Instruction: create a high quality summary of the given input

Input:
Spain's Iberdrola completes flagship wind farm off German coast
 Spanish utility Iberdrola has this week completed the installation of 70 wind turbines at the 350 megawatt Wikinger offshore wind farm in the German area of the Baltic Sea.

The Wikinger offshore wind farm is a flagship offshore wind project for Iberdrola, which committed €1.4 billion to the 350 megawatt (MW) projected located off the northeastern coast of the German island of Rügen. Iberdrola, working alongside turbine manufacturer Adwen and subcontractor Fred. Olsen Windcarrier, completed installation of all 70 AD 5-135 wind turbines, which will generate enough electricity to supply approximately 350,000 German households, representing 20% of the energy demand in Mecklenburg-Western Pomerania, and avoiding 600,000 tonnes of CO2 emissions.

The first wind turbine installation was completed in February of this year, with construction being conducted by Fred Olsen’s vessel Brave Tern (see below) one of two self-elevating, self-propelled jack-up vessels dedicated to installing offshore wind turbines.

“I am very proud of our team for their hard work on this project,” said Fred. Olsen Windcarrier’s project manager Alexandra Koefoed. “We have worked closely with our client Adwen and park operator Iberdrola to safely and efficiently complete installation. Our experience working on the Adwen 5MW turbines on Global Tech I was invaluable.”

Sign up for Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast: I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ... Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps —— grow. So ...

Output: Iberdrola has finished building a 350 MW, 70-turbine flagship wind farm off the north-east coast of Germany. The Wikinger project, towards which the Spanish utility company committed around $1.63m, is located off the island of Rügen in the Baltic Sea and will generate enough power for 350,000 German households and avoid 600,000 tonnes of CO2 emissions.


Instruction: create a high quality summary of the given input

Input:
Growth stage fintech Verrency seeks $15m in series A
 Payments platform Verrency has announced a $US15 million Series A funding round as it continues to expand internationally. The growth-stage fintech provides payments innovation-as-a-service that enables issuers to deliver the latest payment capabilities, fast and cost effectively, through their existing payments infrastructure.

By giving consumers unprecedented flexibility and control over how they pay, Verrency’s cutting edge features ensure that their issuer’s brands are top of wallet and top of mind, driving revenue.

The Australian-based startup has recently completed an oversubscribed pre-commercialisation funding round raising $US 4 million and is looking to raise a further $US 15 million to expand into key international markets. Verrency aims to close the round in 2018, and is already in discussions with investors.

What does this funding round mean for Verrency?

The Series A funding enables the company to capitalise on its successful growth and further expand international operations. Headquartered in Australia with offices in both Melbourne and Sydney, Verrency recently opened an office in London, UK at Level 39 Canary Wharf, in preparation for commercial expansion to the UK later this year. In December 2017, the company will open offices in both the US and Asia Pacific, with operations based out of San Francisco and Singapore, respectively. Verrency’s expansion plans in the European Union in 2018 will be announced later this year.

Still in its first year of operation, Verrency Group Chairman and CEO David Link believes that the company’s unique offering has allowed it to make such an impressive footprint and drive interest with global clients.

“Our focus has always been global, because payments are global. By providing innovative – and in many cases, unique – services in a way that also seamlessly integrates into existing technology, we are unlocking the potential not only for significant revenue growth for our financial institution clients, but also to enable them to deliver new services to market at unprecedented speed. Our expansion strategy is central to achieving payments innovation and I am confident that this round of funding will enable us to gain traction in new geographies quickly – the demand is there.”

Output: Australian start-up Verrency has launched a $15m series A funding round after it secured $4m in an oversubscribed pre-commercialisation round. The company, which has been operating for less than a year, enables issuers to use their existing infrastructure to deliver the latest payment methods to consumers. Verrency recently opened an office in London and plans to establish bases in San Francisco and Singapore by the end of the year, before announcing its plans for the European Union next year.


Instruction: create a high quality summary of the given input

Input:
EDF completes 12MW PV project in southern France
 EDF Energies Nouvelles and steel maker ArcelorMittal Méditerranée have commissioned a 12MW solar plant in the Provence-Alpes-Côte d’Azur region of south-eastern France.

ArcelorMittal Méditerranée made 15 hectares of its industrial lands at the Fos-sur-Mer industrial and port complex available for the PV project, located in the Bouches-du-Rhône department.

The project includes 45,000 modules and generates the equivalent of the annual electricity consumption of 7,400 inhabitants.

Up to 40 people were involved in the 10-month-long construction of the plant.

To date, EDF Energies Nouvelles operates close to 1.5GW in wind and solar energy capacity in France.

EDF en was recently involved in the world's lowest ever solar bid in Saudi Arabia.

Output: A 12 MW solar plant in the south of France built by EDF Energy and steel company ArcelorMittal has been brought into commission. The solar PV project was constructed on 15 hectares of industrial land in the Bouches-du-Rhône region, and can generate enough electricity to meet the needs of 7,400 people. EDF is a significant player in the renewables market in France, where it operates nearly 1.5GW of wind and solar energy production. They have recently been involved in a bid for a project in Saudi Arabia that took the record for the lowest solar bid in the world to date.


Instruction: create a high quality summary of the given input

Input:
Orsted power plant completes journey from coal to gas to biomass
 Danish utility Dong Energy A/S (CPH:DENERG) this week inaugurated the Skaerbaek Power Station near Fredericia after its conversion to using biomass as fuel.

The process to convert the facility to using sustainable wood chips instead of gas took more than three years to complete and a total investment of about DKK 1.8 billion (USD 281m/EUR 242m). The plant now produces enough district heating to meet the annual consumption of some 60,000 homes in the Triangle Region.

Skaerbaek was built in 1951 and used coal as fuel until 1997, when it was converted to gas.

"By switching to sustainable wood chips, we're reducing Skaerbaek Power Station's annual carbon emissions by about 250,000 tonnes. This is equivalent to the annual carbon emissions from more than 125,000 cars," said Thomas Dalsgaard, Executive Vice President and CEO of Bioenergy & Thermal Power at Dong Energy.

The company has set a goal to cease using coal at its power stations entirely by 2023.

(DKK 1.0 = USD 0.156/EUR 0.134)

Choose your newsletter by Renewables Now. Join for free!

Output: Danish power company Orsted, formerly known as Dong Energy, has converted an old power station from processing gas to burning biofuels. The Skaerbaek Power Station was coal-fired when it opened in 1951, before converting to gas in 1997. The latest conversion, which took three years and cost $281m, sees it now using sustainable wood chips and generating heat for 60,000 homes in the region. A spokesman for the company said the switch reduces the plant's carbon emissions by around 250,000 tonnes.


Instruction: create a high quality summary of the given input

Input:
Vattenfall wind division reports loss in Q3 due to grid failings
 Swedish state-owned utility Vattenfall AB today reported a significantly widened underlying operating loss at its wind power segment for the third quarter of 2017.

The particular division recorded a loss of SEK 300 million (USD 35.9m/EUR 30.8m) in July-September 2017 compared to SEK 117 million a year earlier. Vattenfall blamed the negative result on lower availability resulting from grid outages and cable issues at certain offshore wind farms.

Still, the division demonstrated strong results for the first nine months of the year, with underlying operating profit jumping nearly 57% on the year thanks to the addition of new capacity during the period.

Also today, the company announced that it has made a decision to invest over EUR 200 million (USD 233m) in the repowering and expansion of the Wieringermeer onshore wind farm in the Netherlands to 295 MW by 2020.

The table below gives more details about the performance of the wind segment. Early in July the company changed the structure of the division, splitting it into three business units -- Offshore, Onshore and Photovoltaic & Battery.

Amounts in SEK million 9-mo 2017 9-mo 2016 Q3 2017 Q3 2016 Underlying operating profit (loss) 752 480 (300) (117) Underlying operating profit before depreciation, amortisation and impairment losses 3,913 2,919 729 697 External net sales 4,285 2,975 1,051 795 Net sales 6,140 4,519 1,546 1,263 Electricity generation - wind power (TWh) 5.1 3.9 1.4 1.1

The next table contains Vattenfall’s consolidated results for the quarter and nine months through September 30, 2017.

Amounts in SEK million 9-mo 2017 9-mo 2016 Q3 2017 Q3 2016 Profit (loss) for the period 6,690 1,790 789 787 Underlying operating profit 16,012 14,602 2,815 2,602 Net sales 96,839 101,412 27,426 29,746 Electricity generation (TWh) 92.2 86.3 27.3 25.2

(SEK 1.0 = USD 0.120/EUR 0.103)

(EUR 1.0 = USD 1.163)

Choose your newsletter by Renewables Now. Join for free!

Output: Swedish state power company Vattenfall has reported a loss of $39.9m in its wind power division for the third quarter of this year. The company blamed the poor financial performance on cable issues at some of its wind farms and wider grid failings. Despite the losses, the overall performance of the wind division for the first nine months of the year was strong, with profits up nearly 57% on the previous year. The company also announced it will invest $233m in the expansion of its Wieringermeer onshore wind farm in the Netherlands, taking its capacity to 295 MW.


Instruction: create a high quality summary of the given input

Input:
Regus WeWork has £2 billion of UK leases over the next 25 years
 Accounts show WeWork has £2 billion of lease commitments in the UK over the next 25 years.

Deals struck by the office provider suggest it is confident London will remain startup hub post-Brexit.

But risk that startups could shun the UK or suffer from funding shortfall after EU exit.

Profit warning from rival Regus and warning London could be entering property downturn.

LONDON — Hip office space provider WeWork has lease commitments in the UK of £2 billion over the next 25 years, accounts show.

US-headquartered WeWork launched in the UK in 2014 and now has 25 offices in London and two in Manchester. Accounts suggest more offices could be in development, although the company declined to comment on specifics.

WeWork doesn't own its own offices. The company leases building space — either floors or whole buildings — before fitting them out as "WeWork" coworking spaces. It then rents desks and private offices to businesses looking for flexible space — typically, although not exclusively, startups.

