A Look Back at Solar Energy in 2012

Vince Font, Contributing Editor
December 19, 2012 | 9 Comments

Job outlook, while encouraging within the United States, was not so rosy in China in 2012. In November, it was reported that Suntech Power Holdings (which is the world’s biggest maker of solar panels) would be shedding some 1,500 jobs in China to reduce operating costs and ratchet down on solar cell capacity.

Saudi Arabia: The Dark Horse

When discussing landmark events in solar, it’s impossible to ignore what took place in Saudi Arabia earlier in 2012. In May, the King Abdullah City for Atomic and Renewable Energy (also known as K.A.CARE) established the goal to develop 54,000 MW of renewable energy capacity by 2030.

Why is an oil-rich nation like Saudi Arabia concerned with adopting renewable energy? Quite simply, to limit the local consumption of oil so that exports can be increased. With low cost access to oil and unchecked usage, it’s believed that Saudi Arabia could find itself entirely out of the oil exportation business by 2030.

Under K.A.CARE’s proposed plan, 41,000 MW of the total 54,000 MW capacity will come whole from solar: 16,000 MW from photovoltaic (PV) projects and 25,000 from solar thermal projects. As a first phase, 700 MW of utility-scale projects are set to be undertaken by the end of 2013.

Norman calls the K.A.CARE program “a massive game changer for the global renewable energy industry, and particularly solar” and says that it could also have a beneficial impact on the local job market in Saudi. Unemployment is estimated at around 10 percent in the Kingdom. “The government sees this as an opportunity to create a global center of excellence for renewables, in addition to job creation.”

Norman explains that Saudi Arabia will require a certain percentage of local content on all renewables projects; this is seen as a means to stimulate the local job market.

2012’s Impact on CSP

With the low cost of solar PV panels, some may wonder what impact 2012 had on the solar thermal market, of which concentrated solar power (CSP) is a big part. Did CSP suffer due to the comparatively low cost of solar PV? It depends on who you ask, really.

The answer to that question, according to Norman, is obvious. “As a result of the reduction in PV prices, CSP has taken a hit in the last few years,” Norman said. “But they also have an advantage that can’t be overlooked, and that’s storage. Some developers have devised CSP plants that can store energy. That’s something that PV technology can’t measure up to at present.”

Not everyone sees 2012 as having been a good year for CSP. Jigar Shah, partner at Inerjys Ventures, predicted the death of CSP as far back as 2007 and calls it a technology that’s officially punched the big ticket. “I think in 2012, CSP basically died,” Shah said. “Siemens shut down their CSP plant. Areva is building one unit in Morocco, but they shut down CSP plants in Australia and a few other places. BrightSource wasn’t able to go public, so they’ve got an existing utility contract they’re honoring with an existing DOE loan guarantee — and I don’t think anyone believes that they’re going to get a second contract. CSP is dead.”

While the aforementioned U.S. Solar Market Insight Report mentioned several large scale CSP projects underway in the United States, it was reported that the third quarter of 2012 saw no new capacity installed in that segment.

Additional Solar Highlights from Around the World in 2012

In June, Chile brought its largest PV plant online. Although modest in comparison with the scope of other global projects, the 1 MW Calama Solar 3 was an important step that has since resulted in increased interest among developers and investors. There were other notable Latin American solar developments in 2012, including two Peruvian solar farms (the already operational Tacna solar farm and the still in production Panamericana solar farm) whose combined generating capacity will reach 40 MW.
In Germany, a 145 MW solar park in Neuhardenberg, Brandenberg, was constructed in a record-breaking five weeks. The solar park was finished just under the wire to beat the expiration of subsidies for PV installations greater than 10 MW in size. The construction of Neuhardenberg solar park, which is scheduled to be fully operational by the end of 2012, helped push Germany’s total installed solar capacity for the year to over 7,000 MW.
8minuteenergy Renewables, a solar PV developer located in southern California, received the financial stamp of approval in November to proceed with construction on a project that, once in operation, will be the largest PV farm in the world. The Mount Signal solar farm, which is being constructed in Imperial Valley, will generate 800 MW (DC) of utility-scale energy.
The Charanka Solar Park in Gujarat, India, is home to numerous independent solar power stations, occupying approximately 2000-hectares of land. While many the park’s solar stations remain in production, 2012 saw its combined total output capacity reach nearly 700 MW.
In an effort to shore up their enormous oversupply of solar panels, China decided in 2012 to underwrite a $1.6B loan — through the China Development Bank (CDB), which is seen as the engine behind the country’s economic development — to essentially create downstream demand within its borders. The loan was given to Shanghai-headquartered Sky Solar, which earlier in 2012 broke ground on two PV projects in China: one 800-MW project in the Xinjiang Province, and another 50 MW plant in the Qinghai Province.

