clean energy & carbon BRIEF 03.24...new solar photo-voltaic installations exceeded new wind capacity in 2013 for the first time, while electric vehicles rose 72 percent on 2012, Victoria

1 2 3 4 5 6 7 8 9 10 11 12 13

BRIEF

Price Week change

Spot Polysilicon Avg. ($/kg) 21.67 2.46%

Corn ($/Bushel) 4.64 -1.17%

Palm (MYR/ton) 2859.5 0.09%

Front Month Brent ($/bbl) 106.92 -1.52%

2015 ARA Coal ($/t) 81.6 0.12%

Sum 14 UK NBP (p/th) 55.75 -5.07%

2015 DE base (€/MWh) 35.5 -0.14%

Markets

eu carbon price per Metric ton Mars to Make Only ‘green’ M&Ms by 2040By SioBhan Wagner,BloomBerg neW energy Finance

Mars inc. says it’s responsible for the origins of every morsel that goes into its Snickers bars and every electron that pow-ers its operations.

“our belief is [you have a responsibility] all the way down the supply chain,” barry parkin, the company’s chief sustainability officer, said.

The manufacturer of consumable products ranging from m&ms to Pedigree dog food announced a plan this month to develop a “fully traceable” palm oil pipeline back to known processing mills by year-end 2014.

Parkin said mars currently only buys palm oil that is certified as sustainable by its partner non-governmental organization. The mclean,Virginia-based company now wants to say with “complete confidence” it’s not buying palm oil linked to deforestation or displacement of indigenous communi-ties, he said.

mars has also strived to know in “minute detail” about its energy use, Parkin told clean energy & carbon Brief. The com-pany hopes to fully weed out fossil fuel from its electricity mix by 2040.

Q: Mars aims to develop a fully traceable pipeline back to known palm oil pro-cessing mills by year-end 2014. How far along are you in the process?a: it’s very early stages. We’re basically go-ing to spend 2014 doing that tracing back. We reached our certification commitment at the end of last year and this announcement is really about strengthening our commit-ment and trying to accelerate the industry to the next stage, which we believe is trace-ability. We are very confident we can trace back through our supply chain to the mill within this year. From there, we’ll know what issues, if any, we have. The following year we will seek to solve those issues.

5.0

5.3

5.6

5.9

6.2

6.5

6.8

3/13 3/17 3/19 3/21

Euro

s Per

Met

ric T

on

Source: Bloomberg

White = rising price Black = falling price

u.k budget. With Prime minister David cameron’s adminis-tration under pressure

to cut energy prices, the chancellor of the exchequer froze a tax on carbon emis-sions. Page 3

initial public offering. eT Solar group, a chinese solar-panel maker, plans an iPo for its project-development unit in the U.S. to raise $250 million. Page 6

sector round-up. new solar photo-voltaic installations exceeded new wind capacity in 2013 for the first time, while electric vehicles rose 72 percent on 2012, Victoria cuming writes. Page 9

eu carbon May end Week at 6.50 euros. Permits are likely to continue a steady upward trend on curbed auctions and unseasonably cool weather. Page 8

clean energy & carBon WaTch

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016 2017

Small-scale PV

Wind

STEG

Large-scale PV

Landfill gas

Geothermal

Biomass

U.S

. Mill

ion

Dolla

rs

clean energy investment in australia in 2014 is Likely to Stall at $4.7 Billion

The uncertainty over the renewable energy target review continues to restrict investment in the country. if the reT is not modified to work without a carbon price, investment could fall by 61 percent between 2014 and 2017. See insight on Page 12

Source: Bloomberg New Energy Finance

Clean Energy & CarbonNEws, aNalysis aNd CommENtary from bloombErg NEw ENErgy fiNaNCE

03.24.14www.bloombergbriefs.com

1 2 3 4 5 6 7 8 9 10 11 12 13

Q: What are some of the key problems one could find in a palm supply chain?a: From an environmental point of view: deforestation and the building of palm oil on peat lands are the two biggest. Both are significant contributors to world greenhouse gas emissions. We’re also concerned about social issues and displacement of indig-enous people and land rights issues.

Q: a company is obviously responsible for its own direct actions, but how far down the supply chain should a com-pany feel some sense of responsibility? a: our belief is all the way down the supply chain: back to the farmers of agricultural materials at the start of your value chain or back to the extraction mining that might be connected with packaging. We don’t believe we can be successful long-term unless we’re creating a mutual relation-ship with every single person in our value chain and we’re being fair to them. if we’ve got struggling farmers at the start of our supply chain, then fundamentally that is not sustainable. That is why we work all the way back up through the value chain. i’m not saying we solved all of those things, but we absolutely feel a responsibility for them.

Q: How much does Mars know about its energy mix?a: We know in minute detail about our ener-gy use. The reason we’re concerned about energy is typically carbon footprint. The vast majority of our carbon footprint is outside our operations. most of that is upstream in raw materials. When you bring it down to our own operations, on site emissions are about 6 percent of our total carbon footprint. The purchased energy, Scope 2, is about 8 percent of the total. Today, only about 3 per-cent of our global energy for our operations

comes from renewables. now you will see some very exciting developments on that later this year. our strategy has always been to reduce our direct fossil fuel energy use by 100 percent by 2040. The way we do that is through a combination of efficiency, using less energy in our plants, and whatever’s left being renewable.

Q: tell me more about renewables.a: We’ve done a number of onsite projects. We’ve got two plants in the U.S. with a sig-nificant amount of solar energy: a 2-mega-watt project at our chocolate plant in new Jersey and a 750-kilowatt project at our plant in nevada. That meets all of the elec-tricity needs for that plant in nevada. Where there are nearby renewable solutions we will use those. We have four manufacturing sites in Brazil. Their electricity is all coming from nearby hydroelectric power.

Q: the onsite installations. are they power purchase agreements?a: They’re power purchase agreements. They’re long-term contracts with an electric-ity supplier. We believe we are in the busi-ness of investing in assets to make food, not in renewables.

Q: if it were not for your renewable energy goals, would Mars have any reason to invest in renewable energy?a: The reality is you can find renewable energy at comparable pricing to fossil fuel energy. if you find the right project, the right location, they are certainly at parity and sometimes, more cost-effective. That’s our objective. We’ll only invest where it’s at par-ity or better with conventional. There doesn’t have to be a cost disadvantage to develop green energy for your plants.

Q: in order for you to get to your 100 percent renewable energy goal, will there need to be a step change in terms of effi-ciency or cost of renewable technology? or are we already on the right trajectory?a: i think we’re very confident it can be done. it could be done tomorrow if you wanted, but you would pay a cost premium to do it. all of these renewable technologies are becoming more and more efficient over time. The solar panels that are installed today are orders of magnitude better than those installed 10 years ago and, in 10 years’ time they’ll be better again. i am very positive about the outlook for renewables. i think there will be a huge investment by corporates in renewables over the coming years. We’ll all look back in 2040 and say why on earth did we ever use coal?

mars to make only ‘green’ m&ms by 2040...

