mokkikunta

Moura Renewable Energies Project

2008-07-24T00:12:00.024+01:00

Image by mobreporter , some rights reserved

Alentejo is a region with low population density, occupying almost 33% of the area of Portugal and having only 5.2% of its inhabitants. As one of the European regions with greater population decrease, it will only be possible to reverse the economic decline through a population influx.

So far, Alentejo has no cities with sufficient dimension to achieve economies of scale, partly because of a weak urban system, which is blocking its development. However, Évora, with approximately 50,000 inhabitants, presents a very positive dynamic with some potential to reverse this negative trend.

For an effective regional development of Alentejo, it is critical to achieve the Alqueva Multi Purpose Project (Empreendimento de Fins Múltiplos do Alqueva) in its whole potential - agro-industry, agriculture, irrigation, tourism and renewable energies. This can be a great opportunity to develop the potential of Alentejo in the production of electricity from renewable sources, with emphasis on solar photovoltaics. The production will be carried out by centralized PV power plants, the Alqueva Hydroelectric Plant, small hydro plants, mini PV power plants and micro-generation.

The functional specialization, as a mechanism for creating competitive territories and stable employment, migth be a solution in the particular case of the Moura city and the surrounding territory, by the the promotion of a regional cluster in the area of solar PV and innovation.

Economic Viability - Commitments to development between 3 “actors” (central Government, Municipality and the private sector)

The economic viability of the project and the Government decision in terms of energy policy enabled a subsidised tariff, as well the following counterpart for the installation of the power plant:

- Construction of PV module assembly factory

- Establishment of a 3 M € Social Fund , contributed by Acciona and managed by a Commission formed by the CMM, DGEG and Acciona , that will be applied to the development of infrastructures to be owned by the municipality(CMM):

• Construction of a Laboratory of Renewable Energy

• Programme of dissemination and promotion of renewable energies

• Support for Research and Development

• Support for micro-generation

PV module assembly factory (MSF - Moura Fábrica Solar)

A €7.6 million PV panel manufacturing plant (MSF) will provide panels for the second stage of the Amareleja power station construction. The factory, located in Moura municipality (Amareleja parish, Baldio das Ferrarias), is being constructed by Acciona and became operational in December 2007. Its future production will be targeted at the international market, with a capacity of producing 24 MW of solar panels annually.

Economic Viability (because of the large size of the power plant)

Actually, the market for applications to be connected to the grid with significant centralized power installed (> 10 MW), is receiving particular attention from the investors.

Several economical reasons can be referred for this market trend:

- the high global demand has driven a significant increase in the Silicon price, causing an increase in the cost of PV panels and aggravating significantly the cost of the system (including installation) – the centralized facilities can be a solution to minimize these prices.

- centralized power plants allow large-scale orders, achieving significant reductions in the unitary cost of PV panels.

- central facilities allow potentially maximize the productivity of the electrical system by optimizing the exposure of the panels on the ground.

Some data:

Production: 24 MW / year (minimum annual production capacity)

Investment: 7.65 M €

Start of production: December 2007

Jobs: 115 direct jobs

Minimum Work Period: 10 years

Possibility of doubling the annual production.

Industrial unit of exporting capacity.

Anchor unit of the Technological Park to be installed.

A development strategy

A development strategy has the goal of creation of a cluster in the field of solar energy. To achieve this objective it will be necessary to implement the centralised PV power plant and the PV module assembly factory (previously described), as well the Moura Technological Park (Tecnopólo de Moura), that will be managed by the municipal company “Lógica – Sociedade Gestora do Parque Tecnológico de Moura, E.M.”

Moura Technological Park by Renewable Energy as a progress factor for the Community, Municipality of Moura, C3P & NASA Technical Workshop 2007

Moura Technological Park

( total area ~35 ha)
UP11 – detail plan
PV module assembly factory
Laboratory of Renewable Energy
Research and Development
Installation of new businesses
Sustainable construction: Headquarters Building and Park Housing
New sources of energy

Support for Micro-generation

- Financing and supporting the installation of photovoltaic panels and solar thermal panels in households.

- Encouraging the spread of mini- centrals in institutions. Currently, there are already 3 installations : Professional School of Moura, Secondary School de Moura and BI School of Amareleja.

Despite the PV market trend, small-scale applications, grid connected, have more sustainable future, especially those relating to integration into buildings. Here are some reasons for that:

- Building-Integrated Photovoltaics (BIPV) materials can play additional functions to the generation of electricity, which should be a critical factor to the solar PV competitiveness, in the absence of government incentives.

- generally, renewable energy sources have low energy density. That require an extensive use of land for the installation of a particular power. Given the current trend of significant increase of the penetration of renewable energies in the energy systems, it is expected fierce competition for land resource. In this sense, the PV energy is in a privileged situation, if the market would be targeted for available buildings areas and other urban structures.

