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FEATURE-Pioneers show Americans how to live "off-grid"
Reuters: [2008-05-26 09:03:00]
By Tim Gaynor
BISBEE, Ariz, May 26 (Reuters) - With energy prices going through the roof, an alternative lifestyle powered by solar panels and wind turbines has suddenly become more appealing to some. For architect Todd Bogatay, it has been reality for years.
When he bought this breezy patch of scrub-covered mountaintop with views to Mexico more than two decades ago, he was one of only a few Americans with an interest in wind- and solar-powered homes.
Now, Bogatay is surrounded by 15 neighbors who, like him, live off the electricity grid, with power from solar panels and wind turbines that he either built or helped to install.
"People used to be attracted to living off-grid for largely environmental reasons, although that is now changing as energy prices rise," he said, standing in blazing sunshine with a wind turbine thrashing the air like a weed whacker overhead.
Spry and energetic, Bogatay makes few sacrifices for his chosen lifestyle. He has a small, energy saving refrigerator, but otherwise his house is like any other, with satellite television and a computer with Internet service.
"Electric and gas are going to skyrocket very soon. There are going to be more reasons for doing it, economic reasons," he said.
Bogatay and his neighbors at the 120-acre development are among a very small but fast-growing group of Americans opting to meet their own energy needs as power prices surge and home repossessions grow.
Once the domain of a few hardy pioneers, the dispersed movement is now attracting not just a few individuals and families, but institutions and developers building subdivisions that meet their own energy needs.
"It has its roots in 1970s hippy culture and survivalism, but it has now superceded that completely," said Nick Rosen, a trend analyst and author of the book "How to Live Off-Grid."
"Because of technology advancing ... and because of high house and energy prices ... there are a lot more people moving off grid."
INCENTIVES, FALLING COSTS
Rosen estimates that there are as many as 350,000 U.S. households meet their own energy needs, and growing at 30 percent a year.
"As people are losing their homes, or finding the rent or mortgage too much to pay, they are choosing the off-grid alternative because it is so much cheaper," Rosen said
While installation costs for the solar panels, wind turbines, converters and batteries needed to power up an off-grid home were prohibitively expensive a few years back, improved technology and ramped up production has driven down costs significantly.
Popular solar-powered systems are made by Sharp Corp <6753.T>, Kyocera Corp <6971.T> and silicon Valley-based Nanosolar, among others, and according to the website Low Impact Living (click on http://www.lowimpactliving.com/), installation costs have fallen by more than 80 percent over 20 years.
"The cost is falling all the time as there is more and more manufacturing plant coming onstream. In fact, there may even be a glut in solar panels next year which would be very good news for the consumers," said Rosen.
Denmark's Vestas Wind Systems A/S <VWS.CO> is one of the leaders in wind turbine technology.
Ten U.S. states, from California in the West to New Jersey and Pennsylvania on the eastern seaboard, offer incentives including grants and tax credits for solar panel installation under policies seeking a shift to renewable energies.
Power utilities such as Arizona Public Service, the principal subsidiary of Pinnacle West Capital Corp <PNW.N>, is among utilities in several U.S. states that offer subsidies to consumers planning to meet their own power needs, so as to ease demand for a growing on-grid customer base.
"Not only is it getting cheaper to generate non-grid electricity, but it's getting cheap and comfortable to set up your off-grid home, and there are even bonuses from your local utility company for doing so," Rosen said.
FOLLOWING THE MONEY
One clear sign that the off-grid lifestyle is moving more mainstream is that developers and other organizations starting to look at off-grid alternatives, drawn by both environmental arguments and simply the bottom line.
Lonnie Gamble, a developer behind an off-grid subdivision in rural Iowa called Abundance Ecovillage, offers plots at $40,000 that include free wind and solar power from shared systems, as well as water from a rainwater collection system, waste recycling and access to shared amenities including a farm.
The cost of building such a home is little different from that of building any other home, and with a range of energy sipping appliances such as refrigerators, hi-fis and even hairdryers now available, the forced austerity associated with off-grid living is also changing.
"You can have hot showers and a cold beer," said Gamble. "You have no water bill, no sewer bill, no power bill and you can harvest something fresh from the greenhouse ... why would you ever do anything else?"
They are not alone. The Los Angeles Community College District, meanwhile, is steering a drive to take all nine of the district's campuses off-grid this year.
Larry Eisenberg, the district's executive director for facilities planning and development, estimates that, with a combination of incentives including tax credits, grants and rebates, switching to alternative energy will not cost them anything, and will save them $10 million a year in power costs going forward.
"When we began, it was to fulfil our sustainable mandate and fulfil our alternative energy policy, but it eventually became a budget strategy," Eisenberg said, adding that it also had educational value for the district's 180,000 students, who can study the shift as part of their curriculum.
CONTINUING GROWTH
With rising power prices, falling installation costs, and a web of incentives to switch, analysts like Rosen believe the number of users turning to off-grid living in the United States is set to grow to 4 to 5 million in the next five to 10 years.