Why is Mars really so concerned about having a sustainability program?

“I don’t think you can be a successful company down the road unless you

have a very comprehensive and responsible sustainability program. When

we get to 2040, the businesses that will be successful then will be sustain-

able. I am completely convinced of that.”

it’s time to fess up. What’s your favorite Mars brand? I love Snickers bars.

Chocolate and peanuts is a fantastic combination.

03.24.14 www.bloombergbriefs.com bloomberg brief | clean energy & carbon 2

bloomberg brief clean energy & carbon bloomberg brief Ted Merz executive editor [email protected] 212-617-2309

bloomberg news Tim Coulter Managing editor [email protected] energy industry +44-207-330-7901

new energy Angus McCrone finance chief [email protected] editor +44-203-216-4795

clean energy & Siobhan Wagner carbon editor [email protected] +44-207-392-0433 insight editors Ashwini Bindinganavale [email protected] +44-20-3216-4339 Victoria Cuming [email protected] +44-203-216-4782

sales contact US: +1-212-617-4050 numbers EU: +44-203-216-4700

newsletter Nick Ferris business Manager [email protected] +1-212-617-6975

advertising Adrienne Bills +1-212-769-0480

reprints & Lori Husted permissions [email protected] +1-717-505-9701

To subscribe via the Bloomberg Terminal type BRIEF <GO> or on the web at www.bloombergbriefs.com.

To contact the editors: [email protected] © 2014 Bloomberg LP. All rights reserved.

This newsletter and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints and permissions group listed above for more information.

1 2 3 4 5 6 7 8 9 10 11 12 13


POLicy, Science

eU Bid to cut reliance on russian gas Sidelines climateThe annexation of crimea by russia pushed european Union plans to cut reliance on

natural-gas imports from russia’s oao gazprom to the forefront as the bloc held a first debate on 2030 energy and climate policies.

eU leaders march 21 asked the european commission, the bloc’s executive, to within three months determine ways to diversify energy sources away from russia – the main supplier of gas and oil to europe through Ukrainian pipelines. leaders of the 28-nation eU delayed a decision on carbon-reduction targets until october at the two-day summit in Brussels.

The eU’s energy dependency rate is set to rise to 80 percent by 2035 from the current 60 percent, according to the international energy agency. gas from russia accounted for almost 32 percent and oil for about 35 percent of eU imports in 2010, according to eU data.

in addition to requesting a european commission road map within 90 days on how to cut russian gas imports, eU leaders urged member states to speed up integration of electric-ity and gas markets in order to help reduce costs. energy prices in some regions of europe are double those in the U.S., where shale-gas production has brought the world’s biggest economy toward energy independence.

– Ewa Krukowska

Tax-Break revival Said to get U.S. Senate Panel Vote SoonThe U.S. Senate Finance committee probably will vote during the week of march 31 to

revive dozens of tax breaks that expired Dec. 31, said a Democratic aide to the panel. The breaks include the research and development credit and a provision that lets com-

panies including citigroup inc. and general electric co. defer U.S. taxes on some of their foreign income.

other expired breaks include the production tax credit for wind energy and a tax credit for manufacturers of energy-efficient appliances such as Whirlpool corp.

The tax-break vote will be the first test for Senator ron Wyden, the oregon Democrat who became the Finance committee’s chairman last month.

The panel hasn’t decided whether to extend the breaks through the end of 2014 or 2015, said the aide, who spoke on condition of anonymity when discussing the commit-tee’s yet-to-be-announced plans. Wyden’s proposal probably will exclude or refine some of the 55 breaks, the aide said, with a goal to produce a bipartisan bill.

no decisions have been made on the content of the measure or the timing for a com-mittee session and vote, said Julia lawless, a spokeswoman for Senator orrin hatch of Utah, the panel’s top republican.

– Richard Rubin

Oklahoma Senate Passes Wind Farm Ban in Part of StateThe oklahoma Senate has passed legislation that would impose a moratorium on new

development, construction or installation of wind farms in eastern oklahoma until 2017. S.B. 1440, sponsored by state Senate President Pro Tempore brian bingman (r) of

Sapulpa, passed the Senate by a 32-8 vote on march 12. The measure was sent to the house for consideration on march 13.

The moratorium would include regions located east of interstate 35 and identified as an area with an annual wind estimate rated less than “fair” on the U.S. Department of energy’s national renewable energy laboratory map, according to the bill.

Wind energy facilities that were under construction as of Jan. 1, 2014, would be exempt from the moratorium. Bingman could not be reached march 14 to comment on the pend-ing legislation.

curt roggow, policy director in oklahoma for the Texas-headquartered Wind coalition, said the root issue prompting the proposed moratorium is a “landowner dispute.”

– Bloomberg BNA

u.k. freezes co2 tax in $12 bln plan to cut power cost

U.K. chancellor of the exchequer george osborne froze a tax on carbon emissions from electricity generation starting in april 2016 as part of a 7 billion-pound ($12 billion) plan to cut consumer energy bills.

The package is aimed at boosting “British manufacturers, with benefits for families and other businesses too,” osborne said in a speech in Parliament in london march 19 as he delivered his annual budget. “We need to cut our energy costs.”

Prime minister david cameron’s administration has come under pres-sure to rein in rising energy costs. ed Miliband, the leader of the opposition labour Party, vowed in november to freeze energy prices if he wins the next election in mid-2015, prompting the government in December to an-nounce measures cutting green levies by 50 pounds per household a year.

The chancellor’s announcement may boost the biggest carbon pollut-ers, such as drax group plc, which mainly burns coal in its power plant in northern england.

– Alex Morales and Rachel Morison

BNEF says: The 18 pounds per ton cap on the carbon price support is not a sign of the U.K. going back on its carbon commitments, still it does alter the price signals for energy investors. Modelling suggests it could affect annual baseload power prices by 4-7 pounds per megawatt-hour in 2016-2018. Clean energy investors will want to know how the U.K. government intends to back up its reassurance that the “buying power” of the Levy Control Framework for renewable genera-tion will remain unaffected. Exemp-tions for energy-intensive industries from paying for renewable energy support may be hard to pass under European Union state aid rules, given that Germany is under inves-tigation for the same.

1 2 3 4 5 6 7 8 9 10 11 12 13


eDF Said to hire hSBc to advise on $27 Bln nuclear Projectelectricite de france sa appointed Hsbc Holdings plc to advise on the financing

for the 16 billion-pound ($27 billion) project to build the U.K.’s first nuclear power plant since 1995.

