Intel Looking Cautiously At Smart Grid

September 23, 2009

The world’s largest chipmaker has been looking at the smart grid for about a year. But the slow speed of the market and hesitancy utilities have to swap out older equipment for new is giving it pause.

The smart grid is a mulit billion dollar opportunity for chipmakers.

The smart grid is a mulit billion dollar opportunity for chipmakers.

The smart grid offers a gargantuan opportunity for a company interested in finding new uses for its computer and consumer-electronics chips. Buildings consume about 40 percent of the nation’s power and are responsible for more than 40 percent of its CO2 emissions.

Clearly new ways of doing things need to be found. At the heart of this change is the need for grid devices to have more intelligence and therefore the ability to channel information and control to utility administrators and consumers. It is the ideal job for today’s powerful semiconductors.

But equipment in the grid is typically designed for a 10 to 20 years lifespan. That makes it difficult to quickly incorporate new generations of chips that come out every year or two.

At the same time, adopting technical standards is critical, says Lorie Wigle, general manager of Intel’s eco-technology program office.

Wigle says Intel has 20 people working on an opportunity that for chipmakers of all stripes (not just those making computer chips) could be billions of dollars. Part of the task so far has been to identify where chips might go. Smart substations, plug-in hybrids, in-home displays and renewable energy systems are just some of the spots she has earmarked.

But she is convinced the utility mindset must change. So far, utilities are focused on installing smart gear to reduce costs, putting in a smart meter, for instance, to eliminate the need for a meter reader to drive to a home.

They are not yet thinking of supplying information to consumers, she says. “A lot of the utility activities are moving a lot slower than we might like,” she adds.


Wind Turbine Market Could Stabilize As Government Money Begins To Flow

August 18, 2009

The global recession continues to put the hurt on the wind turbine market. But government stimulus dollars could begin to stabilize sales in the next several months.

New banks also are beginning to lend again for wind projects

New banks also are beginning to lend again for wind projects

This assessment came Tuesday from Vestas Wind Systems, the largest supplier of wind turbines. Across the industry, suppliers have seen order shortfalls this year, Vestas included.

*The company shipped 618 turbines in the second quarter, down 12 percent from last year.

*The capacity of the systems was 1,172 MW, down a larger 20 percent.

The shortfalls can be traced largely to the financing markets. Banks and traditional lenders have resisted loaning money in unsettled times.

This is changing. “The many governmental initiatives around the world are starting to have an impact, and market prospects are beginning to improve,” Vestas said in a press release.

“At the same time, several new banks and financing institutions have come onto the market, which means that the impact of the credit crisis on the wind power market is slowly starting to taper off,” Vestas said.

In fairness, these new banks are looking deeper at projects and are far more critical in their analysis. This increases the time it takes for deals to get done. The delays are worse when more than one bank gets involved.

Still, the likelihood of increased government spending could provide a boost for wind energy, especially in the United States.

Renewable energy currently accounts for “less than 2 per cent of the world’s electricity production,” says Vestas. That share will rise to “at least 10 per cent by 2020, equal to an installed capacity of at least 1,000,000 MW.”


Germany Can Achieve An 80 Percent Reduction In CO2 Over 40 Years

August 18, 2009

The claim sounds astonishing. Reduce a nation’s CO2 emissions by 80 percent in next the forty years to combat global warming.

But this is exactly what German utility RWE AG says the fatherland is capable of using a combination of wind power, carbon-capture technology for coal and nuclear power.

Use of nuclear, coal capture and wind power is recommended

Use of nuclear, coal capture and wind power is recommended

According to the electric utility’s study, wind power both on and off shore holds the greatest potential among renewable energy sources in Germany. Wind power will become “economically efficient” in the near future while geo-thermal and solar energy will rely on large public subsidies for a long time to come, the study says.

Coal will remain a source of electricity generation for years to come. But plant efficiency should improve to 53 percent by 2030 from 38 percent today. That will cut CO2 production by 28 percent. The reduction could reach 90 percent with carbon capture and storage technology, but at a high cost.

Nuclear power present provides 27 percent of Germany’s power. The report suggests extending the life of plants scheduled to phase out and claims uranium supplies will last 200 years at today consumption rate.

Perhaps not surprisingly, RWE’s prediction relies a great deal on current infrastructure – nuclear and coal, in particular. In this sense, it is not very imaginative. And it dodges the possibilities of technical breakthroughs in hydrogen, solar and elsewhere.

But it is reassuring that even with a laissez faire approach to energy responsibility, global warming might be kept in check.


Americans Underestimate Cost Of Going Green

August 18, 2009

Just like everything else, people have lofty aspirations to use clean technology. But they vastly underestimate the cost.

Americans are willing to pay 15% more for green power but know it will cost 50% more to generate

Americans are willing to pay 15% more for green power but know it will cost 50% more to generate

In California, for instance, voters were quick to approve a plan last year to build a bullet train from San Francisco to LA. But nowhere did they authorize a tax increase to pay for it.

This principle extends to green power. Americans support government mandates that require utilities to use renewable and non-polluting energy sources. But they underestimate how much it will raise their bills.

According to a study sponsored by the PR firm Burson-Marsteller and conducted by Penn Schoen & Berland Associates, 70 percent of Americans support the energy investments in the federal stimulus bill. A majority, in fact, say more should have been allocated.

But on average Americans say they are willing to pay just 15 percent more, or $18 on an average $117 electric bill, for green power. This is despite their belief that the power will cost 50 percent more to generate.

I guess this leaves Burson-Marsteller in the unenviable position of having to address the public misperception. Doing so would obviously be an important public service. But don’t underestimate the challenge. It’s a little like convincing someone to pay more for a product made in the United States. They know it is good for the country, but in the short term it will cost them more. So, they don’t, and the same is likely to hold true for green power.

The survey was conducted in May.


Bridgelux Sees Huge Market For Environmentally Sensitive LED Lights By 2012

January 27, 2009

Silicon Valley startup Bridgelux said Tuesday that a roughly $10 billion annual market for low-power LED lights should exist by 2012.

Bridgelux introduces a LED arrays for lighting

Bridgelux introduces LED arrays for lighting

If true, this massive opportunity could spawn several large manufacturers of this next generation lighting and the chips that power it.

The Sunnyvale chipmaker obviously hopes to be one. On Tuesday the startup introduced a new family of light-emitting diode arrays with improved energy efficiency. Lights made with LEDs will become increasingly attractive to industry and consumers as costs per lumens, or light output, continue to come down.

The chips also don’t require the hazardous materials, such as mercury and lead, found in other lights.

“Lamps and luminaires that incorporate LED lighting sources will play an increasingly important role in our effort to reduce overall carbon footprint by minimizing energy consumption and eliminating the use of hazardous materials,” said Bridgelux CEO Mark Swoboda in a statement. Some government already ban traditional bulbs, he said.


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