Protecting solar projects with Insurance

I read about this in the regular update I got from Renewable Energy World magazine and I thought it makes a lot of sense protecting your solar PV investment with insurance.

Insuring your solar project is always a wise move especially if you are to sign a 21-year contract with the local public utility. The article discussed mostly on large scale projects but with the emergence of many  individual rooftop solar PV installations in this country, it is a very interesting preposition for both the insurance companies and the individual investors.


Take a shelter! Image by REW


Think about the 12kWp solar PV on your rooftop worth RM120,000 which you've entered REPPA with TNB for 21 years.

Somewhere down the road, say, 10 years later, something happened to the panels, some vandals broke them, or the panels don't meet the promised performance on energy output. Your ROI could be prolonged further, or worse still, you could never recoup your investment.

So, where there is risk, there is mitigative measure required.


Why insure? Insurance premium will eat away my already thin profit margin!

Original Equipment Manufacturers (OEM) warranties would normally be already factored in during the project costing. These warranties are one of the most relied upon methods to reduce risk in the solar industry, but there are other things to consider, such as:

• Warranties commonly exclude defects caused by failing to properly maintain the product, limit liability for damages and include disclaimers for implied warranties.


• They also do not cover the cost of labor for repairs or shipping costs.


• Manufacturers are the ultimate arbitrator of whether a problem with the equipment is deemed defective and covered by the warranty or not.


• A warranty from a foreign manufacturer may be difficult to enforce if that company’s provisions are governed by laws and regulations of their home country.


• A warranty could include a jurisdiction requiring privity of contract, which voids a warranty unless the party seeking to enforce its terms purchased the product directly from the manufacturer.


• And the biggest concern, of course, is that the manufacturer may not exist to honor their warranty 5 or 10 years from now. It may be impossible to make a claim and have it honored once a company is dissolved.

TheGreenMechanics: A good reminder for prospective rooftop solar photovoltaic investors such as myself and you. Also, for the huge corporate players, but being the bigger investors themselves, this would have probably been taken cared of at the very beginning.


Further readings at Renewable Energy World

Malaysia launched $100mil (RM320 mil) green fund for South East Asia

Malaysia and Japan-based Asian Energy Investments Pte Ltd (AEI) have launched a US$100 million venture capital fund to invest in clean energy projects in South East Asia.


Malaysia-Japan partnership in venture capital fund raising


Green bank for South East Asia

Focusing on investments in small-to-mid-sized technologies and enterprises, a management company to be established called Putra Eco Ventures, will channel the investments and provide business consultancy services to green technology companies - such as wind, solar or tidal energy.

The announcement comes a little over a week after New York City launched its own US$1 billion green bank and in the wake of the new Australian government's decision to scrap its own green bank, the US$2 billion-a-year Clean Energy Finance Corporation.

Malaysia's Prime Minister Najib Razak announced the launch of the fund on Monday at a meeting of sustainable development experts in San Francisco in the United States.

It will also help find cheaper biodiesel feedstocks for Malaysian biodiesel plants which have been idled because they rely on expensive crude palm oil.

This we hope, will further transform Malaysia into a knowledge-based, innovation-driven economy that is environmentally friendly while aiming to join the ranks of developed nations.

Malaysia aims to reduce its carbon emissions by 40% by 2020 from 2005 levels and increase its renewable energy capacity to 4,000 MW by 2030.


TheGreenMechanics: More options  should now be available for the small and medium-sized enterprises to venture into sustainable energy business.


Source: Malaysian Times

9kW Solar PV installed at SMK Langkon, Kota Marudu

Educating people on the importance and significance of renewable energy sources should start early. SMK Langkon did just that. With some help, of course.

A couple of weeks ago, SMK Langkon in Kota Marudu, Sabah became the recipient of a 9kWp solar photovoltaic (PV) system that will generate electricity while saving the school on electricity bills.

Dr. Maximus at the launch of the solar PV. Photo: Borneoinsider

Solar PV for SMK Langkon

The installation of the system is a project undertaken by the Energy, Green Technology and Water Ministry with Sustainable Energy Development Authority (SEDA) and SESB to promote and spread awareness to the students and local community on the importance of renewable energy.

The project would be a model as it is the first time net metering system is used in Sabah by SESB. With this system, the balance of energy produced in the premises that is not utilised is sold back to SESB. The school will only pay the net electricity bill after the amount of energy generated from the solar PV system is deducted.

The project cost around RM90,000 and is sponsored by Syarikat Warisan Harta Sabah Sdn Bhd. This means that it cost the company RM10,000 per kWp, slightly higher from the current market rate of RM9,000/kWp.

The school was chosen because the site houses two schools – the SK Langkon and SMK Langkon, enabling the students there to have first-hand exposure on the subject of renewable energy.

The school is also often used as a temporary relief centre for flood victims in the district and electricity disruption can easily occur during a flood.


Not a first for school, but a good start nonetheless.

SMK St. Michael in Penampang launched its 5.4kWp rooftop solar PV in March this year thanks to an initiative by German company, Deutsche Energie-Agentur GmbH.

