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Week of January 6, 2003

Green Power

Pacific County PUD Provides Green Option
Pacific County PUD, which serves about 15,000 residents of Pacific County, Washington, offers a Green Power program to its residential and business customers. Customer participants can purchase 100-kWh blocks of green power for $1.05 per month, or 1.05ยข/kWh. There is no limit to the amount of green power that customers can purchase. To supply the program, Pacific County is purchasing the Bonneville Power Administration's (BPA) "Environmentally Preferred Power" product. A portion of the wholesale green power payment goes to the Bonneville Environmental Foundation to support the development of new renewable energy facilities in the Pacific Northwest. http://www.eren.doe.gov/greenpower/0902_pcpud.shtml. Source: Green Power Marketing Monthly Update - September 2002

Basin Electric Adds Wind Capacity
Basin Electric Power Cooperative, a regional power cooperative that generates and transmits electricity to 124 member rural electric systems in nine states, announced that it reached an agreement with FPL Energy to build two 40-MW wind energy projects, one in each of the Dakotas. The agreement calls for Basin to purchase the energy output and the associated renewable energy certificates from the projects, which are scheduled to be operational by the end of 2003. Basin plans to market renewable energy certificates to consumers who will pay a premium to support the development of new green power sources. FPL Energy will construct, own and operate the facilities. Basin Electric recently installed two, 1.3-MW wind turbines in South Dakota and is constructing another two turbines in North Dakota to supply its "Prairie Winds" green pricing program. Basin teamed with its member cooperative, East River Power, to develop the South Dakota project and with another member, Central Power Electric Cooperative, on the North Dakota project. The U.S. Air Force base near Minot, ND has committed to purchase a significant portion of the North Dakota project output. To date, 49 distribution coops in five states offer the "Prairie Winds" program to their customers who can purchase 100-kWh blocks of wind power for an additional $3.00 per month. Basin plans to lower the price premium to $2.50 per block because the wind power development costs have been less than originally estimated. http://www.eren.doe.gov/greenpower/0902_basin.shtml. Source: Green Power Marketing Monthly Update - September 2002


For more information: http://www.eren.doe.gov/greenpower/ or http://www.nwlink.com/~van/greenlnk.html


Renewable Energy Technologies

Catching the Wave; Business Seeks Power, Profits from Ocean Motion
Hoisting a couple of cold ones after a tough week at the office back in the 1980s, a pair of Princeton electrical engineers came up with a madcap plan: Let's generate electricity from the motion of the ocean. The notion seemed like folly. Though the technology existed to convert waves to power, nobody was doing it. Two decades later, in the ground floor headquarters of Ocean Power Technologies in Pennington, excitement is palpable. After years of perfecting and patenting a computer-controlled, subsurface device for offshore energy "harvesting" they call the PowerBuoy, the 15-employee firm has contracts to provide power to an Australian utility and a U.S. Marine base in Hawaii. As one of only a handful of companies worldwide converting ocean current to electrical current -- and with a social climate more receptive than ever to clean energy -- OPT officials think they're on the verge of launching an ingenious but fringe plan into the mainstream. "It's difficult if you're the only one out there; your customer is going to be concerned about buying your product," says President and CEO George W. Taylor, who founded OPT with his former business partner and drinking buddy, the late Joseph Burns. OPT has kept a low profile since work began in earnest in 1994. The company tested its PowerBuoy technology off the coast of Atlantic City the past four years to little fanfare, and its Web site only went up in July. Taylor, a tall, gray-bearded Aussie with a loud and genial manner, seems too affable to keep a good idea under wraps. But he had his reasons. He was waiting to lift the veil off OPT until he was granted patents for the PowerBuoy's proprietary gizmos. "The competition will start to leap out, there's no question, once we've shown it can be done," Taylor says. The company's PowerBuoy is based on the simple plan that rolling waves, met about a mile offshore, will move a submerged cylinder, about 48 feet long and 14 feet in diameter, up and down a rod. The rod is anchored to the ocean floor on one end and on the other rises above the waves, to warn mariners of the underwater contraption. A power line transmits the harvested energy to a station on shore.

