Domestic Fuel

Sungevity has completed a series of venture capital and project financings securing up to $125 million. The funding includes $40 million in equity financings raised in 2012 led by Oakland-based impact investment fund, Brightpath Capital Partners, and home improvement retailer, Lowe’s. New equity investors Vision Ridge Partners, Craton Equity Partners and Eastern Sun Capital Partners, LLC, also participated. The funding also includes a combined $85 million in new project financing commitments from two parties including Energy Capital Partners (ECP) and an undisclosed commercial bank.

According to the company, the funds will be used to support the development of solar projects across nine U.S. states. The company also has a presence in Europe through Netherlands-based, Zonline, and in Australia through a joint venture called Sungevity Australia.

“Our ability to attract substantial investment from a list of respected backers is a powerful vote of confidence in our highly scalable growth model and customer-centric approach to doing business,” said Andrew Birch, Sungevity’s Chief Executive Officer. “We believe this new funding will take us into the next phase of growth and allow us to deliver on our mission of building the world’s most energized network of customers who power their lives with sunshine.”

In 2012, the company optimized its Solar Social Strategy, which helped the company overcome the sector’s common hurdle of high-cost customer acquisition. Key components of the strategy include partnerships along with software that allows Sungevity customers to make referrals. The company also leverages Internet and satellite technology to circumvent the high overhead costs related to providing potential customers with pricing quotes, and it partners with a network of preferred local installers to offset staff-related installation costs. As a result, the company has reduced installation costs by 30 percent in 2012.

Nazar Massouh, who leads ECP’s energy-focused mezzanine investment activities, added, “Energy Capital is excited to partner with Sungevity to provide an innovative and flexible capital solution to efficiently finance its on-going solar installations. Sungevity’s unique customer acquisition approach, scalable business model and stable cash flow generated by its established customer base, is a natural fit for our diversified energy portfolio.”

A new report shows that advanced energy became a $1.1 trillion market globally in 2011, outpacing even pharmaceutical manufacturing worldwide, and the U.S. sector is expected to have grown by 19 percent last year, with American revenues rising to $157 billion. The report from Advanced Energy Economy highlights how in 2011 alone, this advanced energy sector, including hydropower, solar, wind, geothermal, waste and biomass, generated more than $20 billion in federal, state and local taxes:

“Advanced energy is what happens when energy meets 21st Century technologies,” said Graham Richard, CEO of Advanced Energy Economy, a national business organization. “This report defines precisely, for the first time, the size, breadth, and scope of the advanced energy industry. With a $1 trillion global market and a U.S. industry that is already bigger by revenue than trucking, advanced energy is a significant contributor to the economy today and has greater potential for tomorrow.”

AEE defines advanced energy as the best available commercial technologies for meeting energy needs today and tomorrow. With global energy consumption projected to rise nearly 40 percent by 2030, future prosperity depends on meeting this growing demand with energy that is secure, clean and affordable.

Officials compare the potential of the advanced energy sector to transform society and the economy to how the Internet has created so many new opportunities. AEE admits that its estimates might be a bit conservative, understating the size and extent of advanced energy economic activity in the U.S. and around the world.

Evance Wind Turbines, a manufacturer of small wind turbines, has received full certification from the Small Wind Certification Council (SWCC) for its 5kW R9000 turbine. The SWCC is a U.S.-based independent body that certifies small turbines for performance and safety. The Evance R9000 successfully passed rigorous safety, function, performance and durability testing, in accordance with the American Wind Energy Association Standard (AWEA), to become one of only four turbines to achieve full certification from the SWCC.

Kevin Parslow, CEO of Evance Wind Turbines said, “It is great news that we have received full SWCC certification for our R9000 turbine. There are R9000 small wind turbines installed across some 17 states, and we’re looking to expand this significantly during 2013. Customers already know our turbine is highly efficient and durable; however, it’s good to receive independent confirmation from the SWCC – not only promoting consumer confidence and industry credibility, but also helping to establish pathways to qualify for incentives.”