I believe more schools in the interior should be fitted with solar PV, there are still many schools out there without grid power. Students can then be taught to become installer/entrepreneur in anticipation of the implementation of the Feed-in Tariff mechanism in Sabah later.


TheGreenMechanics: There's nothing wrong with installing solar PV at SMK Langkon, but priority should be given to schools without power supply from SESB. Agree?


Reference: Bernama

Malaysia at forefront of renewable energy in Southeast Asia

SEDA claims that Malaysia is at the forefront in Southeast Asia in managing renewable energy as it has established strong mechanisms for this purpose.


Malaysia's objectives for the introduction of renewable energies. Source: Asia Biomass Office


Chief operating officer of the Sustainable Energy Development Authority (SEDA), Ir Dr Ali Askar Sher Mohamad said the Malaysian government was committed to encouraging the public to contribute to producing renewable energy by establishing Seda and introducing the Renewable Energy Act 2011, thus making Malaysia a role model.

After we launched the feed-in tariff on Dec 1, 2011, then only the Philippines and Indonesia did the same project. We already have confidence, especially in solar photovoltaics (PV).

"Because of that, we are actually able to offer training and capacity building not only to Malaysians but also to others in the region," he said after a dialogue with the feed-in approval holders in George Town, Penang on Thursday.

SEDA CEO, Badriyah Abdul Malik, meanwhile, said although Malaysia was at the forefront in managing renewable energy, public awareness on renewable energy like its safety aspect and importance to the economy as well as the issue of global warming was still low, especially in the rural areas.

"A country's economy depends a lot on its energy supply. If it does not have enough of this, it will have a big problem.

"We need to have more promotions, to explain to the people on the importance of renewable energy as at alternative source to complement electricity supply," she said.


1,500kW Solar PV Quota for Individuals

The final release of 1,500kW of solar PV quota for individuals would kick-start on Sept 18 at noon. To date, there were 1,585 applications from individuals, with 882 from the northern region.

500kW individual quotas for solar PV was released on Aug 28 and the response was overwhelming. The release of the second batch of 500kW solar PV quotas which should have been done on Sept 4, was called off due to an unexpected overwhelming number of incoming traffic to Seda Malaysia's portal.


TheGreenMechanics: At the forefront? I'm not too sure about that because Thailand is known to be more aggressive in promoting renewable energy and it has more installed capacity of RE.

But I agree that Malaysia is in the right track. We have the policy, and the necessary Act in place to promote and implement renewable energy projects.

Brunei eyes Feed-in Tariff system for renewable energy

It is most encouraging to note that oil-rich Brunei is also looking at Renewable Energy. The country is expecting to implement the system in the next 18 months to two years.

Earlier this week, Borneo Bulletin reported that Brunei is looking at the possibility of implementing a Feed-in Tariff system for renewable energy, and in particular solar photovoltaic.



How FiT system works: You sell back electricity to the energy producer. Image: bendygo



Feasibility study currently on-going

The possibility of a feed-in tariff system was suggested by the Minister of Energy at the Prime Minister’s Office, while delivering a keynote speech at the opening ceremony of a Workshop on Policies, Feed-in Tariff Frameworks and Best Practices for Grid Connected Solar PV Projects at the Rizqun International Hotel in Bandar Seri Begawan.

The system, which would spur home ownership of solar PV technology,  is essentially an economic policy that allows users of renewable energy sources to sell energy back to their energy provider – a system that rewards the use of renewable energy.

While underlining that this is still a work in progress, the minister noted that FiT implementation would give homeowners a personal stake in the development of renewable energy in the country.

The results of the workshop will contribute towards the process, as delegates will discuss the finalisation of the feed-in tariff, the policy and how to make it as friendly and easy as possible to implement.


10% of energy needs from Renewable Energy

The Energy Department at the Prime Minister’s Office (EDPMO), has targeted for 10 per cent of their energy needs to come from renewable energy by 2035.

A Smart Grid, which is a modernised electrical grid used to improve the efficiency, reliability, economics and sustainability of electricity production and distribution, would be a major infrastructure investment.

It was highlighted that a feed-in tariff system would contribute enormously towards the country’s climate change agenda. People will use less electricity as opposed to the normal way of burning gas, and that there will be more usage of renewable energy.

“If the feed-in tariff has benefits for the country and its people, we will do it.”
- Dr Awang Haji Mohammad Yasmin bin Haji Umar, Minister of Energy at the PM Office

TheGreenMechanics: Great start by Brunei Darussalam. Looking forward to it giving benefit the people and the nation, and the globe as a whole.


Source: Borneo Post

Dr. Yee is new chairman of SEDA Malaysia

Dr Yee Moh Chai has been appointed Chairman of the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) effective Sept 1, 2013.

For a person who hails from Sabah, naturally his immediate task would to enable the FiT mechanism and other renewable energy initiatives such as biomass, hydro and solar energy to be implemented in East Malaysia - Sabah and Sarawak.

Currently, the implementation of FiT in Sabah is suspended until such time that the energy users here start paying the 1% levy.


