Solar sales to soar, but will profits follow?

By Reuters


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Analysts are predicting solar companies will report strong firstquarter sales but say profit margins could suffer, keeping their share prices from benefiting.

Higherthanexpected sales estimates this month from Chinas JA Solar and U.S.based Evergreen Solar have boosted expectations for the sector, as demand for panels that turn sunlight into electricity rebounds sharply from 2009.

Results should be pretty strong on the balance, said Simmons & Co analyst Burt Chao. If we havent passed the bottom, were very, very close to it, he added.

Much of this years surge in demand has occurred in Germany, where renewable energy developers have rushed to get projects in place ahead of planned cuts in incentives that have made the country the worlds largest solar market.

Sales are not going to be the problem this quarter. It was not the problem last quarter either. The big question for most companies will be margins, said Pavel Molchanov, analyst with Raymond James in Houston.

Increased competition from Asian companies and last years slump pushed down average selling prices for modules as much as 40 percent in 2009, squeezing profit margins for the nascent industry. Just recently, Canadian Solar warned firstquarter margins would fall below an earlier estimate.

And despite strong demand, most solar stocks, and stocks of cleantech companies generally, have struggled this year.

Since the start of 2010, the Wilderhill Clean Energy Index, an index made up of green energy companies, has sunk 5.3 percent. By comparison, the S&P 500 has risen 9.2 percent.

Shares are not likely to see a significant upswing soon, most analysts say, as markets wait to see what will happen after the German cuts. Some say demand will drop and that companies, which have been working to bulk up their capacities, will be stuck with excess supply.

The German government is set to reduce most of the mandated prices paid for electricity from German solar arrays starting in July, with proposed cuts of 16 percent for rooftop panels.

The stock underperformance is driven by the concern... that theres too much supply and that panel prices are falling, said Wunderlich Securities analyst Theo ONeill.

He predicted that average selling prices of modules would drop another 20 percent in 2010, mostly in the second half.

First Solar Inc, the industrys lowest cost manufacturer, is the first to kickoff firstquarter earnings releases, while JA Solar Holdings reports on May 11, Chinas Suntech Power Holding and LDK Solar on May 21, Yingli Green Energy on May 22, and Canadian Solar on May 26.

The European sector leaders SolarWorld, QCells and SMA Solar are expected to report firstquarter results in the second week of May.

Those European players have been battling to maintain market share on their home turf as they face stiff price competition from lower cost Chinese producers.

Still, analysts forecast earnings to be strong as European companies are likely to be the principal benefactors of German demand. New European markets like Italy are also seen stepping up this year.

The Chinese companies, which have grown rapidly over the past two years, could disappoint investors as the exceptional demand forced many of them to outsource cell and wafer production to meet sales agreements, according to Gordon Johnson, analyst with Hapoalim Securities.

Theyre having to go buy product in the spot market, which is more expensive than making it internally, he said.

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Massive power line will send Canadian hydropower to New York

Twin States Clean Energy Link connects New England to Hydro-Quebec via a 1,200 MW transmission line, DOE-backed capacity, underground segments, existing corridors, boosting renewable energy reliability across Vermont and New Hampshire with cross-border grid flexibility.

 

Key Points

DOE-backed 1,200 MW line linking Hydro-Quebec to New England, adding clean capacity with underground routes.

✅ 1,200 MW cross-border capacity for the New England grid

✅ Uses existing corridors; underground in VT and northern NH

✅ DOE capacity contract lowers risk and spurs investment

 

A proposal to build a new transmission line to connect New England with Canadian hydropower is one step closer to reality.

The U.S. Department of Energy announced Monday that it has selected the Twin States Clean Energy Link as one of three transmission projects that will be part of its $1.3 billion cross-border transmission initiative to add capacity to the grid.

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Twin States is a proposal from National Grid, a utility company that serves Massachusetts, New York, and Rhode Island, and also owns transmission in England and Wales as the region advances projects like the Scotland-to-England subsea link that expand renewable flows, and the non-profit Citizens Energy Corporation.

The transmission line would connect New England with power from Hydro-Quebec, moving into the United States from Canada in Northern Vermont and crossing into New Hampshire near Dalton. It would run through parts of Grafton, Merrimack, and Hillsborough counties, routing through a substation in Dunbarton and ending at a proposed new substation in Londonderry. (Here's a map of the Twin States proposal.)

