Asia Archives - SolarBuzz Jamaica

PV Production Grows Despite a Crisis-Driven Decline in Investment

September 30, 2013 Webmaster

Global production of photovoltaic (PV) cells grew by 10% in 2012 in comparison to 2011 despite a 9% decline in solar energy investments according to the annual “PV Status Report” released by the European Commission‘s Joint Research Centre. Europe remained a leader in newly installed capacities accounting for 51.7% (16.8 GW) of the 30 GW installed worldwide.

Abundant solar resources in combination with zero emissions from solar installations have attributed to PV energy systems a key role in the transition to a low carbon energy supply. This potential has driven development of more efficient PV modules and transformed the sector into one of the fastest growing industries. Production of PV cells and modules has gone from 46 MW in 1990 to 38.5 GW in 2012. Statistically documented cumulative installations worldwide accounted for almost 100 GW in 2012 placing the EU in the lead position with its share of over 69 GW.

Within the EU, Germany has kept its leading position in PV installation with an additional 7.6 GW in 2012, while Italy‘s newly installed 3.5 GW have allowed it to reach an electricity production covering 7.3% of the total electricity demand during the first seven months of 2013.

A steep, 80% drop of solar modules prices between 2008 and 2012, triggered by an overcapacity of production, created serious financial problems for manufacturers, but led to a consolidation of the industry and fuelled an extensive growth for the PV market in Asia: 60% in 2012 and a projected 100% in 2013. The rise in annual production has resulted in China and Taiwan to accounting for 70% of the global production.

Even with the on-going difficult economic conditions, the number of the new PV markets is increasing. This, along with rising energy prices and the pressure to stabilise the climate will maintain a high demand for solar power systems. Electricity production from PV modules has already proved that it can be cheaper than current conventional consumer electricity prices in many countries. In addition, renewable energies which are not fuel-dependent, are, in contrast to conventional energy sources, among the technologies to offer the prospect of a reduction in prices.

Science Daily;

News Oil

Oil Prices Fall After Warning From World Bank

October 9, 2012 jrobinson

Oil rig in the Gulf of Mexico.

A strong warning from the World Bank that growth in Asia may slow further dragged the price of oil Monday to its lowest close in two months.

The World Bank signalled the possibility of a “more pronounced slowdown” in China, the world’s second-largest economy after the United States. It also cut its growth forecast for Asia. Red-hot growth in emerging markets like China and India helped boost oil consumption coming out of the global recession.

Benchmark crude fell 55 cents to close at US$89.33 in New York. The contract has not closed lower since August 2.

At the pump, gas prices remain stubbornly high. The national average for gasolene rose 3 cents on the weekend to US$3.818 a gallon. But Californians are now paying an average of US$4.668 a gallon, the highest price in the United States, after a jump of 50 cents in the past week. Some motorists there are paying more than US$5.

In response, Governor Jerry Brown has ordered state smog regulators to allow cheaper winter-blend gas to be sold three weeks early. And Senator Dianne Feinstein has called for a federal investigation because she doesn’t think the higher prices are related to supply and demand.

Experts are predicting prices in California could climb to an average of US$4.85 before coming down.

In London, Brent crude, which is used to price international varieties of oil, fell 20 cents to US$111.82.

In other futures in morning trading, natural gas gained less than a penny to reach US$3.40 per 1,000 cubic feet. Heating oil lost a penny to close at US$3.14 per gallon, and wholesale gasolene fell 6 cents to finish at US$2.89 per gallon.

– AP

News Oil

Oil Drops On Signs Of Slower Global Growth

October 4, 2012 Webmaster

Oil prices plunged Wednesday on more evidence of slower growth in Asia and concerns about Europe‘s ongoing financial crisis.

Benchmark oil fell $3.43 or 3.7 per cent to $88.46 per barrel in afternoon trading on the New York Mercantile Exchange. Brent crude, which is used to price international varieties of oil, fell $2.59, or 2.3 per cent, to $108.98 a barrel in London.

China‘s services sector slowed in September. Analysts say the index was 53.7 compared with 56.3 in August. It was released just days after a survey indicated that the country’s manufacturing continues to slow.

China is the world’s second largest economy and a huge importer of commodities like oil. Slower growth in that country could cut demand for oil.

And it’s not only China. After years of rapid growth, Asia’s developing economies now face much more modest prospects, the Asian Development Bank said Wednesday in a report that slashes growth forecasts for this year and next.

The ADB said growth in developing Asia, which includes giant emerging economies such as India, China and Indonesia, will slow to 6.1 per cent this year from 7.2 per cent last year and only partly rebound to 6.7 per cent in 2013. It had previously forecast growth of 6.9 per cent for 2012 and 7.3 per cent for 2013.

