Check it out. . .

Check it out. . .

Tesla Motors announced today that sales of its Model S vehicle exceeded the target provided in the mid-February shareholder letter. As customers who note their Model S serial number this weekend will realize, vehicle deliveries (sales) exceeded 4,750 units vs. the 4,500 unit prior outlook. As a result, Tesla is amending its Q1 guidance to full profitability, both GAAP and non-GAAP.

“I am incredibly proud of the Tesla team for their outstanding work. There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution,” said Elon Musk, Tesla Motors co-founder and CEO. “I would also like to thank our customers for their passionate support of the company and the car. Without them, we would not be here.”

Also being announced today is that the small battery option for the Model S will not enter production, due to lack of demand. Only four percent of customers chose the 40 kWh battery pack, which is not enough to justify production of that version. Customers are voting with their wallet that they want a car that gives them the freedom to travel long distances when needed.

The customers who ordered this option will instead receive the 60 kWh pack, but range will be software limited to 40 kWh. It will still have the improved acceleration and top speed of the bigger pack, so will be a better product than originally ordered, and can be upgraded to the range of the 60 kWh upon request by the original or a future owner.

Tesla is also revealing a small Easter egg today: all 60 kWh cars have been and will be built with Supercharger hardware included. Tesla is taking a slight cost risk that ultimately all customers will want to buy the Supercharger upgrade and receive unlimited, free long distance travel for life. Even for those that never drive long distances, this will improve the resale value of their car to people that do.

Want to see where Tesla's CEO is investing next?

Check it out. . .

Check it out. . .

"Unless they reinvent themselves soon, these [utility] giants risk becoming the dinosaurs of the energy market," says Geert De Clercq, in an analysis on Reuters.

Although utilities in the US and Europe have been investing in solar projects, they haven't been doing it anywhere near the pace that's needed to retain their role as the dominant source of electricity.

Now, those decisions are coming to roost. In Europe, utilities' stocks are at the lowest level in a decade and they carry enormous debt from mergers.

In Germany, 22% of electricity comes from renewables and utilities own just 7% of the 71 gigawatts (GW) installed as of 2011 (a typical nuclear plant produces 1 GW). The situation is similar in Italy.

Most of Germany's biggest manufacturers are investing in renewables to produce their own power.  In fact, the majority of the Fortune 100 companies are switching to on-site power generation.

In the US, Walmart currently tops the list for on-site renewables (almost all solar), followed by BMW, Coca-Cola, the US Airforce and Kohl's Department Stores.

Who owns most of the renewable energy in Germany? Individuals own 40%, energy niche players 14%, farmers 11%, industrial companies 9%, and financial companies 11%. Small regional utilities and international utilities own 7%, according to Reuters.

"We have to adjust to the fact that, in the longer term, earning capacity in conventional electricity generation will be markedly below what we've seen in recent years," Peter Terium, CEO of utility RWE, told Reuters.

Worse still, demand for electricity is dropping too because of energy efficiency efforts. 

Gerard Mestrallet, CEO of French gas utility GDF Suez calls it a "real revolution" - consumers are becoming producers.

Add to that the latest trend - adding energy storage (batteries) to solar systems. Germany is encouraging that by including energy storage in their feed-in law.

"Germany and Italy will be explosive markets for residential storage and big energy users are also starting to show an interest. This is a game changer," Nicola Cosciani of Fiammhe, a leading industrial battery manufacturer, told Reuters.

What's a Utility To Do?

The ultimate role for utilities could be very different than today. Rather than selling energy directly to individual customers, they could end up aggregating electricity across the grid, in the same way Google aggregates content.

They would act more like an insurance company, making sure the power stays on and balancing energy sources such as solar and wind. 

France, Spain and the UK are already looking in that direction, preparing legislation that would pay utilities based on keeping the grid at full capacity.

For now, companies like GDF Suez are playing catch up by buying and building renenewable energy projects, while expanding into markets that have high energy demand without much renewable capacity yet.  40% of Suez's capacity is now in those markets, where it can continue to provide energy under a traditional centralized role.