The federal funding will allow the U.S. Department of Energy to purchase capacity on the planned transmission line, which officials say reduces the risk for other investors and can help encourage others to purchase capacity.

The project has gotten support from local officials in Vermont and New Hampshire, but there are still hurdles to cross. The contract negotiation process is beginning, National Grid said, and the proposal still needs approvals from regulators before construction could begin.

First Nations communities in Canada have opposed transmission lines connecting Hydro-Quebec with New England in the past, and the company has faced scrutiny from environmental groups.

What would Twin States look like?
Transmission projects, like the failed Northern Pass proposal, have been controversial in New England, though the Great Northern Transmission Line progressed in Minnesota.

But Reihaneh Irani-Famili, vice president of capital delivery, project management and construction at National Grid, said this one is different because the developers listened to community concerns before planning the project.

“They did not want new corridors of infrastructure, so we made sure that we're using existing right of way,” she said. “They did not want the visual impact and some of the newer corridors of infrastructure, we're making sure we're undergrounding portions of the line.”

In Vermont and northern New Hampshire, the transmission lines would be buried underground along state roads. South of Littleton, they would be located within existing transmission corridors.

The developers say the lines could provide 1,200 megawatts of transmission capacity. The project would have the ability to carry electricity from hydro facilities in Quebec to New England, and would also be able to bring electricity from New England into Quebec, a step toward broader macrogrid connectivity across regions.

“Those hydro dams become giant green batteries for the region, and they hold that water until we need the electrons,” Irani-Famili said. “So if you think about our energy system not as one that sees borders, but one that sees resources, this is connecting the Quebec resources to the New England resources and helping all of us get into that cleaner energy future with a lot less build than we otherwise would have.”

Irani-Famili says the transmission line could help facilitate more clean energy resources like offshore wind coming online. In a report released last week by New Hampshire’s Department of Energy, authors said importing Canadian hydropower could be one of the most cost-effective ways to move away from fossil fuels on the electric grid.

National Grid estimates the project will help save energy customers $8.3 billion in its first 12 years. The developers are constructing a $260 million “community benefits plan” that would take some profits from the transmission line and give that money back to communities that host the transmission lines and environmental justice communities in New England.

 

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Crews have restored power to more than 32,000 Gulf Power customers

Gulf Power Hurricane Michael Response details rapid power restoration, grid rebuilding, and linemen support across the Florida Panhandle, Panama City, and coastal areas after catastrophic winds, rain, and storm surge damaged transmission lines and substations.

 

Key Points

Gulf Power's effort to restore electricity after Hurricane Michael, including grid rebuilding and storm recovery.

✅ 3,000+ crews deployed for restoration and rebuilding

✅ Transmission, distribution, and substations severely damaged

✅ Panhandle customers warned of multi-week outages

 

Less than 24 hours ago, Hurricane Micheal devastated the residents in the Florida Panhandle with its heavy winds, rainfall and storm surge, as reflected in impact numbers across the region.

Gulf Power crews worked quickly through the night to restore power to their customers.

Linemen crews were dispatched from numerous of cities all over the U. S., reflecting FPL's massive Irma response to help those impacted by Hurricane Michael.

According to Jeff Rogers, Gulf Power spokesperson; “This was an unprecedented storm, and our customers will see an unprecedented response from Gulf Power. The destruction we’ve seen so far to this community and our electrical system is devastating — we’re seeing damage across our system, including distribution lines, transmission lines and substations.”

Gulf Power told Channel 3 said they dealt with issues like trees and heavy debris blocking roads from strong winds, and communications down can slow down the rebuilding and restoration process, but Gulf Power said they are prepared for this type of storm devastation.

According to Gulf Power, Hurricane Micheal caused so much damage to Panama City's electrical grid that crews not only had repair the lines, they had to rebuild the electrical system, a scenario similar to a complete rebuild seen after Hurricane Laura in Louisiana.

Gulf Power officials say, "Less than 24 hours after the storm, more than 3,000 storm personnel from around the country arrived in the Panama City area Thursday to begin the restoration and rebuilding process. So far, more than 4,000 customers have been restored on Panama City Beach. Power has been restored to all customers in Escambia, Santa Rosa and Okaloosa counties, and it’s expected that customers in Walton County will be restored tonight. But customers in the hardest hit areas should prepare to be without power for weeks, not days in some areas. Initial evaluations by Gulf Power indicate widespread, heavy damage to the electrical system in the Panama City area."

