How much does cost matter in first wave of EVs?
Chevy Volt’s $41,000 price tag caused some sticker shock, but the first buyers appear willing to pay. Will it lead to the mainstreaming of electric vehicles?
Read more on CNET
How much does cost matter in first wave of EVs?
Posted on 29 July 2010 by admin
The cost efficiency of wind energy
Posted on 24 July 2010 by admin
Although wind energy is not yet being utilized to its full potential, the growth of this industry has led to a marked decrease in energy generation costs over the last couple of decades. While its cost effectiveness is increasing with maturity, it is still important to note that there has already been a substantial eighty to ninety percent reduction in the cost of installed wind power over the last twenty years. Innovation and growth in wind energy generation over the years will ensure continuity in the trend of falling costs. Even though it is still not considered a mainstream source of power, there has been an approximate increase in wind power capacity of more than 30% per capita, in the last five years in the United States alone. It is also important to note that by the end of 2008, the United States overtook Germany as the country with the most wind power capacity installed globally. Moreover, wind power was second only to natural gas in terms of new power capacity, amounting to about 42% of the total new power capacity added in the US in 2008. Nations around the world are now striving to develop and understand the full potential of wind energy, both economically and environmentally. The development of wind energy is not only proving to be a financially viable option, but also one that can be highly beneficial in windy areas as well as to self-reliant small scale farmers, ranch owners and the like. A growth in this industry will also help generate more employment opportunities.
A number of factors need to be taken into consideration, in order to understand what affects, contributes to, or detracts from the cost effectiveness of wind farming.
Financing and Ownership: One of the most important factors in determining the cost efficiency of wind power generation is finance. Since most wind farming projects tend to be owned by individual energy suppliers, financing could run higher than mainstream power sources. This is because utilities and investor owned set-ups obtain provisions for lower cost financing and interest rates. Therefore, when projects are utility owned they tend to be cheaper. Also, since wind energy generation is still not considered part of the norm by many, these stakeholders are not offered as many financial benefits by lenders, unless utility owned. To provide an idea of cost, a wind farm currently costs anywhere from 1.8 to 2.3 million dollars per installed megawatt (MW). While these costs are still higher than constructing a coal or natural gas fired generation facility, there are numerous incentives and long term benefits as explained further below.
Inflation: Wind power is one of the few energy sources that does not depend on oil or fuel for production. Therefore, the ups and downs that affect fuel prices do not affect this industry. Once the plant is built, and the costs are known and fixed, fuel prices that rise due to inflation do not affect the cost of energy. This makes wind power almost immune to inflation. Additionally, due to the huge savings from the non-dependence on fuel, the amount of capital employed and expenditures on new technology get adjusted over time.
The speed of wind at a given location: The speed of wind varies at different geographical locations. The energy harnessed at any given wind power site is dependent on the cube of the wind’s speed; so when there is an increase in speed, there is an exponential increase in energy generation. Therefore, a wind turbine faced with a faster wind velocity would be more productive with the same infrastructure costs, making the operation considerably more cost effective.
Turbine design: The height of the turbine tower as well as the span of its rotor blades affect the output generated. The taller the tower and wider the area covered by the blades, the higher the productivity. Keeping these factors in mind, developments in blade design, electronic systems as well as other components have helped reduce costs. Also the bigger, newer turbines found today generate a lot more electricity as compared to older models, and at a reduced cost.
The scale of the project: Large scale wind farms are now being offered many incentives (such as grants, subsidies, loan guarantees etc.), which help lower energy costs. Also, transactions and management costs can be covered by the sheer number of kilowatts of power produced per hour as compared to those in a smaller wind farm project. Large scale wind farming puts this sector in the same competitive sphere as other power generation industries.
Policies: Various policies including tax and environmental policies have varied impacts on wind power generation. These policies do affect market access, transmission, incentives and the basic economics of wind farming. Since, it is not possible to give an accurate number of an hourly delivery of electricity due to wind variability; providers are sometimes penalized, irrespective of whether they actually affect the utilities costs of obtaining power. Also they are often faced with the lack of proper standardization or varied demands from utilities. However, a rebuilding of the electricity markets and extended power purchase agreements will continue to contribute to improving the cost efficiencies of wind power projects. The federal tax code also has provisions for a production tax credit for wind power. However, these policies and credit provisions need to be consistent and long-term to have any real positive impact on this industry.