Unique Technology: OPT's unique technology involves a 6-foot-long canister that's connected to the rod and sits on the ocean floor. It contains electronic equipment that can shut off power transmission when waves get too strong. Each buoy, positioned 6 feet below the ocean surface, generates an average of 20 kilowatts, enough electricity to power 20 homes. One of the benefits of the system, OPT executives say, is a customer can start small, with one or a few buoys and add more later. "One hundred square miles of ocean could provide electricity for all of California," says Charles F. Dunleavy, OPT's senior vice president and CFO. Indeed, the company is starting a lot smaller in its project with the Navy. Next spring, a single PowerBuoy will be set up in the South Pacific, about a mile offshore. It's expected to contribute 20 megawatts of electricity to the power grid of the Kane'ohe Marine Base in Oahu. "The Hawaiian islands have the highest energy costs in the United States," says Vinny Schaper, project manager for the Navy's Small Business Innovation Research office. "The Navy is very interested in saving money, and OPT has been the first to develop this technology and test it." The PowerBuoys' cost slides up and down based on scale; the more buoys deployed, the cheaper they get. While a small group of PowerBuoys at peak production carries a $2,900-per-kilowatt price tag, an installation producing 100 megawatts or more costs about a third of that, OPT executives say. And a large-scale set-up runs 3 to 4 cents per kilowatt, OPT says, making its cost similar to conventional fossil fuel-burning generators and cheaper than wind or solar power. Yet the PowerBuoys emit no gases, spill no oil, and can't be seen or heard above water.

So why hasn't Ocean Power Technologies yet conquered the high seas? Money. "We're capital-constrained right now," says Dunleavy. "We have the technology, we have fantastic customers, and we have a backlog of orders. But it's tough when you have limited resources." The firm has raised $13 million privately since 1994, Dunleavy says. With the help of New Jersey legislators like Rep. Rush Holt, D- Princeton, OPT has received small federal grants through the Navy's Small Business Innovative Research program. If the Navy's PowerBuoy does what it's supposed to, and does it as efficiently as OPT hopes, the Navy will have more business for the New Jersey company. "It looks very promising," says Paula Furman, a manager in the Office of Naval Research, which oversees the project. Though others have tried projects in Portugal, China, Japan, France, India, Mexico, and Denmark, "a lot of them have tried to go commercial and failed," says Michael E. McCormick, a civil engineering professor at Johns Hopkins University and author of the 1981 book "Ocean Wave Energy Conversion." Some global projects show promise using very different methods from the PowerBuoy. McCormick helped design a desalination plant at the mouth of Ireland's Shannon River that uses a wave-to-power technology called Hydam. Three floating barges joined by hinges allow two of the barges to rise and fall with the tides. The energy generated by that movement runs a pump that produces 100,000 gallons a day of drinking water at a cost of one-hundredth of 1 cent per gallon. Ocean Power Delivery Ltd. of Scotland is developing a similar system it calls Pelamis (the Greek word for sea snake). A cylinder similar to sausage links joined end to end -floats on the ocean surface; power is tapped from the up-down motion of the parts. Another Scottish company, Wavegen, has designed a completely different way of harvesting energy from the ocean. The oscillating water column consists of a hollow stationary tower, either slightly offshore on a breakwater or against a shoreline cliff. When the surf smashes into the tower, it forces a column of air up the shaft. That forced air pushes a turbine.

At OPT, starting small doesn't preclude dreaming big. "We're doing something that's never been done before successfully," Dunleavy says. "Just think: Pollution-free electricity for all points around the world." Taylor says he'll drink to that: "Our people are very motivated because we're doing something technically that's very exciting and challenging. But we also think we might be doing something good for the world." PowerBuoy Operation:

  1. Rising and falling of the waves moves the outer cylinder up and down. The resulting mechanical stroking drives the electrical generator.
  2. Generated AC power is converted into high-voltage DC power and is transmitted ashore by way of an underwater power cable.
  3. Buoy sensors continuously monitor the performance of the various sub-systems and the ocean environment, feeding an onboard computer. This controls, in real time, the performance of the smart buoy and ensures efficient conversion of random broadband wave energy to electricity.

System includes sophisticated techniques for automatically disconnecting the system in very large waves, and automatically reconnecting when the waves return to normal. Source: Ocean Power Technologies 12/13/2002 via Energy Central 12/13/2002.

Sharp to Produce Solar Energy Products in the U.S.
Anticipating significant growth in the U.S. solar energy market, Sharp Electronics Corporation, the U.S. sales and marketing subsidiary of Sharp Corporation, Osaka, Japan, today announced plans to establish a manufacturing facility for solar products in the U.S. The new facility will be constructed at the Sharp Manufacturing Company of America (SMCA) manufacturing plant in Memphis, Tennessee, where production of a range of solar products for on-grid and off-grid markets in the U.S. will be produced beginning in the Spring of 2003. SMCA will assemble solar modules for residential, commercial and industrial installations.

U.S. Ready for Solar: "Solar is at the core of Sharp's next generation businesses and technologies," said Shintaro Hashimoto, Corporate Director and Group General Manager of Sharp Corporation's Solar Systems Group. "Sharp established a division to market solar products in the U.S. in May 2002 and will manufacture here because we believe the U.S. is ready to accept solar as an increasingly mainstream energy alternative," he said. The market for solar energy in the U.S. is expected to undergo exponential growth over the next decade. In the last year alone, the U.S. experienced a 40-percent increase in solar energy use from 30 MW to 44 MW. According to the "Photovoltaic Industry Roadmap," a report accepted by the U.S. Department of Energy, the U.S. will experience a more than five-fold increase in the use of solar energy by the year 2010 to 250 MW annually. The 2010 projection represents enough solar energy to power over 80,000 homes. Today, approximately 10,000 U.S. homes use solar energy. "Consistent with our corporate mission, Sharp is committed to developing innovative solar technologies and one-of-a-kind products that meet the energy demands of today's lifestyles while helping protect the environment for future generations," said Mr. Hashimoto.

