U.S. heed lessons from Europe should renewable integration or follow the face, says NARUC expert

WASHINGTON, D.C. -- In integrating renewable energy to the electric grid, the United States has a unique opportunity to assess lessons learned in Europe and not replicate the disequilibrium that has occurred overseas to consumers, power producers and capital markets, according to Jeffrey Altman, senior advisor, Finadvice GmbH.

“A new transparent, ubiquitous, reliable regulatory framework needs to be established in order to correctly build and support the nation’s developing renewable power portfolio, which ensures a long-term responsibility for the whole power system, as well as the appropriate pricing to the American consumer,” he said during a Feb. 10 panel as part of the National Association of Regulatory Utility Commissioners (NARUC) Winter Committee Meetings in Washington, D.C. “The net impact to the U.S. economy and its future strategic competitiveness can be significant. The U.S., therefore, needs to appropriately restructure its regulatory framework and prioritize this effort now, or face similar challenges as Europe in the future.”

Altman noted that there are several benefits of having high penetration levels of renewable energy on the grid, including the diversification of the power portfolio and lower wholesale prices.

Speaking of the European experience, he noted that due to massively subsidized feed-in tariffs, new additional capacity is driving down wholesale prices of power as renewables with lower marginal production costs than thermal plants get dispatched first.

Other benefits include reductions of greenhouse gas emissions, he said, noting that the European Union (EU) has set a target of a 20 percent reduction of greenhouse gases from 1990 levels, with a 20 percent renewable target and a 20 percent increase in energy efficiency for 2020. So far, he said, the EU is on target with most of its members.

Also a benefit is energy independence, which is critical for every country, Altman said. Employment gains, the development of more efficient renewable technologies and greater efficiency in scale and scope are also benefits stemming from higher levels of renewable energy, he said.

Unintended Consequences in Europe

Despite the benefits, there have been unintended consequences in Europe as it pertains to advancing renewable energy, including a misunderstanding of required subsidies and appropriate regulation, he said, adding that European regulators grossly underestimated the cost of subsidies and the necessary build-out requirements.

Some estimate that Germany’s feed-in tariff subsidy program, for instance, could exceed $1.3bn by the time it expires.

Many European regulatory regimes were inappropriately structured and there have been efforts to correct those by, for instance, initiating retroactive taxes or new regimes that resulted in significant value destruction to various renewable companies.

“This continued regulatory uncertainty across Europe is increasing the cost of capital for European renewable companies, which Fitch, the rating agency, recently highlighted as the most likely sector in the European energy markets to receive a downgrade in 2014,” Altman said.

The enormous amount of subsidies and the speed of build-up have created disruption to the power markets, he said, adding, “As the EU is a liberalized market, government actions regarding subsidies are currently being allowed by international law in favor of the perceived requirements of the consumer and the environment.”

For instance, wholesale prices in Germany have fallen from €90/MW to €95/MW in 2008 to €37/MW in 2013.

Altman also noted that the EU will be required to pay subsidies for the build-out and enhancements of power networks to manage the dynamic flows. Germany, he said, is planning to spend some €40bn, or around US$60bn, to reinforce the grid from where it was in 2012 to where it will be in 2023.

“You’re effectively taking all of the power … from the north and bringing it down to the south,” he said. “[That is] a huge effort and no one was ever considering those costs early on.”

In addition to that, the German government is also now — as others are starting to do — looking at ensuring capacity payments for thermal power stations that are being closed down to ensure the reliability of the grid and prevent blackouts and brownouts, he said.

Another challenge is that many European utilities underestimated the growth of renewables as well as the impact to wholesale prices in the entire system, leading to the continued build-out of thermal plants over the last decade, many of which were made obsolete, particularly with respect to natural gas-fired plants, by the end of the decade.

“As a result, the utilities had to shore up their balance sheets by undertaking large divestitures of some of their holdings, as well as reducing their operating costs,” Altman said.

Europe’s top 20 utilities that were worth around €1tr in 2008 are now less than half that amount due to the global financial crisis and other factors, including those involving renewable energy development, he said.

