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The Irish Government has announced plans to spend €22 billion over the next four years to aid the country’s journey to a low-carbon and climate resilient economy.

The move forms part of the government’s new National Development Plan, released this week, and covering all parts of the Irish economy.

Energy efficiency, renewables, agriculture, transport and climate adaptation are all covered under the scheme, which has an initial target date of 2021.

The government is aiming to upgrade 45,000 homes per year, add up to 4,500 megawatts of new renewable energy and introduce low-emission, electric buses in urban areas. It will also create a new €500 million Climate Action Fund to help support climate adaptation projects, such as improving flood defences on the island.

Ireland has some of the strongest wind speeds in Europe, and the government is looking to continue to harness this natural resource within its renewable energy plans. By 2030, the plan states that coal and peat-fired plants will “no longer have a role in electricity generation in Ireland”, with wind power continuing to dominate the energy mix in the future; the government also sees a role for a mix of wave, solar, bioenergy and hydrogen.

The report states: “While Ireland clearly faces a very significant task in reducing its greenhouse gas emissions, the current profile of which reflects the particular structure of our economy, action can be taken now to position Ireland to harness significant benefits from realising a low-carbon economy. These include, for example, the creation of sustainable green jobs, sustainable food production, deepening our energy security, and making the environment healthier”.

In a related move to secure energy supplies in the country, a new subsea electricity connector is being proposed with France. This €1 billion project will help provide 700MW of low-carbon electricity to the country from the mid-2020s onwards.

Wind power has grown exponentially in Ireland in recent years

Photo: Kenneth Gallery Smyth

The performance of South Australia’s new lithium ion battery unit has helped “take the straw off the camel’s back”, according to a new review.

An energy expert at The Australia Institute assessed how the world’s largest battery was performing since it was installed by Tesla in December 2017.

The review found that the battery is helping to stabilise the state’s energy demand, providing crucial breathing space for the national grid to meet supply on a second-by-second basis.

In particular it found that the battery was helping to iron out the gaps where renewable energy wasn’t available, as intended, and that the new battery demonstrated the “very valuable role that energy storage can play in the operation of an electricity supply system with high levels of renewable generation”.

This is good news for advocates of the technology who have long hoped that energy storage could provide the missing piece to ensure renewable energy’s long-term success.

Speaking to The Guardian on Friday, Hugh Saddler, the academic who undertook the review, said that the battery was working in “smooth synergy with wind farms”.

"Peak wind production is easily the cheapest way to charge the battery, and it stands ready to fill demand gaps if they emerge. The battery has been charging up overnight, when prices are very low and hitting the grid at the right time to keep price spikes lower than they would be otherwise."

30 megawatts of the battery’s overall capacity is given over specifically to help meet peak energy demand. While this only represents 1 percent of peak demand in the review period, the battery is already proving its worth. The remaining 70 is used in reserve to maintain the safety of the grid network.

"While the watts may seem small in the context of the whole system, the SA battery is providing critical power at the critical moment - in effect taking the straw off the camel's back", Saddler added.

The report also found that carbon emissions within Australia’s power sector were the lowest in January for 14 years. This is largely attributable to the success of the country’s large-scale energy target, which aims to source 33,000 gigawatt hours of electricity from renewables by 2020.

The report concludes that unless electricity consumption surges, “emissions and emissions intensity can be expected to continue their steady fall until 2021”.

Photo: Tesla/Timothy Artman

Experts gathering in London have argued over whether China could dominate the green financing market in years to come.

The event, hosted by Imperial College London, brought together academics in the field to discuss how this crucial, and topical, area can help prevent dangerous climate change. Only yesterday, the Seychelles announced an innovative conservation finance deal to protect vast areas of the country’s marine wildlife.

And while China is seemingly touted as an emerging world player in almost every area, from electric vehicles to space travel, attendees were in a consensus over the country’s potential in the market.

However, China has a chequered history with environmental issues, dating back to Chairman Mao’s insistence that “man must conquer nature”, and continuing into the present-day, which prioritises huge infrastructure projects to drive economic growth.

Professor Yao Wang, who leads the International Institute of Green Finance in Beijing, outlined China’s new strategy on green finance, detailing new ‘pilot zones’ in five regions across the country to address different environmental problems. In addition, she explained how the Chinese Government and financial institutions are now scaling-up their support of clean industries. She stated the country is developing a new financial system which looks to green funds, insurance and credit trading.

The country notably launched its first carbon market late last year, which will cover a huge 4 billion metric tonnes of emissions and 1,700 polluting companies.

Professor Wang also commented that “the lack of legislation is still an obstacle for getting eco-projects rolled out at both a national and local level. There is also a question about how much financial information should be disclosed to potential investors who want to benefit from China’s green finance market”.

New analysis from rating agency S&P on the green bond market, reported by Climate Action last month, showed that Europe remains the dominant force in this area, with the US catching up. Emerging markets, such as China, India and Mexico were cited as increasing their share of the market though.

Dr Charles Donovan, who heads up Imperial College’s Centre for Climate Finance, concluded: “China’s growing position as a leader in the international green finance market highlights the importance of tackling climate change and the role that governments and businesses need to play in boosting the global green economy”.

Climate Action is launching the Sustainable Investment Forum Europe this year, taking place in Paris on 13th March. If you are interested in green finance, learn more here.

Photo: Hanny Naibaho

A new programme is being launched to equip farmers in Africa with climate-smart agricultural tools and technologies.

The project is being rolled out by CORAF, a West African research institute, with the support of the World Bank.

It seeks to place innovative technologies in the hands of farmers to better protect them from the impacts of climate change.

It is hoped that by scaling up the use of new technologies, farmers across the continent can improve productivity, increase climate resiliency, and encourage the younger generation to seek a career in agriculture.

ICT tools and geo-mapping are two such examples that can be used to help crop yields. These provide farmers with added knowledge to improve soil management and growth.

It is thought the scheme, which will be officially launched later this year, will extend across West and Central Africa, from Sierra Leone to Cameroon.

“This program has assigned itself very ambitious targets because West and Central deserve that. Among the beneficiaries, at least 40 percent must be women. The technologies disseminated have to be linked to critical areas such as climate-smart agriculture, nutrition, mechanization, and processing. And it will be judged on the number of permanent and seasonal jobs it creates,” said Dr. Abdou Tenkouano, Executive Director of CORAF.

The project is designed to build on the success of the West Africa Agricultural Productivity Program, which was launched in 2008 with World Bank funding. It has impacted nine million people: increasing annual incomes, boosting crop yields and reducing the prevalence of hunger in West Africa.

However, more needs to be done, particularly to insulate the region from extreme weather events, such as drought and flooding, which are made more common due to climate change.

“Despite the progress made, agricultural productivity in the West and Central Africa sub-region still lags behind the rest of the World,” said Dr. Niéyidouba Lamien, who is the programme’s regional coordinator.

“Focus has to go beyond productivity to address the overall issue of enhancing the food system to address the demand of an increasing population, address youth unemployment, climate change, migration, gender, and nutrition”.

Photo: Sho Hatakeyama

The Seychelles has announced it has established vast new marine protected areas the size of Great Britain.

81,000 square miles of the Indian Ocean have been given over to conservation in an innovative conservation finance deal.

The Seychelles Government swapped $22 million of its sovereign debt into an investment to protect the huge area from illegal fishing, energy developments, and the damaging impacts of climate change.

The deal was designed by US-based The Nature Conservancy and funded by donations, including $1 million from the Leonardo DiCaprio Foundation. It is understood to be the first such debt conversion to specifically protect marine wildlife. A portion of its debt repayments will now finance the marine protection projects, via a new government-run trust.

“This effort will help the people of Seychelles protect their ocean for future generations, and will serve as a model for future marine conservation projects worldwide," said Leonardo DiCaprio, Chairman of the Leonardo DiCaprio Foundation. 

"These protections mean that all species living in these waters or migrating through them are now far better shielded from overfishing, pollution, and climate change.” 

99 percent of the island nation’s territory is made up of ocean, but only 0.04 percent is currently protected. The unique deal will mean that close to 30 percent of the country’s marine areas will now be safeguarded within a few years with strict conditions to protect the ecosystem; only scientific research and closely limited tourism will be allowed in some areas.

Seychelles’ President Danny Faure of Seychelles, commented on the news after it was announced at an event on Wednesday:

"Our approach is ambitious. It is about a paradigm shift on how we manage and use our coastal and ocean resources, how we work together as a government and as communities. By planning properly to protect our environment, we can be sure we are also protecting our people and their livelihoods against an uncertain future”

The areas now under strict conservation include endangered animals, such as the dugong; sea turtles; 10,000 giant tortoises, and a UNESCO World Heritage Site.

