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TESLA MOTORS SETS JUNE 22, 2012 AS THE INAUGURAL DAY FOR DELIVERY OF THE FIRST MODEL S SEDANS

The excitement is really starting to build as we count down the days to our first Model S deliveries. We are ahead of schedule and can’t wait to put our first Reservation Holders behind the wheel! We’ve been looking forward to this day for over three years, and the buzz around the office and the factory is escalating every day.

FIRST DELIVERIES SCHEDULED!

The Tesla Factory will begin customer deliveries of the 2012 Model S sedan on June 22nd!!! We have a great day planned for our employees to celebrate this incredible event and will be webcasting the actual delivery ceremony on teslamotors.com. My heart is racing just thinking about it!

I find myself spending more and more time at the factory lately as we prepare to deliver our first cars. As I walk alongside the assembly line, past the paint booths and through the Plastics Center, I think there are lots of interesting activities going on that you might like to see. I am amazed at how fast our robots can position major sections of the car and how quickly our massive presses can transform huge rolls of aluminum into doors, hoods and battery enclosures.

Tesla Motors Model S sedan for 2012

Several weeks ago I challenged the teams at Deer Creek and Fremont to find a way to share some of these cool activities with our friends and family around the world. I’m happy to say they have met the challenge. Starting with this post, we officially begin a new series called “Inside Tesla.” Every Tuesday from now through the start of Model S deliveries we are going to post a blog with a new video and a collection of images highlighting a segment of the Model S manufacturing process. Be on the lookout, we might also have a few surprises to share along the way :).

EVENTS AND STORE OPENINGS

We will continue to hold Model S events in other areas during the countdown to June 22nd. A few weeks ago we held our “Signature - Four Color” event at Tesla Fashion Island in Newport Beach, California. It was the second time we had four Model S Beta cars, in all four Signature colors, on display at a Tesla Retail Store. It was great! Many thanks to the 9,000 visitors who stopped by to see us throughout the weekend. Given the energy and excitement surrounding these types of events, we thought it would be fun to create an Event Gallery on teslamotors.com to share some of our favorite photos and videos. Check it out and let us know what you think!

Tesla Motors showroom in Fashion Island Mall in Newport Beach, CA.  Site of the Tesla Fashion Island Signature Weekend, May 4, 2012 (Click Image To Enlarge)

One of the most frequent comments I hear at events is

“You always do everything on the West Coast. How about doing something on the East Coast?”

So, East Coast here we come! This weekend we open our first “new design” store on the East Coast at The Westchester in White Plains, New York. We are bringing four Betas to the opening. This is the first time the “Signature - Four Color” event will be on the East Coast and the first time we’ve assembled four Model S Beta cars at a store opening. I’m looking forward to seeing many of you at the opening.

We haven’t forgotten about our fans north of the border. Last week we launched a five-city Model S Beta tour through Canada. After first stopping in Ottawa and Laval, Quebec, the Signature Red Model S Beta will take up temporary residence in Etobicoke, Ontario this week before moving on to Calgary and Vancouver in June. We hope to see you along the way!

MODEL S UPDATES

I’d like to share a few Model S updates that again underscore how personalized YOUR Model S can be. Model S can be adjusted exactly the way YOU like it.

Regen(erative) braking

One of the engineering advantages that make an EV better than any gas-powered car is regenerative braking. When you take your foot off the Model S accelerator, energy is fed back into the battery, which causes the car to slow down (a similar feel to downshifting with a manual transmission). One of our Firmware engineers wrote a great blog about this technology shortly after the release of our Tesla Roadster. Over the past few years, we have learned that not everyone likes the same amount of Regen. Some owners like a little more resistance, some like a little less. Having less Regen means you will likely get less range, but some people still prefer the feel of their car with less Regen. We listened to your requests and I’m pleased to announce that Model S Regen will be adjustable. You can adjust Regen to suit your driving style.

Adjustable Steering

One of the many benefits of driving a Tesla is that almost everything can be adjusted. Even the steering on Model S is adjustable, which allows you to change the resistance required to turn the steering wheel. You’ll be able to choose between Comfort, Standard, and Sport steering.

Personalize your Suspension

As you can see, we’re developing a theme here – personalization. At Tesla, we are thinking differently about the way you connect with your car. Every Tesla customer is different, so we thought everyone should have the option to set his or her preference for suspension and ride height. With Active Air Suspension, a car set a little lower to the ground will reduce aero drag. You may choose to raise the suspension a few inches when faced with pesky speed bumps or very high when loading up the Frunk with groceries and supplies for a summer BBQ.

Range Testing

I’m thrilled to report that range & efficiency testing has been completed on our 85 kWh       Model S. We’ve exceeded expectations. Elon and JB just posted a blog explaining recent changes to EPA testing procedures and how they relate to Model S. It’s definitely worth checking out. I think it answers a lot of questions about EV range and efficiency.

These are very exciting times at Tesla and we’re looking forward to sharing them with each and every one of you as we countdown to June 22nd. We can’t wait to make every new owner smile as they jump behind the wheel of the most personalized and fun driving experience they’ve ever had. Be sure to check out “Inside Tesla” every Tuesday and don’t forget to follow us on Facebook and Twitter for the latest updates and news. See you this weekend, East Coast.

Let the countdown begin!!!

COMMENTARY:  Elon Musk is really on a roll.  He just succesfully launched SpaceX's Faclon 9 rocket and docked the Dragon spacecraft with the Internatinoal Space Station.   Now he is getting ready to deliver the first Tesla Motors Model S sedans on June 22, 2012.   Halleluhaj!

The Model S sedan is an absolutely the most beautiful, luxurous and technologically advanced all-electric sedan available today.  Elon Musk has done it again.

Courtesy of a blog post dated May 22, 2012 by George Blankenship, Vice President, Worldwide Sales and Ownership Experience appearing in the Tesla Enthusiasts Blog

REDSHIFT: AN ALL-ELECTRIC MOTORCYCLE THAT BREAKS THE RULES (AND SPEED LIMITS)

HOW DO YOU SELL RIDERS ON ELECTRIC MOTORCYCLES? JUST SELL RIDERS ON A FASTER MOTORCYCLE.

When most consumers think “electric car,” they’ve been conditioned to think green, to think “Prius” and “limited range” and “braking efficiency.” But electric’s greatest advantage isn’t necessary an environmental one; it’s that an electric motor isn’t limited by the physics of combustion. Rather, just like an electric screwdriver, an electric car can go full throttle, instantly, without switching gears. Smart designers can take advantage of that.   Marc Fenigstein, CEO of motorcycle startup BRD says. 

“We didn’t set out to build a bike for the masses.  We set out to build a bike for a very specific format where we knew electric was the best option.”