Development of the City and the Region

Sustainable Energy and Buiding - Urban Network for Competitiveness and Innovation, by ECOS Project

Establishment of companies
Local generation of wealth
Economy requalification

Qualified employment creation
Installation of critical R & D capacity

International affirmation of the Moura city

Stimulation of specific segments of tourism
Relationship with other potentials (Alqueva, Termas, Heritage)

Respect and enhancement of high environmental value of the region
A municipality exporter of energy produced from renewable sources

References:

Renewable Energy as a progress factor for the Community, Municipality of Moura, C3P & NASA Technical Workshop 2007

Rodrigues, Maria João; Energia Solar Fotovoltaica, spes.pt - Energias Renováveis

PNPOT, Programa Nacional da Política de Ordenamento do Território,territorioportugal.pt

This article is the part 3 of the article: “Alentejo: Solar Region”

“Photovoltaic Solar in Portugal” - part 1 of the article: “Alentejo: Solar Region”
“Moura (Amareleja) Photovoltaic Power Station” - part 2 of the article: “Alentejo: Solar Region”

Moura (Amareleja) Photovoltaic Power Station

2008-07-17T01:11:00.028+01:00

Aerial view of Amareleja by amareleja.com.sapo.pt

A 46 MWp (62 MWp in the 2nd phase) single-axis tracking system centralised photovoltaic (PV) plant in the Portuguese region of Alentejo (Moura municipality, Amareleja parish), promoted by the local municipality and Acciona Energia (Spain), is expected to be completed by the end of 2008.

The plant will have the highest power so far installed in the world with this technology. The installation of 46 MWp power represents an investment of approximately 250 million euros.

Until now there was installed 30.41 MWp - 66% of the total planned capacity. The installation work will continue through the summer and the plant - which already partially injects electricity to the grid with 3.18 MW operational from the end of 2007 - will likely become fully grid connected later this year.

The power plant will generate 90 million KWh a year, equivalent to the consumption of 30, 000 Portuguese homes. It has 2,520 Buskil solar trackers, 141 m2 each one, supporting 262,080 photovoltaic modules.

For the first phase of the solar plant that Acciona Energia is building in Moura, the company signed a contract with the Chinese company Yingli for the supply of PV panels. This agreement takes into account the extension of the supply for a second phase of the plant - 20 MW is planned to begin in 2009 and end in 2010.

Specifications of Moura Photovoltaic Power Station

Moura Photovoltaic Power Station by Renewable Energy as a progress factor for the Community, Municipality of Moura, C3P & NASA Technical Workshop 2007

Area occupied by power station: 130 ha (total area = 250 ha)

Installed rated power: 62 MWp (46 MW- 1st phase / 62 MW - 2st phase)

Annual electricity generation: 90 GWh (equivalent to the consumption of 30, 000 Portuguese homes)

Power transformers: 22

Inverters: 214

CO2 avoided: it will prevent the emission of 86,500 tons per year of CO2 from coal-fired power stations

Investment - ~ 250 million euros

Conclusion -1st phase: 2008; Conclusion -2st phase: 2010

A new land use - the sun as a resource

Aerial view of Amareleja, Google Earth

The total area in the parish of Amareleja, near the border with Spain, comprehends more than 250 hectares of land, the vast majority without any agricultural or forestry aptitude. The occupation of this space for the installation of a power plant represents the allocation of an economic function to a territory that was excluded from the local economy.

Some data:

2,200 KWh/m2
Sum of global annual irradiation, focusing on a photovoltaic module with optimal orientation for midday.

1,650 kWh / KWp
Sum of annual photovoltaic energy generated by 1 KWp with a performance of 0.75

Orography: adequate throughout the mainland and particularly in Alentejo region

Sun exposure: optimal angles - 33 to 34 degrees

Some engineering features

Amareleja power plant by amareleja.com.sapo.pt

The first phase of work will include Acciona’s single-axis Buskil trackers fitted with modules and also modules on fixed steel structures. The produced electricity will be transformed to 60 kV for evacuation to the grid at Alqueva. The project includes a control centre of the power plant, which will have an area for educational visits related to renewable energies.

Solar Trackers:

807 / 1713 = 2520 units (total 1st phase)
2520 solar trackers Buskil ( Acciona Solar technology) on 141 m2 (13 m length and 10.8 m high)

Reserved area of 848 m2 per structure

Oriented at the 45 ° fixed inclination and capable of 240 º East-West rotation movement following the sun across the sky.

Movements determined by coordinates previously entered

Modules:

104 polycrystalline silicon modules in each solar tracker (total = 262,080 PV modules)

48 cells (in serie) / each module;

Voltage: 23V at the point of maximum power / 29 V open circuit;

Electric current I: 7.4 A in the point of max. power / 8.1 A in short-circuit;

170 and 180 Wp capacity

Polycrystalline silicon modules, which consist of multicristaline silicon cells covered by an antireflective layer

Lifetime: more than 25 years

Project financing

In September 2006, the Spanish company Acciona, leader in the renewable energies sector, has acquired all the stocks of the owner of the installation rights (Amper-Central Solar SA) after a long process of consultation and negotiation with several companies and entities. Earlier, the Municipality of Moura had 88% of the capital, Renatura 10% and Comoiprel the remaining 2%. According to the President of the Municipal Chamber of Moura, it was essential to find a partner with the financial capacity to develop the project.