Sharp Expands Global Leadership Position: According to the solar industry trade publication PV News, Sharp was the world's leading manufacturer of solar cells in 2000 and 2001. This past July, Sharp increased its annual production capacity from 94 MW to 148 MW, the highest output level in the world. By the end of the 2002 fiscal (March 2003), Sharp will have increased manufacturing capacity to 200 MW and is forecasting a 50-percent increase in net sales for the 2002 fiscal over the previous fiscal. The Consumer Energy Center reports that the global market for solar energy is currently worth $2 billion annually and is expected to climb to $10 billion by 2010. Makoto Takahashi, President of SMCA, stated that approximately 45 new jobs will be created by the time assembly of solar modules commences. Approximately 90 new jobs will be created by the end of 2003. The possibility exists for additional jobs to be created over the next several years in response to anticipated market expansion.

Unique Approach: In less than six months selling solar products in the U.S., Sharp is already on track to achieve a double-digit share of the U.S. solar energy market by the end of the company's 2002 fiscal. "In our product development, marketing and sales channel development and domestic manufacturing programs, Sharp is focused on achieving a position of market leadership in the U.S. in line with our stature as the world leader," said Ron Kenedi, General Manager of the Solar Systems Division of Sharp Electronics Corporation. "Sharp brings an in-depth, customer-focused orientation to both product development and the marketing of solar energy that is unique to the industry. By Spring 2003, we will offer complete residential grid connected systems specifically designed for the U.S. market. This product launch will represent the first in a series of product offerings designed for the mainstream market, and we anticipate these products attracting large, new customer bases," he said. In the meantime, the Department of Energy reports that solar power costs have declined 200-percent in the last three decades with costs today ranging from 10 to 40 cents per kilowatt-hour. "This downward trend offers tremendous opportunity to expand the use of solar energy in the U.S. and help lessen dependence on foreign oil," said Kenedi.

Sharp Manufacturing Endorsed: "As the Co-Chairman of the bi-partisan House Renewable Energy and Energy Efficiency Caucus, it's exciting to see that Sharp is establishing a manufacturing facility for solar energy products right here in Tennessee," said U.S. Representative Zach Wamp (3rd Congressional District - Tennessee). "The applications for solar energy are almost limitless, and Sharp is working to make solar energy more available here in the U.S. Sharp is not only creating more jobs in the Memphis area, they are trying to improve our quality of life by developing a cleaner energy source and reducing America's dependence on foreign energy sources," the congressman said. Source: Sharp News Release 11/13/2002.

Plug Power Announces Agreement With Honda R&D to Jointly Develop Home ReFueling System
Plug Power Inc. (NASDAQ: PLUG) announced today an exclusive joint development agreement with Honda R&D Co., Ltd. of Japan, a subsidiary of Honda Motor Co., Ltd., to develop and test an initial prototype home refueling system for fuel cell automobiles at Plug Power's facilities in Latham, N.Y. and Honda facilities in Japan. Plug Power will integrate one of its GenSys™5C stationary fuel cell systems with additional components necessary for the home refueling concept, which will be supplied by Plug Power and Honda R&D. The exclusive agreement covers the first phase of what is expected to be a multi-phase development project. Subsequent phases of the product development effort will be addressed in future agreements. The joint development agreement also fulfills the memorandum of understanding that was signed between the companies in May 2002. Honda R&D will fund Plug Power's work under the agreement and purchase a second GenSys™5C fuel cell system from Plug Power, as anticipated in the memorandum of understanding in May. Honda purchased its first system from Plug Power in June, which is currently installed and operating at Honda R&D's facility in Japan. "This agreement cements an important relationship for Plug Power that will enable us to take the residential fuel cell concept to the next level," said Plug Power CEO Roger B. Saillant. "There is a clear benefit to Plug Power in collaborating with Honda, one of the world's most innovative automotive companies. We believe this will be particularly evident to our extended enterprise partners, because the relationship further paves the path between the stationary and automotive fuel cell industries."

About Home Refueling: A home refueling system is a fuel cell product that will provide heat, hot water, and electricity to a home, while also providing hydrogen fuel for a fuel cell vehicle. The device will be fueled by natural gas, and is expected to be environmentally friendly due to its high efficiency and low emissions.

