Schwartz Renewablog

Warren Buffett Gives Solar a PR Boost: Are Solar Projects an Undervalued Asset?

2011-12-07T20:28:22Z

News today that Warren Buffett's MidAmerican Energy Holdings, a Berkshire Hathaway company, has bought its first solar power plant. This is the first time (to my knowledge) a Buffett portfolio company has bought into a renewable energy project. And if the granddaddy of buying undervalued assets was intent on making a BIG splash in his first forray into renewables, he certainly succeeded.

The Topaz Solar Farm is the second largest solar plant in the world among those that are operational or being constructed according to the CNN Money article. This means that Buffett has not only entered the renewables investment game, but has immediately thrust the topic of "solar as an undervalued asset class" to the top of the debate docket within the financial community.

The investment is a major and needed PR boost for a solar industry suffering from Solyndra's high-profile flame out, the anti-dumping complaint filed against Chinese solar manufacturers and uncertainty about the extension of the production tax credit (PTC) and 1603 treasury grants.

This news will remind market watchers that the solar industry is continuing to grow, even with policy uncertainty looming and the high-profile flameouts of a few outlier companies with poor business fundamentals. Bottom line: improvements in technology, project finance and project development could make solar projects one of the best emerging asset classes over the next 5-10 years. Just ask Warren.

Clean Power Finance's SPI 2011 Mobile App

2011-10-20T18:04:11Z

We wanted to call out some of the innovative marketing and PR activities solar clients are pursuing during Solar Power International 2011 (SPI) next week, and since the iPhone 4S just came out and everyone now seems to be permanently glued to their smartphones and mobile devices, we thought the first mobile app for SPI would be an interesting topic.

If you’ve ever been to SPI, you—along with the more than 24,000 solar professionals who are slated to attend this year’s event—know that it’s the place to be if you want to learn about the latest solar industry trends from enterprising and innovative companies working to build a competitive market around clean energy. Yet, as captivating as this four-day conference can be, navigating an enormous conference center with more than 1,000 exhibitors can be a difficult task, particularly when you’re searching for a specific company and only have ten minutes to find its booth. Clean Power Finance, a solar financing company that recently announced its $75 million Google Fund, is partnering with SPI to help all those sun-lovers in attendance locate key events, seminars and more through a brand-new SPI Mobile App.

This mobile app, the first of its kind to be used at SPI, is designed to guide attendees to maps, news and other pertinent information as it develops onsite at the conference. Everything you need to stay on schedule and connected is on this app, which is available at the iTunes app store (search “Solar Power International” to download it for free).

The SPI Mobile App includes the following:

•    Navigating the event with an interactive floor map that uses GPS;
•    Managing your schedule in real time;
•    Searching exhibitor listings and products by keyword, and download company information;
•    Viewing the schedule of conference sessions and special events;
•    Receiving real-time show alerts and RSS news feeds;
•    Interacting through social media;
•    Accessing show documents;
•    And much more!

SPI Mobile is available for iPhone/iPod Touch and Android, or as a web-based application for all other smartphones including BlackBerry. So take advantage of mobile technology while exploring the future of solar energy technology; make sure you stay up-to-date on SPI activities, hit up all the speaking sessions you want to hear, and don’t get lost in the crowd. Enjoy the show!

Act Two: Schwartz MSL

2011-09-15T06:00:42Z

I want to share some really exciting news about Schwartz Communications. After 20 years of independence, we’ve become part of MSLGROUP---one of the world’s largest public relations and engagement agencies.

It takes something special to change two decades of independence. And we’ve found it in an amazing organization with talented employees, terrific clients, and a shared passion for storytelling in all its mediums. Our unique and shared strengths mesh very well.

As Schwartz MSL, we’ll continue our focus on “innovation companies of all sizes” and the technologies, treatments and services that transform business, save lives and conserve our natural resources. But as part of an outstanding industry leader, we now have a new assortment of engagement and marketing services, and a network of thousands of additional experts in more than 80 MSLGROUP offices worldwide.

We’ve moved to a truly global stage, and Schwartz MSL will continue to lead the way in delivering the reach, influence and creative service offerings our clients need to create new markets or transform existing ones. We hope you’ll enjoy our next act, which you can follow here in our blogs and on Twitter at @schwartzmsl.

