Report from the Renewable Energy World Conference

March 16, 2009

Optimism Abounds Throughout Renewable Energy Industry

Las Vegas, United States [RenewableEnergyWorld.com]

Last week the editors at RenewableEnergyWorld.com and Renewable Energy World magazine traveled to Las Vegas to attend the 6th annual Renewable Energy World North America (REWNA) Conference and Expo. With almost twice the attendance of last year's event and more than double the exhibitors, the show's exponential growth in spite of a dismal economy is a testament to the strength of the renewable energy industry.

The problems for companies created by the recession are apparent. But the enthusiasm and recognition of the incredible prospects for renewables dominated the discussion.

We captured video interviews with dozens of experts in the renewable energy field on topics including energy storage and the smart grid, the American Recovery and Reinvestment Act, Hydropower, CPV, algae and much, much more. Taken together, the videos show an upbeat, enthusiastic renewable energy industry despite all of the economic turmoil surrounding it — truly the glimmer of hope that is needed today.

The editors started the week with a tour of the El Dorado thin-film solar facility (see lead photo). The 10-MW project is the largest thin-film installation in North America, covering 88 acres with 167,400 First Solar Cadmium Telluride panels.

When the conference started, editors roamed the conference floor gathering a range of video interviews with analysts and business executives on new technologies and policy developments.

Interested in tracking what's happening in the broader clean tech space? Check out our conversation with RenewableEnergyWorld.com contributing writer Clint Wilder on Clean Edge's Clean Energy Trends 2009 Report, which includes the 5 key technologies to watch in clean tech as well as Wilder's comments on the state of the industry.

One of the most popular energies in the space is algae. While there weren't many algae companies at the conference, there was still a lot of talk about what role this prolific organism will play in the fuel market. Editor Jennifer Runyon spoke with Mark Braly about what experts are saying about this burgeoning industry.

Of course, finance is a big issue in the renewable energy space. Braly and Runyon also sat down to talk about the lack of project finance and what types of projects are actually getting the capital to move forward. Braly talked about utility PV projects as well, which are rapidly gaining ground. According to the Solar Electric Power Association, there are now 2,200 MW of projects being pushed forward by 10 utilities around the U.S. This made utility involvement in the solar industry a hot topic at the conference.

While interest in traditional PV is still growing, new solar technologies are sprouting up everywhere, increasing the amount of attention the industry is getting. Stephen Lacey spoke with one of the oldest players in the Concentrating PV space, Amonix, about what the increased competition means for well-established players.

Darren Kimura, CEO of Sopogy, also spoke with Lacey about the company's micro-CSP parabolic trough collectors, which are extending the solar thermal industry to a variety of meet on-site generation needs.

Sopogy is currently working on a major project in Spain — one of many solar projects being developed for the country's very hot solar market. But the 2009 cap on installations will certainly dampen the Spanish industry's growth this year, which may provide more incentive for Spain-based companies to branch out into other markets. Brian Gaylord, a market analyst for the Spanish Trade Commission, talked with Lacey about the growing international presence of Spanish companies.

This trend is certainly being felt here in the U.S. wind industry as companies from Spain and other European countries buy up and develop American wind assets. News Editor Graham Jesmer spoke with the new CEO of the American Wind Energy Association, Denise Bode, about the incredible growth in foreign and U.S. wind businesses, which put around 8,300 MW of capacity online last year.

Wind is a great resource to harvest, but there is also a need to harvest more stable forms of baseload renewables. The answer is geothermal, said Geothermal Energy Association Executive Director Karl Gawell in an interview with Jesmer.

We may see a slowdown in wind and other renewables well into this year, but the recent stimulus package, which sets aside $67 billion for clean energy, energy efficiency and smart-grid technologies may reverse that downward trend. Jesmer caught up with John McKinsey of the law firm Stoel Rives to talk about when the stimulus may have an impact. He also talked with Piper Jaffray's Chris Flannery about the details of the program and the need to create more project finance opportunities for the industry.

All in all, the conference was a great success. The problems for companies created by the recession are apparent. But the enthusiasm and recognition of the incredible prospects for renewables dominated the discussion. We hope you enjoy the interviews. We'll see you next year in Austin, Texas.

Photo Credit: David Wagman

ACORE - American Counsel on Renewable Energy - 2009 Stimulus Plan Summary

Overview

Renewable Energy Provisions

American Recovery and Reinvestment Act of 2009

The Congress has passed and the President has signed the American Recovery and Reinvestment Act of 2009 into law. This massive $800 billion spending bill, being truly unprecedented in modern times, will drive new national strategies in renewable energy, smart grid, transmission, advanced vehicles, energy efficiency, and many other aspects of energy, environment, climate and sustainability that were at the heart of the 2008 Presidential election. This memorandum provides ACORE members with a summary of the new program.

