Funding Energy Futures

We like to get more people thinking and acting for a low carbon, clean energy future, so we don’t hesitate to bring to readers’ attention plans by the rich and famous (Warren Buffett, for example) or the views of energy experts like Nick Butler, as to where the world is heading and the need for a multinational approach to energy investment.  For our part, we continue in a determined fashion to invest in viable renewable energy projects in the region – Indonesia this time – and recognize the plans of others to collaborate, like The Blue Circle and Annex working together to leverage each other’s experience and network. We also want to show that things are happening elsewhere in the world that should give us heart: more money going into wave energy in Australia, for example, and Singapore’s Atlantis Resources moving ahead with tidal energy projects in Europe. It is fair to say too that Singapore is starting to get recognition, not only for its excellent research work in clean energy, but also as “the place most likely to succeed” as a centre for funding a clean energy future for Asia and further afield.

Andrew Affleck

Indonesia Mini-Hydro Investment Plans Proceed

Armstrong Asset Management has agreed to commit up to US $22.5 million to develop and operate a portfolio of 50MWmini-hydro plants in Indonesia being developed by PT Inti Duta Energi (IDE), mini-hydro development subsidiary of Jakarta-listed construction company PT Nusa Konstruksi Enjiniring Tbk (NKE).

21 July  2014

Armstrong Asset Management has agreed to commit up to US $22.5 million to develop and operate a portfolio of 50MW mini-hydro plants in Indonesia.

Armstrong’s South East Asia Clean Energy Fund has agreed to fund the construction of a portfolio of mini-hydro power generation projects in Indonesia being developed by PT Inti Duta Energi (IDE), mini-hydro development subsidiary of Jakarta-listed construction company PT Nusa Konstruksi Enjiniring Tbk (NKE).

Currently, the developer has a pipeline of well over 50MW mini-hydro projects in various stage of permitting process. The first project of 5MW output located in Java is expected to be operational by the second quarter of 2016, followed by additional three projects totalling 21MW output located in Sumatra by the end of 2016.

Michael McNeill, Partner of Singapore-based Armstrong Asset Management said: “We are very pleased to announce this partnership with NKE Group. We look forward to building on our excellent working relationship with the IDE team whose project development and technical capabilities are well recognized in mini-hydro market in Indonesia. Together with NKE group’s proven strong project management, engineering and construction capabilities, we expect to deploy our capital rapidly to deliver high-quality mini-hydro assets to support sustainable development of Indonesia.”

Djohan Halim, President Director of PT Inti Duta Energi welcomed the partnership and investment plan. “It is great to establish this synergy with Armstrong Asset Management. We share a commitment to the potential and the need for rapid growth in the development of clean, efficient and low risk energy solutions. The experience of the Armstrong team in small-scale infrastructure investment in South East Asia is a powerful complement to our activities in Indonesia.”

Armstrong closed its Clean Energy Fund when it reached US164 million last November. Prior to the latest deal, it has made three investments from the fund: a capital commitment of up to US$30 million to Annex Power for solar and biogas projects in Thailand, Indonesia and the Philippines; an equity stake in Symbior Elements to develop a portfolio of solar generation in Central and Northeast Thailand, and a capital commitment of up to US$ 40 million to The Blue Circle for wind and solar projects in Mekong Region.

Indonesia has the largest renewable energy resources in South East Asia with sustained long term growth in power demand. After the revision of feed-in-tariff system announced recently, the Indonesian mini-hydro has now become one of the most attractive renewable energy sectors in South East Asia.

In April this year, Armstrong also announced a partnership with Mandiri Investment Management to work together to invest in renewable energy projects, starting from mini-hydro sector in Indonesia.

About Armstrong Asset Management

Armstrong Asset Management is an independent asset manager, based in Singapore, focused on the clean energy sector in South East Asia’s emerging markets. Armstrong invests in small-scale infrastructure projects and achieved a final close on its debut clean energy fund of US$164m in November 2013, with institutional investors such as IFC, DEG, FMO, Proparco, SIFEM, GEEREF and Unigestion.  Operating with a multidisciplinary team of investment professionals, all of whom possess deep sector knowledge and a collective 80 years of South East Asia operating experience, Armstrong Asset Management integrates strict environmental, social and governance compliance into its investment process to deliver tangible benefits and reduce risks for all of its stakeholders. www.armstrongam.com

About PT Nusa Konstruksi Enjiniring (NKE) and PT Inti Duta Energy (IDE)

