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Finance and Incentives

Tunisia: Good Hotel and Hospital Investment Opportunities

Submitted by Baerbel Epp on June 8, 2016
Tunisia StudyA great deal of sunlight, large investment grants and subsidised energy prices: These are the factors determining the profitability of big solar thermal systems in Tunisia, according to the authors of the study Opportunities for solar thermal systems in the tertiary and industrial sectors in Tunisia, a publication by the German Agency for International Cooperation, GIZ, (see attached document in English, the French version is under consultation). Under certain circumstances, a solar thermal system can achieve a double-digit Internal Rate of Return (IRR), for example, if it is installed at LPG-dependent hotels or hospitals on the Tunisian island of Djerba. When solar replaces natural gas in commercial buildings in Tunisia’s capital, Tunis, the IRR is still significantly higher than the estimated 4.3 % inflation per year. However, there are difficulties with the economic feasibility of solar process heat applications because not even top reference cases have fulfilled investor expectations. The authors emphasise that the importance Tunisian businesses currently place on payback periods for investing may lead them to overlook valuable projects.
Figure: GIZ study
 

IEA SHC: Levelised Cost of Heat and the Calculations behind It

Submitted by Baerbel Epp on May 28, 2016
The main objective of IEA SHC Task 52, Solar Thermal in Energy Supply Systems in Urban Environments, is to call attention to both the technical and economic aspects of solar heating and cooling usage in densely populated urban areas. Urban planners and commercial clients want to know the costs compared to the energy output generated by various solar heating technologies. A method to benchmark different solar heat production systems is Levelised Cost of Energy (LCOE). This method is described by the IEA as the “average price that would have to be paid by consumers to repay exactly the investor/operator for the capital, operation and maintenance and fuel expenses, with a rate of return equal to the discount rate”. The chart shows the LCOE for different applications and system sizes in northern / central European climates, taken from the most current Task 52 study Technology and Demonstrators (for further details see table below). The author of the study, Franz Mauthner from Austrian research institute AEE INTEC, contributed to this article, which elaborates on the method and the calculations behind it. 
Chart: Task 52 / Technology and Demonstrators study
 

Italy: First-Year District Heating Yield Better than Expected

Submitted by Baerbel Epp on May 20, 2016
Output VareseThe first and so far unique solar district heating plant in Italy completed its first year in operation in mid-May this year. According to metering by the operator of the 990 m² collector field, utility Varese Risorse, output was significantly higher than expected. The chart shows the total output measured over almost 12 months: It was 13 % higher than the target figure. The solar district heating plant was developed and installed by a newly founded Italian company, SDH Energy, which also guaranteed the solar yield (red line).
Chart: Varese Risorse/SDH Energy
 

Armenia: Green Leasing Programme to Fund Solar Water Heaters at Hotels

Submitted by Baerbel Epp on May 16, 2016
Tufenkian Hotel 1Armenia, a small country in South Caucasus, is home to an innovative financing scheme for solar thermal systems and other energy efficiency measures. In 2014, Armenian ACBA Leasing launched the Green Leasing programme for small and medium enterprises from any industry. According to an article published on 24 March 2016 on Armenian news website news.am, Green Leasing had already helped fund several solar thermal systems for different customers, such as seven hotels, four catering businesses and more than 20 service companies. One of the most well-known customers was the Tufenkian Hotel in Yerevan, Armenia’s capital: The roof installation of 1,140 vacuum tubes was done in December last year (see photo). 
Photo: Shtigen
 

India: Government Presents 102 Awards for Solar Process Heat and Solar Cooking

Submitted by Baerbel Epp on May 11, 2016
India Award 2016(1)Piyush Goyal, Indian Minister of State for Power, Coal and New & Renewable Energy, awarded prizes to 102 institutions, companies and agencies for their achievements in high-temperature solar process heat and cooking. The photo shows the minister calling on the manufacturers to share their innovative ideas and make India a unique place for the demonstration of solar process heating technologies. The Concentrated Solar Technology Excellence Awards 2016 ceremony was organised by the Ministry of New and Renewable Energy (MNRE) in cooperation with the GEF-UNDP programme for concentrating solar thermal and took place in New Delhi on 29 April 2016. This was the first time in the history of India’s solar thermal industry that so many awards were presented at only one event. Additionally, 37 projects from all over the country received sanction letters for the MNRE capital subsidy and GEF-UNDP support scheme.
Photos: MNRE
 