Dr. Yee taking on new responsibilities

Dr Yee graduated with a medical and law degree from the University of Wales, United Kingdom, and had practised law in Kota Kinabalu. He was also Minister of Resource Development and Information Technology Sabah from 2004 to 2013 and former Api-Api assemblyman.

Announcing the appointment, Energy, Green Technology and Water Minister Datuk Dr Maximus Johnity Ongkili said the feed-in tariff (FiT) mechanism governed by the Renewable Energy Act 2011 operated entirely within a legal framework and Dr Yee’s legal background and vast experience in managing resources and information technology in the state would be a great asset to SEDA Malaysia.

SEDA Malaysia was formed under the Sustainable Energy Development Authority (SEDA) Act 2011 and helmed by Datin Badriyah Abdul Malek as Chief Executive Officer.

The key roles of SEDA Malaysia are to administer and monitor the feed-in tariff mechanism, promote sustainable energy in the country and advise the Minister of Energy, Green Technology and Water on policy matters with regard to sustainable energy.


TheGreenMechanics' two cents:

Let's hope Dr Yee would, during his 2-year tenure as Chairman, bring about changes in Sabah towards aggressive implementation of renewable energy projects here.

The vast supply of biomass, the best spot for solar radiation in the country, and the many potential areas for non-distructive mini-hydro installations in Sabah should benefit from his services.

Annual solar radiations in different cities in Malaysia

Two places where you'd get the best solar radiation in Malaysia are Kota Kinabalu (Sabah) and Bayan Lepas (Penang), with the former as the best spot.

It's a shame we do not have the SEDA Feed-in Tariff (FiT) in place in Sabah and Sarawak.

Table 1: Annual solar radiation in different cities/town in Malaysia
* Source - Sustainable Energy and Environment Forum

Table 1 shows that every square meter of solar panel produces a sum of 1,900 kWh of energy per year on average in Kota Kinabalu, compared to only 1,571 kWh in Kuala Lumpur.

Annual average value per square metre of solar cell.

Kota Kinabalu which receives a sum of 1900 kWh/m2 per year can be said to have received 1900 hours of sun per year at 1 kW/m2; or 5.2 hours of sun per day at 1 kW/m2

This means that for every square meter of solar panel you get around 5.2kWh of energy per day.

For a 1.48m x 0.67m panel with 15% efficiency, you get 0.78kWh of energy per panel per day. A 12-panel residential solar PV system will generate 280kWh/month*

In comparison, similar panel installed in Kuala Lumpur would give 232kWh/month*

*Some system integrators insist that PV panels continue to generate energy beyond the "5.2 peak sun hours", thus giving income of more than the estimated figures.

Income generated at both locations

Take the above installation size, and take the current FiT for solar PV of RM1.37/kWh, you generate and sell electricity to TNB from the roof of your home or car garage at:

K.Kinabalu     : RM383.60 per month or RM4,603 annually

K.Lumpur       : RM317.80 per month or RM3,814  annually

Note: With the current technology, more energy can be squeezed out of a 1 m2 than before; therefore, you use less area on your rooftop to generate similar amount of energy.

As you can see, location makes a lot of difference. Folks in Sabah and Penang are primely located, which makes you wonder why the Sabah state government is not willing to contribute to the Renewable Energy Fund to get the people to enjoy the same benefit as of those in West Malaysia.

The levy is just 1% of the the monthly electricity bills and it affects only the bigger energy users, i.e, those paying more than RM77 per month.

Alternatively, the state government can set aside an annual budget and pay to the fund holders at SEDA Malaysia for the first, say, 3 years. Thereafter, let the consumers pay the 1% levy just like those in peninsula.

Best spots to generate renewable energy through solar - the northern states. Image credit: SEE Forum

TheGreenMechanics: Again, it's a shame Renewable Energy FiT is not applicable in Sabah.

Author's note: This article was edited for correction on 3 December 2019.

SEDA pays out RM38 million to Renewable Energy feed-in approval holders

As of June 2013, SEDA Malaysia has paid about RM38 million to feed-in approval holders (FiAH) in the country.


What is Feed-in Approval Holder (FiAH)

FiAH is an individual or company who holds a feed-in approval issued by SEDA Malaysia, and the holder is eligible to sell electricity from renewable energy sources.

Example: If you have applied for FiT for installation of rooftop Solar PV from SEDA, and your application have been approved, you become a Feed-in Approval Holder.

FiT Quota Allocation
		Biogas	Biomass	Small Hydro	Solar PV (individual)	Solar PV  (non-individual)	TOTAL
Approved no.of applications	:	16	16	18	1,316	248	1,614
Approved capacity (MW)	:	25.33	150.29	115.05	16.64	173.14	480.45

Source: SEDA,    as of June 2013



RM38 million disbursed so far

Under the Renewable Energy Act 2011, individuals or non-individuals can sell electricity generated from renewable energy (RE) resources back to power utility firms at a fixed premium price for a specific time.

The four RE resources that are eligible for feed-in-tariff are biogas, biomass, small hydropower and solar photovoltaic (PV).