PT Nusa Konstruksi Enjiniring (NKE) is an Indonesian public listed company with construction and engineering as its core business.  The company capabilities cover both civil and building works. Since the establishment in 1982, NKE has successfully completed over 200 infrastructure projects and over 250 building projects across the Indonesian Archipelago, including the construction of 180 MW Asahan 1 Hydro-Electric power plant in Sumatera. With 30 years of experience NKE has built strong professional network and capable personnel. NKE has a unique approach to overcome complex engineering problems, which have attributed to its reputation and proven capabilities as a contractor. Since 2011 NKE has incorporated a full subsidiary company, PT Inti Duta Energy (IDE), which is focused on obtaining concessions for Mini-Hydro-Power facilities, building and developing these facilities and operating these facilities. www.nusakonstruksi.com

Annex & The Blue Circle partner for wind projects

The Blue Circle, the Singapore-based renewable energy developer operating in the Mekong region (Vietnam, Thailand and Cambodia), is entering into a partnership with Annex Power, a leading renewable energy group in Southeast Asia, which is expected to lead to approximately US$200 million of wind project investments in Thailand. Previously Armstrong has announced a partnership with The Blue Circle and has committed to invest in Annex Power solar projects in Thailand.

Announcement 12 July 2014

The Blue Circle, the Singapore-based renewable energy developer operating in the Mekong region (Vietnam, Thailand and Cambodia), is entering into a partnership with Annex Power, a leading renewable energy group in Southeast Asia, which is expected to lead to approximately US$200 million of wind project investments in Thailand.

Annex Power, based in Bangkok, is a preeminent renewable energy Engineering, Procurement and Construction (EPC) and project development company in Thailand. Annex Power has been a pioneer in the large-scale solar sector in Thailand with more than 70 MW installed and commissioned.

The company has also been involved in the wind sector in Thailand for three years, and has installed and monitored wind measuring equipment in various locations throughout the country. Annex Power brings its engineering experience as well as its grid connection and construction experts.

Under the new partnership, both Annex Power and The Blue Circle agree to commit resources to develop wind energy projects in Thailand.

Daniel Gaefke, Managing Director of Annex Power, is keen to participate in the future growth of wind power in Thailand: “Combining The Blue Circle’s wind experience in Europe, North America, South Africa and Australia with Annex Power’s track record in solar, hybrid systems and biogas will create a powerful partnership to successfully develop projects in the country”.

With an installed capacity of 223 MW on 3 different projects, wind power in Thailand is poised for growth in the coming years. “The Blue Circle is proud to partner with such an established group in renewable energy in Thailand as Annex Power and is committed to be a significant player in the wind sector in Thailand. The current situation is similar to France in 2002, just prior to the wind market taking off from installation of 100 MW a year to 1,000 MW,” said Olivier Duguet, Chief Executive Officer for The Blue Circle, former CEO of the largest wind Independent Power Producer in France.

By focusing primarily on small projects, the partnership intends to unlock potential sites all over Thailand and to implement state-of-the-art latest technologies to assess and harvest the low wind speeds found in Thailand.

This partnership is expected to lead to approximately US$200 million of wind project investments in Thailand.

About Annex Power

Annex Power is an experienced and proven renewable energy group focused on Southeast Asia. With over 100 professionnals experienced in the engineering and construction of solar, biogas and wind power plants, Annex has planned, financed, built and operated more than 130 MW of renewable energy projects. Annex utilizes high quality products, components and engineering standards to help generate clean and efficient energy for homes, businesses, governements and utilities in the region. Annex’s philosophy is to offer clients and partners independent solutions that are not only reliable and value-driven, but that also generate the greatest environmental and community impacts.

www.annexpower.com

About The Blue Circle

The Blue Circle is a developer of wind and solar energy projects in Thailand, Vietnam and Cambodia. The Singapore based company looks to bridge the gap in project development in the Mekong Region by bringing international project development experience, financial expertise and capabilities together with local market understanding. Its growth strategy is twofold: through the development of its own projects and through acquisition or partnership with local developers. By being vertically integrated, The Blue Circle can identify greenfield sites, pursue project development milestones up until financing and operating of the generating assets.