The bank will help structure the debt funding the construction of the plant at hinkley Point, england, according to two people with knowledge of the matter, who asked not to be identified because the financing is private. eDF, areva sa and two chinese com-panies agreed to build the power station in october after reaching a deal with the U.K. government that guaranteed prices for the power that will be generated.

government backing for the project includes a debt guarantee from infastructure UK, the Treasury unit established in 2010 to support investment in projects, according to an oct. 21 presentation on eDF’s website. european regulators are investigating the deal and have said the terms may not meet rules on state aid.

– Sally Bakewell

Bulgaria to revoke Power-Selling Licenses of ceZ, eVn Bulgaria started proceedings to revoke local power-distribution licenses of ceZ as, the

biggest czech utility, austria’s eVn ag and Prague-based energo-pro as for withhold-ing green energy payments.

The utilities owe a combined 347.6 million lev ($247 million) to state-owned national electricity co., also known as nec, in disbursements for subsidies to renewable and combined heat and power generators, the State energy and Water regulation commis-sion in Sofia said in an e-mail march 19. The regulator first asked to repay 318 million lev by march 18, of which eVn paid 32 million lev and ceZ paid 8 million lev. Both compa-nies pledged to pay more by the end of the month.

The three utilities “deprive national electricity from the needed funds,” the regulator said. “This blocks nec’s operation, hindering its ability to pay to power producers and threatens power supply security in the energy system.”

– Elizabeth Konstantinova

Ukraine Plans to cut Solar Subsidies: Public PeopleThe new Ukrainian government has prepared amendments to its clean-energy law that

include cuts to subsidies for solar power, Ukrainian magazine Public People reported, citing energy minister yuri Prodan.

The bill aims to bring the feed-in tariffs for renewable energy in line with european lev-els and will cut 1.4 billion hryvnia ($140 million) from the wholesale price of power each year, the minister told the magazine. While solar tariffs are inflated, the wind incentives are already comparable to those in europe, he’s quoted as saying.

energy ministry spokeswoman anna Dudka confirmed the minister’s interview march 19.– Marc Roca

Japan added 7 gW of clean energy capacity Since Mid-2012Japan added 7,044 megawatts of clean energy capacity since it began an incentive

program in July 2012 through the end of last year. Solar accounted for most of the added capacity with 6,845 megawatts during the pe-

riod, the ministry of economy, Trade and industry said in a statement march 20.The ministry has approved 30,311 megawatts of clean energy projects which also

include wind, small hydro, biomass and geothermal, it said in the statement. Before the program began, Japan’s renewable energy capacity was 20,600 megawatts.

– Chisaki Watanabe

Policy, science...

arctic sea icearctic sea ice reached its minimum extent for 2013 on Sept. 13 at 1.97 million square miles – the sixth lowest on record. This graph compares the daily sea ice extent until march 22, 2014 with the 1981 to 2010 average and the 2012 season.

co2 in atmospherecarbon dioxide concentration levels are increasing at an accelerating rate decade to decade. Scientists say returning to an atmo-spheric co2 concentration below 350 parts per million is needed to avoid climate change.

379.13

397.37

400.76

370

375

380

385

390

395

400

405

3/16/2004-3/22/2004 3/16/2013-3/22/2013 3/16/2014-3/22/2014

CO2

Part

s Per

Mill

ion

■ Deep ocean currents that act as con-veyer belts, channeling heat, carbon, oxy-gen and nutrients around the globe, may be slowing down due to climate change, according to a new study conducted by researchers at the University of Pennsyl-vania and mcgill University in canada.

■ corn, wheat and rice yields will start to suffer from climate change in 2030 – much earlier than expected – according to a study led by the U.K.’s University of leeds.

Science BUZZ

Source: NSIDC

Source: NOAA/ESRL

1 2 3 4 5 6 7 8 9 10 11 12 13

Policy, science...

cOMPany 3/21/14 3/14/14 WeekLychange

%change

RWE AG 28.895 28.475 0.42 1.47%

EON SE 13.825 13.46 0.365 2.71%

Enel SpA 4.03 3.894 0.136 3.49%

EDF SA 28.54 28.31 0.23 0.81%

Public Power Corp SA

11.48 11.59 -0.11 -0.95%

GDF Suez 19.515 18.87 0.645 3.42%

CEZ AS 541.5 519 22.5 4.34%

Iberdrola SA 4.92 4.816 0.104 2.16%

ENI SpA 18 17.13 0.87 5.08%

Tauron Polska Energia SA

5.25 4.88 0.37 7.58%

EDP - Energias de Portugal SA

3.274 3.207 0.067 2.09%

Drax Group PLC 770.5 771 -0.5 -0.06%

sHare prices of utility eMitters in europe

sHare prices of industrial eMitters in europe

note: Market price is shown in local currency


%change

ArcelorMittal 11.375 10.715 0.66 6.16%

Total SA 47.565 46 1.565 3.40%

Tata Steel Ltd 362.85 341.7 21.15 6.19%

HeidelbergCe-ment AG

61.14 59.52 1.62 2.72%

Royal Dutch Shell Plc

26 25.635 0.365 1.42%

Exxon Mobil Corp

94.31 93.47 0.84 0.90%

Lafarge SA 54.51 52.31 2.2 4.21%

Italmobiliare SpA

19.94 19.1 0.84 4.40%

BP Plc 468.75 477.25 -8.5 -1.78%

Holcim Ltd 71 69.5 1.5 2.16%

Statoil ASA 168.2 165.2 3 1.82%

Repsol YPF SA 18.005 17.385 0.62 3.57%


energy-Storage Program halted as grid connections Lagsolarcity corp., the biggest developer of U.S. rooftop solar panels, halted efforts to

install and connect systems that include batteries for power storage because california’s utilities are reluctant to link them to the electric grid.

about 500 Solarcity customers in the region have agreed to use the systems, and the state’s three biggest utilities have connected 12 of them since 2011, said Will craven, a spokesman for San mateo, california-based Solarcity.

Solarcity is testing the units with photovoltaic panels to generate power and batteries that retain that energy for use when the sun isn’t shining. The combination makes cus-tomers less dependent on local utilities. it may be a threat to the business model that’s underpinned the power industry for a century.

“We’ve stopped submitting applications because we’ve lost faith that these things are actually going to be carried out in any reasonable time,” craven said in a phone interview.

The utilities require a series of applications and fees that craven said makes the pro-cess too onerous.

– Justin Doom

indian Budget cut risks Foiling rooftop Solar expansionindian cuts in its renewable energy ministry’s budget by more than two-thirds risk hin-

dering efforts to shield against blackouts by expanding rooftop solar projects, according to consultant bridge to india energy pvt.

The ministry of new and renewable energy has been allocated 4.41 billion rupees ($72 million) in the financial year starting april, down from 15 billion rupees this year.