Mark Tercek, president and CEO of The Nature Conservancy, said he hoped the project could be replicated in other fragile areas of the world’s oceans: "This is a critical accomplishment in our mission to bring conservation to scale across the globe; what you see today in Seychelles is what we expect to introduce in the Caribbean and other ocean regions facing the threats of climate change" 

In the latest move towards cleaner forms of transport, Porsche has confirmed that it is putting an end to diesel engines in its cars.

The German manufacturer cited a “cultural shift” among its customers as the main reason, according to trade publication Autocar.

It was revealed this week that the company will cease production of the diesel versions of its Macan, Panamera and Cayenne models, eight years after they were first offered to the market.

In a statement, the company said: "Traditionally, diesel engines have played a subordinate role at Porsche – the company does not develop or build diesel engines itself. Currently, the demand for diesel models is falling, whereas interest in hybrid and petrol models is increasing significantly. For example, the ratio for hybrid versions of the new Panamera in Europe is around 60 percent."

However, it does not mean a complete exit from diesel technology as the company said the upcoming Cayenne will feature a “diesel powertrain”. The Cayenne model had initially been recalled last year due to “irregularities in the engine control software”.

The move has provoked a strong response from environmental campaigners who feel that Porsche, ultimately owned by the Volkswagen Group, has been tainted by the emissions scandal. VW was found to have intentionally altered their technology to only meet emissions standards during testing.

Mel Evans, clean air campaigner at Greenpeace, responded: “Porsche is the first arm of VW Group to realise the only way out of the Dieselgate scandal is to ditch diesel and turn to new, clean electric and hybrid technology.

“Porsche’s move away from diesel is a step in the right direction for VW Group. But it’s time for the rest of VW Group to wake up to the fact that dirty diesel’s time is over, and only a bold move to full electric and hybrid can win back their reputation.” 

Photo: Porsche

A new agreement has been signed to further sustainable development at Europe’s football grounds, sports facilities and stadiums.

UEFA, football’s governing body in Europe, and the European Commission have signed an agreement in Brussels this week that will see the two cooperate on issues around sustainability, fair competition, good governance and integrity within the game.

First Vice-President of the European Commission Frans Timmermans said: "Football players, men and women, are role models for children and adults across Europe. This great power can be an important ally…for the promotion of solidarity, sustainability and equality on the pitch and in our daily lives”.

The agreement commits both sites to seek how stronger links can be made between sport and sustainable development by “following best practices in areas of recycling, eco-innovation and waste-management”.

This also includes the efficient use of resources to reduce environmental impacts as a result of events and tournaments. Both sides are also looking to upgrade sports facilities and stadiums to be “innovative, accessible and sustainable”, which in turn promotes public health and social inclusion.

The two will also work together on the upcoming EURO 2020 tournament, which will be the first championship to be played across the whole of Europe to mark its 60th anniversary. The event will be played across 12 cities and include a suite of new sustainability initiatives, such as cutting out plastic waste and making host stadiums buy renewable energy.

UEFA President Aleksander Čeferin said at the ceremony: “UEFA and the European Commission share a common desire to promote the social values of sport and to safeguard the principles of fairness and solidarity”

“We look forward to working closely with the Commission to further protect, promote and develop football for the benefit of society as a whole”, he added.

UEFA also has an ongoing agreement with the World Wildlife Fund to work on climate change and sustainability issues within the game.

Photo: European Commission

Over one million trees have been pledged by people around the world to offset President Donald Trump’s anti-climate policies.

The pledges are the result of a campaign created in March 2017 by three environmentalists “to motivate and inspire people to grow trees in the fight against climate ignorance promoted by President Donald Trump”.

The campaign to build a Trump Forest was born as a result of the US withdrawal from the Paris climate agreement, and Trump’s proposal last year to repeal former President Obama’s Clean Power Plan.

The Plan was a key component of the administration’s fight against climate change and a way to accelerate America’s low-carbon economy.

The US is the world’s second largest emitter of carbon dioxide. It’s estimated that if all of Obama’s climate change policies were implemented they would prevent 650 million tonnes of carbon dioxide from being released into Earth’s atmosphere.

Trump’s own plan to downgrade and rewrite these regulations led to the idea of building a forest to offset his climate-damaging policies.

“We launched this forest because we were extremely frustrated at Trump’s blatant disregard for healthy life on earth and his inability to understand basic science,” co-founder Jeff Willis said.

“Less than a year on, we’re pleased to see people from more than 30 countries have joined our protest in planting trees to offset his ignorance — but we’re sad to say Trump’s record on climate change is as bad as ever.”

The scientists believe that to fully offset the additional carbon dioxide in the atmosphere would require an estimated 10 billion trees, and cover an area the size of the US state of Kentucky.

“Under Trump, the US has pushed itself further away from the international community’s collective efforts in finally taking meaningful action on the greatest health threat humanity faces,” said Dr Dan Price, a climate scientist.

“His attitude is dangerous and the time we are wasting will come at a cost. By delaying action, we are letting generations foot the bill tomorrow for the recklessness of people responsible today. We are gambling with the planetary life support system and that should make everybody nervous.”

Trees have been pledged by people from over 30 countries.

Photo: Gage Skidmore

The UK Government has lost its third court case on tackling air pollution when a High Court judge today ruled its current plans as “seriously flawed” and “unlawful”.

Mr Justice Garnham said the government had not done enough to require 45 local authorities in the UK to meet legal limits to reduce air pollution in their areas.

“The environment secretary must ensure that, in each of the 45 areas, steps are taken to achieve compliance as soon as possible, by the quickest route possible and by a means that makes that outcome likely”, he said.

It is expected these areas won’t meet their legal requirements to prevent toxic air pollutants until 2021.

The case was the third win in a row from legal activists ClientEarth, which have been doggedly pursuing the government for years to address the issue. Climate Action reported on the initial proceedings of the case last month, which covers authorities in both England and Wales.

Speaking outside of the court, ClientEarth lawyer Anna Heslop said: “For the third time in the space of three years, the courts have declared that the government is failing in its obligation to clean up the air in our towns and cities.

“We are delighted that the court has today ordered the government to urgently take further action to fix the dangerous air pollution in our towns and cities.

“The problem was supposed to be cleaned up over eight years ago, and yet successive governments have failed to do enough”.

In reaction to the verdict Jenny Bates, air pollution campaigner at Friends of the Earth, said: “We’re seeing too little, too late from the government, and as a result people across the country will continue suffering unnecessarily. Levels of air pollution are illegally high in areas right across the country and air pollution is responsible for tens of thousands of early deaths a year in the UK".

Today’s result also means that Welsh Ministers will also have to produce a plan to comprehensive plan to combat air pollution by the end of July.

Photo: Bruno Abatti

BP has published its yearly forecast for the global energy market this week, and the oil giant sees renewable energy playing a commanding role in the future.

By 2040, if current trends continue then renewables will grow by 400 percent of their current amount, but still only account for 14 percent of all global energy demand.

This expansion will be led by China, which could continue its dominance in the market, followed by other developing countries, including India.

BP sees this strong growth as being enabled by the steep decreases in cost seen primarily by wind and solar. As subsidies are phased-out by the mid-2020s, renewable energy will “be able to compete against other fuels”.

However, this view is not in keeping with other scenarios which show that wind and solar are already cost-competitive with fossil fuels.

Elsewhere, the Energy Outlook sees a continued increase in energy demand, led again by China and India, but that improvements in efficiency will help dampen this down.

More worryingly, the Outlook sees carbon emissions rising by 10 percent out to 2040. Although this is slower than in the past it remains insufficient to meet the goals of the Paris climate Agreement.  

Bob Dudley, the group’s chief executive commented that “We need a far more decisive break from the past” to limit warming to below 2 degrees.

“In BP, we continue to believe that carbon pricing must be a key element as it provides incentives for everyone to play their part – from consumers using energy more efficiently to producers providing more low-carbon forms of energy.”

Spencer Dale, BP’s chief economist, said that growing competition is helping to create “the most diverse fuels mix we have ever seen”.

“By 2040, oil, gas, coal and non-fossil fuels each account for around a quarter of the world’s energy. More than 40 percent of the overall increase in energy demand is met by renewable energy”.

“We are seeing growing competition between different energy sources, driven by abundant energy supplies, and continued improvements in energy efficiency”, he concluded.

