A new investment program announced by the French government will invest €1.35 billion into renewable energy and green chemistry over the next four years.

The funding support, coming in the form of subsidies and loan guarantees, will accelerate over the years, eventually reaching €290 million/year by 2014.  The program aims to attract an additional €2 billion from private investors and other research groups.

France’s extensive use of nuclear-fired plants has contributed to the country’s claim to 90% low carbon electricity.  However, President Sarkozy’s administration is furthering efforts to develop renewable energy sources such as solar and wind.  The new funding will also support sustainable transportation initiatives and smart grid technology developments.

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Regulators in California have approved a license for the first large-scale solar thermal plant to be built in the United States in twenty years.

After a 2 ½ year-long environmental review, the Beacon Solar Energy Project will be constructed on a 2,012 acre plot of former farmland.  Solar thermal plants generate electricity by using long trays of parabolic mirror to reflect the sun’s rays and heat a tube of liquid.  The super-heated liquid then creates stem to fire a turbine which generates electricity.

“I hope this is the first of many more large-scale solar projects we will permit.  This is exactly the type of project we want to see,” said an Energy Commission member.

However, the Beacon project still has more hurdles to overcome, including environmental concerns about impact on limited water supplies and vulnerable wildlife.  Beacon must also secure a contract to sell the electricity they generate.  The project supporters are optimistic about obtaining this type of contract, considering California’s utilities are required to purchase 20% of the electricity from renewable sources by 2020.

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China’s renewable energy industry has skyrocketed in recent years, and the nation has now overtaken the United States as the world’s leading clean energy investor.  The Chinese government continues to encourage this growth with favorable policy support.   Some key Chinese policy developments as related to the industry are as follows:

Renewables

• Total renewable power capacity in China reached 226GW in 2009, representing 1/4 of the nation’s total.  The government is calling for a total of 500GW of renewable power capacity by 2020, or about 1/3 of total power capacity.
• Renewable Portfolio Standards (RPS) for Chinese utilities require 8% of all capacity and 3% of power to be generated from non-hydro renewables by 2020.
• Revisions to the 2005 Renewable Energy Law will require increased cooperation between new renewables and the grid to ensure the generated power is transmitted efficiently.  The revisions also strengthened the Ministry of Finance’s renewable energy fund, which collects a tax on all electric power sales.

Wind

• Chinese wind power in particular grew thirty times over between 2005-2009.   China is now just behind the U.S. in total installed wind capacity.  Its turbine manufacturing industry grew to the world’s largest in 4 years.  The government has amended the wind power Feed-in-Tariff, and aims for 150GW of new installations by 2020.

Solar

• The “Golden Sun” program, introduced in 2009, will provide generous subsidies for solar PV installations.  Currently 300 projects have been proposed, totaling nearly $2.9 billion in investment.

Nuclear

• China has expanded its pledge to achieve 15% of all primary energy from “non-fossil fuel sources” by 2020.  This expanded directive will allow nuclear power to be included in the total accounting.

Carbon

• New carbon intensity targets were announced in Dec 2009, which aim to reduce the carbon intensity of GDP by 40-45% by 2020 relative to 2005 levels.

Energy Efficiency

• The 5 Year Plan for 2006-2010 aims to increase energy efficiency by 20%, including pumps, fans, boilers and the production of materials like steel and cement.

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Investing in “green growth” can help catalyze Greece’s economic growth and attract outside investment into the nation’s ailing economy, officials say.

Greece’s  €12 billion investment plan includes urban improvement projects, new natural gas pipelines and storage facilities in northern Greece.  The government hopes to attract a total of €22 billion in external private investment in the coming decade.  Environment Minister Tina Birbili hopes the program will “decisively contribute to face recession and lead to dynamic economic growth.”

Although Greece has ample wind and solar resources, renewable energy contributed only 4% of the nation’s electricity generation in 2009.  However, by 2020 Greece has pledged to ramp up renewables’ share to 40% of its total electrical output.

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Australia’s new Prime Minister Julia Gillard has demonstrated strong support for her domestic renewable energy industry.

Sworn in last month to replace previous leader Kevin Rudd, Gillard said she is “committed to Australia’s largest ever investments in solar and other renewables.”