“This is likely to have a negative impact on the rooftop solar market in india,” new Delhi-based Bridge to india told clients march 18 by e-mail. States such as Kerala, andhra Pradesh, Tamil nadu and Uttarakhand may shelve rooftop incentives as they depend on the ministry to fund part of the programs, it said.

india has built more than 2,000 megawatts of solar capacity in two years, mostly large desert farms that feed power into an archaic grid. it’s seeking to diversify by spurring businesses and households to generate power from rooftop panels to combat blackouts and reduce the burden on the transmission system.

– Natalie Obiko Pearson

eU May allow renewable energy-Linked aid to 62 industriesThe european Union is considering allowing state aid to 62 energy-intensive industries

including aluminum- and petroleum-product manufacturers to help with the cost of boosting renewable energy, a draft eU document showed.

The european commission, the eU regulatory arm, will approve support in the form of re-ductions in environmental taxes if the beneficiaries cover at least 20 percent of the additional costs, according to state-aid guidelines for 2014-2020 obtained by Bloomberg news.

The document, to be adopted by the commission on april 9, will define state-support rules to help spur renewables as nations including germany call for permission to use tools that would shield industry from rising power bills during the eU shift to a low-carbon economy.

– Ewa Krukowska

Malaysia Sovereign Wealth Fund agrees to Solar Tariff: StarSovereign wealth fund 1Malaysia development bhd. secured a tariff rate of 40 sen to

46 sen a kilowatt-hour for a planned 50-megawatt solar farm in Kedah, the Star reported. The deal was set as a result of negotiations between 1mDB and the government, the

newspaper reported online march 17, citing people it didn’t identify. 1mDB didn’t immedi-ately respond to an e-mail and phone call requesting comment. – Feifei Shen

1 2 3 4 5 6 7 8 9 10 11 12 13


WHAT’S CHEAPER - SOLAR OR WIND? FIND OUT ON...

DeaLS

abengoa-Led israel Solar Project to get $250 Mln OPic Loanoverseas private investment corp., a U.S. government agency, approved a $250 mil-

lion loan for an abengoa sa-led solar-thermal power project in israel. The 110-megawatt facility in the western negev desert will be the first project financed

by oPic that uses the technology, the development-finance institution said on its website. Solar thermal power, or concentrated solar, plants use mirrors that focus sunlight to pro-duce steam and power turbines.

The negev energy-ashalim project is one of two delayed facilities near the israeli town of ashalim awarded in 2012 after being tendered in 2008. They will help the country reach a target to get 10 percent of capacity from renewables by 2020.

“This project advances one of oPic’s key strategic priorities to support the develop-ment of renewable resources, and also uses an innovative solar technology,” chief executive officer elizabeth littlefield said in the statement.

abengoa, the biggest solar-thermal developer, will build and operate the plant alongside local contractor shikun & binui ltd. under a long-term concession. The project will cost about 760 million euros ($1 billion), according to the european investment Bank, which may lend it 150 million euros.

– Marc Roca

Valero Buying indiana ethanol Plant as Biofuel Prices rallyValero energy corp., the world’s largest independent refiner, has agreed to buy a 110

million-gallon-a-year ethanol plant in mount Vernon, indiana, from aventine renewable energy Holdings inc.

The plant would be Valero’s 11th for production of ethanol. The value of the acquisi-tion wasn’t disclosed by the San antonio-based company. ethanol futures have risen 48 percent this year.

“Valero is the largest gasoline merchant in the U.S., they have a very large position and they’ll always need ethanol to blend,” Fadel gheit, an analyst at oppenheimer & co., said in a telephone interview from new york. “Valero has plenty of cash, the stock is performing well, so if they need it, why not do it?”

after the purchase, Valero’s ethanol-processing capacity will rise to 1.3 billion gallons a year. The plant is idle and should resume output in the next several months, according to a statement from Valero.

– Lucia Kassai

Jordan awards Power contract for Largest Solar Projectnational electric power co. of Jordan signed a power-purchase agreement for the

country’s largest solar park with a group including kawar energy co., solar Ventures spa and first solar inc.

The authority will buy electricity generated by the 52-megawatt Kawar Shams maan photovoltaic plant in southern Jordan over 20 years, First Solar said march 19 in a state-ment. The U.S. company will build the project by 2015 and supply the panels.

The plant is one of 12 that qualified for state subsidies in Jordan’s first call for clean-power projects in 2011. Jordan began a third tender in February under plans to boost renewables to 10 percent of total generation by 2020 from 1 percent now.

“Jordan is an exceptional starting platform to boost renewable energies, in particular so-lar energy,” in the middle east and north africa as it meets 90 percent of its power needs from imports, Solar Ventures chairman Michele appendino said march 19 by e-mail. “The PPa tariff of around $14.8 cents is half the price of diesel paid in Jordan.” – Marc Roca

china’s et solar plans $250 Million ipo

et solar group, a chinese solar- panel maker, plans an initial public offering for its project-development unit in the U.S. to raise $250 million.

et solar energy corp. targets the share sale by 1Q 2015 after “seeing more positive signs from the U.S. capital market on solar downstream companies,” chief executive officer dennis she said in a phone interview from the company’s nanjing head-quarter march 19.

The unit, backed by Tsing capital and newmargin Ventures, expects to close a round of private financing to raise $30 million to $40 million in april, he said.

eT Solar, along with its chinese peer Jinkosolar Holding co., have spun off units to attract funding, in-vesting more in their own solar farms and broadening sources of revenue. china’s top five panel makers led by yingli green energy Holding co. are planning at least 4.6 gigawatts of projects this year, almost four times the capacity last year, according to data compiled by Bloomberg.

– Feifei Shen

BNEF says: ET Solar’s would be the first IPO of a China-headquartered solar company on U.S. markets since JinkoSolar in May 2010, but this busi-ness would have more in common with U.S.-headquartered project developer SunEdison, or perhaps the module makers and develop-ers French-owned SunPower and U.S.-headquartered First Solar. Spin-ning off solar project development businesses from manufacturing ones is expected to become a trend now that the module market has become less oversupplied, as investors realize there are few synergies between the two businesses, and they may compete for capital and manage-ment time.

1 2 3 4 5 6 7 8 9 10 11 12 13


cahill to Build Waste-to-Power Plant in Barbadoscahill energy, a guernsey-based developer of clean-power plants, agreed to build

a $241 million facility in Barbados that will use waste to produce electricity. The plant will have a capacity of 30 megawatts to 35 megawatts, the company said

march 17 in an e-mailed statement after signing an agreement with the Barbados government. The facility will operate by the end of the second quarter of 2017.

Waste-to-power projects use municipal trash or other garbage to produce electricity. Barbados, an island nation in the caribbean Sea, has a target to replace 29 percent of its oil-fired electricity output with generation from renewable and alternative sources by 2029.

