Category Archives: Germany

Solar beats coal

This is what you call a paradigm shift: the energy source that made the industrial revolution take off 200 years ago, coal, is being beaten down in price by the energy source Thomas Edison recommended 80 years ago: the sun.

Sandra Enkhardt wrote for PV Magazine 24 April 2012, Germany: PV makes coal power unprofitable,

“Photovoltaics destroys the economics of coal power plants,” stated MD of the Association of Coal Importers, Erich Schmitz. Given the increasing amounts of green electricity from the wind and sun, it is questionable whether investment in new coal plants by energy companies Eon, RWE, Vattenfall and EnBW will pay off, since the plants must be turned off if there is enough green energy being fed into the grid.

Already back 9 February 2012 Lars Paulsson and Marek Strzelecki wrote for Bloomberg Europe Coal Loses to South Africa on Renewables: Energy Markets,

Germany’s biggest program of solar- and wind-power production has driven European coal prices below South Africa’s for the first time in 10 months….

Coal prices in Europe have fallen 7.5 percent this year as nations increase the amount of energy they get from alternative sources. Germany, the continent’s biggest power market, installed a record 3,000 megawatts of new solar panels in December, the Bonn-based Bundesnetzagentur, the network regulator, said. Coal stockpiles at the biggest storage site in the Netherlands are 6.7 percent above year-ago levels, according to Europees Massagoed-Overslagbedrijf BV, which operates the terminal.

So if solar is beating coal’s price down and Germany installed 3 gigawatts of solar PV in December while installing none of coal, which is the alternative now? Wouldn’t coal be the poor alternative while solar is the main act?

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PS: Owed to Michael Noll.

The solar train is leaving the station, but the nuclear buggywhip is in the way

The president of the Georgia Solar Energy Association Solar Energy Industries Association says the solar train is leaving the station nationwide, but Georgia remains enmeshed in tangled legislation. We could have changed that last year with SB 401 if Georgia Power and Southern Company’s vested interested in new nuclear plants at Plant Vogtle hadn’t gotten in the way. We can change it next year with a similar or better law. The time to contact your Georgia legislator or candidate is now, while election season is on.

Update 14 June 2012: Fixed Rhone Resch employment attribution.

Rhone Resch wrote for the Saporta Report, 3 June 2012, It’s time to put solar to work in Georgia

There are now more than 100,000 Americans employed at over 5,600 solar businesses in all 50 states. Many of these are small businesses that have been hit hard by the recession, but they are finding new opportunity for growth in the solar industry.

In Georgia, there are more than 80 companies in the solar value chain including Suniva, MAGE Solar, Inc. and Enfinity Corporation. I will be joining representatives of each of these fine companies — and many others — at the Southern Solar Summit on June 15 in the Georgia Tech Research Institute Conference Center in Midtown Atlanta to talk about the strides solar is making, and what remains to be done.

These companies are leading rapid innovation — across the entire value chain, from manufacturing improvements to new financing and sales mechanisms, that are allowing more and more Americans to go solar.

He points out that more solar was installed in 2011 than the total installed in 2008 and 2009, which shows that Moore’s Law continues to work for solar: the price per watt continues to go down, causing demand to go up. He projects forward:

The U.S. is on pace to install nearly 3,200 megawatts of new solar capacity this year with an annual growth rate of 30 percent through 2016.

At that rate, the United States would add more than 25,000 megawatts of new solar capacity between now and 2016. That is roughly the size of 25 coal-fired power plants and represents a significant opportunity for states that aggressively move to obtain a share of this exponentially growing market.

Hm, at Plant Vogtle the operating nuclear reactors produce about 2,430 megawatts and the two new ones under construction are supposed to produce about 2,200 megawatts. So that 25 gigawatts of new solar capacity by 2016 would be about 20 nuclear plants, a number that may be familiar from what Germany has already deployed. Somebody remind me again: why are we building any new nukes? How about if we end the nuke boondoggle and get on with clean green jobs for community and profit?

Rhone Resch says what Georgia can do:

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Clean green jobs for community and profit

Tell me who doesn’t want clean jobs for energy independence and profit?

“Environmental sustainability… can lead to more and better jobs, poverty reduction and social inclusion,”

The above quote is Juan Somavia in an article Stephen Leahy wrote for Common Dreams 1 June 2012, For an Ailing Planet, the Cure Already Exists,

Germany’s renewable energy sector now employs more people than its vaunted automobile industry.

No wonder, when German solar power produces more than 20 nuclear plants. How many jobs? According to Welcome to Germany 13 April 2012, Renewable Energies Already Provide More Than 380,000 Jobs in Germany, which cites a report from the German government,

The boom in renewable energies continues to create new jobs in Germany. According to a recently published study commissioned by the Federal Environment Ministry, the development and production of renewable energy technologies and the supply of electricity, heat and fuel from renewable sources provided around 382,000 jobs in 2011.