 

BRD developed a groundbreaking electric motocross bike called the RedShift. Fenigstein tells Co.Design.

“It looks familiar because in function it is the same as gas motocross bikes.  It looks different because it doesn’t need an exhaust or gas tank anymore.”

Some may see the bike as green. Others may recognize its economic savings--despite the relatively high $15,000 price tag--as an electric bike pays for itself by sidestepping oil changes and constant engine rebuilds. But instead of using these features as a marketing crutch, BRD designed and sold for speed. 

Fenigstein writes. 

“The major breakthrough is simply the approach.  BRD doesn’t assume that anyone needs electric. Gas bikes kick ass, and none of us would trade our gas bikes for anything that is slower, uglier, or less fun. We set out to build a bike that was prettier, faster, and more fun than what was in our garages.”

BRD RedShift all-electric motorcycle (Click Images To Enlarge)

By using gas performance as their design standard rather than some arbitrary engineering metric, BRD created a bike that was 100lbs (or 30%) lighter than competing electrics in their class and a bike that one-ups gas competition by putting out peak horsepower at will and requiring no shifting. It’s also just a beautiful vehicle to look at, with a surprisingly unique, almost anime color scheme in a field filled with eye-punishing chroma.

Fenigstein writes. 

“The motorcycle market has very strong brand associations for the primary and secondary colors (Red = Honda and Ducati, Green = Kawasaki, Yellow = Yamaha and Suzuki, Blue = Yamaha, Orange = KTM) so we had to find something off the beaten path.  We drew from some of our favorite racing liveries and played around until we found something that stood out for its subtlety, rather than competing for ‘OMG LOOK AT ME AAAAAAHHHH.’"

 

I’m not sure that you can call anything about the RedShift subtle, but it is a gorgeous bike that’s hiding at least one awesome feature that your eyes can’t see: It sounds like a Star Wars podracer in action.

COMMENTARY:   Now that's what I call a super-cool all-electric motorcycle for the masses.

About BRD

"BRD is a team of riders, racers, designers, engineers, makers, builders, thinkers, mechanics and troublemakers. We build motorcycles because it's what we were born to do."

"We love motorcycles. The best ones make you tingle when you look at them, giggle when you ride them, and scare you just a little bit (i.e. score a 90 or above on the Tingle-Giggle-Scream Index). We love going fast. And we love finding new ways and new places to go fast. Our goal from the beginning was to create motos that are easier to ride fast than anything else out there. We build electric bikes because we are in love with instant throttle response and flat, endless torque. Because we want the next bike we purchase, gas or electric, to be faster than our last one."

"Though it didn't yet have a name, BRD began in about 2007 when two riding buddies, Derek Dorresteyn (CTO and co-founder) and Jeff Sand (CDO and co-founder), who happened to have an unbelievable amount of fabrication, engineering and design experience and expertise between the two of them, fell in love with the idea of the smooth, perfectly responsive torque curve of an electric motor and started kicking around the possibilities for building their own electric motorcycle... a motorcycle that could be faster and more rideable than their gas bikes."

Management Team

• Derek Dorresteyn, CTO and Co-Founder
• Jeff Sand, CDO and Co-Founder
• Marc Fenigstein, CEO and Co-Founder

BRD Bike Models

The RedShift MX is barely legal - a race bike with lights. Designed for MX2/Lites class racing, the MX light and quick, without the lost seconds from hunting through gears trying to find torque. With 200 hour maintenance intervals, you'll also spend more time riding and less time wrenching. 

Specifications

Power (hp):  25/40 hp *

Battery capacity (kWh):  5.2 kWh

Est. range:  2 hours **

Top speed:  80 mph ***

Street weight (lbs):  260 lbs +

Race weight (lbs):  250 lbs ++

Front suspension:  12" fully-adjustable

Rear suspension:  12" fully-adjustable

Front wheel:  21" spoked

Rear wheel:  19" spoked

Wheelbase:  57.3

Seat height (in):   37 ins

* Continuous/Peak (10s)

** Based on recreational trail or mixed road use

*** Redline based on standard gearing;

+ With lighting and switchgear

++ With lighting and switchgear removed

Estimated retail price:  $14,995

The RedShift SM is a race sumo without the oil changes. It is designed for everything a city can throw at a bike. Because of its off-road roots, it may be pretty but it's not precious. Feel free to beat on it, but remember: just because it is fully capable of launching stair gaps and airing out the crests of San Francisco hills does not mean we condone that use or behavior in any way.

Specifications

Power (hp):  25/40 hp *

Battery capacity (kWh):  5.2 kWh

Est. range:  50 miles **

Top speed:  85 mph ***

Street weight (lbs):  265 lbs +

Race weight (lbs):  255 lbs ++

Front suspension:  12" fully-adjustable

Rear suspension:  12" fully-adjustable

Front wheel:  17" spoked

Rear wheel:  17" spoked

Wheelbase:  56.6

Seat height (in):   35.5 ins

* Continuous/Peak (10s)

** Based on recreational trail or mixed road use

*** Redline based on standard gearing;

+ With lighting and switchgear

++ With lighting and switchgear removed

Estimated retail price:  $15,495

BRD is now taking advance orders for delivery in 2013.

Courtesy of an article dated April 25, 2012 appearing in Fast Company Design 

ALTAEROS ENERGIES' HIGH ALTITUDE AIRBORNE WIND TURBINE TEST SHOWS COMMERCIAL POTENTIAL

Altaeros Energies employs aerospace technologies to lift a small wind turbine to 1,000 feet off the ground where the wind is stronger. The power produced by the airborne wind turbine (AWT) is sent to the ground via conductors with the unit tethered to the earth.  

The MIT-, Harvard-, and Air Force-trained team at Altaeros just completed a test of a power-producing prototype which actually works, and lifted a wind turbine 350 feet off the ground to generate double the power at high altitude than at typical tower height. The test in the video was completely automated, according to co-founder, Adam Rein -- unpiloted and able to "lift, generate, and land without any active controls." These tests took place in the middle of winter in northern Maine. 

The Air Force still uses tethered helium inflatable technology -- called aerostats, the industrial cousins of blimps -- on project construction. So, the inflatable technology is not entirely new.

Here's the video:

 

First public video of the 35-foot-wide Airborne Wind Turbine. The scale prototype harnessed strong winds up to 350 feet high to produce over twice the power of traditional wind turbines.

Rein notes that the company uses an "off-the-shelf" 2.5-kilowatt, 3.7-meter, 3-blade wind turbine merged with helium inflatables that have lifted radar systems for decades. The unit is rated to go to about 1,000 feet in the boundary layer. The tallest terrestrial wind turbine is 350 feet high.

