By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

One Colorado co-op has set the stage to defect from one wholesaler because they don't believe it's moving fast enough to incorporate renewables into its portfolio - and the long-term implications are potentially startling. As Western Energy News reports:

The Delta-Montrose Electric Association will vote in October on rule changes that would allow another power supplier to help finance its exit from a contract with Tri-State Generation and Transmission. The association is among Tri-State’s largest customers, and its defection could heighten the risk of a mass exodus as others are forced to cover a larger share of costs for operating the wholesaler’s infrastructure, including its coal-fired power plants.

The problem, at least according to Delta's CEO, is the arbitrary cap Tri-States puts on local generation. That significantly limits the amount of renewable energy the co-op can have in its own portfolio. From Western Energy News:

Several co-ops have been stymied by Tri-State’s 5 percent cap on local generation, and Tri-State and Delta-Montrose continue to wait on a rehearing from the Federal Energy Regulatory Commission on the matter. “We’ve been stifled from our ability to have flexibility to develop those resources and make them economical for our membership under the confines of our current contract,” [Delta CEO Jansen] Bronec said.

While Delta's defection would have an immediate impact on Tri-State, the decision to move away from coal-generated electricity could have implications far beyond Colorado's borders. It should send the message to wholesalers like Tri-State that arbitrarily clinging to outdated fossil-fuel generation is a way to lose members at an alarming rate. As prices continue to drop for solar and wind production, co-ops are not going to sit idly by and pay higher prices just because the wholesaler doesn't want to change. The Solar Revolution is happening, and smaller entities like Delta are starting to catch on. Once they realize the power is in their hands, look for more wholesalers to bend to the will of their members - and look for more renewable energy to come online as they do so. More: Colorado co-op vote sets table for defection from coal power wholesaler

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

While the United States seems hellbent on starting new trade wars with countries around the world, the European Union (EU) has determined that its own sanctions on Chinese solar modules should come to an end, according to reporting by Reuters. As Reuters reports:

The EU first imposed anti-dumping and anti-subsidy measures for Chinese solar panels, wafers and cells in 2013 and extended them by 18 months in March 2017, signaling that they should then end. Chinese manufacturers have been allowed to sell solar products in Europe free of duties if they do so at or above a progressively declining minimum price. If sold for less than that price, they are subject to duties of up to 64.9 percent.

The trade measures will be allowed to expire on Monday. The reasons for the expiration mirror the same debate going on over tariffs in the United States, to wit: the EU is trying to strike a balance between EU module manufacturers (who believe the measures should stay in place) and installers (who want the measures to go away so less expensive modules can keep coming to the market and allowing installations to flourish). In the end, the European Commission, which coordinates economic policy for the EU, decided to let the measures expire. Which, of course, set off a panic in some quarters surrounding what was referred to as a 'flood' of modules being dumped on European markets at below-market prices, thereby depressing prices on modules throughout the supply chain. Again from Reuters:

EU ProSun, the grouping of EU producers that launched the initial complaint in 2012 and wanted a further extension of measures, had said that European manufacturers would be devastated if the measures ended. Beijing’s decision to limit installations in China meant producers there had some 30 gigawatts of excess capacity to shift with few markets to sell into after tariffs imposed by the United States and planned by India, the second and third largest markets behind China. The total EU market is some 7 gigawatts.

It's long been our contention that tariffs don't really help anyone, and that inexpensive modules help spread the use of solar throughout the world. It's why we've argued so vociferously against Trump's tariffs here in the United States. But this European issue isn't over yet - Reuters reports ProSun said it might launch a legal challenge to the expiration of the duties. This story is something to keep an eye on moving forward - it could reshape the global solar industry for years to come. More: EU ends trade controls on Chinese solar panels raising fears of cheap imports

Be Heard On SolarWakeup Live. Now that I am fully installed in the hub of solar, the SolarWakeup Live studio is also in operation. After a short summer break, come back to check out the podcasts from this platform which cover that most interesting people in solar doing the most important work. Being on SolarWakeup Live means sitting on the orange chair and introducing your point of view on the most influential newsletter in solar. If you have a story to tell and want to join me in person, send your pitch the next time you are in the Bay Area.
SB700 Heads To Governor Brown. The Senate has approved SB700 in concurrence and it has made its way to Governor Brown. Further info on the Assembly vote, it passed 57-18 in a giant bipartisan victory. Lastly, the delay in the bill vote I mentioned yesterday was due to a floor speech being left behind and needed to be brought to the Assemblymember.
Lion Point Offers To Take CSIQ Private. Lion Point was part of the Suniva process when they tried to get into the debt stack during the original bankruptcy. The reason was likely due to the investment that Lion Point had in Canadian Solar. Now Lion Point sees the potential for more upside with Canadian Solar as a private company and has offered to take it private for $250million. That’s what some folks would consider, funding secured.
More Debt For Cheaper Cost. The team at kWh Analytics has been doing nice work over the past 5 years to get to this point. The work has been to figure out what makes better solar installations and creates less risk for capital providers. Once that information has been credibly gathered, asset owners can engage with kWh to put an insurance product on their debt placement and significantly increase the amount of debt that it can put on the project cash flows. In the latest round, kWh insured cash flows for a portfolio of 50MW in Oregon. I also had to pleasure to hosting the kWh team at the Quick Mount manufacturing facility for a tour last week, this type of connection making is the reason I moved to San Francisco so we could all be a lot closer together.

Have a great day!

News

 

Have a great day!
Yann

The Energy Show: By Barry Cinnamon

The Energy Show: By Barry Cinnamon

Solar panels last 30 years or more. Almost all of the old panels that I have tested still crank out close to their original power output. Unfortunately, old solar panels are not compatible with the electronics of new systems – inverters, optimizers and microinverters. Sort of like that old CD-ROM software that is still good…if you could just get a computer that has a CD-ROM drive and runs Windows XP. Some people want to upgrade their old 14% efficiency panels with new 20%+ efficiency panels equipped with a battery storage system. One big benefit of upgrading or adding panels is that the 30% tax credit applies to all new equipment — including that old inverter that may have failed. I expect that commercial customers will also start to upgrade their systems, replacing thousands of old panels with thousands of new panels. So what do you do with these old panels? Even though they are constructed of recyclable glass, aluminum and silicon, there has not been a viable solution for recycling solar panels. Instead of dumping old solar panels in landfills, my friend and solar guru Sam Vanderhoof has a solution to this problem: his new company called Recycle PV Solar (recyclepv.solar). Sam estimates that about 95% of solar panels are going into landfills. 15 gigawatts of solar panels were installed in the U.S. in 2016 – that represents about 6 million pounds of panels being installed every day! On a cumulative basis there are about 53 gigwatts of panels currently installed in the U.S., or about 200 million solar panels. To visualize the enormity of this recycling challenge, a train filled with containers of solar panels would be 1,500 miles long! Please Listen Up to this Week’s Energy Show to learn more about the challenges, economics and opportunities of recycling solar panels.