At the time, the municipality stated that the aim of the contract was the acquisition of the entire social capital of Amper, allowing the construction of the Central Solar of Moura with the initial installation (up to 2008) of 40 to 45 MWp and with the possibility of installation (until 2010) for more than 20 MWp. It also enabled the installation of a PV module assembly factory in Moura, as well a Fund of three million euros for the development of research projects related to renewable energies.

Indeed, single municipalities usually don't have sufficient financial capacity to realize big local projects like this one. To achieve this investment, the municipality had to sell its capital shares. As intermunicipal cooperation hasn’t worked in these cases, we may wonder whether the implementation of the administrative region of Alentejo might be a strong factor for maintaining environmental investments, partially or totally, in the hands of the region. The challenge will be to maximize the benefits (social-economical-environmental) of local populations, not the profits of global corporations .

In the next article we will describe the Moura Project on other main “tracks”: Moura Solar Factory (MFS), Moura Technological Park and the Micro-generation program - in the context of the Regional Development strategy.

References:

Renewable Energy as a progress factor for the Community, Municipality of Moura, C3P & NASA Technical Workshop 2007

Notas de prensa, www.acciona-energia.com

Publicações do MEI - Livros de Energia, Ministério da Economia e da Inovação

This article is the part 2 of the article: “Alentejo: Solar Region” “Photovoltaic Solar in Portugal” - part 1 of the article: “Alentejo: Solar Region”

É urgente regionalizar o Alentejo?

2008-07-13T19:53:00.008+01:00

Solar power plant (Serpa, Portugal), commons.wikimedia.org

Portugal é um dos países europeus com os mais elevados níveis de radiação solar (especialmente a região do Alentejo), beneficiando de excelentes condições para a conversão fotovoltaica. Com o objectivo de reduzir as importações energéticas através da substituição por fontes de energias renováveis locais e reduzir as emissões de gases efeito estufa, o actual governo português reviu os objectivos definidos em 2003: aumentar a meta de 2010 para produção de energia baseada em energias renováveis, de 39% para 45% do consumo total de electricidade.

Continue a ler

Os investimentos na área dos sistemas fotovoltaicos podem criar empresas de produção, engenharia, instalação e manutenção, gerando emprego qualificado, especialmente a nível local.

Para garantir os objectivos fixados em relação ao solar fotovoltaico, será necessário garantir a construção da maior Central Eléctrica Fotovoltaica do mundo, no município de Moura e garantir ligação aos objectivos da micro-geração. A Central Fotovoltaica de Moura representa cerca de 30% dos objectivos da energia fotovoltaica em Portugal (meta nacional de 150 MW).

O Alentejo é um território com muito baixa densidade populacional, ocupando quase 33% da superfície de Portugal e tendo apenas 5,2% dos seus habitantes. Sendo uma das regiões europeias onde se verifica maior decréscimo populacional, só será possível inverter o declínio económico através dum afluxo populacional .

O Alentejo não possui cidades com dimensão suficiente para obter economias de escala, em parte, devido a um sistema urbano fraco e bloqueador do seu desenvolvimento regional. No entanto, Évora, com aproximadamente 50 000 habitantes apresenta uma dinâmica bastante positiva, com algum potencial para inverter esta tendência .

Para um efectivo desenvolvimento territorial alentejano, torna-se crucial a realização do Empreendimento de Fins Múltiplos do Alqueva em todos os seus potenciais - agro-indústria, agricultura de regadio, turismo e energias renováveis. Surge assim uma grande oportunidade para aproveitamento das potencialidades do Alentejo no campo produção de energia eléctrica a partir de fontes renováveis, com destaque para a solar fotovoltaica. Tal produção será realizada por centrais solares fotovoltaicas centralizadas, pela Central Hidroeléctrica de Alqueva, por centrais mini-hídricas, mini-centrais fotovoltaicas e pela produção e venda de energia por particulares.

É neste contexto que poderão acompanhar através do seguinte link uma série de artigos focados na energia solar fotovoltaica em Portugal, em especial no Alentejo (Photovoltaic Solar in Portugal - part 1 of the article: “Alentejo: Solar Region”) [Em inglês]

No entanto, coloca-se uma questão: para projectos de investimento de maior dimensão, municípios isolados não possuem a capacidade financeira para os realizar, sendo obrigados a alienar as suas participações no capital destas empresas. Visto que, nestes casos, a cooperação intermunicipal não tem funcionado, pode-se questionar se a implementação da Região administrativa do Alentejo não poderia ser um factor de peso para que investimentos de carácter ambiental ficassem, total ou parcialmente, nas mãos da Região (e consequentemente do país).

Tal como o poder económico (traduzido na riqueza produzida) não tem escorrido da classe dominante para a larga maioria da sociedade, também o poder politico não fluirá facilmente do poder centralista para as regiões e municípios. Para que tal seja possível, é importante que as populações se organizem e mobilizem de forma efectiva e participativa, numa base local (quer a nível municipal quer a nível de freguesia) com o objectivo de reivindicar a Regionalização e a ao mesmo tempo defender a sua autonomia local. Num quadro de cooperação com os municípios vizinhos, inclusive os das regiões espanholas.