Environmental benefits: Wind power compared to other conventional sources of power is extremely environmentally friendly. It does not depend on fossil fuels nor does it produce any harmful by-products. The economic and environmental costs incurred during the initial set-up period is somewhat nullified over a few months of operation. While producing the same amount of energy in a given period, fuel emits copious amounts of pollutants into the air creating a very dangerous carbon footprint. In turn, wind farming does not adversely affect the quality of life of people or wildlife, thanks to the lack of harmful wastes. Also, as mentioned earlier, since it does not depend on fuel or lack thereof, it will be a lot more cost friendly in the long run both ecologically and financially.
Wind Integration: In order for wind energy to become a major player in energy supply, there needs to be an efficient integration of wind power into the main power grid. Due to the variability of the wind, a small amount of additional energy needs to be generated and fed into the grid. These costs are generally low and can be curtailed with proper planning, interconnection and forecasting. Also, customers may enjoy a lower cost of energy, because there is no consumption of fossil fuels. Efficient market operations and transmission systems will help strengthen this industry and its affordability.
Vert Investment Group (“Vert”) is a leading renewable energy investment advisory firm focused on small to medium-sized utility-scale wind energy projects in strong power markets. Vert utilizes its proven methodology, the Staged Progression Model, to guide development projects to construction ready and identify investment opportunities that generate out-sized returns.
Money Cost is King Large vs. Small in the Biodiesel Processor World
Posted on 11 June 2010 by admin
Biodiesel producers are debating money cost in the biodiesel processor world vigorously. Why you say? What saves more money while maintaining maximum production? This is why investors are now considering building 5 – 1million gallon biodiesel plants vs. 1 – 5million gallon plant to save money cost.
Look at the potential cost investors must consider before opening a biodiesel processing plant: Market availability, cost of transportation, raw feedstock availability, cost of construction and contracting. Variable costs, including permits, utilities, bonds, waste disposal, and property rent. Local tax rates, Qualitative Employee Satisfaction, real estate availability cost are all things you have to consider when starting a new biodiesel processing plant.
Some processors will spend approximately $78 million on a single plant, and $45 million of the cost is associated with holding tanks and distribution infrastructure. Only $30 million goes to equipment for processing fuel. Put another way, that’s 30 cents per gallon in capital equipment for producing fuel.
Cost is king in the biodiesel world. Biodiesel comes from plant matter or animal fat from farms in various parts of the world. Regular diesel comes from deep holes in exotic locales like Nigeria Africa, and exploration costs have been climbing.
Biodiesel refiners, however, have to contend with high commodity prices. It takes 7.35 pounds of degummed soybean oil to make 1 gallon of biodiesel, according to a professor at the University of Minnesota. (Vegetable oil is measured in pounds at wholesale.) And vegetable oil has been rising in price. Options on soybean oil futures, for instance, are selling for around 37 cents a pound. Thus, the raw material alone can cost more than $2.50 a gallon, above the wholesale price of refined, regular diesel. That now hovers around $2.40 per gallon. Without the federal subsidy (the federal government gives subsidies of 50 cents per gallon for used oil and animal fat and $1.00 a gallon for fresh oil) most biodiesel manufacturers would lose money.
Keeping biodiesel capital costs down, therefore, is a big issue for these companies. Despite all the risks, industrial giants like ConocoPhillips, Tyson Foods, ChevronTexaco and Standard Renewable Energy are all jumping into the market because of rising demand and increasingly stringent emissions requirements.
But smaller investors have a newer plan; why not locate 5 smaller plants in a region or state nearer your customers or feedstock sources? You can purchase a small commercial biodiesel plant that produces 2.3 gallons per year for $50,000 from companies like Biodiesel-Equipment.com and link them together digitally to monitor their production. The thought process is if you need to reduce production you can easily when business is not so good, and you can increase production easily because of the small size of the plants. With the right business model these smaller plants could potentially be franchised. Smaller cost to maintain larger production.
This is a great David vs. Goliath story where the smaller biodiesel biomass company will defeat the larger one by being the most nimble and cunning with its resources.