And almost a third of the employees at Suez work at a new division that implements efficiency upgrades for institutional clients and operates their renewable energy systems.

Besides the boom to individuals and businesses in owning and generating their own energy, this transition also benefits all the companies that make buildings more efficient - those that make, sell and install insulation, efficient windows and the huge range of energy efficient equipment. 

"As if to illustrate the power shift from once-mighty utilities, GDF Suez this month lost its place in the blue-chip Stoxx Europe 50 index to Schneider Electric, a specialist in energy management systems and smart grids," says Reuters.

I love the fact that in the face of a thousands of naysayers, he proved that electric cars are powerful machines capable of transitioning us away from the antiquated internal combustion engine, and in a way that doesn't cut corners and leave drivers without anything they couldn't get with a traditional internal combustion vehicle.

You see, in the early days of Tesla Motors (NASDAQ:TSLA), the anti-EV brigade and all its knuckle-dragging minions who, to this day continue to rave about the invention of fire and the wheel, did everything possible to discredit Musk, Tesla and its electric offerings.

But no matter how hard they huffed and puffed, they couldn't blow the house down. And today, with its Model S blowing the doors off of nearly every new vehicle technology we've seen in the past eighty years, Musk is getting the last laugh.

Of course, that doesn't mean detractors of the electric vehicle won't continue their devious efforts. In fact, last week, New York Times writer John Broder published a ridiculous hack piece on Tesla, complete with lies, misinformation and an agenda that was anything but honest.

Thankfully, Musk called out this charlatan journalist, and even published a piece that proves Broder fabricated some of his claims.

In his rebuttal, Musk writes. . .

After a negative experience several years ago with Top Gear, a popular automotive show, where they pretended that our car ran out of energy and had to be pushed back to the garage, we always carefully data log media drives. While the vast majority of journalists are honest, some believe the facts shouldn’t get in the way of a salacious story. In the case of Top Gear, they had literally written the script before they even received the car (we happened to find a copy of the script on a table while the car was being “tested”). Our car never even had a chance.

The logs show again that our Model S never had a chance with John Broder. In the case with Top Gear, their legal defense was that they never actually said it broke down, they just implied that it could and then filmed themselves pushing what viewers did not realize was a perfectly functional car. In Mr. Broder’s case, he simply did not accurately capture what happened and worked very hard to force our car to stop running.

Here is a summary of the key facts:

• As the State of Charge log shows, the Model S battery never ran out of energy at any time, including when Broder called the flatbed truck.

• The final leg of his trip was 61 miles and yet he disconnected the charge cable when the range display stated 32 miles. He did so expressly against the advice of Tesla personnel and in obvious violation of common sense.

• In his article, Broder claims that “the car fell short of its projected range on the final leg.” Then he bizarrely states that the screen showed “Est. remaining range: 32 miles” and the car traveled “51 miles," contradicting his own statement (see images below). The car actually did an admirable job exceeding its projected range. Had he not insisted on doing a nonstop 61-mile trip while staring at a screen that estimated half that range, all would have been well. He constructed a no-win scenario for any vehicle, electric or gasoline.

• On that leg, he drove right past a public charge station while the car repeatedly warned him that it was very low on range.

• Cruise control was never set to 54 mph as claimed in the article, nor did he limp along at 45 mph. Broder in fact drove at speeds from 65 mph to 81 mph for a majority of the trip and at an average cabin temperature setting of 72 F.

• At the point in time that he claims to have turned the temperature down, he in fact turned the temperature up to 74 F.

• The charge time on his second stop was 47 mins, going from -5 miles (reserve power) to 209 miles of Ideal or 185 miles of EPA Rated Range, not 58 mins as stated in the graphic attached to his article. Had Broder not deliberately turned off the Supercharger at 47 mins and actually spent 58 mins Supercharging, it would have been virtually impossible to run out of energy for the remainder of his stated journey.

• For his first recharge, he charged the car to 90%. During the second Supercharge, despite almost running out of energy on the prior leg, he deliberately stopped charging at 72%. On the third leg, where he claimed the car ran out of energy, he stopped charging at 28%. Despite narrowly making each leg, he charged less and less each time. Why would anyone do that?