The UK’s electricity sector is continuing to change at an astonishing rate with fossil fuels in decline, while renewable energy tops new heights.

Official National Grid statistics show that carbon emissions in the power sector fell by 12 percent in 2017, while renewable energy’s output grew by 27 percent.

All renewable technologies, consisting of biomass, hydro, solar and wind, now provide 25 percent of all Britain’s electricity. This would be sufficient to power the entire country 60 years ago.

Imperial College London, which helped compile the report with Drax Power, estimates the carbon savings are the equivalent of removing one in seven cars from the road.

Dr Iain Staffell, from Imperial College London, said that: “The share of fossil fuels on the system has fallen from 80 percent to 50 percent since 2010 and the effect that shift in the balance of power is having in terms of lowering our carbon emissions is striking”.

An increase in wind energy capacity and a decline in coal-fired power plants are largely responsible for the reversal in fortunes. Wind farms produced 45 terawatt hours (TWh) in 2017, a record 15 percent of Britain’s electricity, and more than twice the output from coal. This was helped by new giant offshore wind farms coming online off Britain’s coasts and onshore wind having a record year for deployment.

Andy Koss, Drax Power’s CEO said: “This report shows the great progress we have made in terms of decarbonising the energy sector. We can expect more days without coal on the system as we gear up to the UK coming off coal in 2025 and we are proud of the work that we have done to support this as the largest decarbonisation project in Europe”.

Luke Clark, Head of External Affairs at the trade body RenewableUK, also commented on the good news: “These figures underline that renewables are central to our changing power system…Alongside breaking multiple records for peak output, wind energy continued to cut costs”

Source: Drax Power/Imperial College London

IKEA has decided to enter the energy market and is claiming it can save people £300 on their energy bill.

The Swedish furniture giant is joining the ‘Big Clean Switch’ campaign, a UK initiative which helps customers source 100 percent of their electricity needs from renewable sources.    

The £300 saving is based on what the majority of UK consumers pay for a Standard Variable Tariff with a ‘Big Six’ energy supplier, compared with the current cheapest renewables tariff through the Big Clean Switch website.

Hege Sæbjørnsen, Sustainability Manager at IKEA UK, said, “By partnering with the Big Clean Switch, we hope to make switching to renewable electricity simple, accessible and affordable to everyone.”

“We want to provide our customers with innovative solutions that will help them live a more sustainable life at home and save money in the short and long-term”, he added.

IKEA will receive a commission payment for every person that switches, which is ring-fenced for local community projects.

Jon Fletcher, Campaign Director at Big Clean Switch, commented: “We want to give as many people as possible the opportunity to switch to renewable electricity and our partnership with IKEA is a big step forward in helping more people achieve this. Every person who makes the switch plays a vital role in taking the necessary action to help reduce the impact of climate change”

The move forms part of IKEA’s global sustainability ambitions, which includes a pledge to produce 100 percent renewable energy across its entire operations by 2020.

Hege continued: “Last year in the UK, we generated renewable energy equivalent to 41 percent of the energy we used. We have also installed solar panels on all new stores and the majority of our existing stores as part of our investment in renewables”.

Photo Credit: IKEA

  • Lack of an efficient and reliable T&D infrastructure that can handle the kind of solar power being injected into the grid poses a major challenge in the way of realising the country’s solar potential

As the Asset Management Services provider for hundreds of solar PV and energy storage systems, we’ve seen just about everything.

» Climate Leadership Conference Navigant Research
February 28, 2018 6:00 pm to March 2, 2018 6:00 pm


Denver, Colorado

Matthew Banks, associate director at Navigant, will be in attendance. To schedule a meeting at this event, 

The annual brings together influential climate, energy, and sustainability professionals from around the globe to address climate change through policy, innovation, and business solutions. Join us for the 7th event to collaborate with an unparalleled group of experts and thought leaders, learn about cutting-edge carbon and energy practices, and navigate the climate policy landscape. for more information or to register.

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A perfect storm of enabling technologies, ubiquitous connectivity, end-user devices, and new applications will result in both threats and opportunities to the traditional utility model

A new white paper from explores the concept of the Neural Grid, identifying the critical components expected to transform legacy infrastructure into a platform that will eventually support a fully mature Energy Cloud environment.

Today’s smart grid enhances the traditional transmission and distribution (T&D) network with pockets of automation, connectivity, and centralized IT systems. But the grid of tomorrow, the Neural Grid, represents much more than Smart Grid 2.0. : According to a new report from , the Neural Grid is a vastly more powerful platform of hard and soft assets leveraging ubiquitous connectivity, the cloud, robotics, artificial intelligence (AI), edge computing, and pervasive sensing to perform a variety of energy and non-energy applications.

“In a nutshell, the Neural Grid takes the world’s largest machine—the grid—and gives it a brain,” says Richelle Elberg, principal research analyst with Navigant Research. “In this environment, data and intelligence reside largely in the cloud, managing the intersection of generation assets and distribution networks with energy customers, buildings, transportation infrastructure, city systems, distributed energy resources assets and more.”

In addition, asset ownership in the Neural Grid is diverse, and utility grid data and assets work with third-party data and assets to coordinate energy supply and demand. As the Neural Grid takes shape, the challenge for owners of legacy infrastructure will be to upgrade their networks with dynamic, intelligent, and autonomous features that enable more than the transport of electrons, supporting an open environment for new services creation.

The white paper, , defines the Neural Grid and identifies critical components of the ecosystem. It describes the conditions necessary for accelerated market expansion and highlights informative parallels which can be found in the telecom industry. Navigant Research also identifies the top five growth markets that stand to benefit as the smart grid investments of today transform into the Neural Grid market of the future. The white paper is available for free download on the .

Contact: Lindsay Funicello-Paul

+1.781.270.8456

* The information contained in this press release concerning the report, From Smart Grid to Neural Grid, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

"With Recent Advancements In Energy Storage Technology, How Will Indian Solar Sector Shape Up?"

While combined heat and power was the leading distributed energy resources choice for microgrids in 2017, solar is expected to lead by 2026

A new report from examines the market for microgrid enabling technologies (MET), providing global forecasts for capacity and revenue, segmented by technology and region, through 2026.

As one of many options to aggregate and optimize growing penetrations of distributed energy resources (DER), the microgrid platform allows for new levels of resilience and reliability, and can help organize mixed asset fleets of DER at the distribution network level. With the right set of control technologies, this platform can not only offer value streams to site hosts, but also provide value upstream to the larger grid. : According to a new report from , global cumulative MET implementation spending is expected to reach nearly $112 billion by 2026.

“Microgrids represent a key component of an emerging Energy Cloud focused on resilience and renewable energy integration,” says Peter Asmus, principal research analyst with Navigant Research. “Biomass, combined heat and power (CHP), diesel, fuel cells, hydroelectric, solar PV, and wind represent the lion’s share of potential revenue for microgrid implementation spending, and serve as the backbone of the microgrid value proposition: maximizing the value of onsite power generation.”

From a global perspective, CHP was the leading DER choice for microgrids in terms of capacity in 2017, with 655 MW deployed, followed by solar PV (392 MW), and then diesel (385 MW). By 2026, however, the MET landscape is expected to shift, with solar PV jumping to a commanding lead with 3,786 MW annually, followed by energy storage with 3,292 MW, according to the report.

The report, , analyzes the global market for MET, with a focus on eight DER: biomass, CHP, diesel, energy storage, fuel cells, hydroelectric, solar PV, and wind. The study provides an analysis of the market issues, including case studies, government incentives, and emerging standards, associated with MET. Global market forecasts for capacity and revenue, segmented by technology and region, extend through 2026. The report also examines the key technologies and hardware related to MET, as well as the competitive landscape. An Executive Summary of the report is available for free download on the .

Contact: Lindsay Funicello-Paul

+1.781.270.8456

* The information contained in this press release concerning the report, Microgrid Enabling Technologies Market Overview, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

The biggest story in the global power sector is without doubt the rise of renewables, particularly the surge in wind and solar power deployment. Wind and solar capacity is ten-fold what it was a decade ago. Every few weeks seems to bring a new milestone, whether it’s a record low bid in an auction for new solar power or a record high level of generation from renewable sources.  

The momentum behind renewables is very high, pointing to a virtuous circle of deployment that spurs innovation, cost reductions and job creation, which in turn allows for more deployment. But the source of this momentum needs to be well understood. In many cases, support policies and frameworks are giving renewables a strong push – globally, the IEA estimates that USD 750 billion in economic incentives have been provided to renewables over the past decade. While falling costs are reducing the need for financial incentives, policies are still essential to set the necessary conditions for growth.