Germany: Symposium Debates Renewable Heating Market Ups and Downs

Submitted by Baerbel Epp on May 4, 2016
Otti SymposiumDuring the first quarter of 2016, solar thermal suppliers in Germany sold around 3 % more systems than they did over the same period last year. This is indeed good news after 2015 turned out to be another disappointing year with a 10 % drop in sales, adding only 805,000 m² (563 MWth) of newly installed collector area. The other good news is that subsidies in Germany have never been as attractive as they are now. It is the reason why the two German solar and heating associations, BSW Solar and BDH, launched the Solar Heating – it always pays off (Sonnige Heizung - immer im Plus) campaign, as announced in a press release in the middle of April – at the same time that the Solar Thermal Energy Symposium took place in Bad Staffelstein. The symposium is Germany’s major annual industry conference on the topic and is organised by the East-Bavarian Institute for Technology Transfer, OTTI. This year, the three-day conference was attended by around 250 solar thermal experts from research and industry.
Photo: OTTI / Dr Thomas Vorderwülbecke
 

Lebanon: Stable Market Gains New Momentum

Submitted by Baerbel Epp on May 3, 2016
Lebanon Market StatisticsThe Lebanese Center for Energy Conservation (LCEC) has just finished a market survey on the newly installed collector area per collector type over recent years. The newly added area in 2015 was 53,976 m² with a slightly higher share of vacuum tubes, which went up from 54 % in 2012 to 60 % last year (see chart on the left). After two years of decline, market volume again increased in 2015 by 2.4 %. “The study considered all delayed applications as well as market projections based on data received from banks and suppliers,” Rani Al Achkar, Senior Programmes Engineer at the LCEC, said. 
Source: LCEC 
 

Portugal: Incentive Scheme Fails While Sales Take Another Dive

Submitted by Baerbel Epp on May 3, 2016
The latest Portuguese incentive scheme for solar thermal energy proved to be a major failure: Launched by the national Energy Efficiency Fund (EEF) in May 2015, the call to support the restoration of solar thermal systems installed before 2005 received only four applications in the end. Additionally, 2015 market performance was still far from desirable, and the downward trend in sales continues. APISOLAR’s figures show a newly installed area of 46,134 m² (32 MWth), a 9 % decrease compared to the previous year.
 

IEA SHC: Industry Workshop in Spain Shows Solar Cooling’s Global Opportunities

Submitted by Baerbel Epp on April 30, 2016
Task 43 WorkshopThe latest R&D developments in solar cooling presented during a workshop in Madrid, Spain, on 11 April sparked great interest among the attendees from the international air conditioning industry. Held at the headquarters of the Spanish Institute for Energy Diversification and Saving, IDEA, the event brought together representatives from companies, such as Baxi Roca, Carrier, Fujitsu, Kaysun and Panasonic, as well as researchers from Task 53, New Generation Solar Cooling and Heating Systems, of the IEA Solar Heating and Cooling Programme. The presentations showcased innovative solutions driven by solar heat or solar power. The experts agreed that solar cooling will be a market for both solar thermal and solar PV solutions over the coming years and will capture new territory outside Europe, such as in the Middle East or China. A current study on the Arab region concluded: PV cooling technologies are more economical than grid-driven electric chillers at cooling loads of 100 kWc, whereas solar thermal cooling should be used for 1 MWc cooling.
Photo: IDEA
 

India: Union Budget for 2016/2017 Has New Frame Conditions – For Better or Worse

Submitted by Baerbel Epp on April 4, 2016
Wheels IndiaThe Union Budget in India for 2016-17 – announced by the Finance Minister on 29 February 2016 – includes good and bad news for the solar thermal industry. On a positive note: The government has again increased the coal tax from Indian Rupee (INR) 200 to 400 per ton, after already doubling it in Finance Bill 2014-2015. The additional tax revenues will be used to support renewable energy technologies. The overall financial support for renewable energies will increase to INR 50.6 billion (EUR 725 million) during financial year 2016-17. Additionally, the customs duty on solar-tempered glass and solar glass was raised to 5 % besides a Special Additional Duty of 4 % to strengthen domestic manufacturing. On the downside, there is the increase of basic customs duty from 7.5 to 10 % under Harmonised System (HS) code 84191920. 
Photo: Wheels India
 

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