Posts Tagged by China
Global Consultancy McKinsey Bullish on US Adoption of Electric Vehicles
| January 20, 2011 | Posted by Craig Shields under Electric Vehicles |
I was quite surprised to see that global consultancy McKinsey ranks the US as the country most likely to lead the emergence of electric cars as a means of mass transportation. I wish I had access to the full report, as it apparently uses nine variables; I’d love to know which ones. They ultimately puts the US ahead of France, Germany and other western European countries that have up to now been in the vanguard of clean-vehicle technology. China is tied with Germany in third place. Read More
[The Vector] Changing Hearts and Minds on Cap and Tax
| December 31, 2010 | Posted by Aedan-Kernan under Renewables - Politics |
A couple of weeks ago, David Shukman the Environment Correspondent at the BBC went to marvel at the 1,400 wind turbines that spread in line after line across Nolan County, Texas. Each turbine doubles the revenue from the cotton field it is planted in.
Shukman dropped in on the mayor of a town in the midst of this manmade forest – Greg Wortham of Sweetwater – to talk about the money the turbines bring to the community and their beneficial effect on climate change.
But Mr Wortham had a warning for his British guest:
“Whatever you do, don’t mention the climate. It’s too polarising. Carbon footprint, green, climate change – those issues are so charged in the US… there are just certain labels that cause people to form into groups.”
The reason the United States needs renewable energy has become such an emotional touchpoint that those who are benefitting most from renewable energy cannot bear to discuss the issue. Read More
What Will It Take to Achieve a US Renewable Portfolio Standard?
| October 3, 2010 | Posted by Craig Shields under Renewables - Business |
I was keeping a tally sheet at last week’s Renewable Energy Finance Forum, so I could let readers know the issue that was brought up most often and granted the most overall prominence. The clear winner: China is eating our lunch in the migration to renewables. Inexplicably and tragically, the US is content to drop further and further behind in the development of energy technology with each passing week. While China is hiring, researching, developing, importing, exporting — and dominating the world of 21st Century energy, we seem to be content to argue and point fingers at each other.
Renewable Energy and Job Creation
| September 10, 2010 | Posted by Craig Shields under Renewables - Business |
As I’ve mentioned in previous posts, I’m in the process of studying the size and shape of job creation that will come as a welcome by-product of the migration to renewables.
How this sits in the constellation of benefits to renewables depends on whom you ask. But regardless of the level of importance that job creation has compared with national security, fiscal responsibility, the health and safety of the world’s population, and stemming the long-term ecological damage wrought by extracting and burning fossil fuels, it’s got to be in there someplace.
Yet job creation is a very complicated subject, as it comes with so many moving parts:
- What percent penetration of renewables are we talking about? What type? In what time-frame?
- How are market forces affected by the actions of Congress (e.g., removing/perpetuating subsidies that keep the price of oil artificially low, creating incentives for renewables, state legislatures enacting renewable portfolio standards)?
- What’s happening outside the US, where many countries are taking aggressive action to move to renewables?
- What are the strategies of the corporate giants like GE and Siemens in this global economy? From here, it looks like they don’t care where the green jobs are; if the US misses the boat, that’s too bad. Is that true?
- What brown jobs will be lost (e.g., coal mining) simultanously to the build-up of green jobs? Do we have the political stomach to deal with any job loss?
- What will be the impact of all the green job training in the community colleges?
I’ve become particularly interested in the issue of subsidies, as they seem to be so critical in forming the climate in which private investors will climb on board the clean energy bandwagon. But because macroeconomics isn’t my strength, I’m going to have to speak with a great number of economists, analysts, and political pundits to get this right.
It appears that the reason this is so complicated is that subsidies take many forms, some of them (deliberately?) hidden:
- Construction bonds at low interest rates or tax-free
- Research-and-development programs at low or no cost
- Assuming the legal risks of exploration and development in a company’s stead
- Below-cost loans with lenient repayment conditions
- Income tax breaks, especially featuring obscure provisions in tax laws designed to receive little congressional oversight when they expire
- Sales tax breaks – taxes on petroleum products are lower than average sales tax rates for other goods
- Giving money to international financial institutions (the U.S. has given tens of billions of dollars to the World Bank and U.S. Export-Import Bank to encourage oil production internationally, according to Friends of the Earth)
- The U.S. Strategic Petroleum Reserve
- Construction and protection of the nation’s highway system
- Relaxing the amount of royalties to be paid – apparently, we get about 40% of revenues from oil on public land vs. 60% – 65% in most other countries
- Not forcing the industry to deal with the “externalities” – healthcare costs, long-term environmental damage, etc. — costs that are becoming increasingly clear and subject to quantification
If anyone has a suggestion for people I should interview in this regard, please let me know.
60% of Chinese Ready to Buy Plug-in Vehicles
| April 28, 2010 | Posted by BillPaul under Electric Vehicles |
New report from Ernst & Young’s Global Automotive Center finds that 60% of Chinese consumers say they would consider buying a plug-in hybrid electric vehicle. That’s a much bigger percentage than in the US, and is further evidence that China, not the US, will lead the plug-in revolution. That’s bad news for US car- and car-battery makers, and great news for their Chinese counterparts. Warren Buffett’s investment in BYD is looking better and better.