Lead image: 2012 street sign via Shutterstock

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9 Comments

ANONYMOUS
December 31, 2012

Third-party financing is a double-edged sword for sure. Our residential team has been forced to use leases to compete in the marketplace. To date, I am still not a fan of the lease or PPA as financial vehicles for residential, but if we do not participate, we will not survive. I worry less about commercial leases, as the lease vehicle has been a viable option for capital improvements for many years, and the decision-makers are typically more savvy than a homeowner, who is being sold on the idea that he/she is getting a "free system", by putting no money down.

This is a classic example of "Buyer Beware."

Anumakonda Jagadeesh
December 23, 2012

Good article.
Good article.
One problem with solar panels that I have repeatedly raised is dust. It's everywhere, and the atmosphere is full of it — it's estimated that about 1,000 tons of dust fall to Earth from space each year. That's a lot of dust, and it coats everything, including solar panels. And more dust is kicked up by the wind.

Desert countries are of course best suited to photovoltaic generation, but keep in mind that arid regions also have a bigger problem with dust, that means PV panels have to be frequently cleaned to maintain optimum power production, and that of course requires a further expenditure of energy for maintenance.

Some countries are setting up Vast solar arrays in desert countries and exporting the power to other countries. And the bigger the solar park, the more people and machines will be needed to keep making the rounds and cleaning the panels, especially after a dust storm. This continuing expenditure of energy for maintenance needs to be taken into account. If cleaning is neglected, then before you know it a solar park's output will drop to half or even below as dust continues to accumulate.
Dust accumulation on the Solar Panels is a big problem especially in arid regions.
Everybody knows anything immobile is quickly covered, whether hanging laundry, parked cars or solar panels.
Unless regularly removed, accumulated dust can in one month reduce a solar panel's efficiency by 35 per cent, according to some experts, more if there is a dust storm. Making matters worse is that, in addition to the dust that blows in from the desert, the region's relatively high humidity helps turn fine dust into a sort of crust. "It makes the dust stick,"

Dr.A.Jagadeesh Nellore(AP),India
E-mail: anumakonda.jagadeesh@gmail.com

Anumakonda Jagadeesh
December 23, 2012

Why not Scientists develop non sticky dust glass ? A glass where the dust won't stick to the surface but slides with a periodic jerk. In Rajasthan,India there is ambitious Solar PV Programme for large scale power. Dust storms in Rajasthan during summer are common which are carried to far way places.
The Loo is a strong, hot and dry summer afternoon wind from the west which blows over the western Indo-Gangetic Plain region of North India and Pakistan. It is especially strong in the months of May and June. Due to its very high temperatures (45 °C–50 °C or 115°F-120°F), exposure to it often leads to fatal heat strokes.
Dr.A.Jagadeesh Nellore(AP),India
E-mail: anumakonda.jagadeesh@gmail.com

Anumakonda Jagadeesh
December 22, 2012

Good Article.
One problem with solar panels that I have repeatedly raised is dust. It's everywhere, and the atmosphere is full of it — it's estimated that about 1,000 tons of dust fall to Earth from space each year. That's a lot of dust, and it coats everything, including solar panels. And more dust is kicked up by the wind.

Desert countries are of course best suited to photovoltaic generation, but keep in mind that arid regions also have a bigger problem with dust, that means PV panels have to be frequently cleaned to maintain optimum power production, and that of course requires a further expenditure of energy for maintenance.