Mike Langert, who lives in Montana, installed a R9000 to generate wind energy to power his home. “Our home has been built to be energy efficient – with well-planned windows, lighting, insulation, and a GSHP heating/cooling system – but we still use 12,000 to 15,000kWh of electricity a year. With the Evance turbine now generating up to 75 percent of our requirements, we are saving a substantial amount on energy costs and reducing our use of power generated from fossil fuels,” explained Langert.

The Evance R9000 is a UK-designed and manufactured 3-blade, upwind, horizontal axis wind turbine with a swept area of 23.8 m2. The AWEA Rated Annual Energy is 9,160kWh, for one year based on an average wind speed of 5 m/s (11.2 mph), and the AWEA Rated Power is 4.7kW at 11 m/s.

The Federal Energy Regulatory Commission’s Office of Energy Projects has released its latest “Energy Infrastructure Update,” and finds that renewable energy sources including biomass, geothermal, solar, water, and wind, accounted by 49.10 percent of all new domestic electrical generating capacity installed during 2012. The total was 12,956 MW and more than a quarter of that new capacity, or 3,276 MW, came online during December 2012 alone.

Wind power led the way in 2012 with 164 new “units” totaling 10,689 MW installed. Solar power followed with 240 units totaling 1,476 MW installed. Biomass added 100 new units totaling 543 MW while geothermal steam and water each had 13 new units with installed capacities of 149 MW and 99 MW respectively. By comparison, during 2012, new natural gas generation in service totaled 8,746 MW (33.15%) followed by coal (4,510 MW -17.09%), nuclear (125 MW – 0.47%), and oil (49 MW – 0.19%).

New capacity from renewable energy sources in 2012 increased by 51.16 percent compared to 2011 when those sources added 8,571 MW. In 2011, renewables accounted for 39.33 percent of all new in-service generation capacity. Renewable sources now account for 15.40 percent of total installed U.S. operating generating capacity: water – 8.47 percent, wind – 4.97 percent, biomass – 1.30 percent, solar – 0.34 percent, and geothermal – 0.32 percent. This is more than nuclear (9.24%) and oil (3.57%) combined.

“If there were still any lingering doubts about the ability of renewable energy technologies to come on-line quickly and in amounts sufficient to displace fossil fuels and nuclear power, the 2012 numbers have put those doubts to rest,” said Ken Bossong, Executive Director of the SUN DAY Campaign. “Not only has renewable energy become a major player in the U.S. electrical generation market, but it has also emerged in 2012 as THE reigning champion.”

Ceres has been awarded the top prize in the non-governmental organization (NGO) category of the Zayed Future Energy Prize that honors innovative companies who have had a positive impact and shown strong leadership in the renewable energy and sustainability sectors. The award is part of the World Future Energy Summit, and this year’s awards attracted 579 submissions from companies in 88 countries.

“We believe that investing in people is the future of our collective prosperity,” said His Highness General Sheikh Mohammad bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, at the awards ceremony. “Through the Prize, we are not only recognizing tremendous achievement, but also providing support to help accelerate promising technologies and fund organizations, schools and individuals committed to impacting communities around the world.”

Olafur Ragnar Grimsson, President of the Republic of Iceland and Chairman of the Zayed Future Energy Prize Jury, noted that the winners show that change is possible and that vision and innovative thinking hold great promise through practical endeavors.

“Ceres is honored to receive a Zayed Future Energy Prize, and we believe it will enable us to have an even greater impact in our work,” added Mindy Lubber, President of Ceres. “In order to tackle the global challenge of climate change, we must expect even bolder action from investors, businesses, and policymakers. We will use the Prize to expand international investor leadership on clean energy and to grow our ongoing work with leading companies that are striving to integrate sustainability into their operations by reducing greenhouse gas emissions, improving energy efficiency and sourcing renewable energy.”

