As reported By Christopher Martin Bloomberg News 3/21/12

NEW YORK – U.S. solar developers are luring cash at record rates from investors ranging from Warren Buffett to Google and KKR by offering returns on projects four times those available for Treasury securities.

Buffett’s Berkshire Hathaway Inc., together with the biggest Internet search company, private equity companies, and insurers MetLife Inc. and John Hancock Life Insurance Co., poured more than $500 million into renewable energy in the last year. That’s the most ever for companies outside the club of banks and specialist lenders that traditionally back solar energy, according to Bloomberg New Energy Finance data.

Once so risky that only government backing could draw private capital, solar projects now are making returns of about 15 percent, according to Stanford University’s Center for Energy Policy and Finance. That has attracted a wider community of investors eager to cash in on earnings stronger than those for infrastructure projects such as toll roads and pipelines. “A solar power project with a long-term sales agreement could be viewed as a machine that generates revenue,” said Marty Klepper, an attorney at Skadden Arps Slate Meagher & Flom, which helped arrange a solar deal for Buffett. “It’s an attractive investment for any firm, not just those in energy.”

With 30-year Treasuries yielding about 3.4 percent, investors are seeking safe places to park their money for years at a higher return. Solar energy fits the bill, with predictable cash flows guaranteed by contract for two decades or more. Those deals may be even more lucrative because many were signed before the cost of solar panels plunged 50 percent last year.

Buffett’s MidAmerican Energy Holdings Co. agreed to buy the Topaz Solar Farm in California from First Solar Inc. on Dec. 7. The project’s development budget is estimated at $2.4 billion and it may generate a 16.3 percent return on investment by selling power to PG&E Corp. at about $150 a megawatt-hour through a 25-year contract, according to New Energy Finance calculations. It will have 550 megawatts of capacity and is expected to go into operation in 2015, making it one of the world’s biggest photovoltaic plants.

“After tax, you’re looking at returns in the 10 percent to 15 percent range” for solar projects, said Dan Reicher, executive director of the Stanford center. “The beauty of solar is, once you make the capital investment, you’ve got free fuel and very low operating costs.”

The long-term nature of solar power purchase deals makes them similar to some bonds. And because a solar farm is a tangible asset, these investments also function much like those for infrastructure projects, with cash flows comparable to toll roads, bridges and pipelines, said Stefan Heck, a director at McKinsey & Co. in New York who leads the firm’s clean-tech work. Once a project starts producing power, investors can earn a return that’s “higher than most bonds,” he said. “There are a lot of pension funds with long-term horizons that are very interested in this space.”

Governments remain the biggest backers of the solar industry; President Obama’s administration suffered criticism for investing in Solyndra, a solar manufacturer that went bankrupt last year. Worldwide, the U.S. Treasury’s Federal Financing Bank was the biggest asset-finance lender for renewable energy companies in the past year, arranging 12 deals worth $11.2 billion, according to New Energy Finance. The Brazilian development bank BNDES, Bank of America, and Banco Santander followed.

In 2009, solar technology was so unfamiliar that few banks would back projects that required billions in upfront investment and wouldn’t begin producing revenue for years, Klepper said. The biggest financiers for the industry that year were Madrid- based Santander, HSH Nordbank of Hamburg and Banco Bilbao Vizcaya Argentaria of Bilbao, Spain, New Energy Finance said.

That year, the Energy Department began funding a program to guarantee loans for solar farms and other renewable energy projects that supported almost $35 billion in financing before winding down in September. The government’s endorsement assuaged investors’ concerns and built up a bigger community of people who understand how to make money from solar deals, said Arno Harris, chief executive officer of Sharp Corp.’s renewable power development unit Recurrent Energy.

“Solar is now bankable,” Harris said. “When solar was perceived as more risky, it required a premium,” and now it’s “becoming part of a much broader capital market.”

Long-term power-purchase contracts are the key to making solar a reliable investment, Harris said. Utilities in sunny states such as California, Arizona, and Nevada have agreed to pay premiums for electricity generated by sunshine.

Read more: http://www.philly.com/philly/business/homepage/20120321_Solar_returns_beat_Treasuries__drawing_investors_from_Buffett_to_Google.html#ixzz1plWe9SD0
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The California-based solar leasing firm Sungevity announced a deal on Monday with home improvement giant Lowe’s that could make obtaining a personalized estimate for installing solar panels a push-button affair at Lowe’s outlets.