Nesse sentido proponho a participação na mini-sondagem: É urgente regionalizar o Alentejo? (topo da primeira coluna do site).

Photovoltaic Solar in Portugal

2008-07-10T23:42:00.031+01:00

Spain & Portugal - global irradiation & PV potential for optimum angle
Šúri M., Huld T.A., Dunlop E.D. Ossenbrink H.A., 2007. Potential of solar electricity generation in the European Union member states and candidate countries. Solar Energy, 81, 1295–1305, re.jrc.ec.europa.eu/pvgis

Portugal is one of the European countries with the highest levels of solar radiation (particularly the Alentejo region), enjoying excellent conditions for photovoltaic conversion with generating indices of about 1500 kWh/year for each installed kWp (in optimal conditions). For example, in terms of average annual number of hours of sun Portugal varies between 2,200 and 3,000 h, while Germany varies between 1,200 and 1,700 h.

Read more
Until 2007 there were predominantly local isolated autonomous systems (<20 kWp). Afterwards, new solar power projects for centralised systems emerged, adding more than 14 MW to the installed capacity in 2006 (3,4 MW) - an increase of more than five times. Among these systems, the following started operation in 2007:

- 11 MWp single-axis tracking power plant in east Alentejo (Serpa municipality)
- 2,15 MWp two-axis tracking power plant in south Alentejo (Almodovar municipality)
- 756 kWp a-Si plant in Mertola (south of Portugal, Alentejo region)

Cumulative PV Power Capacity Installed in Portugal (1995-2007)
Image: IEA-PVPS - Portugal country report 2007

As we can note, the Portuguese PV market increased strongly in 2007, from a cumulative power of 3,4 MWp to 17,8 MWp, due to the completion of the mentioned power plants.

A 46,4 MWp (62 MWp) single-axis tracking system centralised PV plant in east Alentejo (Moura municipality), promoted by the local Municipality and Acciona Energia (Spain), is expected to be completed by the end of 2008.

There is also a great potential for integrated systems in buildings (BIPV). This can lead to a creation of a sustained market - the installation of 1.5 kWp systems in new buildings could result in an annual potential of 60 MWp.

Cluster of Photovoltaic

Open Renewables, Lobo Group: produced high quality photovoltaic modules on an exclusive basis for Siemens Solar, from 1994 to 2001 and for Shell Solar, from 2001 to 2006. It is an independent producer since 2007, currently with an installed capacity of 45 Mwp and about 950,000 units produced since 1994. It exports 99% of production to 19 countries in Europe, North America, Africa and Asia.

Solar Plus: manufacturers of photovoltaic modules in amorphous silicon, 2nd generation. They initiated a pilot phase of production in late 2007 with initial capacity of 5.5 MW expandable to 11 MW.

Investhome, DST Group: manufacturers of photovoltaic modules in crystalline silicon.

Martifer Solar: manufacturers of photovoltaic modules in crystalline silicon. They began the construction of a production unit that will be ready by the end of 2008 with a capacity of 50 MW per year. This production unit will have the capacity to double the production in a short space of time and will be fully automated.

WAS Energy: manufacturers of optical equipment and tracking for photovoltaic systems based on their own patents. The WAS Energy has a production line at the Taguspark.

A module assembly factory will be installed in the Moura Project, which will be described with more details in the next article of this series, focusing on photovoltaic solar.

There is also an industry of power electronics and good installers in the market. It was created a Technical committee of Photovoltaic standardization (CTE 82) for monitoring the European and international standards.

Fundamental research activities are carried out in a dozen public institutes and university R&D units mainly in the area of thin film technologies, crystalline silicon ribbon and organic cells.

EU Objectives

Europe - global irradiation & PV potential for optimum angle
Šúri M., Huld T.A., Dunlop E.D. Ossenbrink H.A., 2007. Potential of solar electricity generation in the European Union member states and candidate countries. Solar Energy, 81, 1295–1305, re.jrc.ec.europa.eu/pvgis

The EU objective is to achieve, by 2015, the competitiveness of PV with the cost of electricity to consumers of 0.15 € / kWh (or a cost of the system of 2.5 € / Wp).

To obtain these goals it is necessary to create new materials and manufacturing processes, reducing the cost; improve the performance of BOS (balance of system) components; acting in the field of Standards and Quality and in the social area.

Some benefits include the creation of jobs associated with market promotion and evolution of PV. The investment in the area of photovoltaic systems can create companies of manufacturing, engineering, installation and maintenance and employment with a particular focus at the local level.

Manufacturing: 7 jobs per MW produced.
Engineering and Installation: 30 jobs per MW installed.
Maintenance: 2 jobs per MW installed.

Portugal objectives: 2007-2010

In 2001, Portugal assumed a goal in the promotion of renewable energies. Within the framework of the European Parliament and the European Council Directive 2001/77/CE, the country undertook to increase renewable energies' contribution to 39% of annual gross electricity consumption by 2010.

In order to reduce energy imports by substitution with local renewable sources, fight climate change and reduce greenhouse effect gases emissions (GEE), the actual Government reviewed the goals defined in Cabinet Resolution 63/2003: increase the goal set for 2010 for power generation based on renewable energies from 39% to 45% of total electricity consumption.

