GLG News by Mr. Himadri Banerji, Chairman and Managing Director
GLG News is now G+ Insights
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G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.
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Priorities Right for Obama on Solar PV
June 3, 2009
Obama Announces US $467M in Stimulus Funding for Geothermal and Solar Energy Projects | www.renewableenergyworld.com
Solar energy will see a $117.6 million investment. Photovoltaic technology development will account for $51.5 million and another $40.5 million will be used for deployment. Projects in this area will focus on nontechnical barriers to solar energy deployment, including grid connection, market barriers to solar energy adoption in cities, and the shortage of trained solar energy installers. Finally, CSP technology research and development will get $25.6 million. This work will focus on improving the reliability of concentrating solar power technologies and enhancing the capabilities of DOE National Laboratories to provide test and evaluation support to the solar industry.
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Small Is Beautiful: Small Wind Makes Major Headway
June 2, 2009
US Market for Small Wind Turbines Grew 78% in 2008 | www.reuters.com
The U.S. market for small wind turbines--those with capacities of 100 kilowatts (kW) and less--grew 78% in 2008, according to the American Wind Energy Association (AWEA). With a total of 17.3 megawatts (MW) of new installed capacity, consumer demand for clean energy options is on the rise, the Association said. U.S. manufacturers sold about half of all small wind turbines installed worldwide last year. U.S. market share amounted to $77 million of the $156 million global total.
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A US Renaissance! Market Boom for Manufacturers of Wind Turbines and Accessories
June 2, 2009
U.S. Wind Power Industry Marks Strong First-Quarter Growth | www1.eere.energy.gov
US wind turbine market value increased from $1,482 million in 2003 to around $12,530 million by 2008. US is the world’s largest wind power market, contributing to 19% of the global cumulative wind capacity and more than 90% of the North American market. It is a highly government driven industry, the growth of the US wind market was fueled by production tax credits, subsidies and renewable portfolio standards in various states. Financial backing from the government has eased out the issue associated with high costs for wind power generation to a large extent, thereby driving wind growth. The report states that the growth momentum for the first quarter 2009 has been significant, though due to the economic crisis, there has been a lowering of installed and capacity under construction in 2009 compared to 2008. This therefor brings a booming market to the manufacturers of turbines and accessories.
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Crazy are the Ways of Bubbles, Bulbs and Tulip: Renewable Energy Bubble Revisited
June 2, 2009
Could Energy Innovation Create A 'Green Bubble'? (Part 9) | www.geni.org
The GENI Initiative focuses on linking renewable energy resources around the world using international electricity transmission. In its May 1 web news Jeff Brady's article on the NPR (National Public Radio, is an internationally acclaimed producer and distributor of noncommercial news, talk, and entertainment programming), brings out a view point of Jansen the founder of ITulip and who has made a name for himself studying bubbles. Jansen observes that Congress is working on legislation that would limit greenhouse gas emissions and then turn them into a commodity that can be traded. Such a cap-and-trade system might be the seed for creating the credit necessary to get a renewable energy bubble going. "Some think the investment banks will get into the cap-and-trade business and figure out a way to use that market to create securities that can then be the foundation for an asset price inflation,"
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The Mega Oil Find In Pre Salt Basin Sets Brazil To Change Oil Exploration Policy
May 4, 2009
The future of the Brazilian "pre-salt" oil reserves | www.ogfj.com
The article is of significance because it reports that since the discovery of potentially massive oil reserves, estimated to be over 50 to 100 billion barrels in the "pre-salt" region off the coast of Brazil, the Brazilian government is expected to promulgate new regulations which will open the pre-salt territory for more comprehensive exploration. It holds great potential for international oil companies searching for new reserves to satisfy growing global energy demands. besidees, the oil find has far reaching implications in reducing US dependence on middle east oil.
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A Forecast On US Short Term Natural Gas Price: Shale Play and LNG
May 4, 2009
EIA conference:Ample US gas supplies pose challenges | www.ogj.com
Nick Snow Editor of Oil and Gas Journal Washington in an article on the EIA conference reports that there is no reason near term for the gas prices to increase beyond the 4-7$/Mcft range considering scarcity in supplies. 1.With the impressive growth of hydraulic fracturing it would be easier to exploit the reserves though there would be difficulty in determining how and when this impressive national asset can be developed. 2. As per some observers application of latest technology in the Haynesville Shale is making gas that was budgeted at $7/Mcf producible at $4/Mcf. This will also give added economic flexibility in production well sizing, now that for the first time, the industry can ramp up and down in fairly small increments. 3. Few panelists suggested that additional LNG could reach US markets despite low prices because of falling demand in Europe and Asia. This in spite of increase in gas demand from new gas plants planned to support President Obama’s clean air initiatives.