The deal gives Lowe’s just under a 20 percent stake in Sungevity, according to a solar industry source, though neither company would discuss specific dollar figures.

Under the agreement, scheduled to launch in 30 Lowe’s stores in California in July, customers will be able to access kiosks equipped with Sugevity’s iQuote system, a Web-based application that allows homeowners to simply enter their address and receive a firm installation estimate within 24 hours, eliminating the expense of an on-site visit.

The system combines aerial and satellite image analysis with research by Sungevity engineers at the company’s Oakland headquarters to assess the geometry of a home’s rooftop, its disposition to the sun at different times of day and year and any potential occlusions presented by nearby vegetation or built objects.

In addition to an installation estimate, customers can also get a visual rendering of their home with solar panels installed. And if interested parties provide information on typical power usage, such as an account number or past electric bills, the iQuote system can estimate potential savings expected from using the equipment.

The iQuote system can already be used online, and the company’s founder, Danny Kennedy, estimated that roughly 25,000 users had taken it for a test drive, though only about 1,500 of those had been converted to sales.

The deal with Lowe’s, Kennedy said, could help Sungevity — a petite player in the solar leasing market compared to bigger players like SolarCity of San Mateo, Calif., or San Francisco-based SunRun, which raised $200 million in financing earlier this month — significantly expand its reach.

“This will help us to get in front of thousands more customers, in front of middle America,” Kennedy told The Huffington Post. “We’ll be taking it to the ‘burbs, as it were.”

Despite tough economic times and often uncertain economic incentives, a number of analyses predict a boom year for solar power in 2011.

A report published in December by IDC Energy Insights, a market research firm based in Framingham, Mass., estimated following a healthy 2010, the solar market in North America could well see two gigawatts of solar power installations this year.

Jay Holman, the report’s lead analyst, told The Huffington Post that those numbers had been revised somewhat, but that 2011 was still expected to bring in 1.6 gigawatts of new solar installations, roughly double the 2010 total.

Part of the reason for America’s interest in solar energy may be a decline in the robust incentives the once drew a deluge of equipment and installations to the European market, particularly countries like Germany, the Czech Republic and Italy, Holman said. Those countries have begun to scale back their subsidies, forcing companies to look to other markets.

Meanwhile, federal tax incentives, including a 30 percent tax cash grant extended through the end of 2011, have helped keep solar alive. Several states have healthy incentives in place as well, including the eight states where the Sungevity/Lowes deal will eventually be rolled out: Arizona, California, Colorado, Delaware, Maryland, Massachusetts, New Jersey and New York.

Holman also said solar leasing companies like Sungevity, SunRun and Solar City, which retain ownership of the equipment while reducing or, in many cases, eliminating the up-front installation costs, also help drive the expansion of solar power.

“Obviously, we’re obsessed with being customer-focused,” said Kennedy. “We hope that this deal will make going solar as easy as shopping for light bulbs.”

David Parkinson – Globe and Mail Update Dec. 31, 2010 5:41PM EST

When Arthur Berman argues that natural gas is destined to have better prices in 2011 than it had in a mediocre 2010, he isn’t talking about technical price charts, or historical correlations, or relative valuations, or even supply-and-demand balances.

No, his view is more down to earth. He’s talking about geology.

“I’m a working petroleum geologist, I’m not a financial analyst,” said Mr. Berman, a prominent Houston-based energy consultant whose controversial views on the North American shale-gas phenomenon have raised eyebrows in the industry. “We probably have a lot less natural gas resource than is commonly believed. “So, what I see is that natural gas prices will not remain depressed. I’m not a price forecaster, but I have every reason to believe that a long position in natural gas [investing] is a smart position.”

The natural gas pricing story has been all about shale gas in 2010, and its fate in 2011 is closely tied to this big wild card, too. Thanks to advances in drilling technology for extracting gas from seams in shale rock, there has been a rapid expansion of drilling in shale plays that were once considered impossible to economically exploit. The resulting boom in production has unleashed substantial new supplies on the North American marketplace, outstripping demand and bloating inventories. Volumes of gas in U.S. storage facilities swelled to record levels last month – 40 per cent higher than they were 10 years ago, almost 20 per cent higher than five years ago – even as gas consumption has rebounded to near pre-recession levels.

