BNEF forecasts Solar PV investments to add up to USD 3.4 trillion by 2040

Low prices for coal and gas are likely to persist, but will fail to prevent a fundamental transformation of the world electricity system over coming decades towards renewable sources such as wind and solar, and towards balancing options such as batteries, according to a long-term forecast from Bloomberg New Energy Finance (BNEF, London and New York).

The New Energy Outlook 2016 by BNEF, charts a significantly lower track for global coal, gas and oil prices than did the equivalent projection a year ago. Crucially, however, it also shows a steeper decline for wind and solar costs.

Wind and solar costs to fall sharply; Solar PV investments will add up to USD 3.4 trillion by 2040

“Some USD 7.8 trillion will be invested globally in renewables between 2016 and 2040, two thirds of the investment in all power generating capacity, but it would require trillions more to bring world emissions onto a track compatible with the United Nations 2°C climate target,” comments Seb Henbest, head of Europe, Middle East and Africa for BNEF, and lead author of NEO 2016.

According to NEO 2016, wind and solar costs will fall sharply. The levelised costs of generation per MWh 

 

for onshore wind will fall 41% by 2040, and solar photovoltaics (PV) by 60%, making these two technologies the cheapest ways of producing electricity in many countries during the 2020s and in most of the world in the 2030s.

Utility-scale solar PV, rooftop PV and other small-scale solar will attract investments totaling USD 3.4 trillion by 2040.

Electric car boom supports electricity demand

EVs will add 2,701 TWh, or 8%, to global electricity demand in 2040 – reflecting BNEF's forecast that they will represent 35% of worldwide new light-duty vehicle sales in that year, equivalent to 41 million cars, some 90 times the 2015 figure.

Small-scale battery storage to become a USD 250 billion market

EVs will drive down the cost of lithium-ion batteries, making them increasingly deployed alongside residential and commercial solar PV systems. Total behind-the-meter storage will rise dramatically from 400 MWh now to nearly 760 GWh in 2040.

Renewables to dominate in Europe, to overtake gas in the U.S.

Wind, solar, hydro and other renewable energy plants will generate 70% of Europe's power in 2040, up from 32% in 2015. In the U.S., their share will jump from 14% in 2015 to 44% in 2040, as that from gas slips from 33% to 31%.

“The New Energy Outlook incorporates a significantly lower trajectory for coal and gas prices than the 2015 edition did a year ago but, strikingly, still shows rapid transition towards clean power over the next 25 years,” comments Jon Moore, chief executive of Bloomberg New Energy Finance.

source: http://www.solarserver.com

Tata Power subsidiary signs SPA to acquire Welspun Renewables

 

Tata Power Company Ltd. (Mumbai), India’s largest integrated power company, on June 12^th, 2016 announced that Tata Power Renewable Energy Limited (TPREL), a 100% subsidiary of Tata Power, has signed a Share Purchase Agreement (SPA) with Welspun Energy Private Limited (WEPL) to acquire its subsidiary Welspun Renewables Energy Private Limited (WREPL).

This represents the largest transaction in renewables space in India, Tata Power emphasizes.

Welspun Renewables has one of the largest operating solar photovoltaic (PV) portfolios in India spread across ten states. It has about 1,140 MW of renewable power projects comprising of about 990 MW solar PV projects and about 150 MW of wind power projects.

Out of the 1,140 MW renewable portfolio, nearly 1,000 MW of capacity is operational and balance capacity is under advanced stages of implementation.

Tata Power Renewable Energy currently operates 294 MW of renewable power capacity, and 500 MW of renewable assets are being carved out of Tata Power into TPREL through a court process.

In addition, almost 400 MW of solar PV and wind power projects are under implementation.

Thus, TPREL with all these assets, would have a renewable assets portfolio of about 2,300 MW making it the largest renewable power company in India. 

source; http://www.solarserver.com

Azure Power inaugurates 28 MW solar PV plant in Punjab, India

Azure Power (New Delhi, India) on June 3^rd, 2016 inaugurated a 28 MW solar photovoltaic (PV) power plant in Killianwali village of Muktsar district, Punjab.

The newly operational PV plant was commissioned in a record period of less than ten months from the signing of the Power Purchase Agreement, the company emphasizes.

Simultaneously, the Foundation Stone for a 150 MW solar PV project was laid in the same village.

The two PV plants will generate power to meet the electricity requirements of the nearby villages. The tariffs for these plants range from INR 5.62 (USD 0.084) to 7.33 (USD 0.1095) per kWh.

Apart from electrifying vicinity, these plants are expected to create employment opportunities for an estimated 1.000 local workers.

Azure Power continues to demonstrate its position as a leader in the solar market, with total solar portfolio of 225 MW in the state of Punjab, making the company the largest owner and operator of solar power plants in the state.

The Punjab government’s support through various solar policies under Punjab Energy Development Agency have facilitated in the implementation of these projects.

Azure Power has a total solar portfolio of 980+ MW and has the largest operating solar power project under the National Solar Mission, a 100 MW plant in Rajasthan. 

source: http://www.solarserver.com

Indiana Michigan Power breaks ground on its first solar PV plant

 

Utility Indiana Michigan Power (I&M, Fort Wayne, IN, U.S.), an operating unit of American Electric Power, on June 6^th, 2016 held a groundbreaking ceremony for its first solar photovoltaic (PV) power plant in Michigan, on a 35-acre site just east of Watervliet.

I&M contracted with First Solar Inc. to build the three Michiana area plants.

