimately bear the costs.
With insurance rates at an all time low and many more wanting to
‘play’ in the renewable energy space, it will only be a short matter
of time before the insurance market wakes up to the fact that it is
getting harder to make any reasonable prot from renewable energy.
On a macro level, Deepwater Horizon, the natural disasters in
the past 12 months in Australia, New Zealand and most recently,
Japan, will cause the insurance market billions of dollars in losses.
Undoubtedly, the insurance industry is going to need to nd additional
revenue streams to make up for these losses and, eventually, put up
insurance premiums.
But if developers feel uncomfortable about a squeeze on their
implementation costs, it’s worth a word of warning, with the old
adage of ‘buy cheap, buy twice’, often ringing true. Whilst some
insurers will offer very competitive products, developers should be
aware of the small print, which may exculpate any pay-out.
With a high degree of volatility in renewable energy operations,
developers should also ensure that they are covered from the
construction phase, where equipment is very easily damaged
in transit, right the way through to the operational phase, where
equipment failures can result in losses of power, and ultimately
revenue for energy providers. It will be those insurers that have a
heritage and track record in the space that will be able to support
the industry most effectively via an understanding of the market
complexities honed over a number of years.
What insurers, commensurately, need to bring to the table is an
added impetus by way of clearer thinking into how the insurance
behind projects can work most efciently.
Without an acceptance of higher future costs from developers,
and without continual innovation from insurers on how best to serve
the growing renewable market, the green energy industry could lose
one of its greatest facilitators, and further risk the delicate balance of
nancing, construction and risk management being unbalanced for
years to come.
Taking the effect of the Japanese earthquake and resulting tsunami
on an individual basis, the concerns caused by the problems with
the Fukushima nuclear plant will, however, raise concerns as to
the safety issues associated with nuclear facilities. Indeed, already
in Germany, Chancellor Angela Merkel, has stated her intention to
expedite Germany away from a future reliance on nuclear power. The
question is, though, will this mean a return to coal or other forms
of conventional power generation, or can the European renewable
industry be strong enough to argue the case for further expansion for
Germany – a country already a long way ahead in renewable energy
technology? It will be interesting to speculate as to whether we will
ever see a day in which renewables usurp nuclear energy as the de
facto choice for energy security.
So where does this leave us? In the nal analysis, it is a shame that
the UK’s green bank will not be able to come into effect any earlier,
as with insurance premiums set to increase, the costs for bringing
renewable energy projects online will need to be mitigated through
external sources of funding.
Some would argue this is not fair or does not support the renewable
industry. Others would say the price of insurance has been way too
cheap for too long, driven by over capacity and a desire to compete
in a fashionable space.
Either way, lenders (be they government sponsored or not),
insurers, equity, developers, owners and operators need to continue
to push hard for quicker, more effective renewable energy growth.
Whilst it would be easier to write the latest UK budget off as having
failed the green energy sector, one could argue that it may well act
as a catalyst for renewables by proxy. With adequate support for a
resurgent skills base in marine engineering, there are opportunities to
kick-start a domestic UK supply chain entirely focused on renewable
energy, rather than investments in specic offshore projects.
With wider industry momentum, from manufacturing as well as
professional services, the sector should have the condence to
ensure that it continues to be a key part of the energy debate.
Problems at the Fukushima plant aside, a message has been
sent world’s large power generating companies and perhaps more
importantly to the public – renewables will have to play a key part
in the mix of power generation. No one has ever pretended that
renewables are the sole answer to the world’s energy crisis but more
than ever they are looking like a very logical part of the mix.
Fraser McLachlan is chief executive ofcer of underwriting
agency GCube Insurance.
e-mail: info@gcube-insurance.com
This article is available on-line. To comment on it or forward it to
a colleague, visit: www.RenewableEnergyWorld.com
Can the European renewable industry nd the
strength to argue the case for further expansion?
VESTAS
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