A Resurgence of Growth in Renewable Energy
By Jenny Bieksha, Bishop & Associates Inc.

Renewable energy is one sector the connector industry is certain to see significant growth in as we look forward to an industry upturn in 2010. While the amount of downsizing and project holds that occurred in 2008-2009 impacted revenue growth overall, many companies were focused on protecting their R&D resources and existing projects. Growth will be fueled by design and technology innovation, allowing for product cost reductions and installation cost reductions.

Utilization of existing technologies and products from other markets will intensify. As an example, high reliability and harsh environment connectors, traditionally used in defense, avionics, downhole drilling, and undersea cabling, are now being utilized in wind and solar applications. Wireless products will see increasing use in utility-scale solar and wind farm applications. The Smart Grid will help provide consumers with the information, automation, and tools they need to control and optimize energy use. Many of the Smart Grid technologies are already used in other applications, such as manufacturing and telecommunications, and are being adapted for use in grid operations.


Wind Energy

Wind power continued to grow in 2009 despite the economic downturn. The Global Wind Energy Council (GWEC) announced that 37.5 GW of new wind capacity was installed in 2009, bringing the total installations up to almost 158 GW—this is a 31 percent increase from 2008. The global wind market for turbine installations in 2009 was worth about $63 billion. There is optimism about the near-term outlook for wind power globally; however, project financing is still tight.

Wind power is now an important player in the world’s energy markets and is quickly becoming the power technology of choice in a growing number of countries around the world. The technology is clean, reliable, and quick to install. The main markets driving this significant growth continue to be Asia, North America, and Europe, each of which installed more than 10 GW of new wind capacity in 2009.

China was the world’s largest market in 2009, nearly doubling its wind generation capacity from 12.1 GW in 2008 to 25.1 GW at the end of 2009, with new capacity additions of 13 GW. Wind was the fastest growing source of clean energy (or energy at all) in Europe in 2009. In 2009, 39 percent of new power capacity was from wind, compared to 26 percent from gas, and 16 percent from solar photovoltaics. 

Top countries for installed wind capacity in 2009:

1. U.S.:

2. Germany:

3. China:

4. Spain:

5. India:

35.2 GW of installed capacity, up from 25.2 GW in 2008 (26.5 percent increase)

25.8 GW of installed capacity, up from 23.9 GW in 2008 (5.1 percent increase)

25.1 GW of installed capacity, up from 12.1 GW in 2008 (34.7 percent increase)

19.1 GW of installed capacity, up from 16.7 GW in 2008 (6.6 percent increase)

 10.9 GW of installed capacity, up from 9.7 GW in 2008 (3.4 percent increase)

The supply chain to the international wind power industry has expanded significantly. The result is that just two years after the supply chain was stretched for several key components, the wind turbine industry and its suppliers will now be able to meet anticipated global demand going into 2013. A large number of new suppliers have entered the market, particularly in China and the U.S., the two fastest growing wind power markets in the world. This remarkable turnaround in the supply capacity now available to the wind industry is certain to lead to extreme competition. There will also be an increased focus on quality improvement and cost reduction.

Wind Interconnect Activity

Efficiencies in the wind market may be realized by reducing costs associated with product, assembly operations, and maintenance. Wind energy systems must be installed and commissioned within extremely short time frames. Investment in a wind turbine is only profitable when it operates without interruption and with as little maintenance as possible. According to Eric Freid, global director for wind energy at Tyco Electronics, increased performance expectations are driving the need to deliver product solutions that increase the ease and reliability of installation within the wind farm. One such solution may be Tyco Electronic’s T-Body Elbow connector with aluminum and copper shear bolts. The elbows are designed to terminate underground cables to high-voltage apparatus, such as transformers and switchgear. They are fully shielded and fully submersible, meet the requirements of IEEE Standard 386, and are interchangeable with other manufacturer’s products that conform to this industry standard.

While many industry standard connectors cross markets directly into renewable energy applications, there are also significant opportunities to enhance existing designs to provide solutions for problem areas. Bruce Burroughs, Wieland Electric wind business development manager, describes how Wieland is “launching industry specific modifications to their standard connectors that enhance already robust corrosion protection, with specially treated surfaces to hoods and housings.” The new housings from the industrial multipole connector series revos BASIC and revos MINI are highly corrosion-resistant and optimally dirt-repellent. The smooth black, glossy finish also withstands mechanical wear, is particularly scratch and abrasion-proof, as well as resistant to organic solvents. Their innovative surface finish is extremely robust and weatherproof. Based on these excellent protective functions, the industrial multipole connectors can be used in extremely rough and highly corrosive environments, such as in offshore wind parks.


Solar Energy Market Begins Recovery

The global solar industry faced its greatest challenges in 2009. For the first time, the photovoltaic (PV) market endured a major market downturn, experiencing a significant reduction of both megawatt and revenues. Market conditions improved in late-Q4, with new solar PV projects opening in Europe. There have also been reports of increased product lead times, and some suppliers of solar panels are out of inventory going into 2010.