“This project will help Barbados significantly to reach this target 10 years earlier than planned,” the island’s energy minister Darcy Boyce said in the statement.

– Louise Downing

SSe, repsol, eDP Win Scottish nod for Offshore WindThe Scottish government approved two offshore wind farms in the outer moray Firth

that it said may generate 1.9 gigawatts of electricity and be worth 2.5 billion pounds ($4.2 billion) to the Scottish economy.

The consents are still subject to “strict conditions,” including the required moni-toring of possible impacts on birds, the Scottish government said march 19 in an e-mailed statement.

it gave the go-ahead to Moray offshore renewables ltd., a joint venture between repsol sa and edp renovaveis sa, and to the Beatrice offshore wind farm, which is 75-percent owned by sse plc and a quarter-owned by seaenergy renewables ltd.

– Alex Morales

nextenergy to invest $1.2 Billion in U.k. Solar Projects nextenergy capital ltd., the clean-power investor that’s listing a solar fund in

london, plans to spend about 750 million pounds ($1.2 billion) on British solar parks in three years to take advantage of stable state support.

The company is seeking to raise as much as 200 million pounds in an initial public offering of its fund this month to buy operating projects. it will then raise more equity, taking advantage of europe’s “most interesting” solar market, chief executive officer Michael bonte-friedheim said in an interview.

The 750 million-pound investment target is driven by two considerations; the “pipe-line of opportunities we are securing; and a market that is expected to grow dramati-cally,” he said in london. “The market opportunity is about 11.5 billion pounds by 2020, using a mid-range estimate of 10 gigawatts installed.”

nextenergy’s solar fund will be the third to list in the U.K., after foresight group llp and bluefield partners llp took dedicated funds public last year.

– Marc Roca

U.S. Utility to Test System to Turn Tides into Powera Washington state utility plans to test a system that converts the motion of the tides

in Puget Sound into electricity. The Federal energy regulatory commission issued a 10-year license to Snohomish

county Public Utility District to install a 600-kilowatt tidal-power system, the agency said march 20 in a statement.

The utility’s admiralty inlet Pilot Tidal Project near Seattle will evaluate the commer-cial viability of marine-energy systems in Puget Sound.

– Ehren Goossens

Deals...


%change

Archer-Dan-iels Midland Co.

42.67 42.51 0.16 0.38%

Bunge Ltd. 78.35 78.16 0.19 0.24%

First Solar Inc. 73.37 54.03 19.34 35.79%

General Electric Co. 25.4 25.11 0.29 1.15%

SunPower Corp. 33.15 31.67 1.48 4.67%

Tesla Mo-tors Inc. 228.89 230.97 -2.08 -0.90%

sHare prices of clean energy coMpanies by region

note: Market price is shown in local currency

americas


%change

GS Yuasa 519 538 -19 -3.53%

Suntech Power Hold-ings Co.

0.373 0.5875 -0.2143 -36.48%

Suzlon Energy Ltd. 10.2 10 0.2 2.00%

Trina Solar 15.6 15.26 0.34 2.23%

Xinjiang Goldwind Sci&Tec-H

8.39 9.02 -0.63 -6.98%

Sinovel Wind Group 3.72 3.59 0.13 3.62%

asia and oceania


%change

Abengoa SA 4.04 3.77 0.27 7.16%

GKN Plc 384 373.4 10.6 2.84%

Schneider Electric SA 64.46 61.19 3.27 5.34%

SolarWorld AG 39.6 39.13 0.475 1.21%

Vestas Wind Systems A/S 201.4 188.3 13.1 6.96%

REC Solar ASA 94 96.5 -2.5 -2.59%

europe, Middle east and africa

1 2 3 4 5 6 7 8 9 10 11 12 13


By KonraD hanSchmiDT, BloomBerg neW energy Financeeuropean emission allowances are likely to resume their slow but steady upward

trend this week on curbed auctions and temperatures below seasonal norms. The contract for December 2014 will close this week between €6.30 and €6.50 a metric ton, according to Bloomberg new energy Finance, having declined 1.9 percent last week to end Friday at €6.25/t.

aViaTiOn DeaL reJecTeD

last Wednesday saw the european Parliament’s environment committee reject a compromise reached between its negotiators, member states and the euro-pean commission on the continued exemption of international flights from the eU emission-trading system. The Parliament’s plenary is likely to ignore this recommendation in the binding vote on april 3, both because it tends to be more industry-friendly than the environment committee and because a final rejection of the deal would rekindle the dispute with some of the eU’s major trading partners. The expected approval of the deal would pave the way for the commission to hand out free allowances to the aviation sector four months after the regulation becomes law, as well as finalize a schedule and quantity for the aviation auctions that were put on hold in november 2012. if the plenary rejects the deal, airlines would techni-cally be required to comply for all their emissions on flights to and from europe for 2013 and onwards.

2013 VeriFieD eMiSSiOnS

The commission will publish verified emissions for 2013 on april 1, according to a news update last week. emissions declined 3 percent in 2013, according to Bloom-berg new energy Finance analysis. Power sector emissions contracted the most, as fossil generation declined amid rising renewable output and a reduced appetite for power. emissions from industrial sectors, and heat and local power generation declined to a lesser extent. This was largely due to stabilization in steel production output, which increased by 0.2 percent over 2012-2013.

2030 TargeTS anD LOng-TerM energy POLicy

The current crisis in europe’s relations with russia may yet lead to a much more prominent role for security of supply in the 2030 energy and climate package, as a plan to diversify supply sources was the only piece of energy policy on which eU leaders could agree during last week’s summit. The heads of government only agreed to “take stock” of the proposed 2030 energy and climate package in June and determine the emission reduction target in october. The sudden urgency of the energy security argument could add a new – and potentially powerful – impe-tus to the discussion. eU leaders asked the commission to draw up an action plan to diversify energy sources away from russia, to be put on the agenda by June. eU energy commissioner guenther oettinger last week took the first step to isolate russian supply when he said that work on gazprom’s South Stream pipeline will be delayed “for the time being.”

eu carbon trading Volumes

un carbon trading Volumes

850

950

1050

1150

1250

1350

1450

16

1116212631364146515661667176

3/7 3/11 3/13 3/17 3/19

EUA volume (MtCO2) EUA open interest (MtCO2)

100

105

110

115

120

125

130

135

140

145

150

0

1

2

3

4

5

6

7

8

9

3/7 3/11 3/13 3/17 3/19

CER volume (MtCO2) CER open interest (MtCO2)

carBOn MarkeT cOMMenTary

Plenary to Ok aviation Deal, Despite Panel rejection

Day eUa cer SPreaD cOMMenT

Monday €5.95 €0.12 €5.83

EU permits dropped a sixth day as UN credits fell to a record

Tuesday €5.83 €0.13 €5.70

Permits de-clined as put option volume jumped to a record

Wednesday €6.06 €0.13 €5.93

EU December permits climbed from lowest level in six weeks

Thursday €6.08 €0.13 €5.95

Permits advanced as EU debated 2030 energy, climate laws

Friday €6.25 €0.14 €6.11

Permits rose, as EU aimed for October deal on an CO2-cut target

Market actiVity last Week

Source: EMIS <GO>

Source: EMIS <GO>

Weekly commentary from Bloomberg new energy Finance

COMPARE CLEAN ENERGY TECHNOLOGIES ON...