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May 4, 2009
Obama's proposed "smart grid" may be vulnerable to attacks by computer hackers | www.newstrackindia.com
According to a report by Fox News, the "smart grid" is projected to be a nationwide system of automated meters and advanced sensors that integrates new alternative-energy sources with traditional power plants. Creating a two-way line of communication between homes and the grid - however "smart" it may be - has its risks, according to experts. "With smart grid, anybody with an eBay account and 80 dollars can go and buy a smart meter, reverse-engineer it and figure out how to attack the grid," said Josh Pennell, president and CEO of IOActive, a technology research firm in Seattle, who testified before the Department of Homeland Security last week. Security analysts predict low-level hackers trying to steal customer data for the purposes of fraud - or an international terrorist group infiltrating the grid and causing a massive power blackout. There have already been several instances of hackers breaking into foreign power grids and holding the electricity supply for ransom.
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Boosting Photovoltaic Solar Power in China
May 4, 2009
China Combats Solar Downturn With Subsidy | www.environmentalleader.com
This article is important because 1.While the world over there is a shift towards FIT or Feed in Tariff, China continues with subsidy to stimulate the solar power industry. 2. The percentage of subsidy 2.99$ per watt is about 48 percent on the ruling international cost of 6.50$ per Watt, which is a far cry from grid parity. 3. This comes as a boon for the Chinese-based solar companies such as LDK Solar, Renesola, Canadian Solar, Trina Solar, JA Solar Holding, China Sunergy, Suntech Power, Solarfun Power and Yingli Green Energy, who are struggling against the global economic downturn.
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Smart Grid Companies Get a Real Stimulus
May 4, 2009
Competition Grows Fierce for Smart Grid Stimulus Funds | earth2tech.com
The article is important because it relates to the game for smart grid companies over the next several months as funding from the economic stimulus package rolls out to state and federal agencies. Xcel Energy, PG&E, Cisco and IBM are the top rivals, but the race is on for the gamut of industry players from smart meter firms like Landis and Gyr and SmartSynch, to network companies such as Gridpoint and Tendril, to utilities like Southern California Edison and Sempra.
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Amorphous Metal and Smart Grid for Distribution Network Loss Reduction
March 30, 2009
Making every electron count: the rise of the SmartGrid | www.deloitte.co.uk
In 2009, over 16 percent of all energy used is expected to be in the form of electricity, up from 9 percent in 1973. The losses average about 8.8 percent for the world, though in US and Europe the same is 7%.Currently, the average efficiency of the world's legacy electricity grids is around only 33 percent. This contrasts with 60 percent efficiency for grids based on the latest technologies. The future technologies for distribution networks will include amorphous metal, copper and smart grid technologies.Further, the cost of power outages and power quality disturbances is estimated at $180 billion annually in the United States alone.The stimate for the world would be around $768 billion.The smart grid technology can reduce this considerably.
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Can Obama's Cap and Trade Rescue The Amazon and The Andes From Deforestation
March 30, 2009
A NAFTA for carbon trading? | features.csmonitor.com
As per a feature by Eoin O'Carroll in the 16th March edition of Christian Science Monitor, he reports that David Cleary, the director of conservation planning for South America at The Nature Conservancy, has suggested using some carbon market revenues to support initiatives south of the American border. Current international policy, including the Kyoto Protocol, does not recognize the protection of forests as a source for carbon emission reductions. Developing nations cannot receive credits for reducing heat-trapping gases from one of their biggest sources: deforestation. Yet, if the Amazon goes, the climate shifts will hit the United States almost as hard as Brazil, Peru and the other Amazonian countries. Therefore a NAFTA for carbon trading would allow American companies to spend the revenues from carbon trade on deforestation and to include a provision in the U.S. carbon trading system that allows U.S. companies to gain carbon credit for offsets in Latin America?
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The Dimming Reality of Rio Tinto and Chinalco Deal
March 30, 2009
Market upturn may deflate Rio-Chinalco deal | www.reuters.com
Prospects may dim for Rio Tinto's $19.5 billion proposed link-up with Chinalco if strong markets boost the attraction of a rights issue and investors believe a new chairman is more willing to consider alternatives.
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Life After New Rules: Is Colorado Oil Industry Losing Steam?
March 30, 2009
Colo. lawmakers approve landmark oil, gas rules | www.sfgate.com
The new Colorado gas and Oil Industry rules give more weight to public health and safety, wildlife habitat and migration, and environmental protection when state regulators consider applications for new oil and gas wells. However opponents feel that they could cost the state more oil and gas jobs during the recession. The House passed the rules arguing that the health and safety of Coloradans who live in energy-producing areas should not be compromised.
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Key To Canadian Oil Sand Development is M&A, Suncor Petro-Canada Sets The Trend
March 30, 2009
Suncor's Petro-Canada bid may spur more deals | www.reuters.com
While larger oil sands players like Exxon Mobil Corp and Royal Dutch Shell aren't likely to see any cost savings by acquiring rivals, there may be benefits for smaller players. Thus the Suncor Energy's deal to buy rival Petro-Canada may set in a wave of such buyouts or mergers for consolidation hoping for cost savings and a stronger balance sheet for seeking financing and independence, as Suncor is targeting.