The payment is financed by an RE Fund contributed by electricity consumers who consume more than 300kWh of electricity per month. The current 1% extra charge translates to about RM300mil per annum.


“The amount of quota to be released depends on the amount of RE Fund which comes from the 1% extra charge currently imposed on the electricity tariff. The release of new quotas would depend on the next extra 1% supposed to be imposed in the next electricity tariff review, which is yet to be announced by the Government.” - SEDA Malaysia interviewed by StarBiz.


Can FiAH be revoked?

SEDA would not hesitate to revoke the licences given to FiAH who did not comply with the required project milestones. However, it is a tedious process to revoke FiAH and the revocation was legal, and thus, the authority would need some time to check if all milestones had been met.

The basis for revocation is always because FiAHs are unable to meet their milestones on project progress despite repeated reminders.

As of June 30, Seda had approved a total of 1,614 applications, with a total capacity of 480.45 MW, out of which 189.78 MW was from Solar PV.


Source: TheStar

180 MW hydropower plan to improve electricity in Sabah

The proposed 180 MW Ulu Padas Hydroelectric Project is scheduled for construction in 2014 and is targeted for completion in 2019. We've been slow at implementing similar initiative, but at least this should be a sign that things are finally moving.

This project is unique in that it only use small area of water catchment per megawatt of electricity generated. Meaning, much lesser environmental impact.

Daily Express, Sunday - August 18, 2013

The hydroelectric proposal in brief

Installed capacity	:	180 MW
Location	:	Kuala Tomani, Tenom
Cost	:	RM2.3 billion (approx US$702 million)
Catchment area	:	590 hectares, or 3.3 ha/MW
Scheduled commencement	:	2014
Scheduled completion	:	2019
Employment created	:	1,000 during construction

The project is also expected to tackle the perennial flooding issues in Beaufort and Tenom areas.


RM2.3 billion hydroelectric project in Tenom

Construction of the Upper Padas Hydroelectric Project (UPHEP) with a capacity of 180 megawatt (MW) at the Padas basin, upstream of Kuala Tomani in Tenom, would proceed next year and is targeted for completion in 2019.

The project had been approved with a government soft loan of RM569 million for SESB’s equity injection into a special purpose company to be set up to undertake the project.

The paper reported that UPHEP requires a water catchment area (** TheGreenMechanics' note: I believe this refers to 'flooded area' or surface area rather than catchment area) of only 590 hectares, or 3.3 hectares per MW, unlike the Bakun hydroelectric project which requires up to 29 hectares of land per megawatt of power generated and the Murum hydro’s 26 hectares per MW.

Murum hydroelectric has an installed capacity of 944 MW, while Bakun is 2,400 MW. Both are located in Sarawak.

“This project can qualify for the Clean Development Mechanism status under the United Nations Framework Convention on Climate Change.”- Energy, Green Technology and Water Minister, Datuk Dr. Maximus Ongkili

The government expect to save about RM4 billion in 40 years of the project operation as the infrastructure would be undertaken by the SESB and a consortium to be set up by the federal government. Subsequently, SESB's dependency on government subsidy can be reduced, while costs and losses from possible flooding are expected to be significantly reduced.


Assurance of proper EIA study

The Minister assured the people that the state government will ensure the preservation of the ecosystem at the project site while SESB is currently conducting a detailed engineering study and relevant activities associated with the special Environment Impact Assessment study.


TheGreenMechanics:
Let's hope this will improve electricity supply in Sabah. If proper environment assessment is done, and the welfare of those affected are fairly taken cared of, the people should give-and-take and allow this development to be carried out.


Source: Front page, Daily Express, Sunday August 18, 2013

How close to my house can they put that?

This is an illustration of how close should an installation (or in this case a source of pollution) be from your house. Apparently a wind farm needs to be sited further away from your home compared to coal-fired power plant.

Pretty cool way of putting things into perspective.

A seemingly harmless wind turbines must be built far away, while coal power station and gas well (coal seam gas) can be built just stone throw away from residential area.

This graph is believed to be the work of campaigners against coal seam gas project in Gippsland, a large rural region in Victoria, Australia.


Source

Malaysia, France to venture into new areas of Renewable Energy,Transportation and Biotech

A couple of days ago, French Prime Minister visited Malaysia, marking this country's importance as France's trading partner. In fact, Malaysia is France’s second largest economic partner in ASEAN and there are some 260 French companies here.

A welcomed piece of news to Malaysia's green initiative is that, both nations are looking forward to venture into new areas of cooperation, including Renewable Energy.

Malaysia and France to strengthen existing ties. TheStar photo

"My visit is also to look for new opportunities for French small and medium entrepreneurs to come and explore the possibility in Malaysia, particularly in the field of infrastructure, information and communication and sustainability city."
- French Prime Minister Jean-Marc Ayrault.

Malaysia, France to strengthen existing ties

Malaysia and France have agreed to strengthen existing cooperations and explore new ones in a move to boost the bilateral ties of both nations. Prime Minister Datuk Seri Najib Razak said both countries were on the same page to explore new cooperations in the fields of renewable energy, biotechnology and transportation.

