Japan Goes Solar

A $286 Billion Dollar Solar Pay Day
The anti-nuclear movement got a real boost following the Fukushima crisis. There's no doubt about that. And as a result, renewable energy was once again paraded around as one of the many forms of clean energy that could be used to displace any nuclear power that would be phased out in Japan...Especially solar.

A few months ago, Prime Minister Naoto Kan announced a plan that would put solar panels on about 10 million roofs by 2030. Of course, he gave little details on how such a plan would be funded. But since the announcement, a number of high-level government officials have called for a solar feed-in tariff similar to that of Germany's.

University of Tokyo professor Ryoichi Komiyama recently offered his analysis of the effects of such a tariff, and noted that in a scenario where the country would seek 30 gigawatts of solar, a $261 billion market for solar panel production and installation would be created.

In the case of utility-scale solar, Komiyama added that developers would potentially have to spend an additional $25 billion for about 8 gigawatts of batteries.

As you know, we've long been bullish on utility-scale batteries, particularly in the case of solar. I would even argue that if Japan were to go full force on a solar feed-in tariff, it would be the utility-scale battery players providing the biggest pay day for investors.

You see, of the top five solar panel producers in Japan, only one is a pure play. And that's Suntech Power (NYSE: STP), which is actually the world's largest solar panel producer. If Japan were to implement this feed-in tariff, Suntech would get a huge boost.

Also benefiting from the tariff will be Sharp (PINK SHEETS: SHCAY), Kyocera (NYSE: KYO), Panasonic Corp (NYSE: PC), and Mitsubishi Electric Corp (PINK SHEETS: MIELY).

A Solar Market on Steroids

If Japan were to implement this feed-in tariff, we'll also see an even quicker drop in production costs. As my colleague Nick Hodge pointed out last week, for every doubling of solar manufacturing capacity, production costs fall about 20 percent.

With a Japanese feed-in tariff implemented, you can be sure that solar manufacturing would kick into overdrive with a serious shot of steroids. And consider Japan's energy demands as the world's third largest economy. They're talking about 30 gigawatts of installed solar, or 75 percent of what the entire world installed from 2000 to 2010. This is a very big deal.

To take it one step further, Japan's environment ministry indicated the potential for commercial solar projects could theoretically reach 150 gigawatts. That's about ten times the capacity of Germany, currently the world's largest solar market.

Of course, it all comes down to how aggressive the Japanese want to be. While there have been dozens of polls showing Japanese consumers want to transition to cleaner forms of power generation, the question is, Will they be willing to pay for it?

I can't imagine Japan's total installed solar reaching 150 gigawatts anytime within the next 20 to 30 years. I just don't think there would be enough political support for it. And I'm pretty sure no matter how much the Japanese despise nuclear right now, they're probably not going to be too willing to pony up any significant increases in their utility bills in order to pay for the integration of 150 gigawatts of solar...

That being said, a temporary feed-in tariff used to get 30 gigawatts installed over the course of 20 years is not out of the question. And if there's any indication that this tariff will actually get approved, you would be wise to load up on a few solar and utility-scale battery stocks. We saw what Germany's aggressive feed-in tariff did for solar investors. It essentially launched a solar bull market. The impact of a similar feed-in tariff in Japan would do the same — but on a much bigger level. To a new way of life, and a new generation of wealth...

Article by Jeff Siegel June 27, 2011

Solio Classic Universal Hybrid Charger

A tiny fraction of the energy emitted by the sun is enough to power your needs many times over. Harness that energy quickly and effectively with Solio Solar Chargers. The Solio charger is a solar powered energy source that can power all of your electronic devices from cell phones to iPods to GPS systems. The sleek, ultra modern design is also compact and lightweight making it great for any travel use.

Provides an emergency power source when away from power outlets to keep you going anywhere

Works with multiple gadgets, including mobile phones, Bluetooth headsets, smartphones/PDAs, MP3 players, portable gaming devices, digital cameras, GPS and more. Convenient compact, lightweight design is perfect for travel or emergency use. All Solio chargers are made from Reusable and recyclable materials to help you give back to the environment even after you are done using your charger.

Solio has been designed to harness the sun’s energy, shortening the process of transforming it into electricity by using photovoltaic cells (PVs). PVs convert sunlight into electricity that can be used immediately. The process is clean, fast, noiseless, and—thanks to Solio—easily portable. Here’s how it works. Light from the sun hits the solar cells, exciting electrons within the cell. Some of them break free, and are channeled through a conductive metal strip to create an electric current. This current can either be stored in a battery or used directly in the form of electricity. The stronger the sunlight and the more rays that hit the cell, the more electricity is generated. Solio features a fan-blade design that allows it to achieve maximum solar area when in use. Just spread out the blades, expose them to direct sunlight either out of doors or affixed to a window, and get ready to take your power on the road.

Charging Solio's internal battery takes 8-10 hours of direct sunlight. Solio will charge your device at the same rate as your conventional charger. Using the included wall adapter, solio will fully charge in approximately 4 hours. A fully charged Solio will completely charge an average cell phone at least twice.

When charging a cell phone directly from the sun, 60 minutes of sunlight will provide approximately 25 minutes of talk time and ten hours of standby time. When charging an iPod directly from the sun, one hour of sunlight will provide about one hour of play time. Solio can store energy for up to one year.

