The world has woken up to the vast potential of renewables with nations across the globe ramping up their efforts to switch to renewable fuel sources to reduce carbon emissions and combat climate change.
Many of the PV industry players have already wished for opportunities that were faster, easier, and better defined than actually develop a PV project from zero, though some of us have developed pretty neat skills doing exactly this.
A specific objective mentioned in Myanmar's New Electricity Law 2014 is the intent to "increase foreign… investments in electricity-related work" and provision is made for the issuance and revocation of licenses to foreign investors.
The 2011 Feed-in-Tariff (Solar)
As mentioned in the previous article, in July 2011, the Chinese government decided to set a unified national benchmark price for solar PV projects by releasing the Notice of the National Development and Reform Commission on Perfection of Policy Regarding the Feed-in Tariff for Power Generated by Solar PV (the "2011 Feed-in-Tariff (Solar)").
In our practice, executive classrooms and group interventions, and when talking Energy and Energy transition- I focus a lot on three important elements for the realization of successful energy (transition) programs :
1) Global Change, Scenario's, Vision and strategy: identifying the reasons and issues for change and choice, and a durable (pro- or reactive) vision, position and strategy in this change.
2) Execution: Organising and Delivering Performances
3) Leadership and Change: Value and Values.
One of the most interesting and telling trends discussed on the report, “Finding the Perfect Partner in the Global Grid Storage Market” is the clear focus on start-up financing and support in the American markets, contrasted with the heavy activity in fundamental university research in the Asian markets.
Oversupply increased in 2012 as global production capacity rose 10 GW while demand rose less than 3 GW as Chinese manufacturers, such as Yingli, which added 600 MW, and Trina, which added 500 MW of capacity in 2012, continue to increase capacity.
The deployment of PV has seen a dramatic increase in the last decade and is poised to take over wind in this decade as wind reaches its “easy-to-reach” potential and solar is barely starting to penetrate the generation mix worldwide.
Before 2008, encapsulant suppliers from Germany, the U.S., and Japan, such as STR Solar, Mitsui Chemicals, Bridgestone, and Solutia (Etimex), were the dominant companies producing EVA film – taking 60% of the global market share.
Sanhua Group, a Chinese listed company, plans to invest RMB 600 million (US $95 million) to install 600 dish-turbine units in Inner Mongolia as the first phase of a concentrated solar power (CSP) project.
Under the context of Renewable energies Bankability takes shape under several concepts and it is interesting to see that the concept has an Asian concept that is completely different from the European or North American one.
In spite of current market conditions in India, favourable project economics are set to support coal power as the default baseload capacity option with over $154 billion capex expected between 2012 and 2020
Since market restructuring that principally began with the Electricity Act 2003, India’s power capacity has grown at a strong CAGR of 6.8% – growing from 130GW to 220GW at year-end 2011.
In Asian Power market, “Middle East” is the largest economy having higher concentration of dual purpose power and water plants, mainly due to the requirement of desalinated water in this part of the world and secondly it is the economical way to produce drinking water.
Despite the adoption of a new electricity law in 2009 liberating the Indonesian electricity market, most electricity generated in Indonesia is sold to PLN, the state-owned utility, under 25 or 30-year power purchase agreements (PPAs).
In recent discussions with a scientist at China Guodian Corporation, one of China’s five biggest electricity power generation corporations, it was disclosed that State Grid is less likely to open new energy storage projects for renewable energies and its electricity grids in the near future.
• You identify an attractive investment opportunity that requires its assets to perform safely and reliably .
• You will be the subject of severe reputation and financial penalties should the plant fail to perform as contracted.
• Your main contractor is fine on deliver but is stating they have some 400 global suppliers to whom they will subcontract equipment orders.
• Safe and reliable delivery of the equipment is essential .Failure would have unacceptable negative impact on your brand and financial return.
• You have substantial uncertainty ,substantial risk and hard questioning from your stakeholders
How do you mitigate the uncertainty and lower the risk to retain the investments attractiveness to you and your stakeholder ?