1 2 3 4 5 6 7 8 9 10 11 12 13

2013 Sees PV installations Overtake Wind, as electric car Sales accelerate 72%By VicToria cUming, BloomBerg neW energy Finance

New solar photovoltaic capacity ex-ceeded new wind in 2013 for the first time – at 38.6 gigawatts versus 30.6 gigawatts. Solar also retained the biggest share of investment at $114 billion in contrast to $80 billion for wind. All other renewable energy sectors were dwarfed in compari-son, though a 72 percent rise in electric vehicle sales shows promise for the advanced transport sector.

SOLar

Two thousand and thirteen was another record year for solar photovoltaic instal-lations, with nearly 39 gigawatts of new capacity built – some 8 gigawatts more than in 2012. PV’s biggest market, china, saw some 9 gigawatts installed in just 4Q 2013. The last-minute rush was sparked by the reduction on Jan. 1, 2014 in the feed-in tariff for large grid-connected projects from 1 yen ($0.16) to 0.9 yen ($0.15) a kilowatt-hour. State support for solar projects has helped end the two-year slump for PV manufacturers,

which are generally now seeing rising profitability. Jinkosolar Holding co. posted on march 3 its highest quarterly earnings in almost three years, with net income in 4Q 2013 of 164.3 million yuan ($26.7 million) compared with a loss of 761.1 million yuan in 4Q 2012. Though trina solar ltd.’s results for last quar-ter were generally comparable to those for 3Q 2013, china’s second-largest PV panel maker had a significantly better year overall compared with 2012: it reported a 281 percent increase in gross profit to $218 million though its earnings per share were still negative, with a loss of $1.09 in 2013 – compared with a larger deficit of from $3.77 a year previous.

indeed, the market is not wholly out of the woods yet: on Jan. 7, tianwei sich-uan silicon filed for bankruptcy and on march 7, shanghai chaori solar energy science & technology co. failed to pay full interest due on onshore bonds, becoming the first default in china. chaori Solar ran into trouble because it expand-ed into building solar farms to produce power – rather than just concentrating on manufacturing PV products – according

to Bloomberg new energy Finance. most surviving solar companies have become more cautious about expansion.

attractive feed-in tariffs in ontario also helped spur a record PV installation level in canada last year, with a high of 435 megawatts built nationwide in 2013. Still, it will be all change for the province’s sup-port system this year, with projects over 500 kilowatts moving to a competitive bid-ding process and an end to local content requirements after a World Trade organi-zation ruling in may. canadian solar inc. – the second-best performer on the nas-daq Stock market last year – returned to profitability in 2013, with earnings of $0.63 per share compared with a loss of $4.53 in 2012. it shifted focus toward developing solar farms in the first three quarters but its module business regained ground in 4Q, accounting for 77 percent of total net revenue, from 59 percent in 1Q-3Q.

in contrast to installation levels, PV investment in 2013 at $102 billion was 28 percent down on 2012 principally due to a shift toward utility-scale assets in china and lower system costs worldwide. however, module prices have stabilized, and the average polysilicon spot price climbed 15 percent in the last five months, according to Bloomberg new energy Finance’s monthly pricing index. overall system prices have continued to decline in expensive markets toward levels seen in germany. Supply and demand for solar PV are expected to balance approximately this year, as rising prices are driving up existing facilities’ utilization rates and new capacity is due to come online this year.

The china-U.S. solar spat is likely to rumble on this year: america’s interna-tional Trade commission voted on Feb. 14 in favor of a complaint against imports from the asian country. in 2012, the U.S. imposed anti-dumping duties of up to 250 percent on solar cells from china, and anti-subsidy penalties of some 15 percent. it is expanding its investigation into Taiwan-made solar cells to close a loophole solarWorld industries america said allows chinese competitors to avoid the tariffs. The U.S. decision on Taiwanese solar cells will be announced by march 28.

china’s dispute with europe will prob-

pV installations to Jump 40% between 2013 and 2016, says bnef

6.6GW 7.8GW

18.2GW

28.9GW 30.6GW

38.6GW

46.5GW

52.4GW 54.1GW

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015 2016

Western Europe Eastern Europe Japan U.S.China India Rest of world

Gig

awat

ts



FOcUS

1 2 3 4 5 6 7 8 9 10 11 12 13

ably die down after the asian country’s ministry of commerce decided Jan. 24 not to levy duties on polysilicon imported from the european Union because of a “special market situation.” china and the eU agreed last July on a minimum price and volume limit on european imports of chinese solar panels until end-2015, in return for an end to the eU’s duties.

like asian solar manufacturers, euro-pean players have also made progress. solarworld ag, germany’s biggest solar-panel maker, has halved its financial liabilities from some 1 billion euros ($1.38 billion) thanks to a restructuring of its debt that it began in January 2013. Part of its remaining debt was converted into two new secured bonds. on Feb. 19, the com-pany said it expected higher sales in 2014 and a return to operating profit in 2015. over a dozen german solar companies have filed for insolvency in the last two years, with chinese competitors being blamed for selling below cost.

Still, the resurgence of european solar may be in jeopardy since recent months have seen several countries release or pass laws that could curb enthusiasm for the technology. new commercial and industrial renewable electricity generators in germany will have to pay a charge on the power they consume, according to a plan backed by the cabinet Jan. 29. The proposal would make the economics of installing a larger PV system much less attractive. The law is expected to go to the Parliament for a vote in June. in addition, the Spanish government has passed a regulation to implement a new ‘back-up fee’ for existing and new self-consumption systems up to 100 kilowatts. in addition, Spain plans to cap the return earned by renewable energy projects at 7.4 percent, according to draft rules seen by Bloom-berg news on Feb. 3.