UK accounts for 2016 show the company has "minimum lease payments under non-cancellable operating leases" of roughly £1 billion up to 2042 in Britain. A further £1 billion of deals stretching to 2038 have been struck since the end of 2016, a note in the filing states.

The £2 billion of lease commitments represent a bold — and potentially risky — bet on London remaining a startup hub post-Brexit. Rival office space provider Regus recently issued a property warning and there are signs London's commercial office market could be entering a downturn.

A spokesperson for WeWork told Business Insider: "We’re committed to London — it has been a centre for commerce for centuries and always will be, and that’s why we’re investing here.

"Like all big changes, Brexit will create challenges and opportunities, and we think our members recognise that."

WeWork's offices in Soho, London. WeWork

'We will not pull out of agreements with landlords'

Rival office space provider Regus saw its share price fall 30% at the start of the month after warning of weakness in the London office market. London coworking space the Rainmaking Loft recently announced plans to shut, blaming competition from WeWork and highlight the fiercely competitive nature of the London office market.

iHeartMedia and WeWork host launch event to introduce new partnership and Work Radio at WeWorks New York City headquarters in Chelsea, June 14, 2016. Theo Wargo/Getty Images for iHeartMedia

Brexit could exacerbate any brewing problems — startups face a potential venture capital shortfall of at least £2 billion post-Brexit, with the European Investment Fund denying VC funds capital. Around one in ten UK startups are also said to be considering relocated away from Britain post-Brexit.

WeWork's spokesperson said: "When we speak to our members, the ability to recruit talent from the EU and to be able to access the single market are often mentioned as priorities. But the vast majority have their heads down and will work around whatever change comes at them."

The Royal Institute of Chartered Surveyors warned this week that three-quarters of its members believe London's commercial property market is entering a downturn.

WeWork's expensively kitted out offices, which famously feature free beer taps, carry hefty rents: hot desking costs around £400 per month and a private office is roughly double that. In the event of any downturn or funding squeeze, companies may look to cut costs. Access to a Regus office space costs around £300 a month, for example.

The bulk of WeWork's customers are on relatively short-term contracts, meaning they could back out in as little as 6 months if economic conditions sour. However, WeWork sees this as a strength of its business — if times are uncertain, it can offer flexibility.

The spokesperson said: "In a downturn, people want flexibility and community and, as that’s what WeWork offers, we’re confident that we’ll continue to grow at pace. We don’t anticipate ever getting to this, but we will not pull out of agreements with landlords."

Accounts suggest WeWork's London bet looks good so far. To keep on track it must average earnings of at least £80 million a year to pay off lease commitments up to 2038. Revenue for 2016 was £60.9 million, up from £11.9 million in the 15 months to December 2015. Pre-tax losses narrowed from £14.3 million to £11 million.

A tech business or a property company?

Founded in 2010, New York-headquartered WeWork was valued at $20 billion (£15.2 billion) earlier this year and has raised over $8 billion (£6.1 billion) to date from backers including Goldman Sachs and Japan's SoftBank.

The company has 150,000 "members" worldwide and leases 10 million square feet of office around the world. Regus has five times as much real estate as WeWork but is valued at just £1.9 billion.

WeWork justifies its valuation by arguing that it is closer to a tech or lifestyle company than to a property business.

However, Frank Cottle, chairman of rival services office business Alliance Business Centers, told the Wall Street Journal he sees the company as "nothing but Regus with a paint job." Regus first came to prominence during the dotcom bubble of 2000s but was forced to radically downsize when the dotcom bubble popped.

Output: WeWork has underscored its commitment to operating in London, despite the possible disruption caused by Brexit. UK accounts for last year revealed the US company has around £2bn ($2.6bn) in leases up to 2042, while a spokesperson said Brexit would provide "challenges and opportunities" but added: "we will not pull out of agreements with landlords". The company's optimism is at odds with a recent warning from the Royal Institute of Chartered Surveyors, which said 75% of its members said London's commercial property market was entering a downturn.


Instruction: create a high quality summary of the given input

Input:
Zenefits to pay $1m to SEC over lying claims
 America's financial watchdog will extract $1m from controversial insurance reseller Zenefits and its former CEO to settle claims they lied to investors.

The SEC said ex-boss Parker Conrad and the biz he founded Zenefits have agreed to shell out the dosh to end an investigation into whether they misled shareholders about the severity of the company's use of software bots to skirt state licensing requirements.

Zenefits was a former Silicon Valley darling that flogged employee health insurance packages to companies. In 2015, the biz was thrown into turmoil when it emerged it had built a browser extension that automatically took online classes for its brokers so that they could rapidly gain state-issued licenses to sell health insurance. Zenefits staffers were required to spend 52 hours in training for their certificates; instead, the bots crunched through the courses for them, allowing barely trained brokers to get cracking with sales almost straight away.

After that news broke, the subsequent 48 per cent stock plunge drew the attention of the SEC. The watchdog later claimed Conrad and Zenefits lied to the company's financial backers about the cheating.

"Although Zenefits recognized that it operated in a highly regulated industry, it did not take sufficient steps to ensure its growing workforce was properly licensed to sell insurance," the SEC said [PDF].

"Unbeknownst to investors, the company allowed employees to use a computer script created by Conrad to enable them to spend less time on pre-licensing education than required by California law."

Under the terms of the settlement, Conrad himself will pay out $533,692 in fines, disgorgement, and interest. Zenefits, meanwhile, will pay a $450,000 penalty. As part of the deal, neither Conrad or Zenefits will have to admit or deny any of the SEC's findings and charges.

Conrad left Zenefits in early 2016, only to resurface later that year. Zenefits has since implemented a plan to ensure all of its salespeople are properly trained and licensed to sell health insurance in their respective states of operation. ®

Output: The US Securities and Exchange Commission (SEC) has fined Californian insurance firm Zenefits, as well as its one-time CEO, $1m over accusations that it cheated regulations and lied to shareholders. Zenefits was accused of using software bots to help its brokers pass state licensing courses and gain certification without spending the required training time. They are then said to have lied to investors about the practice. Under the settlement with the SEC, Zenefits and its founder Parker Conrad will pay the penalty without having to admit guilt.


Instruction: create a high quality summary of the given input

Input:
Swiss start-up Etherisc offers blockchain-based flight delay cover
 Etherisc, a Zug-Switzerland-based insurance platform startup, has begun offering blockchain-based flight delay insurance, called Flight Delay, which automates the process of getting an insurance payout in case a flight is canceled or delayed.

“The frustration of a flight delay or cancellation is a familiar feeling for many travelers – and an unpleasant experience that is often compounded by having to deal with traditional insurance,” said Stephan Karpischek, Etherisc’s co-founder and CEO.

One year after launching a pilot application for attendees of Ethereum developer conference in Shanghai, the company has now partnered with Atlas Insurance PCC Ltd., a Malta-based protected cell company, to bring the product to market in time for this year’s Devcon3 conference in Cancun, Mexico.

“Etherisc is delighted to offer a decentralized insurance to the Ethereum community and to showcase how blockchain is enabling customer-centric innovation for the insurance industry,” Karpischek added.

Etherisc noted that policies will be facilitated by an Ethereum smart contract, allowing travelers to share the risk of a delayed or canceled flight with fellow travelers. Passengers can choose their preferred premium, view their estimated payout, and make their purchase in online currency Ethereum (ETH) or major fiat currencies: U.S. dollars, euros and pounds sterling.

Unlike traditional insurance products, Etherisc’s product stores insurance contract data on the Ethereum blockchain, the company said, noting that it also acts as an autonomous risk bearing mechanism, risk pricing engine, claim administrator and a payment system.

Other insurance products (e.g., micro insurances) in this area will follow 2018, Etherisc said.

“This is clearly a sign that blockchain is here to stay for insurance,” Ralf Glabischnig, partner at Zug-based Lakeside Partners, an early-stage investment group with a focus on blockchain technology and its applications. Lakeside is Etherisc’s close strategic adviser.

“Etherisc was on the front line of innovation with their application already a year ago and now a fully regulated policy payable in fiat currency shows that this is capable of gaining widespread adoption,” he added.

Etherisc noted that an insurance-focused Blockchain Competition will be held on Nov. 22, 2017 in Crypto Valley, Zug. Lakeside Partners is an initiator of the summit, which brings together startups from 31 different countries to compete for a $100,000 top prize.

Etherisc is an industry partner of the competition, together with Pax, Suva, Helsana, Baloise and Die Mobiliar.

About Etherisc

Etherisc describes itself as an insurtech startup with a mission to “reinvent insurance” by building a platform and an open protocol for decentralized insurance applications. The goal is to enable data scientists, actuaries, and entrepreneurs to design, build and bring to market insurance and risk transfer products that are transparent, open source, and provably fair.

About Atlas Insurance PCC

As a protected cell company, Atlas Insurance PCC gives promoters the opportunity to own their own EU-based insurance vehicle with less capital and cost, to write third party risks and to subcontract cell management to authorized insurance managers, Atlas explained.

Source: Etherisc

Topics InsurTech Tech Aviation

Output: Swiss insurance platform Etherisc has become the latest firm to offer blockchain-based flight delay insurance. The offering pays out automatically in the case of a delayed flight, and has been launched in partnership with Malta-based Atlas Insurance. It will be facilitated using an ethereum smart contract. The launch follows a similar product introduced by French insurer Axa earlier this year.


Instruction: create a high quality summary of the given input

Input:
South African insurtech Naked Insurance raises $1.4m
 South African insurtech startup Naked Insurance has raised a ZAR20 million (US$1.4 million) funding round as it looks to make the business of obtaining insurance effortless, fair and more transparent.

The funding comes from Hollard, South Africa’s largest privately-owned insurance group, and private investment firm Yellowwoods, with Naked Insurance set to launch into the market early next year.

The startup’s aim is to use technology to transform the insurance business model to give customers a faster, fairer and more flexible insurance experience. It is led by actuaries Alex Thomson and Sumarié Greybe, formerly partners in EY’s insurance advisory business.

