The production of renewable energy certificates hit another record in August, passing beyond three million for the first time in the 10 years of the scheme, and setting the scene for a surplus of 26 million RECs by the end of 2010. Data accumulated by broking house Wilson HTM shows 2.1 million RECs were generated from rooftop solar PV in August – steady with the previous month’s record installation of around 20,000 1kW solar PV systems – while RECs generated from wind energy jumped 62 per cent to 444,344.
This at least partly explains the recent softness in the REC price, which is back down to around $33.50/MWh – nowhere near the levels required for large-scale renewable investments. Wilson HTM analyst Jenny Cosgrove says the surplus of RECs by year end could reach 26 million, double the legislated target. Any surplus over 20 million will be absorbed because the large-scale renewable energy target (LRET) will be adjusted by increasing the target for 2012 and 2013 and decreasing it in later years.
Wind in their sails
The world’s largest shipbuilding company, Hyundai Heavy Industries is to follow its smaller rivals by making major investments in the wind energy industry to offset an expected slowdown in the marine building sector. Hyundai vice president Yoon Byung Soo told Bloomberg the company was seeking a 12-fold increase in sales from the wind energy sector to around $US1.7 billion by 2015, by building wind farms in South Korea and in overseas markets, particularly China.
“Although we entered into this business later than other global players, our goal is to become among one of the world’s top 10 makers by 2015,” Yoon said. Global demand for ships has been dampened by concerns about overcapacity, and ship-building revenues now account for just over one third of its sales as it has expanded into other industries, including solar energy equipment.
Yoon said wind energy sales could account for 10 per cent of total sales by 2020. Hyundai is “always looking for ways to increase sales, and that is why we have moved into new businesses such as wind and solar energy,” Yoon said. Daewoo, the world’s second-largest shipyard, said last week it aims to generate 30 per cent of its total sales from wind power in 2020.
Origin teams up for Indonesia geothermal play
Origin Energy has followed the path of the smaller geothermal brigade and established an offshore joint venture to try and capture the more easily developed volcanic resources of the Pacific “ring of fire”. Origin has teamed up with Tata, another major shareholder in Australian firm Geodynamics, and PT Supraco to form a consortium that has been awarded a geothermal concession in Northern Sumatra, Indonesia.
The partners believe the Sorik Marapi concession could support the development of 200–300 MW of geothermal generation capacity. Origin will hold a 47.5% effective interest. Testing will be conducted over the next 18 months and construction could begin in late 2012, which is quicker than any other comparable development in Australia. Origin operates “conventional” geothermal projects in New Zealand through its majority owned Contact Energy, and says it is confident geothermal can emerge as a major source of baseload energy.
Tata Power says it aims to achieve at least 25% of generation portfolio through renewable sources of energy by 2017,with geothermal energy being one of the prime renewable growth engines. Indonesia is is expected to have approximately 27,000 MW of potential conventional geothermal resources – but only has 1,196 MW in operation. However, it is offering generous tariffs to bring energy to areas which hitherto have had none or has had to rely on more expensive diesel plants.
Petratherm pause
Geothermal energy developer Petratherm has suffered a slight delay to its fracture stimulation program because of an apparent blockage in the Paralana 2 well. Petratherm says the well will require cleaning, and the company is looking at its equipment options. This could cause a delay of around a month but the company says it will not affect the timing of the planned main stimulation program, which is still scheduled for the December quarter.
Building bridges
Galaxy Resources has begun commissioning of the processing plant at its Mt Cattlin lithium mine in WA, but has had to secure bridging finance to tide it over because of delays in finalising its main debt facilities. Galaxy says it has obtained a $14 million bridging facility from the Creat Group because the loan facility, provided by China Development Bank and Austrian bank Raiffeisen Zentralbank Österreich was slightly delayed as a result of a protracted loan documentation process. The company says it still expects the final documentation to be executed and the $US105 million.
