Australia splits renewable energy target to bolster investment. (Feb. 26)

• Australia has experienced strong demand for small-scale generation projects, which has limited the amount of renewable energy credits available for large-scale projects. The government has now split the renewable energy target (RET) and therefore the credits available into 2 parts – one for small-scale and the other for large-scale projects.  Read more…

EUROPE

UK to offer up to £5,000 to purchasers of low-emission vehicles starting in 2011. (Feb. 21)

• The government will offer a discount of 25% off the purchase price up to £5,000 on certain vehicles. The program, with  £230M, will run until 2014.  Read more…

NORTH AMERICA

California launches $90M clean energy manufacturing program. (Feb. 25)

• Funding will support low-interest loans and grants to businesses that improve or expand their energy efficiency or renewable energy manufacturing facilities.  Read more…

Nebraska looks to open its market to wind development. (Feb. 25)

• The state legislature has proposed a new energy bill that would allow wind developers to export energy to neighboring states. Nebraska ranks #4 in the US for wind potential but the industry has developed slowly due to regulatory obstacles that will largely be overcome by the new legislation.  Read more…

Germany to host additional climate change negotiation session in April. (Feb. 21)

• The additional session is hoped prepare the way for concrete agreement in climate negotiations later in the year on May 31 – June 11 in Germany and ministerial talks November 29 – December 10 in Mexico.  Read more…

EUROPE

Transport for London (TfL) invests in energy efficiency schemes. (Feb. 21)

• TfL £2.4m a hydrogen fuel cell, the largest in the UK, at the Palestra building in Southwark cutting carbon emissions by 40% and generating savings of £90,000.  Read more…

France lowers solar feed-in-tariff to pop speculative bubble. (Feb. 15)

• For building-integrated PV projects the new solar FIT will be €0.58/kWh for homes schools and hospitals, €0.50/kWh for commercial and agricultural buildings, and €0.32-0.38/kWh for ground mounted arrays. The lower rates, which remain the most attractive in the world, are set through 2012 with a gradual reduction for the following 20 years thereafter.  Read more…

NORTH AMERICA

Federal Energy Regulatory Commission authorizes Google to buy and sell energy like a utility. (Feb. 19)

• Google now has approval to buy and sell energy in bulk like a utility but cannot own or control energy generation or transmission facilities. Google says its intentions are to gain more control over the quality and pricing of energy to support its massive server consumption.  Read more…

US Government launches $130M fund for building efficiency technologies. (Feb. 15)

• Funding will support development and deployment of new building efficiency technologies over 5 years with $22M available in the first year.  Read more…

UK expands support for hydrogen energy development.  (Feb. 12)

• The government will create its sixth Low Carbon Economic Area with £6.3m investment from the University of Glanmorgan and £7.2m in government funding for hydrogen and fuel cell technology development.  Read more…

UK, United Nations and Ethiopia leaders launch advisory group for climate change financing.  (Feb. 12)

• The “High Level Advisory Group on Climate Change Financing” follows up on the Copenhagen agreement to allocate $100B of public and private finance to developing countries by 2020.  Read more…

NORTH AMERICA

Renewable energy incentives too popular? Oregon moves to limit incentives.  (Feb. 12)

• The Oregon House of Representatives passed a bill to limit business energy tax credits and completely eliminate incentives for wind farms altogether. Last year, Massachusetts $68M solar rebate program ran out of money two years ahead of schedule.  Read more…

Government agencies create an Energy Regional Innovation Cluster (E-RIC) making $130M available  building efficiency.  (Feb. 12)

• The E-RIC initiative is led by the Department of Energy, which has plans for additional clusters. This specific initiative will focus on funding research and deployment of building efficiency technologies.  Read more…

INTERNATIONAL

Bumpy ride for Brazilian ethanol.  (Feb. 12)

• The Brazilian government reduced the ethanol blend requirement in gasoline from 25% to 20% and reduced the gasoline tax from 23 centavos/liter to 15 centavos/liter to cope with sugar supply constraints resulting from heavy rains in 2009.  Read more…

UK energy regulator Ofgem urges government to act in order to secure energy supply. (Feb. 3)

• Ofgem CEO Alistair Buchanan warned that the UK had a window of opportunity to invest in infrastructure need to secure future energy supply. Ofgem proposed an array of substantial reforms to promote investment and improve market efficiency  Read more…