Cleantech PR: Military Appetite for Renewable Energy to Grow more than 10X According to Pike Research

2011-06-17T17:43:50Z

With the 2010 midterm elections resulting in a GOP majority in the House, a lot of pundits predicted that federal government support of renewable energy would dry up. But now it looks as though support for renewables will come from what is widely regarded as the most conservative of all government institutions: the US military.

According to a new report from Pike Research, military deployments of renewable energy will increase more than 10x over the next two decades. According to a release outlining the report, “military agencies’ spending on renewable energy technologies will continue to rise rapidly over the next two decades, growing from $1.8 billion per year in 2010 to $26.8 billion by 2030. The majority of this spending will be for Mobility applications including portable soldier power as well as land, air, and sea vehicles. Energy for Facilities operations will represent a significant portion of the market, as well.”

This is a public relations and public affairs win for solar, wind and biofuels, as the industries try to continue to win the support of some democrats and social conservatives whose fates are not directly tied to coal, natural gas or oil production in their states or districts. Given the remoteness of many military installations, distributed generation makes a lot of sense.

This should come as no surprise, given recent buzz around military test driving renewable energy systems on bases and the most recent Quadrennial Report which identify climate change as a direct threat to national security.

On the heels of Total's acquisition of SunPower, this is another piece of great news and validation for the industry.

Enviance & Earth Day Bring Together Green Thought Leaders for Blogathon

2011-04-22T14:52:45Z

I remember in fifth grade having to write an essay on "what the Statue of Liberty means to me" and being impressed by the number of different points of view expressed by my classmates for what seemed to me to be a one-angle topic (freedom). Well today, we will see what Earth Day means to people around the world and I think the number of different interpretations would be mind boggling.

We get to see a small sample of this disparity between how people view Earth Day and the different issues they view as important on Enviance's blog page. The company is today hosting an Earth Day blogathon featuring 24 different posts in 24 hours from thought leaders across different business disciplines. IDC, Ovum, The451, TriplePundit and a number of others will offer up posts discussing some of the issues they see as core to environmental stakeholders (i.e. all of us) on this 41st Earth Day.

Yours truly contributed a post about how Earth Day has finally transcended the (and I say this affectionately) "Tree Hugger" audience it has traditionally been associated with. Instead, it brings together a growing coalition of surprising stakeholders, activists and proponents, all of whom see sustainability as core to the environment, our economy, our security and our future. Who are those stakeholders? How has Earth Day finally moved to mainstream relevance? By learning a simple PR lesson. Click on over to find out more...

Happy Earth Day!

Cleantech PR: California 33% RPS Music to Renewable Project Developers' Ears

2011-03-15T15:43:41Z

“They’ve moved the cliff out one year,” was the paraphrased response given by one executive of a Schwartz solar client when asked about the US Treasury grant program that got extended late last year. The program, allowing solar and wind project owners to get an uncapped 30 percent of a project’s value in the form of an up-front grant, is one of the beneficial federal programs that has helped preserve investment in renewable energy.

Another Schwartz client once said that the biggest lynchpin to stimulating massive amounts of solar and wind development was some sort of long-term, cohesive policy that gave project developers, financiers and owners certainty through a project’s entire lifecycle. The issue? If a wind farm takes years to design, permit and install, then a 12 month policy doesn’t do much for reassuring the bankers on project cost and IRR.

So while an RPS target almost a decade off isn’t the “killer app” in renewable energy policy, it does send a message to market stakeholders that a state, country or region could be a healthy market for years to come. That brings us to a bill expected to pass the California Assembly this week that will set an aggressive 33 percent renewable portfolio standard, requiring utilities to get one-third of their energy from renewable sources by 2020.

California taking the lead on policy is nothing new—the California RAM FiT program is just one example of policy that had cleantech companies excited. But it is critically important that it continue to lead the country toward a more sustainable future, as federal policy becomes neutered by a Republican-controlled House intent on curtailing the efforts of EPA and California to regulate greenhouse gases and giving polluters a free license to emit whatever they would like with no controls.