That kept natural gas prices low and in decline for most of 2010. Even with the high-demand winter season approaching, prices struggled to stay above $4 (U.S.) per million British thermal units on the New York Mercantile Exchange well into December – their weakest December prices in nearly a decade.

The majority of industry analysts believe the shale-gas boom will continue to keep supplies well above consumption levels in 2011, weighing down natural gas prices. “The fundamentals of oversupply are not likely to change in 2011,” said Peter Tertzakian, chief energy economist at ARC Financial Corp. in Calgary. “Since we expect U.S. natural gas demand growth to come to almost a standstill in 2011 and supply growth to stay in positive territory, the inventory glut remains a concern,” said analyst Dominic Schnider of UBS AG in a recent research note.

But a vocal minority – led by the likes of Mr. Berman and renowned long-time oil and gas forecaster Henry Groppe – believe shale gas may be a bubble that could begin to burst in 2011. They are concerned with both the extremely rapid rates at which production from new shale-gas wells drops off, and the high costs of development and production that suggest to them that producers won’t be willing to keep up the high pace of drilling in shale plays at these unprofitable prices much longer. “[Shale] is a great new resource. I don’t dispute for a moment the size of the resource or its importance,” said Mr. Berman, who, like Mr. Groppe, serves as a consultant to Toronto-based fund management company Middlefield Capital Corp. “What I question is, ultimately, what it will cost to produce the resource.” Mr. Berman’s analysis tells him that North American shale-gas reserves have been exaggerated; that “more than half of the commercial reserves are produced in the first year” of each well; and that the full costs for producing shale gas work out to about $7 per million BTU – far above the current selling price.

He believes companies have been encouraged to aggressively drill U.S. shale plays due to regulations requiring producers to either initiate drilling on their properties or lose them – they want to secure the land. But that won’t continue through 2011, he said. “As I listen to the comments of the executives of the companies that are most active in the shale plays in the U.S., they’re all saying that they’re going to continue to hold the land through the first half of 2011, and then you’re going to see a big decrease in [drilling] rig count,” Mr. Berman said. “They’re smart people; they’re not going to continue to do this beyond the time that they have to.” Instead, he said, companies will redirect their drilling rigs to oil properties, where the cost-to-price equation is much more profitable. That will slow natural gas volumes and change market perception of shale’s potential, he said – and that will push up prices. “It would not surprise me to see the end of 2011 start to see a notable recovery of price,” he said.

Mr. Tertzakian acknowledges that natural gas prices must eventually revert to at least high enough to cover “the marginal costs of producing natural gas in North America,” which he pegs at the $5 to $6 range. However, he doesn’t see that happening in 2011 – and he doesn’t envision a major drop-off in shale drilling or a serious hit to supplies over the next year. “There’s no shortage of gas in the ground. We can debate the technical nuances, but at the end of the day, it takes a certain amount of money to exploit these things – the only restriction is the availability of capital.” He expects some slowdown in natural-gas rig count in the second half of next year could moderate supplies, but that won’t do much to make up for what should continue to be a weak market in the first half – making for another year of 2010-like prices.

“Prices in 2011 will be similar to 2010,” agreed Bill Gwozd, vice-president of gas services at Calgary energy consulting and analysis firm Ziff Energy Group. “That’s not a healthy price for producers – but it’s quite nice for consumers.”

By Andrew Maykuth

Inquirer Staff Writer

Posted Jan. 13, 2011

A coalition of electrical-power interests is encouraging New Jersey Gov. Christie to veto a controversial bill that would subsidize development of a Gloucester County power plant that they say would unsettle the region’s energy markets.

The bill’s sponsors said the legislation approved Tuesday by the New Jersey Legislature would lower energy rates. But opponents, including power generators such as Exelon Corp. and large industrial consumers, call it an anticompetitive sweetheart deal that will cost consumers in the long run.

“We cannot afford an energy surcharge to guarantee billions of dollars of revenue to a few select developers,” said George M. Waidelich, vice president of energy operations for Safeway Inc., which says it now spends about $2 million a year on electricity for its five Genuardi’s stores in South Jersey.

The measure would provide a guaranteed long-term income for developers of several large power plants. The legislation was known as the “LS Power Bill” because its initial aim was to provide guarantees for LS Power Development L.L.C. to build a giant natural-gas power plant in West Deptford, the hometown of state Senate President Stephen Sweeney (D., Gloucester).

