First Solar faces new challenges

By Phoenix Business Journal


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First Solar has been one of the biggest players in solar, but it has some challenges on the horizon.

ItÂ’s not insurmountable for a company that is projecting to make between $3.7 billion and $3.9 billion for 2011, but the solar market can change fast.

On a conference call with analysts following the release of its first quarter earnings, First Solar officials said the challenges arenÂ’t unique.

One big hurdle the company has to deal with is financing from the U.S. Department of EnergyÂ’s loan guarantee program. Funds from the program as going into a deal that would have First Solar selling its Agua Caliente power plant to NRG Energy Inc. NRG has been pegged to get $967 million from the DOE program, but the deal is still pending.

ItÂ’s similar to what happened with Abengoa Solar on its Solana Generating Station. The company received notice of the loan guarantee in July 2010 but didnÂ’t finalize the deal until December.

“The process on the DOE side has taken just a little longer than expected,” said Larry Polizzotto, the company’s vice president of investor relations. “That could end up getting done by the end of the second quarter, but it might go into the third quarter.”

First Solar has three other projects in the DOE pipeline, and all seem to be moving forward, Polizzotto said.

Other issues involved the uncertainty over feed-in tariff programs in Europe. Several European countries, including Spain and Germany, have either dropped the tariffs or are planning to do so. The tariffs are a fixed amount that solar energy providers receive from utilities to buy power.

The result has First Solar potentially accelerating its North American pipeline if the demand in Europe isnÂ’t there. The company added 50 megawatts to its plans for this year in North America, and that number could grow further.

Competitive challenges may lie in the future. SunPower Corp. announced that French oil giant Total SA was putting in an estimated $4.2 billion to take a majority stake in the silicon panel manufacturer based in San Jose. That could add muscle to SunPowerÂ’s efforts to bring its panels to a larger market.

That comes after a mid-April announcement that General Electric was getting back into the solar market and using the same type of thin-film panels First Solar has used to develop solar systems.

GE doesnÂ’t have the development pipeline First Solar does, but it does have capital, and it has been a lender for solar systems in the past.

Rob Gillette, CEO of First Solar, said he expects other large companies to jump into solar as it becomes more cost effective and prices continue to fall.

“I think there will be more and more large companies that will jump into the industry, and we need a lot of viable competitors to really drive the technology into the utility sector,” he said.

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Volkswagen's German Plant Closures

VW Germany Plant Closures For EV Shift signal a strategic realignment toward electric vehicles, sustainability, and zero-emission mobility, optimizing manufacturing, cutting ICE capacity, boosting battery production, retraining workers, and aligning with the Accelerate decarbonization strategy.

 

Key Points

VW is shuttering German plants to cut ICE costs and scale EV output, advancing sustainability and competitiveness.

✅ Streamlines operations; reallocates capital to EV platforms and batteries.

✅ Cuts ICE output, lowers emissions, and boosts clean manufacturing capacity.

✅ Retrains workforce amid closures; invests in software and charging tech.

 

Volkswagen (VW), one of the world’s largest automakers, is undergoing a significant transformation with the announcement of plant closures in Germany. As reported by The Guardian, this strategic shift is part of VW’s broader move towards prioritizing electric vehicles (EVs) and adapting to the evolving automotive market as EVs reach an inflection point globally. The decision highlights the company’s commitment to sustainability and innovation amid a rapidly changing industry landscape.

Strategic Plant Closures

Volkswagen’s decision to close several of its plants in Germany marks a pivotal moment in the company's history. These closures are part of a broader strategy to streamline operations, reduce costs, and focus on the production of electric vehicles. The move reflects VW’s response to the growing demand for EVs and the need to transition from traditional internal combustion engine (ICE) vehicles to cleaner, more sustainable alternatives.

The affected plants, which have been key components of VW’s manufacturing network, will cease production as the company reallocates resources and investments towards its electric vehicle programs. This realignment is aimed at improving operational efficiency and ensuring that VW remains competitive in a market that is increasingly oriented towards electric mobility.