"We look forward to receiving more French companies in Malaysia," he told reporters after a one-hour meeting with French Prime Minister Jean-Marc Ayrault yesterday.

Najib added his counterpart Ayrault had reassured Malaysia that deep understanding and the partnership between both countries would continue in the field of defence.

Malaysia also looked forward to receiving some of the acquisition that the country had made including the A400M aircraft and EC725 helicopters, said the prime minister.

On palm oil, Najib said Ayrault had told him that there would be no new tax on palm oil and it would be treated on the same basis with other vegetable oil in France.

Sourced from NST: http://www.nst.com.my/latest/malaysia-france-to-strengthen-existing-ties-1.328799?cache=03%2F7.224093%2F7.222923#ixzz2aXMEOxwK

World's wind turbines to generate more than 300 GW power by year end

The global wind energy sector will soon mark a major milestone: industry figures show that by the end of 2013, wind turbines will be generating more than 300 GW of power.

That's the equivalent of 114 nuclear power plants, says Reuters, which is reporting the latest figures from the European Wind Energy Association and the Global Wind Energy Council.

Wind power moving towards 300GW mark this year. Image credit: The Telegraph

Active wind farms across the globe. Image credit: Greenchipstocks


As Brazil, China, Mexico and South Africa add turbines, the figure represents modest growth compared with a year ago, when the overall total capacity was just over 280 gigawatts.

"Worldwide installed wind power will exceed 300 gigawatts of power capacity this year," Peter Sennekamp, media officer for the European Wind Energy Association (EWEA), said, citing figures compiled by EWEA and the Global Wind Energy Council.

Europe, which has led the world on wind, still represents around a third of all capacity, with more than 100 gigawatts, but its growth has been stalled by uncertainty as financial crisis has meant abrupt changes to subsidy regimes.

The European Commission, the European Union's executive, has supported the idea of harmonization of subsidies across the European Union and said it will publish guidelines before the summer break in August.

The most heated debate has been in Germany, ahead of elections in September, where the cost of energy and progress of implementing the nation's Energiewende are election issues.

Heavy industry has attacked renewable subsidies, arguing they add to costs and damage competitiveness, especially when the United States benefits from cheap shale gas.

Representatives of the renewable industry say they are working to produce energy that can compete economically with traditional sources, which would lower political risk.

They say they have made progress on onshore wind and solar, but for the huge scale of offshore wind, a technology still in its infancy, subsidies are essential, probably for the rest of the decade.

Wind energy executives note conventional fuel sources have long benefited from support in the form of tax breaks for oil and gas and government help in disposing of spent nuclear fuel.


Source: Reuters

Spanish wind power industry on the decline?

Spain ranks as number 4 globally in terms of installed wind energy but has dropped to 7th place in terms of new projects, according to the Global Wind Energy Council.

For many years, Spain has been a paradise for renewable energy producers with generous incentive and government support. But since 2009 the government has slowed down the development of one of the green energies - wind power - with various regulatory measures.


Blades manufactured at Gamesa’s factory (outside of Spain) in Ebensburg, Cambria County.
Photo credit: Nextcity


A case in point, Spain's Gamesa, which is among the industry's world leaders, cited "regulatory uncertainty, the persistent economic crisis and financial problems in the sector" as reasons as it laid off 606 of its 4,800 staff in Spain and closed two blade factories in recent months.

"Of the 43,000 jobs we had in the wind industry in 2009, there are only 23,000 left" - Sergio de Otto, Fundacion Renovables (Renewables Foundation).

When you outgrow the local market, go global!

For the likes of Gamesa, and any other green energy producers for that matter, it is not the end of the road.

Gamesa markets its products in more than 50 countries, with Mexico, Brazil and Indiabeing key markets. Ten years ago, the company sells 90% of its renewable energy products locally. Today it is the exact opposite - 90% of sales come from abroad.

TheGreenMechanics: Putting things into perspective, our national cars have outgrown the local vehicle market, so, it's time we venture globally. But first, we'll need a world class cars to begin with. An 'okay' product with artificially protected home turf is definitely not enough.


Read more here

Hawaii power companies to deactivate oil plants, ramp up Renewables by 2016

After a year of research and deliberation, three major Hawaiian power companies are now putting up plan to deactivate a total of 226 MW of oil-fired generating units, convert remaining baseload plants to cycling duty, and substantially ramp up use of renewables by 2016.

Indeed a great move by the utility companies.

Renewable energy projects in Oahu, Hawaii. Image credit: UCS-USA

The Hawaiian Electric Companies serve 95% of the state's 1.2 million residents and in the next 5 years plan the followings:

• To deactivate the Honolulu Power Plant and two of four units at Maui’s Kahului Power Plant by 2014, 
• To deactivate two units at Oahu’s Waiau Power Plant by 2016,
• Also includes Hawaii Island’s Shipman plant, which has already been deactivated and will be retired in 2014,
• To fully retire all units at Kahului Power Plant by 2019. The oil-fired units make up 14% of the utility's owned generation.