Tom Hoatson, director of regulatory affairs for LS Power, said the guarantees were necessary to obtain financing to construct the 640-megawatt plant along the Delaware River, which would cost from $800 million to $1 billion.

Hoatson said the bill would provide the New Brunswick company “an opportunity to compete with other generators.” The plant would employ up to 500 people to build and about 25 people to operate.

Christie spokesman Michael Drewniak said the bill was under review. Legislative sources said the governor was expected to sign it because his office was consulted in drafting amendments that addressed some of the administration’s concerns.

In the arcane world of wholesale electrical markets, the New Jersey bill has attracted intense attention because its opponents say it would turn back the clock on years of efforts to open electrical-power markets to more competition.

But supporters of the legislation say those markets, which are managed by regional power-grid operator PJM Interconnection Inc., have failed to lower prices for N.J. residents.

And they say that many of the interests opposed to the N.J. legislation are incumbent power generators like Exelon Corp. and Public Service Enterprise Group of Newark, which stand to gain by keeping new power generators out of the market.

“I don’t think it’s a system that encourages building new generation to keep prices down,” said Stefanie Brand, the New Jersey Rate Counsel, the state’s consumer advocate.

“The market is not a true free market,” she said. “It’s a constructed market that was created by PJM, and as far as we’re concerned, it doesn’t work.”

N.J. officials complain that the Garden State has suffered more than its western neighbors because it has paid up to $1.9 billion a year in extra capacity and congestion charges that PJM imposes on power transmitted into the state.

Lee A. Solomon, a Christie appointee who is president of the N.J. Board of Public Utilities, told PJM in December that “it is incumbent upon New Jersey to promote new generation in locations where it is needed the most to ensure reliability and to control costs.”

Sweeney, whose West Deptford hometown would host the LS plant, introduced the legislation that would allow the board to sign long-term contracts with several power generators to provide up to 2,000 megawatts of electricity at guaranteed rates. If market rates fall below the threshold, N.J. ratepayers would pick up the tab.

“Consumers have been paying inflated capacity charges,” said Derek Roseman, Sweeney’s spokesman. “This is a chance to reverse that. How can that not be a good thing for consumers?”

The Compete Coalition, a Washington lobbying group that promotes open electrical markets, has appealed to Christie’s antitax sentiments by branding the bill the “Energy Tax of 2011.”

John E. Shelk, president of the Electric Power Supply Association, testified in December that the bill would “artificially depress” rates in the short term, but would discourage other generators from investing in the future.

Shelk said the bill likely would be challenged because it would interfere with federally sanctioned wholesale power markets.

Public Service Enterprise Group, the politically powerful Newark energy company that operates the PSE&G utility, announced its opposition to the measure last week.

Anne Hoskins, the company’s senior vice president for public affairs, said the state’s intervention in the past requiring utilities to enter into long-term supply contracts had “disastrous results.”

In the next six years, PSE&G will pay $1 billion for the remaining costs of the long-term contracts, she said. And Atlantic City Electric recently received approval to raise its customers’ bills 5 percent to recover the costs of its out-of-market contracts.

“Subsidies are a slippery slope,” she said, “and will drive away other nonsubsidized private investment in New Jersey.”


CHRIS KAHN | 11/ 9/10 06:06 PM | AP

What’s Your Reaction?

Earns Exxon Mobil
 

NEW YORK — Pretty soon, Big Oil will be more like Big Gas.

The major oil companies are increasingly betting their futures on natural gas, with older oil fields producing less crude and newer ones either hard to reach or controlled by unfriendly nations.

They are focusing more than ever on natural gas because it burns cleaner than oil and is gaining traction as a fuel for transportation. The latest move came Tuesday, when Chevron made a $4.3 billion deal to buy up natural gas fields in the Northeast.

Earlier this year, Exxon Mobil bought XTO Energy to become America’s largest producer of natural gas. And Royal Dutch Shell expects natural gas to make up half its total global production in two years.

“If you look at most of the big developments now, they’re not about oil, it’s gas,” said Oppenheimer & Co. analyst Fadel Gheit.

The world will continue to run on crude oil for years to come, but even with new discoveries, oil production is expected to flatten out during the next few decades, according to the latest estimates from the International Energy Association.

Far down the road, Gheit believes, Exxon and Shell will lead the energy industry into a new era where oil companies devote most of their efforts to producing natural gas. The Energy Information Administration expects worldwide natural gas production to increase 46 percent from 2007 to 2035, compared with a 30 percent increase in world production of crude and natural gas liquids.