This is an increase of around 4 percent compared to the previous year and more than double the 2004 figure.

“Current employment figures show that the transformation of our energy system is creating entirely new opportunities on the job market,” said German Environment Minister Norbert Röttgen.

“It is the major project for the future for German industry. This opens up technological and economic opportunities in terms of Germany’s competitiveness as an exporter and location to do business.”

Wouldn’t we like some of that here in sunny south Georgia, a thousand miles south of Germany?

Back to the Stephen Leahy article:

Globally, the renewable energy sector now employs close to five million workers, more than doubling the number of jobs from 2006-2010, according to a study released Thursday by the International Labor Organization (ILO).

The transformation to a greener economy could generate 15 to 60 million additional jobs globally over the next two decades and lift tens of millions of workers out of poverty, concluded the study, “Working towards sustainable development”.

Everyone will benefit. Everyone can benefit starting right now.

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Fukushima destroying nuclear-owning electric power utilities

The world’s worst nuclear disaster at Fukushima in Japan has had economic effects on nuclear-owning power utilities. What will happen to the Southern Company as Georgia Power customers and U.S. taxpayers get tired of paying for cost overruns which are already almost a billion dollars?

Erik Kirschbaum wrote for Reuters 26 May 2012, Germany sets new solar power record, institute says,

The German government decided to abandon nuclear power after the Fukushima nuclear disaster last year, closing eight plants immediately and shutting down the remaining nine by 2022.

And closing those nuclear plants caused German electric utility E.ON to lay off up to 11,000 staff, to take its first quarterly loss in a decade, and to cut its shareholder dividend. According to Forbes, E.ON in 2006 was the biggest electric utility in the world (and TEPCO, owner of the Fukushima nuclear plants, was number 6). In March 2012, E.ON was number 22. (TEPCO dropped from number 6 to number 45.) Southern Company (SO) jumped from number 16 in 2006 to number 6 this year, quite possibly because E.ON and TEPCO and others dropped so rapidly.

Hm, I wonder what Southern Company’s nukes, already almost $1 billion over budget, will do to SO’s ranking in Forbes’ list of top utilities? Maybe there’s a reason Moody’s called nuclear “a bet-the-farm risk”. What will SO do when this big nuclear bet goes bad? And how big a bill do Georgia Power customers and we the taxpayers want to let SO run up that we’ll get stuck with?

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Plant Vogtle is why Georgia is not a leader in solar power today

Could Georgia approach that German 20 gigawatt solar power figure? We’d already be there if we weren’t building Plant Vogtle.

Remember, John Hanger figures:

The Vogtle $913 million cost overrun by itself could have paid for approximately 1,000 megawatts of natural gas generation; 450 megawatts of wind power; and 330 megawatts of solar power.

That’s not 20 gigawatts. But the population of Germany is about 81 million, while the population of Georgia is about 9.8 million people, so the Georgia equivalent of 20 gigawatts would be about 2.4 gigawatts. The federal government has guaranteed about $8.3 billion in loans related to Plant Vogtle. That $8.3 billion would pay for about 3 gigawatts of solar power.

That big dish at Plant Vogtle? That’s not just a nuclear containment vessel, it’s a solar prevention wall. Preventing jobs, energy independence, and profit through solar power in Georgia.

Plant Vogtle is why Georgia is not a leader in solar power today.

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Germany solar equal to 20 nuclear plants

What's 20 times more powerful than a nuclear plant and didn't already run a billion dollars over budget? German solar plants!

Erik Kirschbaum wrote for Reuters 26 May 2012, Germany sets new solar power record, institute says,

German solar power plants produced a world record 22 gigawatts of electricity per hour—equal to 20 nuclear power stations at full capacity—through the midday hours on Friday and Saturday, the head of a renewable energy think tank said….

Norbert Allnoch, director of the Institute of the Renewable Energy Industry (IWR) in Muenster, said the 22 gigawatts of solar power per hour fed into the national grid on Saturday met nearly 50 percent of the nation's midday electricity needs….

The record-breaking amount of solar power shows one of the world's leading industrial nations was able to meet a third of its electricity needs on a work day, Friday, and nearly half on Saturday when factories and offices were closed.

Berlin is at more than 52 degrees north latitude. Even southern German city Munich is at 48 degrees north. That's a thousand miles north of where we sit here in south Georgia at 31 degrees north.

Germany has sun like Alaska, while Georgia has sun like the south of Spain.

"Never before anywhere has a country produced as much photovoltaic electricity," Allnoch told Reuters. "Germany came close to the 20 gigawatt (GW) mark a few times in recent weeks. But this was the first time we made it over."

Maybe it's time for the Southern Company and Georgia Power to get out of the way and let the Georgia legislature change the Georgia Territorial Electric Service Act of 1973 so we can get on with solar power in Georgia. How about if Southern Company and Georgia Power also stop pouring money into the leaking nuclear bucket and buy solar power instead.

