How is the hallowed Green tech industry working out for China? Not so well.
Shi Zhengrong was called a “hero of the environment” by Time Magazine. He was a billionaire who ran the worlds largest seller of solar PV cells. But the glory days of 2008 – 2011 are gone. Another bubble bursts. Wiped out in two years. How fast was this fall?
Chinese solar panel maker Suntech flames out
By Steven Mufson, Published: May 3 The Washington Post,
In 2008, CNN named Shi “China’s Sunshine Boy.” In 2009, Fortune anointed him “China’s new king of solar.” That year, New York Times columnist Thomas Friedman also cited Shi and Suntech as models of China’s green leap forward — which he called “the Sputnik of our day” and a spur for U.S. clean energy policy.
Now, however, the Chinese Sputnik has crashed to Earth, and the Sun King has been toppled.
… a Chinese court declared the company bankrupt after a petition from eight Chinese banks. On Wednesday, the company announced that its 2012 revenue had plunged 48 percent from the previous year.
Suntech — which in 2011 was the world’s biggest [...]
ALMOST 150 suspected rorts of the Gillard government’s Renewable Energy Target scheme were reported to the regulator last year, with NSW and federal authorities assisting with the execution of two search warrants as a part of the probe.
The Clean Energy Regulator yesterday released its annual report to government on the administration of the RET — a scheme that provides certificates for both large and small-scale renewable energy generation as part of the bipartisan target of ensuring 20 per cent of Australia’s electricity comes from renewables by 2020.
The regulator’s audit report revealed that during 2012 it received 147 allegations of rorts, the majority of which related to the creation of dodgy certificates for rooftop solar panels.
So far three “monitoring warrants” have been executed by NSW and Australian Federal police. One matter is before the Federal Court as a civil prosecution. One criminal matter was heard last year.
…businessman John Testoni of Sydney Solar Eco Solutions pleading guilty to improperly creating $170,000 in RET certificates for 24 non-existent solar system installations in the Sydney area.
Fake markets just ask to be scammed. Who can forget the Spanish winter of late 2009 when 4,500Mw hours of “solar” [...]
In June this year the UNEP report announced that Global Renewable Energy investment reached $257 Billion in 2011. It’s so large it rivals the $302 billion invested in fossil fuel power. But how much electricity do we get for all that money? When the details are pulled from the fog, a quarter of a trillion dollars appears to produce only about 3% of all our global electricity, and even less of our global energy. All that money, so few gigawatts.
The 2012 UNEP report “Global Trends in Renewable Energy Investment” compares the
“…despite an increasingly tough competitive landscape for manufacturers, total investment in renewable power and fuels last year increased by 17% to a record $257 billion, a six-fold increase on the 2004 figure and 94% higher than the total in 2007, the year before the world financial crisis.”
Renewables growth has slowed somewhat:
“Although last year’s 17% increase was significantly smaller than the 37% growth recorded in 2010, it was achieved at a time of rapidly falling prices for renewable energy equipment and severe pressure on fiscal budgets in the developed world.”
The last couple of quarters have not been good for [...]
I’m away, so this is a good time for Guest posts. Here Tony explains that we need lots of electricity even while we sleep. I didn’t realize our electricity needs were so high at night. The lowest power use each day is still as much as 60% of the peak. That’s the base load at 3am, and solar panels and wind farms just can’t provide it. We can burn the odd $500 billion building hundreds of solar plants, but even then, we would have to go “medieval” for about 8 hours each night. Candles anyone? — Jo
Guest post by Anton Lang
AUSTRALIAN POWER CONSUMPTION LOAD CURVES
There’s a message in these two diagrams that underlies every decision about national energy.
Summer power curve – Time of Day versus power consumption (MW)
These two diagrams are the most misunderstood images in the whole debate — the Load Curves for actual power consumption. These two shown here are for the whole of eastern Australia (including Tasmania and South Australia).
The top diagram shows typical consumption for a day in mid summer (Monday 30th January 2012) and the second is for a typical mid winter day (Friday 22nd July [...]
The collapse of the Man-Made Myth continues apace. You may not read headlines as such (at least not in major dailies) but all the signs are there.