China’s Energy Push – Guest Blogger Kathy Heshelow – Continued
| April 23, 2010 | Posted by Kathy-Heshelow under Renewables - Business |
Here’s the continuation of my article yesterday on China’s energy picture.
One African official said back in 2006 that negotiating with the Chinese may take longer, but they can pressure China more because they are desperate for resources. Another official said, “The U.S. will talk to you about governance, about efficiency, about security, about the environment. The Chinese just ask ‘How do we procure this license?’”. (CNN Money, “China’s appetite for African oil grows”, by Vivienne Walt (Fortune). Feb 15, 2006).
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China’s Energy Push – Guest Blogger Kathy Heshelow
| April 22, 2010 | Posted by Kathy-Heshelow under Renewables - Business |
Following my recent post about China’s scramble for energy and their nonrenewable energy plan, I cover here the nonrenewable push. Renewable energy supplies about 7.5% of all energy needs for China, says the EIA, close to our 7% figure in the U.S. Hence, nonrenewable energy sources are especially important over the next few decades for both the U.S. and China while the green industry ramps up. The two countries are already bumping up against each other over resources.
The Wall Street Journal reported on March 15th, 2010 that Chinese state-owned oil company Cnooc Ltd. is taking a 50 percent stake in Argentina’s Bridas Energy Holdings for $3.1 billion. Cnooc is the Hong-Kong listed unit of China National Offshore Oil Corp. It will finance the joint venture through “internal sources,” and the project is expected to move along quickly. The reserves of Bridas include an estimated 636 million barrels of oil; the company has activities in Argentina, Bolivia and Chile.
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Vehicle Electrification – by Guest Blogger Anil
| April 3, 2010 | Posted by Anil under Electric Vehicles |
Transportation is a major cause of carbon emissions, so much so that it accounts to the north of 20 percent. The US, being at the forefront of industrial development, has its fair share in overall emissions. But the federal government in the states is pushing vehicle electrification in its bid to reduce dependence on foreign oil. President Obama has set a target of one million electric and plug-in hybrid vehicles on the road in the United States by 2015.
Steven Chu, Secretary of the US Department of Energy (DOE) claims, “Plug-in hybrid electric vehicles could revolutionize personal transportation and cut our dependence on foreign oil, not to mention give us cleaner air and less carbon pollution.” Read More
Foreign Investment in U.S. Renewables and Job Creation – By Guest Blogger Kathy – Continued
| March 30, 2010 | Posted by Kathy-Heshelow under Renewables - Business |
As suggested yesterday, here is a continuation.
Another Example of Foreign Investment
Danish company Vestas, world wind turbine leader, has been expanding its production base in the U.S. where it says it created more than 1,200 skilled jobs, and expects that number to climb to 4,000 or more by the end of 2010. Vestas was encouraged by the Obama administration’s commitment to develop renewable energy; they say it hopes Congress will pass a national renewable energy standard to stabilize the U.S. market in the long term.
This key point, much discussed and highlighted lately, needs to be understood. The renewable markets, including wind, have been relatively unstable because tax credits and other policies are short-term and lapse with no assurance of continued support. Further, there is no policy enabled by a Renewable Electricity Standard, ensuring purchase of renewable energy by utilities.
Where China provides the wind industry assurance of growth with a $440 – $660 billion clean energy bill and requirement to buy renewable energy generated power, there is no corollary in the US
Europe is the undisputed leader in wind energy. 60% of world capacity was installed in Europe by the end of 2007, says the European Wind Energy Association (EWEA. “Wind Energy – The Facts”, February 2009) — and political support continues for growth. The European Union adopted a 20% renewable target by 2020 and followed with legislation in 2008 to support expansion. EWEA projects 80,000 MW installed by end of 2020. Denmark has already reached 21% of electricity supplied by renewables, and Spain sits at about 12%. The following chart, courtesy of the Energy Information Agency, illustrates the place that wind holds for electricity generation in Europe:
Underlying key factors in supporting U.S. legislation and policies for the renewable energy industry include:
job growth and economic opportunities abound;
clean energy is good for the environment and our health;
renewables are necessary long-term to wean us away from foreign dependence on fossil fuels
Key legislation, policies and credits are key factors for any country – the U.S or foreign – to invest. While The American Recovery and Reinvestment Plan (known as the stimulus funding) is a great boon to the new industries, it too is temporary and expires in 2012. Support will be needed from every quarter to continue the growth.
Foreign Investment in U.S. Renewables and Job Creation – By Guest Blogger Kathy
| March 29, 2010 | Posted by Kathy-Heshelow under Renewables - Business |
Suzlon Wind Energy Corp. announced on March 5th, 2010 that they plan to develop nine wind energy projects in the U.S., totaling 728 megawatts, including 351 installed wind turbines in Arizona, Idaho, Illinois, Kansas, Minnesota, Oregon and Washington.
Suzlon helped rebuild Greensburg, Kansas after it was destroyed by a tornado in May 2006. Says Greensburg mayor, Bob Dixson, “Suzlon and the wind farm provided a huge boost to this community after the tornado devastated the region and during our recent recovery. The town is making a remarkable comeback with our mission to be better, stronger and greener. Suzlon’s turbines are helping us achieve our green energy goals…” (PRNewswire, Chicago. March 4, 2010).
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