About GenSys™5C: The GenSys™5C, a fuel cell system based on Plug Power's patented combined heat and power (CHP) technology, captures the heat generated during the production of electricity and makes it available for integration into a heating or hot water system. The system is capable of generating 5kW of electricity and 9kW of heat.

About Plug Power: Plug Power designs, develops and manufactures on-site electric power generation systems utilizing Proton Exchange Membrane fuel cells for stationary applications. Plug Power's fuel cell systems are expected to be sold globally through a joint venture with General Electric and through DTE Energy Technologies in a four-state territory, which includes Michigan, Illinois, Ohio and Indiana. The Company's headquarters are located in Latham, N.Y., with offices in Washington, D.C. and The Netherlands. Source: Plug Power Release 10/17/2002.

Wind Energy Gives Aquila Breath of Fresh Air in Bad Year
Aquila Inc.'s first year of investment in Kansas' largest wind farm broke even, and that's about as good as it got for the financially troubled utility company in 2002. "It turned out to be pretty close to economical for us," said Mike Apprill, vice president for resource management at Aquila. The Gray County Wind Farm's 170 turbines started spinning on Dec. 17, 2001. They're spread across 12,000 acres of rangeland near Montezuma, Kan., where they tower over tumbleweeds blown in from Oklahoma, Texas, Colorado and New Mexico. Owned by an unregulated subsidiary of Florida Power and Light, FPL Energy, the wind farm sends all its output to Aquila. The first year, it produced a little more than the 380,000 megawatt hours investors had projected, Apprill said. FPL would not have built the farm without a contract to sell the power; Aquila signed because it has transmission lines nearby. "It was in our service area where we serve retail customers," Apprill said. Forty percent of the farm's productivity stays in Kansas. Another 40 percent goes to Aquila's Missouri customers. Aquila sells the rest on the wholesale market to Midwest Energy. The farm's 110 total megawatts could power 33,000 homes. The FPL deal is practically a windfall compared with some other wholesale agreements Aquila has signed. To stave off massive foreclosures on all its debts, the company is struggling to renegotiate 15- and 20-year promises to buy fuel for Southern gas-fired power plants and sell their electricity into the wholesale market. Gas prices are too high, and electricity prices are too low. Aquila hemorrhaged $1 billion net in the first nine months of 2002, worrying its bankers and infuriating its investors. Yet wind power won't blow away Aquila's troubles. Sometimes, even in western Kansas, the wind doesn't blow, and gusts are often lightest on hot summer days, when demand is greatest for air conditioning. The daily wind cycle can be particularly contrary. "It seems like we get the most output at 2 o'clock in the morning," Apprill said. At that hour, demand is lowest, and utility companies can't store excess electricity. "It doesn't help the economics of it," he said.

Even so, the economics are good enough to attract at least a dozen wind-power development companies from throughout the world to Kansas, said Troy Helming, CEO of Kansas Wind Power of Lawrence. "We are the only company that's a Kansas company that's scouting the state," he said, noting that four German companies are checking out Tornado Alley sites, as are firms from Ireland, Spain, Denmark and Japan. Although KWP hasn't yet developed any wind farms in Kansas after four years of trying, Helming said the company expects a breakthrough within 45 days. On Dec. 16, Composite Technology Corp. of Irvine, Calif., announced an agreement with KWP to supply towers and cable for a $150 million project. If a buyer signs for the power, the KWP project will boast 68 turbines generating 102 megawatts on one of seven sites KWP has studied. Helming's dream is to buy a Westar transmission line, recable it with CTC's "aluminum conductor composite core" cable and buy wind turbines from General Electric. He has been making sales calls on the University of Kansas, Sprint Corp. and the cities of Lawrence and Overland Park seeking long-term power contracts. He also is negotiating with Kansas City Power & Light because a regulated utility would have to handle any sale. Many states require utilities to buy electricity generated from renewable sources, and federal law may make the mandate national in 2003. Yet Aquila had no legal requirement to invest in wind power, and Helming said, "Everything that we've got in the works right now is market-driven." Despite its abundance of wind and devalued scenery, western and central Kansas won't be a big exporter of renewable power until new transmission lines are built. Besides electricity, the Gray County Wind Farm generates favorablepublicity for Aquila. The Kansas facility has even won the Missouri governor's Environmental Excellence and Pollution Prevention Award. Apprill said Aquila has few regrets about participating in the project. "We've learned a lot from it," he said. Source: Business Journal 12/27/2002.