• The above helps explain a unique peculiarity at the end of the second leg of Broder’s trip. When he first reached our Milford, Connecticut Supercharger, having driven the car hard and after taking an unplanned detour through downtown Manhattan to give his brother a ride, the display said "0 miles remaining." Instead of plugging in the car, he drove in circles for over half a mile in a tiny, 100-space parking lot. When the Model S valiantly refused to die, he eventually plugged it in. On the later legs, it is clear Broder was determined not to be foiled again.

You can read the entire piece, with all the relevant graphs and charts here.

A paper, "Community Shared Solar: Diverse Approaches for a Common Goal," illustrates how three utilities are giving customers access to community solar in Florida, Colorado Springs and Tucson.  

Most community solar installations are run by utilities - about half are electric coops and the rest are split between investor-owned and municipal utilities.

The largest community solar garden in the US is in southwestern Colorado, where people can simply buy or lease as many solar panels as they want.

Tucson Electric Power: Bright Tucson Community Solar

Investor-owned Tucson Electric Power's solar garden allows customers to buy the electricity generated by solar panels in 150-kWh blocks. The rate is set at just $3 a month for each block and locked in for 20 years. 

Originally planned for 1.6 MW, the program has been so successful that it's grown to 4.13 MW and 777 subscribers.

Colorado Springs Utilities: Community Solar Gardens

During the pilot phase of this municipal-run program, 2 megawatts (MW) of solar are available for lease or purchase in exchange for a fixed credit of $0.09 cents per kilowatt-hour (kWh) over 20 years.

As of October, close to 300 residential customers had purchased over 500 panels.

Florida Keys Electric Coop: Simple Solar Program

Since 2008, members have been able to lease solar panels from a solar garden in the Keys. They get a credit on their utility bill for the power the panels generate over 25 years.

Because of the project, the coop got a $43,000 rebate from the state, which it's using to fund rebates for members' home energy efficiency upgrades. 

Read the three case studies:

Website: www.irecusa.org/2013/01/irec-releases-community-shared-solar-case-studies

Speaking at EWEA’s 2013 Annual Event in Vienna, Clover said onshore wind will achieve parity with other electricity-generating technologies feeding into the grid in Europe by 2015, followed by offshore in 2022/2023.

Clover’s opinion was backed by several high-level speakers at EWEA 2013 including Fatih Birol, Chief Economist at the International Energy Agency, who said that almost all onshore wind projects in Europe will be fully competitive with gas very soon.

Clover added another element to the cost of energy debate by saying that if carbon capture and storage (CCS) technology is added to thermal generation, then costs could rise by up to another 50%.

The Shams 1 facility, which covers 617 acres near Abu Dhabi, is scheduled to connect to the grid before the end of March.
Because it is a parabolic trough design, it requires less land than other CSP technologies.

768 parabolic trough collectors with 258,000 mirrors track the sun throughout the day and concentrate its energy on tubes that carry a heat transfer fluid, heating it to 400 degrees Celsius. The fluid passes through a natural gas-powered booster, where it is heated another 140 degrees Celsius to generate steam for a conventional steam turbine.

The plant is one of the flagship projects being developed by Masdar, an organization funded by the Mubadala Development Company, the strategic investment arm of the Abu Dhabi government. It is structured as a joint venture that also includes French oil company Total and Spain's Abengoa.

Masdar is also developing a desalination plant that runs on renewable energy. 

But the organization is probably best known for its ambitious, Masdar City plan to build the world's first zero carbon, zero waste city, slated for completion in 2025.

Abu Dhabi aims to source 7% of its energy from renewable sources by 2020, contributing to the recent spate of renewable energy investments by Middle East countries. Saudi Arabia is targeting 100% by 2032, and Qatar's short-term target is 1.8 gigawatts by 2014.

You can read the original version of this story here.

About 3.3% of all the vehicles sold in the US last year were hybrids and electric cars, up from less than 1% in 2004.

Mintel expects sales of hybrids and electric cars to rise 14% this year to 535,000, and by 2017, sales should reach 850,000, making up about 5% of the US market.