Victor Garlington has been a long proponent of bio-fuels and produces bio-fuel for his own vehicles. He is currently helping others discover alternative fuels as a solution to high fuel prices. He can be contacted at victor@70centsagallon.com
http://www.70centsagallon.com/index.html
Tuition cost for degrees in Singapore
Posted on 10 June 2010 by admin
If you are parenting your kid for post secondary education in Singapore or abroad, there are handful informative sources and choices available today. For further studies you can rely on autonomous universities as National University of Singapore (NUS), Nanyang Technological University (NTU), SIM University and Singapore Management University (SMU). These are collaborated with top foreign universities to accommodate their own course curriculum and independent with excellence in educational achievements. Tuition fees in Singapore for these universities are highly subsidized by the Singapore Government. For eligible students Tuition Grant Subsidy Scheme has been established. Singapore citizens, permanent residents and foreign students who are eligible for subsidy need to submit online application form through Ministry of Education website. Students admitted on subsidized fee paying mode can get coverage as scholarships and financial assistance schemes also. But it should be minded that miscellaneous fees like student registration, activities, health insurance, library, IT, academic services etc.
If the student is not lucky enough to qualify for these four universities, there are private universities and specialized institutions like TMC, Informatics, Chicago Booth, DigiPen, Essec, GIST-TUM Asia, INSEAD, SP Jain Institute of Management etc. There are five Polytechnics NYP, NP, RP, SP, and TP in Singapore. Admission cost, course fees in these private organizations can be 3-4 times costly than autonomous universities. Tuition fees in tuition centre Singapore is really fluctuating. Where NUS or NTU would cost S$5,000 per year after subsidy, Informatics would demand S$20,000 for the same. So you as a parent have two options at hand either scholarships or money to fund your student’s further studies. If concerned about sufficient financial arrangement and lack student scholarships, you can opt for tuition fees financing schemes. To avail of this opportunity proper knowledge on loan amount, eligibility, guarantor, repayment period, amount, interest rates all terms and condition is important. For students it is recommended to plan out loan amount and identify the ways of repaying the debt once start working.
Studying abroad would cost you much higher price. Apart from Australia, higher studies in Britain, USA would ask around 10 times course fees. If you don’t have scholarships or educational loan it is extremely difficult to arrange the financial burden. There are students spending years to repay debts worth of million. So loans should be picked carefully. Tuition fees for foreign students in Singapore is 10% high than local students. To enjoy the benefits of tuition grant a foreign student has to be bonded for 3 years while on job.
Students of Singapore looking for undergraduate degree studies should keep in mind that overseas institutions are not accredited by Ministry of Education thus degrees are not recognized and the job would purely depend on employers’ recruitment criteria. Before selecting an overseas institution it is advisable to check its bonafide establishment certification. Professional degrees like engineering, medical, laws etc. should be recognized by respective professional bodies like Professional Engineers board to get a job in Singapore. There are local agents who conduct such overseas programs in Singapore. For those every student should have good amount of information on institution or agents before enrollment.
Krishna Swaminathan a mandarin tutor in Singapore shares his view on various aspects of tuition fees.Find such vital information from MyprivateTutor.sg and online tuition agency Singapore.
Students Consider the Cost With the Federal Family Education Loan Program
Posted on 05 June 2010 by admin
The College Student Relief Act (H.R. 5), recently approved in the U.S. House of Representatives, currently is awaiting approval by the Senate. The act, which proponents claim will benefit taxpayers, may not have the impact that backers claim. Essentially, H.R. 5 encourages schools via incentives to go with the government’s Direct Lending Program over the Federal Family Education Loan Program (FFELP).
This is being pushed even though the Direct Lending Program has been operating at a deficit since 1997. Currently, the Direct Lending Program only has $89 billion in student loans, but owes the government $105 billion, a shortfall of $16 billion. Opponents of H.R. 5 are concerned, as they realize that taxpayers ultimately will end up picking up the $16 billion tab.
FFELP Saves Students Thousands
The FFELP, established by Congress more than 40 years ago, allows students to choose lenders based upon such criteria as customer service, incentives such as interest rate reduction, and other factors. Private lenders, including savings and loans, credit unions and banks, provide federally secured low interest student loans for college students that include: Parent Student Loans for Undergraduate Students (PLUS), Graduate PLUS Student Loans, Federal Subsidized Stafford Student Loans, Federal Unsubsidized Stafford Student Loans, and the Federal Student Loan Consolidation Program.
Through subsidies provided by the federal government, private lenders pass on savings to students in the form of student loan incentives. These benefits form the basis of competition in the student loan industry, offering potential savings of thousands over the course of a student’s loan in order to win a borrower’s business. When private lenders compete within the context of the FFELP, students win with greater savings. For instance, NextStudent, the Phoenix-based premier education funding company, provides a 1 percent LOCKED interest rate reduction once a borrower has made 36 on-time consecutive payments, one of the most aggressive benefits in the industry.