Altaeros looks to deploy the units in off-grid and hard to reach spots such as military bases, remote villages, oil and gas sites, eventually even off-shore applications. Power in those areas is typically diesel gensets with an expensive price tag of getting the diesel delivered and a total cost of $0.50 to $0.75 per kilowatt-hour. Altaeros claims it cost will be "a third of that."

Lending itself to these remote sites, the unit AWT is "really easy and cheap to set up," according to Rein, and "the whole system packs down to smaller than a compact car."
 
Regulatory bodies and the powers that be are beginning to recognize the existence of this new technology. The FAA has put out draft regulations for high-altitude tethered wind turbines. Rein claims the AWT design can overcome some of the challenges of traditional types wind turbines -- making them quieter with less bird and radar impacts. Garrad Hassan, a leading wind consultancy, has taken a look at the technology as well.

However, technical, regulatory, financing, and environmental risks remain for this alluring technology.

Altaeros is funded by private seed investors, the USDA, and the CEC. Other players in this field include Makani Power, SkyWind Power, Magenn, Ampyx, KiteGen -- also exploring this part of the atmosphere.

Altaeros Energies Airborne Wind Turbine prototype test 250-feet in the air (Click Image To Enlarge)

COMMENTARY:   Altaeros Energies airborne wind turbines are a neat idea, but the blimps will have to be scaled to lift larger wind turbines with larger electrical generating capacity.  2.5 kiowatts is not a lot of wattage (equivalent to what a small house would consume under normal circumstances).    The fact that Altaeros airborne wind turbines completely mobile and can go anywhere power is needed, without the need to erect or build wind turbine towers, is a huge plus.   

In a blog post dated September 30, 2010, I reported on the research being conducted to develop viable airborne wind turbines.  One of those companies was Altaeros Energies.  It looks like Altaeros has scaled its donut-shaped blimp and actually got their technology to work and generate electricity.   

Courtesy of an article dated April 20, 2012 appearing in GreenTechMedia

DOOM & GLOOM HITS GREEN ENERGY AS FUNDING COLLAPSES IN Q1 2012, BUT U.S. RECLAIMS CLEAN ENERGY FUNDING LEAD FROM CHINA IN 2011

Bloomberg New Energy Finance clocks a first-quarter drop in clean energy investment to $27 billion, the worst since Q1 2009.

Global green energy investment stumbled badly in the first quarter of 2012, falling to levels not seen since the financial crisis of 2009. Looks like expiring U.S. incentives, European economic crisis, well-publicized solar bankruptcies and the threat of more high-profile green tech companies going under has taken its toll.  

Bloomberg New Energy Finance reported Thursday (PDF) that global clean energy investment fell to a mere $27 billion in the first three months of 2012, down 28 percent from the previous quarter and down 22 percent from the first quarter of 2011. It’s the worst showing since the first quarter of 2009, when the research firm counted $20 billion in venture capital, private equity, public markets and asset finance.

Broken out by sector, the first quarter of 2012 saw $24.2 billion in utility-scale renewable energy project asset finance, down 30 percent from the fourth quarter of 2011 and down 13 percent from the same quarter last year.

Bloomberg New Energy Finance CEO Michael Liebreich pointed to some key factors leading up to the decline. A combination of faltering incentives and ongoing financial uncertainty in Europe, and the expiration of stimulus supports and an uncertain political climate in the United States, has sapped investor confidence, he said.

This year has seen Germany and other key European countries lower their feed-in tariffs for solar power, as well as a string of bankruptcies of German solar companies unable to compete against cheap Chinese solar panel manufacturers. In the United States, a stimulus program that allowed solar power project developers to claim cash grants in lieu of investment tax credits expired, and an attempt to revive it failed last month.

There’s little to show that things will be getting much better over the next 12 months, Liebreich added. Wind power’s production tax credits are set to expire at the end of this year, for example. Renewal is never certain, but the general pall that’s been cast over federal support for green technology -- summed up in the conservative anger and accusations around the bankruptcy of U.S. loan guarantee-backed solar startup Solyndra -- makes it particularly hard to predict this year.

IPO activity took a particularly poor turn, with only $601 million raised on the public markets in the quarter. The two biggest IPOs of the quarter were the $74.8 million debut of Ceres, maker of genetically-modified energy crops, and the $68.8 million public launch of biodiesel maker Renewable Energy Group.

In the meantime, we’ve seen a host of companies delay or cancel their IPO plans amidst ongoing market turmoil and falling prices for publicly listed green technology companies. While solar microinverter maker Enphase raised $54 million in its IPO last week, it also reduced its initial share price by nearly half beforehand. And this morning, massive solar thermal power startup BrightSource suspended its IPO plans after a year of waiting for market conditions to improve.

Venture capital and private equity investment in “specialist clean energy companies” stood at $1.9 billion in the first quarter, down only 2 percent from the previous quarter and up 12 percent from the first quarter of 2011, Bloomberg New Energy Finance reported. Whether this indicates strength in the sector, or companies going back to private investors to manage their way through a poor climate for public market financing, is less clear, however.

For example, one of the first quarter’s biggest raises was the $263 million for beleaguered plug-in hybrid automaker Fisker Automotive, which has been struggling with production delays, recalls and the apparent freezing of its $529 million Department of Energy loan guarantee. In fact, the company has since gone back to investors for another $130 million, which may be aimed at meeting the financial benchmarks needed to restart access to that loan.

Another big first-quarter investment was solar installer and financier SolarCity’s $81 million from Silver Lake Kraftwerk, marking the first big investment for the fund started by billionaire George Soros and bigwigs from the VC and DOE greentech world. SolarCity is rumored to be seeking an IPO, but may feel safer sticking to private investors for the time being.

COMMENTARY:  

End To Clean Energy Federal Tax Incentives and Debt Problems in the Eurozone Hit Clean Energy Investments Hard

Michael Liebreich, BNEF chief executive, said the performance represented the lowest quarterly level of clean energy investment in several years.  He said in a statement.

"A $27bn quarterly figure is not a disaster, but it is the weakest since the dismal $20bn seen in the first quarter of 2009, when the financial crisis was at its worst.  The weak Q1 2012 number reflects the destabilising uncertainty over future clean energy support in both the European Union (driven by the financial crisis) and the US (driven by the expiry of stimulus programmes and the electoral cycle)."

He warned that after seeing clean energy investment reach record levels during 2011, the sector could face a relatively tough year, despite continued improvements in the cost and effectiveness of renewable energy systems.  He said.  

"There is no sign of a rapid turnaround in either of these regions in the next 12 months. Clean energy technologies, particularly solar photovoltaics and onshore wind, continue to fall in price and approach competitiveness with fossil-fuel power, but politicians in many countries appear to be ducking the decisions that would ensure the sector maintains its growth trajectory. We are seeing growth in some of the non-core markets around the world, but they will have a tough job replacing weakening demand in the developed world."