Focus on renewable energies

The companies will instead accelerate development of utility-scale renewable energy projects, including solar and wind. Plans include:

• Increasing the capability of utility grids to accept additional customer-sited renewable generation, especially roof-top photovoltaic systems, 
• Developing smart grids for all three companies,
• Installing smart meters for all customers in 2017–2018, 
• Automating grids, and developing utility energy storage systems.

Hawaii's renewable portfolio standard requires that the companies meet 15% of net electricity sales with renewable power by 2015, 25% by 2020, and 40% by 2030.

The three companies met a record of 13.9% of generation with renewables in 2012 i.e., installing 111 MW of nameplate utility-scale wind that year. By the end of this year, the companies expect to meet 18% of generation with renewables.

Hawaiian Electric Co. (HECO) also plans to convert or replace generating units, which have not been deactivated, to use “cost-effective, cleaner fuels,” including renewable biomass or biofuel and liquefied natural gas.


Source: Power Magazine

Personal-sized hydroelectric power generator you can bring anywhere

This invention reminds me of the small gasoline generator we used when spending a weekend at one of the electricity-deprived areas in Sabah.

Speaking of creativity, you can turn water into food, weapon, house, or you can turn a falling water into electricity. One such creative use of  falling water is the following small-sized hydroelectric power generator.

Powered purely by water, this generator can produce about half the power of what your typical 600W gasoline generator is capable of.

Cappa, the 250W generator, is ideal for mobile applications

The concept behind the blade

The developer, Ibasei shows how the ultra small hydroelectric generator is placed in a small stream

As long as rainfall continue to fill streams and rivers, water can be a renewable source of energy.


Compact hydropower generator

Japanese company Ibasei has unveiled a new idea in hydroelectricity generation; a turbine that can be placed in virtually any fast moving stream or river to generate small amounts of electricity for immediate use or as a charging station. Called the Cappa, it resembles an engine on a jet aircraft and can be easily placed into a location in just minutes.

The idea behind the Cappa is that not all hydroelectric systems need to be huge, and they don't have to plug a river or be situated at an optimal location either. Instead, any spot where the river narrows causing swift movement of the water can be used.

The Cappa is put in place by fashioning a couple of spans of some sort across the river or stream to form bridges. The turbine is then lowered into the water and held in place by the frame resting on the span. Once in the water, the Cappa goes to work without any further ado.

For water running at 2 m/s the turbine will generate about 250 W of electricity. Placing five of them in a stream could conceivably produce up to a 1 kW (allowing for control losses). To increase the efficiency of the turbine, engineers have tailored a diffuser that causes water flowing over the blades to move faster.


Suitable applications

The Cappa was developed for a variety of purposes, from use as in-place generators at outdoor parks to emergency backup systems, particularly in the event of a flood. It can also be used as an alternative to gas powered generators that people use when the electricity goes out.


TheGreenMechanics' two cents:

This is essentially a venturi tube with a propeller in its' throat. With a design like that, it is easy to duplicate at a much lower cost. Add a mesh screen on the front of it and you would take care of the debris that could have surely hit the blades.

The downside, however, is that at a price of a compact car, (say, Myvi @RM35,000 or US$11,000) many would give this a pass. 'Tree huggers' would love it but the cost would be too prohibitive.

Kudos to a bright idea though, it opens up a lot of possibility for the folks in the interior.


Reference: diginfo.tv

Open bidding for solar power Feed-in Tariff

In Malaysia, the 4 renewable energies covered under the government's feed-in tariff  are biogas, biomass, small hydro, and solar PV.

Of these, Solar PV is the most popular and the current first-come-first-served system utilized by SEDA in granting FiT to consumers has so far received some criticism from political figures because of the perceive transparency issues. "The PV quota is snapped up within minutes of opening" seems to be the complaints. This is especially the case for non-individual quota.

So, the Energy, Green Technology and Wa­­­ter Minister Datuk Seri Dr Maximus Ongkili, has an idea: Those intending to cash in on renewable energy (RE) production using solar power may need to go through an open bidding process in the future if demand continues to outstrip the funds available.


Response on solar PV overwhelming

Response to the solar photovoltaic (PV) segment of the Government’s Feed-in-Tariff (FiT) system – which pays consumers monthly for energy sent back into the national power grid – had been overwhelming since it was launched in 2011.

Under the FiT system, which has an annual fund size of RM300mil and currently only applies to the West Malaysia, participating consumers are paid for feeding energy produced using renewable power sources back into the national grid.

For example, a medium-sized house with a 4kW solar PV system can earn around RM550 a month based on monthly generation of 400kWh (units) of power fed back into TNB grid.

Dr Maximus spoke to reporters at the launch of Alliance Bank’s Home Complete PlusSolar Panel Financing scheme at the Sustainable Energy Development Agency office in Putrajaya.

Solar PV, which cover both individual and non-individual categories, accounts for around 41% of the total power production quota set aside under the FiT:-

• Solar PV (141.58MW)      - 41%
• Small hydro (99.35 MW)  - 28.8%
• Biomass (88.89MW)        - 25.7%
• Biogas (15.53)                 - 4.5%

Solar PV quota a good problem to have?