According to Gulf Power, crews have restored power to more than 32,000 Gulf Power customers in the wake of Hurricane Michael, but the work is just beginning for power restoration in the Panama City area.

Rogers said, “We’re heartbroken for our customers and our teammates who live in and near the Panama City area,” said Rogers. “This is the type of storm that changes lives — so aside from restoring power to our customers quickly and safely, our focus in the coming days and weeks will also be to help restore hope to these communities and help give them a sense of normalcy as soon as possible.”

 

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Entergy Creates COVID-19 Emergency Relief Fund to Help Customers in Need

Entergy COVID-19 Emergency Relief Fund provides financial assistance to ALICE households, low-income seniors, and disabled customers via United Way grants for rent, mortgage, utilities, food, and bill payment support during COVID-19, alongside a disconnect moratorium.

 

Key Points

A shareholder-funded program offering essential grants and bill support to Entergy customers affected by COVID-19.

✅ Shareholders commit $700,000; grants distributed via United Way partners.

✅ Focus on ALICE families, low-income seniors, and disabled customers.

✅ Disconnects suspended; bill tools and LIHEAP advocacy underway.

 

In an effort to help working families experiencing financial hardships as a result of the coronavirus pandemic, the Entergy Charitable Foundation has established the COVID-19 Emergency Relief Fund, recognizing the need for electricity across communities.

"The health and safety of our customers, employees and communities is Entergy's top priority," said Leo Denault, chairman and CEO of Entergy Corporation. "For more than 100 years, Entergy has never wavered in our commitment to supporting our customers and the communities we serve. This pandemic is no different. During this challenging time, we are helping lessen the impact of this crisis on the most vulnerable in our communities. I strongly encourage our business partners to join us in this effort."

As devastating and disruptive as this crisis is for everyone, we know from past experience that those most heavily impacted are ALICE households (low-wage working families) and low-income elderly and disabled customers, who often face energy insecurity during such events - roughly 40%-50% of Entergy's customer base.

"We know from experience that working families and low-income elderly and disabled customers are hardest hit during times of crisis," said Patty Riddlebarger, vice president of Entergy's corporate social responsibility. "We are working quickly to make funds available to community partners that serve vulnerable households to lessen the economic impact of the COVID-19 crisis and ensure that families have the resources they need to get by during this time of uncertainty."

To support our most vulnerable customers, Entergy shareholders are committing $700,000 to the COVID-19 Emergency Relief Fund to help qualifying customers with basic needs such as food and nutrition, rent and mortgage assistance, and other critical needs, alongside measures like Texas utilities waiving fees that ease household costs, until financial situations become more stable. Grants from the fund will be provided to United Way organizations and other nonprofit partners across Entergy's service area that are providing services to impacted households.

Company shareholders will also match employee contributions to the COVID-19 relief efforts of local United Way organizations up to $100,000 to maximize impact.

In addition to establishing the COVID-19 Emergency Relief Fund, Entergy is taking additional steps to support and protect our customers during this crisis, similar to PG&E's pandemic response measures, including:

With support from our regulators, we are temporarily suspending customer disconnects, as seen in New Jersey and New York policies, as we continue to monitor the situation.

We are working with our network of community advocates, as the industry coordination with federal partners continues, to request a funding increase of the Low Income Home Energy Assistance Program to help alleviate financial hardships caused by COVID-19 on vulnerable households.

We are developing bill payment solutions and tools to help customers pay their accumulated balances once the disconnect moratorium is lifted.

Already in place to support vulnerable customers is Entergy's The Power to Care program, which provides emergency bill payment assistance to seniors and disabled individuals. To mark the 20th anniversary of Entergy's low-income customer initiative, the limit of shareholders' dollar for dollar match of customer donations was increased from $500,000 to $1 million per year. Shareholders continue to match employee donations dollar for dollar with no limit.

 

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Tube Strikes Disrupt London Economy

London Tube Strikes Economic Impact highlights transport disruption reducing foot traffic, commuter flows, and tourism, squeezing small businesses, hospitality revenue, and citywide growth while business leaders urge negotiations, resolution, and policy responses to stabilize operations.

 

Key Points

Reduced transport options cut foot traffic and sales, straining small businesses and slowing London-wide growth.