The clean tech venture capital market provided the one bright spot for the sector, with the report confirming that venture capital and private equity investment during the quarter rose six per cent year on year to $1.9bn.  However, Liebreich warned that the wider clean energy sector could see investment levels stall this year, despite strong long-term prospects for the industry.  He said.  

"The outlook for investment in the remainder of the year remains difficult. The rapidly improving cost-competitiveness of renewable energy technologies is stimulating activity, particularly in developing countries. However, it is becoming harder to see the sector worldwide beating last year's record, unless the storm-clouds lift in Europe and US Congress stops bickering and sends some clear signals about the importance of new energy technologies. Meanwhile, continuing improvements in the sector's economics mean companies that survive these next few years, whether on the industry's supply or demand side, will be well positioned for the next growth phase."

U. S. Takes Lead Over China In Green Energy Investment in 2011

In spite of the huge drop in U.S. clean energy investment during the first quarter 2012, the United States has regained the lead in the clean energy race during 2011, investing $48 billion last year to surpass China, which held the world's top spending spot since 2009, said a study Wednesday.

The US surge in private investment was a 42 percent increase over 2010 and saw Washington maintain its lead worldwide in both venture capital and research and development cash, said the Pew Charitable Trusts annual report on clean energy.

However, the US boom was largely driven by expiring tax incentives, highlighting "a persistent phenomenon in which the country fails to deploy into the marketplace the clean energy innovations it creates in the laboratory." 

China, which fell to second, invested $45.5 billion in 2011, a one percent increase over 2010, but maintained its global lead in wind energy investment and in solar manufacturing, said the report.

Experts say a key difference between the U.S. and China is in how they attract investment -- China by having solid green energy policies that reassure investors and the United States by offering tax breaks for investment.

Phyllis Cuttino, director of Pew's Clean Energy Program said.

"China has been able to fuel its growth by having very consistent and long-term policies in place that really tell investors there is an opportunity for them to make a profit. The United States has no renewable energy target but they have decided to try and incentivize clean energy investment through a variety of tax incentives, tax credits, tax subsidies, loan guarantees." 

Some of those programs were instituted under the George W. Bush administration and some under President Barack Obama, she said.

A Review of The U.S. Solar Industry During 2011

It seems that only yesterday that the U.S. solar industry was experiencing incredible growth when we compared key indicators for Q1 2011 versus Q1 2010:

A Review of The U.S. Wind Energy Industry 2011

In a blog post dated January 29, 2011, I reported that wind energy installations in 2011 totaled 6,810 megawatts, an increase of 31% over the 2010 total.  Q4 2011 wind energy installations were 3,444 megawatts, beating the 2010 Q4 total of 3,296 megawatts.  And there hasn’t been so much wind capacity under construction since the middle two quarters of 2008, just before the recession hit.  This time, however, it is not ambition but desperation that is driving growth.

AWEA CEO Denise Bode observed why wind energy installations had such a great 2011.

“This tremendous activity is being driven by the federal Production Tax Credit (PTC), which leveraged an average of more than $16 billion a year in private investment over the last several years and supported tens of thousands of manufacturing jobs.” 

The wind industry’s PTC of 2.2 cents per kilowatt-hour tax credit expired on December 31, 2012.   On February 17, 2012, Congress voted and refused to extend the PTC credits for 2012. As a result of the failure to extend PTC's, the wind energy industry is predicting massive layoffs and stalled or abandoned wind projects.

Just recently in a blog post dated April 12, 2012, BrightSource Energy, which had planned an IPO in May 2012, cancelled it after only three days, citing volatility in the stock markets, but it makes you wonder if the failure to extend federal tax incentives and PTC credits will impact clean energy IPO's during 2012.  I have a feeling it definitely will.

What a difference a year makes.  Once the clean energy investment tax credits and PTC credits ended, investors no longer saw green energy as a good investment, and they appeared to have abandoned clean energy in mass.  Things look very gloomy for  clean energy investments throughout the remainder of 2012.   

Courtesy of an article dated April 12, 2012 appearing in GreenTechMedia and an article dated April 12, 2012 appearing in Phys.Org

BRIGHTSOURCE ENERGY, THE MASSIVE-SCALE CSP STARTUP, ANNOUNCES AN IPO, THEN WITHDRAWS IT THREE DAYS LATER

The solar power company BrightSource Energy withdrew its initial public offering late on Wednesday, citing tough market conditions.

BrightSource Energy had been expected to raise raise up to $182.5 million in its initial public offering.  The Oakland-based solar firm had planned to issue 7.9 million shares, at a price of $21 to $23 per share, according to an updated SEC filing. 

For the year ended December 2011, BrightSource generated $159.10 million in revenues, and lost $110 million. Competitors in the CSP with storage market include SolarReserve and Abengoa.

BrightSource Energy is in the massive-scale concentrating solar power (CSP) business, a technology which addresses a common refrain about the limitations of photovoltaic solar power -- that the technology only works when the sun is shining. CSP boasts the ability to store thermal energy long after the sun goes down. This ability improves CSP's capacity factor and dispatchability, and has the potential to improve CSP's levelized cost of energy (LCOE).

BrightSource Energy's power tower solar thermal system uses a field of software-controlled mirrors called heliostats to reflect the sun’s energy onto a boiler atop a tower to produce high-temperature and high-pressure steam. The steam is used to turn a conventional steam turbine to produce electricity. When paired with storage, the steam is directed to a heat exchanger, where molten salts are further heated to achieve a higher temperature, storing the heat energy for future use.

BrightSource Energy's Ivanpah Project CSP array farm in the Mojave Desert (Click Image To Enlarge) 

BrightSource Energy has won more than $500 million in VC funding from VantagePoint Venture Partners, DBL Ventures, DFJ, Alstom, et al. BrightSource has also received project funding from NRG and Google, as well as $1.6 billion in DOE loan guarantees for the Ivanpah project to help reduce the financing costs of its solar power projects. BrightSource has a number of contracts to sell electricity to large utilities, including Pacific Gas and Electric, according to a company statement.

When completed in 2013, the Mojave Desert-based Ivanpah Solar Electric Generating System will send approximately 2,600 megawatts of power to the grid, doubling the amount of solar thermal power produced in the U.S and generating enough electricity to power 140,000 California homes when operating at full capacity.

CSP needs every advantage it can muster, given the plunging cost of PV and the exploding scale of the global photovoltaic market. In fact, a number of planned CSP plants have switched to PV because of the challenging economics of CSP, as well as financiers' familiarity with PV.

GTM Research has looked at the LCOE economics of CSP in a recent report, Concentrating Solar Power 2011: Technology, Costs and Markets. GTM calculates that CSP towers with storage can earn higher revenue and profits per kilowatt-hour than PV. The high-level finding is that power tower technology is cost-competitive with PV on a levelized cost basis, and that power tower with storage could represent the lowest cost per kWh solar option in 2016 and beyond.

