I/II. http://www.japantimes.co.jp/news/2015/05/05/national/japan-will-be-last-g-7-country-to-make-solar-power-economically-viable/
Japan is now one of the world's four largest markets for solar panels and a large number of power plants are coming onstream, including two giant arrays over water in the city of Kato, Hyogo Prefecture. | ISTOCK NATIONAL Japan will be last G-7 country to make solar power economically viable REUTERS MAY 5, 2015 ARTICLE HISTORY PRINT SHARE One by one, Japan is turning off the lights at the giant oil-fired power plants that propelled it to the ranks of the world's top industrialized nations. With nuclear power in the doldrums after the Fukushima disaster started in 2011, it's solar energy that is becoming the alternative. Solar power is set to become profitable in Japan as early as this quarter, according to the Japan Renewable Energy Foundation (JREF), freeing it from the need for government subsidies and making it the last of the G-7 economies where the technology has become economically viable. Japan is now one of the world's four largest markets for solar panels and a large number of power plants are coming onstream, including two giant arrays over water in the city of Kato, Hyogo Prefecture, and a ¥110 billion solar farm being built on a salt field in Setouchi, Okayama Prefecture, both west of Osaka. "Solar has come of age in Japan and from now on will be replacing imported uranium and fossil fuels," said Tomas Kaberger, executive board chairman of JREF. "In trying to protect their fossil fuel and nuclear (plants), Japan's electric power companies can only delay developments here," he said, referring to the 10 regional monopolies that have dominated electricity production since the 1950s. Japan is retiring nearly 2.4 gigawatts of expensive and polluting oil-fired energy plants by March next year and switching to alternative fuels. Japan's 43 nuclear reactors have been idled in the wake of the 2011 triple meltdown at the Fukushima No. 1 power plant. Since then, renewable energy capacity has tripled to 25 gigawatts, with solar accounting for more than 80 percent of that. Once Japan reaches cost-revenue parity in solar energy, it will mean the technology is commercially viable in all G-7 countries and 14 of the G-20 economies, according to data from governments, industry and consumer groups. A crash in the prices of photovoltaic panels and improved technology that harnesses more power from the sun has placed solar on the cusp of a global boom, say analysts, who compare its rise to shale oil. "Just as shale extraction reconfigured oil and gas, no other technology is closer to transforming power markets than distributed and utility scale solar," said consultancy Wood Mackenzie, which has a focus on the oil and gas industry. Oil major Exxon Mobil says that "solar capacity is expected to grow by more than 20 times from 2010 to 2040." Investors are also rediscovering solar, with the global solar index up 40 percent this year, lifting it out of a slump following the 2008-2009 financial crisis, far outperforming struggling commodities such as iron ore, natural gas, copper or coal. By starting mass production of solar panels, China is the driving force in bringing down solar manufacturing costs by 80 percent in the last decade, according to Germany's Fraunhofer Institute. In Japan, residential solar power production costs have more than halved since 2010 to under ¥30 per kilowatt-hour, making it comparable to average household electricity prices. Wood Mackenzie expects solar costs to fall more as "efficiencies are nowhere near their theoretical maximums." Solar is already well-entrenched in Europe and North America, but it is the expected boom in Asia that is lifting it out from its niche. China's new anti-pollution policies are making the big difference. Because of these policies, Beijing is seeking alternatives for coal, which makes up almost two-thirds of its energy consumption. China's 2014 solar capacity was 26.52 gigawatts, less than 2 percent of its total capacity of 1,360 gigawatts. But the government wants to add 17.8 gigawatts of solar power this year and added 5 gigawatts in the first quarter alone, with plans to boost capacity to 100 gigawaatts by 2020. Coal-dominated India, with its plentiful sunlight, could also take to solar in a big way. Despite this boom, fossil-fueled power is far from dead. "Additional generating capacity, such as natural gas-fired plants, must be made available to back up wind and solar during the times when the sun is not shining and the wind is not blowing," Exxon says. II. http://www.nasdaq.com/article/is-solar-energy-ready-to-compete-with-oil-and-other-fossil-fuels-cm472335 Is Solar Energy Ready To Compete With Oil And Other Fossil Fuels? By Oilprice.com, May 04, 2015, 08:00:45 AM EDT AAA Vote up Comment Share | Subscribe By Gaurav Agnihotri for Oilprice.com The solar energy industry may prove to be a dark horse in the race to provide global energy security. The world has renewed its interest in solar energy investment as it searches for a cleaner and more sustainable alternative to conventional fossil fuels. Countries like China, Germany, the UK, the US, Japan and Canada have already made significant investments in solar power. Who are the other players who are investing big in solar energy? With its own set of limitations such as high installation costs and high plug-in time, are consumers across the world ready to choose solar energy to power their daily lives? Or, are the conventional energy sources still the best bet? Cost Matters The best part about solar energy is that it is abundant and freely available, at least in most parts of the world. However, the high upfront costs of a photo voltaic panel remain a concern for many. Things are changing fast, however, and according to data from SEIA, the cost of an average PV system in the US is declining each year at a rate of 11%. In fact, the average price of a PV panel has dropped by 63% since the third quarter of 2010. 