Take solar PV. Recent auction results show that solar PV projects are offering impressively low prices – as low as 3 cents/kWh – in places where the resources are abundant and low-cost financing is available. But the fact remains that still only a small fraction of solar power is currently fully competitive without support. So, while solar made up one-quarter of all global capacity additions in 2016, nearly all of this growth relied on some form of government incentive.

Changes in policy have created boom-and-bust cycles in some markets, as investors respond to incentives when they are available, but then back off when the policies are weakened or withdrawn. In Italy, additions of solar capacity totaled 9.5 GW in 2011, but were already down by 85% two years later. A similar story occurred in 2009 and 2013 for onshore wind in the United States. 

In China, the champion of global renewables, a planned cut in the feed-in tariff meant that deployment of wind fell sharply in 2016 compared with one year earlier. One of the big unanswered questions this year is whether something similar is in store for the Chinese solar market, which more than doubled in size in 2016. Another key question is how fast India and other countries can scale up their deployment of solar? Both depend on policy makers.

Policy changes are reflected in IEA scenarios

This contingency on policy is reflected in IEA analysis of the outlook for renewables. Each year, the World Energy Outlook produces new projections for all fuels and technologies, in different scenarios out to 2040. The main scenario, called the New Policies Scenario, is designed to show where existing policies as well as announced policy intentions will lead the energy sector. As policies change, so the projections change as well. For technologies like solar PV that rely on policy support, shifts in policy matter a great deal. The result of increased policy ambitions is clear in the latest WEO, where renewables account for 60% of all new power generation capacity additions globally over the next 25 years in the New Policies Scenario.

Back in 2008, China’s official solar target  was 1.8 GW of capacity by 2020, a number that was reflected in the WEO projection in the New Policies Scenario. But, by 2014, Chinese policy had become significantly more ambitious and the target for solar had been raised to  100 GW by 2020. These changes were reflected each year in the WEO’s New Policies Scenario.

Indeed, IEA scenarios are not forecasts and should not be treated as such. They do not present outcomes that are necessarily desirable or recommended. Rather, they are designed to help policy-makers, governments and industry understand how energy policy choices will affect the energy future on the horizon.

In many countries, solar PV and onshore wind are within sight of full competitiveness and can stand on their own two feet –  i.e. investments can be justified based on market revenues alone without the need for additional subsidy. This is a critically important step that was analysed in detail in the WEO 2016 Special Focus on Renewables.

But cost reductions for wind and solar, on their own, are still not enough to deliver the rapid decarbonisation of the power sector. Policies do still matter – market design and structural changes to the power system will be essential to ensure adequate returns for investment and to integrate higher shares of variable wind and solar power.

To better understand the gap between what government are doing and what needs to be done, the IEA also provides a long-term decarbonisation scenario that describes an energy pathway that would be in line with limiting the average global temperature increase in 2100 to 2°C above pre-industrial levels, a target that is a widely recognized benchmark utilised in global climate talks. Under that scenario, known as the 450 Scenario, wind and solar grow by 50% more than in the main scenario.‌

The rise of renewables also has profound implications for global energy security, air quality, access to electricity and economic development. Over the years, the WEO has delivered a consistent message: good policies matter for the continued success of renewables.  Policymakers need to step up their efforts in this area.

Courtesy International Energy Agency

New solar PV capacity grew by 50% last year, with China accounting for almost half of the global expansion, according to the International Energy Agency’s latest renewables market analysis and forecast. For the first time, solar PV additions rose faster than any other fuel, surpassing the net growth in coal.

Boosted by a strong solar PV market, renewables accounted for almost two-thirds of net new power capacity around the world last year, with almost 165 gigawatts (GW) coming online, according to the new report, Renewables 2017. Renewables will continue to have a strong growth in coming years. By 2022, renewable electricity capacity should increase by 43%.

“We see renewables growing by about 1,000 GW by 2022, which equals about half of the current global capacity in coal power, which took 80 years to build,” said Dr Fatih Birol, the executive director of the IEA. “What we are witnessing is the birth of a new era in solar PV. We expect that solar PV capacity growth will be higher than any other renewable technology through 2022.”

This year’s renewable forecastis 12% higher than last year, thanks mostly to solar PV upward revisions in China and India. Three countries – China, India and the United States – will account for two-thirds of global renewable expansion by 2022. Total solar PV capacity by then would exceed the combined total power capacities of India and Japan today.

In power generation, renewable electricity is expected to grow by more than a third by 2022 to over 8,000 terawatt hours, which is equivalent to the total power consumption of China, India and Germany combined. By then, renewables will account for 30% of power generation, up from 24% in 2016. The growth in renewable generation will be twice as large as that of gas and coal combined. Though coal remains the largest source of electricity generation in 2022, renewables close the generation gap with coal by half in just five years.

The deployment in solar PV and wind last year was accompanied by record-low auction prices, which fell as low as 3 cents per kwh (or kilowatt hour). Low announced prices for solar and wind were recorded in a variety of places, such as India, the United Arab Emirates, Mexico and Chile. These announced contract prices for solar PV and wind power purchase agreements are increasingly comparable or lower than generation cost of newly built gas and coal power plants.

China remains the undisputed leader of renewable electricity capacity expansion over the forecast period with over 360 GW of capacity coming online, or 40% of the global total. China’s renewables growth is largely driven by concerns about air pollution and capacity targets that were outlined in the country’s 13th five-year plan to 2020. In fact, China already exceeded its 2020 solar PV target three years ahead of time and is set to achieve its onshore wind target in 2019. Still, the growing cost of renewable subsidies and grid integration issues remain two important challenges to further expansion.

Under an accelerated case – where government policy lifts barriers to growth – IEA analysis finds that renewable capacity growth could be boosted by another 30%, totalling an extra 1,150 GW by 2022 led by China. Solar PV and wind capacity in China could by then reach twice the totalpower capacity of Japan today.

India’s move to address the financial health of its utilities and tackle grid-integration issues drive a more optimistic forecast. By 2022, India renewable capacity will more than double. This growth is enough to overtake renewable expansion in the European Union for the first time. Solar PV and wind together represent 90% of India’s capacity growth as auctions yielded some of the world’s lowest prices for both technologies.

Despite policy uncertainties at the federal level, the United States remains the second-largest growth market for renewables. The main drivers for onshore wind and solar – such as multi-year federal tax incentives combined with renewable portfolio standards as well as state-level policies for distributed solar PV – remain strong. Still, the current uncertainty over proposed federal tax reforms, international trade and energy policies could alter the economic attractiveness of renewables and hamper their growth over our forecast period.

The report also provides detailed analysis on the renewable consumption of electric cars and off-grid solar deployment in Africa and developing Asia. Off-grid capacity in these regions will more than triple reaching over 3 000 MW in 2022 from industrial applications, solar home systems (SHSs) and mini-grids driven by government electrification programmes and private sector initiatives. While this represents less than 5% of total PV capacity installed in both regions, the economic impact is nonetheless significant, and brings basic electricity services to almost 70 million more people in developing Asia and sub-Saharan Africa in the next five years.

Power consumption of EVs – including cars, two- and-three wheelers and buses – is expected to double over the next five years, with renewable electricity estimated to represent almost 30% of their consumption by 2022, up from 26% today. EVs play a complementary role to biofuels, which represent 80% of growth in renewable energy consumption in transport. However, the share of renewables in total road transport energy consumption remains limited, increasing only from 4% in 2016 to almost 5% in 2022.

Courtesy International Energy Agency

Behind-the-meter distributed energy storage systems that provide uninterruptible power supply service to non-mission critical operations benefit utilities and facility managers

A new report from analyzes the market for distributed energy storage systems with uninterruptible power supply (UPS) capabilities for non-mission critical operations (UPSX), providing an overview of market issues and revenue forecasts through 2026.

Historically, the high costs of UPS systems have made commercial and industrial (C&I) facility managers with non-mission critical operations hesitant to invest in the resiliency technology. Today, a new UPS application, UPSX, is emerging that leverages behind-the-meter (BTM) C&I distributed energy storage system (DESS) technology to provide grid ancillary services to utilities and competitive markets, as well as electrical demand charge reduction and resiliency to C&I facility managers. : According to a new report from , the annual global market for the deployment of UPS service from distributed energy storage is expected to reach $2.7 billion by 2026.