Worldwide, the Prius hit the big time, now the third top selling car in the world.

Besides high fuel costs, they attribute this growth to the variety of new models introduced to the market in 2012. There now 11 hybrid, plug-in hybrid and all-electric models on the market, quadruple the amount available just 12 months ago.

“New midsize hybrid models, such as the Toyota Prius v and Chevrolet Malibu Eco, have proven popular with consumers, in particular families, who want to buy green without sacrificing other features that fit their lifestyles," says Colin Bird, automotive analyst at Mintel.

"The segment will grow even further in 2013, with the launch of several new models, including the complete Ford Fusion Hybrid series, and the Honda Accord Hybrid, which will fulfill a wider variety of needs than conventional compact hybrids. Midsize plug-in hybrids will also enter the mainstream in 2013, with the introduction of the Ford Fusion Energi and the Honda Accord Plug-in, which will further improve mainstream acceptance of this, still, fairly novel powertrain segment.”

Issues regarding electric car charging are still the big roadblock. People are still concerned about how far they can drive on a charge, whether public charging stations are near enough when they need them, and how long it takes to charge.

In May, automakers agreed on a standard for charging systems that promises to cut charging times dramatically, and there are now thousands of public charging stations in the US, and that's just the beginning.

Price is also still a factor for electric cars, but hybrids are getting close to the same price as conventional vehicles.

"If you look at vehicles like the Camry hybrid, the sticker price is actually the same as the non-hybrid," he says. "Manufacturers have been able to lower and eliminate that extra price," Jesse Toprak, head of auto market analysis at TrueCar.com, told  Marketing Daily.

Although the Chevy Volt comes with a relatively high price tag, "When you look at the math, if you live in L.A., and you commute less than 20 miles one way, I don't understand why you wouldn't buy. You can lease for under $300 a month. If I spend $350 a month on gas, I would have essentially a free car," says Toprak.   

Nissan just dropped the price of its electric Leaf by a substantial $6000 or so. It will be interesting to see if that leads to a spike in sales.

Peoples' attitudes toward hybrids and electrics are at an all-time high, according to a University of Michigan Consumer Sentiment Study, and apparently what people look for when they buy a car is changing. 

"The 'live for today' mentality that prompted the rise of SUVs has disappeared," says Colin Bird, an automotive analyst with Mintel. "Consumers today demand products that promise protection and durability. There is a new mentality that emphasizes preparing for and protecting against potential future disasters, such as another oil shock or even just steadily rising prices at the pump."

You can read the original version of this article here.

"We have a lot of energy from the wind mills and sometimes it just gets lost because there isn't enough demand for the electricity," a government spokeswoman told Reuters. "This is a great solution."

Over the next five years, a doughnut-shaped island will be built out of sand about four kilometers off the coast. Just three kilometers in diameter, it will mostly be a huge seawater reservoir in the middle that's used to store and recover energy.

The system works by combining wind energy and hydroelectric power to pump seawater in and out of the reservoir. When demand is low, the pumps rely on excess wind energy to pump out the water. As demand increases, the water is let back in, which regenerates the electricity - like with a hydroelectric dam.

The island would also house an offshore substation to convert the voltage of offshore wind for the electric grid.

The project hasn't gotten the go-ahead yet and at least partially relies on strengthening transmission lines that would carry the energy to land.

Nuclear power accounted for 57% of Belgium's energy in 2011, but the country is seeking to reduce that dependence with the help of 2,300 megawatts (MW) in wind power generated by its North Sea wind farms.

Belgium hopes to shut down its two nuclear power plants by 2025, each of which produce 3,000 MW of electricity.

As of 2011, only 1,078 MW of wind power connected to Belgium's grid, but that could grow to more than 4,000 MW by 2020, says the European Wind Energy Association.

The original version of this article can be found here.

Two of Belgium’s seven nuclear reactors – Doel 3 and Tihange 2 – were switched off this summer, following the discovery of cracks, cutting 2,000 MW of electricity-generating capacity from Belgium’s electricity network. Even without this nuclear capacity online, the network survived this winter’s peak electricity demand of 13,166 MW on 17 January, L’Echo, a Belgian newspaper, reported.