You’ll hear a lot about an “energy tax” which is how renewable energy and environmental opponents will cast AB 32 and other California policy over the next 3-6 months. But make no bones about it, any policy that spans the life of energy projects will have a positive impact on energy security, environmental health and job creation in California and nationwide.

The tug-of-war over clean energy spending

2011-02-16T19:23:13Z

In recent weeks, clean energy and green technology has become a high-profile arena for the tug-of-war between Republicans’ desire for spending cuts and the president’s desire for innovation and research. The presidential budget released Monday only brings this issue into even sharper focus, as it provides the first concrete mechanism for each side to begin enacting its platform.

President Obama’s $3.7 trillion budget calls for $8 billion in clean energy spending across all federal agencies, more than the $6.6 billion Congress approved for clean energy programs in 2010. The budget calls for $148 billion overall for research and development, $46 billion of which would be paid for by reducing subsidies to the oil and gas industries. The president’s proposed allotment of $27.2 billion for the Department of Energy (DOE) represents an overall decrease of 12.7% from the Department’s 2011 funding level. Similarly, the president’s budget proposes $8.8 billion in funding for the Environmental Protection Agency (EPA), which constitutes a. 11.2% decrease from its 2011 funding level.

The Republican counterpoint to this budget is the House GOP’s Continuing Resolution (CR), which will be debated on the floor this week. The government-funding bill is expected to cut $3 billion from EPA, an amount which represents approximately one third of EPA’s available discretionary spending. The bill is also expected to cut approximately $1.5 billion from DOE, and $107 million in climate change-related programs.

However, the president’s proposed budget does call for increases to certain programs within EPA and DOE, notwithstanding the overall reductions in funding levels. The budget provides for increased spending for DOE’s National Nuclear Security Administration (NNSA), for example, as well as for an increase (to above-historic-levels) for EPA programs to help states comply with pollution regulations.

Which agencies and programs receive cuts or increases to their budgets, and in what amounts, will be determined over the next four months as both parties work to determine and finalize federal funding for fiscal year 2012.

Is Security the next big PR Message for Renewables?

2011-01-18T22:54:50Z

One of the biggest changes in renewables over the last decade was the shift in motivation from environmental to economical. Through rapidly decreased costs and major policy changes, solar and wind became a viable alternative and even a strategic economic investment for many businesses and individuals. Economics is still the driving message, but a new and interesting message has emerged: National Security.

A recent op-ed piece in the New York Times, calling for renewables and energy efficiency for military operations, highlights that a staggering 1,000 troops have been killed in fuel-related missions during the wars in Iraq and Afghanistan. Considering that total deaths in these wars are estimated at less than 6,000, energy security is becoming a key issue to military officials.

For this and other reasons, the military has recently been stressing the importance of energy independence, both domestically and abroad. The DoD recently launched the Environmental Security Technology Certification Program (ESTCP), to procure and test promising new renewable energy technologies (full disclosure, Schwartz client Skyline Solar was selected). A renewable energy marketer couldn’t ask for a better type of exposure—Military endorsement is a great GR tool, particularly when working with republican officials. Furthermore, these companies now have a chance to build a relationship with the US military – a group with literally the world’s deepest pocketbook.

Outside of the military, Hawaii is another example of security as a benefit to renewables. The state imports nearly all of its fuel resources, which isn’t cheap and certainly isn’t secure. Because of this, Hawaii has become is perhaps the most ambitious of all states, seeking to shift to 70 percent renewable energy for the entire state by 2030. Governor Linda Lingle has sought for quite a while to make energy security part of the conversation. A state making such a huge leap into renewables, and focusing on energy security, is all the more reason marketers should consider adding security to their messaging

Because this conversation is still new, smart marketers will begin discussing energy security early (thought leadership, press release key words, contributed articles) to not only steer the conversation in their favor and build a long-term voice on the subject, but even to build SEO. A Google search of the key words: “Renewable”, “Energy” and “Security”, doesn’t turn up a single vendor on the first page—leaving the window wide-open to those who want to initiate the security conversation.

Fortunately also, the shift in messaging may not be that extreme from what many are already doing. Most of the key words and messages associated with economic benefits (reliability, cost-effectiveness, scalability) remain just as important from a security perspective. A quick project installation time may also be beneficial to stress, for entities looking to interfere with operations as little as possible. Pay back period and ROI, on the other hand, may be less important of a message.