People who we never would have imagined speaking against the Big Scare Campaign are now doing so. Key glaciers are not melting and corals are happy. Governments won’t tell you it’s over, but they are behaving that way (the Australian one excepted, due to an election fluke that gave the Greens the balance of power). The Catholic Herald headlined it: Is the ‘anthropogenic global warming’ consensus on the point of collapse?
The last year of carbon trading in EUR's continues to fall. (Click to enlarge).
Mini update: The carbon market is being referred to as “dead”. Johannes Teyssen, chief executive of Germany’s EON, urged policymakers to make fixes. “Let’s talk real: the ETS is bust, it’s dead,” Mr Teyssen said in Brussels this week, adding: “I don’t know a single person in the world that would invest a dime based on ETS signals.” [full story: Financial Times]. Point Carbon analysts have downgraded the forecast price of carbon credits for the second time in two months as the carbon market [...]
For forty years, people have tried to get Solar to work. Now, the worst possible thing for the industry has occurred: The Left are serious about trying to help it.
The Large-Scale Solar Subsidies are bountifully generous on an unprecedented scale that involves taxing everything else that moves, but even that generosity is not enough to compete with…wait for it… the even more insanely lavish Small-Scale Solar Subsidies. Who would have thought? Remember these are the same people who tell us that the “free market solution is best”. They offered three times the going rate for rooftop solar electricity, and through utterly predictable market mechanics, created a glut in rooftop solar panels as every man and his dog rushed in to get free electrons from their roofs, and on good sunny days, even cheques in the mail. Now, the large-scale projects are struggling to get major electricity retailers to sign long-term contracts.
THE federal government has delayed issuing key grants under its $1.5 billion Solar Flagships program after a preferred applicant, the Moree Solar Farm, failed to meet a December 15 deadline to reach financial closure on its project.
Solar projects have struggled to secure contracts with retailers, who [...]
Finally, a new day has dawned and solar power is cheaper than coal fired electricity! Gadzooks! It must be true, the Sydney Morning Herald says so.
“Solar energy cost hits par with coal fuel“
Who knew they conquered the low energy density, high maintenance, poor performance, bad weather, and general darkness at nighttime — all in the last weekend? This changes everything… oh, but wait, that’s odd — this only applies in some parts of New South Wales?
Silly me, and I thought the sun shone on the whole nation (and sometimes on the rest of the world too)?
THE cost of solar power in parts of NSW has for the first time crept below that of coal-fired electricity – seen as a key tipping point for the expansion of renewable energy. [SMH]
The dead-set give away is the “parts of NSW” — straight away you know that either someone is stealing sunlight from neighboring councils, or this isn’t a real “cost”, not in the same sense that you and I would use the word. When we think of the cost of something, it means we want to know how much we’ll pay. If we pay less up [...]
A joint writing project: Jo Nova & Tony Cox,
based on an idea and research by Anton Lang (who writes as TonyfromOz at PAPundits)
It’s the paradox that will torture the Greens. What if the best way to achieve their environmental aims as well as providing jobs and power was to build more coal fired power stations? Imagine if we could reduce CO2 emissions by more than 5%, supply 24 hour baseload electricity, create jobs, and save thousands of square kilometres of Australian bush from industrial domination. Imagine if “New Coal” turned out to be the lowest cost alternative as well? Anton Lang has researched it, and Tony Cox has confirmed that the big numbers make sense with an Australian electricity company (who shall not be named). Selling the Carbon Tax in Neverland is already a public debate that’s pretzel tied in impossible contradictions, so what’s one more unlikely twist? Possibly, just enough to get us out of a knot, or at least enough to expose the real aims of the carbon reduction plan. Old existing large scale coal fired power plants in Australia are all twenty to forty years [...]
Here’s a topic close to my heart. Before I became involved in climate change and currencies, my hot topic-of-choice for years was medical research and health. In my honours degree I worked to get a tiny step closer to treating Duchenne Muscular Dystrophy. When I saw that The Australian Government was threatening to cut medical research, I wanted to put a razor fine point on just what muddy thinking costs us. This article I wrote is published in The Weekend Australian today. We can’t afford to get the decision wrong on climate change. We must fight the battles that matter, not build fortresses against imaginary foes.