A Shift Towards Electric Vehicles

The closures are closely linked to Volkswagen’s strategic shift towards electric vehicles. The automotive industry is undergoing a profound transformation as governments and consumers place greater emphasis on sustainability and reducing carbon emissions. Volkswagen has recognized this shift and is investing heavily in the development and production of EVs as part of its "Accelerate" strategy, anticipating widespread EV adoption within a decade across key markets.

The company’s commitment to electric vehicles is evident in its plans to launch a range of new electric models and increase production capacity for EVs. Volkswagen aims to become a leader in the electric mobility sector by leveraging its technological expertise and scale to drive innovation and expand its EV offerings.

Economic and Environmental Implications

The closure of VW’s German plants carries both economic and environmental implications. Economically, the move will impact the workforce and local economies dependent on these manufacturing sites. Volkswagen has indicated that it will work on providing support and retraining opportunities for affected employees, as the EV aftermarket evolves and reshapes service needs, but the transition will still pose challenges for workers and their communities.

Environmentally, the shift towards electric vehicles represents a significant positive development. Electric vehicles produce zero tailpipe emissions, which aligns with global efforts to combat climate change and reduce air pollution. By focusing on EV production, Volkswagen is contributing to the reduction of greenhouse gas emissions and supporting the transition to a more sustainable transportation system.

Challenges and Opportunities

While the transition to electric vehicles presents opportunities, it also comes with challenges. Volkswagen will need to manage the complexities of closing and repurposing its existing plants while ramping up production at new or upgraded facilities dedicated to EVs. This transition requires substantial investment in new technologies, infrastructure, and training, including battery supply strategies that influence manufacturing footprints, to ensure a smooth shift from traditional automotive manufacturing.

Additionally, Volkswagen faces competition from other automakers that are also investing heavily in electric vehicles, including Daimler's electrification plan outlining the scope of its transition. To maintain its competitive edge, VW must continue to innovate and offer attractive, high-performance electric models that meet consumer expectations.

Future Outlook

Looking ahead, Volkswagen’s focus on electric vehicles aligns with broader industry trends and regulatory pressures. Governments worldwide are implementing stricter emissions regulations and providing incentives for EV adoption, although Germany's plan to end EV subsidies has sparked debate domestically, creating a favorable environment for companies that are committed to sustainability and clean technology.

Volkswagen’s investment in electric vehicles and its strategic realignment reflect a proactive approach to addressing these trends. The company’s ability to navigate the challenges associated with plant closures and the transition to electric mobility will be critical, especially as Europe's EV slump tests demand signals, in determining its success in the evolving automotive landscape.

Conclusion

Volkswagen’s decision to close several plants in Germany and focus on electric vehicle production represents a significant shift in the company’s strategy. While the closures present challenges, they also highlight Volkswagen’s commitment to sustainability and its response to the growing demand for cleaner transportation solutions. By investing in electric vehicles and adapting its operations, Volkswagen aims to lead the way in the transition to a more sustainable automotive future. As the company moves forward, its ability to effectively manage this transition will be crucial in shaping its role in the global automotive market.

 

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Rolls-Royce expecting UK approval for mini nuclear reactor by mid-2024

Rolls-Royce SMR UK Approval underscores nuclear innovation as regulators review a 470 MW factory-built modular reactor, aiming for grid power by 2029 to boost energy security, cut fossil fuels, and accelerate decarbonization.

 

Key Points

UK regulatory clearance for Rolls-Royce's 470 MW modular reactor, targeting grid power by 2029 to support clean energy.

✅ UK design approval expected by mid 2024

✅ First 470 MW unit aims for grid power by 2029

✅ Modular, factory-built; est. £1.8b per 10-acre site

 

A Rolls-Royce (RR.L) design for a small modular nuclear reactor (SMR) will likely receive UK regulatory approval by mid-2024, reflecting progress seen in the US NRC safety evaluation for NuScale as a regulatory benchmark, and be able to produce grid power by 2029, Paul Stein, chairman of Rolls-Royce Small Modular Reactors.