This is a promising sign for a market that suffered significantly due to oversupply in early 2009. However, there are still many suppliers with excess capacity and pricing pressure is ongoing. Lack of available project financing, equipment oversupply, and drops in demand from end customers have hit manufacturers and developers alike. This has resulted in a market-wide shakeout in which the less stable companies have been forced to sell operations or exit the market. However, as financial conditions begin to stabilize, demand is beginning to ramp up. Many of the industry sources express cautious optimism that the worst of the recession is over, and that 2010 will see growth resume.

In terms of PV shipments to the first point of sale, forecasts project between five and six GW being shipped into the global market in 2010, up from approximately 4.5 GW in 2009. There will be margin pressure throughout the supply chain. Merger and acquisition activity will increase, with some companies either being absorbed or going by the wayside. The sales channel will continue to expand and the presence of electronics manufacturers (EMS) is likely to increase, as seen by recent contract awards to large EMS companies.

In solar PV, new stabilized efficiency levels for thin-film solar have been confirmed. As reduced costs continue to be driven out of the solar module, attention is turning to the balance of system costs, such as inverters and racks. At the project development level, the increasing utility interest in large, ground-mounted PV systems is presenting a valuable opportunity to expand the scope of solar PV. Rather than building all planned site capacity at one time, deployment is taking place in smaller increments, thus offering long-term business prospects.


Micro Inverters in PV Applications

While not fully proven over a full PV system lifespan, micro inverters continue to drive interest in the PV sector. With micro inverters, the traditional array design—a central inverter fed by DC power collected from an array—is gone. Instead, a small inverter is attached to the back of every module in the array where it converts DC current directly into AC, and sends it down a series line to combiners, and ultimately to a meter. Advantages include:

  • AC wiring from inverter to inverter eliminates DC wire losses

  • Measuring DC current at each module, sending the data to a communications hub through the AC conductors, eliminating the need for parallel communications line

  • Panel mismatch losses are eliminated, and the loss of one panel will not affect output from neighboring panels

There are obstacles to overcome, as the technology is still more expensive than conventional DC inverters, and is largely unproven. Given time, there are some who believe that micro inverters could become the future industry standard.

Glitter-sized Solar Photovoltaics

Innovation comes in all sizes, shapes, and forms. While this product is still in development, the potential for new applications is fascinating. Sandia National Laboratories scientists have developed tiny, glitter-sized photovoltaic cells that could revolutionize the way solar energy is collected and used. The solar particles, fabricated of crystalline silicon, hold the potential for a variety of new applications, improved performance, and the potential for reduced costs and higher efficiencies. Eventually, units could be mass-produced and wrapped around unusual shapes for building-integrated solar, tents, and possibly, clothing. What does this mean for suppliers of electronic products? Photovoltaic modules made from these microsized cells for the rooftops of homes and warehouses could have intelligent controls, inverters, and even storage built in at the chip level.


Solar Interconnect Activity

At the interconnect level, working directly with leading manufacturers of alternative power equipment to develop products for their specific needs provides opportunity for innovative solutions. Mike Peppler, regional business unit manager for Device Connection Technology at Phoenix Contact, views the global marketplace as being primed for product innovation. “Interconnects have been done the same way for a long time, but many companies are now being creative in how they build, install, and integrate the parts of their system. Our strength is being able to help them develop the connectors, cables, and other components that will enable them to deliver unique products,” he says. “The product requirements and innovation, particularly in the solar market, are directed at making the systems easier to install, making them more reliable, and lowering installed costs. Customers are not always looking for catalog solutions; they want partners who can help them design solutions.”

Product innovation is highlighted in the single-pole DC SUNCLIX connector for solar modules that terminates without crimp tools. The wire is attached to the contact with a spring-cage termination; the installer simply snaps the contact to the conductor by hand or with pliers. The connectors can be unmated with a standard screwdriver; no special tool is needed. A new junction box designed for automated solar module assembly can be quickly and robotically attached to a module, eliminating the need for manual attachment to the tabs; no-screw terminals or soldering.

Attention to high reliability demands for solar applications, and mitigating the possibility of DC arc faulting, is demonstrated in the Wieland Electric PST connector design. Doug Eakin, Wieland Electric’s solar business development manager, said, “Since there is no orientation of the contact in the hand tool and the contact has a funnel entry, bad crimps are greatly reduced helping to ensure higher reliability. The precision machined contacts typically perform with less than a milliohm of resistance, and can handle up to 40 amps. To minimize voltage drops and power loss, the contact can accommodate up to 10mm cable. The contact extraction process is simple and straight forward. Verification of the quality of the crimp can thus be achieved.”

Solar module failure, due to shadowing or soiling, can be a significant issue in solar PV applications. Yamaichi Electronics has designed an innovative solution to mitigate this problem. Featuring SMD diode technology, the
Y-Sol® Universal J-Box shows approximately 40 percent less heat development compared to junction boxes with conventional radial diodes. According to Greg Schweitzer, national sales manager, “If one module fails due to shadowing or soiling, the bypass diodes will ensure that the current is conducted around the affected cell areas.” Other customer-focused features include: time-saving assembly and automated contacting due to spring contacts, space-saving installation due to one of the flattest designs on the market today, and material cost savings, as resin filling of the junction box is not required due to the sealing material in the lid.