The pair spent the last decade advising many of South Africa’s largest insurance groups, and noticed how these groups were struggling to transform and stay relevant in light of rapidly evolving customer expectations while still using outdated business models and systems.

“Our work revealed the many very real reasons a typical insurer can’t deliver insurance that’s appropriate for the times we’re in. The only way to do things differently was to get out of the system, start from scratch, and build a business model and technology to deliver a new generation of insurance,” said Thomson.

“It is time for insurance to adapt to current times, technology, and social standards, and offer the kind of transparency and trust that consumers expect from a financial services provider.”

Output: South African insurtech Naked Insurance, which aims to increase transparency for policyholders and "deliver a new generation of insurance", has raised $1.4m in a funding round. The funding was provided by South African insurer Hollard as well as private equity shop Yellowwoods. Naked Insurance plans to launch early next year.


Instruction: create a high quality summary of the given input

Input:
Malaysian insurers plan AI fraud detection system
 KUALA LUMPUR (Oct 30): A fraud intelligence system (FIS) will be introduced by the insurance industry, together with BAE Systems, in August next year to provide insurance companies and takaful operators with the ability to detect and investigate insurance fraud.

ISM Insurance Services Malaysia Bhd chairman Kong Shu Yin said a pilot run for the FIS, which was launched today on the sidelines of the Seventh Malaysian Insurance Summit by Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim, has already commenced last month involving four insurance companies in Malaysia.

"The first phase of the FIS will focus on motor insurance alone and will be rolled out to the whole industry [gradually]," he told a news conference in conjunction with the event.

He added that the insurance industry has invested over RM10 million in the FIS.

"It very sophisticated system, making use of big data analytics and combined with the experience of insurance executive claim examiners... together we can combat insurance fraud," he said.

Kong also said the insurance industry has paid out in 2016 a total of RM5.8 billion in motor claims itself

"[Research] has shown that 10% of those claims is estimated to be fraudulent. If you take 10% of RM5.8 billon, that is a whopping RM580 million lost due to insurance fraud.

"Now we are moving into de-tariff pricing which is a good and bad thing as any savings will be passed down to the consumers, along with the costs too," he said.

Output: Four Malaysian insurance companies have begun participating in a pilot fraud detection scheme, powered by artificial intelligence. The scheme is set to be adopted by Malaysia's wider insurance market next year. The programme is initially being tested within the motor insurance sector, and will make use of big data combined with claims personnel experience to identify cases of fraud.


Instruction: create a high quality summary of the given input

Input:
Engie wins Brazil regulator's nod to take over 605 MW wind farm
 Brazil's power sector regulator Aneel has approved on Tuesday the transfer of the project rights for the 605-MW Umburanas wind complex to France’s Engie SA (EPA:ENGI).

However, as the negotiation involved the request for cancellation of four permits already given to this complex, the watchdog applied a fine of BRL 3.8 million (USD 1.1m/EUR 995,179) Renova Energia SA (BVMF:RNEW11) .

In addition, Aneel has also suspended for a whole year Renova's right to take part in future energy auctions. The company's shareholders Cemig (BVMF:CMIG4) and Light SA (BVMF:LIGT3) are not affected by the decision, Aneel noted.

On August 23, Renova signed a contract with Engie to sell its stakes in the project companies for the Umbuaramas complex for BRL 15 million.

(BRL 1 = USD 0.308/EUR 0.262)

Choose your newsletter by Renewables Now. Join for free!

Output: French utility Engie has been given the green light to assume rights over the 605 MW Umburanas wind complex in Brazil. The transfer follows a BRL15m ($4.6m) deal in August to buy Renova Energia's stakes in the project companies. Energy regulator Aneel approved the move, but also slapped Renova with a BRL3.8m fine and year-long ban from participating in energy auctions over the company's failure to start works on the mills as a result of financial limitations. The ban could be lifted if Renova is taken over. Its parent company Cemig is trying to sell it to Canada's Brookfield.


Instruction: create a high quality summary of the given input

Input:
Hybrid renewables plants find favour in Australia and the US
 Battery storage is breaking into an ever longer list of grid-scale configurations, as new business cases arise.

Every major solar developer has begun at least contemplating storage paired with solar, even if few large projects have yet been built. GE has already paired batteries with its gas generators for fast-ramping grid services; it expects the setup to prolong the life of the gas asset.

Last week the roster of possibilities expanded when two companies announced new storage plant combinations: batteries with solar and wind power to provide consistent electricity in Australia, and a hydropower plant-plus-storage to tap the challenging PJM frequency regulation market.

The onus is on the developers to prove these newfangled plants can make money, but they've already expanded the range of uses for grid storage technology.

Wind and solar and storage, oh my!

Windlab and Vestas will develop a solar-plus-wind-plus-storage project in Queensland, Australia called the Kennedy Energy Park by the end of 2018. This will include 43.2 megawatts of wind capacity, 15 megawatts of solar and 2 megawatts of storage.

That's the first system of its kind that's been publicly announced, said Hong Durandal, a business analyst covering hybrid systems at MAKE.

Perhaps the closest antecedent is a system built last year by Spanish turbine maker Gamesa that combines solar, wind and batteries with diesel generators.* That system is much smaller and operates off-grid, so it serves a different market.

At the Queensland project, a single control system will operate all three resources, to optimize energy production and availability. Vestas will provide a 15-year active output management service for the site.

"By pairing two different generating assets such as solar and wind with energy storage, the system is more reliable and flexible than individual standalone solutions," Durandal said. "A wind-solar-battery system is more resilient against unforeseeable circumstances such as prolonged cloudy days with poor sunlight or days with low wind speeds."

In addition to meeting strict energy generation requirements, the plant will be able to provide grid services like frequency regulation, energy-shifting, peak load reduction and ramping, he added.

Australia draws almost all of its electricity production from fossil fuels; coal dominates with 63 percent of generation. Wind and solar produce a small but growing share of generation. The government has a target of 23.5 percent renewable energy by 2020.

"Kennedy Energy Park represents a new milestone for wind turbine OEMs stepping into hybrid energy projects to diversify and continue to grow the wind industry," Durandal said.

If this type of project grows into a trend, it poses a challenge of nomenclature. A five-word hyphenation doesn't bode well for branding efforts.

Durandal uses the term "triple hybrid." "Hybrid" often connotes two elements, as with a Prius, but it isn't limited to that.

Hydro and storage, but not in the usual way

Greensmith (now a subsidiary of Wartsila) will work with American Electric Power to connect 4 megawatts and 4 megawatt-hours of battery storage with the Buck and Byllesby hydroelectric plants on the New River in southwest Virginia. The new batteries will help the hydro plants, which have operated since 1912, compete more nimbly in today's market.

Pumped hydro stores far more energy on the grid than batteries do, but that's not what this is. In fact, this appears to be the first time a developer will pair hydro generation with battery storage.

The companies expect the system to begin operations in Q1 2018. At that point, the batteries will improve the plant's performance enough to qualify for both of PJM's frequency regulation markets: "RegA," which is the traditional market, plus the faster "RegD."

"The key is fast response time and accuracy of the battery energy storage relative to the slow response time and accuracy of a hydro dam," said David Miller, Greensmith's director of business development. "Hydro dams have different response times, but the dams in question here are old and therefore do not have a fast response."

Greensmith previously developed six grid-scale energy storage systems in PJM territory, but this is its first since the regional transmission operator implemented new frequency regulation signals and requirements. That change undercut the payback opportunities for storage, as detailed in a recent episode of The Interchange podcast.

"With all of these changes, the PJM market is effectively closed to new capacity due to merchant risk, and revenues took a nosedive," said Ravi Manghani, energy storage director at GTM Research.

The decision to combine hydro plants with storage could sidestep that problem.

Battery systems usually play in the RegD market, due to their energy capacity limitations, Miller said. The fast-response storage will allow the hybrid plant to compete there, but it also wields the energy capacity of the hydro plants, opening up RegA revenue. That serves as a hedge in case RegD prices drop further.

"The hedge helps to secure the business case for battery storage," he said.

In practical terms, the hydro plants and lithium-ion batteries will run simultaneously. The hydropower sells energy and keeps the batteries charged up while the battery does the fast response work required by PJM's frequency regulation market. In return for the top-up, the battery minimizes wear and tear on the dam from fast-ramping.

That's quite similar to GE's calculus for pairing batteries with gas peakers: save the generator from start-stop operation, allowing it to run in more favorable conditions, ultimately prolonging its life.

This means that, for the cost of adding 4 megawatts, the century-old facility gets a whole new revenue stream.

"It's almost like adding a Ludicrous mode to a horse buggy," Manghani said.

More to come

Storage continues to bolster its reputation as the most versatile technology on the grid. More hybridization of storage with any type of generation is on its way, Miller said.

"By combining generation with storage, we can take advantage of the beneficial performance characteristics -- fast response, fast ramp rate, low O&M costs, zero emissions -- while using the generation asset to address the constraint posed by storage’s limited energy duration," he said.

Frequency support and spinning reserve applications make the most sense for hybrid plants currently, in both electricity markets and remote grid environments globally, Miller added. Greensmith already pairs batteries with a Wartsila engine, and likely will integrate more generation assets in the future.

*Updated with information on a similar hybrid system.

Output: Hybrid renewable power plants that combine different forms of energy production with battery storage are set to appear across Australia and the US. Among them is the Kennedy Energy Park being developed in Queensland, which will combine 43.2 MW of wind power with 15 MW of solar and 2 MW of storage. The Buck and Byllesby hydroelectric plants in Virginia in the US will also be fitted with battery storage, improving their reliability and performance. The projects are expected to be the first of many built in the two countries.


Instruction: create a high quality summary of the given input

Input:
Fund fees reduce gross returns by up to 20%: ESMA
 Esma found that fees included in the total expense ratio (TER) reduce gross returns of EU-domiciled funds by an average 13%. When sales and redemption fees are added, “gross returns on EU mutual fund shares are reduced by 20%”.