“Many C&I facilities with non-mission critical operations view electrical service outages as an unmanageable cost of doing business due to the high costs of traditional UPS service systems,” says William Tokash, senior research analyst with Navigant Research. “Navigant Research anticipates the emergence of a new UPS service option for this sector will leverage DESS and financing innovation to address this unmet need.”

According to the report, stakeholders now focused on the DESS applications market will begin to add UPS system capabilities to the design and operation of their DESSs. In turn, these UPSX capabilities will begin to address the unmet electrical outage mitigation needs of C&I customers in non-mission critical sectors, while offering an improved business case, increased grid reliability, and financing innovation.

The report, , examines the drivers, barriers, and regional trends affecting the deployment of UPSX. The study provides an analysis of the market issues, including drivers, barriers, and geographic trends, associated with UPSX solutions. Global market forecasts for UPSX revenue, segmented by region, building type, and technology, extend through 2026. The report also examines the key technologies related to UPS systems, as well as the competitive landscape. An Executive Summary of the report is available for free download on the

Contact: Lindsay Funicello-Paul

+1.781.270.8456

* The information contained in this press release concerning the report, Advanced Energy Storage for UPS Applications, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Genset vendors are embracing new value streams to provide added value to customers and to compete against falling prices of solar and energy storage

A new report from examines the global market for diesel and natural gas reciprocating generator sets (gensets), providing an analysis of key market developments and issues, with global forecasts that extend through 2026.

As the global power equation shifts toward generation that is more distributed, intelligent, and interconnected, smart features are being incorporated into gensets at a growing pace. Customers are now demanding advanced features like enhanced maintenance, microgrid interactivity, and demand response, enabled by advances in control technologies and the increasingly ubiquitous connectivity of devices in the Energy Cloud. : According to a new report from , the market for smart gensets is expected to surpass $18.5 billion in annual revenue by 2026 at a compound annual growth rate (CAGR) of 10.5 percent.

“Gensets are gaining a surge of smart features, thanks to improved controls and software, and demands from customers that they provide more services,” says Adam Forni, senior research analyst at Navigant Research. “While many older gensets just waited for the grid to go down, smart gensets are increasingly interactive—with human operators, with other DER, and with the grid itself.”

Customers adopt smart gensets for a variety of applications, but some common project characteristics include critical loads, remote sites, sophisticated customers, higher fuel costs, and larger and more complex projects. According to the report, genset vendors and controller and software companies are embracing these value streams, both to provide added value to customers and to compete against the falling prices of alternative energy resources like solar and storage.

The report, , analyzes the global market for diesel and natural gas reciprocating gensets for six segments: residential; commercial and industrial (C&I) standby; C&I prime and continuous; C&I combined heat and power (CHP); utility; and resource extraction. The study provides an analysis of key market developments and issues, with a focus on three key smart genset applications (operator-interactive, microgrid-interactive, and grid-interactive). Global market forecasts, broken out by segment, country, and region, extend through 2026. The report also examines the main technologies related to smart gensets, as well as the competitive landscape. An Executive Summary of the report is available for free download on the .

Contact: Lindsay Funicello-Paul

+1.781.270.8456

* The information contained in this press release concerning the report, Smart Gensets is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Growing demand for space cooling and interest in net zero energy buildings are driving regional uptake of energy efficient building solutions

A new report from examines the market for energy efficient building technologies in Asia Pacific, providing market forecasts for products and services, segmented by eight commercial building types, and by new construction and retrofit spending, through 2026.

In Asia Pacific, energy consumption in buildings is expected to continue to grow rapidly, spurred by high economic growth and the increasing demand for cooling in warm climate regions. At the same time, as the focus on energy efficiency increases, most governments in the region have taken energy efficiency into serious consideration, pursuing green building certificate programs, a growing interest in net zero energy (ZNE) buildings, and the digital revolution of energy efficiency solutions. : According to a new report from , energy efficient buildings market revenue in Asia Pacific is expected to grow from $65.3 billion in 2017 to $111.3 billion in 2026.

“There is a growing demand for space cooling, as well as interest in ZNE buildings in Asia Pacific,” says Christina Jung, research analyst at Navigant Research. “Together, these two trends are driving the uptake of energy efficient building technologies, particularly in the region’s two most rapidly growing economies, China and India.”

While existing technologies can save more than two-thirds of major end-use energy consumption in buildings, two-thirds of global building energy use is still not subject to minimum energy performance standards. According to the report, this signals a vast potential market for building energy efficiency solutions providers in Asia Pacific and beyond.

The report, , analyzes the market for energy efficient building technologies in Asia Pacific. The study focuses on seven product types (HVAC, lighting, building controls, water efficiency, water heating, building envelope, and other) and two service types (commissioning and installation). Market forecasts, which are also segmented by eight commercial building types and by new construction and retrofit spending, extend through 2026. The report also provides an analysis of the market dynamics, including market drivers and hurdles, opportunities, and unique programs that are helping to extend and broaden commercial building efficiency throughout Asia Pacific. An Executive Summary of the report is available for free download on the .

Contact: Lindsay Funicello-Paul

+1.781.270.8456

* The information contained in this press release concerning the report, Market Data: Energy Efficient Buildings Asia Pacific, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Technology improvements and cost reductions are anticipated to continue driving installations

A new report from offers a country-level analysis of all offshore wind markets, including related policies, incentives, and regulatory environments, wind turbine market shares by country, and global market forecasts for offshore wind power capacity, segmented by project status and country.

Offshore wind continues to be an abundant clean energy solution for many coastal load centers where a greater proportion of population and energy demand is located. In addition, the resource is becoming more cost-effective with each competitive tender in Europe, with industry-leading countries such as the UK, the Netherlands, Denmark, Germany, and Belgium well into a transition phase to market-oriented policies that drive project costs down. : According to a new report from , the global wind industry installed an estimated 3.3 GW of new offshore capacity in 2017, bringing the global cumulative total to almost 17 GW.

“While the onshore wind market is larger in terms of total megawatt plant capacity added annually, offshore wind is growing more quickly,” says Jesse Broehl, senior research analyst at Navigant Research. “It is forecast to grow at an 11.1 percent compound annual growth rate between 2017 and 2022, compared to single-digit growth rates for onshore wind.”

Contributing to this forecast is a substantial 7.9 GW in varying levels of construction, primarily in Europe but also increasingly in China, according to the report. Other factors driving the market include technology improvements, such as an increase in turbine blade rotor diameters exceeding 160 meters, and cost reduction strategies in power-purchase agreements and other pricing metrics.

The report, , provides a country-level analysis of all offshore wind markets, including related policies, incentives, and regulatory environments. The study assesses global wind project construction and advanced development underway. Global market forecasts for offshore wind power capacity are segmented by project status and country. Turbine vendor data is provided, including global market shares and more granular installed capacity by country and by wind turbine vendor. Also detailed are average rotor diameters and turbine nameplate ratings by installed year, along with the market share diversification of offshore foundation types. An Executive Summary of the report is available for free download on the .

Contact: Lindsay Funicello-Paul

+1.781.270.8456

* The information contained in this press release concerning the report, Offshore Wind Market and Project Assessment 2017, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

"With Recent Advancements In Energy Storage Technology, How Will Indian Solar Sector Shape Up?"

Pg18 Perspective Sujoy Ghosh Country Head First Solar India

Mr.Sujoy Ghosh, Country Head, First Solar, India

2017 is shaping up to be a record year for solar PV installations worldwide as well as in India. We have also witnessed sub 2cents/kwhr tariffs in auctions in Saudi Arabia and Mexico for projects that are expected to be commissioned over the next 24-30 months, thereby creating a further compression in the overall value chain that needs to be met by equipment suppliers, financing agencies and the service providers (engineering, procurement and O&M).  Hence the companies that continue to focus on reducing costs, increasing scale and lowering their cost of capital/cost of doing business would be able to sustain through these times. Specifically on the PV module technology, the focus would remain on lowering of cost of production by either optimizing manufacturing processes, and/ or leveraging economies of scale. Also with the transition to more installations between the two tropics, there would be equal focus on long term reliability under harsher climates (hot and humid) and quality and consistency of processes would be under increased scrutiny from the end users. 1500V inverters would probably increase their market share as plant owners try to exploit every ounce of optimization feasible in order to achieve lower LCOE’s, while the scale of the blocks increase due to average increase in project capacities. 2018 would also see a an increased focus on hybridization of PV systems with storage or other forms of generation as grid capacity congestion issues begin to start becoming noticeable with the growth in both solar and wind in the recent past.