January 15, 2013 is Iowa Wind Day at the Capitol, in Des Moines, Iowa. Iowa Governor Terry Brandstad will be a featured speaker during the event and other speakers include Kathleen Law, the Iowa Wind Energy Association’s (IWEA) Board of Directors President, and Harold D. Prior, IWEA’s executive director.

The free event will feature more than 20 exhibitors representing many aspects of Iowa’s wind energy industry. Exhibits are open from 8 a.m. until 12 noon for legislators and renewable energy enthusiasts to learn more about the wide diversity of opportunity in the wind energy industry.

Iowa leads the nation in the number of wind manufacturers and wind related businesses and was the first state to exceed 20 percent of its electrical generation from wind. The state also leads the nation in the number of wind jobs and its ranked third nationally behind Texas and California in installed capacity. According to IWEA, Iowa is one of four states that would benefit the most from increased wind investment and has outstanding wind resources. Iowa’s central location, access to two navigable rivers and the U.S. Interstate Highway system are also distinct advantages leading to further growth of the wind energy industry in Iowa. Lastly, Iowa has many planned electrical transmission projects that will help move wind power (aka all power) to Iowans living throughout the state.

Los Vientos I & II wind farms have been completed in south Texas and now operational, have the capacity to produce 402 megawatts of wind power. Both projects are owned by Duke Energy Renewables and the project marks the company’s largest wind-power project to date. With the geographic location, approximately 120 miles south of Corpus Christi and 20 miles inland from the Gulf of Mexico, the two wind farms will generate the majority of their power during the day, when peak power demand is highest.

“2012 was a very significant year for us,” said Duke Energy Renewables President Greg Wolf. “With five new windpower projects and three new solar power projects commissioned into service, we added 800 megawatts of clean, emissions-free energy to our fleet last year alone. Now that Los Vientos I and II are on line, our total renewable power capacity grows to more than 1,700 MW, enough to power about half-million homes.”

All of the output and associated renewable energy credits from the 200 MW Los Vientos I Windpower Project in Willacy County are being sold to San Antonio-based CPS Energy under a 25-year agreement. In addition, Austin Energy is buying all of the output and associated renewable energy credits from the 202 MW Los Vientos II Windpower Project, sited in Willacy and Cameron Counties.

Duke Energy Renewables Vice President Milton Howard added, “We’re proud to be partnering with CPS Energy and Austin Energy to bring renewable energy to this region. And, we couldn’t have done it without the foresight of the leaders, landowners and people of Willacy County. Thanks to them, we were able to bring 600 jobs to the area during construction, and going forward, the Los Vientos projects will continue to boost economic development, support the local school districts, and be a source of dependable tax revenue for years to come.”

According to a new report, companies that invest more money in the research and development more efficient means of producing renewable energy, the better able the company is to satisfy consumers and drive growth. Additional growth is, and can be continued, through government subsidies and initiatives. Recently, there has been an increase in investments in the renewable energy field, especially in solar and wind energy.  Companies such as First Solar and SolarCity prove that R&D drives both growth and greater profits.

Last week First Solar announced a partnership with Intermolecular to increase conversion efficiency. SolarCity has recently announced a 117 percent growth of the amount of energy the company installed in 2011 (72 MW). Early indications show that 2013 is expected to beat the company’s original projections.

The report concludes that if consumers continue to see the long-term benefits of renewable energy, green energy companies should expect to have a strong and stable position in the overall market. The report anticipates a strong macro trend towards companies focusing on renewable resources and “green” products. In addition, institutional funds are adding corporate responsibility, ethical investing and environmental concerns as priorities when screening for new investments. The report believes that this change in dynamic within the investment community will create a “mass exodus” of investment dollars from aggressive cost-cutting companies towards companies focused on ethical approaches to business, consumers and the environment.