Belgium’s electricity supply is guaranteed by a small amount of energy imports – including gas from the Netherlands and solar and wind from Germany – and a diverse energy portfolio, one in which renewable energy has a rising share, the paper said.

Belgium’s electricity portfolio is currently: 39% gas, 36% nuclear, 9% hydro, 4% wind, 4.5% coal, 1.5% oil, 6% solar.

Similar news emerged from Germany: Reuters reported that the country’s electricity supply is adequate this winter, despite the nuclear switch off which started in 2011 following the Fukushima nuclear accident.

Meanwhile, Greenpeace Germany has reported that more than half of the coal-power projects planned in 2006 have since been abandoned thanks to Germany’s energy policies which have seen a shift to renewable energy.

An article in French daily Le Monde noted that not only is coal one of the most polluting sources of energy, in particular lignite – of which there is plenty in Germany – but coal is facing economic problems. Coal-fired electricity plants are the oldest in Germany’s electricity portfolio and they cannot provide power on a flexible basis – it takes a long time to put out a coal fire.

Le Monde reported that the rising share of renewables in Germany’s energy mix requires more flexibility – when the sun shines and the wind blows more electricity is produced than needed meaning that renewable electricity is available at prices that threaten the profitability of coal. A lignite coal-powered station coming online in 2015 will make an overall loss over its 40 year lifetime, according to Christian von Hirsch-hausen, Research Director at the German Institute for economic research (DIW).  In a system with a rising share of renewables, lignite does not have any economic benefits, he added.

Even the EPA has demonized the region for having the nation's worst air for most of January because of an icy fog that blankets the valleys for long periods of time and traps microscopic soot.

And doctors are lining up, too – more than 100 of them, calling on lawmakers to lower highway speed limits, curb industrial activity and make mass transit free for the rest of the winter. Socialists!

There really should be a “sarcasm” key on a keyboard just in case some folks reading this aren't picking up on my sarcastic tone.

Unfortunately, sarcasm is often what I cling to when reporting on things like this. It makes it easier, because quite frankly, to see such a beautiful place like Salt Lake City choking on this kind of pollution is just depressing. And I need something to counter that. Thus, the sarcasm.

Nonetheless, Salt Lake City has a real problem right now.

According to doctors, microscopic soot which consists of combustion particles from tailpipe and other emissions, harms the lungs of even healthy people.

The president of Utah's Physicians for a Healthy Environment Brian Moench has actually called this a public health emergency, noting that for every pregnant woman breathing this stuff, this is a threat to her fetus through chromosome damage.

And Salt Lake City pediatrician Ellie Brownstein equated the smog to smoking, saying that instead of breathing clean air, you're breathing particles that make it harder for your lungs to function and get oxygen.

This ain't China, folks. This is right here in the U.S. - where we actually have regulations in place to avoid these types of problems. So the question is, will Utah take the appropriate steps to lower emissions in an effort to avoid these types of problems in the future? Or will lawmakers there continue to mock the necessity of common sense clean air laws. I'll guess we'll find out soon enough. In the meantime, if you live in Salt Lake City, doctors have advised that you stay indoors. Especially pregnant women, children and the elderly.

The LADWP has officially approved a 100 megawatt solar feed-in tariff (FIT) program, thereby making Los Angeles the largest in the nation to offer a FIT.

According to Solar Industry Magazine, the new program will allow customers, solar companies and other third parties to develop solar or other eligible renewable energy projects withing LADWP's service territory and sell the power to the LADWP at a set price for distribution on the city's power grid.

A Cheaper LEAF

Nissan announced yesterday that the new 2013 Nissan LEAF will be priced 18 percent lower than the 2012 model. That brings the MSRP down to $28,800 before the $7,500 federal tax credit and any additional state tax credits that may be available. In California, that actually brings the total cost down to $18,800 – or about the same price of a comparable internal combustion vehicle.

Of course, the question is, will this lower price increase sales?

It's hard to say for sure, but certainly a lower price will put the vehicle's purchase price within range of a few more car buyers that want the environmental and national security benefits that come with owning an electric vehicle, but until now simply have been unable to come up with the cash.