Gas is becoming more attractive to the oil companies because it’s more accessible. While OPEC controls most of the world’s oil reserves, it controls less than half of the natural gas reserves.

In the United States and Europe, natural gas is primarily used to heat homes. About three in five American homes use it for heat. And more and more power plants are using it to generate power. Natural gas is used to generate 23 percent of electricity in the U.S., up from 16 percent a decade ago.

If the country focuses more on reducing greenhouse gas emissions in years to come, the trend should accelerate. Natural gas emits less carbon dioxide than other fossil fuels.

Natural gas is used in small amounts for transportation in the U.S., mostly for city buses and garbage trucks. The oil industry is pressing Congress to add financial incentives for trucking and freight companies to convert their fleets.

Until recently, Big Oil watched the rise of U.S. natural gas from the sidelines, and smaller companies drilled into underground layers of shale. New techniques allowed companies to drill parallel to the ground and hit previously tough-to-reach deposits, helping them tap ever larger bounties of shale gas.

Production costs fell. Drilling rigs started popping up along America’s shale-rich regions in Appalachia, Texas and North Dakota. Experts now say the U.S. is sitting on enough natural gas to last the country for the next century.

This year, Big Oil jumped in. Exxon bought XTO for more than $30 billion, immediately making it America’s largest natural gas producer. XTO so far has helped Exxon increase its natural gas production by 50 percent.

Then Shell agreed to buy East Resources Inc. for $4.7 billion, and China’s state-owned offshore oil and gas company, CNOOC Ltd., invested $2.16 billion in oil and gas fields owned by Chesapeake Energy.

Production jumped to 1.94 trillion cubic feet in August, the highest monthly total since January 1973, according to available government data.

“Production is screaming,” said E. Russell Braziel, managing director of BENTEK Energy, which tracks natural gas prices in the U.S.

The U.S. now holds about 3.82 trillion cubic feet of natural gas in storage, about 10 percent more than the average over the past five years. And the industry keeps pumping more out of the ground.

There are challenges. The same low prices that make the assets affordable have caused some companies, namely ConocoPhillips, to pull back on production. Natural gas has dropped about 24 percent this year.

And people near shale rigs complained that groundwater supplies were contaminated by the industrial chemicals used in the drilling process. The Environmental Protection Agency is studying the possible effects on drinking water and the public health.

Still, most of the big companies continue to press ahead with multibillion-dollar acquisitions.

“When the market is weak, that’s when it’s time to act,” Argus Research analyst Phil Weiss said.

As reported by Energy Information Administration (EIA) Logo - Need Help? 202-586-8800

Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. The production of natural gas from shale formations has rejuvenated the natural gas industry in the United States.

Did You Know?

Sedimentary rocks are rocks formed by the accumulation of sediments at the Earth’s surface and within bodies of water. Common sedimentary rocks include sandstone, limestone, and shale.

U.S. Natural Gas Supply, 1990-2035
Chart showing U.S. natural gas supply, 1990-2035. Source, EIA Annual Energy Outlook 2010

Did You Know?

Shale gas in 2009 made up 14% of total U.S. natural gas supply. Production of shale gas is expected to continue to increase, and constitute 45% of U.S. total natural gas supply in 2035, as projected in the EIA Annual Energy Outlook 2011.

Does the U.S. Have Abundant Shale Gas Resources?

Of the natural gas consumed in the United States in 2009, 87% was produced domestically; thus, the supply of natural gas is not as dependent on foreign producers as is the supply of crude oil, and the delivery system is less subject to interruption. The availability of large quantities of shale gas will further allow the United States to consume a predominantly domestic supply of gas.

According to the EIA Annual Energy Outlook 2011, the United States possesses 2,552 trillion cubic feet (Tcf) of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for 827 Tcf of this resource estimate, more than double the estimate published last year. At the 2009 rate of U.S. consumption (about 22.8 Tcf per year), 2,552 Tcf of natural gas is enough to supply approximately 110 years of use. Shale gas resource and production estimates increased significantly between the 2010 and 2011 Outlook reports and are likely to increase further in the future.

Where is Shale Gas Found?

Shale gas is found in shale “plays,” which are shale formations containing significant accumulations of natural gas and which share similar geologic and geographic properties. A decade of production has come from the Barnett Shale play in Texas. Experience and information gained from developing the Barnett Shale have improved the efficiency of shale gas development around the country. Another important play is the Marcellus Shale in the eastern United States. Surveyors and geologists identify suitable well locations in areas with potential for economical gas production by using both surface-level observation techniques and computer-generated maps of the subsurface.