For more information on Renewable Resources go to: http://www.eren.doe.gov/repis/


Outreach, Education, Reports & Studies

Waverly Light and Power Produces Wind Video
Waverly Light & Power, a municipal utility headquartered in Waverly, Iowa, has released a 8 _ minute promotional video on wind energy entitled, Crop of the Future. Waverly Light & Power was the first municipal utility west of the Mississippi to construct a wind turbine, with a 80-kW Zond turbine energized in 1993, and the first utility to sell green tags. The utility has since retired the 80-kW turbine, but has erected two 750-kW Enron Wind turbines and one 900-kW NEG Micon turbine. A great deal of project information, including turbine availability and electricity generation is available on the Web site at http://www.waverlyia.com/WLP/Wind/wind_IDX.htm. The three wind turbines named Skeets 2,3, and 4, in honor of Russell "Skeets" Walther, the farmer who hosted the first turbine serve the yearly electrical needs of 761 homes and supply 5% of the annual energy provided by Waverly Light and Power. The video highlights the utility's efforts to promote wind power development in the Midwest. It features attractive footage of Iowa wind power facilities, and contains some historical information about wind power in the Midwest, public power's involvement with wind energy, as well as some general information about wind power, such as information on economic development opportunities and energy independence. Waverly Light & Power is planning to produce a DVD version, which will include performance data and studies from the utility's turbines, construction photos, and links to AWEA, the Utility Wind Interest Group, the National Renewable Energy Laboratory, and other information sources.The National Renewable Energy Laboratory has agreed to make copies of the video available as a service to those interested in receiving one. For more information, contact Kathy O'Dell, e-mail kathleen_odell@nrel.gov. Source: AWEA Wind Energy Weekly 12/13/2002.

The Natural Step Annual Report
The Natural Step is an organization working to shape the future by building sustainability into the fabric of forward-thinking companies which have the power to move entire industries toward a new model. A model that is good for society, good for the environment, and good for business. See their year-in-review report at: http://www.naturalstep.org/about/yearend_report.pdf.

Igniting Creative Energy Challenge
The Challenge is an incentive based educational opportunity for students K-12 throughout the U.S. and most of Canada. Students are asked to use their creative energy to develop entries in the categories of Visual Arts and Music, Science and Technology, and Language Arts. Entries are to relate to the theme "Igniting Creative Energy" and demonstrate character building as it applies to wise energy choices and environmental stewardship. The entries are also to demonstrate an understanding of what an individual, family or group can do to make a difference in their home or community. All entries must be postmarked on or before March 15, 2003. For more information see: http://www.ignitingcreativeenergy.org.

Opportunities With Landfill Gas
The World Resources Institute (WRI) has produced a new publication entitled "Opportunities With Landfill Gas," which provides an introduction to landfill gas as a green energy source for commercial and industrial enterprises. Download the publication at: http://www.thegreenpowergroup.org/Installment2.pdf. Also see WRI's other publication, "Introducing Green Power for Corporate Markets: Business Case, Challenges and Steps Forward," at: http://www.thegreenpowergroup.org/Installment1.pdf.

WAPA Interconnection Process
Have you ever had questions about Western's interconnection procedures? Our web site has a page dedicated to answering these questions. There are eight steps in the interconnection process. For more information, see our web site at: http://www.wapa.gov/interconn/intsteps.htm.

Solar Means Safety Educational Campaign
The Interstate Renewable Energy Council recently released the Solar Means Safety educational campaign, which features a smartly packaged series of six fact sheets describing solar power's versatility and flexibility for a variety of uses. You can view the fact sheets at: http://www.irecusa.org/articles/static/1/binaries/factsheets%204-26-02.pdf. Source: IREC/MSR enewsletter 12/27/2002.

Green Job Jolt Strikes Midwest
Environmental Law and Policy Center (ELPC) newly released report, Job Jolt, shows that the Midwest stands to gain significant jobs and income by switching to renewable energy and increasing energy efficiency. The report shows a real boost for the Midwest: up to 210,000 new jobs and $20 billion in additional economic output across the 10-state Midwest region by the year 2020. Download the report at: http://www.elpc.org/energy/JJfinal.pdf. Source: Environmental Law and Policy Center 12/26/2002.


For more information on Educational Resources go to: http://www.thegateway.org


News from Washington

EERE's Strategic Plan Released
DOE's Office of Energy Efficiency and Renewable Energy (EERE) released its Strategic Plan (November 2002), presenting the vision, mission, core values, and strategic goals. It also highlights EERE's role in addressing the National Energy Policy, and describes how EERE is incorporating the President's Management Agenda and the EERE Strategic Program Review recommendations. See the plan at: http://www.nrel.gov/docs/fy03osti/32988.pdf. Source: IREC/MSR enewsletter #20 12/27/2002.