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Brazil's Burgeoning Oil Industry:High Stakes On Petrobras
March 29, 2009
The next oil giant? Brazil's oil industry has big hurdles to clear | www.economist.com
With the massive oil find in the Santos basin, Brazil is on its ways to become a major oil producer of the world. However the present global scenario poses serious challenges to oil field development.The onset of a sharp global economic slowdown coupled with recent currency-derivatives losses and continued uncertainty regarding the value of the Real has brought financing constraints and low risk appetite on the part of foreign investors. Thus with hardly any foreign capital available, large Brazilian companies are therefore increasingly likely to rely on local banks for credit at high premium spreads pushing the cost of borrowing upwards. Concurrently, the Brazilian Government is redefining the policy for private participation in oil field development. An approach under consideration is to turn concession contracts into production-sharing agreements with Petrobras after recovering fixed costs, a departure from the existing royalty or participation tax based contracts.
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The Hybrid Electric Car Revolution Promises More Jobs
March 23, 2009
When ‘clean’ cars charge up on ‘dirty’ electricity | features.csmonitor.com
In the feature article in Christian Science Monitor, the question whether electric hybrid cars will be economical or not is answered in reference to an EPRI study of 2007. It would be in order to recollect some of the findings which are below. 1.The cost of powering hybrid car on electricity equivalent to 75 cents per gallon gasoline, a price which has not occured in the last thrirty years. 2.This is based on electricity cost of 8.5 cents per kwhr and if the charging is done in the off peak hours, the cost would be even better. 3. There is enough electricity available in the off peak hours to charge three quarters of our fleet of cars without building new ppower plants.
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March To Economic Recovery Begins From Gainsville, Florida
March 23, 2009
The Rooftop Revolution | www.washingtonmonthly.com
In a story Mariah Blake an editor of the Washington Monthly reports in the March April issue that with the introduction of feed in tariff (FIT) policy in the State of Florida, there is a spurt of investments in roof top solar in a little known town of 120000 residents, called Gainesville. There seems to be a gold rush, as entrepreneurs and residents are getting into the act bringing about the much anticipated recovery in the local economy. Hitherto all sorts of incentives like tax subsidy, investment subsidy, and accelerated depreciation failed in reining in the renewable solar industry from a free fall following the global meltdown. Feed in tariff brings an additional burden on rate payers; the community seems not to be minding this for the sake of the community. With this success, more states are likely to follow and hopefully US will be on its way to become the world’s largest roof top solar country displacing Germany which has had revolutionary success with feed in tariff.
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The First Power Plant With Carbon Capture and Storage Plant In US
March 23, 2009
Stimulus Money Puts Clean Coal Projects on a Faster Track | www.nytimes.com
In a news by Matthew Wald published in the New York Times dated March 16, 2009 it is reported that Duke Energy with funds from the economic stimulus plan has commenced work on a plant for capture and storage of carbon dioxide from their new coal fuelled power plant. Environmentalists and Energy Officials are keenly watching Duke Energy’s Clean Coal Project adjacent to their coal gasification and power plant project at Edwardsport, Ind which will sequester carbon dioxide from flue gases from their power plant under construction. This will be first such venture in US and will be funded by the economy stimulus plan. With $3.4 billion in the federal stimulus bill for carbon capture and sequestration, Duke Energy and other companies are therefore motivated for developing full-scale projects. However the cost is pegged by planners at 800million to 1 billion dollars for such project and we need to build one demonstration project to really understand the proof of technology and its economics.
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Copper Makes New Gains in Transmission and Distribution Industry
March 17, 2009
Copper reduces T&D losses better than aluminium | www.projectsmonitor.com
In an article in the Project Monitor dated 17th March, it is reported that Copper is seen as a preferred metal for winding of Distribution Transformers in India, because of its electrical properties which helps in improving efficiency, by reducing losses in energy during transmission and distribution of electricity. This is indeed good news for the metal. As a mater of fact in a separate article, it has been reported that there is a sudden surge in buying copper in China.The country's economic stimulus package was taking effect and Chinese banks were granting loans again.
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Dilution of Shareholder's Wealth Comes Hunting Rio Tinto-Chinalco Deal the Full Circle
March 17, 2009
Australia extends Chinalco-Rio deal probe | www.reuters.com
It may not be a perfect deal but the equity issue with a convertible note is far less dilutive than a deeply discounted rights issue to existing shareholders. You have to ask whether the status quo is any better than what's being offered and you would have to argue, without seeing the detail, the outcome that's being delivered will be much better than the status quo by a mile. How ever you cut it, it's going to be earnings dilutive in the short-term but you can't grow a company without cash. There's no point in having great assets if you can't grow them.But will the shareholders understand? Thus it is reported that Australia extended its review of Chinese aluminum maker Chinalco's $19.5 billion investment in global miner Rio Tinto (RIO.AX) (RIO.L) on Monday as major Rio shareholders voiced growing concern over the deal
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