There is a little secret in the renewable energy sector that many don’t know about – New Markets Tax Credits. These tax credits provide incentives for private investors to help fund projects that create jobs and diversify economics, and were extended for another year as part of the American Tax Relief Act.

Congress first established the program in 2000 to stimulate investment and economic growth in low-income and under-served rural and urban communities that are often overlooked by conventional capital markets. Investors receive a seven-year, 39-percent federal tax credit as incentive to finance loans and investments in businesses and economic development projects in distressed communities. They are not restricted to energy projects.

According to CEO Charles Spies, CEI Capital Management is a national leader in awarding New Markets Tax Credits, having invested nearly three-quarters of a billion dollars in the last nine years. CEI Capital Management has its own triple bottom line investment criteria, where projects must benefit the local community, demonstrate economic gain and have a positive impact on the environment.

Last year, CEI Capital Management allocated $20.7 million in new markets tax credits to the $275 million Burgess BioPower Plant in rural Berlin, New Hampshire. Built on the site of a defunct paper mill, the plant will produce 75 megawatts of power from 759 thousand tons of sustainably grown wood annually. The project currently employs about 300 construction jobs and is on track to sustain 40 jobs in management and plant operations plus hundreds more in the woods associated with harvesting and transporting biomass.
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There is a new transmission line up and running between San Diego and the Imperial Valley in California. The 117-mile 500-kv transition line, “Sunrise Powerlink” is transmitting energy from the now operational Ocotillo Wind project to residents and businesses in Southern California. The 265 megawatt (MW) wind power project consists of 94 turbines with an additional 18 turbines to be installed in the spring. The project is owned by Pattern Energy, and the energy produced is being sold to San Diego Gas & Electric (SDG&E) via a 20 year power purchase agreement.

“The Ocotillo Wind project is a shining example of achieving local, state and national energy goals, while being the first renewable project to connect to the Sunrise Powerlink,” said Mike Garland, CEO of Pattern Energy. “Nearly 70% of the project was ‘made in America,’ producing local construction jobs, manufacturing jobs at the Southern California factory where the towers were built and additional jobs in factories around the United States where the turbines and other components were made. The Ocotillo site has the strongest winds in the Imperial Valley, which results in attractive energy prices for San Diego County residents. We would like to thank SDG&E, California ISO, the local community leaders, and the Imperial County Board of Supervisors for their tremendous efforts in helping make the Ocotillo wind project a reality.”

The Sunrise Powerlink transmission line was completed in June 2012 and connects San Diego with the Imperial Valley – one of the most renewable-rich regions in California. The Sunrise Powerlink will eventually carry 1,000 MW of additional power into San Diego, or enough energy to serve 650,000 homes.

The project was selected by the Bureau of Land Management, and utilizes 112 Siemens 2.37 MW turbines, including American made wind towers, blades and nacelles. The Ocotillo Wind project was selected by the Bureau of Land Management (BLM) to help America reach its clean energy goals and protect its future energy security. The project is utilizing 112 Siemens 2.37 MW turbines, including American-made Siemens wind towers, blades and nacelles. The towers are made in California, manufactured by Ameron International, while the blades are made in Iowa and the nacelles are made in Kansas.

“When the Sunrise Powerlink was put into service this past June, it instantly brought reliability to a region with strained resources; one of the key reasons why the transmission line was designed,” said Michael R. Niggli, president and chief operating officer of SDG&E.  “Six months later, the line is carrying its first green contracted megawatts, solidifying another reason SDG&E proposed and built this project. We applaud Pattern Energy’s perseverance in seeing this project through and we look forward to the Ocotillo Wind Energy Facility being the first of more than a half dozen other renewable projects in Imperial County to connect to the Sunrise Powerlink.”