Regardless of how security fits into your company's message, if your product is near-ready or already shipping, the emphasis on energy security should be on your radar for 2011.

The Evergreen Solar PR Nightmare: Shareholders and Taxpayers are Strange Bedfellows

2011-01-12T16:31:28Z

In one of the most disappointing moves in the era of taxpayer and policy-backed cleantech, Evergreen Solar announced that it will close its Devens plant and lay off 800 people. This after taking $58 million in state taxpayer money to construct the plant.

As a PR professional and as someone who works for a firm that also offers GR services, there is no silver lining in this news. In an political era of absolutes and no middle ground, Evergreen has given clean technology naysayers ammo to argue that government support of renewables is a bad idea.

As someone who lives in the Bay Area, but grew up 20 miles west of Devens in a small town called Westminster, I am sad for Central Massachusetts, which could certainly use the 800 paid jobs and seeds of a new industry that Evergreen had planted.

As a realist, it has reinforced what has long been a belief of mine: That when a company has a choice between shareholders and Joe and Jane Taxpayer, they will choose shareholders every time as is their obligation as a public company. Does this mean that the government shouldn't invest in helping develop private industry in its region to stimulate jobs? No. But it may give the government pause about exactly the type and size of investment they should make.

Would it be great it just one company stood up and said, "margins be damned, we're going to stick by the commitment we made to the state of X and the millions of taxpayers who have supported us?" Sure. But they would be hammered by investor lawsuits immediately thereafter and likely have to reverse course.

So what is the only potential savior in this situation? That another company that can compete on cost while manufacturing in Massachusetts acquires the plant and starts production soon, similar to what Tesla has done with the NUMMI plant in Fremont. We have to hope that those skilled, 800 workers get their jobs back with a company committed to the region.

From a more macro point of view, it begs the question if more regions should take a page from Ontario and set a requirement that a certain percentage of product included in a system must be manufactured locally to qualify for a tax credit. Otherwise, there is little incentive for companies--especially public companies--to maintain a facility that increases its cost. Either that, or governments need to take a harder look at making more small, early-stage investments in companies that aren't yet beholden to Wall Street.

Green Policy Update: Reverse Auction Market FiT, Solar PEIS, Treasury Grants & Cap and Trade

2010-12-16T22:15:53Z

While many predicted the midterm elections would play Ebenezer Scrooge to Cleantech's Christmas, it turns out that state and federal government agencies have swooped in to spread some Green cheer. With two major announcements today from the CPUC and Bureau of Land Management (with assists from the DOE and DOI), the number of renewable energy projects in California, Texas and the Southwest will likely get a huge boost.

The CPUC today approved California's proposed reverse action market feed-in tariff (RAM FIT) which promises to drive the development of 1GW of renewable energy in California alone.

In a separate announcement, the DOE and DOI today announced the conclusion of the Solar Programmatic Environmental Impact Study which has identified the federally owned land most suitable for utility-scale solar development in six southwestern states. The study will allow solar to receive accelerated approval for projects on publicly owned lands identified as ideal sites for solar development.

Other important developments this week include more details on California's long-awaited move to implement cap and trade on carbon-intensive businesses, and the extension of renewable energy grants in the House version of the Bush tax cut bill. While proponents of the grants were hoping for at least a three-year extension (one of Schwartz's clients likened a one-year extension to "pushing out the cliff"), it gives the industry 12 months to push for a longer extension. And though cap and trade at the federal level appears dead and meaningful energy reform policy is unlikely to pass the new House, government agencies appear to be flexing their muscles on behalf of the Cleantech industry.

A 'How to' on Educating Elected Officials on Your Client's Technology

2010-12-06T19:55:44Z

Luminus Devices manufactures the biggest LEDs in the world. The company works with many of the largest electronics companies and lighting companies, including Samsung, LG, Acer and Philips VariLite. The company is redefining the solid state lighting market. Their LEDs can last upwards of 50,000 hours (about 25 years of normal use), contain no mercury and use a fraction of the energy used in traditional incandescent light bulbs. The $40 billion lighting industry is going through an epic transformation with innovative companies like Luminus leading the way. Just one example: typical LEDs emit anywhere from 70-100 lumens per watt while some of Luminus' big chip LEDs provide an output of 20,000 lumens. Wow!!