Map of Shale Gas Plays for the Lower 48 States
Source: U.S. Shale Plays Map, http://www.eia.doe.gov/oil_gas/rpd/shale_gas.pdf

How is Shale Gas Produced?

Two major drilling techniques are used to produce shale gas. Horizontal drilling is used to provide greater access to the gas trapped deep in the producing formation. First, a vertical well is drilled to the targeted rock formation. At the desired depth, the drill bit is turned to bore a well that stretches through the reservoir horizontally, exposing the well to more of the producing shale.

Hydraulic fracturing (commonly called “fracking” or “hydrofracking”) is a technique in which water, chemicals, and sand are pumped into the well to unlock the hydrocarbons trapped in shale formations by opening cracks (fractures) in the rock and allowing natural gas to flow from the shale into the well. When used in conjunction with horizontal drilling, hydraulic fracturing enables gas producers to extract shale gas at reasonable cost. Without these techniques, natural gas does not flow to the well rapidly, and commercial quantities cannot be produced from shale.

Schematic Geology of Natural Gas Resources

Graphic showing the schematic geology of natural gas resources
Source: modified from U.S. Geological Survey Fact Sheet 0113-01.

How is Shale Gas Production Different from Conventional Gas Production?

Conventional gas reservoirs are created when natural gas migrates toward the Earth’s surface from an organic-rich source formation into highly permeable reservoir rock, where it is trapped by an overlying layer of impermeable rock. In contrast, shale gas resources form within the organic-rich shale source rock. The low permeability of the shale greatly inhibits the gas from migrating to more permeable reservoir rocks. Without horizontal drilling and hydraulic fracturing, shale gas production would not be economically feasible because the natural gas would not flow from the formation at high enough rates to justify the cost of drilling.

Diagram of a Typical Hydraulic Fracturing Operation

Diagram of a Typical Hydraulic Fracturing Operation
Source: ProPublica, http://www.propublica.org/special/hydraulic-fracturing-national

What Are the Environmental Issues Associated with Shale Gas?

Natural gas is cleaner-burning than coal or oil. The combustion of natural gas emits significantly lower levels of key pollutants, including carbon dioxide (CO2), nitrogen oxides, and sulfur dioxide, than does the combustion of coal or oil. When used in efficient combined-cycle power plants, natural gas combustion can emit less than half as much CO2 as coal combustion, per unit of energy released.

However, there are some potential environmental issues that are also associated with the production of shale gas. Shale gas drilling has significant water supply issues. The drilling and fracturing of wells requires large amounts of water. In some areas of the country, significant use of water for shale gas production may affect the availability of water for other uses, and can affect aquatic habitats.

Drilling and fracturing also produce large amounts of wastewater, which may contain dissolved chemicals and other contaminants that require treatment before disposal or reuse. Because of the quantities of water used, and the complexities inherent in treating some of the chemicals used, wastewater treatment and disposal is an important and challenging issue. If mismanaged, the hydraulic fracturing fluid can be released by spills, leaks, or various other exposure pathways. The use of potentially hazardous chemicals in the fracturing fluid means that any release of this fluid can result in the contamination of surrounding areas, including sources of drinking water, and can negatively impact natural habitats.

SOUTH PHILADELPHIA – November 18, 2010 (WPVI) — When you think of the Eagles you think GREEN – and we’re not just talking about the

The Eagles organization has long been committed to the environment and energy sustainability. Well, today the Eagles will take a bold move when they make Lincoln Financial Field the first major sports stadium in the world to generate its own electricity.

In the coming months the Linc will be outfitted with approximately eighty 20-foot tall spiral shaped wind turbines on the top rim of the stadium and 2,500 solar panels on the façade. Along with the state of the art power system, energy will be generated on-site.

The project will cost an estimated $30-million, but the Eagles expect to save an estimated $60-million in energy costs in the coming years.

The stadium will generate enough electricity to power 26,000 homes – far more than needed to power the stadium. So, the Eagles will be selling excess electricity back to the local power grid.

Two hundred people are expected to be employed to design and install the system. Six hundred more jobs are expected to be created because the Eagles are committed to using people from the local community through contractors and vendors.