White House Project Gives Massachusetts Solar-Energy Firm Moment in Sun
With sales that have yet to crack the $5 million-a-year mark, Evergreen Solar, a maker of electric generating solar panels based here, has a long way to go to become a common sight on the roofs of American homes and offices. But the country's most famous home and office complex now sports an Evergreen installation: the White House in Washington where, since late summer, Evergreen panels on the roof of a maintenance building have cranked out about $75 worth of free electricity. With some larger issues to worry about this fall, like the possibility of war in Iraq and President Bush's drive to elect a Republican-controlled Congress, the White House solar project has garnered little attention. But Evergreen executives and solar advocates hope it may be a watershed in solar energy's long quest to enter the mainstream of US energy production. The installation at the maintenance building on the southwest corner of the White House grounds includes 167 Evergreen modules able to produce up to 8,750 watts, or enough to power about 150 standard table lamps. It was overseen by the National Park Service, which manages the grounds, as part of a project that also included installing solar hot water units on the cabana at the presidential pool. "We don't view this as an experiment," said James Doherty, an architect and project manager in the park service office for White House liaison. "We believe in these technologies, and they've been working for us very successfully. "The National Park Service as a whole has long been interested in both sustainable design and renewable energy sources. We also have a mission to lower our energy consumption at all our sites, and we saw an opportunity to do both" at the White House grounds, Doherty added. Since the installation was completed in late August, the units have generated more than 1,050 kilowatt hours of electricity, for which the local utility, Potomac Electric Power, would normally charge a homeowner about 7 cents per kilowatt hour. As with most installations, power generated at the White House site is effectively sold back to Potomac to defray utility bills. Steven J. Strong, president of Solar Design Associates in Harvard, one of the nation's leading solar installation designers, oversaw the White House projects.

Evergreen's marquee project at the White House comes as the eight-year-old company is pushing ahead with several technological advances aimed at sharply reducing the cost of manufacturing solar panels. Company officials hope the projects will reduce the industry's dependence on government grants and utility-funded demonstration projects. At its Marlborough manufacturing site, a former gourmet popcorn warehouse Evergreen took over 20 months ago, the company can currently produce about 3 megawatts worth of solar panels each year, which is less than 1/200th the amount of electricity that can be generated by the Pilgrim nuclear plant in Plymouth or the Salem Harbor generating station. But a second production line, now under construction, should be able to crank out 8 megawatts of panels. And by late next year, Evergreen chief executive Mark A. Farber said, the company hopes to complete another upgrade that can double its output of electric-generating silicon wafers that are installed in the panels. Evergreen uses solar manufacturing technology developed at the Massachusetts Institute of Technology. Most of Evergreen's current business comes from sales to Germany, Japan, and other foreign markets. In the United States, Evergreen this year sold systems installed at four B.J.'s Wholesale Club outlets on Long Island through a project subsidized by the local utility. Since going public in late 2000 and reaching highs over $20, Evergreen shares slumped below $1 this fall and closed Tuesday at $1.24 on the Nasdaq exchange. The company posted a net loss of $2.7 million in the quarter ended Sept. 30 on product revenues of $1.5 million along with $641,000 in research revenues. Evergreen is also expected to be a substantial beneficiary of solar energy grants being awarded by the Massachusetts Technology Collaborative, a Westborough-based quasi-public state agency that manages a $100 million "renewable energy" trust funded by a small tax on Bay State electric bills. Globally, solar energy is estimated to be a $3 billion market, dominated by sales to committed environmentalist businesses and homeowners with big wallets or deals that rely on government and utility subsidies. "Government support for solar in Massachusetts and around the world is very important still," said Paul W. Gromer, who is the director of the Boston-based Solar Energy Business Association of New England and served as state energy resources commissioner from 1989 to 1991. In hopes of promoting more use of solar energy in Massachusetts, the solar association and state Senator Pamela P. Resor, an Acton Democrat, have sponsored legislation for next year's state house session to simplify procedures for connecting home and business units to utility grids. The legislation would also make it easier for solar panel owners to carry forward credits they amass in summer months when they generate more electricity than they use to offset winter bills. Source: The Boston Globe 12/26/2002.