Students in O’Fallon and St. Peters, Missouri are riding to school in Blue Bird propane-powered vision school buses. The Fort Zumwalt School District piloted eight propane-powered school buses and found that they cut costs and reduced emissions. Since last June, the buses have produced 60 percent less carbon monoxide, 12 percent less carbon dioxide, 20 percent less nitrogen oxide and up to 25 percent less greenhouse gases when compared to gasoline. In addition, for the current fiscal year, the district is averaging $2.15 per gallon less than diesel fuel.

“The district is saving around 18.9 cents per mile due to lower fuel costs and anticipates these 8 Propane-Powered buses will save approximately $18,000 this school year,” said Jeff Orr, chief financial officer for Fort Zumwalt School District. “I have been told Fort Zumwalt is the first school district in the state of Missouri to add Blue Bird’s innovative Ford and ROUSH CleanTech powered propane buses to its fleet, and we are pleased to be the leader.”

Earlier this week, the school district won the Community Leadership in Environmental Awareness Now (CLEAN) award, presented by the Missouri Propane Education & Research Council. The award recognizes organizations that replace conventional fuel consumption for cleaner burning, domestically produced propane.

“We are delighted that Fort Zumwalt School District is seeing the immediate savings and environmental benefits associated with our propane technology,” added Phil Horlock, president and CEO of Blue Bird Corporation. “These buses will ensure that students in O’Fallon and St. Peters benefit from cleaner air while taxpayers can relish in the fuel and maintenance savings associated with propane autogas. With our partners at Central States Bus Sales and ROUSH CleanTech, Blue Bird will continue to provide comprehensive training and support to the transportation team at Fort Zumwalt.”

There is gold in Mexico. Not the kind you wear around your neck and fingers in the form of jewelry, but the kind that produces renewable energy. The field of energy dreams lies in the Sonora Desert in Northern Mexico, and some experts believe that only 25 square kilometers could provide enough solar energy to supply Mexico’s 114 million residents with power.

Although the country is blessed with lots of sun, the solar industry is still in in infancy. The Global Horizontal Irradiation (GHI) averages nearly 5 kWh/m2/day, making Mexico a great place to invest in solar energy. But how do you attract investors in a time when many are hesitant to invest in renewable energy, despite it’s bright outlook? This will be one of the main themes during SolarPlaza’s El Futuro Solar: Mexico conference that will be held in Mexico City on February 28, 2013.

“We´re at the very beginning of formalizing the market,” said Carlos Flores, CEO of Conermex, a Mexico City-based company specializing in renewable energy solutions. He will be one of the speakers at the event. He notes there are still few incentives for investors in terms of subsidies or injection tariffs. “One of the problems is the cost of solar power for private users with high levels of consumption; the industrial sector pays much less.”

Although efforts have been made to make the market more attractive, there is still a long way to go to reach the country’s solar energy potential. To date, solar development has been mainly focused on small scale projects in rural areas to provide communities with off-grid electricity. This, however, is changing and more large solar projects are under consideration. Flores add that not only do solar projects needs to be developed, but the domestic market, including manufacturing, need to be developed as well.

A new initiative, MyEnergi Lifestyle, has been launched to demonstrate how a typical American family can significantly reduce their electricity bills and carbon dioxide footprint. The campaign is a collaboration between Ford, Eaton, SunPower and Whirlpool and combines energy efficiency tips with plug-in vehicle technology. Specifically, MyEnergi Lifestyle showcases how combining renewable energy generation with “time-flexible” loads optimizes energy consumption across a plug-in vehicle and home appliances.

My a home incorporates MyEnergi Lifestyle, A computer model developed by Georgia Institute of Technology predicts a 60 percent reduction in energy costs and savings of more than 9,000 kg of CO2 (55 percent reduction) from a single home. The new program is being featured during the 2013 International CES in Las Vegas this week.

“More than ever, cars are sharing the same energy source as the home,” said Mike Tinskey, global director of Vehicle Electrification and Infrastructure, Ford Motor Company. “The time is right for the home appliance and transportation sectors to converge if we are going to tackle a myriad of sustainability challenges in a rapidly changing world.”