Some countries are setting up Vast solar arrays in desert countries and exporting the power to other countries. And the bigger the solar park, the more people and machines will be needed to keep making the rounds and cleaning the panels, especially after a dust storm. This continuing expenditure of energy for maintenance needs to be taken into account. If cleaning is neglected, then before you know it a solar park's output will drop to half or even below as dust continues to accumulate.
Dust accumulation on the Solar Panels is a big problem especially in arid regions.
Everybody knows anything immobile is quickly covered, whether hanging laundry, parked cars or solar panels.
Unless regularly removed, accumulated dust can in one month reduce a solar panel's efficiency by 35 per cent, according to some experts, more if there is a dust storm. Making matters worse is that, in addition to the dust that blows in from the desert, the region's relatively high humidity helps turn fine dust into a sort of crust. "It makes the dust stick,"

Using precious water in those regions is expensive nor regular cleaning manually large installations.

Dr.A.Jagadeesh Nellore(AP),India
E-mail: anumakonda.jagadeesh@gmail.com

Forrest Jones
December 21, 2012

Excellent article, it is great to see the growth and consistency of the PV Market. Consistency, a stable Dollar and low taxes, all help to provide a predictable and long term energy solution. That being said, the author sidestepped the ethical issue of the 'Legality of Solar Leases' which: 1: do not pay the customer the fair amount that their solar panels produce. 2: defraud the Federal Government by saying the installation cost more than it should have, to get a bigger share of the 30% Federal Tax Incentive. 3: Will not give the customer a fair deal when they try to buy back their system at the end of the lease or when the house sells. 4: Is unfair to competing Installers. The Solar Lease people say that they can install the system for free. It is difficult to compete with free. And the competing Installers will have to conform to the unethical Solar Lease method or go out of business. There are other problems as well with the Solar Leases, but these are the big ones. The Solar Lease system is fraught with monopolies, fraud and corruption. Taxpayers are paying for the Solar Leases by the IRS being defrauded and in REC's. For the companies offering Solar Leases, it is a Gold Mine. They can make money at 4 or 5 places in the process: Installation, Federal Incentives, Energy Production, Sell-back at the end of the Lease, and REC's. Note that the Federal Government is finally looking into this and will presumably issue a ruling within a month or two. Everyone knows that the Federal Government is being scammed in this process. It is actually hard for me to believe that Solar Leases have continued in California and some other States as long as they have. Solar Leases are not legal in my State. But what is probably most painful is the unfair competition. An honest Installer would not be able to compete against Solar Leases, even at their very best prices. This is just wrong.

ANONYMOUS
December 21, 2012

Tom Kimbis might regret these words:
"Innovation can take place throughout the entire value chain," Kimbis said. "We've seen phenomenal innovation with the various leasing and third party ownership models that have driven the markets in the U.S. forward more than the increase in cell efficiency."
INNOVATION should not be used to describe financing models that are generally based on committing tax fraud (SolarCity and its ilk rely on it completely)--Solydra's black mark on the industry will be minor in comparison to the damage "innovative" financing models will ultimately cause. The individuals that reap the greatest financial rewards from this shell game will be insulated from recourse since only Republicans will be crying foul and they have cried Wolf enough to be ignored by most reasonable thinkers.
Write this down: Homeowners that sign on to third party financed systems will generally be hurt by the contract--this will be discovered as as they try to sell their homes and they carefully read the FINE PRINT.

Jane Pulaski
December 21, 2012

Very detailed, thorough review of solar for 2012, and in a couple of pages no less. Bravo, Vince.

Berg Karsten
December 20, 2012

Very usefull summary about global solar-industry trends and implementations! It's a still agressive growing market, where spin-off innovation newcomers have to struggle with massive,proven PV-technology and chinese price-dumping. In an energy-hungry world with more countries involved but without subsidiaries.

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Vince Font

Vince Font is a professional freelance writer specializing in the fields of renewable energy, high tech, travel, and entertainment. Read his blog at www.vincefont.com or follow him on Twitter @vincefont.