The production of renewable energy certificates hit another record in August, passing beyond three million for the first time in the 10 years of the scheme, and setting the scene for a surplus of 26 million RECs by the end of 2010. Data accumulated by broking house Wilson HTM shows 2.1 million RECs were generated from rooftop solar PV in August – steady with the previous month’s record installation of around 20,000 1kW solar PV systems – while RECs generated from wind energy jumped 62 per cent to 444,344.
This at least partly explains the recent softness in the REC price, which is back down to around $33.50/MWh – nowhere near the levels required for large-scale renewable investments. Wilson HTM analyst Jenny Cosgrove says the surplus of RECs by year end could reach 26 million, double the legislated target. Any surplus over 20 million will be absorbed because the large-scale renewable energy target (LRET) will be adjusted by increasing the target for 2012 and 2013 and decreasing it in later years.
Wind in their sails
The world’s largest shipbuilding company, Hyundai Heavy Industries is to follow its smaller rivals by making major investments in the wind energy industry to offset an expected slowdown in the marine building sector. Hyundai vice president Yoon Byung Soo told Bloomberg the company was seeking a 12-fold increase in sales from the wind energy sector to around $US1.7 billion by 2015, by building wind farms in South Korea and in overseas markets, particularly China.
“Although we entered into this business later than other global players, our goal is to become among one of the world’s top 10 makers by 2015,” Yoon said. Global demand for ships has been dampened by concerns about overcapacity, and ship-building revenues now account for just over one third of its sales as it has expanded into other industries, including solar energy equipment.
Yoon said wind energy sales could account for 10 per cent of total sales by 2020. Hyundai is “always looking for ways to increase sales, and that is why we have moved into new businesses such as wind and solar energy,” Yoon said. Daewoo, the world’s second-largest shipyard, said last week it aims to generate 30 per cent of its total sales from wind power in 2020.
Origin teams up for Indonesia geothermal play
Origin Energy has followed the path of the smaller geothermal brigade and established an offshore joint venture to try and capture the more easily developed volcanic resources of the Pacific “ring of fire”. Origin has teamed up with Tata, another major shareholder in Australian firm Geodynamics, and PT Supraco to form a consortium that has been awarded a geothermal concession in Northern Sumatra, Indonesia.
The partners believe the Sorik Marapi concession could support the development of 200–300 MW of geothermal generation capacity. Origin will hold a 47.5% effective interest. Testing will be conducted over the next 18 months and construction could begin in late 2012, which is quicker than any other comparable development in Australia. Origin operates “conventional” geothermal projects in New Zealand through its majority owned Contact Energy, and says it is confident geothermal can emerge as a major source of baseload energy.
Tata Power says it aims to achieve at least 25% of generation portfolio through renewable sources of energy by 2017,with geothermal energy being one of the prime renewable growth engines. Indonesia is is expected to have approximately 27,000 MW of potential conventional geothermal resources – but only has 1,196 MW in operation. However, it is offering generous tariffs to bring energy to areas which hitherto have had none or has had to rely on more expensive diesel plants.
Petratherm pause
Geothermal energy developer Petratherm has suffered a slight delay to its fracture stimulation program because of an apparent blockage in the Paralana 2 well. Petratherm says the well will require cleaning, and the company is looking at its equipment options. This could cause a delay of around a month but the company says it will not affect the timing of the planned main stimulation program, which is still scheduled for the December quarter.
Building bridges
Galaxy Resources has begun commissioning of the processing plant at its Mt Cattlin lithium mine in WA, but has had to secure bridging finance to tide it over because of delays in finalising its main debt facilities. Galaxy says it has obtained a $14 million bridging facility from the Creat Group because the loan facility, provided by China Development Bank and Austrian bank Raiffeisen Zentralbank Österreich was slightly delayed as a result of a protracted loan documentation process. The company says it still expects the final documentation to be executed and the $US105 million.
-- Giles Parkinson