For more information on legislative activities go to: http://thomas.loc.gov


State Activities, Marketing & Market Research

Minnesota Judge Supports AWEA's Recommendation on Transmission
A Minnesota administrative law judge (ALJ) has recommended that a new series of transmission lines proposed by Xcel Energy to provide transmission capacity for wind power from the Buffalo Ridge area be granted a certificate of need, an important step in securing regulatory approval for the lines. The ALJ determined that the basic transmission plan supported by AWEA is the best option to transport wind-generated electricity. The Minnesota Public Utilities Commission (PUC) has the final authority to grant the certificate. Xcel Energy proposed a family of 345-kV and lower voltage lines to remove a bottleneck in transporting wind-generated electricity from the wind-rich Buffalo Ridge area in southwestern Minnesota. Evidentiary hearings began in May. The ALJ initially projected that her recommendation would be filed by August 1. However, many more transmission scenarios than expected were introduced during the hearings. The Judge submitted her recommendation on November 8. AWEA joined with the Izaak Walton League and Minnesotans for an Energy Efficient Economy ("the coalition") in recommending a transmission scenario. The preferred option includes four "large" transmission lines (one 345-kV line, one 161-kV line, and two 115-kV lines) that require certificates of need, and an assortment of associated lower voltage transmission lines, rebuilds and new facilities that are currently being pursued by Xcel Energy. In addition, the coalition proposed a set of conditions to the certificates of need that would help to ensure that wind power projects would secure access to the new lines when they are energized, satisfying Xcel Energy's stated purpose for proposing the lines. Since Federal Energy Regulatory Commission transmission capacity allocation rules do not allow a transmission owner to reserve capacity for a particular type of resource, the conditions proposed by the AWEA coalition would ensure that Xcel Energy commence with the application process to enter wind power into the transmission planning queue so that the wind projects are ready to begin operating at the same time that the new transmission lines are brought into service. The ALJ did not include all of the conditions recommended by the coalition. The coalition has filed exceptions to the ALJ report with the PUC, reaffirming the justification for including the recommended conditions. The PUC will consider comments of AWEA and other parties in a hearing to be held in January. Source: AWEA Wind Energy Weekly 12/13/02.

Europe's Installed Wind Capacity Reportedly Reaches 20,447 MW
For the first time in nine months of 2002, Europe's installed wind energy capacity reached 20,447 megawatts, 74% of the world's total. See entire article at: http://www.ewea.org/doc/13-11-02%20European%20wind%20energy%20achieves%2040%25%20growth%20rate.pdf. Source: Solar and Renewable Energy Outlook 12/1/2002.

How to Harvest a Cash Windfall
Farmers interested in reaping the wind can now have the suitability of their land assessed free, it was revealed yesterday. The offer has come from the new renewable energy group at FPDSavills. It specialises in promotion, planning, development and management of wind farms across the country and offers site appraisals and advice on negotiating agreements with developers and operators, including licences. The firm will also oversee construction of sites, manage landlords' interests, deal with planning and carry out environmental impact assessments. Team member Josh Pollock said: "Wind turbines will provide the vast majority of the Government's target for renewable energy generation. "A combination of increasing economic viability and the carrot and stick approach of the Government's climate change programme has resulted in a step change in the levels of activity in the wind farming industry. There are a rapidly increasing number of developers looking for sites." Mr Pollock said free site appraisals would help bring the right sites on to the market and maximise their value for the landowner. "All we need is a plan of their farm or estate, preferably showing existing houses," he said. The extra help for would-be wind farmers comes after a less optimistic message from a West lawyer. Mark Trinick, an expert on wind energy, believes the Government's target of ten per cent of the UK's energy is doomed to failure. He thinks the target can only be reached by going outside territorial waters. Anyone interested in a free assessment should send a plan of their land to FPDSavills at 21 Newland, Lincoln, LN1 1XG, or call 01522 551100. Source: L.A. Times via Western Daily Press 12/27/2002.

Wisconsin Energy Seeks Wind Suppliers
We Energies has invited wind-power developers to submit proposals for generating and delivering wind power that will enable the company to meet its self-imposed goal of using renewable energy for 5 percent of its retail sales by 2011. The additional flow of wind power would also help Wisconsin Energy more than comply with renewable power requirements imposed by recent state legislation. As much as 200 megawatts of wind power could be added to Wisconsin Energy's portfolio by 2005. Right now, the company's renewable energy sources are less than half of that, and consist of about 25 megawatts from wind farms and 70 megawatts from hydropower. We Energies announced Dec. 18 that it hopes to buy more wind power from a Wisconsin supplier. Because of electricity transmission constraints, wind power already being generated in Minnesota, North Dakota and South Dakota is virtually impossible to transfer to Wisconsin. "We are demonstrating that our company is willing to do more than simply talk about renewable energy," said Carl Siegrist, a senior renewable energy strategist for We Energies. Earlier this year, the utility formed a Renewable Energy Collaborative to guide it in achieving its renewable energy commitment. The coalition consists of environmental, consumer and renewable energy groups. "In one fell swoop, We Energies' request for proposal elevates Wisconsin from obscurity to national prominence as far as the domestic wind power picture is concerned," said Michael Vickerman, executive director of Renew, a nonprofit organization in Madison that promotes clean energy strategies. The request for proposal requires that suppliers build and start operating their wind-power plants by Dec. 31, 2004. Developers have until Feb. 28, 2003, to submit proposals. The minimum size for consideration is 20 megawatts, and the length of contract is set for 20 years. "Our request is major step forward in finding out who is capable of delivering what we need," said Siegrist.