Source: www.thebluecircle.sg

Review Could Impact on Solar Roof-top Plans

Thailand’s new Energy Conservation Fund board chaired by Gen Udomdej Seetabutr, secretary-general of the National Council for Peace and Order (NCPO) ordered a review of 23 energy-saving and -efficiency projects worth nearly 10 billion baht.  Among the projects are 1.84 billion baht for solar rooftops on state-owned buildings, 400 million for LED lamp replacement for the Defence Ministry and 524 million for energy-saving electrical equipment for small and medium-sized enterprises. Read More

Bangkok Post 2 July 2014

The new Energy Conservation Fund board chaired by Gen Udomdej Seetabutr, secretary-general of the National Council for Peace and Order (NCPO), yesterday ordered a review of 23 energy-saving and -efficiency projects worth nearly 10 billion baht.

Elected by the NCPO early last month, the board met for the first time yesterday and decided these 23 projects might be scrapped, delayed or have their investment terms revised.

Among the projects are 1.84 billion baht for solar rooftops on state-owned buildings, 400 million for LED lamp replacement for the Defence Ministry and 524 million for energy-saving electrical equipment for small and medium-sized enterprises.

The projects belong to the Energy Ministry’s Energy Policy and Planning Office, Energy Business Department, Alternative Energy Development and Efficiency Department and Office of the Permanent Secretary.

“Twelve of the projects will definitely be scrapped, as they’re not feasible,”  said one official.

Others should go with public awareness campaigns for saving energy, but since no continuous efforts are planned for next year, chances of them making the cut are not good, the source said.

Areepong Bhoocha-oom, the new energy permanent secretary and a former finance permanent secretary, said all the projects had been marked for funding under the fiscal-2014 budget. Some have yet to start construction, while others are under development.

The board also appointed a subcommittee chaired by deputy energy permanent secretary Karujit Nakornthap to look into some projects to see if any development had taken place.

“We want the fund to play a more significant role in promoting energy savings and efficiency,” said Mr Areepong.

Under the renewable energy development plan, Thailand targets alternative energy accounting for 25% of the country’s total use by 2021. To achieve that, solar, wind, small hydropower, biomass, biogas and municipal waste-to-energy projects are being promoted to replace fossil fuels.

Moreover, Thailand has a 20-year energy efficiency development plan aimed at reducing energy intensity by 25% in 2030 from 2010 levels and overall energy consumption by 20% during the period.

The Energy Conservation Fund collects a levy of 25 satang a litre for petrol and seven satang for diesel from motorists. Each year, it supports projects to the tune of 7-8 billion baht.

Previously the fund was used extensively in support of biomass, biogas, energy-saving electrical equipment and energy saving consultancy services but in the past couple of years has been heavily used to promote LED and compact fluorescent lamp replacement.

The NCPO last Friday announced that Mr Areepong would replace Suthep Liumsirijareon as the energy permanent secretary.

Mr Suthep is widely known to have received full support from leading executives of the Pheu Thai Party in 2011 and 2012 and worked well with the government these past two years. Before becoming permanent secretary, he had served as secretary-general of the Energy Policy and Planning Office since April 2011.

Source: http://www.bangkokpost.com

Grid parity boost for solar leasing in Singapore

Dr Thomas Reindl, of the Solar Energy Research Institute of Singapore, said after Singapore achieved grid parity in 2012 — where the cost of installing and maintaining solar photovoltaic (PV) panels is on a par with using conventional electricity — solar leasing has established itself as a viable business model in the country. The Housing and Development Board (HDB) last month called for the largest solar-leasing tender to date, under which PV panels will be installed on the rooftops of about 500 HDB blocks.

Siau Ming En reported in Today 27 June 2014

SINGAPORE — The Housing and Development Board (HDB) has called for the largest solar-leasing tender to date, under which solar photovoltaic (PV) panels will be installed on the rooftops of about 500 HDB blocks managed by the Marine Parade, Jurong, Tampines and Sembawang town councils.

The 20 megawatts-peak (MWp) of electricity generated — enough to power more than 4,000 four-room HDB flats — could be used in common areas, to power lifts, corridor and staircase lights, for example, in these blocks as well as the Toa Payoh HDB Hub, the Woodlands Civic Centre and a factory building in Bedok North.

The tender, which was published on May 23 on the Government Electronic Business (GeBIZ) portal and closes on July 11, eclipses an earlier one put up by the HDB in August last year for a company to own and operate 5MWp for 125 blocks — which was then touted as the single largest project — in Ang Mo Kio, Sengkang, Serangoon North and Buangkok.

The pace at which HDB is ramping up solar leasing is a shot in the arm for the development of solar energy here and proves that the concept is economically viable, experts told TODAY.