The British government asked its nuclear regulator to start the approval process in March, in line with the UK's green industrial revolution agenda, having backed Rolls-Royce’s $546 million funding round in November to develop the country’s first SMR reactor.

Policymakers hope SMRs will help cut dependence on fossil fuels and lower carbon emissions, as projects like Ontario's first SMR move ahead in Canada, showing momentum.

Speaking to Reuters in an interview conducted virtually, Stein said the regulatory “process has been kicked off, amid broader moves such as a Canadian SMR initiative to coordinate development, and will likely be complete in the middle of 2024.

“We are trying to work with the UK Government, and others to get going now placing orders, echoing expansions like Darlington SMR plans in Ontario, so we can get power on grid by 2029.”

In the meantime, Rolls-Royce will start manufacturing parts of the design that are most unlikely to change, while advancing partnerships like a MoU with Exelon to support deployment, Stein added.

Each 470 megawatt (MW) SMR unit costs 1.8 billion pounds ($2.34 billion) and would be built on a 10-acre site, the size of around 10 football fields, though projects in New Brunswick SMR debate have prompted questions about costs and timelines.

Unlike traditional reactors, SMRs are cheaper and quicker to build and can also be deployed on ships and aircraft. Their “modular” format means they can be shipped by container from the factory and installed relatively quickly on any proposed site.

 

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Cheaper electricity rate for customers on First Nations not allowed, Manitoba appeal court rules

Manitoba Hydro Court Ruling affirms the Public Utilities Board exceeded its jurisdiction by ordering a First Nations rate class, overturning an electricity rates appeal tied to geography, poverty, and regulatory authority in Manitoba.

 

Key Points

A decision holding the PUB lacked authority to create a First Nations rate class, restoring uniform electricity pricing.

✅ Court says PUB exceeded jurisdiction creating on-reserve rate

✅ Equalized electricity pricing reaffirmed across Manitoba

✅ Geography, not poverty, found decisive in unlawful rate class

 

Manitoba Hydro was wrongly forced to create a new rate class for electricity customers living on First Nations, the Manitoba Court of Appeal has ruled. 

The court decided the Public Utilities Board "exceeded its jurisdiction" by mandating Indigenous customers on First Nations could have a different electricity rate from other Manitobans. 

The board made the order in 2018, which exempted those customers from the general rate increase that year of 3.6 per cent.

"The directive constituted the creation and implementation of general social policy, an area outside of the PUB's jurisdiction and encroaching into areas that are better suited to the federal and provincial government," says the decision, which was released Tuesday.

Hydro's appeal of the PUB's decision went to court earlier this year.

At the time, the Crown corporation acknowledged many Indigenous people on First Nations live in poverty, but it argued the Public Utilities Board was overstepping its authority in trying to address the issue by creating a new rate class.

It also argued it was against provincial law to charge different rates in different areas of the province.

The PUB, however, insisted that legislation gives it the right to decide which factors are relevant when considering electricity prices, such as social issues. 

Special Manitoba Hydro rate class needed to offset challenges of living on First Nations, appeal court hears
Manitoba Hydro can appeal order to create special First Nation rate
The board had heard evidence that some customers were making "unacceptable" sacrifices to keep the lights on each month.

Decision 'heavy-handed': AMC
The Assembly of Manitoba Chiefs, an intervener in the appeal, had backed the utility board's position. It said on-reserve customers are disproportionately vulnerable to rate hikes over time.

Grand Chief Arlen Dumas said Wednesday he was surprised by the court's ruling. 

He argued Indigenous people are unduly excluded in the setting of electricity rates in Manitoba.

"I will be speaking with my federal and provincial counterparts on how we deal with this issue, because I think it's the wrong [decision]. It's heavy-handed and we need to address it."

The appeal court judges said there is past precedent for setting equal electricity rates, regardless of where customers live. Legislation to that effect was made in the early 2000s and a few years ago, the PUB recognized that geographical limitations should not be imposed on a class of customers.

