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December 18, 2009 7:24 AM PST

Commercial-scale solar developers pocket funding

by Martin LaMonica
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Two solar project developers this week raised funds to install commercial and utility scale projects from a somewhat unlikely source: venture capital firms.

On Friday, Tioga Energy said it has raised $20 million to build out its business of providing project financing for commercial and municipal solar installations, such as schools and businesses. Investors included solar wafer manufacturer MEMC and venture capital companies NGEN Partners, Nth Power, and Draper Fisher Jurvetson.

SunBorne Energy Holdings on Wednesday disclosed that it has secured $5.2 million in funding from venture-capital company General Catalyst. It plans to develop utility-scale solar projects in India, including a planned solar thermal project in the state of Gujarat.

Although they are addressing different customers, both companies are in the business of renewable energy project development, where they build, own, and then maintain solar installations.That model is typically used for non-residential solar because third-party financing makes investment far more attractive to prospective customers such as businesses and utilities.

(Credit: Applied Materials)

Tioga Energy provides power purchase agreements in which the customer doesn't have to pay the upfront cost of the solar panels. Instead, it purchases the electricity generated by the panels from Tioga, which finances the installation and manages ongoing operation.

Financing renewable energy projects is typically done by banks or companies specialized in project financing, but that source of money has dried up in the economic downturn. Venture capitalists, meanwhile, have typically stayed clear of project finance because they seek bigger financial returns by investing in technology or business model innovations.

But General Catalyst is starting to look at project development companies as part of its mix of investments, said investor Bilal Zuberi in his blog. "Strong execution, plus control over a scarce resource, allows a developer to not just create value from projects on the ground but also from future pipeline of projects," he said.

The series B round for Tioga Energy will serve to finance construction and development of new projects. NGEN Partner Steve Parry in a statement said it invested in Tioga's series B round with MEMC to accelerate the adoption of green technology and renewable energy.

July 3, 2008 11:29 AM PDT

India reveals its first climate change plan

by Hanna Sistek
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In the wake of next week's G8 meeting in Japan, India released its first action plan for climate change (PDF) earlier this week.

The plan outlines eight national "missions" for sustainable development, including:

  • solar energy;
  • energy efficiency;
  • creating a sustainable habitat;
  • conserving water;
  • preserving the Himalayan ecosystem;
  • creating a green India;
  • creating sustainable agriculture;
  • and establishing a platform of "strategic knowledge for climate change."

The plan lacks a budget and plan of action at this point, but a Council on Climate Change, with stakeholders from the government, industry, and civil society, has been formed to come up with directives and funding.

Among the eight missions, the strongest focus seems to be on solar power.

"We will pool all our scientific, technical, and managerial talents, with financial sources to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people," India Prime Minister Manmohan Singh, who chairs the council, said during the announcement of the plan.

"Our success in this endeavor will change the face of India," he continued.

A goal is to increase photovoltaic production to 1 gigawatt per year (today the total installed world capacity is roughly 20 GW and almost doubling each year) as well as establish 1 GW of concentrating solar power, or CST, generation capacity by 2017. CST technologies include trough systems, dish/engine systems, and power towers that heat up water or molten salt that can then be used to run a generator to produce electricity.

And indeed, investments are piling up in the solar-tech industry in the country. In Fab City, a proposed semiconductor manufacturing hub outside of Hyderabad, solar cell companies are slowly taking over the grounds.

The IT ministry decided in 2006 to develop a 1,200-acre site near the upcoming Hyderabad international airport (inaugurated in March this year) and turn it into a chip manufacturing center. Interested corporations can apply for land allotments, and so far more than half of the land has been taken.

In February, the last four companies receiving approval to set up shop were all in the photovoltaic business.

NanoTech Silicon India is investing $2 billion in a plant for thin-film solar cells, after scrapping its initial plan for a chip factory in the same spot.

The domestic Titan Energy Systems, already a Hyderabad manufacturer, plans to build a $759 million photovoltaic cell and wafer production facility in phases over the next three years.

XL Telecom & Energy is setting up a $75 million solar module factory, and KSK Energy Ventures will built a $70 million unit for making photovoltaic panels.

Earlier, solar cell and panel manufacturer Solar Semiconductor announced it would be investing $1.1 billion to expand its manufacturing capacity in Fab City over a 10-year period.

Apart from shiny solar power prospects, India's action plan lacks commitment to cut carbon emissions, just like China's did last year.

India contributes 5 percent of the world's carbon emissions, and China contributes 17 percent, according to a World Bank report.

But per capita, Indians emit far less carbon dioxide than Americans or Europeans.

The action plan highlights carbon dioxide emissions, which is cited to be 1 metric ton per person in India, compared to 20 metric tons in the U.S. The world average is 4.25 metric tons.

"Every citizen of this planet must have an equal share of the planetary atmospheric space," Singh said in his speech. He, just like others, pushes for per capita emission rules. That would be a nightmare for the hard-consuming, industrialized world.