With respect of PV and to ensure the goals:

Solar energy: construction of the world's largest photovoltaic plant (the Moura plant) and ensure link to micro-generation policies. The Moura Photovoltaic Power Station represents about 30% of the objectives of photovoltaics in Portugal (national target of 150 MW).

Micro-generation: program for installing 50,000 systems until 2010, with incentives to the installation of water heating systems based on solar energy in existing houses. This program could create new business opportunities for installers, industry and energy service companies, stimulating the market of renewables. The micro-generation program is mainly oriented to electricity consumers. The special regime applies exclusively to renewable sources (solar PV, wind, hydro, biomass and fuel cells) with the maximum of interconnection power by application limited to 3,68 kW (solar PV national target of 22 MW).

References:

IEA-PVPS, Portugal country report 2007 - PV technology status and prospects, iea-pvps.org

Publicações do MEI - Livros de Energia, min-economia.pt

This article is the part 1 of the article: “Alentejo: Solar Region”

Best Countries for Business (Forbes): Denmark, Ireland and Finland

2008-07-08T21:58:00.009+01:00

Danish wind turbines near Copenhagen. Wind often flows briskly and smoothly over water since there are no obstructions by en.wikipedia.org

Forbes’ website has published the list of the best countries for business. This year Denmark tops the annual ranking. Here are the first 25 countries:

Read more

1 Denmark
2 Ireland
3 Finland
4 United States
5 United Kingdom
6 Sweden
7 Canada
8 Singapore
9 Hong Kong
10 Estonia
10 Switzerland
12 New Zealand
13 Australia
14 Netherlands
15 Norway
16 Israel
17 Iceland
18 Belgium
19 Chile
20 Portugal
21 Germany
22 Luxembourg
23 Austria
24 Japan
25 France

No. 1: Denmark ( 2007 Rank: 4)

The Danish economy is a mix of low inflation and low unemployment with emphasis on entrepreneurship and lower taxes. These qualities combined with high marks for innovation and technological savvy lift Denmark to the top of the ranking of the Best Countries for Business.

After winning a third term last year, Danish prime minister Anders Rasmussen has announced plans to cut taxes while addressing Denmark's need to prevent innovative entrepreneurs from pursuing international efforts by backing a new entrepreneurial academy known as 180academy.

No. 3: Finland (2007 Rank: 7)

A center-right government, elected in April 2007, plans to combat declining investment and labor shortages through tax cuts, budget increase for government-funded research and development and the merger of 3 Helsinki universities.

“Finland has a highly industrialized, largely free-market economy with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; exports equal nearly two-fifths of GDP. Finland excels in high-tech exports, e.g., mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. High unemployment remains a persistent problem. In 2007 Russia announced plans to impose high tariffs on raw timber exported to Finland. The Finnish pulp and paper industry will be threatened if these duties are put into place in 2008 and 2009, and the matter is now being handled by the European Union.”

No. 20: Portugal (2007 Rank: 23)

“Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for the European Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. Economic growth had been above the EU average for much of the 1990s, but fell back in 2001-07. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system, in particular, has been an obstacle to greater productivity and growth. Portugal has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment. The budget deficit surged to an all-time high of 6% of GDP in 2005, but the government reduced the deficit to 2.6% in 2007 - a year ahead of Portugal's targeted schedule. Nonetheless, the government faces tough choices in its attempts to boost Portugal's economic competitiveness while keeping the budget deficit within the eurozone's 3%-of-GDP ceiling.”

No. 4: United States (2007 Rank: 1)

The weak US dollar continues to weigh on global commodity prices, though the Fed has signaled plans to leave interest rates at current levels, if not higher, in the coming months as the domestic economy sputters.

Germany (No. 21 lost 9 places). For France (No. 25, lost 9 places), the scandals in the banking system and tougher barriers for entrepreneurs led to decrease. Saudi Arabia, regardless of higher inflation from booming oil exports, has tackled inequities in its markets, expanding investor rights as it evolves from an oil state to a center for investment in the Middle East.

Socioeconomic indicators to compile the ranking:

Trade Freedom
Monetary Freedom
Property Rights
Innovation
Technology
Red Tape
Investor Protection
Corruption
Personal Freedom
Corporate Tax Rate

Links:

Jack Gage, Special Report, The Best Countries For Business, www.forbes.com

And that was June 2008...by The Ovi Team [free PDF]

2008-07-03T00:00:00.022+01:00

Download the free monthly PDF OviMagazine from here, which contains original articles and other material:

And that was June 2008...
Published: 2008-07-01 (8.65MB)

Many of June's news stories were dutifully covered by our dedicated team of contributors over the past 30 days and, as I always say, only a certain number can receive an Ovi front cover, which have been collated once again and presented in totality inside this free PDF.

You can also download the Issue #21: ME

Issue #21: ME
Published: 2008-05-14 (7.26MB)

Me, myself and I, or perhaps it is the ego and super-ego that inspires, but the Ovi team of contributors have pulled together to give you the 21st theme issue: ME.