This amazing story should be seen by everyone, so the Luminus team at Schwartz Communications recently organized a visit to their corporate headquarters in Billerica-MA by 5th Massachusetts Congressional District Congresswoman Niki Tsongas. She met with senior management, toured the manufacturing facility and took questions from employees. This gave the PR team an opportunity to pitch local media outlets and to further educate reporters about the company, its products and how it has created more than 40 new local jobs in 2010. This was the first of what we hope is many steps in educating local and regional elected government officials. To learn more, visit: http://www.luminus.com/contentmgr/showdetails.php/id/1667#1667.

With planning underway for 2011 and Marcom budgets being finalized, now is the time to begin planning a visit by elected officials to your company. Ask yourself some simple questions. First, would your company benefit from government funding in the renewable energy or cleantech markets? If you answer yes then what are you waiting for? Second, reach out to elected officials to confirm a date for them to visit. Prepare a corporate overview with a few simple slides that the CEO can speak to. Then plan a walk-through of the manufacturing plant to give the official a first-hand look at the innovative technology your company is developing. After that, gather employees for an informal Q&A. Close the visit by having a short meeting between just the CEO and the official to discuss jobs and the challenges of manufacturing and employment in the United States. Shoot video of the visit and take many photographs for the company's web site. From start to finish the visit should last 60-90 minutes.

Even better – contact the Schwartz Government Relations Group and let’s talk about it. We do this frequently and we can help you make the most of working with public officials.

As Congress Goes Lame Duck, Agencies Pick Up Some Slack

2010-11-11T19:01:28Z

It's understandable that some people have treated the midterm election results as an all or nothing proposition for stakeholders in clean technology. After coming so close on a couple of occassions to a national energy policy, it is disappointing that the policitcal winds have shifted from any meaningful high-level compromise on climate change initiatives and renewable energy at the federal level.

But just as it was a mistake to assume that cleantech-friendly majorities in the House and Senate, plus President Obama would lead to an automatic overhaul of policy, it would be folly to assume that a divided Congress will kill any federal support for the market.

Case in point? There were three major examples from federal agencies this past week that show there are other ways for the President Obama-led federal government to stimulate the Green economy and battle climate change. They are:

The United States Patent & Trademark Office announced an extension of the Fast Track program for Green patents. Skyline Solar, one of Schwartz's clients, has been a direct beneficiary of this policy as the company looks to guarantee the integrity of its intellectual property to company and market stakeholders. This is an important program for companies looking for new rounds of investment or just starting out in a hyper-competitive cleantech market.

The second announcement came from the EPA regarding further guidance on its "Tailoring Rule" for reducing greenhouse gases (GHGs) at state and local levels. This guidance stems from the historic EPA ruling that climate change is a threat to human health and therefore can be regulated under the Clean Air Act. This rule, albeit with some challenges to overcome, provides a one-two punch along with California AB 32, in helping the federal government and states exert their authority over carbon and other GHG emissions.

The final example comes from the DOE which, according to a story this weekend in the San Jose Mercury News by Dana Hull, continues to pump millions of dollars into the Cleantech industry. Schwartz client Soladigm, a manufacturer of electrochromatic windows for improving energy efficiency in buildings, was the recipient of more than $3 million.

All of these examples point to a power struggle in the years ahead between Federal agencies and the branch of Government that controls budgetary purse strings (i.e. the House). It will be interesting to see how things develop, but rest assured the new Congressional make up is not a all or nothing proposition and "Drill, Baby Drill," will not be not be the new energy policy in Washington.

Solar Power International 2010 Buzz: Treasury Grants, AB 32, Inverters, etc.

2010-10-15T16:43:35Z

I'll be the first to admit that I was pleasantly surprised with the venue and location of this year's Solar Power International. The LA Convention Center, although very spread out, was a good venue to hold an industry event that is almost bursting at the seams with interest and enthusiasm.

So what was the buzz at this year's Solar Power event from a public relations' (PR) perspective? Here are some quick snapshots of what buzz I thought dominated the show:

1) Policy: This is a no brainer as ever since Solar Power 2008 in San Diego, policy has been a major focus of every event I've attended.