When contacted, an HDB spokesperson confirmed that the tender is the largest to date. More details will be announced later, she said.

In the August tender, the HDB would offset up to 30 per cent of the start-up costs and buy the electricity from the successful bidder for 20 years at a lower price than the prevailing market rate.

The HDB has not announced the award of this tender.

Dr Thomas Reindl, deputy chief executive officer of the Solar Energy Research Institute of Singapore, said after Singapore achieved grid parity in 2012 — where the cost of installing and maintaining solar PV panels is on a par with using conventional electricity — solar leasing has established itself as a viable business model in the country.

He added: “As soon as it makes economic sense, the private sector will take care of the market uptake and fast adoption (of the technology).”

Other prominent solar-leasing projects under way include that at the newly opened Sports Hub, to which solar company Phoenix Solar Singapore leases 707kWp.

The firm’s commercial director Chee Yeen Yee said that while the solar-leasing model is still relatively new here, its introduction has opened up a new market that is largely driven by government tenders. Increasingly, commercial building owners are also showing interest, she added.

Sunseap Leasing, a solar-system developer, expressed interest in bidding for the latest HDB tender.

The company was awarded a tender in January last year to lease 3MWp to 80 blocks of flats in Punggol Eco-Town, among other solar-leasing projects on its books.

Its business development manager Shawn Tan noted that the latest tender documents did not provide an option for bidders to state an amount they require the HDB to subsidise as part of start-up costs.

He felt this could possibly indicate the authorities’ confidence in the viability of the solar-leasing model for housing blocks.

Instead, bidders are assessed on the efficiency of their systems and the amount of discounts they can offer on the tariffs, he noted.

Town councils involved in the latest tender told TODAY the use of solar energy is not only good for the environment, but will also reduce their electricity bills, which have ballooned in recent years due to higher tariffs.

With economic viability no longer a challenge, professor Subodh Mhaisalkar, executive director of the Energy Research Institute at Nanyang Technological University, said the intermittency of solar energy — it could be affected by cloud cover, for example — could become a constraint if Singapore ramps up its use of such renewable energy.

One of the solutions include looking at storing energy that is generated, he added.

Source: http://www.seris.sg/

US$80 Billion energy wasted from inefficient electronic devices

Today, the world’s 14 billion online electronic devices – such as set-top boxes, modems, printers and game consoles – waste around USD 80 billion each year because of inefficient technology. By 2020, the problem will considerably worsen, with an estimated USD 120 billion wasted. But a report by the International Energy Agency points to a different path, identifying simple measures that can be implemented now to improve energy efficiency in networked devices, resulting in massive savings of energy and money. Read More

Around $80 billion wasted on power for online devices in 2013

Simple measures can keep problem of inefficient ‘network standby’ from worsening in years ahead, IEA report says

2 July 2014

Today, the world’s 14 billion online electronic devices – such as set-top boxes, modems, printers and game consoles – waste around USD 80 billion each year because of inefficient technology. By 2020, the problem will considerably worsen, with an estimated USD 120 billion wasted. But a report by the International Energy Agency points to a different path, identifying simple measures that can be implemented now to improve energy efficiency in networked devices, resulting in massive savings of energy and money.

The report, More Data, Less Energy: Making Network Standby More Efficient in Billions of Connected Devices, shows that electricity demand of our increasingly digital economies is growing at an alarming rate. While data centre energy demand has received much attention, of greater cause for concern is the growing energy demand of billions of networked devices. In 2013, a relatively small portion of the world’s population relied on these devices to stay connected. But energy demand is increasing as a growing share of the world’s population becomes wired and as network connectivity spreads to devices and appliances that were previously not connected, such as washing machines, refrigerators, lights and thermostats.

“The proliferation of connected devices brings many benefits to the world, but right now the cost is far higher than it should be,” said IEA Executive Director Maria van der Hoeven. “Consumers are losing money in the form of wasted energy, which is leading to more costly power stations and more distribution infrastructure being built than we would otherwise need – not to mention all the extra greenhouse gases that are being emitted. But it need not be this way. If we adopt best available technologies we can minimise the cost of meeting demand as the use and benefits of connected devices grows.”

As the report explains, much of the problem boils down to inefficient “network standby” – that is, the maintaining of a network connection while in standby. In many devices, standby is a misnomer: it suggests that the device has gone to sleep and is almost off. In reality, most network-enabled devices draw as much power in this mode as when activated to perform their main tasks.