The 2013 model is also supposed to have an improved range, although the EPA numbers have not been released yet.

Here's more on the 2013 Nissan LEAF. . .

Check it out. . .

That's what lawyers said in a recent filing against the company that alleges the recent Avis acquisition of Zipcar shortchanges Zipcar shareholders.

I'm not an antitrust expert, so I have no idea if this filing has any teeth. Although in a recent Reuters poll, eight out of nine antitrust experts said they expect U.S. regulators to approve the deal.

Another complaint from some shareholders, as well as Zipcar customers is that Avis, in keeping with an outdated corporate approach that doesn't work with the type of folks who typically sign up for a service like Zipcar, could ruin the customer service and experience of the carsharing company.

I'd like to think the marketing folks over at Avis aren't stupid enough to screw with a formula that clearly works. But who knows? It wouldn't be the first time a behemoth corporation has fallen down such a rabbit hole. Remember Newscorp's tragic acquisition of Myspace? What a complete train wreck that was.

Of course, if Avis does go down the same path of incompetence, there are other carsharing startups out there that would be happy to fill the void. I guess we'll just have to wait and see.

Although declines are anticipated in Germany and Italy, those are expected to be offset by aggressive solar agendas elsewhere.

China is also moving forward to cut its idled wind farm capacity this year.

As you know, China's race to install wind turbines at such a rapid pace left many without connections to the grid due to lack of transmission and distribution. This, perhaps, was one of the worst cases of planning we've ever seen in this space.

However, China's State Grid Energy Research Institute claims that the rate of wind capacity still sitting idle could fall from over 20 percent to ten percent this year. It'll be interesting to see how this pans out over the course of the year.

The Big Green Apple

New York Governor Andrew Cuomo has proposed a $1 billion Green Bank in an effort to further develop the state's clean energy economy.

Cuomo said the “Green Bank” would help lower capital costs and bring cleaner energy solutions to scale. He went on to say. . .

“The NY Green Bank leverages private capital in a fashion that mitigates investment risk, catalyzes market activity and lowers borrowing costs, in turn bringing down the prices paid by consumers. Through the use of bonding, loans and various credit enhancements, a Green Bank is a fiscally practical option in a time of severe budget conditions. The NY Green Bank is another forward-looking way for our state to lead on energy policy and improve our residents' economic prospects and quality of life. The benefits of early innovation will be tremendous, as we see states around the nation moving quickly to catalyze their clean and renewable energy sectors.”

Kudos to Cuomo for manning up on this one!

Unless of course, you have a visual impairment and can't hear them coming while crossing the street.

Not surprisingly, the anti-EV brigade often uses this issue to attack electric vehicles. One blogger actually referred to electric cars as “death machines” because of the sound issue. To be honest, I had no idea this 22-year oil industry veteran was so concerned about the safety of visually impaired pedestrians. Not once had he discussed his advocacy for the blind in his seven-year-old blog about oil investing and the evils of those “damn treehuggers in Washington.”

Sarcasm aside, this is actually a very real issue, particularly because growth rates for electric vehicles will continue to soar for years to come. For those who think this is a problem now, wait until we have a few million of these things on the road.

So yes, addressing this issue early on is an absolute necessity. And it's why the National Highway Traffic Safety Administration (NHTSA) has proposed minimum sound standards for hybrid and electric vehicles.

According to the proposal, automakers would have to provide a sound that is detectable under a wide range of street noises and other ambient background sounds when the vehicle is traveling under 18 miles per hour. Apparently, at 18 miles per hour and above, vehicles make sufficient noise to allow pedestrians and bicyclists to detect them without an artificially-created sound. Automakers would be able to choose from a significant range of sounds. Personally, I'd love to hear some kind of futuristic spaceship noise maybe the sound of a rushing herd of elephants.

The NHTSA estimates that if the proposal is implemented, there would be 2,800 fewer pedestrian and cyclist injuries over the life of each model year of hybrid cars, trucks and vans and low speed vehicles, as compared to vehicles without sound.