Fees reduce returns by 15% for retail equity funds, and 10% for institutional funds. But bond fund investors forego a much larger share of their profits, despite fees on bond funds being substantially lower. But the generally lower returns in this asset class mean the impact of fees on returns is a lot higher: investors in institutional share classes of bond funds lose 17% of their gross returns, but investors in retail funds lose an average of 32%.

Lack of fee awareness

The Financial Conduct Authority (FCA), the UK financial regulator, published a study last summer showing fund fees do not correlate with gross performance. Moreover, it found a slight negative correlation between gross returns and performance in two of the three asset classes it examined.

Esma also noted that “the impact of fees and charges on the net outcome to investors does not seem to be reflected in investor choices”.

While the FCA found that performance is uncorrelated with fees, Esma concluded that fund flows are not correlated to fees either, when corrected for performance, with the exception of retail bond funds, commodity funds and money market funds.

This conclusion is debatable, however. After all, the rise of ETFs as alternatives to active funds has a lot to do with ETF fees being lower, especially on the equity side.

Nevertheless, Esma has now received a mandate from the European Commission “to issue recurrent reports on the cost and past performance of the main categories of retail investment, insurance and pension products,” it announced on Friday.

The regulator noted that situations of low gross returns and commensurately high relative fees “are more likely to occur in the current low interest rate environment, reinforcing the vulnerability of investors to low performance by their investments in the fund industry”.

Apparently, Esma’s initial findings about the sheer loss of gross returns to fees were shocking enough for it to assess the reporting of costs and past performance of retail investment products by asset managers, “in order to increase investors’ awareness of the net return of these products, and the impact of fees and charges”.

Asset managers, brace yourself

It’s time for asset managers to brace themselves: the competition from passive solutions has been putting downward pressure on fees over the past few years, resulting in lower margins. Regulators have so far been reluctant to turn up the pressure. This was exemplified by Esma refusing to name the funds it had identified as “possible” benchmark huggers last year, and Luxembourg’s regulator claiming last summer there were no benchmark hugging funds among the 4,100 Ucits funds domiciled there.

But this new Esma initiative may very well mean the pressure on active managers will from now on come from the regulators too. As the EU embarks on its next phase of integration, it is more than keen to show to its often-sceptical citizens that it works to their benefit, and not to that of big business.

Multi-asset scrutiny?

The multi-asset and unconstrained bond space are the areas that have seen most investor inflows, and have escaped competition from passive managers. They also charge fees that are typically higher than those charged for equity funds, even though returns are lower. Multi-asset funds, for example, escaped scrutiny in Esma’s initial study.

The average management fee for a ‘flexible allocation’ fund is 1.26% according to Morningstar. This compares with a management fee of 1.19% for European equity funds and 0.66% for European corporate bond funds. Gross returns for multi-asset funds, however, are closer to those of bond funds than of equity funds.

Expect Esma to pay some attention, perhaps unwanted attention in some quarters, to multi-asset fund charges over the coming months and years. After all, these are the kinds of funds most popular with the consumers the regulator has vowed to protect.

Output: The European Securities and Markets Authority has fired a shot at asset managers, noting in a report that fund fees can wipe out up to 20% of a product's gross returns. The report found that bond funds are more susceptible to having profits reduced by fees, despite these offerings generally having lower fees than their equity counterparts. The study followed a report from the UK's Financial Conduct Authority published in the summer, which found that fees and performance were not correlated.


Instruction: create a high quality summary of the given input

Input:
EDF joins Elsewedy Electric for Egyptian 100 MW solar projects
 EDF Energies Nouvelles (EDF EN) has teamed up with Elsewedy Electric Group to build and operate two solar power plants in Egypt with a combined capacity of 100 MW.

The renewables arm of France’s EDF SA (EPA:EDF) said on Thursday that financial closing for the projects was reached on October 25. It added that the schemes have a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC).

EDF EN and Elsewedy have decided to join forces after both qualifying for 50 MW under Round 2 of the solar feed-in tariff (FiT) programme launched by the government of Egypt in 2015. Their joint effort will contribute to the 1.8-GW Benban solar park in Aswan, Upper Egypt. Earlier today, Scatec Solar ASA (OSL:SSO) said it had achieved financial close for six solar projects totalling 400 MW that will form part of the same complex.

The European Bank for Reconstruction and Development (EBRD) and Proparco are jointly financing the EDF-Elsewedy projects.

The French company expects construction works to start in the first quarter of 2018, subject to clearance by the Egyptian authorities.

Choose your newsletter by Renewables Now. Join for free!

Output: EDF Energies Nouvelles is partnering with Egyptian firm Elsewedy Electric Group to construct and operate two 100 MW solar photovoltaic plants in Egypt. The projects are part of the 1.8 GW Benban solar complex, and include a 25-year power purchase agreement with the Egyptian Electricity Transmission Company. Antoine Cahuzac, EDF Group's head of renewable energies, said the schemes formed part of the French utility's CAP 2030 strategic plan. Construction is set to begin in Q1 2018.


Instruction: create a high quality summary of the given input

Input:
EDF joins Elsewedy Electric for Egyptian 100 MW solar projects
 French utility EDF Energies Nouvelles has teamed up with local outfit Elsewedy Electric Group to build and operate two solar projects totalling 100MW in Egypt.

Financial close was reached on 25 October for the photovoltaic plants, which are part of the 1.8GW Benban solar complex in the south of the country.

Construction is expected to start in the first quarter of 2018 following the approval of the Egyptian authorities.The projects have been developed under round two of the Egyptian feed-in tariff programme and will benefit from a 25-year power purchase agreement with the Egyptian Electricity Transmission Company.EDF Group senior executive vice president for renewable energies and president and chief executive of EDF EN Antoine Cahuzac said: "The Benban solar project ties in with the EDF Group’s goal of doubling its renewable capacity in France and worldwide by 2030 under its CAP 2030 strategic plan."

Output: EDF Energies Nouvelles is partnering with Egyptian firm Elsewedy Electric Group to construct and operate two 100 MW solar photovoltaic plants in Egypt. The projects are part of the 1.8 GW Benban solar complex, and include a 25-year power purchase agreement with the Egyptian Electricity Transmission Company. Antoine Cahuzac, EDF Group's head of renewable energies, said the schemes formed part of the French utility's CAP 2030 strategic plan. Construction is set to begin in Q1 2018.


Instruction: create a high quality summary of the given input

Input:
Older UK pension savers taking on too much risk: Hymans Robertson
 The risk profiles of many default master trust funds at the start and the end of the retirement journey need an overhaul, recent research by Hymans Robertson reveals.

With master trust arrangements accounting for 94 per cent of the UK market and representing seven million people’s pensions arrangements, the consultancy has interrogated their risk exposure at the accumulation, consolidation and decumulation phases of retirement.

In many trust arrangements at the growth – or accumulation – phase, insufficient risk is being taken, which could impede member outcomes.

Hymans Robertson head of DC investment proposition Anthony Ellis says: “While the majority are taking enough risk, the focus on short-term volatility reduction by some is costing members through lower long-term net returns.”

He says: “In these cases this is likely to result in poorer member outcomes – those strategies that have embraced higher-risk asset classes have outperformed the strategies with a heavy focus on risk mitigation.”

Source: Hymans Robertson

The group says focusing on short-term risk mitigation is of “questionable value” so far away from retirement.

Conversely, while the market has delivered strong returns for members nearing retirement, Ellis believes default schemes in this phase have carried too much risk, which could lead to problems should market volatility pick up and that the ‘one-size-fits-all’ approach is no longer suitable.

He says: “At this stage investment risk should de dialled down significantly and the investment strategy should be consistent with the member’s decision at retirement.”

Source: Hymans Robertson

Hymans Robertson adds that currently, smaller fund sizes are prompting savers to opt for cash withdrawals – over 53 per cent of DC pensions pots accessed at retirement are fully withdrawn. Of these, 90 per cent are less than £30,000 in size.

Ellis says: “In this context it raises a question mark over exposing DC investors to market risk and market falls.”

Hymans Robertson cites the desire to outsource and the introduction of auto-enrolment as having spurred growth over the past five years, with master trusts now “the vehicle of choice” for many employers.

With 35 per cent of workplace pension schemes now in master trust arrangements, they are expected to grow to £300bn in assets by 2026, according to the consultancy.

During the consolidation phase – up to five years from retirement – Hymans Robertson says the focus should shift to capital preservation, solid returns and risk reduction.

“In the consolidation phase…the picture is mixed. The data shows that some have delivered strong performance with commendably low levels of risk.

“Others have delivered lower risk but at the cost of lower – but still relatively strong – returns. While some have delivered strong returns but with high levels of volatility.”

Source: Hymans Robertson

Just days after the Department for Work and Pensions released the findings of its survey on pensions charges Hymans Robertson flags the importance of looking at fees in relation to performance and neither as standalone features.

Ellis adds: “In assessing performance, the sole focus must not be on returns.

“It is also vital to look at the amount of risk being taken at different stages of the savings lifecycle to ensure it is appropriate throughout.

“Equally, fees should not be looked at in isolation – what should be examined is the relative value of those fees against what they deliver.

“Ultimately, if a higher priced strategy has generated a better member outcome relative to a lower cost strategy over the relevant period, after taking into account all fees, then that represents better value.”

Output: Master trusts, which represent the pension arrangements for seven million people in the UK, are taking on too much risk as investors near retirement, consultant Hymans Robertson has determined. On the other hand, an obsession with limiting short-term volatility has reduced the returns in portfolios still in the accumulation phase. The consultancy recommends trusts shift their focus five years before retirement to capital preservation and solid returns, rather than taking on excess risk.


Instruction: create a high quality summary of the given input

Input:
Total sees Q3 profit slump by half amid weak solar market
 The new Gas, Renewables & Power segment of French oil and gas major Total SA (EPA:FP) has experienced a 49% year-on-year drop in third-quarter adjusted net operating profit to USD 97 million (EUR 84m).