Wasting money on climate change betrays sick Joanne Nova From: The Australian May 07, 2011 12:00AM
Fabíola and Julio Licinio in 1964. She died of non-Hodgkins Lymphoma a few weeks later.
LOST opportunities are invisible but deadly. On climate change, the call to buy insurance by pricing carbon is a cop-out. Where is the cost-benefit analysis? We’re thinking of axing Australian medical research yet we’re supporting solar panel manufacturers in China. It doesn’t have to be this way.
All the money spent employing green police, subsidizing solar or researching how to [...]
Have you wondered just exactly how much money you could pay for the feel-good factor of knowing that your electrons came from fashionable sources?
Thanks to the Victorian government we can get the hard numbers in the Victorian Auditor General’s Report.
In a nutshell, most alternatives are 2-3 times as expensive, except for solar which is 5 times the price.
(Luckily at the moment, renewables only produce 3 – 4 % of all energy in Victoria. Be grateful. You Victorians could be a lot poorer.) As it is, it cost Victorians $415,000 to tell you this, but it may be the most effective money spent on renewable energy in the last ten years. (Though oddly they didn’t produce this helpful comparative graph below. I did that for free.)
The Full PDF
In 2002 the State government of Victoria decided to aim for 10% renewable energy by 2010. You can see how well that worked out for them:
The light blue line (at 10%) was what they were aiming for.
The report is 48 pages. Basically it found that nobody thought too hard about how these aims would be done. Nobody assessed how useful it was to [...]
There is still billions invested in research, billions circling in carbon markets, and billions tossed as government subsidies. But there are a few less billion available now than there was before Christmas. Reality bites and Green Energy is left to face the music.
Austerity pulling plug on Europe’s green subsidies
by ERIC REGULY , Globe and Mail
The Spanish and Germans are doing it. So are the French. The British might have to do it. Austerity-whacked Europe is rolling back subsidies for renewable energy as economic sanity makes a tentative comeback. Green energy is becoming unaffordable and may cost as many jobs as it creates. But the real victims are the investors who bought into the dream of endless, clean energy financed by the taxpayer. They forgot that governments often change their minds.
When the Spanish economy went into the toilet in 2008 and 2009, austerity measures were put into place. At first, it appeared the solar industry would be spared the worst of the cutbacks. That changed a bit, but only a bit, in November, when a royal decree reduced tariffs by up to 45 per cent on new PV plants; existing plants would remain untouched. Then – whammo! – [...]
A billion dollars that could have been used for housing, schools, hospitals and health programs was drawn into solar subsidies to provide electricity that could have been produced in far cheaper ways.
There is no sunnier first world country than Australia. If solar was going to be a raging success anywhere, surely it would be in the land of the Sunburnt Country. Instead the Australian government has poured in more than a billion dollars to install solar panels on the roof tops of private homes. It’s a text book case of misdirected spending.
In the end the government drew money from the population-at-large to help Chinese solar panel manufacturers, and to provide “cheap” electricity to 107,000 households in mostly medium-high wealth areas. It reduced Australia’s emissions by a piddling 0.015 per cent, at an exorbitant carbon price of $300/ton.
Solar power is clearly not viable yet. So that billion dollars could have been spent on research to make solar power economic (in which case no subsidies would be needed). It could have made us world leaders with a product to patent and sell (or it might not). Instead governments of both major parties chose to pour a billion [...]
Roger Pielke, Jr. has looked closely at Australia’s ETS targets and helpfully put some numbers into the hypotheticals.
With all their subsidies, goodwill and fervent wishes, solar, wind, and geothermal produce just 3% of our energy needs. Fossil fuels produce a whopper 94%. And “energy” on these grand continental scales is measured in quadrillion BTUs which is known as “one quad”. Australians use about 5 quads / year, and to make that we pump out about 400 Mt of carbon dioxide per year. (These kind of big-picture numbers are often hard to find, so I wanted to capture that to keep things in perspective.)
Population growth is a big factor in Australia [...]
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