In 2013, the world’s networked devices consumed around 616 terawatt hours (TWh) of electricity, the majority of which was used in standby mode. Of that total, around 400 TWh – equivalent to the electricity consumed annually by the United Kingdom and Norway combined – was wasted because of inefficient technology.

“The problem is not that these devices are often in standby mode, but rather that they typically use much more power than they should to maintain a connection and communicate with the network,” said Ms. Van der Hoeven. “Just by using today’s best available technology, such devices could perform exactly the same tasks in standby while consuming around 65% less power.”

The report describes technologies and technical solutions as well as a range of policy options that are available to reduce energy waste. It projects that if better energy efficiency measures were applied to online devices in the coming years, 600 TWh of energy would be saved. That’s equivalent to shutting 200 standard 500MW coal-fired power plants, which would cut emissions by 600 million metric tons of CO₂.

In the report, the IEA calls on policy makers, standards development organisations, software and hardware developers, designers, service providers and manufacturers to work together to reduce energy demand. To achieve this, the agency urges an international initiative to enhance standards, as the issue is global.

More Data, Less Energy: Making Network Standby More Efficient in Billions of Connected Devices It is a joint publication between the IEA and the IEA Implementing Agreement for Energy Efficient End-Use Equipment (IEA 4E).

About the IEA

The International Energy Agency (IEA) is an autonomous organisation which works to ensure reliable, affordable and clean energy for its 29 member countries and beyond. Founded in response to the 1973/4 oil crisis, the IEA’s initial role was to help countries co-ordinate a collective response to major disruptions in oil supply through the release of emergency oil stocks to the markets. While this continues to be a key aspect of its work, the IEA has evolved and expanded. It is at the heart of global dialogue on energy, providing reliable and unbiased research, statistics, analysis and recommendations.

Source: http://www.iea.org/

Pacific Islands Clean Energy Funding from ADB

The Asian Development Bank (ADB) will invest $228 million in energy projects in the Pacific in the next 3 years to help the region reduce its heavy reliance on fossil fuels and support more sustainable and environmentally friendly growth, according to its new Pacific Energy Update 2014. The report provides a summary of existing operations in Cook Islands, Fiji, Federated States of Micronesia, Marshall Islands, Nauru, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu, as well as regional initiatives. Read More

ADB to Invest $228 Million in Energy Projects in Pacific for 2015-2017

7 July 2014

ADB funds and products; Energy

ADB supports investments in power transmission and distribution to expand service availability and improve system reliability.

MANILA, PHILIPPINES – The Asian Development Bank (ADB) will invest $228 million in energy projects in the Pacific in the next 3 years to help the region reduce its heavy reliance on fossil fuels and support more sustainable and environmentally friendly growth, according to its new Pacific Energy Update 2014.

“ADB’s energy strategy in the Pacific is focused on assisting Pacific governments with projects that will build greater energy security and sustainability in the region,” said Mike Trainor, ADB’s Pacific Energy Specialist and lead author of the report.

The report says that between 2005 and 2030, demand for electricity in the Pacific region is expected to grow by 7% annually, above the growth of electricity generation at 6.4% annually. Pacific countries will likely remain dependent on expensive imported fossil fuels as the dominant source of electricity until 2030. But the region is making increasing progress in developing renewable energy alternative, and boosting energy efficiency, the report adds.

In the last 4 years ADB has approved four energy projects in Cook Islands, Nauru, Samoa, and Solomon Islands. The proposed energy projects will add to an existing pipeline of loans, grants, and technical assistance totaling $297 million.

ADB is also supporting governments’ efforts to improve efficiency through adoption of minimum energy performance standards for appliances; and upgrading street lighting using energy efficient, long-life technologies. Reforms, education and training, and good governance in the energy sector are other key areas that ADB is working on.

The Energy Update highlights the breadth of energy assistance in the energy sector. It describes country-by-country pipelines of projects and technical assistance that governments have prioritized for ADB assistance. The report also provides a summary of existing operations in Cook Islands, Fiji, Federated States of Micronesia, Marshall Islands, Nauru, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu, as well as regional initiatives.