BrightSource Energy has signed 13 power purchase agreements (PPAs) to deliver approximately 2.4 gigawatts of installed capacity to two of the largest electric utilities in the U.S.: PG&E and Southern California Edison. 

According to the S-1, BSE has a development site portfolio of approximately 90,000 acres under its control in California and the U.S. Southwest, with the potential to accommodate approximately 9 gigawatts of installed capacity. Two California sites are currently in advanced development: Rio Mesa Solar (6,600 acres) and Hidden Hills Ranch (10,000 acres). 

The news of the BrightSource's IPO cancellation comes at a tough time for renewable energy companies.

The United States and European countries have pulled back on financial support for wind, solar and other alternative energy sources as they look to reduce government debt.

Global clean energy investment fell to $27 billion in the first three months of 2012, a 22 percent decline from the period a year earlier, according to statistics from the market analysis firm Bloomberg New Energy Finance.

So-called green energy companies raised a mere $601 million from the public markets worldwide in the first quarter, an 87 percent drop from the period a year earlier.

BrightSource’s chief executive, John M. Woolard, said in a statement. 

“While we received significant interest from potential investors, the continued market and economic volatility are not optimal conditions for an I.P.O.  As a company, we’ve consistently made decisions in the best interest of our shareholders, employees and customers, and we will continue to do so.”

The company, based in Oakland, Calif., has received backing from a number of prominent investors, including Google.

BrightSource won a $1.6 billion loan guarantee last year from the United States Energy Department to help reduce the financing costs of its solar power projects. BrightSource has a number of contracts to sell electricity to large utilities, including Pacific Gas and Electric, according to a company statement.

COMMENTARY:   I have been covering BrightSource Energy ever since they started getting big headlines on May 20, 2010,  June 24, 2010 and on April 12, 2011 when they announced a $168 million investment from Google.  

I have always found the BrightSource Energy's CSP technology very interesting, but they have yet to generate a profit from the huge Ivanpah since they announced that $1.6 billion loan guarantee in early 2011.

I was about to announce their plans for an IPO in the spring 2011, only to learn that they had cancelled that IPO only three days later due to volatility in the stock market.  Boy, things happen fast.  Sort of reminds one of what Zynga did when they announced their IPO in July 2011, only to cancel that IPO, then reannounce it for December 2011.    

Courtesy of an article dated April 12, 2012 appearing in New York Times DealBook and an article dated April 9, 2012 appearing in GreenTechMedia

POWERFUL GREENPEACE ADS PORTRAY THE GLOBAL ENVIRONMENTAL ORGANIZATION INTO A DAVID VERSUS HUGE POLLUTION MONSTERS

If a fast food chain once owned in part by McDonald’s can make us cry, then maybe it shouldn’t be surprising that a new campaign by Greenpeace--a well-intentioned group that can come off as both abrasive and extremist--can simply kick us in the gut with imagery.

Greenpeace ads versus coal and nuclear power generating plants (Click Image To Enlarge)

Greenpeace ad versus the whale fishing industry

Because when I look at these new ads by DraftFCB Switzerland, I don’t think about the mixed environmental implications of, say, Greenpeace rejecting all nuclear energy technology. In the gothic-industrial ink line drawings, I can only consider what Man has done wrong: built an infrastructure that is bigger and more devastating than he can control. And at least for a moment, I can’t find a single reason to disagree with their worldview.

Greenpeace ad versus the oil industry's offshore oil drilling (Click Image To Enlarge)

Greenpeace ad versus companies involved in de-forestation or destruction of forests

But why are they so powerful? I can’t help but wonder if Greenpeace’s messaging was more honest than they intended, conveying that in the face of the global machine, the environmental movement finds itself hopelessly outgunned. We see, not a scrappy underdog fight, but an unavoidable slaughter in the making.

David never looked so small.

COMMENTARY:   Greenpeace is a global environmental organization, consisting of Greenpeace International (Stichting Greenpeace Council) in Amsterdam, and 27 national and regional offices around the world, providing a presence in 41 countries.

2011 was the year the bottom shook the top and "The Protestor" was named Time Magazine person of the year. The faces in our Year in Pictures pay tribute to our contribution and to the benefit of standing up and taking action.  Check out Greenpeace 2011 in pictures in the video below:

 

These national and regional offices are largely autonomous in carrying out jointly agreed global campaign strategies within the local context they operate in, and in seeking the necessary financial support from donors to fund this work. National and regional offices support a network of volunteer-run local groups. Local groups participate in campaigns in their area, and mobilise for larger protests and activities elsewhere. Millions of supporters who are not organised into local groups support Greenpeace by making financial donations and participating in campaigns as citizens and consumers.

National and Regional Offices

Greenpeace is present in the following countries and regions, as of March 2007:

Argentina, Australia-Pacific region (Australia, Fiji, Papua New-Guinea, Solomon Islands),Belgium, Brazil, Canada, Chile, China, Czech Republic, France, Germany, Greenpeace Nordic (Denmark, Finland, Norway, Sweden), Greece, Greenpeace Central and Eastern Europe (Austria, Hungary, Slovak Republic, Poland, Romania, Bulgaria, Slovenia, Serbia, Montenegro and Bosnia (no permanent campaign presence in the latter five states)) India, Italy, Japan, Luxembourg, Greenpeace Mediterranean (Israel, Cyprus, Lebanon, Malta, Tunisia, Turkey), Mexico, the Netherlands, Greenpeace Aotearoa New Zealand (New Zealand), Russia, South -East Asia (Philippines, Indonesia, Thailand), Spain, Switzerland, United Kingdom, and the United States.

Priorities and Campaigns

Greenpeace runs campaigns and projects which fit into the "Issues" (as campaign areas are called within Greenpeace) categories below. Besides exposing problems such as over-fishing or threats linked to nuclear energy such as harmful radiation and proliferation, Greenpeace campaigns for alternative solutions such as marine reserves and renewable energy.

The organisation currently addresses many environmental issues with a primary focus on efforts to stop global warming and the preservation of the world's oceans and ancient forests. In addition to conventional environmental organisation methods, such as lobbying businesses and politicians, and participating in international conferences, Greenpeace uses nonviolent direct action in many of its campaigns.

Greenpeace uses direct action to attract attention to particular environmental problems. For example, activists place themselves between the whaler's harpoon and their prey, or invade nuclear facilities dressed as barrels of radioactive waste. Other initiatives include the development of a fuel-efficient car, the SmILE.