Since the board's new order didn't extend the same savings to First Nations members who don't live on reserve but face similar financial circumstances, it is clear the deciding factor was geography, rather than poverty or treaty status, the judges said.

Manitoba Hydro temporarily cutting 200 jobs, many of them front-line workers
"In my view, the PUB erred in law when it created an on-reserve class based solely on a geographic region of the province in which customers are located," the decision read.

While Manitoba Hydro objected to the PUB's order in 2018, it still devoted money to create the new customer class.

Spokesperson Bruce Owen said the utility is still studying the impact of the court's decision, but it appreciates the ruling.  

"We all recognize that many people on First Nations have challenges, but our argument was solely on whether or not the PUB had the authority to create a special rate class based on where people live."

Owen added that Hydro recognizes electricity rates can be a hardship on individuals facing poverty. He said those considerations are part of the discussions the corporation has with the utilities board.

 

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Nevada on track to reach RPS mandate of 50% renewable electricity by 2030: report

Nevada Renewable Portfolio Standard 2030 targets 50% clean energy, advancing solar, geothermal, and wind, cutting GHG emissions, phasing out coal, and expanding storage, EV infrastructure, and in-state renewables under PUCN oversight and tax abatements.

 

Key Points

A state mandate requiring 50% of electricity from renewables by 2030, driving solar, geothermal, wind, and storage.

✅ 50% clean power by 2030; 100% carbon-free target by 2050

✅ Growth in solar, geothermal, wind; coal phase-out; natural gas remains

✅ RETA incentives spur 6.1 GW capacity, jobs, and in-state investment

 

Nevada is on track to meet its Renewable Portfolio Standard of 50% of electricity generated by renewable energy sources by 2030, according to the Governor's Office of Energy's annual Status of Energy Report.

Based on compliance reports the Public Utilities Commission of Nevada has received, across all providers, about 20% of power is currently generated by renewable resources, and, nationally, renewables ranked second in 2020 as filings show Nevada's investor-owned utility and other power providers have plans to reach the state's ambitious RPS of 50% by 2030, according to the report released Jan. 28.

"Because transportation and electricity generation are Nevada's two largest contributors to greenhouse gas emissions, GOE's program work in 2021 underscored our focus on transportation electrification and reaching the state's legislatively required renewable portfolio standard," GOE Director David Bobzien said in a statement Jan. 28. "While electricity generated from renewable resources currently accounts for about 25% of the state's electricity, a share similar to projections that renewables will soon provide about one-fourth of U.S. electricity overall, we continue to collaborate with the Public Utilities Commission of Nevada, electricity providers, the renewable energy industry and conservation organizations to ensure Nevada reaches our target of 50% clean energy by 2030."

The state's RPS, enacted in 1997 and last modified in 2019, requires an increase in renewable energy, starting with 22% in 2020 and increasing to 50% by 2030. The increase in renewables will reduce GHG emissions and help the state reach its goal of 100% carbon-free power by 2050, while states like Rhode Island have a 100% by 2030 plan, highlighting varying timelines.

Renewable additions
The state added 1.332 GW of renewable capacity in 2021 as part of the Renewable Energy Tax Abatement program, at a time when U.S. renewable energy hit a record 28% in April, for a total renewable capacity of 6.117 GW, according to the report.

The RETA program awards partial sales and use tax and partial property-tax abatements to eligible renewable energy facilities, which increase Nevada's tax revenue and create jobs in a growing industry. Eligible projects must employ at least 50% Nevada workers, pay 175% of Nevada's average wage during construction, and offer health care benefits to workers and their dependents.

Since its adoption in 2010, the GOE has approved 60 projects, including large-scale solar PV, solar thermal, biomass, geothermal and wind projects throughout the state, according to the report. Projects granted abatements in 2021 include:

  • 100-MW Citadel Solar Project
  • 150-MW Dry Lake Solar + Storage Project
  • 714-MW Gemini Solar Project
  • 55-MW North Valley Power Geothermal Project
  • 113-MW Boulder Flats Solar Project
  • 200-MW Arrow Canyon Solar Project

"Nevada does not produce fossil fuels of any significant amount, and gasoline, jet fuel and natural gas for electricity or direct use must be imported," according to the report. "Transitioning to domestically produced renewable resources and electrified transportation can provide cost savings to Nevada residents and businesses, as seen in Idaho's largely renewable mix today, while reducing GHG emissions. About 86% of the fuel for energy that Nevada consumes comes from outside the state."

