China builds a green dream machine

The Asian country is known more for its pollution than environmental credentials – but a hybrid carmaker is winning the global eco-race.

China's horrific air pollution is hardly a state secret, causing about 656,000 deaths annually, according to the World Health Organisation. But what is more of a surprise is the arrival of a new, local car manufacturer with breathtaking ambitions, supported by a government seeking to become a world leader when it comes to green technology.

BYD Auto – short for Build Your Dreams – was only founded in 2003, yet it has pulled off a global coup by mass-­producing the world's first plug-in, petrol-­electric hybrid, the nifty-looking BYD F3DM (byd.com). Under the bonnet, the car is more of a purely electric car than any similar hybrids on the road today, and has made its debut at least a year ahead of similar models from the US and Japan.

This year's model

The car, which does not need a specialised electric charging station and can be charged using a normal household supply, is now on sale in China, where it costs just under 150,000 yuan (£15,000), a similar price to a mid-range petrol-powered sedan and a bit more than half the 250,000 yuan it costs to buy a Toyota Prius. BYD has come from nowhere to sell 24,107 vehicles in January alone, an increase of nearly 80% from the previous year, and aims to sell 400,000 models in China this year.

BYD aims to tap into the world's fastest-growing auto market as China's emerging middle class – now estimated to number between 100 million and 150 million people – swap their bicycles for four wheels. While the economic crisis has sent vehicle sales tumbling around the world, Beijing alone is still adding more than 1,500 new cars to its gridlock every day. "The use of alternative types of cars could really make a contribution to the reduction of pollution in large Chinese cities," says Karl-Thomas Neumann, chairman of the carparts manufacturer Continental.

A survey by Continental shows that Chinese consumers are much more interested in hybrids than their European counterparts, with 53.7% of those surveyed happy to buy a hybrid and 73.4% who would consider an electric car – decidedly more green than the UK's respective 30.2% and 37.1%. Chinese drivers are more open to hybrids as "more than 90% drive in urban centres and travel less than 60 miles a day", says Paul Lin, BYD Auto's marketing manager. Hybrids come into their own in cities because of their limited range and top speeds. In queues, the car's electric engine shuts down before restarting when the car moves again.

While the auto company is a newcomer, its parent company, BYD – which itself has only been around since 1995 – is the world's biggest supplier of rechargeable batteries, giving them a huge jumpstart when it comes to the production of hybrid and electric cars. And the company has audacious ambitions – it aims to be China's No 1 car firm by 2015, and world No 1 in 2025. BYD vehicles will be launched in Europe – provisionally Denmark, because of its friendly tax policies towards green technology – in 2011.

"We respect our competitors abroad," says Lin, "but we are aiming to show that we can not only compete on the world stage, but dominate."

Environmentalists and Chinese commuters frustrated at the rising price of fuel aren't the only ones with their fingers crossed that the car takes off. The US investment guru Warren Buffet has bought a 10% stake in the firm for $232m.

In China, electricity is cheap, though this is produced by burning coal. The company decided to avoid building expensive charging stations. "Most Chinese live in apartments and don't have their own garages, so instead, drivers unplug the battery and charge it in their homes overnight," says Lin. The car has a range of 62 miles on a fully charged battery, and once the battery runs out, the car switches into hybrid mode. Lin claims the batteries will not degrade until they have been fully charged 2,000 times, which should take seven years, and even then, the battery's capacity only drops to 80%.

Communist revolution

Of course, one company alone won't change China's dirty habits, let alone those of the world, says Bradley Berman, editor of Hybridcars.com. "BYD deserves credit for producing plug-in hybrids. But to make a real dent in auto pollution, these plug-in cars will need to scale up to hundreds of thousands per year. So, it's not who's first with the first models. Environmental and economic success will come with high-volume production sustained over many years," he says.

An analyst with IHS Global Insight Auto, Duan Chengwu, says China's advances in green technology have come about because of backing from its most dominant power source – its Communist government. "The government firmly supports these companies producing hybrids and electric cars," says Duan. Measures to stimulate the ailing car industry include the halving of sales tax on certain cars, subsidies for owners of high-emission vehicles who exchange them for more fuel-efficient vehicles and a 10bn yuan fund to promote new technology. Thirteen cities, including Beijing and Shanghai, offer subsidies to hybrid buyers.