Another important matter that has occurred is that prices to energy users have increased significantly, as has the backlash against energy companies, he said.

In Germany, household prices have more than doubled from 18 cents/kWh in 2000 to more than 37 cents/kWh. In the United Kingdom, there has been a call to freeze prices for up to 20 months, Altman added.

Well-meaning European governments and regulators embarked upon an effort to reduce carbon emissions and “unintentional consequences resulted from those policies that were not ultimately fully vetted by industry [including] renewable companies and utilities and other stakeholders,” he said. “The results of these policies have required enormous subsidies, which have created disequilibrium and value destruction to both renewable companies and utilities via regulatory interventions.”

It is now envisioned that further subsidies will be required for emission targets, the support of thermal plants and storage, via capacity payments and a build-out of grids.

Accordingly, Altman added, those policies, combined with large subsidies “are destroying what was essentially a free market and, as such, the influence of government in the power sector will ultimately have no real market correction mechanisms as European governments capriciously determine the fuel mix, technology choice and capacity price levels with detrimental effect to the efficiency, investment and, most importantly, prices to consumers.”

Lessons Learned as the U.S. Moves Forward

In the U.S., Altman said, “now is the time to fully assess the implications of transitioning to a partial renewable portfolio and structure the appropriate regulation.”

The current U.S. net metering and regulation, which has allowed for renewables to come on the grid, does not take into consideration the future requirements of grid enhancements as well as what will be required to maintain a reliable power system, he said.

“There needs to be a well-coordinated assessment between federal and state regulators, regulated and non-regulated power producers, renewable companies, consumers and other important stakeholders to develop ubiquitous regulation,” he said. “Otherwise, the U.S. will ultimately face an analogous situation relative to Europe with balkanized energy markets.”

On whether regulators should wait for there to be overcapacity and strains on the systems to set new regulations, he said, “I suggest what we have learned from Europe, this would indeed be imprudent.”

Regulators should consider creating a new framework whereby a structure be agreed upon as to how much capacity will be allowed in each state/region over a 20-year period, looking into five-year increments with review every two years, he said. In parallel, there should also be an agreement as to how much thermal capacity will be retired during that time, whereby, collectively, an assessment will be made with respect to the mix of power production, the network upgrade costs, the overall reliability of the network and the ultimate price to consumers, he said.

Special attention should be paid to require flexibility in storage. Upon this analysis, he added, all new generation coming online should be bid at an auction to meet the lowest economic costs, highest reliability standards, as well as environmental standards, Altman said.

This article was originally published on GenerationHub and was republished with permission.

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Two exciting alternative energy issues investors should know

Two investment themes in the alternative energy changing landscape emerged, such as potential profit for investors Center. To take advantage of these trends, the Roen has added about 250 companies, alternative energy with it Monte financial report in four new companies we track for our readers.

Investment topic #1: of the growing Japanese solar domestic market

In the course of the Fukushima nuclear disaster, Japan has committed to the growing renewable energy as a source of domestic energy. Mercom Capital Group Japan had over shipments and massive growth of 343 percent 73 percent quarter on growth in solar cell last year. Promising plays the two companies that are down in this area.

Kyocera Corp ADR (KYO):Kyocera is a Japanese electronics company with a wide range of products, including solar and energy-management systems. The profitable company will probably benefit from the acceleration of domestic Japanese solar plants.

Sharp Corp. ADR (SHCAY):Sharp is a large Japanese consumer electronics companies, the business over 50 years since. The stock price has reports to fight, but how Kyocera, sharp growth in the domestic Japanese solar should benefit as a result of poor performance.

Investment subject #2: alternative fuel engines

Engineers design and develop of the next generation of modules, to reduce the US dependency on foreign oil, while greenhouse gas emissions reduce. This latest alternative fuel engines are much more efficient and much less environmental burden. Importantly, cut back on transportation costs. The two companies below are important actors in this field.

Cummins Inc. (CMI):Cummins is a big Indiana-based engine manufacturer, which products contain energy efficient diesel engines and low-emission natural gas engines. It has a reasonable PE, but his stock is overpriced at these levels.