More information on the project is scheduled to be released later today at Lincoln Financial Field by Eagles owner Jeffrey Lurie, Philadelphia Mayor Michael Nutter and NFL Commissioner Roger Goodell.

As reported in NJ BIZ

The Garden State’s status as a solar-energy leader will get a major boost Wednesday, when officials break ground on what will be the largest solar energy farm in the Northeast.

Con Edison Development, a subsidiary of Consolidated Edison Inc., and Texas-based Panda Power Funds plan to build a 20-megawatt solar farm on a 100-acre site in Pilesgrove. The installation, expected to go online in May 2011, will feature 71,400 solar panels and cost between $85 million and $90 million.

solar

A rendering of the solar farm, which will be the largest in the Northeast.

Con Edison Development and Panda announced their intent to partner on solar projects in April.

Steve Tessum, vice president of east region management at Panda and manager of the Pilesgrove project, said South Jersey was chosen as the site in part because of the state’s support of solar energy.

“We did look at other states,” Tessum said. “Quite frankly, the regulatory climate in New Jersey is friendly to somebody who wants to own and develop a solar-power utility.”

The farm will be connected directly to the electrical grid via the Atlantic City Electric distribution system, said Mark Noyes, vice president of Con Edison Development.

Noyes said the arrangement with Panda is a 50-50 partnership: Panda is taking the lead in development, Con Edison will take the lead in operations and energy management, and construction will be split.

“The reason it makes sense to partner with Panda is, much like our background, they’re developers and they know how to develop projects, whether natural gas and oil, wind, solar,” Noyes said. “The development expertise is really what drives the development.”

Noyes said the property had originally been slated for the development of 67 homes, each with its own septic tank.

“The town opposed that type of taxing, from an environmental and economic standpoint,” Noyes said. “The construction of those homes never got through the planning board, so we were able to go in and acquire that land from the local player for this solar farm.”

Tessum said the solar farm doesn’t require any municipal infrastructure development, as the housing plot would have.

Con Edison Development said the installation is expected to generate enough electricity to power 5,100 homes.

E-mail Jared Kaltwasser at jkaltwasser@njbiz.com

Solar Impulse, piloted by André Borschberg, flew for 26 hours and reached a height of 28,543 feet, setting a record for the longest and highest flight ever made by a solar plane.
By ALAN COWELL
Published: July 8, 2010

PARIS — Slender as a stick insect, a solar-powered experimental airplane with a huge wingspan completed its first test flight of more than 24 hours on Thursday, powered overnight by energy collected from the sun during a day aloft over Switzerland.

The organizers said the flight was the longest and highest by a piloted solar-powered craft, reaching an altitude of just over 28,000 feet above sea level at an average speed of 23 knots, or about 26 miles per hour.

The plane, Solar Impulse, landed where it had taken off 26 hours and 9 minutes earlier, at Payerne, 30 miles southwest of the capital, Bern, after gliding and looping over the Jura Mountains, its 12,000 solar panels absorbing energy to keep its batteries charged when the sun went down.

The pilot, André Borschberg, 57, a former Swiss Air Force fighter pilot, flew the plane from a cramped, single-seat cockpit, buffeted by low-level turbulence after takeoff and chilled by low temperatures overnight.

“I’ve been a pilot for 40 years now, but this flight has been the most incredible one of my flying career,” Mr. Borschberg said as he landed, according to a statement from the organizers of the project. “Just sitting there and watching the battery charge level rise and rise, thanks to the sun.” He added that he had flown the entire trip without using any fuel or causing pollution. The project’s co-founder, Dr. Bertrand Piccard, who achieved fame by completing the first nonstop, round-the-world flight by hot air balloon in 1999, embraced the pilot after he landed the plane to the cheers of hundreds of supporters.

“When you took off, it was another era,” The Associated Press quoted Dr. Piccard as saying. “You land in a new era where people understand that with renewable energy you can do impossible things.”

The project’s designers had set out to prove that — theoretically at least — the plane, with its airliner-size, 208-foot wingspan, could stay aloft indefinitely, recharging batteries during the day and using the stored power overnight. “We are on the verge of the perpetual flight,” Dr. Piccard said.

The project’s founders say their ambition is for one of their craft to fly around the world using solar power. The propeller-driven Solar Impulse, made of carbon fiber, is powered by four small electric motors and weighs around 3,500 pounds. During its 26-hour flight, the plane reached a maximum speed of 68 knots, or 78 miles per hour, the organizers said.