Gillard has not made specific mention of the controversial carbon cap-and-trade system which former PM Rudd had championed.

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A new report from the Renewable Energy Policy Network for the 21st Century (REN21), a body affiliated with the United Nations and the International Energy Agency (IEA), says renewable energy accounts for over half of all new electricity capacity added in the United States and Europe during 2009.

The REN21 report highlights the shift in manufacturing and deployment of these new energy technologies from developed nations to growing ecnomies like China, Brazil and India.

In 2009, China produced 40% of global solar PV and 30% of all wind turbines; a massive increase from 10% in 2007.

However, despite its advances in implementing green power, China’s carbon dioxide emissions also increased in 2009.  It has overtaken the United States and now claims the title of highest emitting nation in the world.

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Last week, President Obama offered a strong show of support for domestic solar power with the offer of $2 billion in loan guarantees for large scale solar projects in the Western United States.

Abengoa Solar is the recipient of the first offer, $1.45 billion to help finance the construction and start-up of a concentrating solar power (CSP) plant in Arizona.  Once operational, the “Solana” plant would add 250MW of electric capacity to the grid, enough to power 70,000 homes and reduce carbon dioxide emissions by 475,000 tons.

A loan of $400 million was also offered to Abound Solar Manufacturing to for the manufacture of thin-film cadmium telluride solar panels, the first time such manufacturing will be deployed anywhere in the world.  When completed in 2013, the manufacturing plant will be capable of producing enough panels to support up to 840MW of new solar every year.

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Worldwide, global venture capital investment in the green tech sector has climbed to $4.04 billion during the first half of 2010.  This represents a 65% increase from the same period last year, and slightly exceeds the investment record set during the “boom year” of 2008.

Data from The Cleantech Group and Deloitte shows that solar energy garnered about 40% of all investments, attracting about $811 million in funding.

“There’s been a very clear resurgence in solar activity and that is largely responsible for the strong quarter,” notes Richard Youngman, head of global research for the Cleantech Group.

Scott Smith, Deloitte’s U.S. clean tech leader believes this VC investment trend will have a positive impact on renewables and low carbon industries.    “The significant strengthening of corporate and utility investment into the clean tech sector, relative to 2009, is very encouraging, given the key role they will play in enabling broader adaptation of clean technologies at scale,” he said in a statement.

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Thanks to the implementation of an industry-friendly feed-in-tariff in 2007, the Italian solar PV market has taken off at a furious pace.

Data from the Interstate Renewable Energy Council (IREC) shows that Italy installed more photovoltaic systems than the entire United States in 2009.  What’s more, by the end of the year, Italy will have installed over 2,500 MW of solar PV power, more than one and one-half times the U.S. total.

Italy is now the world’s second largest solar PV market after Germany.  Unlike Spain, Italy is not planning to remove its feed-in-tariff anytime soon.  It has set a new target of 3,000MW for the next time period of 2011-2013, but will trim the tariffs 18% by Q3 of 2011.  Italy reached its 2010 target of 1,200MW earlier this year.  Most of these new installations are on rooftops or in distributed applications, and according to the Gestore dei Servizi Energetici, almost 1/4 are relatively small (20kW or less).

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Achim Steiner, the head of the U.N. Environment Program (UNEP), says the world needs a fresh infusion of investment in the new “green economy.” So far, nations around the world have pledged $500 billion for “green spending” on a wide variety of projects, from solar plants to transportation sector initiatives.  However large that number appears, Steiner warns that it is still not sufficient.

Of the $500 billion pledged, 40% of funds comes from China, which means many developed countries are falling short in their commitment to a green economy, Steiner says.  In 2008, the UNEP called for a global investment of $750 billion, equivalent to 1% of global GDP to be funneled into a “Global Green New Deal.”

“The green economy is not a luxury, but a 21st century imperative on a planet of six billion, rising to 9 billion in just 40 years,” said Steiner and Pavan Sukhdev, leader of UNEP’s Green Economy Initiative in a statement released in advance of this weekend’s G20 Summit in Toronto.

G20 delegates re-affirmed their pledge to phase out the “inefficient” subsidies to the fossil fuel industry,  which by some estimates amount to $300-$500 billion/year.  The International Energy Agency estimates that elimination of these subsidies could help reduce greenhouse gas emissions by around 7% over the next ten years.