College Student Relief Act Doubles Costs
If the College Student Relief Act becomes law, students may be adversely affected. It will cut in half the subsidies paid to FFELP lenders, effectively doubling the cost required to service these student loans. Over time this will reduce the number of FFELP lenders, and ELIMINATE competition. This will negatively affect customer service, information about financial aid, and benefits passed on to students through student loan incentives.
Many students and their parents until recently were not aware of the adverse effects of the College Student Relief Act. Some have decided to take action, and, in essence, fight for their rights to save by contacting their senators, and asking them to vote against H.R. 5. Find your senators’ contact information here: http://www.senate.gov/general/contact_information/senators_cfm.cfm. Every little bit helps to protect the integrity of quality financial aid in the United States.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans and student loan consolidation at NextStudent.com.
Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.
How to Offset the Cost of Solar Panels
Posted on 01 June 2010 by admin
Public concern about global warming and rising energy costs has led to an increased interest in clean, renewable energy. Solar energy is a particularly attractive alternative to petroleum dependence. Solar energy is a clean, reliable and endlessly renewable energy source, and new technology has made it more affordable than ever to homes and businesses.
Even so, the initial cost of buying and installing a solar energy system can be daunting. A typical solar installation for a single family dwelling could cost $20,000. Though using solar power saves money on utility bills, eventually giving a complete return on your investment, the initial cost can be prohibitive to many consumers.
Fortunately there are numerous financial incentives at the federal, state and local level that can significantly defray the cost of installing a solar energy system.
Incentives are available from federal, state and municipal governments, from local and regional groups including non-profit and private organizations, and from local utility companies.
At the federal level, the Renewable Energy and Energy Conservation Tax Act of 2005 provided funding for tax incentives for residential and commercial applications. This Act seeks to support the development of energy efficiency and energy independence.
The Act provides two federal tax incentives for homeowners. The Residential Solar Fuel Cell Tax Credit is a personal tax credit which applies to solar hot water systems, photovoltaic, or PV systems (solar electricity), fuel cells, or other solar technologies.
Homeowners can receive a credit for 30% of the cost of installing a solar energy system, with a cap of $2,000 for a PV system, and an additional $2,000 for a solar hot water system; and a cap of $500 per .5 kW generated by fuel cells.
Excess credit, that credit which amounts to more than the taxpayer’s liability, can be carried forward to the next tax year. Installation must be certified by the Solar Rating and Certification Corporation, or SRCC; or by a comparable rating system endorsed by individual states.
Additionally, at least one-half of the residence’s energy needs must be provided by the solar technology.
The federal government also allows a Personal Exemption : the Residential Energy Conservation Subsidy Exclusion. This exemption applies to solar and other efficiency technologies, including solar hot water, solar space heat, and Photovoltaic.
Owners of single and multi-family dwellings can deduct any subsidies provided to them by public utilities for energy conservation. That means that any increase in a homeowner’s income due to a subsidy or rebate from a utility company as a result of the installation of an “energy conservation” measure, will not be taxed.
“Energy conservation” has not yet been explicitly defined by the IRS, though in practice it is understood to include solar technologies. It would wise, however, to consult with a tax advisor about this matter.
The federal government also provides federal loans, both residential and commercial. These are Energy Efficiency Mortgages, or EEMs, that home and business owners can use to finance energy efficiency improvements to existing buildings.
EEMs are available through the FHA and the VA. FHA loans allow lenders to add 100% of the costs of energy efficiency improvements to existing mortgages, by insuring loans of up to 5% of the appraised value of a home, or $4,000, whichever is the greater, with a cap of $18,000.
VA loans can be used to purchase an existing home or to refinance a mortgage for energy efficiency improvements.
EEMs are also available through Energy Star, Fannie Mae and Freddie Mac. Energy Star loans are not guaranteed by the federal government, but they currently provide a listing of 49 financial institutions that will provide loans specifically for energy efficient new homes or improvements to existing homes.
Private lenders such as Fannie Mae and Freddie Mac also provide conventional energy efficiency mortgages as well.
Federal grants are also available to commercial and agricultural entities to promote the development of energy efficiency and energy independence. Unfortunately, the Federal Renewable Energy and Energy Conservation Tax Act is due to expire at the end of 2008.
The most recent energy bill, passed in December 2007, did not extend funding for renewable energy. While the matter of funding for renewable energy will no doubt come up again, and be vigorously debated in the next budget, as of now, its future is in doubt at the federal level.