CONTENTS

I, Me, Self-Forgetfulness, Dehumanization by Emanuel L. Paparella
Who by Jan Sand
Works by photographer by Cátia Cóias
Staring into the magician’s eyes by Asa Butcher
From the Piscean Person to the Aquarian Self by Rene Wadlow
Who am I? by Asa Butcher
“Me” by Jan Sand
I, cynic by Thanos Kalamidas
Ego (In Greek) by Dimitra Karantzeni
Cogito Ergo Sum by Rene Descartes
The unbearable lightness of me by Thanos Kalamidas
Ovi Mosaic by Luis Alves
Me, a name I call myself by Asa Butcher

Dona Nobis Pacem

2008-06-04T19:47:00.006+01:00

Join BlogBlast for Peace - The Fourth Launch!
You can learn more about BlogBlast For Peace June 2008 at the site of Mimi Lenox.

Does the Nordic Model need to be reformed?

2008-05-31T22:27:00.027+01:00

Does the Nordic model need to be reformed to face up to the challenges of globalisation? What exactly are these challenges and what are the causes which make the model work successfully, creating strong economic performances? Is the Nordic approach sustainable? Can its characteristic elements be used in other economies? Here are some of the main questions posed at the OECD conference "Embracing Globalisation in the 21st Century: a Dialogue about the Nordic Approach".

To better understand this issue I present a synthesis of the OECD Secretary-General’ keynote, , at the conference in Paris, on 21 May 2008. [1]

Is there a "Nordic model"? (Characteristics of the Nordic Model)

In fact, there is no one single model among the 5 Nordic countries. However, they share some common approaches:

1.Labour market institutions and policies that provide:

- relatively low employment protection

- high unemployment protection (coupled with high income-support benefits)

- strict activation policies

- high degree of centralized wage coordination

2.Comprehensive social benefits and publicly provided social services and:

- large investment in education and research

- development financed by taxes

3.Openness to trade and competitive product markets

4.High taxes

Together, these features offer:

- a collective mechanism for risk sharing

- play a key role securing the political acceptability of structural reforms

"Inflation has generally remained low over the last three years, although as elsewhere, recent increases in food and energy prices are exerting upward pressures."

Labour markets are characterized by:

- high participation rates

- generally low unemployment

- a small incidence of long-term unemployment

- high job mobility.

Nordic countries’ tax and welfare systems have generally ensured that the winners from structural transformation have shared their gains with the losers - "Nordic countries have expanded the size of “the economic pie”, the distribution of this “pie” has been widely shared."

"For example, in the Nordic countries, older workers’ employment rate in 2006 was well above the OECD average of 53%, reaching nearly 85% in Iceland."

"Income equality and poverty rates were lower in Denmark and Sweden than in any other OECD country, and they were below the OECD average in Finland and Norway."

Traditional commitment to free trade

- barriers to trade and investment are low (apart from agricultural products)

- measures of Nordic country participation in the international trading system are high

- Nordic countries score well in terms of competition-friendly regulation in markets for goods and services

High tax burden

- needed to finance the comprehensive and generous social expenditures and spending on education

- tax revenue is put to efficient use

"Taxation revenue to GDP last year was close to 50 per cent in Denmark and Sweden and over 40 per cent in Finland and Norway"

To what degree can the strong economic performance be attributed to the Nordic model?

Many attribute the combination of:

- solid economic growth

- well-performing labour market

- an equal distribution of income and social cohesion

Others recognize the recent good economic performance, but question:

- whether the incentives associated with high taxes and a generous social security system are compatible with long-term sustainability.

Nordic countries in particular have managed to seize the opportunities offered by globalization for higher productivity and living standards. OCDE attribute this to two forces:

- a lower exposure to globalisation, in the sense that the export sectors are geared towards fast growing and relatively profitable products.

"Finland and Sweden, for instance, specialize in the telecoms sector."

- a higher ability to cope with change

and:

- education levels

- the quality and public confidence in the institutions of government

- and their strong innovation frameworks.

Is the Nordic approach sustainable?

Moving on to the challenges, the Nordic Report [2] identified the risks for the Nordic model. The authors, six Nordic professors, focus on the implications of globalization and demographic change. The conference was organised against the background of the debate generated by this report. The authors think that the financial dilemma faced by the welfare state cannot be solved by increased growth, higher taxes, higher birth rates or increased immigration.

Globalization has accelerated:

- emergence of new players in the international trading system, bringing additional workers ( 1 billion over the last decade).

- new relationships such as cross-border out-sourcing and in-sourcing.

The globalization of innovation:

- many OECD-based businesses are setting up R&D operations in China and India, attracted by their abundant supply of highly skilled scientists and engineers.

The Report’s authors note that the costs of funding the Nordic model are likely to rise faster than nominal GDP. This is due to:

- expected demographic changes, leading to a higher proportion of retirees relative to the number of workers, as the baby boom generation retires, and life expectancy continues to lengthen.

- governments’ room for manoeuvre has become more limited, with taxation levels already high, and tax bases becoming more mobile (especially on capital and labour income). Both forces exert tensions on the long-run sustainability of the Nordic model.