April 15, 2008 9:38 AM PDT

Third-world lessons for recycling phones

by Carl-Gustav Linden
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Street repair services in Delhi, India.

Street repair services for cell phones are a big industry in India. Technicians there get a diploma from a 'Mobile Repairing Institute.'

(Credit: Jan Chipchase/Nokia)

SAN FRANCISCO--Jan Chipchase is a cell phone modification guru. A researcher at Nokia Design in Tokyo, he's seen cell phones modified to hold up to 16 SIM cards and plenty more in his role at the company.

Chipchase is a member of a team at Finnish cell phone giant Nokia that's trying to lower the cost of phones for emerging markets, an effort that's part market development and part recycling. The group of 15 has scanned bazaars and street shops in places as diverse as Ghana, Brazil, Iran, India, Egypt, Uzbekistan, Vietnam, China, and Mongolia to learn how end users relate to their products--and they discovered surprises that could impact consumer electronics makers within the next 15 years.

Jan Chipchase

Jan Chipchase

(Credit: Nokia)

Their main finding: there's no limit to how cell phones can be modified and how their life spans can be extended.

And breathing new life into phones usually doesn't take a complex set of tools. In most cases, handsets can be reborn with the help of just a screwdriver and a toothbrush sprayed with alcohol to clean the contact heads.

In Accra, the capital of Ghana, the shining device on display might very likely be an old phone that got a tuneup. Have a defunct phone? In China, you can go to a bazaar and purchase any part for the 20 most popular phones. The shelves are also filled with printouts of repair handbooks.

"The point is that you think the thing is a closed box that can't be tinkered with, but you can actually go into a shop and build your own phone," Chipchase told CNET News.com last week. He stopped here to speak at a meeting arranged by research and development firm Adaptive Path.

One of Chipchase's favorite pastimes while traveling is to buy a mobile phone, smash it, and bring it to a cell phone repair shop to see how technicians deal with the mess. He calls this "the repairing experience."

Open mobile phone

So, you want that phone with 3G?

(Credit: Jan Chipchase/Nokia)

"The informal repair culture...makes mobile phones something more affordable to price-sensitive customers, increasing the lifetime of products while lowering the environmental-impact risks," he said, adding that with new phones appearing constantly, street mechanics very quickly learn how to work with new models.

"If they want to stay in business, they've got to listen to what the customer wants," Chipchase said.

In Tehran, meanwhile, consumers can just bring a phone to a shop where the shelves are filled with the latest software ready for download--pirated just weeks after a new model has hit the world market.

The same software-on-demand thinking goes for India--on the streets of New Delhi customers can buy a video phone that plays cricket clips and Bollywood films. And if you're in the market for a job there, you can get a diploma from a "Mobile Repairing Institute."

Installing alternative languages, switching frequency bands, unlocking software installations--these are part of everyday life in many of the places Chipcase and his team visited. In Cairo, Egypt, grocery store owners ask if you want to buy ringtones as you shop for food.

Looking for new ways to recycle
Meanwhile, with Earth Day approaching April 22, the recycling of electronics such as cell phones may assume a more prominent spot in people's minds.

In some parts of the world, the notion of not recycling electronics might seem absurd. People save their wages for months to be able to buy a cell phone, a precious little tool for small businesses or keeping in contact with family and friends where the Internet or even a landline just isn't accessible.

But in the U.S., there are more than half a billion retired phones, and less than 1 percent of those get recycled, according to information from the U.S. Geological Survey and nonprofit Earthworks.

Nokia, which dominates the world market for cell phones in almost every part of the planet except for the U.S., thinks there's much to be done on that front.

One example of what might be a new approach is the Nokia prototype cell phone Remade, which the company showed off at the GSMA Mobile World Congress in Barcelona, Spain, in February. Remade's cover, rather than coming from petroleum-based plastic, is made of recycled aluminum cans and old rubber tires, and the device inside comes from a used cell phone.

laptop for cell phones

Cell phone software on demand in Delhi, India.

(Credit: Jan Chipchase/Nokia)

"This is a concept, to take waste and turn it into something useful," Chipchase said. Although the thin, silver Remade doesn't yet make phone calls and may never reach the market, it can be seen as a commitment to change--and a step toward a possible eco-trend.

During its travels, the Nokia design team discovered a whole business ecosystem around the mobile phone.

And no wonder, as half of the world's population owns a wireless device, according to a report by Informa Telecoms and Media. By the end of last year there were 3.3 billion subscribers. India's subscriber base will pass the U.S. this month, according to Cellular-News.

"In terms of scale, no electronic object has gone so far," Chipchase said.

Asked how Nokia's management has reacted to his team's findings, Chipchase said the data inspires a sense of potential. "People who don't work in these countries are surprised," he said. But "they see it as a possibility, more than a threat."

phones on a table

Many times, all that's needed to repair a cell phone is a good screwdriver and a toothbrush sprayed with alcohol to clean the contact heads.

(Credit: Jan Chipchase/Nokia)

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