Luckily, federal funding is only one facet of the broad array of financial incentives available. At the state level, there are tax incentives, state loans, grants, and rebates, municipal, regional and local rebates, utility rebates and credits, private funding, and non-profit funding.
State and local incentives vary greatly. Some states have taken the lead in offering financial help to home and business owners who want to develop energy independence. Other states clearly lag behind, though in some cases, private, non-profit and utility incentives pick up the slack from state governments.
Each state has its own tax law, and tax incentives range from tax rebates of thousands of dollars for each system (for example Vermont offers up to $8,750 for a PV system and another $8,750 for a solar hot water system), to tax exemptions.
Two types of tax exemptions found are sales tax exemptions, a one time exemption; and property tax exemptions, which carry into successive years. Property tax exemptions allow any increase in the value of a property due to the installation of renewable energy systems to be exempt from taxation.
In addition to tax incentives at the state level, there are other sources of financial aid such as low interest loans, grants, and rebates from state and municipal governments, utility companies, and various private and non-profit organizations. Eligibility varies as widely as incentives do.
So how can a consumer find what types of financial incentives are available in his state?
The best source of information is the Database of State Incentives for Renewable Energy, or DSIRE. DSIRE is a comprehensive listing of financial incentives for renewable energy. DSIRE offers information about financial aid on the federal and state level.
To find information about your state, simply click your state on the map, and any incentives offered in your state are listed, including tax breaks, loans, grants, local or regional incentives, and rebates offered by public utility systems. Links to further websites and contact information are also provided.
Additionally, there is an easy link to federal tax information from each state page. DSIRE is the go-to site for determining what financial assistance you may be eligible to receive.
Don’t overlook consulting with an experienced solar energy installation specialist. He or she should be familiar with any funding that is available in your area.
Also, do consult with a tax advisor to ensure that you correctly claim the right credits and exemptions on your tax return.
With all the financial incentives currently available, installing a solar energy system is more affordable than it has ever been. There’s never been a better time than right now to invest in solar energy.
Gina Buss is a biologist and freelance environmental writer.
Learn ways to save money while protecting the environment.
Why don’t ‘Man-did-it’ Global Warming advocates discuss the HIGH cost of renewables?
Posted on 03 May 2010 by admin
It seems to me when looking at the taxpayer subsidy per unit of energy (subsidy per MillionKWH), that Solar and Wind are ‘out of this world’ in terms of cost to the taxpayer…. Especially considering that the claim of ‘Man-did-it’ Global Warming is unproven. Just imagine what we as Taxpayers are going to have to pony up if the Warmers have their way and cover the land with Wind turbines and solar panels!! If they are so great, then why can’t the private sector manage them without their sinful taxpayer subsidies??!! We can’t afford another ethanol scam!!
Alternative Measures of Subsidy and Support
FY 2007 Net
Generation per energy unit (billion kilowatthours)
Subsidy and Support Per unit of Production
(dollars/megawatthours)
Energy Type/ Taxpayer Subsidy per MillionKWH
Coal 0.44
Natural Gas and Petroleum Liquids 0.25
Nuclear 1.59
Hydroelectric 0.67
Solar 24.34
Wind 23.37
Source: U.S. Department of Energy
What is the real cost of cheap fruit?
Posted on 30 April 2010 by admin
I always find it ironic when someone who fled their country of extreme poverty, then when they get here to the US, they criticize us. Its true if we expel all the illegals the price of our fruit will go up. But I think that is a lot cheaper than hiring an illegal for $10 an hour and having to pay for their seven kid’s education, having to pay for all of their health care, providing them with nice parks and community facilities which are non-existent in Mexico, having to provide them with cheap housing, having to provide them with food stamps, having to clean up the air because their car doesn’t pass the smog test.
Are all of these subsidies really worth the price of cheap fruit?
What is in this healthcare “reform” bill that will cost $871 billion?? Subsidies…..anything else?
Posted on 25 April 2010 by admin
This seems like a lot of subsidies for poor people and a federal mandate to buy private insurance for everyone else.
Did I miss something??
Lilly 1Q profit falls 5 pct in part on reform cost
Posted on 19 April 2010 by admin
Lilly 1Q profit falls 5 pct in part on reform cost
Health care reform charges helped chop Eli Lilly and Co.’s first-quarter profit by 5 percent, offsetting strong sales growth from some of its top-selling drugs. The Indianapolis drugmaker said Monday it took a one-time charge of $85 million in the three… Eli Lilly and Company – United States – Indianapolis – Politics – Health Care Reform
Read more on San Francisco Chronicle