Current Priorities

Below is a list of Greenpeace's current priorities, as of March 2007:

• Stopping catastrophic climate change (global warming).
• Preserving the oceans (including stopping whaling and bottom trawling). 
• Saving ancient forests. 
• Peace and nuclear disarmament. 
• Promoting sustainable agriculture (and opposing GE). 
• Eliminating toxic chemicals (including from E-waste), many of which are carcinogens. 

You have to applaud the courage and worldwide activities of Greenpeace. Here they are fighting off Japanese whaling ships in the Arctic ocean.  

 

Some people don't agree with the aggressiveness and tactics of Greenpeace ships, including trying to get those Japanese whaling ships away from the whales and in the above video, you saw the consequences. Unfortunately, the Japanese whaling ships carry more fuel or are re-fueled by tankers, so Greenpeace had to leave to be refueled.

 

I think it's time that Japan and other countries stop killing the whales. The whales don't harm anyone and they are beautiful and majestic mammals of the sea.   Stay away from the whales!!   See, I got myself all worked up.

Courtesy of an article dated March 5, 2012 appearing in Fast Company Design

SUNPOWER RULES COMMERCIAL SOLAR PANEL INSTALLATION MARKET IN 2011, SOLAR CITY COMES IN AT NO 2

SolarCity quietly steals market share, but SunPower still leads.

SunPower kept its spot as the top commercial solar installer in the United States last year, but saw SolarCity increase its own share to nip at its lead. It's a rivalry worthy of a lawsuit over allegedly stolen customer data.

SunPower is the producer of the most efficient solar panels on the planet, producing solar panels that achieve a efficiency of 19.3% (Click Image To Enlarge)

Over the course of 2010 and 2011, more than 1.1 gigawatts of commercial solar was installed in the U.S. Nearly 800 megawatts of that capacity came on-line in 2011, according to GTM Research. At the end of 2010, SunPower was far and away the largest commercial installer on the block, with an estimated 10.7 percent of national market share.

One year later, SunPower's share has slipped to 9 percent, while Solar City's has increased to 6 percent.

Click Image To Enlarge

SunPower had a massive fourth quarter, installing nearly 20 megawatts of commercial projects in Arizona, California and New Jersey. This is nearly as much as the company installed in those states in all of 2010.  Prominent in both the utility and commercial market segments, SunPower sticks to its core competency, which is installing large systems. In 2011, the average system size installed by the company was nearly 1.4 megawatts. In California, where the maximum system size allowed under the CSI program is 1 megawatt, SunPower’s average installation was 965 kilowatts. Go big or go home seems to be the commercial development team’s motto. 

While SunPower focuses on larger systems, SolarCity has been quietly building its commercial business by focusing on smaller jobs. In California in 2010, SolarCity barely cracked the top-10 commercial developers with just 1.8 percent market share. Though the firm installed 44 systems under the CSI program, the average system size was just 36 kilowatts. Compare this to SPG Solar, the number one commercial installer in California in 2010, which averaged 650kW per installation. After honing its practices in the small-commercial market, and possibly with some help from strategic acquisitions, SolarCity has begun to push into the traditional commercial players’ arena. In Q4, SolarCity’s average commercial system size was approximately 250 kilowatts, a significant step up from the previous year.

Click Image To Enlarge

Rounding out the top-five commercial installers are Chevron Energy Solutions, Rosendin Electric and Vanguard Energy Partners. Chevron is well known in the U.S. solar industry, but the latter two may leave some readers, and even solar-industry veterans, scratching their heads. Rosendin has been involved in solar for some time, but generally as an EPC partner. In the last year, however, the firm has emerged as a legitimate developer both in the U.S. and Ontario. According to the company’s website, Rosendin has 100 megawatts in construction and more than 500 megawatts in development. Vanguard has existed as a pure-play developer for few years now, but it was not until 2011 that the company started to emerge a leader in the East Coast market. In Q4 alone, Vanguard installed 8.2 megawatts in New Jersey, second only to SunPower’s 11.1 megawatts' worth of projects. The company is also actively installing throughout New England and New York, including a project that will be the world’s highest elevated PV array on Deutsche Bank’s NYC headquarters.

One question many readers may have is, where are the traditional leaders SunEdison, Borrego, SPG, REC, and the like? They’re still in the top 20, but have either suffered from increased competition from new entrants like Rosendin or altered their business strategies. In the past year, many construction and large-electrical contracting firms, such as Swinerton Builders and Stellar Energy, have moved into commercial development. Most of these firms have previously acted as an EPC partner on large installations, but nothing more. By leveraging existing financial partnerships or substantial balance sheets, moving into project development was the next logical step to maximize revenue in the solar space and to help make up for a downturn in new construction.  

As in the residential market, the commercial development space is seeing a fair bit of consolidation. Combined, the top-five firms held 25 percent of the market in 2011; the top 20 accounted for 53 percent. The latter figure is up from 45 percent in 2010. Moving forward, the top installers will only continue to grab more market share. With every passing quarter, project development practices are honed, helping to bring down soft costs. Investors, both traditional banking institutions and large corporations like Google, are becoming more comfortable with the well-known development firms, thus increasing their access to capital, even after the expiration of the 1603 Treasury Grant. Finally, proven success developing and installing projects allows these top firms to negotiate the best possible component prices from Tier-1 providers, which are aggressively pursuing supply agreements with top development firms.

COMMENTARY:   In a blog post dated October 28, 2011, I commented on Project SolarStrong is a multi-year project worth more than $1 billion under which developer SolarCity will install, own, and operate rooftop solar systems on up to 160,000 privatized military residences on as many as 124 military bases across 33 states. The project would double the current number of residential rooftop solar systems in the U.S.  This is definitely going to push Solar City into the No 1 slot. 

Courtesy of an article dated February 28, 2012 appearing in GreenTechSolar 

TROUBLED FISKER AUTOMOTIVE APPOINTS TOM LASORDA AS NEW CEO AND MOVES CO-FOUNDER HENRIK FISKER TO EXECUTIVE CHAIRMAN

A new CEO for the deeply troubled extended-range luxury electric vehicle maker.

Fisker Automotive, a VC-funded extended range electric vehicle maker, just moved co-Founder Henrik Fisker to Executive Chairman of the firm, and appointed Tom LaSorda as CEO and Vice Chairman of the Board.

Former Fisker Automotive co-founder and CEO Henrik Fisker (right) had a visit from U.S. Vice-President Joe Biden (left) at Fisker Automotive's Anaheim HQ on October 29, 2009 (Click Image To Enlarge)

LaSorda was formerly CEO, President and Vice Chairman of the Chrysler Group and also held executive positions at General Motors.

New Fisker Automotive CEO Tom LaSorda replaces Henrik Fisker (Click Image To Enlarge)

The firm has raised more than $800 million in private equity and produced only a few hundred vehicles, amidst recalls, DOE loan issues, and layoffs. Ray Lane, former Chairman of the Board, will take a "lead director role" according to a press release from the firm. Lane also shepherded Next Autoworks (the former V-Vehicle) into its current situation.