WinD

The wind sector saw a 31 percent drop in installation levels and its third an-nual decline in new investment in 2013 – albeit of only a moderate 2 percent to $80 billion – even with a strong fourth quarter for asset finance. merger and acquisition activity, totaled $32 billion, down 4% on 2012 levels. most of the 39

asset acquisitions in 4Q 2013 came from the U.S., including a sizeable expansion from Midamerican energy Holdings co which bought four development assets in iowa totaling over 1 gigawatt. Pricing for turbine and operations and maintenance contracts stabilized at end-2013, and will only dip slightly this year, according to Bloomberg new energy Finance. This will be due to a less competitive turbine market and more geographic and product differentiation, with some markets com-manding a premium over others. mar-gins have continued to improve for most turbine manufacturers, due to rigorous cost-cutting exercises. Denmark’s Vestas Wind systems a/s reported on Feb. 3 its first quarterly profit since 2011: net income in 4Q 2013 amounted to 218 million euros ($295 million), beating analysts’ and its own expectations. last year, Vestas cut over 30 percent of its workforce and sold or closed 12 of its 31 factories, selling six to Vtc partners gmbH on oct. 9 for 1 euro ($1.35). after a two-year turnaround plan, the Danish company is now seeking to raise capital and sold 20.4 million new shares on Feb. 4 in an oversubscribed private placement.

it hasn’t been good news for all, howev-er: acciona sa reported a surprise $2.7 billion loss in 2013, equating to more than half its market value. The main reason was regulatory changes, some of them retroactive, in its home market of Spain. To combat cuts in renewable energy pay-ments, the company agreed in December to sell 18 german wind farms to swis-spower renewables ag for $215 million.

as european wind-turbine manufactur-ers continue to cut costs, governments continue to reform their clean-energy policies: Poland released another draft at end-January, proposing to move from a feed-in tariff to a feed-in premium with contracts for difference awarded via a tender. Such a system may help secure capacity provided other legislative de-velopments don’t hinder the process: the landscape Protection act was initiated to regulate outdoor advertising but could well block wind-farm development.

in the americas, new financing of wind farms remained low in the U.S. until 4Q 2013 when the country saw a record high of $10.1 billion as developers sought

financing to begin construction or make safe-harbor down payments on turbines to qualify for the expiring production tax credit.

Wind developers also performed well again at Brazil’s third and fourth reverse auctions of 2013, selling a record 4.7 gigawatts of energy over the year as a whole. competitive prices were one rea-son for wind’s success: the sale on Dec. 13 saw the lowest average price of the year at 109.93 reais ($46.70) a megawatt-hour. in addition, wind encountered weak competition from other technologies. as of Jan. 1, 2014, wind developers must use locally-manufactured equipment in towers, blades, nacelles and hubs if they want to access discounted financing. These new local content rules have been set by the banco nacional de desenvolvimento econômico e social. Thus, only compli-ant companies such as Spain’s acciona and France’s alstom sa will be able to sign contracts for the 2 gigawatts of capacity won in the 2013 auctions still without a supply agreement. even stricter rules come into force on July 1.

Wind also did well in the third round of South africa’s renewable energy tender program, accounting for 52 percent of the 1.5 gigawatts up for grabs. ireland-based Mainstream renewable power was preferred bidder for three wind farms worth 9 billion rand ($912 million) and a total capacity of 360 megawatts. Bidding has become progressively more competi-tive during the program, with the average price for wind in round three at 737 rand ($72.80) a megawatt-hour – 36 percent lower than in the first round. The aver-age prices for solar PV and thermal have declined even further – 64 and 39 percent respectively between rounds one and three. an increasing amount of foreign investment is flowing into the country’s clean energy sector – none of the pre-ferred bids announced to date was led by a domestic company. like Brazil, South africa has imposed local content require-ments on the bids, with the local content value amounting to just under 16 billion rand ($15 million) in the latest round.

Wind installations in asia remained flat in 4Q 2013 due to continued grid con-straints in china, delays in the release of generation-based incentives in india, and land restrictions and local opposi-

Focus...


1 2 3 4 5 6 7 8 9 10 11 12 13

Focus...

tion in South Korea. manufacturers in the region are re-focusing their strategies: Korean suppliers are looking overseas and in particular at europe for engineering, procurement and construction. in contrast, chinese turbine suppliers are concentrat-ing mostly on recovering their domestic market, which will add 14.7 gigawatts of new wind power capacity this year com-pared with 14 gigawatts in 2013, forecasts Bloomberg new energy Finance. There was good news for chinese wind on Feb. 28 when the national energy administra-tion announced it had given conditional approval to 27.6 gigawatts of new wind projects, potentially increasing its capacity by some 36 percent. if implemented, the proposals would strengthen the country’s position as the world’s biggest wind mar-ket. The next step is for provincial authori-ties to assess whether the transmission grids can handle the new flows and if there is sufficient consumer demand.

aDVanceD TranSPOrT

electric vehicle sales were just over 205,000 units last year – a 72 percent rise on 2012. competition in this oversupplied market continues to push down eV battery prices, which averaged $568 a kilowatt-hour in 2h 2012, according to Bloomberg new energy Finance’s index published Jan. 31, compared with $599 in the June 14, 2013 edition. The top models are nissan Motor co ltd’s leaf, general Motors co’s Volt and tesla Motors inc.’s model S.

The U.S. remains by far the dominant market, with north america as whole ac-counting for just under half of global eV sales last year. Spurring demand, corpo-rate average fuel economy standards in the U.S. call for a doubling of fuel economy for light-duty vehicles by 2025, from 2011 averages. in addition, 11 states plus Wash-ington Dc follow california’s air resources Board’s Zero emission Vehicle program.

europe saw a record 140 percent growth in electric vehicle sales in 2013, driven by three countries: France offers gener-ous subsidies and is the home market of renault sa, which has launched four eV models. The netherlands is in second spot thanks to subsidies and careful municipal planning for charging infrastructure; and norway is third as it started supporting eVs

decades before other markets by offer-ing subsidies and non-financial incentives such as premium parking access.

Still, the bloc may have done itself no favors with the new ‘clean Power for Trans-port Package’, which was progressively weakened through a number of policy decisions last year. a european Parliament committee agreed on nov. 26 to reduce the mandatory minimum number of public charge points and on Dec. 5, transport ministers deleted the quantitative target for minimum public eV infrastructure for 2020, proposing that each member state should set its own goals. The moves to weaken the legislation may be driven by countries’ reluctance to commit to binding targets, which they fear may affect economic growth. member states also agreed in november to postpone the introduction of stricter emission targets for vehicles from 2020 to 2021.

elsewhere, eV sales may have risen by 56 percent in Japan in the first quarter of 2013 but the year as a whole saw only a 7 percent increase. This was largely due to the recall of Mitsubishi corp’s outlander plug-in hybrid eV in april because of a pos-sible defect in the motor controls computer program and the model’s battery problems. These events reduced consumer choice and exacerbated concerns about eV safety and reliability.

Sales remain limited in china too, thanks to a lack of quality options and poorly locat-ed charging infrastructure. Still, prospects rose last month when the government said subsidies for 2014 will be cut by 5 percent – rather than the previously announced 10 percent. Pressure is mounting for the coun-try to contain air pollution, while it lags be-hind on its target for 5 million eVs by 2020 due to high costs. The last year has seen significant improvements in eV economics: after nissan and general motors cut their prices, 4Q 2013 saw toyota Motor corp and mitsubishi follow suit. as a result, eV models are close to total-cost-of-ownership parity with internal combustion-engine-powered vehicles – without incentives – for the first time. including incentives means that models such as mitsubishi’s imieV are among the lowest upfront cost choices.