The result was in line with the second quarter. Investments amounted to USD 99 million, compared to USD 1.1 billion a year earlier and USD 77 million in April-June 2017. Cash flow from operations amounted to USD 325 million, up from USD 24 million in the same period of 2016. Last quarter the segment’s cash flow from operations was negative at USD 114 million.

For the first nine months of the year, adjusted net operating profit decreased by 18% to USD 253 million because of weakness in the solar market, the company says in the financial report. Total is the majority owner of US solar panel manufacturer SunPower Corp (NASDAQ:SPWR).

The particular segment encompasses downstream gas activities, New Energies activities excluding biotechnologies, as well as a new Innovation & Energy Efficiency division.

(USD 1.0 = EUR 0.863)

Choose your newsletter by Renewables Now. Join for free!

Output: Total has reported an almost 50% drop in Q3 earnings from its new gas, renewables and power unit. The French utility blamed "weakness in the solar market" for adjusted net earnings of $97m at the unit and an 18% slump in adjusted net operating profit in the first nine months of the year to $253m. Cashflow from Q3 operations rose to $325m from $24m YoY, while investments dropped to $99m from $1.1bn.


Instruction: create a high quality summary of the given input

Input:
Chinese clean energy forced off grid by competition from coal
 Clean energy is competing with coal-fired generating capacity for priority dispatch in the country more than ever before, says Bloomberg New Energy Finance (BNEF). However, the consultancy — which has just released its new China Renewable Curtailment and Coal Stranded Assets Risk Map, in cooperation with the ClimateWorks Foundation — also says that factors such as rapidly rising power demand, hefty clean-energy subsidies and tough industrial competition at the regional level are creating “unprecedented” uncertainty for owners of coal-fired plants.

“The world’s largest power system will face serious challenges in the next few years,” BNEF says. “Renewable power generators face the worst curtailment rates in the world.”

At the national level, the average curtailment rate for solar reached 10% in 2016, as the country’s electricity market was oversupplied by 35% by the end of last December. And the situation remains precarious, as developers are now building about 24 GW of new solar capacity in regions where renewable energy is still being curtailed, as well as 30 GW of wind, according to BNEF.

In addition to losses arising from idled renewables capacity, China stands to lose as much as $237 billion from its threatened coal-fired plants, as more than 120 GW of new coal generation capacity is still being built throughout the country. With its new data-backed risk map, BNEF aims to shine a light on the criteria that Chinese energy regulators are using to guide the transformation of the country’s power market. The map offers a look at the cross-industry, provincial factors that will shape the development of the country’s energy sector through the end of this decade.

BNEF believes that the national curtailment rate will fall nationally in the years to come, as the pace of construction slows and more long-distance transmission capacity is brought online. In particular, it says that curtailment pressure will ease in Gansu province, as well as the Xinjiang and Inner Mongolia regions. However, solar and wind curtailment may start to become an issue in the southern part of the country by the end of the decade, particularly in provinces such as Fujian, Guizhou, Sichuan and Hunan.

That said, BNEF believes that through 2020, coal risk will remain an issue areas in which coal-fired generation is still widespread, such as the Inner Mongolia region, as well as Gansu, Shanxi, Jilin, and Yunnan provinces. “All will see their coal risk worsen or stay high going into 2020,” it argues. “Wholesale market liberalization will have a profound impact on the performance of coal power plants, especially in over-supplied provinces with significant competition from non-coal base-load capacity, such as hydro and nuclear.”

Popular content

BNEF sees the completion of new long-distance transmission projects, as well as power market reforms, as the key to easing renewable curtailment risks. “Ultra-high voltage transmission lines will help alleviate curtailment risks,” it says. “But the risk mitigation will depend highly on line utilization.”

For example, provinces that might be positioned to bring electricity in from other parts of the country may ultimately decide not to hurt local generators by importing power, it explains.

“Besides technical constraints, China's pre-set allocation dispatch mechanism is one of the most critical causes of renewable curtailment,” BNEF says. “The liberalization of (the) power market will significantly help curtailment alleviation if a spot market and ancillary market are successfully established.”

Despite the ongoing build-out of coal-fired plants, none of the provinces in China actually need to bring any new capacity online, based on the current supply/demand balance, it argues.

“Beijing, Shanghai, Jiangsu and Hebei are the only provinces where local generation fleet, de-rated for availability, is not equal to or higher than the peak demand load,” BNEF says. “However, these provinces can rely on imports as well as cleaner new build (like nuclear) to meet the shortfall. These regions are also severe air pollution control areas, so should not be building more coal-fired capacity for that reason.”

Output: China is wasting vast amounts of renewable energy as coal-fired capacity continues to provide high levels of competition, a new study has found. Bloomberg New Energy Finance found that the curtailment rate for solar power in China reached 10% in 2016, with that for wind power being 17%. These are the highest rates in the world and are a consequence of the country's energy market being oversupplied by 35% by the end of last year. The cancelling of a number of new coal-fired plants could help ease the situation, researchers found, as could improvements in power transmission.


Instruction: create a high quality summary of the given input

Input:
Index funds could face future ownership limits: Bogle
 Has Vanguard, the asset-managing giant that has dominated its competition as investors trend toward the kind of low-fee and passive products it specializes in, become too big for its own good? A perhaps-unexpected expert says it is nearing that point: Jack Bogle, Vanguard’s founder, who is often considered the father of passive investing.

“The economies of scale just can’t keep going on much longer,” Bogle said during an interview with Christine Benz, Morningstar’s director of personal finance. Bogle suggested that if Vanguard hit $4.7 trillion in assets, that might be too large. It currently manages $4.08 trillion. Bogle retired as Vanguard’s chief executive officer, and he noted he doesn’t advise the firm’s management team.

“I don’t decide anything, I don’t have to take the consequences—but I do think that when you get down to these kinds of issues, one of the things I would say was, let’s take the foot off the accelerator and ease it gently over to the brake,” said the 88-year-old investment luminary, in the interview that was published last week.

Bogle said any scaling back of the investment behemoth, if it were to even happen, wouldn’t happen soon and would be fraught with challenges. “That’s a hard thing to do. We all know it’s going to have to be done sometime. I mean, maybe 25 years from now,” he said (Check out the full interview below).

Vanguard has been massively successful, with the assets it manages ballooning in recent years, as investors increasingly move into both passive funds and low-cost funds. Passive funds track the performance of an underlying index like the S&P 500 SPX, +0.27% , as opposed to actively managed funds, which look to outperform the index by picking stocks.

Related:Why the latest round of rock-bottom ETF fees may be a nonevent for investors

Thus far this year, Vanguard has seen a staggering $276.2 billion in inflows, by far the most of any asset manager, and as much as its closest eight competitors combined, according to data from Morningstar Direct.

In second place is iShares, the suite of exchange-traded funds sponsored by BlackRock BLK, -0.15% , which has had $156.5 billion in inflows. Flows drop off dramatically from there. Dimensional Fund Advisors, the firm with the third-highest flows, had a comparably paltry $24.3 billion flow into its funds in 2017, or nearly 9% of Vanguard’s haul.

Over the past month, nearly $28.1 billion have gone into Vanguard’s passive funds; only $2.8 billion have flowed into its passive offerings. Even that demonstrates Vanguard’s dominance, however, as actively managed funds as a category saw broad net outflows over the month. Only Pimco, which focuses on fixed income, an asset class where active management is seen as delivering more value than stocks, had higher active inflows, at $3.2 billion.

Read more:Investors flock to Vanguard funds, dump Goldman, Wells Fargo, and others

Data have repeatedly shown that passive funds outperform a vast majority of actively managed products over times. This is a cornerstone belief of Vanguard’s business model, which emphasizes passive investments. Another one has been rock-bottom fees. The average expense ratio, a measure of how much the fund charges customers to cover operating costs, for a Vanguard fund was 0.12% in 2016, according to the company’s own data, compared with an industry average of 0.62%.

Opinion:Jack Bogle is right: Don’t be a passive investor, be a frugal investor

Don’t miss:The reason Jack Bogle doesn’t fly first class says everything about his investing legacy

However, Bogle suggested there wasn’t much room for fees to go any lower. “We’ve only got 12 basis points to go, and let me say it: There’s an irreducible minimum, no matter how big you are.” He said it costs “a lot of money to run this business,” and said that if the average fee was eight basis points (or 0.08%, amounting to $8 for every $10,000 invested), that might not be tenable. “I just don’t think it’s worthwhile, hyping and trying to bring in more and more money,” he said.

Another factor Bogle said could be on the horizon, as pertaining to Vanguard’s size and popularity, involved the regulatory environment. He noted that the Investment Company Act of 1940 essentially prohibits a mutual fund from owning more than 10% of the voting shares of any security.

“If you had an index fund that owned 10% of the company, they’d have to stop buying it,” he said. “They couldn’t own any more.” He suggested that if such a case were to occur now, the manager could simply create another index fund to bypass this issue. Such a workaround is “totally legal right now,” he said, though this could be changed, speculating that the limit could be raised above 10%, or that it could even apply to “all the holdings of a given management company or fund sponsor,” which he said would be “a limiting factor.”

According to data from ETFGI, a research firm, Vanguard holds 18.7% of the ETF industry’s market share, with some $835.8 billion in ETF assets. That puts it behind iShares, which has $1.66 trillion in ETF assets, and 37.2% of the market share, but above State Street, which sponsors the SPDR suite of ETFs. SPDR funds have 13.6% of the market, and $607.7 billion in assets, nearly half of which are in the SPDR S&P 500 ETF Trust SPY, +0.21% , which has more than $250 billion as the largest ETF on the market.

Courtesy ETFGI

The popularity of both ETFs and passive instruments—each of the “big three” ETF providers focuses on index funds—has created a three-firm oligopoly, Bogle said.

“Oligopolies are not attractive to U.S. governments or world governments,” he said, adding that “this phenomenon for exchange-traded funds, and index funds generally, is all over the world.” It is at its strongest in the U.S., “but it exists almost everywhere, and I don’t see how it’s going to back down.”