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to approximately two-thirds of the world’s poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Source: http://www.adb.org/

$15 Billion More for renewable: Warren Buffett

Bloomberg reports that Warren Buffett briefly lost track of how many billions of dollars his company is spending to build wind and solar power in the U.S when describing the investment in renewable energy at the Edison Electric Institute’s annual convention. That didn’t stop him from vowing to double the outlay. “There’s another $15 billion ready to go, as far as I’m concerned.” Read More

Buffett Ready to Double $15 Billion Solar, Wind Bet

By Noah Buhayar and Jim Polson – 10 June 10, 2014

Warren Buffett briefly lost track of how many billions of dollars his Berkshire Hathaway Inc. (BRK/A) is spending to build wind and solar power in the U.S. That didn’t stop him from vowing to double the outlay.

Describing the company’s increasing investment in renewable energy at the Edison Electric Institute’s annual convention in Las Vegas, Buffett had to rely on a deputy, Greg Abel, to remind him just how much they’d committed: $15 billion.

Without missing a beat, Buffett responded: “There’s another $15 billion ready to go, as far as I’m concerned.”

Such bold remarks are common for the Berkshire chairman and chief executive officer. He frequently talks about hunting for “elephant”-size acquisitions and making multibillion-dollar stock purchases.

Still, the comment speaks to the kinds of investments that are increasingly appealing to the billionaire now that his Omaha, Nebraska-based company is the fifth-largest in the world by market value. With dozens of units spinning off cash, Buffett has been allocating funds to regulated, capital-intensive businesses such as railroad BNSF and power companies.

“Buffett has always steered Berkshire toward the future,” said Lawrence Cunningham, a professor at George Washington University and author of the forthcoming book “Berkshire Beyond Buffett.” “Lately, that has meant intensifying the company’s focus on rudimentary, long-lasting businesses.”

‘Keep Moving’

While utilities don’t offer the returns of businesses that Buffett, 83, favored earlier in his career, he has said he likes the industry because it provides opportunities for reinvestment and further acquisitions. He bought control of an energy holding company in Iowa in 2000 and helped bankroll its expansion.

The unit, now called Berkshire Hathaway Energy, operates electric grids in the U.K., natural gas pipelines that stretch from the Great Lakes toTexas and electric utilities in states including Oregon and Nevada. Its renewable investments include wind farms in Iowa and Wyoming, as well as solar farms in California and Arizona.

Unlike other utility-holding companies, Berkshire Hathaway Energy retains all of its earnings. That probably will continue, Buffett said yesterday, estimating that the unit could reinvest about $30 billion into its business in the next decade.

“We’re going to keep doing that as far as the eye can see,” he said. “We’ll just keep moving.”

‘Strong Need’

Berkshire has been able to plow so much into renewable energy because it can use tax credits to offset profit at other businesses, Abel, the 52-year-old CEO of Berkshire Hathaway Energy, said yesterday. Units at Buffett’s company include auto insurer Geico, Dairy Queen, Shaw carpet and T-shirt maker Fruit of the Loom.

Investments in renewable energy will be needed as the U.S. seeks to reduce its reliance on fossil-fuel generation. Electric utilities face cuts of 30 percent in carbon dioxide emissions by 2030 compared with 2005, according to U.S. Environmental Protection Agency estimates of a proposed rule issued June 2.

“It’s encouraging that he wants to invest because as an industry we have a strong need for capital,” Nick Akins, CEO of American Electric Power Co., said of Buffett’s remarks on renewables.

AEP is a partner with Berkshire in Electric Transmission Texas, a joint venture that’s building and operating power lines carrying electricity from the state’s windy plains to cities.

While spending $30 billion on renewable-energy projects would have been unheard of two decades ago at Berkshire, Buffett is signaling that the returns are attractive, said Jeff Matthews, a shareholder and author of books about the company. The comment may turn out to be more than an off-hand remark.

“If he says it, he means it,” said Matthews. “The whole complexion of the company has changed.”

Source: http://www.bloomberg.com/news/print/2014-06-10/buffett-ready-to-double-15-billion-solar-wind-bet.html

Singapore’s Atlantis Tackles Britain’s tidal resources

Britain’s coasts have become a playground for engineers and entrepreneurs intent on producing electricity from the tides. Their efforts are beginning to generate a buzz.Tides, of course, are utterly predictable. Singapore based Tim Cornelius of Atlantis Resources says that Britain’s long, jagged coastline gives it unrivalled tidal resources. This report appeared in the Economist. Read More

A rush to harness Britain’s tides, with just one problem

The Economist  7 June 2014

IF BUILDING wind farms at sea is difficult and expensive, installing turbines beneath the waves is far more so. Currents batter them; salt corrodes them. Yet Britain’s coasts have become a playground for engineers and entrepreneurs intent on producing electricity from the tides. Their efforts are beginning to generate a buzz.