Power solutions International (PSIX):Power solutions is a "pure play" company that produces systems to alternative fuels such as natural gas, propane, biogas and electric and hybrid technologies. Despite the fact that doubled in the last year in the price the stock power solutions shows superior revenue growth and is likely from here continue its bullish trend.

Disclaimer: Individuals who do not possess it. Monte financial report and Swiftwood Press LLC with Roen or control shares of companies mentioned in this article. It is also possible that individuals have or shares of one or more contain the underlying securities in mutual funds or exchange-traded funds in this article can taxes referred to. Advice and/or recommendations in this article are of a general nature and not to be considered on specific investment advice. People should seek advice from their other experts, before an important financial decisions. Find the terms and conditions for more information.

This article it Monte financial report was originally published on the Roen and was published with permission.

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Report: 59 GW generation capacity coal-fired plants should retire; Could open door for renewable energy

The comprehensive report is one of the ten States with the most coal-fired generation plants, which should be taken into account for the final: Georgia, Alabama, Tennessee, Florida, Michigan, South Carolina, Wisconsin, Indiana, Mississippi and Virginia. (see graph below).

The report also shows that southern company, one of the largest private utilities in the country, followed by the State of Tennessee Valley Authority, Duke Energy, American Electric fired the most coal power and FirstEnergy owns generating plants for your retirement.

To determine the economic competitiveness of a coal plant, the UCS compared to coal-fired generation after the installation of a plant of modern pollution controls costs with the costs of the generation of a new natural gas-fired plant. If the cost of the coal plant was greater, it appeared ready to retire. Many in the report identi­fied ripe for retirement generators are more expensive than wind power with or without the extension of the production tax credit (PTC). The UCS considers even a modest price for CO2 emissions for the analysis.

See below diagram and description.

UCS analysis reveals that low natural gas prices and a price for CO2 have to expand the largest influence in the pool of the coal-fired generators as ripe for retirement and extend the federal tax credits for wind power is also important. Alternative scenarios could affect search three external factors, the coal-fired generating capacity as ripe for retirement. In the core analysis (far left) compares the low estimate (dark blue alone) the operating costs of coal generators with the operating costs of a new plant of NGCC; the high estimate (combined dark blue and light blue) compares the costs of coal generators systems with the operating costs of existing NGCC. The Middle three bars repeat the analysis for hypothetical scenarios in which natural gas prices could be lower 25 percent or 25 percent, or where could set a price of $15 / tonne on CO2 emissions. For the wind energy scenario (far right), the analysis shows that expires the capacity of coal-fired generators as ripe for retirement, when federal tax credits for wind power are permitted (dark green) or extended (dark green and light green combined).

"Our analysis shows that switching to cleaner energy sources and energy efficiency investments often more economical than billions to obsolete coal-fired plants, the life extend," said Steve Frenkel, co-author and Director of the UCS of the Midwest offices reports. "Regulators should more utilities to check carefully, whether the taxpayer through old coal-fired plants in the retirement and the promotion of electricity produced from natural gas and renewable energy sources such as wind would be better. "Issuance of billions of old coal-fired plants can easily upgrade be throwing good money after bad."

According to the UCS possible, this uncompetitive generators in the retirement presents a historic opportunity, a transition to a clean energy economy to accelerate the protection of public health, CO2 emissions and diversification the electricity mix.

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Should marketers focus on solar preaching to the choir or the skeptics?

Yesterday, I received a message on Twitter by Tom Kimbis on SEIA. He tweeted, "WSJ wants to know what you think about the promotion of # solar." RATE THEM HERE! "SEIA @ SolarFred @ http://ow.ly/dv9o9."

When I clicked the link, it took me to a Wall Street Journal blog post where the author asked reader, and wind, if solar subsidies should be eliminated, increased, reduced or remain the same.