UK announces Feed-in-Tariff levels due to start April 1, 2010. (Feb. 1)

• The FIT is focused on solar and wind but unfortunately not anaerobic digestion, which has shown significant growth recently as a form of micro-generation. The government also plans to role out a second FIT for renewable heat generation.  Read more…

NORTH AMERICA

White House 2011 budget plan confirms continued support for clean energy. (Feb. 1)

• The proposed budget includes funding for renewable energy, smart grid and carbon capture technologies as well as multi-billion dollar loan-guarantee and tax credit schemes. Unlike the 2010 budget, the 2011 budget does not include projected revenue from cap-and-trade.  Read more…

Administraton announces plan to triple biofuel production by 2022. (Feb. 4)

• The plan will maintain target for biofuel production set in the 2007 energy bill. The EPA also issued its renewable energy standards – re-introducing corn ethanol, which will now increase competitive pressure for more efficient fuels such as biomass-based diesel and cellulosic ethanol.  Read more…

EU settles on lowest emissions reduction offer. (Jan. 29)

• EU officials announced a unilateral reduction target of 20% below 1990 levels by 2020 with a conditional offer of deeper cuts if other major economies pledge major reductions.  Read more…

European Parliament establishes water policy group to promote technology innovation and infrastructure security. (Jan. 29)

• The group will focus on assessing the Water Framework Directive implementation and reviewing water scarcity, drought and climate change policy. These initiatives will strengthen water-related policies thereby providing support to investment to water efficiency and pollution management technologies.  Read more…

NORTH AMERICA

Obama pledges to lead by example – announcing goal to cut federal GHG emissions 28% by 2020. (Jan. 31)

• The announcement is a result of the President’s order in October 2009 that all federal agencies produce emissions reduction plans. The plan estimates saving 205 million barrels of oil equivalent amounting to $8-10Bn in avoided energy costs.  Read more…

SEC provides interpretive guidance on climate change risk disclosure. (Jan. 27)

• The SEC ruled 3-2 to require disclosure on risks related to climate change and provided guidance on how to disclose the information. The ruling creates the first economy-wide climate risk disclosure requirement in the world.  Read more…

Massachusetts utilities set to invest $2.2Bn in energy efficiency. (Jan. 29)

• State officials announced more stringent energy efficiency standards and a investment plan focused on home energy audits, weatherization, and rebates for efficient appliances. The state estimates over $6Bn in consumer savings from the efficiency measures.  Read more…

US DOE finalized $1.4Bn loan to Nissan in another milestone for electric vehicles. (Jan. 29)

• Nissan will use the loan to refurbish its Smyrna, Tennessee plant for electric vehicle and battery manufacturing. This loan marks another significant capital allocation to the electric vehicle industry following a $5.9Bn loan to Ford and a $465M loan to Tesla motors by the DOE following last week’s $350M series B capital raise by Better Place.  Read more…

INTERNATIONAL

South Korea announces plans to invest $24Bn in smart grids by 2030. (Jan. 25)

• Officials estimate that the 90% of the investment will come from the private sector with an aim to reduce oil imports by 350 million barrels. South Korea is the OECD’s fastest-growing carbon polluter.  Read more…

Last week the US Government Securities and Exchange Commission (SEC) provided guidance on disclosure relating to climate change risk creating the first economy-wide climate risk disclosure requirement in the world (see press release). The vast majority of public companies treat SEC guidance, which does not carry the force of law, as if it were legally binding thereby empowering investors to demand disclosure.

The announcement follows the SEC’s November issuance of Staff Legal Bulletin 14E, which noted a significant increase in the number of no-action requests seeking to exclude proposals relating to climate change risk. The SEC stated, “In those cases in which a proposal’s underlying subject matter transcends the day-to-day business matters of the company and raises policy issues so significant that it would be appropriate for a shareholder vote, the proposal generally will not be excludable.”  Thus, the SEC had already sent a signal to firms that they would not be able to obtain no-action letters for climate change related requests.

For several years dozens of investors managing assets over $1 trillion and advocacy groups such as the Environmental Defense Fund and Ceres have petitioned the SEC to mandate climate change risk disclosure.