Solio Classic Universal Hybrid Charger

Pursuing Plant Power

In a quest to build a better solar cell, North Carolina State University chemical engineer Orlin Velev is borrowing from nature’s experts in collecting the sun’s energy: leaves. Starting with the natural pigments that help plants harvest solar rays, Velev and his team have crafted a flexible, nontoxic photovoltaic device that he hopes could eventually generate clean electricity far more cheaply than today’s silicon-based solar panels.

Velev’s one-square-inch proto­types consist of light-sensitive molecules—including the photosynthesis powerhouse chlorophyll—embedded in a water-based gel sandwiched between copper and plastic electrodes. Unlike traditional solar cells, many of which contain toxic elements such as cadmium, the biologically derived materials in Velev’s device can be safely released into the environment after use. The cell’s flexibility could make it an ideal choice for covering irregular surfaces; large pieces could even be rolled up or folded for easy transportation.

“This is a totally different way of thinking compared to a semiconductor cell, which is solid and expensive,” Velev says. In the next stage of development, he aims to boost the efficiency of the design, which is currently less than one percent of that achieved by top-performing silicon solar cells.

Article by Victoria Tang: Discover Magazine

Power Generation from Renewables Surpasses Nuclear: ENN

The latest issue of the Monthly Energy Review published by the US Energy Information Administration, electric power generation from renewable sources has surpassed production from nuclear sources, and is now "closing in on oil," says Ken Bossong Executive Director of the Sun Day Campaign.

In the first quarter of 2011 renewable energy sources accounted for 11.73 percent of US domestic energy production. Renewable sources include solar, wind, geothermal, hydro, biomass/biofuel. As of the first quarter of 2011, energy production from these sources was 5.65 percent more than production from nuclear.

As Bossing further explains from the report, renewable sources are closing the gap with generation from oil-fired sources, with renewable source equal to 77.15 percent of total oil based generation.

For all sectors, including transportation, thermal, and electrical generation, renewable energy production grew just over 15 percent in the first quarter of 2011 compared to the first quarter of 2010, and fully 25 percent over first quarter 2009. In a break-down of renewable sources, biomass/biofuel accounted for a bit more than 48 percent, hydro for 35.41 percent, wind for nearly 13 percent, geothermal 2.45 percent, and solar at 1.16 percent.

Looking at just the electrical generation sector, renewable sources, including hydro, accounted for nearly 13 percent of net US electrical generation in the first quarter of 2011, up from 10.31 percent for the same quarter last year. Non-hydro renewable sources accounted for 4.74 percent of net US production.

Economic Indicators Point Toward Growth in Renewable Energy

While scanning the horizon in sea of mostly grim economic news, I found three gems - - - news reports or economic indicators, if you will, that point to solid and profitable growth in the renewable energy sector of the economy in the near, 3-5 year term.
These indicators point toward a shift in the financing, production, consumption and distribution of alternative energy, predicated on advances in technology that will bring the productions costs down to a competitive plateau with conventional fossil fuels. I suspect the time it takes from "innovation in the laboratory" to diffuse into the commercial market place has to be reduced from years to months or less, in order for this to work. When investors like General Electric, Google, and MIT, direct research and investment on this scale - - - it just might tip the balance.
The cost benefit ratio of "coal fired" electricity vs "solar" will equalize or fall in favor of solar. In a recent report from Bloomberg news, Mr. Mark M. Little, the global research director for General Electric Co., predicts that solar power may be cheaper than electricity generated by fossil fuels within 3-5 years. A combination of rising energy prices with lower production cost and higher efficiency will make solar cost competitive with conventional coal fired electric generation. General Electric (GE) plans to invest in "advanced" solar panel manufacturing and expects to open a plant in 2013, employing over 400 people and make enough solar panels to power 80,000 homes. If this business plan unfolds as predicted, watch for explosive growth on all fronts the Solar industry.
Major advance in battery technology will change the automotive playing field. The "energy density" ratio of stored battery power vs liquid fossil fuel will get closer giving the battery powered automobile the range you'd expect from a tank of gas - - - with much faster re - charging time. In a press release from the Massachusetts Institute of Technology dated June 6, 2011, researchers announced they have devised a radical new approach to battery construction that provide an inexpensive, smaller, and lighter, alternative to existing battery technology. This is the "breakthrough" technology needed to make electric vehicles affordable and practical. To see the technical details and read full press release go to; http://web.mit.edu/newsoffice/2011/flow-batteries-0606.html
Google recently announced a $280 million partnership with California installer, Solar City, (www.solarcity.com) to set up a financing model that offers residents a roof top solar system for no money down. In exchange, customers agree to pay a set price for the power produced by the panels. This is largest solar initiative of its kind in US that will facilitate cost competitive utility scale power generation and distribution to thousands of homes.
To date, GOOGLE has invested over $680 million in renewable energy projects, with the goal of making the company a "net zero" user of electric power. This corporate philosophy is based on the bottom line premise that solar will cost the consumer less than conventional fossil or nuclear. We will all be watching this project to see how it plays out, both in KWh generated and return on investment. If this investment model works for GOOGLE, then maybe, other corporate investors will follow. See full press release; http://news.yahoo.com/s/ap/20110614/ap_on_hi_te/us_google_solar