Pg18 George John mytrah

Mr. George John,Head -Mytrah Global Services,Mytrah Energy

Reverse bidding has become a norm in the renewable energy sector. The low tariffs especially pertaining to Solar sector can be attributed to the decreasing cost of solar modules due to advancement in technology. However, it is noteworthy that even today, most of our capacity comes
from Chinese manufacturers. The heavy emphasis by the government on ‘Make In India’ initiative is expected to drive the domestic manufacturers into building capacities to compete with the Chinese manufacturers. This would increase the self-reliance of the Solar sector by reducing dependencies.Intermittence in energy supply has been an age-old characteristic of renewable energy sector. Although Solar provides a more predictive forecast based on seasonality and time of the day, the power generation remains intermittent. The increasing global awareness on Battery storage and the technological innovations in this sector is bound to impact the Solar sector in the coming year. A successful breakthrough in terms of balancing the capacities and cost will make Solar sector more profitable in future. With Global companies such as Tesla overlooking Battery Storage innovations,this future might not be too far away.From an investment standpoint, Rooftop Solar has gained momentum and this trend is expected to continue into 2018. Rooftop Solar has seen investment from small scale investors as well, since it provides energy security coupled with government incentives.Another interesting trend we expect to see in Solar sector, especially in the near future, is the rise of smart grid solutions and Hybrid models using both wind and solar power generation. The increasing use of digitalization has already reached the Solar sector and we expect to see increased efficiencies because of this.In conclusion, 2018 will be an interesting year for Solar sector from supply chain point of view as well the enhanced efficiencies.

Pg17 Perspective SIndicatum

Mr. Devin Narang Country Head-India Sindicatum Renewable Energy Company.

Globally, India has probably the most robust policies in place for all forms of Renewable energy. What can be expected in 2018 borrows heavily from the initiatives the Government has in store for the sector. Specific targets and a well-defined roadmap to achieving them are encouraging. Addition of power generation capacity – especially through solar parks; building of domestic manufacturing capacities; refinements in Solar Policy (for utility scale & rooftop systems) and Bid Document – in particular, with regard to applicable duties and taxes; resolution of State-specific project development bottlenecks; and enhanced bankability of projects -  these are some initiatives in the offing by the Government. Technology, on the other hand has also grown steadily, reflecting in increased component efficiencies at competitive prices. However, with regard to PV modules, prices are expected to pick up from the lows seen hitherto while stabilizing at the optimum. Although the Indian market is nascent when it comes to Storage, it would be interesting to see how solar projects combined with storage sustain in the long run. Finally, two (interconnected) aspects that need concerted initiative from different stakeholders are: creation of energy demand and ensured energy offtake. Schemes such as ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ (DDUGJY) and ‘Ujwal Discom Assurance Yojana’ (UDAY) have been important enabling factors from a macro perspective. Such developments have spurred growth in the sector – which stands at 15GW plus installed capacity on date. The achievement of 100GW of solar isn’t far.

Deployment of utility-scale Renewable Energy, particularly Wind and Solar Power, has progressed rapidly over the last few years despite recent challenges.

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Mr. Vivek Mishra Executive Director Meghraj Capital Advisors Private Limited
 
I foresee Solar attracting maximum investment in the next five years. Solar is the thrust area for GOI for achieving RE targets. The Ecosystem required for its growth has been put in place. The project risks and their mitigation strategies are known.  Solar because of viable tariffs and matured technology has attracted the interest of investors.  
 
The Government of India has set a renewable energy target of 175 GW to be achieved by 2022 of which solar will contribute 100 MW. India’s RE capacity at the end of FY17 was about 57 GW with wind contributing more than half of it, but Solar is gaining ground steadily. If the RE target has to be achieved, the current RE capacity has to triple in the remaining five years. As expected, major capacity contribution has to come from Solar (both IPP and rooftop), where the capacity has to increase at least nine times. In order to facilitate this, Government has put in place conducive policies & programmes (Eg. Solar Park and JNNSM), introduced infrastructure initiatives such as Green Corridors for evacuation from solar rich regions, created a demand push through increased solar RPO (from 2.5% to 8%) for obligated entities, promotion of solar pumps and other solar products, created capacity through Surya Mitra Program and facilitated development of indigenous manufacturing capability through Make in India and push to solar R&D. Government has exempted solar projects from environmental clearances and has facilitated the acquisition of land through Solar Parks. So far 34 Solar Parks in 21 states with a total capacity of 20,000 MW have received in-principle approval under Phase I of the initiative and under Phase II additional 20,000 MW has been approved.
 
Solar rooftop is attractive for Commercial and Industrial consumers as their retail tariffs are considerably higher than the cost of generation in most of the states. These consumers have added significant capacity under capex model. For residential consumers the payback period is still high; however, in future as retail tariffs increase, the solar rooftop will be an attractive proposition for them as well. 
 
It has been estimated that Solar will require investment of around INR 4800 billion, if it has to achieve the target. Fortunately the ever decreasing generation cost, established technology and growing demand has attracted strategic and financial investors, venture capitalists, private equity and pension funds. This has led to flow of investment and adoption of low cost financial innovations such as green bonds.  The solar industry is expected to mature with consolidation and see emergence of professionally managed relatively firms.
 
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Mr. Rahul Goswami, Managing Director, Greenstone Investment Bank
 
Greenstone expects utility scale solar and wind projects to continue to dominate the renewable energy investment sector in India over the next five years. We believe this will be driven by a number of factors:
 
First, the cost of electricity from solar and wind projects has achieved grid parity and the long-term trend suggests that costs will continue to decline. Consequently, we do expect substantial tenders for additional capacity and for utilities to increase their focus on integration and management. 
 
Second, there is substantial existing capital available to fund projects. Several established platforms have sufficient capital lient the appetite to grow substantially. Additionally, the sector continues to witness increasing interest from international groups. 
 
Third, transmission capacity is sufficient to absorb an additional 10 GW+ of intermittent generation based on feedback from industry consultants. Consequently, assuming the other areas can be appropriately managed (such as land acquisition), we do not see significant near term transmission hurdles for renewable energy. 
 
Ultimately, the utility scale renewable energy markets have matured substantially and our expectation is that robust capacity addition will continue over the next five years. 
 

Developers face varied challenges in building and managing a rooftop solar asset portfolio and some of the key challenges have been highlighted below.

Issuances of bonds, non-convertible debentures (NCDs) included have been witnessing record volumes for past 3 years.

Impact Of GST On Solar Sector

Key Driving factors for falling bids in india

“A road map has been laid out to set up at least 50 solar parks, each capacity of 500 MW. How do you think the solar parks in India are shaping up?”

Ecoprogetti srl is the leading manufacturer of complete Turnkey Line for module manufacturing.

Growth Opportunities in the Indian PV Market & Requirement of Indian Module Companies

Battery Storage companies secure $714 million; Smart Grid companies bring in $422 million; and Energy Efficiency companies receive $384 million

Mercom Capital Group, llc, a global clean energy research and communications firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for 2017. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ42017

In 2017, a combined $1.5 billion was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, an increase from the $1.3 billion raised in 2016.

Battery Storage

In 2017, VC funding into Battery Storage companies almost doubled to $714 million raised in 30 deals from the $365 million raised in 38 deals in 2016, largely due to the $400 million Microvast deal. Total corporate funding, including debt and public market financing, rose to $890 million compared to $540 million in 2016. 

Energy Storage Downstream companies received the most funding with $68 million followed by Lithium-based Battery companies with $65 million.

The top VC funded companies included: Microvast Power Systems with $400 million, Battery Energy Storage Solutions (BESS) with $66 million, Forsee Power brought in $65 million, Advanced Microgrid Solutions (AMS) raised $34 million, and Primus Power raised $32 million.

Eighty-six VC investors participated in Battery Storage deals in 2017 compared to 62 in 2016.

In 2017, announced debt and public market financing for Battery Storage companies remained steady at $177 million raised in 12 deals compared to $175 million generated by eight deals in 2016.

Three project funds totaling $446 million were announced in the Battery Storage category in 2017, compared to $820 million raised in 2016 in seven deals.

Nine Battery Storage project funding deals were announced in 2017 totaling nearly $2.1 billion. By comparison, just $33 million was raised in four deals in 2016.

There were six M&A transactions in the Battery Storage category in 2017, of which only two disclosed transaction amounts. In 2016 there were 11 M&A transactions, three of which disclosed transaction amounts.