Click Images To Enlarge

High-end hybrid carmaker Fisker Automotive has stopped work at its Delaware Project Nina plant and laid off 66 workers, and is renegotiating its $529 million Department of Energy loan amidst news that it has been blocked from accessing the money since May.

It’s bad news for Fisker on top of bad news that’s been filtering out for months. The Anaheim, Calif.-based startup has continually delayed the sale of its Fisker Karma plug-in hybrid sports car. That’s hurt lithium-ion battery maker and partner A123 Systems, which laid off about 125 employees in November and lowered its annual revenue forecast, a move blamed largely on Fisker’s delays.

At the same time, Fisker has been renovating an old General Motors plant to build its next-generation “Project Nina” lower-cost plug-in hybrid sedans. That’s the reason it won a $529 million AVTM loan in 2010, and the project it has now halted as it seeks to renegotiate its loan. 

So far, Fisker has drawn on about $193 million of the $529 million AVTM loan, which leaves $336 million yet to tap. The loan actually laid out that Fisker could spend about $169 million on Karma engineering and $359 million on its Project Nina plans.

Fisker spokesman Roger Ormisher told reporters that access to the loan has been blocked since May. Neither party would talk about the renegotiation underway. But DOE spokesman Damien LaVera told Bloomberg that the agency has “strict conditions in place to protect taxpayers. The department only allows the loan to be disbursed as the company meets certain milestones and demonstrates results.”

The DOE’s greentech loan program has come under intense scrutiny since Solyndra declared bankruptcy in October. The thin-film solar module startup landed a $535 million DOE loan in 2009, but looks to be unlikely to be able to pay much of it back. Closer to the automotive industry, lithium-ion battery maker Ener1 filed for bankruptcy protection last month, after receiving a $198 million DOE grant.

Fisker has raised about $850 million in private capital from investors including Kleiner Perkins and A123. That includes $260 million in 2011, most recently with a $150 million round launched in November.

But it’s also struggled to deliver on its $102,000 luxury plug-in Karma, with only 225 vehicles sent to dealers and another 1,200 in the pipeline, CEO Henrik Fisker said in December. At the same time, its DOE loan was made conditional on the company delivering a cheaper mass-market model built in the United States, not by Finnish contract manufacturer Valmet, as today’s Karma models are.

Fisker’s Project Nina plant is also backed by $21 million in Delaware state loans. Fisker bought the site in late 2009, started hiring workers in July and had hired about 100 people as of late 2011. Monday’s layoffs included about 26 Delaware employees and about 40 at its headquarters.

Making cars is expensive, and Fisker must prove it can control those costs as it moves from contract manufacturing collectors' items to building mass-market cars on its own. In that sense, its rival is Tesla Motors and that company's Model S sedan -- but it’s also fighting against auto giants like Nissan, GM and all the rest. Having its first U.S. factory put on hold can’t be reassuring to would-be investors in its hoped-for IPO.

COMMENTARY:   In a previous blog post dated February 8, 2012, I reported that the Department of Energy had refused to allow further drawdowns on a $529 million loan, because Fisker Automotive had failed to meet the DOE's production and sales milestones.  Fisker announced layofs of 26 employees from its "Nina" plant in Delaware and speed up layoffs of 40-45 engineers at its Anaheim, California headquarters.  

Unless Fisker Automotive can lower its production costs and obtain additional financing, it will probably be unable to deliver the remainder of its Karma backlog, have to layoff even more employees, and may endup declaring bankruptcy and shutdown production altogether.

In my opinion, moving co-Founder Henrik Fisker to Executive Chairman of the firm, and appointing Tom LaSorda as CEO and Vice Chairman of the Board is just a cosmetic change, and not really going to help Fisker Automotive make cars.  In fact, having so few workers left, amounts to a slow death if you ask me.   

As far as I know, no one is going to come in and bailout Fisker Automotive through an acquisition. That $1 billion+ in total debt is like a heavy anchor weighing down the company.  Their only hope is a white knight who could come in an acquire the company, but who would be crazy to do that? As far as I am concerned, Fisker Automotive is a dead duck waiting to happen.

Courtesy of an article dated February 28, 2012 appearing in GreenTechMedia

TESLA MOTORS UNVEIL THE MODEL X, AN ELECTRIC CROSSOVER BETWEEN A SEDAN AND SUV, SCHEDULED FOR PRODUCTION IN 2013

HAWTHORNE, Calif. — On Thursday, February 9, 2012, Tesla Motors unveiled a prototype of its third vehicle, the Model X, here at the company’s design studios. Elon Musk, the chief executive of the electric vehicle start-up, said the crossover-like car would enter production in late 2013.

Elon Musk, chief executive of Tesla Motors, with the Model X prototype on Thursday, February 9, 2012

Mr. Musk said of the X in an interview after a preview for media.

“This is kind of the killer app for families/  It has more utility than a minivan, and better performance, much better performance, than an S.U.V.”

With a shape evocative of recent premium crossovers like the Acura ZDX and BMW 5 Series Gran Turismo, the Model X fits within a popular niche. Its copious interior space, however, aligns it more closely with minivans and S.U.V.’s.

Acura ZDX AWD 4-Dr (Click Image To Enlarge)

BMW  5 Series Gran Turismo

Mr. Musk said.

“Because it is an electric car, and we don’t have to package a traditional internal combustion engine powertrain, we have available to us much more packaging opportunities.” 

The new model was shown weeks after the announcement of two high-ranking engineers’ departures sent Tesla’s stock price falling sharply before it rebounded the following week. News of the Model X also came days after Fisker Automotive, another start-up, announced it would not meet sales benchmarks outlined by the Energy Department in the $529 million loan it extended to the company in 2009, and would lay off dozens of workers. Tesla received a loan of $465 million from the DOE that same year.

 

Problems with cash flow plagued Tesla as it tried to deliver its first product, the Roadster, but contracts to supply electric power trains to companies like Daimler and Toyota, as well as a lucrative I.P.O. in 2010, have given the company more solid financial footing.

The Model X evokes other premium crossovers, particularly the Acura ZDX and BMW 5 Series Gran Turismo.

A signature feature of the Model X, destined for the production model, Mr. Musk said, was the so-called falcon-wing doors for rear passengers. Like a traditional gullwing door, they open upward, but a hinge in the middle allows the leading edge of the door to remain tucked closely to the car.

Mr. Musk said.

“You can get in and out in the tightest garage or parking spot without hitting the wall or car next to you, or your head.” 

The Model X has two trunks: one in the rear and another under up front, where the engine would otherwise be found.  Mr. Musk said.