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Oil and gas major Total and Spain-based solar company Abengoa Solar have been appointed to construct the largest concentrating solar power (CSP) plant in the world in Masdar, the carbon-zero city and renewable energy initiative of Abu Dhabi.  Abu Dhabi aims to achieve 7% renewable energy generation by 2020.

Called “Shams 1,” this planned CSP plant will extend over an area of 2.5 square km and have a generation capacity of approximately 100MW.  Once completed, it will be the first of its kind in the Middle East region, and the first CSP plant to be registered with the United Nation’s Clean Development Mechanism (CDM).  This registration will make Shams 1 eligible for carbon credits.

“This project, which will be the first utility-scale, commercial solar power project in the UAE, represents the translation into reality of the vision the Abu Dhabi leadership had for renewable energy in the Emirate,” said Dr. Sultan Al-Jaber, CEO of Masdar.  Looking ahead, Abengoa Solar’s director of international development Michael Geyer believes this project is only the beginning.  “The Middle East,” he said,  “is a region that offers both an unlimited solar resource and infinite site locations for implementation of solar plants in its deserts.”

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The European Union (EU) Presidency announced the launch of a €6 billion public-private partnership to vastly increase the amount of wind energy used in Europe.

The European Wind Initiative (EWI) is the result of a collaboration between the European wind industry, the EU comission and EU member states.  The EWI aims to supply 20% of all European energy demand with wind energy resources by 2020, 33% by 2030, and finally 50% of total demand by 2050.

The EWI will support research on advanced turbine and component technology to increase efficiencies and reduce costs.  The Initiative aims to speed deployment of both on- and off-shore wind installations, and ease integration of large-scale systems into the grid.

“The European Wind Initiative is a big step forward in our efforts to maintain and strengthen Europe’s global leadership in wind energy technology,” remarked Christian Kjaer, CEO of the European Wind Energy Association (EWEA).

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BEIJING, May 27 (UPI) — China and the United States signed eight green energy deals Wednesday in Beijing but financial details were not disclosed, Chinese media reported.

The deals, designed to increase cooperation in the sector, cover areas such as aviation biofuel, distributed energy systems using natural gas as fuel, smart meters and cellulosic ethanol, the China Daily reported. A number of Chinese and U.S. companies would be involved in the eight deals.

The report quoted analysts that the agreements between the world’s two largest energy users would encourage global collaboration in increasing energy efficiency and protecting the environment.

The agreements came at the conclusion of the two-day China-U.S. Strategic and Economic Dialogues in Beijing.

Zhang Guobo, head of the National Energy Administration, also noted bilateral collaboration in renewable energy development, adding: “The United States has advanced technology, and China has a huge market,” the China Daily reported.

U.S. Ambassador to China Jon Huntsman was quoted as saying the two countries will “take every angle” to ensure their cooperation in energy and environment.

Zhang said renewable energy development is important for China to achieve goals of increasing the use of non-fossil energy to 15 percent of primary energy use by 2020, and reducing carbon intensity by 40 percent to 45 percent in 2020 from 2005 levels, China Daily reported.

He said China will continue to focus on the development of hydro, wind, solar, and biomass energy in the renewable sector.

Earlier, U.S. Energy Secretary Steven Chu was quoted as saying improving energy efficiency would both reduce greenhouse gas emissions and boost economic growth.
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The United Kingdom’s offshore renewable energy capacity could one day generate as much electricity every year as would one billion barrels of oil, according to a recent report from the Offshore Valuation Group.

The Group projects that utilizing just one third of the available wind and tidal resources off the UK coast could eventually transform the nation from a net importer to a net exporter of electricity by 2050.  At the same time, deploying these resources would result in a savings of 1.1 billion tons of carbon dioxide emissions and create infrastructure with a positive net present value of £35 billion.

“We have long been saying that the North Sea will become the Saudi Arabia of wind energy,” says Peter Madigan, head of offshore renewables at industry advocacy body RenewableUK.

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At first glance, Saudi Arabia may seem an unlikely supporter of renewable energy, considering the vast oil resources under its control.  On the contrary, Saudi Arabia is looking to take advantage of its other prolific resource – sunlight – with new solar power projects designed to keep the country competitive as renewables increasingly play a role in the overall energy mix.