Smart Grid

VC funding in the Smart Grid sector rose to $422 million in 45 deals in 2017, compared to $389 million raised in 42 deals in 2016. Total corporate funding, including debt and public market financing, came to $1.2 billion compared to $613 million in 2016.

The top VC funded companies in 2017 were ChargePoint, which brought in $82 million and $43 million in two separate deals, Actility which received $75 million, Brilliant which secured $21 million, and Particle and Urjanet each raising $20 million.

Eighty-eight investors funded Smart Grid companies in 2017, compared to 82 in 2016. Top VC investors in 2017 included: ABB Technology Ventures, Braemar Energy Ventures, Chrysalix Venture Capital, Clean Energy Finance Corporation, Energy Impact Partners, EnerTech Capital, GE Ventures, innogy, National Grid, Obvious Ventures, and Siemens.

Smart Charging of plug-in hybrid electric vehicle (PHEV), vehicle-to-grid (V2G) companies, had the largest share of VC funding in 2017 with $155 million in 10 deals, followed by Demand Response companies with $94 million in four deals.

In 2017, five debt and public market financing deals totaling $774 million were announced, compared to $224 million raised in five deals in 2016. There were no IPOs announced for Smart Grid companies in 2017.

There were 27 M&A transactions recorded in the Smart Grid sector (just seven of these deals disclosed transaction amounts) in 2017 totaling $2.5 billion. In 2016 there were 15 transactions (four disclosed) for $2.4 billion. The top disclosed transaction was the $1.1 billion acquisition of Aclara by Hubbell.

Efficiency

VC funding for the Energy Efficiency sector fell to $384 million in 38 deals in 2017 compared to $528 million in 33 deals in 2016. Total corporate funding, including debt and public market financing, was $3.3 billion, compared to $3.8 billion in 2016.

The top VC funded companies were View, which raised $100 million, followed by Kinestral Technologies with $65 million, RENEW Energy Partners with $40 million, Power Survey and Equipment brought in $24 million, and Stack Lighting with $16 million.

Efficient Home/Building companies captured the most funding with $172 million in five deals in 2017. A total of 51 investors participated in funding deals in 2017 compared to 72 investors in 2016. Energy Impact Partners was the most active investor in 2017. 

In 2017, debt and public market financing announced by Energy Efficiency companies fell to $2.9 billion in 16 deals compared to the $3.2 billion raised in 16 deals in 2016. 2017 saw seven Property Accessed Clean Energy (PACE) financing deals bring in more than $1.6 billion compared to 12 deals that brought in $2.3 billion in 2016. 

There were two securitization deals in 2017 for nearly $581 million compared to nine securitization deals for $1.8 billion in 2016. Securitization deals have now exceeded $4.5 billion in 24 deals since 2014. 

M&A activity for the Efficiency sector in 2017 dropped to 10 transactions, three of which disclosed transaction amounts. In 2016, there were 14 M&A transactions with five that disclosed transaction amounts. 

The largest disclosed transaction was the $526 million acquisition of LEDvance by a Chinese consortium consisting of IDG Capital, MLS, and Yiwu. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ42017

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

# # #

Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2017. 

Total global corporate funding into the solar sector, including venture capital/private equity (VC), debt financing, and public market financing raised came to $12.8 billion, a 41 percent increase compared to the $9.1 billion raised in 2016.  

To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017

"A strong fourth quarter pushed overall funding higher in 2017. Higher installation levels around the world, the lack of threat to the solar investment tax credit, lower than expected tariff recommendation by U.S. ITC, strong debt financing activity, and over a billion dollars in securitization deals helped the solar industry have a much better year in terms of financial activity compared to 2016. After several challenging years, most of the solar securities were up in 2017 reflecting overall positive sentiments around the solar industry even as several Chinese manufacturers decided to go private. Of course, all this could change swiftly if President Trump decides to impose higher tariffs in the trade case," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. 

Global VC investments came to $1.6 billion in 99 deals in 2017, up 30 percent from the $1.3 billion raised by 78 deals in 2016 - led by several large private equity deals in India.  

Solar downstream companies accounted for 85 percent of total VC funding in 2017, bringing in $1.4 billion of the total $1.6 billion raised. Thin-film companies brought in $106 million while service providers raised $47 million. 

Investments in PV technology companies came to $40 million and Balance of Systems (BoS) companies raised $36 million. The concentrated solar power (CSP) category raised $8 million and the concentrator photovoltaics (CPV) category received $6 million. 

The top VC/PE deals reported in 2017 included a deal for $200 million signed by Lightsource Renewable Energy. ReNew Power also had two deals of $200 million each, followed by Greenko Energy Holdings which raised $155 million. Hero Future Energies raised $125 million and CleanMax Solar raised $100 million. Overall, five of the top six solar VC funding deals in 2017 came from India.

There were 162 VC/PE investors that participated in funding rounds in 2017, with eight involved in multiple rounds: Engie, Avista Development, DSM Venturing, InnoEnergy, Innogy, International Finance Corporation (IFC), Shell, and Techstars. 

Public market financing was flat in 2017 to $1.7 billion raised in 33 deals from $1.8 billion raised in 27 deals in 2016. Three IPOs were logged during the year that raised a combined total of $363 million for Canadian Solar Infrastructure Fund, New Energy Solar Fund, and Clenergy. 

Announced debt financing in 2017 surged to $9.5 billion compared to $6 billion in 2016. There were six securitization deals in 2017 totaling $1.3 billion. Securitization deals surpassed the $1 billion for the  year, a first. 

Large-scale project funding announced in 2017 reached a $14 billion raised in 167 deals, compared to $9.4 billion raised in 133 deals during 2016. A total of 161 investors funded about 20.5 GW of large-scale solar projects in 2017 compared to 5.9 GW funded by 153 investors in 2016. 

The top investors in large-scale projects included Clean Energy Finance Corporation (CEFC), which invested in 13 projects, followed by Santander with eight deals, and Commonwealth Bank of Australia and Siemens Financial Services with six deals each. 

$2.4 billion was raised by 16 residential and commercial solar project funds in 2017 which was down 50 percent compared to $4.9 billion raised by 30 funds in 2016. The top fundraisers were: Sunlight Financial, Sunnova, Solar Mosaic, SolarCity, and Spruce Finance. Since 2009, solar residential and commercial firms offering leases, PPAs, and loans have raised more than $24.8 billion in lease and loan funds. 

There were 71 corporate M&A transactions in the solar sector in 2017, up slightly from 68 transactions recorded in 2016. Solar downstream companies were involved in 51 of these transactions. Engie acquired three companies while BayWa, Brookfield Asset Management, Horizon Solar Power, Siva Power, Solar Spectrum, and Sonnedix acquired two companies each. The largest and the most notable transaction in 2017 was the $1.6 billion acquisition of FTP Power (sPower) by AES and Alberta Investment Management (AIMCo) from Fir Tree Partners.

Project acquisitions jumped up 67 percent as a record 228 large-scale solar projects with a combined capacity of more than 20.4 GW were acquired in 2017, compared to 2016 when 12.2 GW changed hands in 218 transactions. 

Mercom also tracked 187 large-scale project announcements across the globe that totaled 10.6 GW in Q4 2017 and 922 large-scale project announcements totaling 50.1 GW for all of 2017.

To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Smart Grid. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.

The prices attained in recent auctions are influenced by several factors

The importance of quality infrastructure across the solar value chain

Various Instruments For India’s Clean Energy Support Measures 

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Credits: IRENA REMap India Paper 2017

Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its latest quarterly report on funding and merger and acquisition (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors during the third quarter and first nine months of 2017. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ32017

Mercom found that, in the first nine months (9M) of 2017, $1.23 billion was raised by Battery Storage, Smart Grid, and Efficiency companies, up from $910 million raised in 9M 2016.

Battery Storage

In Q3 2017, VC funding for Battery Storage companies dropped to $83 million in seven deals compared to $422 million raised in 10 deals during Q2 2017. A year earlier, $30 million was raised in nine deals in Q3 2016. In 9M 2017, $563 million was raised in 25 deals compared to $209 million raised in 29 deals in 9M 2016. 

The top VC funded Battery Storage companies in Q3 2017 were: Advanced Microgrid Solutions, which raised $34 million from Energy Impact Partners, Southern Company, DBL Partners, GE Ventures, AGL Energy, Macquarie Capital, and former California Governor Arnold Schwarzenegger; Romeo Power, which raised $30 million; and Gridtential Energy, which secured $11 million from 1955 Capital, East Penn Manufacturing, Crown Battery Manufacturing, Leoch International, Power-Sonic, The Roda Group, and the company's chairman, Ray Kubis. 