At the time, about 08: 30 Pacific, it was solar when the vote is hammered by regular readers of the Wall Street Journal. A 500-vote margin suggested that solar and wind subsidies should be eliminated. This is not so surprising. The blog was to his conservative oil and gas investors choir preach and during the vote, I had strongly believed more solar subsidies only slightly less than the votes will receive half of reasons for solar PR and advocacy, that solar required to win this very public but non-scientific survey.

So, thanks to Tom's heads up, green social media marketing and activists on Twitter via WSJ of normal oil and choir achieved. In the afternoon had support for solar subsidies increase the majority of votes obtained. While I write this Wednesday night, the vote now stands at over 4006 votes (47.7%) for increasing versus 3374 votes (40.2% for the removal of solar) and wind drops subsidies.

To update 7 September 2012: fossil fuel advocates are again catch up! Click on the link above and give your voice for solar and wind.

On the surface, the solar and wind industries won the public PR battle. The Wall Street Journal is a notoriously conservative news organization, and perhaps this "profit" will think again some conservative readers to become America's support inspired solar and wind... but probably not.

If you look at the comments below the post you see on typical yada, yada, myths and misunderstandings solar and wind subsidies. The other conservative commentators really hear tried solar and wind power advocates who just set record, but were? Or they were just search your after predisposes views. (One could ask the same of solar and wind in favour.)

Here is the thing: as solar marketers, we are already understaffed, under-funded and urged time and resources. So we need to questions, whether it our time outside our choir in this kind of conservative place worth to preach, to leads in predisposed having to generate skeptics.

In fact, no matter how many facts we have, it is extremely difficult to change people's minds once they believe something even if economic and scientific facts contradict these beliefs. To change these minds, you need time, repetition, creativity and above all "trust agents" (a great book).

I think "trust agents" that personal, local or national Conservative leaders thought. If they their first view of solar change and about the change, it breaks the ideological barriers sermons, and many eventually follow.

For example, when Bill O'Reilly ever finally solar and preached about whose money saving attributes on his radio and cable shows go, would be a major coup for solar energy. Many who would reconsider his millions of listeners and viewers (UnThink?) always a solar supply for themselves. Likewise, if the conservative best friend that follows "Energy" changes his or her mind about solar, it can convince to rethink your solar subsidies position.

So is it solar get value, our time, which engage troops on these types of conservative forums? We will find and market conservative trust agents and try our case to them in the hope that they are spread the word to others?

My answer is Yes... but in moderation. In this example, Wall Street Journal was an easy victory. It took the word on my own personal and business social networks the same action a few minutes out, during SEIA and other solar-social-media people. Good and urgent causes quickly spread.

This would be purely a solar marketing call to action, to buy a solar widget or service, however, I doubt that this mini campaign would have had the same answer, or PR effect.

The fact is that our very own solar choir still very uneducated about solar technology and its economic benefits. Progressive, open and "green" individuals, companies and politicians can already support solar, but they always still not that solar understand leasing and PPAs or tempo can be funded and that it needs no batteries - or even a roof in some cases.

So, unfortunately we are solar still in the early phase of the user. While I would love to go to the Mississippi and Alabama and try legislators nationwide net metering passed to preach-solar choir and tons of solar.... sell we are probably more successful and profitable marketing and progressive, independent and moderate Republicans who are already favourable for solar, but uneducated and/or unmotivated.

This is not to say that solar marketer on the sale of solar conservative will give up. The information and financial sense through personal colleagues, colleagues are solar da successfully with the progressive low-hanging fruit, and distributed trust agents.

In the meantime it is still value, a few minutes, solar myths on blogs and news articles to correct, and it is worth getting it.... to the solar UnThink.

Tor Valenza advises solar companies in marketing, communications, a.k.a. "Solar Fred" and branding. Reach him via UnThink solar or follow him on Twitter @ SolarFred.

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Yoko Ono says that Japan to Iceland should look like

Tokyo - YOKO Ono has an idea for their disaster scarred country Japan - abandon nuclear energy, renewable energy and tap the geothermal energy under the unstable ground of the volcanic island nation.

Is in Japan the artist and widow of John Lennon for the first time since the March 11 Quake and tsunami triggered a nuclear crisis and the country the atomic bombings of Hiroshima and Nagasaki remembers.