The full text of the tax provisions in the stimulus package can be found here.

http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf

The full text of the appropriation provisions in the stimulus package can be found here.

http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf

Tax Incentives

Three-Year Extension of PTC: The bill provides a three-year extension of the Production Tax Credit (PTC) for electricity derived from wind facilities placed in service by December 31, 2012, as well as for geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities placed in service by December 31, 2013.

Investment Tax Credit (ITC) Accessible to All Renewable Energy: The bill provides project developers of wind, geothermal, biomass and other technologies eligible for the PTC, the option of instead utilizing the 30% ITC that previously only applied to solar and other clean technology projects.

Repeals Subsidized Energy Financing Limitation on ITC: The bill would allow businesses and individuals to qualify for the full amount of the ITC, even if their property is financed with industrial development bonds or other subsidized energy financing.

Grant Program in Lieu of Tax Credits: The bill allows project developers to apply for a grant from the Treasury Department in lieu of the ITC. The grant will be equal to 30% of the cost of eligible projects that start construction in 2009 or 2010. It will be issued within sixty days of the facility being placed in service or, if later, within sixty days of receiving a grant application.

Increases Credit for Alternative Fuel Pumps: The bill increases the size of credits for

installing alternative fuel pumps at gas stations from 30 to 50% ($30,000 to $50,000) for taxable years 2009-2010.

Advanced Energy Manufacturing Credits: The bill provides $2 billion worth of energy related manufacturing investment credits at a 30% rate. These credits apply to projects creating or retooling manufacturing facilities to make components used to generate renewable energy, storage systems for use in electric or hybrid-electric cars, power grid components supporting addition of renewable sources, and equipment for carbon capture and storage (CCS).

Plug-in Electric Drive Vehicle Credit: The bill increases the tax credit for qualified plug-in electric drive vehicles for the first 200,000 placed in service. The base amount of the credit is $2500. Batteries with at least 5 kilowatt hours of capacity have a credit of $2917. The credit is further increased by $417 for every kilowatt hour in excess of 5 kilowatt hours, but cannot exceed $5000. The credit is allowed to be taken against the alternative minimum tax (AMT).

Five Year Carry-Back Provision for Operating Losses of Small Businesses: The bill would extend the carry-back period for net operating losses (NOL) from two to five years for tax years 2008 and 2009. An eligible NOL includes the NOL for any taxable year ending in 2008 or if the taxpayer chooses, any taxable year beginning in 2008. An election under this provision may only be taken for one taxable year.

Extends Bonus Depreciation: The bill extends, through 2009, the temporary increase of bonus depreciation to 50% that Congress enacted last year. These write offs can be applied to capital expenditures ranging from $250,000 to a newly increased threshold of $800,000.

Direct Spending Total Direct Spending for Renewable Energy and Energy Efficiency: The bill provides $16.8 billion in direct spending for renewable energy and energy efficiency programs over the next ten years.

Grid Development: The bill provides $11 billion to modernize the nation's electricity grid with smart grid technology. This includes $4.5 billion for the DOE Office of Electricity Delivery and Energy Reliability for activities to modernize the nation's electrical grid, integrate demand response equipment and implement smart grid technologies. In addition, $6.5 billion is provided for two federal power marketing administrations to assist with financing the construction, acquisition, and replacement of their transmission systems. The bill also increases federal matching grants for the Smart Grid Investment Program from 20% to 50%.

R&D, Demonstration Projects: The bill provides $2.5 billion for renewable energy and energy efficiency R&D, demonstration and deployment activities.

Advanced Battery Grants: The bill provides $2 billion for grants for the manufacturing of advanced batteries and components. This includes the manufacturing of advanced lithium ion batteries, hybrid electrical systems, component manufacturers, and soft-ware designers.

Defense Energy and Efficiency Programs: The bill provides $300 million to the DOD for the purpose of research, testing and evaluation of projects to energy generation, transmission and efficiency. The bill provides an additional $100 million for Navy and Marine Corps facilities to fund energy efficiency and alternative energy projects.

Study of Electric Transmission Congestion: The bill requires the Secretary of Energy to include a study of the transmission issues facing renewable energy in the pending study of electric transmission congestion that is due to be issued in August 2009.

Bond and Loan Programs

Clean Energy Renewable Bonds (CREBs): The bill provides $1.6 billion of new clean energy renewable bonds to finance wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities. One third of the authorized funding will be available for qualifying projects of state/local/tribal governments, one-third for public power providers and one-third for electric cooperatives.

Renewable Energy Loan Guarantee Program: The bill provides $6 billion for a temporary loan guarantee program for renewable energy power generation and transmission projects that begin construction by September 30, 2011. Up to $500 million of the overall $6 billion can be used for the development of leading edge biofuels that have been demonstrated and have commercial promise to substantially reduce greenhouse gas emissions.

Cleantech in San Diego

The following video covers an array of cleantech initiatives taking place in San Diego. Video provided by www.renewableenergyworld.com