In all, 16 investors participated in Battery Storage funding in Q3 2017 with Energy Storage Downstream companies raising the most. 

The third quarter saw two debt and public market financing deals in Battery Storage totaling $45 million compared to $107 million raised in seven deals in Q2 2017. In 9M 2017, $174 million was raised in 11 deals compared to six deals that brought in $120 million in 9M 2016. 

There was one M&A transaction involving a Battery Storage company in Q3 2017 compared to three M&A transactions in Q2 2017. In the first nine months of 2017, there were five transactions (two disclosed), down from nine transactions (two disclosed) in 9M 2016. Two Storage projects were also acquired in Q3 2017.

Smart Grid

VC funding for Smart Grid companies in Q3 2017 totaled $76 million in 14 deals, compared to $139 million raised in eight deals in Q2 2017. In a year-over-year (YoY) comparison, $11 million was raised in seven deals in Q3 2016. In 9M 2017, $380 million was raised in 36 deals compared to $343 million raised in the same number of deals in 9M 2016. 

Top VC funded Smart Grid companies included: Particle, which secured $20 million from Spark Capital, Qualcomm Ventures, and previous investors; INTEREL, which raised $11.9 million in funding from Jolt Capital; Roost, which received $10.4 million in funding from Aviva Ventures, Desjardins Insurance, and Fosun RZ Capital; Tritium, which secured $8 million from entrepreneur Brian Flannery; and Innowatts, which raised $6 million from Shell Technology Ventures, Iberdrola Ventures - Perseo, and Energy & Environment Investment. 

In all, 28 investors participated in Smart Grid VC funding rounds in Q3 2017, with SG Communications companies raising the most. 

A total of $11 million was raised in one debt financing deal in Q3 2017 compared to the $9 million raised in one deal in Q2 2017. In 9M 2017, $20 million was raised in two deals compared to $217 million raised in four deals in 9M 2016. 

There were six M&A transactions (two disclosed) in Q3 2017. In Q2 2017, there were six transactions (two disclosed). In 9M 2017, there were 19 transactions (five disclosed) compared to 13 transactions (four disclosed) in 9M 2016. 

Efficiency

VC funding raised by Energy Efficiency companies in Q3 2017 came to $47 million in eight deals compared to $29 million raised in six deals in Q2 2017. In a YoY comparison, $61 million was raised in five deals in Q3 2016. In the first nine months of 2017, $289 million was raised by Energy Efficiency companies in 28 deals compared to $358 million raised in the same number of deals in 9M 2016. 

The Top VC deals in the efficiency category included: Power Survey and Equipment, which received $24 million in funding from EnerTech Capital, Investissement Quebec, Cycle Capital Management, Fonds de solidarite FTQ, and BDC Capital; Corvi, which received a $10 million strategic investment from Hero Enterprise; and Deco Lighting, which secured $8 million in funding from Siena Funding. 

In all, nine investors participated in VC funding in Q3 2017. Within the sector, Efficiency Components companies brought in the most funding. 

Announced debt and public market financing for Energy Efficiency technologies plunged to $615 million in four deals in Q3 2017 compared to the $1.4 billion raised in six deals in Q2 2017. In 9M 2017, $2.3 billion was raised in 13 deals compared to the same amount raised in 11 deals in 9M 2016. 

There was one Property Accessed Clean Energy (PACE) financing deal in Q3 2017 for $205 million versus three deals in Q2 2017 that raised $668 million. In 9M 2017, $873 million was raised in four deals compared to the $1.3 billion raised in six deals in 9M 2016. 

There were two M&A transactions (one disclosed) involving Energy Efficiency companies in Q3 2017, up from just one undisclosed transaction in Q2 2017. For the first nine months of 2017, there were seven transactions (three disclosed), down from 12 transactions in 9M 2016 (four disclosed).

To get a copy of the report, visit: http://bit.ly/MercomSGQ32017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid, and Energy Efficiency and Solar and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

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VALUE CREATION IN THE PHOTOVOLTAIC SECTOR

Auctions in the power sector

Large-scale project funding crosses $10 billion in 9M 2017

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released a new report on funding and merger and acquisition (M&A) activity for the solar sector in the third quarter of 2017 and the first nine months of 2017.

To learn more about the report, visit: http://bit.ly/MercomSolarQ32017 

Total corporate funding (including venture capital funding, public market and debt financing) in the first nine months (9M) of 2017 was slightly lower compared to the same period in 2016, with about $7.1 billion raised compared to the $7.5 billion raised in 9M 2016. There were 143 deals in 9M of 2017 compared to 125 deals in the same period of 2016.

Looking at just Q3 2017 data, Mercom found that corporate funding in the solar sector grew 74 percent compared to Q2 2017, with $2.4 billion raised in 45 deals. In Q2 2017, $1.4 billion was raised in 37 deals. Year-over-year (YoY), funding in Q3 2017 was about 19 percent lower compared to the $3 billion raised in Q3 2016. 

“Debt financing activity outside of the United States helped bump up corporate funding in the third quarter as financing activity in the United States was muted ahead of the Suniva anti-dumping case decision,” commented Raj Prabhu, CEO of Mercom Capital Group. 

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 9M 2017 rose a slight seven percent to $985 million from $925 million raised during the same period in 2016, largely due to a strong first quarter in 2017.

In Q3 2017, VC funding for the solar sector doubled with $269 million raised in 23 deals compared to $128 million raised in the same number of deals during Q2 2017. Most of the VC funding raised in Q3 2017 (72 percent) went to solar downstream companies with $193 million in 13 deals. 

The Top VC deal in the third quarter of 2017 was the $100 million raised by Indian rooftop installer CleanMax Solar. It was followed by the $56 million raised by Singapore’s Sunseap Group, the $21 million secured by Sol Voltaics, and Ampt’s $15 million. Ubiquitous Energy also raised $15 million. A total of 35 investors participated in solar funding in the third quarter of 2017. 

Solar public market funding was approximately 12 percent lower compared to the first nine months of 2016, with $1 billion raised in 9M 2017 compared to $1.2 billion raised during the same period of 2016. Public market financing fell significantly in Q3 2017 with just $79 million in four deals, down from $473 million raised in six deals in Q2 2017. 

During the first nine months of 2017, debt financing activity accounted for $5.1 billion in 51 deals, which was almost six percent lower compared to the first nine months of 2016, when $5.4 billion was raised in 55 deals. In Q3 2017, announced debt financing rose steeply to $2.1 billion in 18 deals compared to the $798 million raised in eight deals during the second quarter of 2017. 

In the top debt deals, Greenko Energy Holdings raised $1 billion in green bonds in two separate deals, $650 million and $350 million. Cypress Creek Renewables also received $450 million from Temasek. 

Announced large-scale project funding in 9M 2017 crossed the $10 billion mark, with $10.2 billion raised for the development of 117 projects. For the third quarter of 2017 alone, announced large-scale project funding came in at more than $2.8 billion in 36 deals.

Announced residential and commercial solar funds totaled $2.2 billion in 9M 2017, which was lower by almost 35 percent when compared to the $3.4 billion raised during the same period of 2016. 

The first nine months of 2017 saw a total of 58 solar M&A transactions, compared to the 48 transactions seen in the same period (9M) of 2016. There were 18 solar M&A transactions in Q3 2017, up from 11 solar M&A transactions seen in the preceding quarter (Q2 2017) and equal to the number of transactions (18) posted in Q3 2016. Of the 18 total transactions in Q3 2017, 13 involved solar downstream companies, three involved PV manufacturers, and there was one transaction each by a BOS company and an Equipment provider. 

There were 161 large-scale project acquisitions in first nine months of 2017 aggregating over 14.6 GW, compared to 145 project acquisitions totaling just 7.1 GW during the same period of 2016.

Similar to Q2 2017, investment firms and funds were the most active acquirers in Q3 2017, with 26 projects for over 2 GW, followed by project developers with 16 transactions totaling over 1.1 GW. 

Mercom tracked 296 new large-scale project announcements worldwide in Q3 2017 totaling 15.7 GW. 

To learn more about the report, visit: http://bit.ly/MercomSolarQ32017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Battery Storage, Smart Grid, & Efficiency. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.

REQUIREMENTS FOR SOLAR PV DEVELOPMENT

Presently, the unutilized roofs for roof top plant, barren and low vegetation land for ground mounted systems and Building Integrated Solar PV Plants have been using these unutilized locations for solar plant installation as these require large space for installation of power plant.

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