The minister in charge of energy indicated that this was a good problem to have as the government was keen on increasing the number of households and commercial operations involved in RE production, adding that the quotas would likely be revised upwards if there was a strong enough demand.

That is good but he must also look at the loopholes in awarding solar PV quota, especially with questions raised previously on companies (or companies under the same roof) sweeping most of the quota.

China invests nearly $40 billion in international renewable energy projects

China is known to rank first in the world in attracting clean energy investment, receiving US$ 65.1 billion in 2012.

But new analysis shows that China is increasingly becoming a global force in international clean energy investment, too. Between 2002 and 2012, the country has provided nearly $40 billion (RM126.4 billion) to other countries’ solar and wind industries.

A new update in the findings should include Malaysia in the destination countries list. We have China's investment in West Malaysia and the recent launching of Solar wafer manufacturing plant in Kuching Sarawak.

Figure 1: China's top 10 destination countries for the 2002-2012 period. Source

This investment is consistent with a broader trend of major emerging economies like China, India, and Brazil becoming important sources of global overseas investments.

China’s overseas Wind and Solar investments

Research shows that Chinese companies have made at least 124 investments in solar and wind industries in 33 countries over the past decade (2002 – 2011), more than half of which were made in 2010 and 2011 (see Figure 1). The wind/solar investment by the numbers:-

1. Of the 54 investments for which financial data were available, the cumulative amount invested came to nearly US$40 billion.
2. China invested roughly US$10 billion in 16 wind projects and US$27.5 billion in 38 solar investments.
3. Of 53 investments with capacity data available, the cumulative installed capacity added was nearly 6,000 MW.
4. The majority of investments were in electricity generation. Several investments were made in manufacturing facilities and to establish sales and marketing offices.
5. Most of the investments were in developed countries. A huge amount went to the United States, as well as Germany, Italy, and Australia.
6. A handful of developing countries—including South Africa, Pakistan, and Ethiopia—also attracted multiple investments.

Drivers and challenges to China's overseas investments

Both wind turbine and solar photovoltaic (PV) manufacturing industries have grown substantially – in 2010, four Chinese companies from each industry ranked among world’s top 10 manufacturers for wind turbine and solar PV respectively.

However, their market bases are quite different – China’s wind industry relies on its vast yet oversupplied domestic market, whereas the solar industry relies on the international market for 95% of its sales.

Both industries need to boost sales in international markets, which has not always been easy. Chinese wind companies are relatively new entrants to the international markets.

Declining subsidies in the European solar market have decreased demand for Chinese solar products. As a result, direct investments overseas are seen as a way of retaining and expanding market share, typically through creating demand for the export of products.


Read more at Environmental Expert

Sabah to become second generation biofuel centre

There are more that 120 oil palm mills in Sabah, and according to industry study, they can provide sufficient residues or waste for downstream processing to produce biofuels.

If Sabah can gather these mills in a joint venture initiative, there is no doubt we will be able to tap into the biomass pellets market for Asia region which is estimated to be 10 million tonnes a year by 2020.

Syarikat Teck Guan Group, one of the palm oil industry players here, have recently launched its pilot bio-ethanol project in Tawau.

Empty fruit bunches going to waste? Photo credit: biochar.org

What are second-generation biofuels

Advance biofuels, or second generation biofuels, are fuels that can be manufactured from various types of biomass. While first generation biofuels are derived from arable crops, second generation biofuels are made from lignocellulosic biomass or woody crops, agricultural residues or waste.

It is more difficult to extract them in the second generation biofuels, but unlike in the first generation, sourcing of raw materials doesn't compete with the food supplies.


Biomass joint venture cluster formed in Sabah

The aspiration to turn Sabah into the country's second generation biofuel centre is one step closer with the signing of the first of its kind biomass joint venture cluster here yesterday.

In the ceremony, some 10 oil palm mills here made their commitment to supply oil palm biomass to the joint-venture company, Lahad Datu Biomass JV Cluster, which they themselves own.

These include major plantation companies, namely Teck Guan Group, Bell Group, Genting Bhd, Kelas Wira Sdn Bhd and Golden Elate Sdn Bhd.

The company will then decide on the best use for the biomass such as producing solid or liquid biofuels in the form of pellets or ethanol, according to a statement from Palm Oil Industrial Cluster (POIC) Sabah Sdn Bhd.

"Oil palm mills are the source of empty fruit bunches (EFB), the main ingredient in pellets and this cluster is a concept by Agensi Inovasi Malaysia (AIM), an agency in the Prime Minister's Department.

"It aims at aggregating sufficient volumes of biomass for a portfolio of downstream processing activities, where participation of biomass owners assures long-term supply which was the main stumbling block to take-off of the biomass industry.



Solid biofuel in the form of 6mm diameter empty fruit bunch (EFB) pellets. Photo credit: Masharum Corp


"AIM has identified about 70 of the 120-plus mills in Sabah to be potential partners in biomass JV clusters, with hope to aggregate some 1.5 million dry tonnes per JV cluster to realise the objective of making Sabah the Malaysian centre for second generation biofuel," said state-owned POIC Sabah.