'Oil Behemoths' Betting Big On Solar In a surprising development, even the gulf region has now recognized the changing nature of global energy dynamics and the growing demand for sustainable energy. According to a report [PDF] for the national bank of Abu Dhabi by the University of Cambridge and PWC: "As Government and utilities are driven to bring new generation capacity on stream, this new reality (Solar energy) presents a significant opportunity to make savings, reduce fuel cost risks, achieve climate ambitions and, at the same time, keep more oil and gas available for export. The study says that more than half of global investment in new electricity generation is in renewables. As per this report, around $150 billion was invested globally in solar energy generation in 2014 and solar energy is all set to be at grid parity in 80% of the countries in the next two years. These are big numbers. What we get from this study is that even the gulf region, which is traditionally more inclined towards oil and gas production, is slowly and steadily investing in solar energy. Very few are aware that at the end of 2014, Dubai set a new benchmark by showing the world that photovoltaic technologies can be competitive with oil at $10/ barrel and gas at $5 MMBTU. Solar Power Set To Become Profitable In Japan According to Thomas Kaberger of the Japan Renewable Energy Foundation, solar energy is all set to replace imported uranium and fossil fuels in Japan as it is set to become profitable by this financial quarter. Japan is among the world's four largest markets for solar panels. After the Fukushima disaster, the country's 43 nuclear reactors have been shuttered. Following these crucial developments, Japan has tripled its renewable energy capacity to 25 gigawatts. What is worth noticing here is the fact that solar energy accounts for more than 80% of this capacity. What Stops Solar Energy? The process of connecting a PV system to the grid can be time consuming, frustrating and expensive. In some locations in the US, homeowners wait for more than six months to complete this process. This is one of the biggest factors that limit the tremendous potential of solar energy. Intermittency is another area that dampens the impact of this renewable as current modern grids can only cope with around 40 % of renewable input before requiring modifications. But the biggest limitation of solar energy is the lack of proper storage technology. Energy Storage Attracting Major Investment Energy storage is a solution that would tackle several issues related to intermittent power generation. As per the report by Cambridge and PWC, Total Energy Ventures (TEC), the venture capital arm of Total invested in the California based company Stem at the start of 2015. This marked TEV's fifth investment in storage and smart grids. The truth is that energy storage technologies require big purchase opportunities and decisions in order to drive down the cost of batteries; one such decision has been taken by Southern California Edison (SCE). In 2014, SCE awarded a huge energy storage contract of 250 MW, thereby providing a fair chance to different energy storage technologies. As sources from Morgan Stanley put it: "Given the relatively high cost of the power grid, we think that customers in parts of the US and Europe may seek to avoid utility grid fees by going "off-grid" through a combination of solar power and energy storage. We believe there is not sufficient appreciation of the magnitude of energy storage cost reduction that Tesla has already achieved, nor of the further cost reduction magnitude that Tesla might be able to achieve once the company has constructed its "Gigafactory," targeted for completion later in the decade." The report states that Tesla's future batteries could potentially store more than 10 gigawatt hours of energy per year, which is enough to run an average home for 1000 years! Interestingly, according to a report form Rocky Mountain Institute, a combination of photovoltaics and battery storage technology would be able to compete commercially with grid electricity in US within a decade. Moreover, nearly 600,000 US homes and businesses have already gone solar by the end of 2014. This shows that in spite of its current shortcomings, people have slowly and steadily started turning towards solar power. India: A Potential Game Changer For Solar Power Although China's investments are almost ten times that of India's, with the election of Prime Minister Narendra Modi in 2014, India is all set to change the dynamics of solar energy investments in South East Asia. With some bold new initiatives proposed by the new Indian government, many foreign companies are eying India as an attractive solar destination. US based Sun Edison committed to setting up a 15,200 MW plant and First Solar a 5,000 MW plant at a 'RE-invest program that was inaugurated by Narendra Modi recently. If all goes well, Morgan Stanley and other institutional investors like Goldman Sachs and Standard Chartered would soon be investing in the Indian solar space. The Indian ministry of new and renewable energy (MNRE) received a mandate from Prime Minister Modi to scale up solar power to 100,000 MW by 2019. The country would require no less than $100 billion dollars to achieve this kind of solar power. As per Vinay Rustogi, Managing Director of the consultancy firm Bridge to India, "All of this could not come from domestic investors alone. More than half of this amount, or even more, will come from outside India. The big-ticket announcements by the Indian government has made serious investors sit up and take notice." The biggest reason as to why India can be a game changer for solar would be the new government's 'Make in India' campaign. The campaign's focus on local equipment manufacturing would ensure that costs of PV panels and other equipment would be further reduced due to availability of cheap skilled labor. However, the limited availability of land for solar power generation coupled with local land acquisition issues are the biggest challenges that India faces with respect to solar power. So, Where Does Solar Go From Here? What the solar energy industry desperately needs is sustained improvement in energy storage technologies and some innovative thinking. One of the best examples of innovation is the creation of 'Community Solar Gardens' in the United States. With systems in Colorado, Minnesota, California and Massachusetts, these 'solar gardens' feed electricity to the local power grid and customers who subscribe to this power get credit on their utility bills. Denver based SunShare LLC is one such company that runs its operations in Colorado and is developing more in association with Excel Energy Inc. Community solar is one innovative option which opens doors for those who cannot afford their own private solar panels. A Question Worth Asking Leaving aside China, US, Germany, the rest of the EU and the UK, what we are witnessing now is that a solar revolution is gaining momentum in the most unlikely places such as the Gulf States, India and Japan. The Gulf is rich in oil and gas, India depends heavily on coal and oil while Japan previously relied on natural gas, coal and nuclear energy. Why are these countries now looking towards solar energy? It is because solar energy is clean, abundant and its costs are reducing with each passing day. This article was originally published on Oilprice.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc. -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at http://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