Despite the growth in sales and declin-ing battery prices, 2h 2013 saw several high-profile bankruptcies. one of the U.S.’s

largest eV charging infrastructure play-ers, ecotality inc., filed for bankruptcy on Sept. 16, citing several reasons including low commercial sales and failure to secure financing. car charging group inc. paid $3.3 million in cash for ecotality’s $230-mil-lion infrastructure network. Together with its acquisitions of 350green llc, beam charging llc and eV pass llc in 2013, car charging group has emerged as the largest U.S. eV supply equipment compa-ny, owning 13,430 charging points across 35 states and three countries.

another casualty in 4Q 2013 was fisker automotive Holdings inc., which filed for bankruptcy on nov. 22, listing debt of as much as $1 billion. in october, an affiliate of Hybrid technology llc won a De-partment of energy loan on which Fisker defaulted. But unsecured creditors objected to the price and helped bring Wanxiang group into the case in December. The chinese auto-parts maker topped hybrid after 19 rounds of bidding, with an offer of $150 million. The purchase requires U.S. anti-trust clearance. Two factors may have played a role in Fisker’s fate: it chose to manufacture plug-in hybrids – a more com-plex drivetrain technology compared with pure battery eVs – and it relied on start-up battery supplier a123 Systems, which filed for bankruptcy in 2012.

Still, eV manufacturers are confident about the next few years: nissan is optimistic that it can soon double deliveries, said chief executive officer carlos ghosn on Jan. 8, after the company sold 22,610 units in 2013. mitsubishi is working to strengthen domestic sales and introduce new plug-in models in north america to exceed the 5.2-per-cent operating profit margin in its mid-term business plan, which ends in march 2017, company President osamu Masuko told re-porters last month. Tesla has plans to raise model S sedan production by 56 percent this year to build its $5 billion ‘gigafactory’, for which it raised $2 billion of convertible debt on Feb. 28. There will be over 300,000 eVs sold worldwide this year, according to Bloomberg new energy Finance forecasts, and they are on track to beat non-eVs in terms of total costs of ownership by the lat-ter years of this decade.

Note: This article will also be available to Bloomberg New Energy Finance

clients at www.bnef.com.


1 2 3 4 5 6 7 8 9 10 11 12 13


emissions From eU Power generation and industrial Production Dropped 3% to 1,810Mt in 2013

0

500

1,000

1,500

2,000

2,500

3,000

2008 2009 2010 2011 2012 2013

Other Phase III industries Other Phase II industries

Cement and lime Steel

Refining Heating

Power

Mill

ion

Met

ric T

ons a

Yea

r

The verified emissions release is unlikely to include data on all installations, making the 3 percent like-for-like change the most significant figure to look out for instead of the absolute emissions total.

■ Total clean energy investment in australia fell to $4.9 billion in 2013, down 9.5 percent on 2012. This year, we expect investment to stall at $4.7 billion as uncertainty continues to grip the market. in 2015, investment could recover to $6.1 billion if the 41 terawatt-hour large-scale renewable energy Target remains intact. however, investment could once again drop if the lreT is not modified to work without a carbon price.

■ Following the election of the coalition, clean energy policy looks set to weaken in 2014. The carbon price is set to be repealed, the clean energy Finance corporation abolished, and several climate-related government entities wound up. While success of this new agenda depends on the new senate – which sits in July – we predict the government will eventually garner enough numbers to push through most of the desired changes.

■ Falling energy demand, increased renewable generation and greater retail competi-tion has changed the dynamics of the australian market and is eating away at integrated utilities’ margins. all power assets – renewable and thermal – are now operating in an unprecedented business environment that will likely become more challenging with time.

■ Surprisingly, wind financing was at its second highest level on record in 2013 with 540 megawatts of deals closed. The construction pipeline is now strong, but the specter of the federal government’s reT review is likely to freeze new investment until the outcome is known. also, the removal of the carbon price could place future investment at risk.

See the BloomBerg New eNergy FiNaNce weBSite For Further detailS www.BNeF.com.

inSighT

excerpts from Bloomberg new energy Finance research

Policy Uncertainty in australia to curb green investment

Bloomberg new energy Finance insight Service is a subscription-based research and analysis product offering. Below are research abstracts from reports recently published under this service. To inquire about subscribing, email [email protected] or call +1 212 617 4050 or +44 20 3216 4700.


0

200

400

600

800

1,000

1,200

1,400

March 2013 September 2013 March 2014

NYSE BNEFEMEA Index

MSCI World &Emerging

nyse-bnef europe, Middle east and africa clean energy index

0

200

400

600

800

1,000

1,200

1,400


NYSE BNEFASOC Index


nyse-bnef asia oceania clean energy index


0

200

400

600

800

1,000

1,200

1,400

1,600


NYSE BNEF AMERIndex


nyse-bnef americas clean energy index

nyse euronext and blooMberg neW energy finance regional clean energy stock indexesThe three indexes, covering respectively europe, middle east and africa, the americas, and asia and oceania, currently follow a basket of between 125 and 325 companies with a moderate, or greater, exposure to renewable energy and energy-smart technologies. The fol-lowing indexes track shares over the past year. They are indexed to 1,000.

1 2 3 4 5 6 7 8 9 10 11 12 13


3rd Annual

Wind PowerMexico

Mexican InternationalRenewable EnergyCongress

THE LEADING MEXICANRENEWABLES EVENT

May 28 - 30, 2014,Camino Real Polanco, Mexico City

MIREC 2014comprises of x3industry leadingconferences:

Meet key industry players including:

The must attend Mexicanrenewables event

Alexander von Welczeck, Managing Partner, Clean Power Group

Platinum Sponsors Gold Sponsors Silver Sponsors

®

http://www.greenpowerconferences.com/EF/?sSubSystem=Prospectus&sEventCode=MIREC2014&sSessionID=rqhhnijj8fslfr1kcuprmhhto4-11365990

http://bit.ly/1il1PjU

Economics China Brief London (free brief)

Economics Europe Economics Asia Mergers

Hedge Funds Europe Hedge Funds Municipal Market

Financial Regulation Private Equity Leveraged Finance

Structured Notes Technical Strategies Clean Energy & Carbon

Healthcare Finance Oil Buyer’s Guide Bankruptcy & Restructuring

Documents

clean energy & carbon BRIEF 03.24...new solar photo-voltaic installations exceeded new wind capacity in 2013 for the first time, while electric vehicles rose 72 percent on 2012, Victoria