✅ Hospitality venues report lower revenue and temporary closures

✅ Commuter and tourism declines reduce daily sales and bookings

✅ Business groups urge swift negotiations to restore services

 

London's economy is facing significant challenges due to ongoing tube strikes, challenges that are compounded by scrutiny of UK energy network profits and broader cost pressures across sectors, with businesses across the city experiencing disruptions that are impacting their operations and bottom lines.

Impact on Small Businesses

Small businesses, particularly those in the hospitality sector, are bearing the brunt of the disruptions caused by the strikes. Many establishments rely on the steady flow of commuters and tourists that the tube system facilitates, while also hoping for measures like temporary electricity bill relief that can ease operating costs during downturns. With reduced transportation options, foot traffic has dwindled, leading to decreased sales and, in some cases, temporary closures.

Economic Consequences

The strikes are not only affecting individual businesses but are also having a ripple effect on the broader economy, a dynamic seen when commercial electricity consumption plummeted in B.C. during the pandemic. The reduced activity in key sectors is contributing to a slowdown in economic growth, echoing periods when BC Hydro demand fell 10% and prompting policy responses such as Ontario electricity rate reductions for businesses, with potential long-term consequences if the disruptions continue.

Calls for Resolution

Business leaders and industry groups are urging for a swift resolution to the strikes. They emphasize the need for dialogue between the involved parties to reach an agreement that minimizes further economic damage and restores normalcy to the city's transportation system.

The ongoing tube strikes in London are causing significant disruptions to the city's economy, particularly affecting small businesses that depend on the efficient movement of people. Immediate action is needed to address the issues, drawing on tools like a subsidized hydro plan used elsewhere to spur recovery, to prevent further economic downturn.

 

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The Evolution of Electric Vehicle Charging Infrastructure in the US

US EV Charging Infrastructure is evolving with interoperable NACS and CCS standards, Tesla Supercharger access, federal funding, ultra-fast charging, mobile apps, and battery advances that reduce range anxiety and expand reliable, nationwide fast-charging access.

 

Key Points

Nationwide network, standards, and funding enabling fast, interoperable EV charging access for drivers across the US.

✅ NACS and CCS interoperability expands cross-network access

✅ Tesla Superchargers opening to more brands accelerate adoption

✅ Federal funding builds fast chargers along highways and communities

 

The landscape of electric vehicle (EV) charging infrastructure in the United States is rapidly evolving, driven by technological advancements, collaborative efforts between automakers and charging networks across the country, and government initiatives to support sustainable transportation.

Interoperability and Collaboration

Recent developments highlight a shift towards interoperability among charging networks, even as control over charging continues to be contested across the market today. The introduction of the North American Charging Standard (NACS) and the adoption of the Combined Charging System (CCS) by major automakers underscore efforts to standardize charging protocols. This move aims to enhance convenience for EV drivers by allowing them to use multiple charging networks seamlessly.

Tesla's Role and Expansion

Tesla, a trailblazer in the EV industry, has expanded its Supercharger network to accommodate other EV brands. This initiative represents a significant step towards inclusivity, addressing range anxiety and supporting the broader adoption of electric vehicles. Tesla's expansive network of fast-charging stations across the US continues to play a pivotal role in shaping the EV charging landscape.

Government Support and Infrastructure Investment

The federal government's commitment to infrastructure development is crucial in advancing EV adoption. The Bipartisan Infrastructure Law allocates substantial funding for EV charging station deployment along highways and in underserved communities, while automakers plan 30,000 chargers to complement public investment today. These investments aim to expand access to charging infrastructure, promote economic growth, and reduce greenhouse gas emissions associated with transportation.

Technological Advancements and User Experience

Technological innovations in EV charging, including energy storage and mobile charging solutions, continue to improve user experience and efficiency. Ultra-fast charging capabilities, coupled with user-friendly interfaces and mobile apps, simplify the charging process for consumers. Advancements in battery technology also contribute to faster charging times and increased vehicle range, enhancing the practicality and appeal of electric vehicles.

Challenges and Future Outlook

Despite progress, challenges remain in scaling EV charging infrastructure to meet growing demand. Issues such as grid capacity constraints are coming into sharp focus, alongside permitting processes and funding barriers that necessitate continued collaboration between stakeholders. Addressing these challenges is crucial in supporting the transition to sustainable transportation and achieving national climate goals.

