Solar to take on coal within three years!

Solar power will prove as cost effective as electricity from coal-fired power stations within three years, according to a new report from US environmental think tank the Earth Policy Institute.

Released last week, the study predicts that advancements in thin film photovoltaic (PV) cells that can be manufactured using cost-effective printing processes will ensure that production costs reach $1 per watt by 2010, making solar PV competitive with coal-fired electricity.

The report echoes predictions from US solar start up Nanosolar, which last month began shipping printed thin-film solar cells, which it claimed could soon be sold profitably for as little as $0.99 per watt.

The Earth Policy Institute also predicted that traditional silicon-based PV cells would become more cost effective over the next three years as raw material shortages are addressed and production facilities are scaled up.

"The average price for a PV module, excluding installation and other system costs, has dropped from almost $100 per watt in 1975 to less than $4 per watt at the end of 2006," the report noted. "With expanding polysilicon supplies, average PV prices are projected to drop to $2 per watt in 2010."

The study also concluded that PV solar panels are now the world's fastest growing energy source with worldwide production having increased by 50 per cent during 2007 to 3,800MW. It added that global PV cell production to date amounts to about 12,400MW - or enough to power 2.4m US homes.

Enhanced geothermal attracting $$$ in North America

Scandinavian financial services and investment giant Glitnir opened its New York office today, which will be headquarters to its U.S. subsidiary Glitnir Capital Corp.

Why the heck is this significant or worthy of a post? Part of the reason Glitnir is setting up shop in the United States is because of what it considers "America's huge geothermal energy potential."

And it's all baseload, baby.

The way this Icelandic investor sees it, the U.S. has the potential for a six-fold increase in its installed geothermal capacity, which would double existing global capacity. "Glitnir estimates that investments of $9.5 billion (U.S.) are required in projects currently under development, and that further $29.9 billion are needed between now and 2025 to develop and harness future resources," according to a company release. Obviously, Glitnir wants to apply its experiences from Norway and Iceland (an established geothermal superpower, you could say) and neighbouring countries to opportunities in the United States, and is prepared to inject a large part of the necessary capital. "Some smaller companies are lacking financial muscle to fully develop projects with potential to be profitable. Therefore, Glitnir expects considerable consolidation in the industry over the next few years."

According to a report from Dow Jones: "The firm is readying a formal announcement of a financing deal of more than $10 million behind Iceland America Energy Inc., a geothermal specialist with a deal to provide energy to PG&E through the Truckhaven project in California... Other recent deals include a $19 million financing of Western GeoPower Corp. (of Vancouver), a $23 million financing round for ThermaSource in Santa Rosa, Calif., and a $20 million debt round to help Nevada Geothermal Power Inc. conduct drilling operations."

Reuters reports that Glitnir plans to spend $1 billion on U.S. geothermal energy projects over the next five years, what it considers to be about 10 per cent of a market that it brands the "sleeping beauty of sustainable energy."

In a different press release, the company seems to expand its interest to the larger North American market -- i.e. Canada as well. "We see a considerable geothermal energy potential in 82 countries worldwide -- including the USA and Canada," said Arni Magnusson, managing director of Glitnir Global Sustainable Energy. I've since e-mailed the company to get clarification on its position regarding Canada. Perhaps it has its eye on oil sands opportunities. Perhaps more... will be interesting to get some insight on this. I'll keep you all posted.

The bottom line is that it's exciting to see some major money flowing to this area, backed by experience and know-how (keep in mind we're also seeing folks like Khosla investing in this area). Geothermal promises to be an important slice -- along with solar PV, solar thermal, wave energy, wind and hydroelectric -- of the overall clean energy needs of the continent.

by Tyler on Wed 05 Sep 2007