According to Warwick Stirling, global director for energy and sustainability for the Whirlpool Corporation, the average American home uses more than 11,000 kWh of electricity per year. However, he said, recent technologies can help a family use energy smarter and more efficiently.

“SunPower is offering Ford plug-in vehicle owners the world’s most efficient solar power systems to ensure they maximize emission-free power generation for use at home and for their vehicles,” said Ken Fong, SunPower general manager, Americas. “SunPower systems offer the industry’s best warranty, so homeowners can count on 25 years or more of clean power to support their sustainability goals and generate significant annual savings on their electricity bills.”

Joanne Edwards, added, that as innovation in home electrical technology advances, so does the need for safe, reliable power distribution. She is the vice president and general manager of Eaton’s residential division and notes that giving homeowners the tools to tap into distributed power in their homes allows them to modify their behavior and reduce energy consumption.

According to Liu Qi, deputy director general of the National Energy Administration, wind power is the third-largest source of electricity in China. He proclaimed that there is no electric power to substitute the position of wind power as No. 3, during the 18th CPC National Congress. He added that China “is determined to promote the revolution of energy generation and consumption to control the total consumption of energy, to improve energy conservation, and to support the development of energy conservation and the low carbon industry as well as renewable energy in order to ensure the safety of national energy.”

Late last year, the State Council released the white paper, “China’s Energy Policy 2012,” stating that wind power has the greatest possibility of large-scale development and market utilization. The country’s development of wind power is the fastest in the world and China’s 12th Five-Year Plan, sets a goal of developing wind energy in both concentrated and distributed formats and the utilization of wind resources will be accelerated including the development of offshore wind power.

Qi also announced that China is committed to strengthening grid construction, improving grid dispatching, enhancing equipment performance, advancing wind power predictions and forecasts, more. The goal, by 2015, is for the country’s total wind turbine installed capacity to reach 100 million kW, including 5 million kW offshore.

On November 23, Longyuan Wind Power realized the completion of 150 MW in an offshore wind demonstration project in Rudong, Jiangsu Province. This is the largest offshore wind farm to date in China. As more projects continue to be developed, the county’s industry is hosting Offshore Wind China 2013 being held in Shanghai June 19-21, 2013. The event is being organized by the Chinese Renewable Energy Industries Association, the National Renewable Energy Center, and Shanghai International Exhibition Co., Ltd.

Although the Taxpayer Relief Act is an all but done deal, stakeholders across numerous industries continue to pick at the legislation. This is particularly true for the renewable energy industry. Legislation can be hard to digest and so the law firm Milbank, Tweed, Hadley & McCloy created a “crib” sheet, or alert, giving a brief overview of how the Act will impact current and future projects in the renewables space including wind, biomass, geothermal, landfill gas, hydropower, cellulosic and advanced biofuels, biodiesel and even marine and hydro projects.

According to Millbank, the most important feature was the extension of the production tax credit for qualifying wind projects. A project must begin prior to January 1, 2014. The alert notes, “any such qualifying facility (or the electricity generated and sold from it)” that can get off the ground in the next year will be eligible for the tax credit – “regardless of when the facility is placed in service.” That suggests a big financial infusion into the wind industry during 2013 to jump-start projects that may have been put on hold pending the outcome of the tax bill.

Milbank points out in the alert that the legislation does not modify the eligibility requirements for certain types of projects, including those generating power through small irrigation, solar energy, refined coal, or Indian coal, rather keeps the same requirements in place. In addition, the alert takes a close look at tax allowances, including the special first-year allowance, otherwise known as “50% bonus depreciation” to qualifying property placed in service before next January 1.

Across the board for renewable energy, the tax extenders only stay in place for one year. This means that the renewable energy industry will need to take advantage of the tax packages this year while also looking at how to continue growth as uncertainty about industry tax incentives remain on the “cliff” beyond this year.