Conclusion

The evolution of EV charging infrastructure in the United States reflects a transformative shift towards sustainable mobility solutions. Through interoperability, government support, technological innovation, and industry collaboration, stakeholders are paving the way for a robust and accessible charging ecosystem. As investments and innovations continue to shape the landscape, and amid surging U.S. EV sales across 2024, the trajectory of EV infrastructure development promises to accelerate, ensuring reliable and widespread access to charging solutions that support a cleaner and greener future.

 

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Rio Tinto Completes Largest Off-Grid Solar Plant in Canada's Northwest Territories

Rio Tinto Off-Grid Solar Power Plant showcases renewable energy at the Diavik Diamond Mine in Canada's Northwest Territories, cutting diesel use, lowering carbon emissions, and boosting remote mining resilience with advanced photovoltaic technology.

 

Key Points

A remote solar PV plant at Diavik mine supplying clean power while cutting diesel use, carbon emissions, and costs.

✅ Largest off-grid solar in Northwest Territories

✅ Replaces diesel generators during peak solar hours

✅ Enhances sustainability and lowers operating costs

 

In a significant step towards sustainable mining practices, Rio Tinto has completed the largest off-grid solar power plant in Canada’s Northwest Territories. This groundbreaking achievement not only highlights the company's commitment to renewable energy, as Canada nears 5 GW of solar capacity nationwide, but also sets a new standard for the mining industry in remote and off-grid locations.

Located in the remote Diavik Diamond Mine, approximately 220 kilometers south of the Arctic Circle, Rio Tinto's off-grid solar power plant represents a technological feat in harnessing renewable energy in challenging environments. The plant is designed to reduce reliance on diesel fuel, traditionally used to power the mine's operations, and mitigate carbon emissions associated with mining activities.

The decision to build the solar power plant aligns with Rio Tinto's broader sustainability goals and commitment to reducing its environmental footprint. By integrating renewable energy sources like solar power, a strategy that renewable developers say leads to better, more resilient projects, the company aims to enhance energy efficiency, lower operational costs, and contribute to global efforts to combat climate change.

The Diavik Diamond Mine, jointly owned by Rio Tinto and Dominion Diamond Mines, operates in a remote region where access to traditional energy infrastructure is limited, and where, despite lagging solar demand in Canada, off-grid solutions are increasingly vital for reliability. Historically, diesel generators have been the primary source of power for the mine's operations, posing logistical challenges and environmental impacts due to fuel transportation and combustion.

Rio Tinto's investment in the off-grid solar power plant addresses these challenges by leveraging abundant sunlight in the Northwest Territories to generate clean electricity directly at the mine site. The solar array, equipped with advanced photovoltaic technology, which mirrors deployments such as Arvato's first solar plant in other sectors, is capable of producing a significant portion of the mine's electricity needs during peak solar hours, reducing reliance on diesel generators and lowering overall carbon emissions.

Moreover, the completion of the largest off-grid solar power plant in Canada's Northwest Territories underscores the feasibility and scalability of renewable energy solutions, from rooftop arrays like Edmonton's largest rooftop solar to off-grid systems in remote and resource-intensive industries like mining. The success of this project serves as a model for other mining companies seeking to enhance sustainability practices and operational resilience in challenging geographical locations.

Beyond environmental benefits, Rio Tinto's initiative is expected to have positive economic and social impacts on the local community. By reducing diesel consumption, the company mitigates air pollution and noise levels associated with mining operations, improving environmental quality and contributing to the well-being of nearby residents and wildlife.

Looking ahead, Rio Tinto's investment in renewable energy at the Diavik Diamond Mine sets a precedent for responsible resource development and sustainable mining practices in Canada, where solar growth in Alberta is accelerating, and globally. As the mining industry continues to evolve, integrating renewable energy solutions like off-grid solar power plants will play a crucial role in achieving long-term environmental sustainability and operational efficiency.

In conclusion, Rio Tinto's completion of the largest off-grid solar power plant in Canada's Northwest Territories marks a significant milestone in the mining industry's transition towards renewable energy. By harnessing solar power to reduce reliance on diesel generators, the company not only improves operational efficiency and environmental stewardship but also adds to momentum from corporate power purchase agreements like RBC's Alberta solar deal, setting a positive example for sustainable development in remote regions. As global demand for responsible mining practices grows, initiatives like Rio Tinto's off-grid solar project demonstrate the potential of renewable energy to drive positive change in resource-intensive industries.

 

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