Output: Among the risks posed to index-tracking funds are the potential adjustment to regulations surrounding their holdings, Vanguard founder Jack Bogle has said. Current rules specify funds cannot own more than 10% of a company's voting shares. The likes of Vanguard, BlackRock and State Street Global Advisors, all of which have substantial indexed assets, have swerved this requirement in the past by launching new funds. With the continued growth of passive funds, it's possible regulators either look to increase the 10% limit or potentially apply the limit to an entire fund family, Bogle noted.


Instruction: create a high quality summary of the given input

Input:
Molten salt may challenge li-ion batteries in storage
 Thermal storage hasn't garnered the level of industry attention lately as battery storage, which is experiencing quickly falling prices and rising deployments.

But thermal storage, and molten salt in particular, actually exceeds the capacity of battery storage in operation so far, according to a new report from the International Renewable Energy Agency. A recent resurgence in concentrated solar power development promises to increase that advantage.

Molten salt technology represents three-quarters of the thermal energy storage deployed for electricity applications worldwide, the study says. These applications typically support CSP projects, letting them dispatch electricity outside peak sunshine hours.

Grid-tied molten salt storage volumes beat those for batteries by mid-2017, according to U.S. Department of Energy figures cited in the report. Although the data is for power output only, it shows molten salt weighing in at 2.5 gigawatts versus 1.9 gigawatts for all forms of electrochemical storage.

In energy terms, though, the difference is expected to be much greater, since the bulk of large-scale battery applications to date have tended to be in the seconds-to-minutes range, while molten salt is rarely used for less than 30 minutes of storage.

In 2016, commissioned parabolic trough plants featured either 7- or 9-hour duration storage, according to the International Energy Agency’s Renewables 2017 report.

Parabolic trough is the most commonly used technology for CSP, but it is rapidly being superseded by power towers. These typically offer even longer storage durations.

SolarReserve’s 110-megawatt Crescent Dunes power tower, for example, has 10 hours of storage. The company’s 100-megawatt Redstone power tower project, due in 2020, will have 12 hours of storage and the 260-megawatt Copiapo plant, scheduled for 2022, will have 13 hours.

These are not exceptional: a plant in Chile, Cerro Dominador, is planned to have 17.5 hours of molten salt storage if its owner EIG Global Energy Partners can find $800 million to restart the project after its original joint venture partner, the distressed Spanish firm Abengoa, pulled out.

In energy terms, the storage volumes involved are massive. Crescent Dunes, which is beginning to look small compared to some of the upcoming projects in the industry, theoretically has 1.1 gigawatt-hours of storage capacity.

That dominates Tesla’s 129-megawatt-hour battery project in South Australia, which will be the largest lithium-ion system when it's completed.

And the demand for long-duration storage with CSP is growing, said SolarReserve CEO Kevin Smith.

“Bulk storage, not 10 or 15 minutes but more like 8 to 12 hours, is quickly becoming a valuable attribute for renewable energy projects,” he said.

Markets such as Chile, Australia, the Middle East and South Africa are regularly mandating these levels of storage to be attached to CSP, he said.

Even California is discovering that bulk storage will be needed to achieve its goal of reaching 50 percent renewable energy by 2030, he added.

“They won't get there by just deploying intermittent wind and PV, and are already experiencing periods where the value of energy generated off-peak is going to zero during some times of the year, and on-peak prices are climbing,” he said.

But perhaps the biggest upcoming market for molten salt storage could be China. The country is taking a major interest in CSP development, joining forces with companies bidding in the Middle East and planning 1.3 gigawatts of capacity across 21 projects.

These projects are designed to give China the expertise it needs to install 5 gigawatts of CSP capacity by 2020. And they are “mostly with storage,” said Cedric Philibert, senior energy analyst in the International Energy Agency’s Renewable Energy Division.

China’s 2020 build-out deadline might end up being ambitious, Philibert said, but at the same time, “We might see Chinese companies coming in and reducing costs for everyone.”

These cost reductions are not much of a concern for molten salt. Unlike lithium-ion batteries, which are expected to achieve significant cost reductions through economies of scale, molten salt storage is cheap and probably won’t get much more so.

“Prices are not driven by the demand in CSP, but by the conditions of the fertilizer market, which is the main application of this type of salts,” said Giuseppe Casubolo of Chilean salt vendor SQM.

However, CSP plants cost a lot more than PV or wind projects. Recent tenders have seen these costs falling dramatically, and there are developments in the works that could make CSP cheaper still.

If these developments succeed and the Chinese can do for CSP what they did for PV, then molten salt’s contribution to grid-connected energy, in sunbelt markets at least, could end up being much greater than many expect.

--

Join GTM for a deep dive into the budding domestic energy storage market at the U.S. Energy Storage Summit 2017. Utilities, financiers, regulators, technology innovators, and storage practitioners will all come together for two full days of data-intensive presentations, analyst-led panel sessions with industry leaders, and extensive, high-level networking.

Output: Molten salt technology could become the energy storage medium of choice, potentially replacing lithium-ion batteries. According to two separate reports molten salt outperforms batteries in terms of both thermal and volume storage, and its low cost makes it more attractive to investors than lithium-ion equivalents. China is on track to become the biggest market for molten salt storage, with 1.3 GW in planned projects, while the Middle East, South Africa and Australia are also emerging as strong players.


Instruction: create a high quality summary of the given input

Input:
GE digital grid ambitions powered by deal with NY energy utility
 GE’s companywide earnings fell short of expectations last week, but its digital grid business keeps on growing.

Descended from Thomas Edison’s electrical appliance enterprise, GE still has its fingers in a nearly unfathomable number of pies. It continues to lead in conventional power applications, like wind turbines and gas generators, but it’s also been building out Predix, an industrial internet-of-things business that pairs on-the-ground sensors with local and cloud computing.

In Q3 2017, GE Digital orders grew 50 percent year over year, the company said. In previous quarters, power was the fastest-growing segment within the digital category.

That momentum continued this week thanks to a new partnership with Exelon, one of the biggest power providers in the U.S. and a flagship customer for GE Digital. In a separate deal, the New York Power Authority will expand its use of GE software and analytics as well.

Exelon had already adopted Predix across its fleet of competitive generators, which includes the largest nuclear capacity in the U.S. Now, the company is rolling out the industrial internet service to its portfolio of six regulated wires utilities, it announced at GE’s Minds and Machines conference Wednesday.

The goal is to work with GE to improve the cost-effectiveness of electrical distribution and prepare for regulatory grid overhauls coming to Exelon’s various markets.

"What we want to do is use the analytics to allow us to be prepared to pivot and support any of the models that may come up," said Brian Hurst, VP and chief analytics officer for Exelon Utilities.

The expansion marks an evolution from the initial Predix application of monitoring the health of discrete generating assets, said Ben Kellison, director of grid research at GTM Research.

"This is one of the first large extensions of a cloud-architected analytics platform in the utility industry, and it’s a strong endorsement from one of the largest companies in the space that there’s value to be had from investing in digitization that crosses functional and business-unit boundaries, in this case generation, transmission and distribution."

A smarter way to keep the lights on

The deal will focus on five key grid modernization efforts: storm preparation, network connectivity, outage prediction, grid asset health and historical outage analysis.

The old way of preparing for a major storm, Exelon Utilities CFO Carim Khouzami explained, would be to split a service territory into large segments and allocate resources ahead of time based on “gut feeling and experience.”

The live data-crunching from GE’s service allows the utilities to pre-emptively dispatch crews based on more granular indicators, like vegetation data, detailed barometric readings and the health of the wires.

The historical outage data can be used to inform decisions about where to harden wires or put them underground, based on an understanding of trouble spots over time.

Putting all the wires underground would protect them from the elements -- at great expense and disruption. GE's data platform can allow a more nuanced cost-benefit analysis.

"We need to invest more in the system, so we can continue to make performance better, but we also have to lower people's bills at the same time," Khouzami said. "Being able to leverage data to find ways to be more cost-effective with how we do the activities we have to do -- to be smart about where we invest our dollars -- that can help us achieve the goals we're trying to achieve."

Regulators across the nation are examining new models for more efficient grid utilization, but the outcomes of those investigations won’t be clear for months or years to come. Operational analytics across the transmission and distribution network will make it easier to benchmark asset utilization and show regulators where new investments make the most impact.

Not just a customer

The agreement goes beyond a conventional vendor/customer relationship, because GE and Exelon will work together to develop new applications for Predix.

The platform remains young. GE fleshed out the initial core applications -- or bought or partnered with other companies that did -- but it still has limited insight into how its customers could customize the platform for their needs day in and day out.

Companies like Exelon are starting to develop their own applications for Predix based on internal IP, and to work with GE to co-develop projects. The new arrangement includes both the traditional vendor relationship and a more collaborative research and development component.

Exelon became an early adopter for its generation fleet and began developing applications for things like nuclear plant operations. If an app they develop could be useful to others, GE can pitch it elsewhere.

"We are out there with lots of other energy companies, and we can say, 'Here's a solution that Exelon helped us develop -- want to buy it?' And Exelon would get a cut of the revenue," said GE Chief Digital Officer Ganesh Bell.

The new deal suggests that if Exelon figures out promising ways to use Predix to reduce storm outages, for instance, that tool could find its way into other utilities' portfolios. That helps them grapple with a shared problem, and it helps GE bring more customers onto its platform

One platform to rule them all

GE has no trouble communicating its breadth of expertise. The main-stage programming at Minds and Machines (the conference it hosted about itself) featured a steady stream of executives talking up the visionary achievements that Predix unlocks for everything from wind farms to gas pipelines.

The challenge is matching that lofty rhetoric with the reality of deployment, which can be slow. The company, though, has bet on its breadth and legacy as a key selling point.

"GE has privileged access to information on a very large set of generation assets,” GTM's Kellison said. “That said, companies need to partner and incorporate asset models outside of their own, as different utility asset managers subscribe to different methods and utilities rarely only use one vendor’s assets, even in one product class."