With its new exhibition, which says the hope Street, that she would like to stress that have Japan, is after the second world war and the atomic bombings rebuilt also strengthened from the Quake and Fukushima radiation disaster can emerge.

In an interview, she said 'the Hiroshima and Nagasaki suffered situations, and now Japan' of the AFP. ' Right now it is horrible and of course we have a decision to abolish,' she said Japan's nuclear energy program. "This is not only something that happens it happened to the world after Japan,." We are all together in it, not only Japan. "

As a growing number of Japanese favors makes a shift to renewable energies such as wind, solar and geothermal Ono, which she said that she Tectonically was familiar with unstable land Iceland to another. The Imagine Peace Tower in the vicinity of Iceland's capital, Reykjavik, a memorial to Lennon, who was shot outside her New York apartment in 1980 is one of Ono's projects.

The stone monument - which has carved the words "Put themselves before peace" into in 24 languages - send a column of light into the sky with electricity from Icelandic geothermal power network. Iceland produces more than 80 percent of energy from geothermal energy and hydropower and the warm steam from the Earth used for 90% of domestic and water heater. The land free to fossil by 2050. --AFP

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Precautions should health problems from nuclear plant radiation limit

The Japanese Government has evacuated people in the next to who said plant, others home stay and distributed to protect the drug potassium iodide thyroid from radioactive iodine.

The great tragedy of Chernobyl was an epidemic of thyroid cancer among people exposed to the radiation as children - more than 6,000 cases so far, with more expected for many years to come. There is no reason for it in Japan be repeated.

The epidemic in Chernobyl was unnecessary and probably would not have happened if people told me, had to stop local drink milk, made, which was by far the most important source of radiation. Grass of fallout from the reactors and secreted radioactive iodine in their milk cows ate contaminated.

The thyroid gland needs iodine and easily takes on the radioactive form that can cause cancer. Children are particularly vulnerable. Pills to potassium iodide thyroid gland with ordinary iodine in the hope, that it prevents the gland will flood in which radioactive type. Possibly unnecessary people avoid drinking milk, the drug but for most people, there is no harm in it. And if already the pills can that help get rid of, has started building in the thyroid gland, Dr. Richard said radioactive iodine j. Vetter, a Professor of Biophysics at the Mayo Clinic in Rochester, Minnesota

"It always will help if you are within a month or so of the exhibition," said Dr. cousin. "The higher is, the less it helps."

If the pills are in short supply, and he said, are rationed, they should go first, children and pregnant women. But taking the drug not you is to stay safe in the vicinity of a reactor, the radiation issues, he said. Still, people need to evacuate.

Apart from the increase of thyroid cancer is "there is no evidence of a large public health impact attributable to radiation exposure two decades after the accident" in Chernobyl, partially due to the evacuation efforts, according to a recently published report of the United Nations.

There are several ways to tell whether someone was exposed to radiation. A Geiger counter detects radioactivity outside the body, clothes, hair and skin. To be found infected people should be advised to take off and take a shower, and their clothing should when disposed of hazardous waste, said Dr. cousin.

Another device, a sodium iodide detector can check, radioactive iodine in the thyroid gland from the neck inch or so maintained; If it detects any, the person may be given pills iodide.

Appear in photographs from Japan health personnel of the public with a Geiger counter and sodium iodide detectors are screening.

If it is suspected that someone has suspended a large dose of radiation, is the first test, which doctors are likely to result in a complete blood count, Dr. Vetter said. Anomalies in the count - less white cells as, for example - can appear for a day or so, and give a rough estimate the exposure was how bad the.

"In Japan, it is very unlikely that a member of the public would get a dose of radiation, which would result in a reduction in each blood cells," said Dr. cousin. "If someone this way of the dose is probably people who work in the nuclear power plants themselves."

