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Long-term Investment Signals Related to Distributed Generation
Conclusions be market-based, in order to minimise the overall societal costs for the
The ongoing trend towards increasing the amount of efficient and introduction of DG. Additional costs induced by DG should also be
renewable small-scale generation technologies creates the need to define considered and charged to the investors. Unfortunately, it is not possible
proper investment incentives for a cost-optimal use of the benefits of to consider the grid effects of DG in a market-based way. Accordingly,
these technologies. In the longer term the pricing of all benefits should grid tariffs for DG must become part of grid regulation. n
1. El-Khattam W, Salama MMA, Distributed generation Threat or Opportunity?, Public Utilities Fortnightly, Available at:
tinyurl.com/ygztglb
technologies, definitions and benefits, Electric Power Systems 1996;34(15):13–17. 6. Berg SV, Tschirhart J, Natural monopoly regulation, principles
Res, 2004;71:119–28. 4. Weber C, Vogel P, Assessing the benefits of a provision of and practice, Cambridge, 1988.
2. Brunekreeft G, Ehlers E, Ownership unbundling of electricity system services by distributed generation, Int J Global Energy 7. Vogel P, Efficient Investment signals for Distributed
distribution networks and distributed generation, Competition Iss, 2008;29:162–80. Generation, Energy Policy, 2009;37:09.
Reg Network Industries, 2005;1(1):63–86. 5. Weber C, Vogel P, Decentralized energy production and
3. Preston GT, Rastler DM, Distributed Generation: Competitive electricity market structures, EWL Working paper, 2005.
Google Launches Energy Subsidiary
Google has applied for permission to buy and sell wholesale electric
power as a marketer. The application was made on 23 December 2009
Google’s Energy Timeline
by Google’s new Delaware-registered subsidiary, Google Energy, to
2007
the US Federal Energy Regulatory Commission, the agency that
Announces goal of carbon neutrality by end of 2007.
regulates the US power grid.
Co-founds the Climate Savers Computing Initiative, a non-
profit organisation committed to making computers more
energy-efficient.
Niki Fenwick, a Google spokeswoman, said the corporation is not
Pledges US$1 million in grants to support adoption of
seeking to become an energy trader, but rather wants greater flexibility
plug-in vehicles.
Flicks the switch on a 1.6-megawatt solar installation at its
for buying renewable energy for its electricity-hungry data centres.
‘Googleplex’ headquarters in Mountain View, one of the
largest corporate installations in the US.
Google – which became the world’s largest search engine a decade
2008
ago – claimed to be carbon-neutral in 2008, but is heavily dependent
Publishes ‘Clean Energy 2030’, Google’s proposal to wean the
US off coal and oil.
on controversial offsets. “Right now, we can’t buy affordable, utility-
Announces a partnership with General Electric to advance
scale, renewable energy in our markets,” says Niki Fenwick. Google
renewable energy and build smart grid infrastructure.
Energy was formed to “identify and develop opportunities to contain
Google.org, the philanthropy arm, reaches US$50 million in
renewable energy grants and investments.
and manage the cost of energy for Google”.
Claims to have become carbon neutral by year end.
2009
Google’s interest in energy is not purely introspective. Last year it
San Francisco office wins Gold rating from the US Green
launched Google PowerMeter, a web-based home energy monitoring Building Council’s Leadership in Energy and Environmental
tool, and is partnering General Electric to work on smart grids, energy
Design (LEED) Green Building Rating System.
Launches Google Ventures, a venture capital fund supporting
software and plug-in hybrid technology. Google also invests in
new technology companies including in the energy sector.
renewable energy through its philanthropic arm,
Google.org, and its
Launches Google Energy…
venture capital units (see timeline opposite). n
Asia Beats the Americas in Clean Energy Spending
China’s spending pushed Asia-Oceania above the Americas for clean Of the US$145 billion global clean energy investment last year,
energy investment in the last quarter of 2009, according to US$91.9 billion was asset finance for major projects such as wind
Bloomberg New Energy Finance (NEF, who contribute to this edition – farms, solar parks and biofuels plants. Offshore wind was a particularly
see page 11). Tracking spending by venture capitalists, governments, prominent area of investment. The report notes that many commercial
asset financiers and others, NEF saw US$37.3 billion invested in Asia- banks restricted credit to renewable energy projects as a result of the
Oceania as a whole versus US$32 billion for the Americas; US$7.4 recession, leading public sector institutions such as the European
billion came from Beijing. “Asia has arrived not just as a big consumer Investment Bank and BNDES of Brazil to pick up the slack. However,
of energy but also as a heavyweight investor in clean energy clean energy remains a sector with “strong long-term growth
capacity,” said Michael Liebreich, Chief Executive of NEF. fundamentals even during hard economic times,” said Mr Liebreich. n
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