Mohammed Y. Al-Qahtani, executive director of petroleum engineering and development at Aramco believes “renewables will have an important place in the total energy equation.”   Saudi Arabia is looking to use its substantial solar resources as a substitute for oil to generate power domestically as well as to power desalination plants.  Although solar is currently more a more expensive means of power generation than oil or gas, Al-Qahtani expects this will shift over time.

The Kingdom recently invested in one of the world’s largest solar-heated complexes at a school in the northwestern part of the country, and is considering participating in the Desertec Initiative which would transmit electricity from North Africa and Middle Eastern solar power plants to Europe.

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Grappling with skyrocketing energy demand, high pollution levels and international pressure to reduce greenhouse gas emissions, reports indicate China may consider instituting taxes on carbon or other resources to boost support for low-carbon energy technologies.

Experts from the Energy Research Institute under the National Development and Reform Commission – a Cabinet department focused on mid- and long- term domestic development – say if it is deemed beneficial, a carbon tax is likely to be levied during the 12th Five-year plan (2011-2015).

Jian Kejun, a senior researcher with the Institute, reaffirmed China’s commitment to reducing its carbon intensity 40-45% by 2020 in recent remarks to the newpaper China Daily.  To reach this target, the government is prepared to pursue “tougher measures” over the next five years, including subsidies and incentives for low-carbon technologies in addition to a potential tax.

Increasing support for scientific research is another top priority in China.  Right now, China’s investment in scientific clean energy research is only one-sixth that of the United States.  However by 2025, China’s investment in this area may overtake that of the United States.  ”If this comes true,” Jing said, “we can start to dream of becoming a low-carbon technology leader in the world.”

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The Asian Development Bank (ADB) is providing $2.25 billion in financing to the Asia Solar Energy Initiative, in the hopes of attracting significant additional investment – on the scale of $6.75 billion over  the next three years.  The Asia Solar Energy Initiative (ASEI) will develop large-scale solar power projects in the Asia and Pacific region, aiming for 3,000MW in installed generating capacity by 2012.

“With energy demand projected to almost double in the Asia and Pacific region by 2030, there is an urgent need for innovative ways to generate power whole at the same time reducing greenhouse gas emissions,” said Rajat Nag, managing director at ADB.  Central Asia is a region of particular interest, thanks in part to the vast amounts of desert land available for massive solar construction.

In 2009, ADB supplied nearly $1.3 billion in funding for clean energy projects, exceeding its $1 billion target.  Beginning in 2013, the Bank is aiming to increase its investment to $2 billion/year.

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Sustainable investments in Switzerland rebound strongly to hit new peak

Sustainable investments run by Swiss fund managers rebounded after the financial crisis to reach a new high of CHF34.1bn (€23bn) during 2009 – with investment inflows outstripping the market average – according to a report from Zurich-based consulting firm onValues. The rise in sustainable assets managed by fund managers at the end of last year represented a 63% increase over the figure at the end of December 2008. The figures comprise assets in investment funds, segregated mandates and structured products.

In a 12-page report surveying 19 asset managers, onValues said the net asset flow into sustainable funds was approximately 22.9%, during 2009 compared to 4.5% seen by the average Swiss fund provider over the same period. The report said the sustainability asset inflows were “particularly marked” for thematic equity funds and new funds in the real estate and emerging market equities.

In a breakdown of Swiss sustainable assets, onValues said funds accounted for approximately 55% of the total, segregated mandates for 40% and structured products 5%. Institutions account for 45% of the sustainable assets market, with the balance invested by retail/private banking investors. However, the report said fund manager respondents believe institutional investors will drive the main growth in the sector in the next three years. OnValues said it set out to assess the market for specialist sustainable investment products and not the degree to which ESG factors are being used in mainstream investment portfolios. It said this means there are probably more total assets in Switzerland run via broader sustainability criteria.

The survey was backed by Bank Sarasin, Bank Vontobel, Ethos, Forum Nachhaltige Geldanlagen, INrate, Kaiser Ritter Partner, SAM, Swisscanto, UBS and Zürcher Kantonalbank.