While combating pollution problems is one incentive, the Chinese government has another reason to push green technology: pride. "The government wants to leapfrog western countries and become a global leader in the field," Duan says. "The country is years behind its competitors in the auto industry as a whole, but when it comes to green technology, everyone is starting from scratch. In this scenario, China has a great opportunity."
Four wheels good

The most famous hybrid car of choice is still the Toyota Prius, the first mass-produced model. The car is essentially petrol-fuelled but has an electric engine that propels the car at low speeds and assists the main engine when accelerating. First launched in Japan in 1997 before going worldwide in 2001, more than 1m Prius hybrids have been sold. There will be a plug-in version of the Prius for fleet customers by the end of the year, and the company also recently announced they will produce a commuter battery-electric vehicle by 2012.

General Motors won't be joining the electric car fray until 2011, when it says it will launch the Chevy Volt in the US. The car will have a lithium-ion battery with a petrol-powered engine that drives a generator to provide electricity when you drive beyond its 40-mile battery range. The Volt is expected to cost around $40,000 (£27,500).

Here in the UK, the independent car company Lightning wins the award for the most stylish option – their swish-looking fully electric Lightning model looks like something an eco-friendly James Bond would drive, and should be available from late 2010. The catch? An estimated asking price of £120,000.

Source - The guardian

SEPA Issues Challenge For Massive Solar Deployment

The Solar Electric Power Association (SEPA) has issued a challenge to the U.S. electric utility and solar industries to work in collaboration to meet aggressive solar electric capacity growth forecasts despite a struggling global and domestic economy.

Prior to the recent economic downturn, analysts were predicting that the country could see an increase in solar capacity of more than thirty fold between 2009 and 2016. This is approximately three times the estimated amount of generation predicted to come on line as a result of existing renewable portfolio standards and policies in states with solar carve outs.

If realized, this level of increased solar deployment would represent more than 60 billion kilowatt-hours of solar generation, 440,000 permanent jobs, and over $230 billion in investments and associated economic development benefits. "With the United States' growing electricity consumption and the need for climate change solutions, the utility and solar industries must work together to find innovative win-win business scenarios that result in significant investments in solar power," said Julia Hamm, SEPA executive director.

"In the years to come, we need an economically-driven solar business environment in which utilities, solar companies, and electricity consumers find mutual financial benefits from the capacity, energy, and environmental solutions offered by solar electricity." Long-term U.S. market stability-provided by the eight year extension of the federal solar investment tax credit, removal of the $2,000 cap on residential systems, and new eligibility for electric utilities-sets the stage for this significant challenge to be met.

"The current suite of solar policies, including net metering, renewable portfolio standards, and piecemeal state incentives, will not be enough to achieve this goal in today's poor economy. We also need new business models, project configurations, and collaborations to emerge," added Hamm.

"The long-term value to the United States is multi-faceted. It's not just about clean energy, but also about economic development and job creation." The new solar electric capacity will come from a combination of large-scale power plants, including photovoltaics, concentrating solar thermal electric, and distributed photovoltaic rooftop systems for both the residential and commercial sectors. Prior to 2008, the predominant solar market was distributed PV systems on homes and businesses. "A recent SEPA study shows that 10 utilities in the U.S. have integrated ninety seven percent of all grid connected solar capacity," said Hamm.

"There are over 3,300 electric utilities in this country, but 10 of them have dominated the solar landscape. In addition, a single utility, Pacific Gas and Electric Company (PG&E) in California, has within its service territory, more than fifty percent of all grid-connected PV systems in the country. PG&E should be commended and encouraged to continue as a solar leader, but other utilities around the country must quickly begin to close this gap." To meet the aggressive solar capacity growth forecasts, SEPA calls for:

Utility ownership of solar power projects. The utility and solar industries must collaborate to find program structures, such as utility ownership of distributed photovoltaics, that provide a winning scenario for both industries, as well as for customers at large. The solar industry can utilize this new market segment as a buffer until home and small business owners are back on more solid economic footing.

Increased utility engagement in solar markets. The utility and solar industries must work together to get more utilities engaged, starting by increasing the solar knowledge base of utility employees, from top executives down to distribution engineers. We must move beyond having ninety seven percent of all grid-connected solar installations in just 10 utilities' service territories.

Greased wheels. The utility and solar industries must work in partnership with regulators and investors to push for approval and funding of new transmission projects and the development of smart grid configurations to expedite the timeframe in which new utility-scale and distributed solar projects can come on line and provide maximum value.

Development of innovative approaches. By working in collaboration, the utility and solar industries can make great strides towards modernizing today's electricity infrastructure and offering customers affordable and clean power. But the status quo will not achieve the necessary results. We need bold new ideas developed in tandem for the mutual benefit of both industries, and society at large.

Source - Solar daily