People with significantly reduced blood counts for radiation medication on their can be given to stimulate more blood cells bone marrow. These drugs were not available in the year 1986, when a nuclear power plant in Chernobyl, Ukraine, blew up. Other drugs can be used to help the body to get rid of certain radioactive isotopes. If the exposure was so high that the medications do not help people must - may be treated however hospitalized in isolation and antibiotics to prevent infection, and possibly blood transfusions. A bone marrow transplant can as a last resort, but Dr. Vetter said "the patient in real trouble at this point."

Cultures due to fallout, which contaminated are brackets can be addressed on the surface of the plants at first and later by their roots.

The time required for half of it fall apart, or disappear - so most of it is has gone two months a half life of only eight days - radioactive iodine. But radioactive forms of particles cesium much longer to maintain, and in the regions of Chernobyl affected, they are still the greatest threats to human health and are for decades.

Wild mushrooms, berries, and animals with caesium in fields dirty are contaminated by Chernobyl were, and, is expected to last for decades. Lakes and freshwater fish can also be contaminated, but experts say that less is a marine fish concern, because the contaminants are more spread and diluted in the Ocean as in lakes.

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3 Mass. churches should reopen, Vatican rules

CHICOPEE, Massachusetts (AP) - the Vatican has ruled that three Western Massachusetts churches that should be closed by the Diocese of Springfield reopen including one that is occupied in protest for two years, community members learned Tuesday.The Vatican Congregation for the clergy decided that Bishop Timothy McDonnell justify not close churches, St. Patrick and St. George St. Stanislaus Kostka Church in Adams or two Chicopee. That is again open the churches for worship, although to what extent you used can be unclear.Laurie Haas, one of the leaders of the vigil on the St. Stanislaus Kostka, the decision called "monumental." "Everyone here said in Adams joy and full of joy!"Haas, whose Church by community members around the clock since December 2008.With similar decisions on churches in the Diocese of Allentown Pennsylvania, who is a Massachusetts decisions new policy which signal Vatican, it harder is settled for local bishops could close and sell Church, said Peter Borre Council of communities, a group formed to battle the Church closings."Keeping open churches is also to a limited extent, important because you important evangelical mission of the Church remains where it said Borre otherwise, may be lost.""The most important element in the job description of the Bishop is the salvation of souls," said Borre. "And you can reach by the presence of the Catholic Church in a diocese to destroy.""The Diocese of Springfield, the Vatican's High Court appeal can, and there is much to say about how the three churches to - imaginable use for opportunities as frequently as regular mass a more sporadic opened place to pray."This is not mission met, "said Borre.Ein Diocesan spokesman said he would not comment until closely inspected the Vatican judgments."In recent years the Catholic dioceses around the country have dozens of parishes, citing falling presence, a lack of priests and financial burden closed. In Boston, for example, five churches was occupied since 2004 began and today reduced the number of parishes of 357 on 291 wide reconfiguration.Congregation for the clergy decisions dated January, distinguishes between Roman Catholic parishes - the territorial units belonging to all Catholic building in you as parish offices, schools and Konferenzraume-and the main church building within those communities.In their appeal argued parishioners of Bishop standards under Canon law for those churches shut down and did not conform to the conversion of the Saints in secular use. The Vatican has agreed, McDonnell not provided, the "necessary grave motivations" for the closing of churches to say.Borre said similar complaints are outstanding in the Vatican from other regions, for example in Cleveland and seven Boston-area Kirchen.In of the Church St. Patrick on Tuesday before the door was locked, but a door opened the brick church's cool, well-maintained interiors. Scattered characters, including one that to read "Save save St of Patrick's - souls," made pleas for money and support in the fight to keep open the parish.The decision was not a complete victory in all three cases - the Vatican confirmed McDonnell's decision to close the larger communities. St. Patrick parishioner Margaret page is hope the St. Patrick parish, which said 2009 closed is open one day again. But added she, "I am very happy, we have a positive decision."Rachel Bradford was a lifelong parishioner at St. George before it closed in 2009, and went to the Church for weekly services to the entire College law school, and even, after moved to Northern Connecticut. "Bradford, 28, said although the future of the St. George was unclear, she was happy, there was one.""Partial victory is it", she said", and we take it for now."--Lindsay reported from Boston.

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