Top of mind? The US Treasury Grants for renewable energy projects. The grants are scheduled to expire and many think that failure to extend the grants would be a huge blow to an industry that has regained its legs after the financial crisis of 2008/2009. This is likely the top priority of the renewable energy lobby right now and should be through the end of the year.

Another hot policy topic? Proposition 23 and its challenge of AB 32. Most people realize that defeating Proposition 23 on the California ballot is another big step in accelerating solar and renewable energy adoption not just in California, but nationwide. In fact, many experts believe that the enforcement of AB 32 will spur the federal government to act on a national RPS/RES and GHG emission targets.

The final hot topic was the Reverse-Auction Mechanism Feed-in Tariff (RAM FiT) under consideration by the California Public Utilities Commission (CPUC). The program, which would fund up to 1 GW of solar projects over the next five years, would be a huge boost to the wholesale solar energy market, equaling the California installed solar figure for all of 2009 (220 MW) just through the RAM FiT program.

If the Treasury Grants are extended, Proposition 23 is defeated and the CPUC program is implemented, we could see a golden age of solar adoption over the next five years.

2) Inverters: When Schwartz helped launch a DC Power Optimization technology at Intersolar Munich in 2009, the inverter market was fairly stagnant from an innovation standpoint. Enphase and microinverters were still relatively new, eIQ Energy and Sustainable Energy Technologies hadn't launched their offerings yet and major vendors like Satcon and Xantrex were taking their lumps for poor performance.

Today? Innovation is happening at all levels of the inverter market, from residential to utility. It seems every month there is a new microinverter or DC power optimization technology being launched, aimed at making systems cheaper and "smarter," and providing new ways to maximize solar investments. Combined with some new architectures and products at the utility-scale level from vendors like Advanced Energy (which acquired PVPowered) and Satcon, and you have new life in what was considered to be a "dumb box" market several years ago. Now many experts are saying a shake out and M&A wave will come, that will result in some of the larger vendors acquiring some of the more cutting-edge technologies. It also will be interesting to monitor inverters as the renewable energy interface with smart grid deployments.

3) Tracking, CPV and CIGS: Several technologies have gained wider spread-acceptance and adoption over the last year, resulting in Engineering, Procurement & Design (EPC) firms taking a harder look at where they fit in future project plans. More than one company mentioned that CPV technologies are on the cusp of seeing widespread deployment as developers look for ways to improve returns on solar implementations and reach a levelized cost of electricity (LCOE).

Tracking is another area that, albeit not new, is starting to generate some buzz among large EPCs. Whereas the technology has, in the past, had some bankability problems the entrance of European project financiers into the North American market is beginning to increase investor appetite for risk in terms of incorporating less proven tracking technologies into systems. Most of the market is focused on single axis tracking currently, but dual-axis tracking could soon be popping up in more project designs.

No cell technology market has been more maligned than CIGS over the past few years with the well-publicized missteps of some of Silicon Valley's most well-funded CIGS companies. But with a renewed emphasis on capital efficiency, performance and new BIPV form factors, CIGS is seeing a bit of a rebirth. The technology has always been the lab darling of the thin-film crowd with great theoretical efficiencies and solid small-scale performance. Many are predicting that it will finally live up to its promise.

4) SunPower Advantage Almost Gone? Over the past few years SunPower has been seen as the market leader in module performance, commanding a premium over other technologies. But now many are saying that the low-cost module makers from outside the US are shifting their attention to performance which could erode SunPower's performance advantage and eat into the company's premium status. On the installation side, several technologies are emerging which could rival SunPower's T5 Roof Tile. Zep Solar, Lumeta Solar and others are generating a lot of buzz

So that is one Cleantech PR flack's take on the topics that seemed to dominate the event. We talked to our 12 clients attending the show in some capacity, and all of them agreed there is a good deal to be optimistic about in 2011. On to Dallas...

Plenty of renewables interest but where's the money?

2010-09-30T17:44:00Z

There was standing room only as the Renewable Energy Finance Forum (REFF) – London - Europe’s largest and most established event for renewable energy finance and investment, which celebrated its 12th year anniversary. The highly successful 2-day conference united 400 investors and project developers from over 25 countries.