Key Features

The SEC ruling interprets existing disclosure requirements to provide guidance on how business or legal developments related to climate change may impact the business. Specifically, the SEC guidance covers disclosure rules relating to a company’s risk factors, business description, legal proceedings, and management discussions and analysis. Furthermore, the guidance highlights the following areas where disclosure relating to climate change risk may be required:

• Impact of Legislation and Regulation
• Impact of International Accords
• Indirect Consequences of Regulation or Business Trends
• Physical Impacts of Climate Change

This specific guidance, combined with the EPA’s December endangerment finding, which empowers the EPA to regulate greenhouse gases, provides ample support to investors and shareholders to demand disclosure on climate change related business risks.

Impact on Investors

The SEC decision marks an acceleration point in a persistent trend of increased assessment and disclosure of climate change risk. This trend has three key impacts:

1. Shareholders will have better information on the material risks related to climate change, how they may impact business performance, and how management plans to deal with those risks;
2. Creditors and insurers will face increased pressure to scrutinize climate change risk in transactions. Last year the National Association of Insurance Commissioners adopted rules that require insurance firms to disclose the impact of climate change on their business decisions starting in May 2010;
3. Software firms, and their investors, that help companies measure and report on carbon emissions will experience increased demand as potential customers seek to better understand and communicate the risks climate change may pose to their business.

German Minister of Environment announces 15% cut in feed-in-tariff.  (Jan. 22)

• The cuts include a new 15% cut for open-space and rooftop solar projects, representing a 26% and 24% cumulative cut respectively. The cuts precipitate a run on solar PV systems and accelerated emigration of technology abroad.  Read more…

Ofgem announces additional £1Bn network investment to meet carbon reduction targets.  (Jan. 19)

• The funding will be released in three tranches, with the first £319 focused on connecting renewable energy sources. This announcement comes in addition to an initial £3.8Bn allocated to three companies to upgrade transmission networks.  Read more…

NORTH AMERICA

Ontario finalizes $7Bn solar-wind development deal with Samsung.  (Jan. 21)

• The project includes 2,500 MW of solar and wind developments and four manufacturing plants to be built by 2013. The deal marks a strategic step forward for Ontario as it seeks to become a major provider of renewable technology to the US market.  Read more…

DOE awards $37M for solid-state lighting projects.  (Jan. 18)

• The 17 projects include research, product development and domestic manufacturing for LED and organic LED lighting. This is the first time the DOE allocates funds for manufacturing of solid-state lighting — representing an expanded effort to lower manufacturing costs and accelerate adoption.  Read more…

California launches $350M program to replace natural gas and electric hot water heaters with solar heaters.  (Jan. 21)

• Customers will receive up to 30% of the replacement cost. The program will likely provide the example for many other states to promote more energy efficient heating programs.  Read more…

UK announces incentives for low-carbon cars. (Jan. 15)

• The government announced a £140M incentive program to support the growth of ultra-low carbon cars and public transport initiatives.  Read more…

Scottish government approves 118 MW wind farm. (Jan. 14)

• The Scottish government is currently processing an additional 36 applications including 22 onshore wind, 12 hydro and 2 thermal projects with a total generating capacity of 3GW.  Read more…

NORTH AMERICA

Electronics firms and regulators test boundaries of recycling in New York. (Jan. 15)

• A court case brought by electronics firms against New York state focuses on a clause requiring direct collection of used products. 19 states have introduced legislation on electrics recycling. This case will set an important precedent for the boundaries of producer responsibility law across the country.  Read more…

US Department of Energy announces $80M investment in advanced biofuels research and fuelling infrastructure. (Jan. 14)

• Another investment under the American Recovery and Reinvestment Act, will go to 2 consortia researching algae-based and advanced biofuels: the National Alliance for Advanced Biofuels and Bioproducts (NAABB) – awarded $44m, and the National Advanced Biofuels Consortium (NABC) – awarded up to $33.8m.  Read more…

In April 2006 the European Union passed the energy End-use Efficiency and Energy Services Directive that currently drives most energy efficiency policy initiatives across the EU. The Directive calls on EU countries to adopt and achieve an indicative energy saving target of 9% by 2016 in the framework of a national energy efficiency action plan (NEEAP). The Directive also required countries to ensure that end-users be provided with competitively priced individual meters and informative bills that show actual energy consumption. Energy bills must include the following:

• Information on actual energy consumption,
• Current actual prices and consumption,
• Comparison of current consumption with consumption for the previous year,
• Contact details of bodies from which information on improving energy efficiency can be obtained,
• Individual meters must be installed at a competitive price wherever economically and technically feasible.