The transformation from an equipment manufacturer to a tech-savvy service provider didn't happen overnight.

"There are plenty of legacy players; we're the new player," Bell said. "We've gone through the pain of having to transform ourself over the last five years. Now we have a unique set of software capabilities that nobody else has."

The key difference, he said, is not just having cloud-based analytics or services or control software, but linking them all up. GE offers what they call "outcome as a service," where it uses the sensing, analytics and operational controls to produce outcomes like lower fuel use or reduced operations and maintenance costs. Then it sells a subscription service.

"All of those things are outcomes that customers can measure, and we track and deliver those values," Bell said. "If we don't deliver those values, customers will fire our software."

At Minds and Machines two years ago, there were a handful of power producers and utilities that had bought into Predix. Last year, the number rose to 25. This year, 78 utilities were either pilot-testing or moving forward with fleetwide adoption.

This scale is notable in the embryonic world of grid management software, but it's still a tiny sliver of the overall GE pie. New CEO John Flannery will need to consider how much the rest of the company should learn from the digital initiative.

"We're generating new sources of revenue that we didn't generate before," Bell said. "As a business, at the end of the day, for shareholders, we've got to create new value, and here we're showing that it's not the old GE -- we're building a whole new franchise for GE."

--

Come join us for GTM's first annual U.S. Power & Renewables Conference in November. You'll get an in-depth look at how the renewable energy market will interact with the U.S. power market, and how those interactions can impact overall industry development and market growth. Curated by GTM Research, MAKE, and Wood Mackenzie energy analysts, we’ll take an expansive view of key issues and timely topics, bringing together a diverse group of energy experts and stakeholders to discuss demand dynamics, economics and business model shifts, and policy and regulatory implications.

Output: US multinational General Electric (GE) is looking to its digital grid business to help overcome disappointing earnings results. It recently made a deal with the New York Power Authority to increase its use of GE software, while its industrial internet of things unit, Predix, has been adopted or is being tested by 78 companies, with Q3 orders increasing by 50% year on year. Further endorsement for Predix has come from GE Digital's partnership with leading power supplier Exelon, through which the two firms will develop applications for the platform.


Instruction: create a high quality summary of the given input

Input:
Australia reaches 6.1 GW of small-scale renewable energy capacity
 The cumulative small-scale renewable energy capacity in Australia reached 6.1 GW at the end of September, the Clean Energy Regulator said Friday.

The country now has 2.8 million small-scale systems, of which 1.7 million are solar photovoltaic (PV) plants with a combined capacity of just below 6.1 GW. There were also 18 hydropower facilities and 418 wind parks, as well as 1.07 million solar water heater installations, including air source heat pumps.

In September alone, Australia installed 6,927 small-scale systems with a total generation capacity of 36.3 MW. The state of Queensland was the leader in small-scale capacity additions with 2,153 systems installed, as well as in the small-scale commercial PV systems category of between 10 kW and 100 kW, with 149 of new installations. New South Wales ranked second with 1,574 new small-scale facilities totalling 8.2 MW followed by West Australia with 7.8 MW of plants.

Choose your newsletter by Renewables Now. Join for free!

Output: Small-scale renewable energy capacity in Australia has reached 6.1 GW, according to regulators. The figure represents the total at the end of September, with other data released showing that the country installed 6,927 small-scale systems, with generation capacity of 36.3 MW, during that month alone. This brings the total number of such systems across Australia to around 2.8 million, with the vast majority being solar plants, and a smaller number of hydropower facilities and wind parks.


Instruction: create a high quality summary of the given input

Input:
Farmers Bank has created 'systematic risk' for Bangladesh finance
 It says the Farmers Bank is experiencing liquidity crisis for a year and it has deepened to such a level that the bank is failing repeatedly to fulfil cash reserve requirement or CRR at the Bangladesh Bank.

Output: Bangladesh's entire financial sector faces a 'systematic risk' because of irregularities in the operation of a bank run by a former government minister. The Farmers Bank was given its license in 2013 and its Chairman is Mohiuddin Khan Alamgir, the country's former home affairs minister. The Bangladeshi finance ministry has now released a report outlining issues of malpractice at the bank, including making loans to its directors and to organisations that do not exist. It is experiencing a serious liquidity crisis and the ministry warns that the bank does not have the ability to repay its liabilities.


Instruction: create a high quality summary of the given input

Input:
Drax takes stake in renewables firm Aggregated Micro Power
 Drax Group plc (LON:DRX) will take a stake in distributed energy firm Aggregated Micro Power Holdings (AMPH) after selling to it 100% in UK wood pellets supplier Billington Bioenergy (BBE).

AMPH will buy BBE from Drax for GBP 400,000 (USD 527,000/EUR 448,000) in cash and GBP 1.6 million in stock. It will issue a bit over 1.624 million shares to the UK energy group. After the transaction, its issued share capital will be 39.4 million, so Drax’s stake will be about 4.1%.

In a statement today, Drax said the deal is in line with its retail strategy, currently focused on the industrial and commercial and small medium enterprise (SME) energy markets. By taking an interest in AMPH, the company will gain access to the small-scale distributed energy market.

Drax is the operator of the Drax Power Station, originally a coal-fired power plant. Now it is 70% biomass-fired. The plant has six turbines capable of generating 645 MW. The company has shifted its focus to low-carbon energy in recent years.

AMPH sells wood fuels, and it delivers distributed energy projects using biomass boiler, stand-by power generation systems and battery storage installations. Billington, on the other hand, supplies around 40,000 tonnes of wood pellet to commercial customers annually. In 2016 it reported a pre-tax loss of GBP 0.43 million on revenues of GBP 6.8 million.

(GBP 1 = USD 1.32/EUR 1.12)

Choose your newsletter by Renewables Now. Join for free!

Output: UK power company Drax is taking a 4.1% stake in renewables firm Aggregated Micro Power Holdings (AMPH), which delivers biomass-based energy projects and sells wood fuels. Drax had earlier sold AMPH to Billington Bioenergy. The deal is in line with Drax's aim to gain access to the small-scale distributed energy market and reinforces its strategy of serving small to medium-sized companies. Drax owns the Drax power station in Yorkshire, which used to be coal-fired but now is 70% biomass-fired.


Instruction: create a high quality summary of the given input

Input:
Bidders sought to build, manage 100 MW solar power farms in India
 The Northern Coalfields limited (NCL) & South-Eastern Coalfields limited (SECL) – subsidiaries of Coal India limited (CIL), have envisaged the execution of green energy by way of 200 MW installation at Neemuch and Mandasur Solar Park, in the state of Madhya Pradesh.

SECI, therefore, on behalf of Owner (CIL and subsidiaries) has invited bids from eligible bidders to participate. The tender is for Design, Engineering, Supply, Construction, Erection, Testing & Commissioning of two-100 MW (AC) solar PV Power plants, using domestically made cells & modules. The winning bidder should take care of O&M for 10 years.

SECI also scheduled a pre-bid meeting at Coal India limited, Coal Bhawan, Kolkata for clarifications, to be held on November 13.

The installation sites will be Northern Coalfields limited (NCL) and another one for Southern coalfields limited (SECL) respectively. The bidders are required to bid for one of the 100 MW block capacities only.

Popular content

This comes in the backdrop of an MoU signed between Coal India and SECI to install 1000 MW in solar parks in different parts of India.India has set an ambitious target to be achieved by 2022 of 175 GW of solar installations and is rapidly increasing its installations year by year to meet the target.

Author: Ajinkya Waradpande

Output: Bids are being invited for two 100 MW solar power plants in India's Madhya Pradesh state. Solar Energy Corporation India (SECI), working on behalf of Coal India Limited (CIL), is offering tenders to design, construct and commission the projects. The winning bidders will undertake 10 years of operations and maintenance. SECI and CIL have agreed to install 1,000 MW of solar parks across the country as part of India's aim to install 175 GW of solar capacity by 2022.


Instruction: create a high quality summary of the given input

Input:
Japan Renewable Energy builds 10 MW PV facility
 Japan Renewable Energy announced last week that it has completed a 9.8-MW photovoltaic (PV) plant in Kochi prefecture.

The JRE Kochi Kami Solar Power Plant, as it is named, is expected to generate some 12.86 million kWh of electricity per year, enough to meet the annual demand of about 3,574 local households.

Local utility Shikoku Electric Power Company Inc will be purchasing the output. With 35,000 solar panels, Kochi Kami plant is also estimated to offset around 8,376 tonnes of carbon dioxide (CO2) per year. This is the first power plant JRE has in the Shikoku district, according to the company's press release.

With the start of operation of this facility, JRE is running 34 power plants throughout the country including wind parks, the firm noted.

Earlier this week, Singapore’s sovereign wealth fund GIC Pvt Ltd announced that it has made an investment of an undisclosed size in the parent company of JRE.

Choose your newsletter by Renewables Now. Join for free!

Output: Japan Renewable Energy (JRE) has completed work on its first facility in the Shikoku district, a photovoltaic plant set to generate 12.86 million kWh and offset 8.4 tonnes of CO2 per year. Output from the JRE Kochi Kami Solar Power Plant will be purchased by local utility Shikoku Electric Power Company and, when operational, will take JRE's portfolio to 34 facilities.


Instruction: create a high quality summary of the given input

Input:
China's water tunnel to 'turn Xinjiang into California'
 The desert sun shines above the Taklimakan Desert east of Hotan in Xinjiang in October 2006. Photo: AFP

Output: China is developing plans to build the world's longest tunnel to turn a desert in Xinjiang "into California". Engineers are testing ways of building a 1,000 km tunnel to bring water from Tibet to the Taklimakan desert. The project is likely to generate protests by environmentalists but its benefits will be difficult for policymakers to resist, said Zhang Chuanqing of the Chinese Academy of Sciences' Institute of Rock and Soil Mechanics in Wuhan. He said the water shortage in Xinjiang was similar to that of California before a water diversion project turned the state into a rich agricultural area.


