China's Major Solar Farm Push

 

Solar power equipment is already quite cheap in China as the country is home to some of the world's largest solar panel manufacturers including Suntech and Solarfun, but the Chinese government last week launched an ambitious program that will see new solar farms dotting the landscape at an even more frenetic rate.
 
Last Friday, the Chinese government announced a new subsidy that would pay 20 yuan (around AUD $4.30) per watt for solar farms with a capacity greater than 50 kilowatts. This level of subsidisation for grid connect solar power is considered one of the highest in the world and would pay for around half the cost of a large solar array.
 
The announcement was extremely good news for solar stocks, with Suntech being one of the companies experiencing the highest gains over the ensuing 24 hour period.
 
While the new scheme has financial analysts debating whether it's such a great thing or not, what it means for the entire industry is a major stimulus to encourage further research and development and moving the world closer to the holy grail of $1 per watt. 
 
As was the case in the 1970's where goods from Japan were labelled by many as "Japanese junk", only to see this change dramatically and Japan be equated with quality, so too is China experiencing the same shift as people start to realise their solar products are among some of the best in the world.
 
The program is also a demonstration of a commitment to environmental stewardship on China's part. The nation is often criticised on environmental issues, but many forget that China is basically the factory of the world - other countries just outsource their pollution to China in order to produce goods for domestic consumption. However, while China continues to grab increased market share of global solar cell production, increasing to 44% in 2008; all that production is by no means just exported to the rest of the world - the country is a global leader in domestic renewable energy generation and installed capacity.
 

Poland Warms To Renewable Energy

 

Poland is well known for its love affair with coal - and not just any coal but the brown version; the most polluting of fossil fuels.  95% of electricity and 80% of energy for heating in Poland is derived from coal.

However, that is rapidly changing as the EU, of which Poland is member, has decreed that 15% of energy production must be from renewable sources by 2020. While Poland's conditions aren't ideal for solar farms, it does have excellent wind power resources. Around 30% of Poland is suitable for wind turbines, and 5% is "very favourable", mainly around the "Baltic wind corridor," which includes parts of Poland's northern coast.

According to Business New Europe, Poland's wind power capacity increased from 276 MW to 472 MW during 2008, which is a quarter of a one percent of its total energy consumption. The Polish government's plans aim for wind generation to contribute a 2.3% share in domestic energy consumption by 2010. Under a scheme to stimulate development of wind farms, renewable energy investors will be offered long-term preferential loans to cover up to 75% of project costs, up from 20-30%. 

At present, approximately  200 MW of new wind farm capacity is being built in Poland, with grid connection agreements for an additional 4,000 MW.

While Poland's use of brown coal has drawn the ire of many environmentalists over the years, closer to home there's a similar story in Victoria where 95% of the state's electricity is sourced from the combustion of brown coal. Victoria recently saw  a 5.6 per cent increase in greenhouse gas emissions, the equivalent of 851,000 tonnes - directly related to electricity generation. 

News for Monday 30 March, 2009

 

• Suntech Pluto - Solar Cell Efficiency Breakthrough
  


• Wind Power And Cavern Batteries
  

View all news for Monday 30 March, 2009 on one page

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