"How can the essentials of the Nordic model be preserved going forward, especially its underlying philosophy of collective mechanisms for sharing risks? "

Can elements of the Nordic approach be transferred?

Are there lessons for other countries that can be drawn from the Nordic model? Certainly (second OCDE).

- regulation does not buy security; in fact, the opposite appears to be true.

- to caution against trying to emulate directly the Nordic model. The precise balance between the different policy planks depends on country circumstances and institutions.

"For example, the quality of industrial relations, and agreement among trade unions and employer organizations on common objectives may play a key role in labour market performance, as well as the political feasibility of reforms. Establishing how countries can implement coherent policy packages in practice also takes time. The Danish version of the Nordic model, for example, is the result of a long series of reforms, started in 1994 and has required considerable fine-tuning to reach its present format."

Dealing with the political economy of reform

"Coping with globalization is about coping with change, and success in implementing policy reform requires winning broad support for change. But as you are well aware, that is not an easy task. There are winners and losers across countries and within each country. Even if a country benefits overall, the adjustment costs cannot be ignored."

*end of synthesis*

The compatibility between reformism and capitalism

The actual dominant ideology of global capitalism - designated as “neo-liberalism” by some and “open trade” by others - has its proper strong discourse to impose the program of “creative destruction” of collective structures contrary to the market logic, across the world.

Through agencies such as the OECD, “neo-liberalism” promotes the economics of the free market like an incontestable scientific theory - a logic of flexibility, competitiveness and extreme individualism that has no alternative. Indeed, the OECD is not ideologically neutral and, like other transnational bodies, it has the corporate speak characteristic of the corporate world.

We know that the compatibility between a true reformism and capitalism is measured by the relationship between the policies of labour organisations and the vital institutions of capital (private property and labour market).

Reform seeks to improve the economic system like it is. One neo-liberal reform, whose main goal consists in the “free market”, is quite different from a reform focused on progressive transition to social justice and job security. It is not a question of competition - “winners and losers”. It is a question of social justice and human rights, and the crucial factor for that change resides in the mobilized collective power of the workforce, which cannot be measured in economic terms.

We don’t need a "reformist reform", which simply supports the system and allows capitalism to function more effectively. We need a "non-reformist reform", a "structural reform” or a "revolutionary-reformism", that in a cumulative way tends to transform the actual system in all its economic, social and environmental dimensions. [3]

So, the governments and academic institutions that read these international reports should not to be so influenced. They should have in consideration the political and economical objectives that are behind them, and above all, that they have not passed through a democratic scrutiny.

References:

[1] Angel Gurría's keynote, Seminar on "Embracing globalisation in the 21st century: a dialogue on the Nordic approach", oecd.org
"Reform the Nordic model" norden.org
[2]ETLA’s report “The Nordic Model – Embracing globalization and sharing risks” Read the book [PDF] ; Image: frontcover of the book

[3] Andre Gorz, Austrian and French social philosopher, Wikipedia article

POLL: Does the Nordic model need to be reformed? (top of left column)

Other related posts:
Fed eyes Nordic Model
Manufactured Landscape - Landscape as Architecture
The Global Business
The current capitalist system

Local actions in global climate change struggle

2008-05-19T20:31:00.006+01:00

Video from Odense, Denmark. To guide the cyclists, Odense has developed a 'running light' that makes a green wave.

Local actions in global climate struggle. This is the central theme for the 3rd Nordic Sustainability Conference, “One Small Step”. On 15-17 September 2008, Odense (Denmark's 3rd largest city) hosts the Conference, which aims to gather experience and ideas from the public and the private sectors, researchers, politicians, NGOs and citizens in the Nordic countries with the purpose of launching actions that will prevent the worsening of the climate conditions. Proposed concrete measures can be taken by, for example, local councils and businesses to limit carbon dioxide emissions.

The municipality expects that 600 people will attend the meeting, which will debate the climate and local plans along 5 main tracks distributed along 3 themes: Visions, Options and Actions.

transport, mobility and accessibility

urban planning and construction

consumption

biodiversity as a climate regulator

energy efficiency and sustainable energy

The practical measures the delegates at the meeting come up with will be collected in a catalogue for the UN major climate summit in Copenhagen in 2009, the COP15. The countries of the world, if all goes according to plan, will adopt a new global climate agreement at the summit in Copenhagen.

The COP15 conference is the fifteenth Conference of the Parties under the United Nations’ Climate Change Convention. The conference will take place from 30 November to 11 December 2009. The overall goal for the COP15 United Nations Climate Change Conference is to establish an ambitious global climate agreement for the period from 2012 when the first commitment period under the Kyoto Protocol expires.

"When considering sustainability, the climactic challenges are among the most urgent. It’s not enough that the government has climate policies and enter into international agreements. We must all make an effort – including the municipalities, the citizens and the private sector.", stated Connie Hedegaard, Danish Climate and Energy Minister.

One of the special features of the Nordic countries is their decentralized organization and thus the proximity of the government to the citizens. Indeed, the municipalities are the State, since they collect most of the tax revenues. The traditional institutes of the authoritarian state, like the army, police force and judiciary are on a more distant level to the normal citizen in his everyday life.

