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2010-01-04 14:33:17 | Weblog
[News] from [guardian.co.uk]

[Environment > Business > Royal Dutch Shell]
Shell accused of abandoning solar power buyers in the developing world
Row over responsibility for sold-off systems has left Sri Lankan communities unable to replace faulty equipment

Terry Macalister
The Observer, Sunday 3 January 2010 Article history

Shell has become embroiled in a major row with the World Bank and green energy companies after allegations that it is unfairly refusing to honour warranties on solar power systems sold to the developing world.

A widespread breakdown of its equipment in Sri Lanka and elsewhere has left the oil firm accused of abandoning a responsibility to impoverished communities while damaging the prospects of the wider renewable power sector in a world desperate to reduce carbon emissions following the Copenhagen climate change summit.

The rural electrification business under which the Shell systems were sold has now itself been passed on – as have most other parts of the group's solar business – but critics say that Shell, which made profits of $31bn in 2008, has a continuing role in ensuring former customers are not left vulnerable.

"Shell exited solar on a global basis, seemingly without due consideration to how after-sales service and warranty replacements would be provided, thereby damaging the very local solar industries it had earlier helped to create," said Damian Miller, a former Shell manager who now heads his own solar business, Orb Energy.

"In Sri Lanka, poor customers with average earnings of $1,500-$2,000 a month have bought Shell's solar systems. The system is equivalent to 30% of their annual income," he added. "They could only afford a system because they could get a loan from microfinance institutions or other banks. But now there are reports of thousands of Shell's [branded] solar panels failing in the field and Shell seemingly is not replacing them."

The World Bank, which provides financing packages to the developing world, said it too was very worried about a situation in which about 700 solar systems appear to have failed and local suppliers risked going out of business.

Anil Cabraal, an energy specialist at the bank's Washington headquarters, has written to Shell asking for action. "I would like Shell to honour these commitments. We are not talking about millions of dollars here but hundreds of thousands," he told the Observer.

The company argues that it is being unfairly targeted and is doing all it can to sort out the problem. It points out that its Shell Solar Sri Lanka business has been transferred to a third-party purchaser, Environ Energy, along with all liabilities. The Anglo-Dutch oil group says the bulk of its former solar module manufacturing operation has also been switched to a new owner, Solar World.

"In October 2007, Shell sold Shell Solar Lanka Ltd to Environ Energy Global PTE Ltd. Specifically in order to protect customer interests, the terms of the transaction explicitly covered the management of all past, present and future liabilities, including warranty issues," said a Shell spokesman in the Hague.

"Environ Energy Global understands that resolution of this issue rests with Environ, but [its] own management team in Sri Lanka continues to approach Shell. We have asked Environ Energy Global to clarify responsibilities with [its] own management team in Sri Lanka."

The situation has been complicated by the fact that Environ claims Solar World will not replace any modules unless it has the appropriate warranty documents. Environ claims those papers were destroyed by Shell prior to the handover to Solar World, although Shell told the Observer this was not true.


[Environment > Guardian Environment Network]
E.ON lights the way ahead with LED streetlamps
E.ON will today launch an LED streetlight that consumes up to 70% less energy than standard lights and promises to deliver a "step change" in the efficiency of lighting infrastructure.

From BusinessGreen, part of the Guardian Environment Network
guardian.co.uk, Monday 4 January 2010 10.43 GMT Article history

E.ON will today launch an LED streetlight that consumes up to 70 per cent less energy than standard lights and promises to deliver a "step change" in the efficiency of lighting infrastructure.

The energy firm already operates a number of lighting contracts for local authorities and private companies and is now looking to offer the technology to new and existing customers.

"We're bidding for a number of highway and streetlighting contracts and wanted to demonstrate a step change within the efficiency of lighting," Rachel Hodge at E.ON Sustainable Energy told BusinessGreen.com.

She added that the long life of streetlamps – contracts typically run for 25 years – means that it is important to install the most efficient systems available at the start of a project or risk being locked into higher levels of energy use.

The new Marlin streetlight has been in development for 18 months and has been tested successfully at a number of E.ON sites, as well as with two local authorities, the company said.

The technology was developed in partnership with West Midlands lighting firm Advanced LEDs, and according to E.ON it represents the first low-energy streetlight to be designed, developed and manufactured entirely in the UK.

Calculations based on data taken from the trial at an E.ON site last year found that an organisation installing just 10 lights would save £33,000 and 63 tonnes of carbon over 25 years. The lights are also expected to last 10 times longer than standard streetlights – lasting for more than 150,000 hours.

The company said that as well as local authority customers, E.ON will target private sector firms which are expected to use the technology to light car parks. E.ON said the lamp also provides improved resolution on CCTV images.

The lights will be produced in Coventry by local social enterprise Remploy and they contain no harmful mercury or heavy metals, meaning they are relatively easy to dispose of at the end of their life.

The announcement comes a fortnight after NGO the Climate Group announced the launch of a major global trial of LED streetlights. The LightSavers initiative was unveiled at the Copenhagen climate summit and will see LED lights trialled in Adelaide, Hong Kong, Kolkata, London, Mumbai, New York, Tianjin and Toronto.

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