Instruction: create a high quality summary of the given input

Input:
Nikon to close camera factory in China due to rise of smartphones
 TOKYO -- Nikon plans to shutter a digital camera factory in China as increasingly sophisticated smartphone cameras undercut the market for cheaper compact models.

The Japanese precision equipment manufacturer will make an official decision at a board meeting Monday. The Jiangsu plant, which employs some 2,500 workers, turns out entry-level compact digital cameras and interchangeable lenses for single-lens reflex cameras. Some production will be outsourced and Nikon will continue to sell cameras in China, where it controls nearly 30% of the market.

Output: Japan's Nikon is closing a digital camera factory in China because of the increased competition from smartphones. The global market for compact digital cameras has plummeted to a 10th of its peak within the past 10 years, and Nikon has warned of another sharp drop in the sales of compact cameras this year. The plant employs 2,500 workers.


Instruction: create a high quality summary of the given input

Input:
Generate Capital raises $200m in equity for clean energy projects
 A massive Alaskan fund created by oil revenues is funneling millions of dollars into a young company that finances and owns clean energy projects.

Generate Capital -- a company launched in 2014 and based in San Francisco -- announced today it has raised $200 million in equity funding to provide capital for energy, water and food infrastructure assets. The Alaska Permanent Fund Corporation, one of the largest sovereign wealth funds in the U.S. and valued at $62 billion, led the round.

The move shows how as clean energy technologies drop in price and grow in scale, major institutional investors are increasingly being attracted. While there’s no shortage of investors for solar and wind projects these days, Generate Capital finances and owns more alternative and smaller distributed energy assets like battery projects, biogas installations, and community solar farms.

The company’s success also shows how innovations in financing can lead to the deployment of clean technologies, whereas other forms of financing, like venture capital, have fallen short.

Generate Capital puts up the capital to get an energy infrastructure project installed and also owns the asset. As the infrastructure delivers revenue over time (as a community pays its solar bill, for example) and potentially saves the customer money (the community has a smaller energy bill), Generate Capital makes a return off of the cash flow.

The company’s investors can get monthly dividends. One day, Generate could potentially exit by going public or getting acquired.

Entrepreneurial investors Scott Jacobs, Jigar Shah and Matan Friedman launched the company in an effort to create a new way to fund emerging energy infrastructure. In just three years, the partners say they've done $500 million in deals.

Generate has worked with partners like solar companies, battery project developers and fuel cell makers. It can issue various types of financing from equity to debt to loans. Since Generate was formed as a company, instead of a fund, it isn't restricted by the typical VC type of 10-year timeline.

They’ve backed community solar farms in Minnesota, water treatment and biogas generating systems at Lagunitas Brewing Company in Northern California, and investments in fuel-cell-powered forklifts at Walmart. Generate Capital is also one of the largest non-utility investors in battery energy storage projects and has worked with battery project developers like Stem.

Shah founded solar project developer SunEdison, and more than a decade ago helped spearhead the business model of investing in what the industry started calling solar-as-a-service. Generate Capital is moving that model beyond solar and into other forms of distributed energy, which the company calls “infrastructure-as-a-service.”

Jacobs, co-founder of EFW Partners and McKinsey’s cleantech practice, described the company as “a mega balance sheet for distributed energy.” Generate Capital chose the Alaska Permanent Fund Corporation as one of its lead investors because the fund’s “vision and values aligned," said Jacobs.

With the new financing, Generate Capital is looking to work with partners that have a bigger pipeline of customers, said Jacobs. The $200 million in equity can unlock $1 billion in investment capacity for distributed energy projects, he said. The company’s original financing came from foundations and endowments.

The Alaska Permanent Fund was created in the mid-1970s by a state constitutional amendment that called for a quarter of the state’s oil money to go into a fund to be used for future generations. That was around the time that the Alaska pipeline was nearing construction.

That such a large state-managed fund has chosen to invest in Generate’s model suggests it has reasonably low risk and stable returns. “It’s a very lucrative place to be if you have the expertise, the mandate, the business model and the right partners,” said Jacobs.

Generate Capital has 27 employees, two-thirds of which make energy infrastructure investments. Jacobs said the “eclectic group” is made up of a mix of former investors in private equity, credit and hard asserts, as well as tech companies.

Over the past few years, cleantech entrepreneurs and investors have been trying to create new models to help deploy technologies to fight climate change. Financing innovation has proven to be one of the more successful.

Output: San Francisco-based cleantech firm Generate Capital has secured $200m in equity funding, in a round led by the state-managed Alaska Permanent Fund Corporation. Generate invests in and acquires alternative distributed energy projects, including Lagunitas Brewing Company's water treatment and biogas generating systems, and Minnesotan community solar farms. Co-founders Scott Jacobs, Jigar Shah and Matan Friedman claim to have done $500m in deals since Generate's launch in 2014, while the new funding will enable them to work with firms that have ambitious customer pipelines.


Instruction: create a high quality summary of the given input

Input:
Tesla announces $340m in bonds for distributed solar
 Even while Tesla has backed off of the aggressive growth pattern that SolarCity was on, the company is still showing its dynamism in financial deals, and continuing to provide a vision for the future.

On the same day that Tesla announced that it has provided electricity to a hospital in Puerto Rico, the Kroll Bond Rating Agency issued a report on what may be the largest solar securitization yet from the company that pioneered the practice in 2013.

According to the report, Tesla/SolarCity is preparing to issue $340 million through two tranches of bonds, backed by leases and power purchase agreements on distributed solar assets.

Popular content

The bonds formally mature in 30 years, but Tesla expects to repay them by April 2028. Kroll provided an A- rating for the first class of $265 million in notes, but has not yet rated $75 million worth of bonds in the second class. No interest rate has yet been assigned.

These notes will be backed by $483 million in forthcoming payments on leases and power purchase agreements, with leases making up 57% of that balance. Kroll estimates that the bonds are around 16% over-collateralized.

Output: Tesla is set to launch one if its biggest solar securitisations to date, with the issuance of two tranches of bonds worth a combined $340m. The notes are backed by $483m in lease payments and power purchase agreements, according to the Kroll Bond Rating Agency, which offered an A- rating for the first class of $265m. The second $75m class has not been rated at this time, and no interest rates have been assigned. Tesla anticipates the 30-year bonds will be repaid by 2028.


Instruction: create a high quality summary of the given input

Input:
PEG Africa raises $13.5m for off-grid solar in Africa
 Solar finance company PEG Africa has raised US$13.5 million for household solar systems in Ghana and the Ivory Coast, which is expected to reach up to 500,000 people.

Customers on US$5-US$10 income per day can access loans for off-grid solar home systems through PEG using pay-as-you-go technology. Small incremental payments are made over a period of time allowing energy access to people who may typically find it unaffordable.

PEG partnered with SunFunder in a multi-currency syndicated loan with six other lenders participating.

The fund was raised through a combination of debt and a series B equity financing, the first round raised US$7.5 bringing the total up to US$21 million.

Hugh Whalan, CEO of PEG Africa, said: “PEG Africa will be able to reach a major milestone of extending energy and financing to half a million people. We are excited that we can now accelerate our growth plans in key West African markets.”

With the growth of the African solar market off-grid finance and syndication is becoming increasingly popular.

In August the World Bank provided US$150 million in credit for off-grid solar for marginalised communities in Kenya. The project is expected to reach 1.3 million Kenyans in 277,000 homes.

More recently, Ugandan PV firm SolarNow received a US$6 million syndicated off-grid financing facility to deliver solar home systems to a wide-range of off-grid communities also through pay-as-you-go.

A recent Global Off-Grid Semi Annual Market report covering the first half of 2017 reported over 120 million people worldwide now have access to off-grid solar. The report showed 3.52 million product sales from January – June 2017 with 1.77 million (50%) accounted for in Sub-Saharan Africa.

Output: Ghanaian solar finance firm PEG Africa has partnered with SunFunder and six other lenders to raise $13.5m in a series B funding round, adding to the $7.5m secured previously. The money will be used to offer solar systems to up to 500,000 low-income people across Ghana and Ivory Coast, using PEG's pay-as-you-go system. Off-grid solar projects have also been funded in Kenya and Uganda, and a recent report revealed 120 million people across the world now have access to off-grid solar.


Instruction: create a high quality summary of the given input

Input:
World Bank approves $35m for energy-grid and renewables in Haiti
 The World Bank has approved two grants of US$35 million in total to improve access to electricity for more than two million Haitians, and to scale-up investments in renewable energy.

The bank noted that more than five million people could be reached through solar PV, adding that only one in three Haitians has access to electricity and access is limited in rural areas.

Anabela Abreu, World Bank’s country director for Haiti, said: “Haiti has significant untapped sources of renewable energy. The country is taking an important step in creating the enabling environment for private investors and in boosting access to electricity. The World Bank Group will continue to support the country in providing sustainable renewable energy to increase access for families, businesses and community services in underserved areas, diversify its energy mix, and reduce electricity cost.”

The World Bank noted potential in multiple renwable energy sources such as solar, hydropower, wind and biomass, as well as off-grid electrification. As part of the grants, two project have been launched: ‘Renewable Energy For All’ and ‘Haiti Modern Energy Services for All’.

These will improve the environment for private investment in clean energy, expand access for rural households through leveraged investments in micro and mini-grids, and finance private operators, NGOs and Community Organizations to provide solar lanterns, and individual and home-based solar systems.

Both projects will be implemented by the energy cell of the Ministry of Public Works, Transport and Communications (MTPTC).

Both grants are from the Climate Investment Fund (CIF).

A Gogla report on the off-grid solar market recently revealed that there has been a 7% drop in off-grid solar and home system product sales worldwide yet the market remains “buoyant”.

Output: More than two million Haitians may receive access to renewable electricity, following the approval of two Climate Investment Fund grants, totalling $35m, by the World Bank. The projects, aimed at simplifying private investment in clean energy on the island, have already been launched. The World Bank said Haiti had potential in solar power, as well as wind, hydropower, biomass and off-grid sectors. According to data from the World Bank, around one third of Haitians have access to electricity.