Consistent with the EU Directive and the UK Government’s Low Carbon Transition Plan, the UK announced plans in October 2008 to rollout smart meters to all homes by 2020. The initiative will require replacement of approximately 47 million gas and electricity meters at an expected cost of £8.7 billion with anticipated benefits of £14.6 billion by 2030[i]. The Department of Energy and Climate Change (DECC) held consultations on the smart meter plan from May to August of 2009 and in December 2009 published its final consultation report, “Towards a Smarter Future: Government Response to the Consultation on Electricity and Gas Smart Metering”. The report sets out the government policy on smart meters for the short-to-medium time frame with a long-term smart grid plan – the “2050 Roadmap” – due this Spring.

Key Features

The consultation report clarifies policy that will dictate many of the key features required in smart meters throughout the UK. These key features include the following:

• Smart meters must adopt the Central Communications Model where energy suppliers will be responsible for purchasing and installing meters and communications are coordinated centrally;
• A stand-alone display should be provided with the smart meter however does not specify the information to be provided;
• In terms of functionality, the smart meter must include the following:
  • Remote delivery of information to customers, suppliers, and other designated organizations;
  • Two-way communications between meter and supplier;
  • Ability to upload and download data through a link to enable data transfer at defined periods, remote configuration and diagnostics, and software and firmware changes;
  • Home area network based on open standards and protocols providing real time information to an in-home display and enabling other devices to link to the meter system;
  • Support for a range of time of use tariffs;
  • Load management capability to deliver demand side management (gas meters exempted);
  • Remote disablement and enablement of supply (gas meters exempted);
  • Exported electricity measurement (gas meters exempted);
  • Capacity to communicate with a measuring device within a micro-generator (gas meters exempted);

OfGem will now initiate the Smart Meter Implementation Program through the following phases:

1. Prospectus: Due in the Summer of 2010, this phase will define functional requirements, the regulatory framework, and smart meter introduction schedule;
2. Detailed Design: Due by the Summer of 2012, the phase will prepare the functional specifications and established the regulatory framework;
3. Design implementation: Following the design phase, this phase will include rolling out central systems, integration testing, and implementation of the metering system installation standards and system commissioning.

Impact on Investors

This clarification creates a great opportunity for investors and entrepreneurs to grow smart meter businesses more rapidly, engage utilities in strategic partnerships for future growth, and develop new innovative business models to deliver related information to consumers and utilities. This government announcement not only sets a clear future goal but also the basic road map to get there.

UK’s Crown Estate grants development rights for an additional 25GW of offshore wind capacity.  (Jan. 8)

• The nine development zones have been allocated to 10 European companies through competitive bidding and will require 6,400 new wind turbines.  Read more…

NORTH AMERICA

15 major airlines sign joint agreement to buy alternative fuels.  (Jan. 8)

• American Airlines, FedEx Express, UPS Airlines, JetBlue, Lufthansa and Delta, among other airlines, signed a Memorandum of Understanding to buy alternative fuel from producers AltAir Fuels and Rentech. The agreements mark a major step for alternative fuel use in the airline industry.  Read more…

Obama administration approves $2.3B in tax credits for over 180 greentech factories and aims for an additional $5B.  (Jan. 8)

• The tax credits are worth up to 30% of the cost of manufacturing projects. The program compliments the federal tax credit program for renewable energy by providing a significant boost for upstream manufacturing. Click here for a complete list of all program recipients.  Read more…

EPA proposes stricter smog pollution standards.  (Jan. 7)

• The proposal would lower the ground-level ozone standard from 0.075 ppm set in 2008 by the Bush administration to 0.060-0.070. The new standard would require significant investment as approximately 50% of counties are currently non-compliant with the more lenient 2008 standard.  Read more…

Department of Labor releases $100M in grants for green jobs training.  (Jan. 6)

• Secretary of Labor Hilda L. Solis announced the grant program as authorized through the 2009 American Recovery and Reinvestment Act.  Read more…

CHINA

China announces new law to promote renewable energy investments. (Dec. 28)

• The new regulations will force utilities to buy energy from alternative sources to reduce reliance on coal and achieve the policy goal of increasing China’s renewable energy use from 9% of total energy in 2008 to 15% by 2020. However, China will need to invest in smarter grid technologies in order to integrate renewable sources.  Read more…