"I don't think we are going to see half the population of America going off-grid, ever. But I do think, we are going to see continued growth," he said.
Rosen also believes that more people still hooked up to the utilities will switch to energy saving appliances, saving money and becoming "off-grid ready" in the process.
For those who have already embarked on the adventure and have adapted to a lifestyle of eking out their energy sources, with houses designed to maximize light, retain warmth or circulate air for cooling, there is no turning back.
"I like being my own power company," said Chris Allen, a neighor of Bogatay's who has lived off-grid for several years.
"I wouldn't take their electricity if they brought it to my back door. Living like this is financially and mentally very healthy." (Reporting by Tim Gaynor; Editing by Eddie Evans) (For pix click on http://www.reuters.com/news/pictures/articleslideshow?articleId=USN2526865120080526&channelName=environmentNews#a=1) ((tim.gaynor@thomsonreuters.com; +1 480 588 5296; Reuters Messaging: tim.gaynor.reuters.com@reuters.net)) Keywords: ENERGY/OFFGRID
PRESS DIGEST - Indian Business News - May 26
Reuters: [2008-05-26 05:42:00]
MUMBAI, May 26 (Reuters) - Indian newspapers carried the following stories in their print or Web editions on Monday. Reuters has not verified these stories and does not vouch for their accuracy.
ECONOMIC TIMES (www.economictimes.com)
* Reliance Communications <RLCM.BO> is set to acquire UK-based global mobile virtual network operator Vanco in a 100 percent buyout.
* Godrej Industries <GODI.BO> and U.S. meat company, Tyson Foods <TSN.N>, are teaming up for a poultry processing and marketing joint venture in India, with Tyson holding 51 percent stake.
* Mid-sized technology services and IT engineering company, Rolta <ROLT.BO>, is close to acquiring a U.S.-based IT firm in the area of business intelligence.
* Apollo Hospitals <APLH.BO> is looking to buy tertiary level hospitals in Spain and Peru and has lined up 10 billion rupees to finance such deals.
* India's AV Birla Group is in talks with French hotels and business services group, Accor <ACCP.PA>, to bring its budget hotel brand Formule-1 to India, to be opened besides AV Birla Group's More retail chain.
BUSINESS STANDARD (www.business-standard.com)
*India's Reliance Power <RPOL.BO> and GMR Infrastructure <GMRI.BO> are planning to bid for PowerSeraya and Senoko Power which account for more than 60 percent of power produced in Singapore.
* India's Videocon Industries <VEDI.BO> may merge some of its factories to improve efficiencies and boost sales of its brands.
* India's NMDC <NMDC.BO> may review exports to Japanese steel mills and South Korea's Posco <005490.KS> in a bid to increase availibility in the domestic market.
FINANCIAL EXPRESS (www.financialexpress.com)
* IndusInd Bank <INBK.BO> has decided to go for a global depositary receipts offering in the first quarter of the current fiscal year. (Compiled by Aniruddha Basu; Editing by Harish Nambiar) ((bharghavi.nagaraju@thomsonreuters.com; +91 22 6636 9059; Reuters Messaging: bharghavi.nagaraju.reuters.com@reuters.net)) Keywords: INDIA PRESS/
Korea Hot Stocks-Banks, Kyobo Securities
Reuters: [2008-05-26 05:09:00]
SEOUL, May 26 (Reuters) - Stocks on the move on Monday include:
As of 0244 GMT, the main KOSPI <.KS11> was down 1.74 percent at 1,796.11 points, as LG Electronics <066570.KS> and Samsung Electronics Co Ltd <005930.KS> fell on talk of Nokia cutting handset prices.
The index opened 0.78 percent lower at 1,813.63 points.
**BANKS GAIN ON EXPECTATIONS OF PRIVATISATION, M&A RACE**
Shares in banks rose after South Korea's financial regulator said on Friday it will start selling its stakes in Woori Finance Holdings <053000.KS> and Industrial Bank of Korea <024110.KS> this year to accelerate a government privatisation drive.
Shares in Woori Finance rose 1.01 percent to 20,100 won and Industrial Bank of Korea gained 3.26 percent to 19,000 won.
Shares in Korea Exchange Bank <004940.KS> also got a boost after HSBC <HSBA.L> said on Monday that while it was committed to an agreement to buy a majority stake in Korea Exchange Bank, it could not wait forever for government approval.
"This is not likely, but the hope is, if HSBC pulls out, a new deal will begin," said Han Jeong-tae, analyst at Hana Daetoo Securities.
Korea Exchange Bank climbed 2.33 percent to 15,350 won and Kookmin Bank <060000.KS> gained 1.7 percent to 65,700 won.
The banking subindex <.KS51> was up 2.02 percent.