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Solar eating fossil fuels’ cake in Germany

Why is Georgia Power still peddling misinformation about solar power instead of moving ahead with it? What’s happening in Germany could be a clue.


Giles Parkinson wrote for Crikey.com 28 March 2012 (it’s tomorrow in Australia), Why power generators are terrified of solar,
The first graph illustrates what a typical day on the electricity market in Germany looked like in March four years ago; the second illustrates what is happening now, with 25GW of solar PV installed across the country. Essentially, it means that solar PV is not just licking the cream off the profits of the fossil fuel generators — as happens in Australia with a more modest rollout of PV — it is in fact eating their entire cake.
So solar is taking the profits out of coal and natural gas. So sad!
Deutsche Bank solar analyst Vishal Shah noted in a report last month that EPEX data was showing solar PV was cutting peak electricity prices by up to 40%, a situation that utilities in Germany and elsewhere in Europe were finding intolerable. “With Germany adopting a drastic cut, we expect major utilities in other European countries to push for similar cuts as well,” Shah noted.

Analysts elsewhere said one quarter of Germany’s gas-fired capacity may be closed, because of the impact of surging solar and wind capacity. Enel, the biggest utility in Italy, which had the most solar PV installed in 2011, highlighted its exposure to reduced peaking prices when it said that a €5/MWh fall in average wholesale prices would translate into a one-third slump in earnings from the generation division.

You know, if the utilities got out in front and generated energy from solar and wind themselves, they wouldn’t be having this problem.

Here in Georgia, even Georgia Power could get going and do that, instead of fighting this:

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Farmers and other people own most of Germany’s reneable energy production

Power companies aren’t the only possible owners of solar power farms, and centralized isn’t the only power distribution model. In Germany, most renewable energy production is owned by people, not power companies.

Matthew McDermott wrote for Treehugger 6 January 2011, Over Half of Germany’s Renewable Energy Owned By Citizens & Farmers, Not Utility Companies

Germany’s promotion of renewable energy rightly gets singled out for its effectiveness, most often by me as an example of how to do things well versus the fits and starts method of promotion common in the US. Over at Wind-Works, Paul Gipe points out another interesting facet of the German renewable energy saga: 51% of all renewable energy in Germany is owned by individual citizens or farms, totaling $100 billion worth of private investment in clean energy.

Breaking that down into solar power and wind power, 50% of Germany’s solar PV is owned by individuals and farms, while 54% of its wind power is held by the same groups.

Not only is that more distributed, but it also may be a faster way to get solar deployed:
In total there’s roughly 17 GW of solar PV installed in Germany—versus roughly 3.6 GW in the US (based on SEIA’s figures for new installations though the third quarter of 2011 plus the 2.6 GW installed going into the year).

Remember, Germany now produces slightly over 20% of all its electricity from renewable sources.

Nothing prevents Georgia Power or Colquitt Electric or any of the other power companies operating in Georgia from leading the solar pack. For example, power companies concerned that solar doesn’t produce at night could still deploy solar peak load generation, thus dispensing with natural gas peak load generation.

While the power companies are not leading, private organizations such as Tabby Solar, founded by a pair of doctors, are forging ahead anyway.

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If it works in Germany, it works everywhere —Nuri Demirdoven of McKinsey

Germany is a world leader in solar and other renewable energy because it decided to do it and provided incentives. Nuri Demirdoven of McKinsey & Company said at the Southern Solar Summit that in the U.S. southeast there is not currently enough demand to see solar become widespread before 2020: unless incentives are provided. Distributed solar is in a better position due to no need for distribution, he added.

About incentives, he asked:

“Why not Georgia?”
He recommends taking advantages of our strengths in this region. We may not have a lot of demand yet, but we have two solar manufacturers in Georgia, and increasing interest in incentives by the state.
Overall solar works, and is an economic development engine. But the question is what are the commitments you are willing to make, in understanding your strengths, and picking one or two goals.
He cited TVA as an example of an organization that has done that and is moving ahead.

He recommended making a business case for solar in Georgia. Many of the other speakers are busily doing various pieces of that.

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From 4 to 40 solar companies in Georgia —James Marlow @ Solar Summit

James Marlow started the Georgia Solar Summit by saying in a few years we’ve gone from four to forty solar companies in Georgia, and we should:
“Stop talking about what we’re going to do in the future, and start talking about what we’re going to do in 100 days.”
He directly challenged Gov. Deal and the legislature.

“This is about goodness and light, and sound economics.”

The next speaker (didn’t get his name, sorry) ran through some statistics, including:

  • 93,502 U.S. solar workers: doubled since 2009
  • 26% growth
  • No other industry is growing like this.
A telling comparison:
  • 1GW nuclear power station takes 10 years to build.
  • In one month Germany installed 2GW of solar last June.
Germany, which is far north of Georgia. Georgia has far more sun.

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