Most of the world’s (at present puny) tidal power comes from barrages across estuaries. Yet long-mooted plans to wall up the River Severn, Britain’s longest, have foundered because of high costs and worries about wildlife. Instead, scientists are focusing on two newer technologies, both of which could soon be tested in commercial schemes. This puts the country “completely at the forefront” of tidal technology, says Gareth Potter of Swansea University.

The first sort is found in the Pentland Firth, the fast-flowing strait between Orkney and the Scottish mainland. This year Atlantis Resources, a marine-power firm, plans to start installing turbines on the seabed—it hopes to plug in 260 by 2020, each about 18 metres in diameter. That would create an underwater power plant with about the same oomph as a small gas-fired station. Researchers at Oxford University think the Pentland Firth could one day generate more than 40% of Scotland’s power, if it were packed with similar gizmos.

The second project is in Swansea Bay in Wales. Entrepreneurs plan to create an artificial lagoon behind a six-mile-long sea wall. Turbines at its entrance would spin four times a day as the tide rises and falls, generating about as much power as an offshore wind farm. Andy Field of Tidal Lagoon Power, the developer, says it would take three years to build; this could start as soon as next spring, if planners approve. His firm wants to rig up five more lagoons by 2023, making 8-10% of Britain’s power.

Tidal power would, in theory, make decarbonising Britain much easier. Solar panels and wind farms produce electricity only when the weather allows, leading to unpredictable dips in supply that must be filled by burning fossil fuels. Tides, of course, are utterly predictable. Tim Cornelius of Atlantis Resources says that Britain’s long, jagged coastline gives it unrivalled tidal resources.

Atlantis’s turbines will be hidden many metres beneath the water, where even the fiercest NIMBYs could not object to them. Swansea’s tidal lagoon could operate for more than a century; locals worried about spoiled views are promised opportunities for swimming, sailing and even farming oysters. Both projects would be the largest of their type in the world, giving British firms a leg-up in a growing global market. Optimists claim this could increase from almost nothing to £50 billion ($84 billion) by 2050, as countries such as Canada, India, South Korea and China grow keen.

Yet these benefits, hoped-for and in the future, involve large spending now. Atlantis will spend £40m installing its first four turbines; the electricity they produce will be about twice as expensive as juice from offshore wind farms and roughly six times pricier than the wholesale price of power. Investors will need to stump up £850m for Swansea’s lagoon; its developers want the government to promise 35 years of subsidies, probably at a rate much higher than has been offered to a proposed new nuclear power plant in Somerset.

Those lofty sums explain why tidal firms are racing to test their designs at ever greater scale. Poyry, a consultancy, thinks Britain will need to build at least three tidal lagoons before they can produce power more cheaply than offshore wind farms; the Pentland Firth draws developers because its tidal streams run twice as fast as in other suitable sites. Guy Houlsby at Oxford University worries that outsized ambitions could result in embarrassing failures. That has yet to stop the surge.

Source:  www.economist.com/news/britain/21603480-rush-harness-britains-tides-just-one-problem-shooting-moon

Atlantis CEO Tim Cornelius has been recognised for his inspiring leadership and outstanding contribution to the energy sector in the prestigious 2014 Acquisition International Magazine Business Excellence Awards, announced today.

Tim Cornelius beat tough competition to win the award for ‘Singapore CEO of the year’, reflecting the huge contribution that Tim has made to the tidal energy sector in Singapore and across the globe. His pioneering vision for commercialising tidal power has paved the way for the development of a whole new industry built on a sustainable and low carbon energy source.

Source: www.atlantisresourcesltd.com/

Australian Wave Energy Project Gets Government Boost

In spite of back tracking on its renewable energy commitments, the Australian Government has granted A$11 million to Carnegie Wave Energy’s first CETO 6 Project to be located at Garden Island, Western Australia, in addition to Clean Energy Finance Corporation $20m loan facility. Read More

Carnegie wins $11m ARENA boost

30 June 2014

The Australian Renewables Agency announced $11 million funding to support the next step in the $46 million Carnegie Wave Energy’s CETO 6 wave technology.

The CETO 6 technology is the commercial version of Carnegie’s CETO 5 prototype, with three units off Garden Island in Western Australia expected to deliver 3MW capacity, providing grid-connected power for a nearby Navy base.