0244 GMT
**KYOBO SECURITIES SURGES AFTER SALE ANNOUNCEMENT**
Mid-sized brokerage Kyobo Securities <030610.KS> surged by the intraday limit of 15 percent after confirming late Friday that its top shareholder, Kyobo Life Insurance Co Ltd, planned to sell its stake in the investment house. [ID:nSEO185053]
Kyobo Securities said in a filing to the Korea Exchange that Kyobo Life, which owns a 51.6 percent stake in the brokerage, was considering selling some or all of its stake after mid-June.
0218 GMT
(Reporting by Park Jung-youn, Park Ju-min; Editing by Jonathan Hopfner and Keiron Henderson)
((jungyoun.park@reuters.com; +82 2 3704 5650; Reuters Messaging: jungyoun.park.reuters.com@reuters.net)) Keywords: MARKETS KOREA HOT/
Seoul shares fall as Samsung, LG Elec decline
Reuters: [2008-05-26 04:47:00]
(Updates to mid-morning)
SEOUL, May 26 (Reuters) - Seoul shares <.KS11> traded lower
on Monday, heading for a sixth straight losing session, led by
techs such as LG Electronics <066570.KS>, on market talk that
Nokia may cut its handset prices and re-enter the Korean market.
Shares in LG Electronics fell 7.53 percent to 135,000 won.
"Rumours have been circulating that Nokia will cut its prices
on handsets by as much as 20 percent, in an attempt to steal more
market share from laggards like Motorola," said Kim Ik-sang, an
analyst at CJ Investment & Securities.
Shares in world No.2 handset maker Samsung Electronics
<005930.KS> lost 4.1 percent to 678,000 won, underperforming a
1.8 percent fall in the wider market.
The Korea Composite Stock Price Index was down 30.5 points to
1,797.63 points as of 0219 GMT, down some 4.7 percent since its
current losing run started on May 19.
"Oil's recent peak is a real drag on market sentiment, and
unless we see some stabilisation in this front, the index could
fall to 1,780," said Bae Sung-young, an analyst at Hyundai
Securities. At last Monday's intra-day high of 1,901 points the
KOSPI had rallied 24 percent from the mid-March low of 1,537.
Analysts said the drop in LG Electronics probably also
reflected investors cashing in on a 46 percent jump in the shares
since the beginning of the year to last Friday's closing, fuelled
by buoyant recent earnings and a strong outlook.
"I think the market is overeacting here, since handset models
that Nokia and LG Elec carry are of different types," said Greg
Roh, an analyst at Korea Investment & Securities.
"Also, handsets undergoing price cuts are expected be those
few unpopular models. Cuts are not happening universally on
Nokia's lines," Roh added.
Airlines such as Korean Air Line <003490.KS> fell as oil
stayed within range of the recent high $135 a barrel, tracking
their peers on Wall Street after the American Stock Exchange
index of airline shares <.XAL> fell another 4.2 percent on Friday
making a 20 percent decline on the week.[ID:nN23337857]
Korean Air Line lost 4.26 percent to 46,050 won and Asiana
Airlines <020560.KS> dropped 4.23 percent to 5,430 won.
However some brokerages posted gains on hopes for merger and
acquisition activity in the sector, after South Korea's Kyobo
Securities <030610.KS> confirmed on Friday after the closing bell
that its top shareholder, unlisted Kyobo Life, was considering
selling its stake in the brokerage after mid-June.[ID:nSEO185053]
Kyobo Securities rose the daily limit of 15 percent for a
second straight session, quoted at 20,400 won. SK Securities
climbed 2.3 percent to 2,895 won.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
((jungyoun.park@reuters.com; +82 2 3704 5643; Reuters Messaging:
jungyoun.park.reuters.com@reuters.net))
Keywords: MARKETS KOREA STOCKS/
Korea Hot Stocks-Kyobo Securities
Reuters: [2008-05-26 04:32:00]
SEOUL, May 26 (Reuters) - Stocks on the move on Monday include:
As of 0218 GMT, the main KOSPI <.KS11> was down 1.65 percent at 1,797.79 points, as LG Electronics <066570.KS> and Samsung Electronics Co Ltd <005930.KS> fell on talk of Nokia cutting handset prices.
The index opened 0.78 lower at 1,813.63 points.
**KYOBO SECURITIES SURGES AFTER SALE ANNOUNCEMENT**
Mid-sized brokerage Kyobo Securities <030610.KS> surged by the intraday limit of 15 percent after confirming late Friday that its top shareholder, Kyobo Life Insurance Co Ltd, planned to sell its stake in the investment house. [ID:nSEO185053]
Kyobo Securities said in a filing to the Korea Exchange that Kyobo Life, which owns a 51.6 percent stake in the brokerage, was considering selling some or all of its stake after mid-June.
0218 GMT
(Reporting by Park Ju-min; Editing by Jonathan Hopfner)
((jungyoun.park@reuters.com; +82 2 3704 5650; Reuters Messaging: jungyoun.park.reuters.com@reuters.net)) Keywords: MARKETS KOREA HOT/
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