Lord Browne opened the conference that facilitated thought-provoking, open and highly controversial presentations and discussions on the European global renewables financial market. Other leading speakers included, Hermann Scheer, German MP and Chairman of the World Council for Renewable Energy, Peter Gutman of Standard Chartered Bank, Craig Coborn of BP Alternative Energy and Yvo de Boer, Former Executive Secretary, United Nations Framework Convention on Climate Change & Global Advisor on Climate & Sustainable Development, KPMG.

Over 2 days, speakers composed of almost 70 experts in the renewable energy sector continued the tradition from the last twelve years of bringing together key investors, bankers, developers and renewable energy service providers.

The renewable energy industry has achieved considerable successes here in Europe, which accounted for 44% of all renewable energy deals in 2009, up from 38% in 2008. That being said, the renewable industry is still in the midst of a very challenging period, with the EU Directive mandating 20% renewable energy by 2020 now in full force. Wind remains the most popular renewable and it has been helped along by government incentives as it has gained more than half of the roughly 26 billion invested globally in clean energy in the first quarter of 2010.

As a media sponsor, Schwartz attended the sessions and had a series of interesting conversations on our stand, leading us to take home a few key messages. Firstly, there are some real challenges in funding – the scale of investment needed for infrastructure projects such as the proposed supergrid is far beyond anything ever attempted in the history of mankind! Furthermore, the sector still hasn’t passed the institutional investment threshold – and how can it in the foreseeable future since it seems impossible to accurately calculate risks, and thus ROIs, on long-term windfarms for example.

Another interesting development was the confidence in solar and the belief that grid parity was achievable within the next five to ten years as panel costs come down. Currently, there are concerns about the key Italian and Spanish markets, but there were some positive sentiments about both. Of course the debate regarding feed-in tariffs went around in circles as usual with equally passionate supporters and opponents. However, all agreed that consistency and long term commitments from governments were essential whatever they decide.

With the momentum gained here in London, the conference moves on to San Francisco from September 29 to 30 celebrating its 3rd year of REFF West in the United States.

World's Largest Offshore Wind Farm Goes Live; What About the US?

2010-09-24T14:54:10Z

It seems like every week, Europe is setting a new benchmark for wind and solar farms. From the world's largest wind farm currently in development (in northern Sweden), to the Thanet Wind Farm which was commissioned today and officially becomes the world's largest offshore wind farm.

The commissioning of the Thanet farm, located in the North Sea, is great PR for the UK which has languished behind Germany and Spain in terms of clean technology innovation, development and adoption.

But the big question for the US is, why not us? What does the US have to do to stimulate more offshore wind farm development? What can we learn from Europe (tons)? There are a few things the government and the wind industry can do to open a very large and lucrative market:

1) Fast-track legal challenges--As the Cape Wind farm illustrated, the US is very prone to legal challenges, not-in-my-back-yard protests (NIMBY) and other ways of slowing project development. The hope is that the US Department of Interior sent a message with its landmark decision to greenlight Cape Wind, but it still won't stop coastal property owners, fisherman and fossil fuel power suppliers from protesting development.

2) Longer-term tax credits--One of the big things blocking the development of offshore projects is the lack of a longer-term tax credit which is important for securing project financing. Instead of renewing things like the ITC and PTC, or treasury grants for two years, it would give the industry a big boost to have a five or a ten year tax credit. Other measures like the passing of a renewable electricity standard or a tax on carbon would also make offshore wind farms more attractive to utilities.

3) Continued technology innovation--The reason you only hear about offshore wind development on the Atlantic seaboard, is that the technology has not existed to install offshore wind farms off the Pacific coast of the US. There are a number of factors that make the coasts of California, Oregon and Washington less suitable for wind farm developement, including the grade of the seafloor. However, floating wind turbines currently in development in...you guessed it, Europe, could be one answer to the lack of offshore viability in the Pacific.

The US has made a lot of progress in onshore wind--from the rapid rise of Texas as the country's largest wind energy producer--to the nurturing of small wind for rural farms and residential applications. But the market still has a long way to go to fulfill its promise.