Phasing out coal plants
Currently, more than two-thirds of the state's electricity is produced by natural gas-fired power plants, with renewables covering most of the remaining generation, according to the report. Nevada continues to phase out its remaining coal power plants, as renewables surpassed coal nationwide in 2022, which provide less than 10% of produced electricity.

"Nevada has seen a significant increase in capturing its abundant renewable energy resources such as solar and geothermal," according to the report. "Renewable energy production continues to grow, powering Nevada homes and business and serves to diversify the state's economy by exporting solar and geothermal to neighboring states, as California neared 100% renewable electricity for the first time. Nevada has more than tripled its renewable energy production since 2011."

 

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Bitcoin consumes 'More electricity than Argentina' - Cambridge

Bitcoin energy consumption is driven by mining electricity demand, with TWh-scale power use, carbon footprint concerns, and Cambridge estimates. Rising prices incentivize more hardware; efficiency gains and renewables adoption shape sustainability outcomes.

 

Key Points

Bitcoin energy consumption is mining's electricity use, driven by price, device efficiency, and energy mix.

✅ Cambridge tool estimates ~121 TWh annual usage

✅ Rising BTC price incentivizes more mining hardware

✅ Efficiency, renewables, and costs shape footprint

 

"Mining" for the cryptocurrency is power-hungry, with power curtailments reported during heat waves, involving heavy computer calculations to verify transactions.

Cambridge researchers say it consumes around 121.36 terawatt-hours (TWh) a year - and is unlikely to fall unless the value of the currency slumps, even as Americans use less electricity overall.

Critics say electric-car firm Tesla's decision to invest heavily in Bitcoin undermines its environmental image.

The currency's value hit a record $48,000 (£34,820) this week. following Tesla's announcement that it had bought about $1.5bn bitcoin and planned to accept it as payment in future.

But the rising price offers even more incentive to Bitcoin miners to run more and more machines.

And as the price increases, so does the energy consumption, according to Michel Rauchs, researcher at The Cambridge Centre for Alternative Finance, who co-created the online tool that generates these estimates.

“It is really by design that Bitcoin consumes that much electricity,” Mr Rauchs told BBC’s Tech Tent podcast. “This is not something that will change in the future unless the Bitcoin price is going to significantly go down."

The online tool has ranked Bitcoin’s electricity consumption above Argentina (121 TWh), the Netherlands (108.8 TWh) and the United Arab Emirates (113.20 TWh) - and it is gradually creeping up on Norway (122.20 TWh).

The energy it uses could power all kettles used in the UK, where low-carbon generation stalled in 2019, for 27 years, it said.

However, it also suggests the amount of electricity consumed every year by always-on but inactive home devices in the US alone could power the entire Bitcoin network for a year, and in Canada, B.C. power imports have helped meet demand.

Mining Bitcoin
In order to "mine" Bitcoin, computers - often specialised ones - are connected to the cryptocurrency network.

They have the job of verifying transactions made by people who send or receive Bitcoin.

This process involves solving puzzles, which, while not integral to verifying movements of the currency, provide a hurdle to ensure no-one fraudulently edits the global record of all transactions.

As a reward, miners occasionally receive small amounts of Bitcoin in what is often likened to a lottery.

To increase profits, people often connect large numbers of miners to the network - even entire warehouses full of them, as seen with a Medicine Hat bitcoin operation backed by an electricity deal.

That uses lots of electricity because the computers are more or less constantly working to complete the puzzles, prompting some utilities to consider pauses on new crypto loads in certain regions.

The University of Cambridge tool models the economic lifetime of the world's Bitcoin miners and assumes that all the Bitcoin mining machines worldwide are working with various efficiencies.