The Watervliet solar plant will have more than 50,000 PV panels and generate up to 4.6 megawatts (MW) of solar power. The facility is expected to generate energy equivalent to powering about 650 homes annually.

“I&M is pleased to add solar power to our fleet of emission-free generation sources in Michigan,” said Paul Chodak III, President and Chief Operating Officer of I&M.

“Four decades after our Cook Nuclear Plant began generating carbon-free energy in Michigan, this solar power plant is part of a pilot project that will play a significant role in I&M’s use of the sun to provide energy. I&M already uses wind, water and nuclear energy to generate half of our power, and solar is yet another emission-free energy source.”

The Watervliet plant is one of four solar PV plants in I&M’s Clean Energy Solar Pilot Project. The Deer Creek plant near Marion, Indiana, has been operational since late in 2015.

Construction has already begun at the Twin Branch and Olive plants, both in St. Joseph County, Indiana. All three of the Michiana solar plants will be generating energy for customers by the end of 2016.

Together, the four plants will have the capacity to generate about 15 megawatts of solar power and have the ability to power the equivalent of 2,000 homes
source: http://www.solarserver.com

Meyer Burger sells solar PV equipment and technologies worth around CHF 22 million to the Russian solar company Hevel

Meyer Burger Technology Ltd. (Thun, Switzerland) on June 6^th, 2016 announced a large order from the Russian solar company Hevel LLC for high-end photovoltaic (PV) equipment with a projected total production capacity of around 160 MW.

The around CHF 22 million order from the Moscow-based solar company includes Meyer Burger equipment and technologies for the entire PV value chain, ranging from crystalline solar wafers to cell and module production.

Delivery and commissioning of the Meyer Burger equipment is scheduled for the first half of 2017

The order encompasses the supply of systems for quality inspection of crystalline solar wafers and for performance measurement and sorting of high-efficiency HJT solar cells on the one hand, and the supply of systems for innovative cell coating with heterojunction technology (HJT) as well as the connection technology using SmartWire Connection Technology (SWCT) for high-performance PV modules on the other.

PV modules for the Russian domestic market, the Middle East and India

In future, Hevel LLC will supply the Russian domestic market, the Middle East and India with bifacial high-performance modules. The planned production capacity after upgrading the module factory will be around 160 MW. 

source: http://www.solarserver.com

Sungage Financial lists Vikram Solar as an approved PV module vendor

Sungage Financial (Boulder, Colorado, U.S.), a provider of solar financing solutions, has added the Tier 1 PV module manufacturer Vikram Solar (Kolkata, India) to its approved vendor list.

Vikram Solar PV modules can now be installed in any residential solar system that is using financing from Sungage Financial.

“After Vikram Solar achieved various certifications such as UL and CEC last year, and a PAN file validation was carried out, being listed as a Sungage Financial approved vendor brings us a step closer to making our products available to more customers in the USA,” comments Ken Oatman, Head of Business Development for the Americas.

Vikram has been named a Tier 1 module manufacturer by Bloomberg New Energy Finance, and are not subject to anti-dumping tariffs in the U.S.

A leading supplier to the Indian solar market, Vikram exports over 40 percent of its production and was named the #1 Module Exporter of the Year at India’s Global EPC Summit in 2015. 

source: http://www.solarserver.com

New business model could make battery energy storage attractive to UK customers

Costs for residential battery energy storage in the UK remain too high. For storage to enter the mass market, suppliers have to innovate their customer propositions and business models. This is the conclusion of new research from Delta-ee's (Edinburgh, Scotland) energy storage team.

The research shows that the payback for a newly installed PV + battery storage system is more than 16 years.

Julian Jansen, manager of the Delta-ee Energy Storage Research Service, says “with PV + battery storage having been talked up to be the future of the UK's residential PV market, finding ways to reduce this payback and make storage more attractive to customers is crucial to grow the market.”

The payback improves by 2020 but remains over 10 years despite the forecast reduction in storage system costs.

“We expect prices for energy storage systems to fall by around 10% annually,” explains Julian Jansen, “but even by 2020 this may still not be sufficient to allow the UK market to grow above 15,000 units p.a.”

In contrast, the market in Germany is already above this level – as the result of a combination of subsidy, higher electricity prices and a bigger PV market.

New business model approaches like in Germany will be needed in the UK to reduce customer paybacks

But Delta-ee's research also shows that in Germany new business model approaches are being established, and that these approaches will be needed in the UK to reduce customer paybacks below 5 years – the point at which mass market potential becomes realistic. Delta-ee identifies two key options:

• Pay customers to allow third party control of their battery. Typically this involves the third party aggregating many residential batteries and bidding into ancillary services markets.
  
  However, in order to achieve a payback for customers of 5 years in 2020, Delta-ee's modelling shows that customers will need to be paid around GBP 500 per year. To put this into context, UK technology developer Moixa is currently offering payments of GBP 75 p.a. to customers, although in Germany Fenecon / Ampard are already offering customers EUR 400 p.a. (£ 320).
  
  
• Innovative financing approaches, such as leasing / rental models. In this case the customer pays a monthly fee and a utility or third party can take control of the battery systems at times to earn additional revenues.
  
  Thereby the upfront cost barrier for customers is removed and lifetime costs to the customer are considerably lower than if based on an outright purchase of the battery. There are fewer examples to date of this approach, examples including the U.S. Vermont utility Green Mountain Power or German regional utility Entega.

Ultimately, the three factors Delta-ee have identified – cost reduction, additional revenue streams for customers and innovative financing – will all play a role in bringing residential energy storage into the mass market in the UK. 

source: http://www.solarserver.com