The disappointing reports were overshadowing signs of improvement in US service companies, which employ nearly 90 per cent of the work force. The Institute for Supply Management says its index rose in September at the fastest pace since March.

Meanwhile, the US government says crude inventories fell slightly last week but remain 8.4 per cent above year-ago levels. Gasoline supplies rose.

In other energy futures trading in New York, natural gas is down 16 cents, or 4.6 per cent, to $3.37 per 1,000 cubic feet, a day after hitting a high for the year.

Heating oil has fallen 5 cents to $3.07 per gallon, and wholesale gasoline has dropped 7 cents, or 2.5 per cent, to $2.80 per gallon.

– AP

Government JPS LNG News Oil

The Economics Of LNG

October 1, 2012 Webmaster

Winston Hay, energy consultant and former director general of OUR. – Ian Allen/Photographer

Avia Collinder, Business Writer

Energy consultant Winston Hay says that while plans for use of LNG for power generation in Jamaica are in principle sound, the uncertainty around the cost of that fuel should not be ignored.

LNG is now selling at record prices in Asia where Japan as a top consumption market reportedly pays the highest price.

Hay, who was once the head of the Office of Utilities Regulation (OUR), said that application of relatively new technology – fracking – in the United States has led to greater extraction of “shale gas” at greater depths than had previously been exploited.

And it has dramatically decreased the price of natural gas in that country.

But the stability of those prices is uncertain and the Henry Hub price reports have already begun to show a significant upward trend, he said.

Production doesn’t affect price

Importantly, he adds, the price of LNG does not vary directly with natural gas production costs.

Flammable gasses trapped in the earth and consisting primarily of methane are found in many areas of the world – the Middle East, Russia, Nigeria, Australia, Nigeria and North America, for instance.

LNG has been used for decades as a source of heat for industrial processes, cooking, household heating, and other uses, but only in relatively small quantities for electricity generation until about the late 1960s, with development of the combined-cycle technology.

“The aggregate costs of delivering the gas to the liquefaction facility, the liquefaction process itself, transport by specially constructed vessels to the FSRU, operational costs of the FSRU and Jamaica Gas Trust, delivery by pipeline (yet to be constructed) to the end-users, etc, will all increase the price of gas from LNG significantly above that of the gas extracted from the earth,” Hay said.

Further, he notes, commodity prices are not necessarily determined by production costs.

“The demand-supply ratio is often more significant. The indications are that the demand for LNG internationally will steadily increase and therefore apply upward pressure on the prices of that commodity,” he said.

Several worldwide developments, he said, are likely to push LNG prices higher:

News

‘Coal Is The Way To Go’

June 4, 2012 jrobinson

JAMAICA COULD have saved over a billion dollars last year if we had been using coal.

That’s according to studies presented by Lincoln Bailey, Jamaica-born co-owner of Mchenga Mine in Malawi, that country’s second largest coal mine. Bailey was guest speaker at the Kingston 360 Breakfast Talk Series, hosted by the Mona School of Business and the Spanish Court Hotel.

Using Jamaica Public Service 2011 statistics, Bailey said the company imported a little over seven million barrels of oil for power-generation at a cost of $876 million. The bauxite sector imported about nine and a half million barrels at a cost of $1.1 billion. Bailey calculated that 995,000 tonnes of coal (at $100 per tonne) would equal the power-generation amount of oil.

“So if you take that … it will only cost $99 million. So it represents a saving to the country of over $776 million.” Likewise for bauxite companies, to replace the nearly 10 million barrels would need 1.8 million tonnes of coal. Using the same 100 per tonne, that would be a cost of $185 million, a saving of $954 million.

“Jamaica would have saved $1.7 billion last year if we had used coal. Now that’s not small change. What I’m saying is that it’s really a no-brainer.”

Unhealthy dependence on oil

Bailey was incredulous that a country of Jamaica’s size was so dependent on oil, noting that our oil consumption fits the profile of an oil-producing country. He noted that 53 per cent of oil import goes to power generation for public use and about 30 per cent of that goes to bauxite and aluminium processing. He found it strange that coal was not being readily accepted even though coal has historically fuelled nations, including in Europe, North America and Asia.

He noted that coal was responsible for over 90 per cent of South Africa’s power generation, 79 per cent in China and 77 per cent in Japan. He noted that the reason for coal’s success was that it was cheap, abundant, and could be transported over long distances at low cost.

Bailey pointed out that coal discussions have taken place from the 80’s in Jamaica, but nothing was done. He opined that renewable energy like solar and wind had their place, but were more expensive than coal in terms of megawatt-per-hour cost. He also felt they could not be depended for base load power.

He dismissed the notion that coal was still ‘dirty fuel’, opining that clean coal technology has made strides in the last two decades.

http://jamaica-gleaner.com/gleaner/20120531/lead/lead9.html