“The $46 million CETO 6 project represents the next generation of Carnegie’s landmark wave technology and is expected to deliver energy at approximately half the cost of CETO 5,” ARENA chief executive Ivor Frischknecht said.

Mr Frischknecht said the technology aimed to be cost competitive with fossil fuels in “in certain markets when deployed in large-scale projects”.

“CETO 6 also allows for offshore power generation, which could enable additional applications for the technology operating further from shore, in deep water,” he said.

The CETO units are large, fully submerged buoys, tethered to the ocean floor and designed to harness energy from the ocean’s waves, with the latest version expected to deliver four times the capacity of the CETO 5 units.

Carnegie also has a $20 million loan with the Clean Energy Finance Corporation as part of its project, and has raised $70 million in private money over 10 years.

$11m Government Grant for Australian CETO 6 Project

 $11m Australian Government grant awarded to Carnegie for $31m CETO Project

 Carnegie’s first CETO 6 Project to be located at Garden Island, Western Australia

 $11m grant is additional to Clean Energy Finance Corporation $20m loan facility

 Power from Project to be bought by the Australian Department of Defence

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to  announce the award of a new $11m Australian Federal Government grant to support  Carnegie’s next wave power project.

The $11 million grant will be received from the Australian Renewable Energy Agency’s  Emerging Renewables Program. This is matched by the $20m five year loan facility from  the Clean Energy Finance Corporation previously announced in March this year.

The securing of this combined funding now allows Carnegie to confirm Garden Island  as the location of its first CETO 6 project. All the power generated from the project will  be bought by the Australian Department of Defence under Carnegie’s existing power  supply agreement for use at HMAS Stirling, Australia’s largest naval base which is  located on Garden Island.

Impression of the CETO 6 Project

The CETO 6 Project (Project) will consist of three CETO 6 units deployed off the coast  of Garden Island and connected to the Western Australian electricity grid. Electricity  generated from the Project will be sold to the Australian Department of Defence under  Carnegie’s existing power supply agreement. The Project will be up to 3MW in capacity and, based on the recent design work, is expected to have a total cost of $31m including design and contingency but excluding corporate payroll and overheads. Design work on the Project has been underway since 2013.

The CETO 6 unit in the Project has a target power capacity of 1MW (1000kW), some four times the current CETO 5 generation being used in the Perth Project. The increased apacity, combined with superior efficiency, delivers significantly reduced power costs and, when deployed at large commercial scale, aims to be cost competitive in a range of markets globally. The CETO 6 design builds on a decade of experience gained in previous generations including the design and manufacture of the current CETO 5 units.

Carnegie’s Managing Director and Chief Executive Officer, Dr Michael Ottaviano said, “This grant funding represents a crucial element of the CETO 6 Project and we are delighted to have achieved this outcome at this time. In a globally competitive environment this gives us the confidence to move forward quickly and efficiently with the commercialisation of our CETO technology. Carnegie is grateful for the ongoing support of the Australian Government.”

The current primary focus of the Company remains on the commissioning and operation of its Perth Project, however, given the lead times inherent in developing projects, it is important that the CETO 6 Project and associated financings are progressed in parallel with the Perth Project. The Perth Project utilising the CETO 5 technology has progressed up to the point of commissioning and an update on CETO 5 Perth Project will be made shortly.

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (ASX:CWE) wave energy technology developer. Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property.

About CETO

The CETO system is different from other wave energy devices as it operates under water where it is safer from large storms and invisible from the shore. The technology is capable of generating power onshore or offshore depending upon the specific characteristics of a project site.

CETO technology characteristics include:

 Converts ocean wave energy into zero-emission electricity and desalinated water.

 Environmentally friendly, has minimal visual impact and attracts marine life.

 Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by

storms.

CETO 6 Project Fact File

 The Project comprises the design, construction, deployment and demonstration of three CETO 6  units in a grid-connected, up to 3MW peak installed capacity wave energy project at Garden Island, Western Australia.

 The CETO 6 Project is supported by $11m in Australian Government funding through the Australian Renewable Energy Agency’s Emerging Renewables Program.

 The CETO 6 Project is supported by a five year $20 million loan facility form the Australian Clean Energy Finance Corporation.

 Utilises Carnegie’s fully submerged and commercially proven CETO wave energy device.

 The clean, renewable energy generated by the Project will be sold to the Australia Department of Defence at Australia’s largest naval base, HMAS Stirling, on Garden Island in Western Australia.

Source:  www.carnegiewave.com