Agensi Inovasi Malaysia, in collaboration with POIC Sabah Sdn Bhd, was instrumental in staging workshops, visiting oil palm companies and ultimately persuading a pioneering group of private companies to set up a JV cluster amongst themselves.

"I hope these companies coming on board this JV cluster will inspire other oil palm companies to move from watching to being participants, so that we together can take our industry to an unprecedented level."
- Datuk Raymond Tan Shu Kiah, State Industrial Development Minister

AIM is the main driver of the National Biomass Strategy 2020 that seeks to unlock the potential of Malaysia's abundant biomass through value-adding manufacturing to create new wealth and high-wage jobs.

A biomass manufacturing industry is estimated to contribute RM15 billion gross national income (GNI) to Sabah's economy by 2020.

Biomass pellets have a worldwide market and in Asia, the demand to the tune of 10 million tonnes a year by 2020 is driven by Japan and South Korea as they attempt to fulfill a renewable energy mandate.

Similarly, there is a global demand for second-generation ethanol, or ethanol derived from biomass as it can be used as a fuel or can be further processed to other chemicals.


Source: Business Times

Teck Guan launches bio-ethanol project

Being the largest producer of crude palm oil in the country, there is certainly potential for a large scale production of bio-ethanol in Sabah. And.. someone has finally taken the first step towards achieving that.

The setting up of a plant in Tawau, Sabah is a wise move by palm oil planter Teck Guan. It says that 1 metric tonne of empty fruit bunches can produce 72 litres of ethanol. Other bio-products are also possible.

Imagine how much can be tapped from the millions of biomass in the palm oil industry here!

Image credit: BEST

Bio-ethanol project in Tawau

Syarikat Teck Guan Group has started a pilot project to produce lignocellulosic bio-ethanol from oil palm biomass.

Operational Innovation, Research and Development director Douglas Furtek said the plant, construction of which began in May, is expected to be operational by month-end.

"The plant can produce 72 litres of ethanol from a metric tonne of wet empty fruit bunches, and capacity can be easily upscaled," he told Bernama, while expressing the hope that more foreign investors would be attracted to the state, the country's largest palm oil producer.

It is understood the plant, the first in the country to produce ethanol from empty fruit bunches (EFB), will contribute to the production of bio-fuels, bio-plastics and other environmentally-friendly products.

Furtek hoped more foreign investors would be attracted to the state, the country's largest palm oil producer.

Agensi Inovasi Malaysia strategic innovation executive vice president Bas Melssen said Sabah, with its abundant oil palm biomass and palm oil mills within a relatively small area, is well-positioned to benefit from biomass, more so than any other state.

"Biomas products, in the form of pellets, bio-based fuel or bio-based chemicals, can contribute RM30bil a year to the national economy and create 66,000 high-value jobs by 2020," Melssen said, adding half of these jobs would be in Sabah. - Bernama

Australian Wind Energy now cheaper than Coal and Gas

This is very encouraging for the Renewable Energy industry.

Bloomberg says that wind is now cheaper than fossil fuels in producing electricity in Australia, the world's biggest coal exporter.

Wind farm on a beautiful landscape. Image credit: DP Energy

Renewable energy, mainly driven by hydro- and wind-power projects, contributed 9.6% of Australia's electricity production in 2011, up from 8.7% in 2010, according to the Clean Energy Council.

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Bloomberg: Australian Wind Energy Cheaper Than Coal, Gas

Electricity can be supplied from a new wind farm in Australia at a cost of A$80 (approx. RM236) per megawatt hour, compared with A$143 (RM421) a megawatt hour from a new coal-fired power plant or A$116 (RM342) from a new station powered by natural gas when the cost of carbon emissions is included, according to a Bloomberg New Energy Finance report.

Coal-fired power stations built in the 1970s and 1980s can still produce power at a lower cost than that of wind, the research shows.

Relying on fossil fuels to produce electricity is getting more expensive because of the government's price on carbon emissions imposed last year, higher financing costs and rising natural gas prices, BNEF said.

The cost of wind generation has fallen by 10% since 2011 on lower equipment expenses, while the cost of solar power has dropped by 29%.

"The fact that wind power is now cheaper than coal and gas in a country with some of the world's best fossil fuel resources shows that clean energy is a game changer which promises to turn the economics of power systems on its head," Michael Liebreich, chief executive officer of Bloomberg New Energy Finance, said in a statement today.

Renewables Target

While wind energy has become more competitive, Australia's plan to get at least 20% of its power from renewables by the end of the decade is still required to drive investment because of weak energy demand, the report said.

Australia last year started charging its biggest polluters a price of A$23 a metric ton for their carbon emissions to discourage the use of fossil fuels and fight climate change.

"The low and falling costs of renewable energy and high and rising costs of coal- and gas-fired plants suggest that much of Australia's new generating capacity is likely to be renewable," Sydney-based Bloomberg New Energy Finance analyst Kobad Bhavnagri wrote in the report.


Source: Bloomberg