The seven-year-old project is not intended to replace jet transportation — or its comforts.

Just 17 hours after takeoff, a blog on the project’s Web site reported, “André says he’s feeling great up there.”

It continued: “His only complaints involve little things like a slightly sore back as well as a 10-hour period during which it was minus 20 degrees Celsius in the cockpit.”

That made his drinking water system freeze, the post said and, worst of all, caused his iPod batteries to die.

As reported by EIA’s Energy in Brief

Worldwide wind power generation exceeded 200 billion kilowatthours in 2008, which is equivalent to the annual electricity consumption of over 18 million average households in the United States. Wind generation increased by about 25% from 2007 to 2008, and has more than tripled since 2003. This growth is mostly due to capacity increases in the United States, China, India, and Western Europe. Despite this growth, the world still generated less than 1% of its total electricity from wind power in 2008.

Line chart showing the increase in wind electricity generation by region from 1980 - 2008. Source: Energy Information Administration, International Energy Statistics

Pie chart showing the contribution to global wind generation in 2008. United States 25.1%; Germany 18.5%; Spain 14.5%; India 7.2%, China 6.2%, United Kingdom 3.3%; Denmark 3.2%; Italy 3.0%; France 2.6%; Portugal 2.6% and Rest of World 13.9%. Source: Energy Information Administration, International Energy Statistics

Bar graph showing the share of total electricity generation from wind in 2008. United States 1.3%; Germany 6.5%; Ireland 8.6%; Spain 10.4%; Portugal 12.6% and Denmark 19.2%. Source: Energy Information Administration, International Energy Statistics

Did You Know?

A feed-in tariff is a financial incentive that encourages the adoption of renewable electricity. Under a feed-in tariff, government legislation requires electric utilities to purchase renewable electricity at a higher price than the wholesale price. This incentive allows the renewable generator to achieve a positive return on its investment despite the higher costs associated with these resources.

Did You Know?

Because the wind does not blow 24 hours a day and because the timing of it cannot be controlled, electricity from wind is not available on demand. Although wind makes up a significant portion of Denmark’s generation capacity, the intermittent nature of wind has been mitigated by the connection of the Danish electrical grid to the grids of Germany, Sweden, and Norway. These interconnections allow Denmark to export electricity when wind power generation exceeds demand and import electricity when there is not enough wind.

The United States Generated the Most Wind Electricity in 2008

Overtaking the previous leader Germany, the United States led all other countries in wind power generation in 2008. The remaining top-ten wind power generators, listed in descending order, were Spain, India, China, the United Kingdom, Denmark, Italy, Portugal, and France. Although about 60 countries reported significant wind power generation in 2008, these top-ten countries accounted for more than 85% of all wind generation worldwide. Wind generation in China has grown an average of 70% annually since 2003, in spite of delays in bringing some of its new capacity online.

Denmark Generates the Highest Percentage of its Electricity Supply from Wind

Nearly 20% of Denmark’s electricity generation came from wind in 2008. The next highest levels of wind penetration are found in Portugal at 13%, Spain at 10%, Ireland at 9%, and Germany at 7%. No other country surpassed 5% penetration, including the United States, which generated over 1% of its electricity from wind in 2008.

Less than 2% of Global Wind Capacity is Offshore

According to the World and European Wind Energy Associations, installed global wind capacity reached 159,000 megawatts by the end of 2009, with only about 2,000 MW of that total located offshore. Offshore development lags behind onshore generally due to higher costs and technology constraints. Western Europe is home to nearly all existing offshore capacity — although prototype turbines for China’s first offshore farm were connected to the grid in 2009. As of June 2010, there are no operating offshore wind farms in the United States, although the 420-megawatt Cape Wind offshore project off the Massachusetts coast had secured local, State, and Federal approval as of April 2010.

Wind Power Generation is Expected to Continue Growing

Over the lifetime of the plant, electricity from wind power generally costs more than electricity from power plants burning fossil fuels.1 However, wind power is expected to continue to grow worldwide because of favorable government policies. Multiple types of government support exist, including a production tax credit and State renewable electricity portfolio standards in the United States, a feed-in tariff (see the “Did You Know” box on the left) in Germany, and wind capacity targets in China. According to EIA’s International Energy Outlook 2010, wind generation is expected to account for more than 3% of total world electricity by 2020.