Wind sources: We Energies owns two 660-kilowatt wind-power turbines south of Fond du Lac that provide only a tiny fraction of the renewable energy the company will need to achieve its goal. The company also buys 25 megawatts of the Montfort Wind Farm in Iowa County and 40 megawatts from the Top of Iowa Wind Farm in north central Iowa. The Business Journal reported in August that a national renewable-energy development firm was prospecting for a new site to build 200 megawatts of wind power in southwestern Wisconsin along Highway 81 in Lafayette County. The prospective developer of a new wind farm near Darlington is a national firm with other projects already operating throughout the United States. "We expect the We Energies request for proposal to take the planning effort to the next level for many developers," said Annemarie Newman, a spokeswoman for the Wisconsin Public Service Commission. The Darlington-area site was one of 16 new Midwest wind-power developments identified by the American Wind Energy Association, St. Paul, Minn. We Energies' proposal does not impose geographic restrictions on project locations. The company expressed a preference for a facility located within its service territory in eastern Wisconsin. Alternatively, the company would prefer a wind farm built in an area that's interconnected with American Transmission Co. A new wind farm in Darlington would be close enough to a major east-west transmission line that could transfer the power to southeastern Wisconsin. A commitment to new wind power of this magnitude will not only mean cleaner air for Wisconsin, but also new economic opportunities for component manufacturers, building contractors and farmers who are struggling to keep their land in production, said Vickerman. The farmers in southwestern Wisconsin who allowed FPL Energy Group to build wind turbines on their property receive a royalty each year of about $7,000 per turbine based on the amount of electricity the turbines generate. Source: Business Journal 12/27/2002.


For more information on marketing and research go to: http://www.nrel.gov/analysis/emaa/index.html


Grants, RFPs & Other Funding News

High Energy Cost Rural Communities
The U.S. Department of Agriculture, Rural Utilities Service announces a new competitive grant program to assist communities where the average residential expenditure for home energy exceeds 275 percent of the national average. Grants funds may be used to acquire, construct, extend, upgrade and otherwise improve energy generation, transmission, or distribution facilities. Eligible facilities include on-grid and off-grid renewable energy systems and implementation of cost-effective demand side management and energy conservation programs that benefit eligible communities. $14.9 million expected to be available. Applications due 2/7/03. For more info, go to the Federal Register or contact Karen Larsen, USDA, at (202) 720-9545. (Federal Register 12/9/02). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 12/27/2002.

Environmental Education Grants Program
The Environmental Protection Agency requests applications for the FY03 Environmental Education Grant Program. This program supports projects which design, demonstrate, or disseminate environmental education practices, methods, or techniques, including assessing environmental and ecologicalconditions or specific environmental issues or problems. At this time, future funding for the program is uncertain because the federal budget for 2003 is not yet final. In the past, approx. $3 million has been available for this program. 25% cost share required. Proposals due 2/14/03. For more info,go to: http://www.epa.gov/enviroed/grants.html. (Federal Register 12/19/02). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 12/27/2002.

Thin Film (PV) Monitoring
The National Renewable Energy Laboratory requests proposals from members of the photovoltaic community for outdoor testing and monitoring of thin film modules in hot and humid climates. Modules that will be tested are expected to be leading-edge prototypes being developed for commercial use. Approx. $400K expected to be available. For more info, contact Vicki Riddell at (303) 384-7457, or go to: http://www.nrel.gov/contracts/solicitations.html. Refer to Sol# RDJ-3-33600. (FBO 12/8/02). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 12/27/2002.

Low Wind Speed Turbine Development
The U.S. Department of Energy announces its intent to issue an RFP for the development of cost-effective small wind turbines (100 kilowatts or less) for use in distributed power applications at low wind speeds throughout the U.S., primarily targeting residential and small business uses. Areas ofInterest include: 1) Conceptual Design Studies - NTE $100K per award, no cost share; 2) Component Development - NTE $1 million per award, 30% cost share, 3) Prototype Turbine Development - NTE $1.5 million per award, 50% cost share. The RFP expected to open in mid to late February 2003. Onceissued, it will be posted at: http://www.golden.doe.gov/businessopportunities.html. For more info, contact godwt@nrel.gov. Refer to Sol# DE-PS36-03GO93005. (FBO 12/19/02). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 12/27/2002.

Fuel Cell Simulator
The U.S. Department of Energy National Energy Technology Laboratory has the need for a fuel cell simulator (FCS) that provides voltage and current representative of a real fuel cell, both in steady state behavior as well as in its transient behavior. Responses due 1/24/03. For more info, contact Robert Mohn, NETL, at (412) 386-4963 or go to http://e-center.doe.gov. Refer to DE-RQ26-03NT30094. Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 12/27/2002.

StEPP Foundation
The Strategic Environmental Project Pipeline Foundation (StEPP) supports projects that demonstrate the positive benefits of renewable energy, energy efficiency and pollution prevention projects in communities. For more info, contact the Foundation at (303) 277-0932 or go to: http://www.steppfoundation.org. Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 12/27/2002.


For more information on funding solicitations go to: http://www.eren.doe.gov/solicitations.html

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