Wireless Technologies

As renewable energy sources, such as wind and solar, become an ever more compelling solution for power generation, utility operators are looking for ways to maximize their investment in communication networks, while ensuring reliable, secure data transmission across them. As the industry continues its fast-paced growth, the need to identify ways to lower infrastructure costs, improve time to market, and increase performance with reliable, easily installable networks is no longer a wish—it is a requirement.

Today’s solar and wind utilities have a number of options they can utilize for communications needs, including;

  • Wired (copper, fiber, Ethernet cable)

  • Cell phone/satellite

  • Wireless data radios

  • ZigBee

  • Hybrid networks (a mix of fiber, data radios, satellite, or cell phone-based technologies).

With wind turbines and solar power generation, systems can often benefit from the cost savings of wireless vs. fiber optic cable. While fiber can be an expensive and time-consuming process to install, wireless technologies are easily deployed. Wireless technologies can support all types of solar power generation models, from solar troughs, dishes, tracking PV, and heliostats.

Advantages to wireless systems include:

  • Wireless systems are relatively maintenance-free, or easily maintained.

  • Wired options are priced by the foot. With wireless systems, the pricing may cover ranges expressed in terms of miles. Some types of wireless radios have been proven to communicate over 60 miles line-of-sight.

  • Wireless systems are offered at a variety of speeds, interface protocols, and security.

  • The technologies are already used successfully in extremely harsh conditions with high vibration requirements (military and farm vehicles, and robotics), and relied upon in mission-critical monitoring, controlling, and data acquisition situations, in the harshest weather and RF conditions.

The advances of wireless technology in the renewable energy markets are expected to increase, providing a long-range, reliable, and affordable solution to providers. There are multiple connector solutions in wireless applications available today, which can be crossed into the renewable energy market.

Smart Grid

If you are not yet familiar with the term “Smart Grid,” you will soon be hearing a lot more about it. The traditional electric power grid will be replaced by smarter components that talk to each other in two-way communication. The smart grid will include new technology that captures wind and solar power, and will include in its infrastructure, power for plug-in vehicles, automated power meters in homes/businesses, and more.

Today’s power grid is a one-way transmission and distribution network, which allows utilities and other generation companies to deliver power to residential, commercial, and industrial customers. Smart grids will increase the connectivity, automation, and coordination between these suppliers, consumers, and networks that perform either long distance transmission or local distribution tasks.

A smart grid delivers electricity from suppliers to consumers using two-way digital technology to control appliances at consumers’ homes to save energy, reduce cost, and increase reliability and transparency. This modern electricity network is being promoted by many governments as a way to address energy independence, global warming, and security issues.

Some of the benefits of this network include the ability to reduce power consumption at the consumer side during peak hours, called “demand-side management” (DSM); enabling grid connection of distributed generation power (with photovoltaic arrays or small wind turbines); incorporating grid energy storage for distributed generation load balancing; and eliminating or containing failures, such as widespread power grid cascading failures.

Demand-side management for consumer interface to the grid includes:

  • “Smart meters” that provide two-way, near-real-time data communications between the utility and consumer

  • “Smart appliances” that provide data communications and control options

  • “Smart interfaces” that integrate distributed energy resources, demand response resources, or other energy loads and storage devices such as plug-in electric and hybrid electric vehicles

A smart meter is an integral component in the smart grid infrastructure, and wireless applications are at the heart of advanced metering communications systems. Wireless communications networks supporting advanced metering systems will provide faster and more accurate use, load, and disruption information, helping utility companies plan and manage their resources more efficiently and effectively. Integrated communications will allow for real-time control, information, and data exchange to optimize system reliability, asset utilization, and security.

Many of the smart grid technologies are already used in other applications, such as manufacturing and telecommunications, and are being adapted for use in grid operations. The continued development of true “plug and play” interoperability will promote the same widespread deployment in renewable energy and distributed generation that occurred with personal computers and cell phones, bringing a profound transformation to electric generation. The global market for the smart grid will continue to expand rapidly and be very competitive in the next five to 10 years.


Jenny Bieksha
Director, Renewable Energy, Medical, and Test, Measurement, and Instrumentation, Bishop & Associates Inc.

Jenny Bieksha joined Bishop & Associates in 2008 as its market segment director for the renewable energy, and the test, measurement, and instrumentation markets. She is currently a management consultant specializing in strategic business planning, with an emphasis on the development of program, market, and product plans. Bieksha has more than 20 years of experience in the electronics industry, with a background in market management, business development, channel sales, product management, and operations for ITT Corporation, Delphi Connection Systems, and Hughes Aircraft Company.


Bieksha has a bachelor of science degree in marketing from the University of Wyoming, and has since received her certificate as a project management professional.

 

 

 


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