Using an average electricity price per kilowatt hour ($0.05) and the energy demands of the Bitcoin network, it is then possible to estimate how much electricity is being consumed at any one time, though in places like China's power sector data can be opaque.
 

 

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EPA, New Taipei spar over power plant

Shenao Power Plant Controversy intensifies as the EPA, Taipower, and New Taipei officials clash over EIA findings, a marine conservation area, fisheries, public health risks, and protests against a coal-fired plant in Rueifang.

 

Key Points

Dispute over coal plant EIA, marine overlap, and health risks, pitting EPA and Taipower against New Taipei and residents.

✅ EPA approved EIA changes; city cites marine conservation conflict

✅ Rueifang residents protest; 400+ signatures, wardens oppose

✅ Debate centers on fisheries, public health, and coal plant impacts

 

The controversy over the Shenao Power Plant heated up yesterday as Environmental Protection Administration (EPA) and New Taipei City Government officials quibbled over the project’s potential impact on a fisheries conservation area and other issues, mirroring New Hampshire hydropower clashes seen elsewhere.

State-run Taiwan Power Co (Taipower) wants to build a coal-fired plant on the site of the old Shenao plant, which was near Rueifang District’s (瑞芳) Shenao Harbor.

The company’s original plan to build a new plant on the site passed an environmental impact assessment (EIA) in 2006, similar to how NEPA rules function in the US, and the EPA on March 14 approved the firm’s environmental impact difference analysis report covering proposed changes to the project.

#google#

That decision triggered widespread controversy and protests by local residents, environmental groups and lawmakers, echoing enforcement disputes such as renewable energy pollution cases reported in Maryland.

The controversy reached a new peak after New Taipei City Mayor Eric Chu on Tuesday last week posted on Facebook that construction of wave breakers for the project would overlap with a marine conservation area that was established in November 2014.

The EPA and Taipower chose to ignore the demarcation lines of the conservation area, Chu wrote.

Dozens of residents from Rueifang and other New Taipei City districts yesterday launched a protest at 9am in front of the Legislative Yuan in Taipei, amid debates similar to the Maine power line proposal in the US, where the Health, Environment and Labor Committee was scheduled to review government reports on the project.

More than 400 Rueifang residents have signed a petition against the project, including 17 of the district’s 34 borough wardens, Anti-Shenao Plant Self-Help Group director Chen Chih-chiang said.

Ruifang residents have limited access to information, and many only became aware of the construction project after the EPA’s March 14 decision attracted widespread media coverage, Chen said,

Most residents do not support the project, despite Taipower’s claims to the contrary, Chen said.

New Power Party Executive Chairman Huang Kuo-chang, who represents Rueifang and adjacent districts, said the EPA has shown an “arrogance of power” by neglecting the potential impact on public health and the local ecology of a new coal-fired power plant, even as it moves to revise coal wastewater limits elsewhere.

Huang urged residents in Taipei, Keelung, Taoyaun and Yilan County to reject the project.

If the New Taipei City Government was really concerned about the marine conservation area, it should have spoken up at earlier EIA meetings, rather than criticizing the EIA decision after it was passed, Environmental Protection Administration Deputy Minister Chan Shun-kuei told lawmakers at yesterday’s meeting.

Chan said he wondered if Chu was using the Shenao project for political gain.

However, New Taipei City Environmental Protection Department specialist Sun Chung-wei  told lawmakers that the Fisheries Agency and other experts voiced concerns about the conservation area during the first EIA committee meeting on the proposed changes to the Shenao project on June 15 last year.

Sun was invited to speak to the legislative committee by Chinese Nationalist Party (KMT) Legislator Arthur Chen.

While the New Taipei City Fisheries and Fishing Port Affairs Management Office did not present a “new” opinion during later EIA committee meetings, that did not mean it agreed to the project, Sun said.

However, Chan said that Sun was using a fallacious argument and trying to evade responsibility, as the conservation area had been demarcated by the city government.

 

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