“Some S.U.V.’s and minivans claim to have room for seven passengers.  But if you fill them with people, there is no room for their luggage. The Model X offers ample room for seven adults, and their luggage.”

Like the Model S sedan, which is expected to arrive in showrooms this summer after numerous delays, the Model X conceals its batteries in the platform of the car. Electric motors spin the front and rear wheels independently.  Mr. Musk said.

“It has an innovative all-wheel-drive system that is incredibly precise and accurate in its application of power and traction, much more so than any other type of all-wheel-drive out there.” 

The Model X shares about 60 percent of its content with the Model S and weighs about 10 percent more. As a result, Mr. Musk said, the X would squeeze roughly 10 percent less range from its battery packs. The X would be offered with a choice of two packs, rated at 60 and 85 kilowatt-hours. For comparison, Tesla estimates a Model S can travel 160-300 miles on a full charge, depending on battery-pack specification.

Mr. Musk said.

“Even though the X is heavier, it will still go zero to 60 miles an hour in about 4.4 seconds. And that’s not even the Performance model.”

Pricing should be close to Model S territory, he added. That model starts at $49,900 after a $7,500 federal tax credit, but the price can approach $100,000, depending on options.

He said.  

“This will be our most important, and highest-volume car, when it comes out.”

A fourth model, aimed at a lower price point and wider audience, would likely be announced in 18 to 24 months he added.

COMMENTARY:   I love the Model X's gullwing doors and sportiness of a sedan and convenience and roominess of an SUV.  The two trunks will really come in handy for groceries and carrying luggage and other cargo.  The pricing is a high, but Tesla Motors has a reputation for well-designed and engineered automobiles.  They tend to attract affluent buyers, so the Model X hits the sweet spot now occupied by BMW, Mercedes and Acura.  The Model X fills an attractive niche in the luxury sedan/SUV space, and its technology should make it a formidable competitor to non-electrics.  The touchscreen on the Model X dashboard is like the one on the Model S electric sports sedan.

Courtesy of an ar5ticle dated February 9, 2012 appearing in the New York Times Blog

 

GLOBAL LED MARKET GREW 9.8% IN 2011 TO $12.5 BILLION FROM $11.3 BILLION IN 2010 WITH 44% GROWTH IN LIGHTING

The worldwide LED market grew 9.8% to $12.5 billion in 2011, with 44% growth in the lighting sector, according to Strategies Unlimited, who revealed the top-ten LED suppliers for the year. However, the outlook remains roughly flat for the next 5 years, peaking in 2013.

The worldwide high-brightness LED market grew from $11.3 billion in 2010 to $12.5 billion in 2011, a growth rate of 9.8%, according to market-research firm Strategies Unlimited. Demand for LED components (i.e. packaged LEDs) in the lighting market grew 44%, from $1.2 billion to $1.8 billion.

However, looking ahead, the annual revenues for packaged LEDs are likely to stay approximately flat for the next five years. The growth in revenue from the lighting sector will be largely offset by a decline in the backlighting sector.

The latest HB-LED market update was revealed during a pre-conference Investor Forum at the Strategies in Light event in Santa Clara. Analyst Ella Shum of Strategies Unlimited will go into more detail on HB-LED market developments in the keynote session of the conference on Wednesday February 8.

Leading LED Suppliers for 2011

On the supply side, 10 companies accounted for more than 68% of the LED market in 2011. Strategies Unlimited arrived at these figures after analyzing market demand as well as the supply-side activity of 54 LED component suppliers.

The rank order of the top 10 suppliers in the LED market for 2011, by revenue of packaged LED components, is:

1. Nichia 
2. Samsung LED 
3. Osram Opto Semiconductors 
4. LG Innotek 
5. Seoul Semiconductor 
6. Cree* 
7. Philips Lumileds* 
8. Sharp 
9. Toyoda Gosei 
10. Everlight

(*Companies have the same ranking when the difference in revenue is within the margin of error. Revenue includes packaged LED sales only, so pure-play LED chip companies such as Epistar are excluded).

LED Supply By Region

Geographically, Taiwanese and Chinese suppliers gained market share at the expense of the other regions. China’s improvement in product quality, coupled with gains in the domestic market, fueled the growth from 2% market share to 6% in one year. Korean companies lost share in the slowing market, even though they were the most aggressive in increasing capacity during the ramp-up in 2010.

The expansion by Philips Lumileds, Cree and Osram Opto into 6-inch substrates slowed as there was a great deal of excess capacity in their existing 4-inch lines. The Japanese LED business has trended down or flat. However, Nichia and TG are major beneficiaries of the boom in tablet computers. Osram Opto gained a major design win, which propelled its visible LED component business to more than $1 billion.

Market Growth By Segment

• Mobile - This segment stayed flat in 2011, at $3.4 billion. The overall decrease in the mobile phones market was offset by a sharp rise in tablet display and flash applications. A major development in this segment is the move to OLED displays. Approximately 50% of smartphone displays are expected to be OLEDs by 2016.
• TV/Monitor backlights - The LED revenue for TV and monitor backlights was $3 billion in 2011, but it is projected to drop substantially by 2016. The key disruptive factor in this segment is the introduction of low-cost, direct-backlit technology, targeted at sub-42-inch LCD TVs. This new technology can result in significant savings in the bill of materials (BOM), reducing the gap between LED- and CCFL-backlit TVs. These TVs are known as “chubby TVs” since they are thicker than the slim edge-lit design the industry has been touting for the past few years.
• Lighting - The same supply conditions that reduced the price of LEDs increased the demand for packaged LEDs in lighting applications from $1.2 billion in 2010 to $1.8 billion in 2011. System efficacy, rather than LED efficacy, was the gating factor in 2011. The LED luminaire and replacment lamp market was $9.3 billion in 2011, an increase of 45% over 2010. The market for LEDs in lighting is expected to demonstate substantial unit growth over the next five years, but revenue growth will be much lower due to pricing pressure.
• Automotive - Revenue reached $1 billion in 2011 We expect a 5-year CAGR of 34% for LED headlamps. In addition to the styling issues, this is part of the trend to convert all front lighting to LEDs, as it will provide more front-end room for the car designer and reduce the overall system cost. Revenue for interior automotive lighting will show a modest decline over the next five years as instrument panel adoption reaches saturation and the market declines with prices.
• Future growth - The revenues for the LED packaging industry are expected to be flat in the next five years. With excess capacity in the industry there is a threat of unsustainable prices. Consolidation – both vertical and horizontal – can help improve margins. To further improve profit margin, product strategies such as LED packages tested for high temperature, narrow binning, high CRI, directional /multidirectional LEDs, and embedded controls are being tried by the market.

Courtesy of an article dated February 7, 2012 appearing in LEDs Magazine