Links:
Odense wants to unite the North to benefit the environment odense.dk
Local actions in global climate struggle norden.org

Other related posts:
Al Gore expects global climate agreement next year in Denmark
World's Healthiest Countries (Forbes): Iceland, Sweden and Finland
Al Gore to climate conference in the Faroe Islands
Shall the Nordic Region be a GMO-free zone in the future?
Baltic Sea Almost Ice-Free
Switzerland Tops 2008 Environmental Performance Index
The New Wars of Climate Change
Environmental Sector will create 500 000 jobs in the Nordic countries
Ranking of the Human Development Index: Iceland "best country to live"
Greenpeace: Neste palm-based biodiesel not so green
Fast Transport on Request: new alternative intercity transport
City of the future is for people, not cars
Ranking of the best (and worst) countries to live: Finland is the world's greenest
Hello Finland: Globalization does not require municipal amalgamation

Bloggers Unite For Human Rights MAY 15

2008-05-14T22:20:00.012+01:00

Bloggers Unite is an opportunity for bloggers, vloggers, and photobloggers to use their space to make the world a better place. Show your support for this newest social awareness campaign!

Universal Declaration of Human Rights
"Article 6
Everyone has the right to recognition everywhere as a person before the law.
(...)
Article 22
Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.
(...)
Article 23
1. Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.
2. Everyone, without any discrimination, has the right to equal pay for equal work.
3. Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection." knowyourrights2008.org

Fed eyes Nordic Model

2008-05-04T20:45:00.015+01:00

The US Federal Reserve is examining the Nordic bank nationalisations of the 1990's

Recently, the online version of the British newspaper The Daily Telegraph reported that the US Federal Reserve was examining the Nordic bank nationalisations of the 1990s as a possible interim solution to the US financial crisis.

Second the newspaper, a senior official at one of the Scandinavian central banks told that Fed strategists had stepped up contacts to learn how Norway, Sweden and Finland managed their traumatic crisis from 1991 to 1993, which brought the region's economy to its knees. Scandinavia's bank rescue proved successful and is now a model for central bankers, although the responses vary in each Nordic country. For example, Norway ensured that shareholders of insolvent lenders received nothing and the senior management was entirely purged, having two of the country's top four banks been seized.

Presently, the US Real Estate mortgage market (and especially the sub-prime lending) is under threat. US market mortgages represent $7,000bn and over the past decade, US house prices have increased 100%. Inflation in housing prices around the world is also impressive, making us wonder how long would it be sustainable (house prices increased over 100% in the UK and Australia, over 200% in Ireland, over 300% in South Africa, during the past decade).

In 2006 I referred to the economic crisis of the 1990’s in Finland not imagining that two years later, the Fed, very concerned by the depth of the US crisis, would be eyeing the Nordic approach for contingency options.

The Economic Crisis of the 1990’s in Finland – “Down from the heavens, Up from the ashes”

The Portuguese economic crisis started in 2002. Despite the slight recovery occurred in 2004, the growth of Portuguese economy is keeping on insufficient values (GDP growth rate below the EU average). Since that date there were many debates about European economic models of success, deserving particular attention the phenomenon of recovery, the Finnish "miracle".

The transformation of an outdated industrial complex into the largest world producer of cell phones, was crucial to the rapid productivity recorded in the 90’s.

The Finnish crisis activated a period of "creative destruction", a period of adjustments and reforms, related to technological advancements and long-term investments in technological innovation, as well to the increase of competitiveness, caused by the 1992’s currency depreciation.

The economic crisis of the first half of the 1990’s in Finland was long and profound. The real GDP, dropped about 14% from the peak in 1990 to the trough in 1993, was about four times superior to the collapse of the Great Depression of the 30’s. The unemployment rate rose from 3% in 1990 to almost 20% at the beginning of 1994. The economic crisis lowered the Finnish standard of life for many years, driving to the bankruptcy of companies and a wide scale bank crisis, and finally created serious problems to the public finances, which endangered the Finnish Nordic model of welfare state.

Finland fell down from the “paradise”, from the economical “boom” of the 80´s, in the peak of the Finnish version of Nordic welfare state. Since 1994 Finland began to recover from the recession, but the country was not the same of 1990, now with two new problems: a persistent unemployment and a worsening of the social inequalities.

In the 1980’s, the country was known as one of the Nordic rich countries, with advanced welfare systems and corporatist labor markets. Finland, Sweden, Norway, Austria and Switzerland seemed to be immune to the rise of the unemployment and related social problems experienced in other Western European countries. However, starting from the end of the 1980’s all the Nordic countries faced economical crisis, having been the Finnish crisis the most serious.

But what were the main causes of this deep recession? “Bad banking, bad luck and bad policy”. In respect to the “luck” factor, there are two important events to refer: the 1989–91 collapse of the Soviet Union, Finland’s principal trading partner in 1989, with important political-economical consequences, including losses for Finnish exporters; the Finnish EU membership since 1995, with the respective economic policy in preparation since the beginning of the 1980´s.

In respect to the banking crisis in 1991–94, there are other two factors which can explain the severity of the Finnish crisis (and also the Swedish), common to other countries which have experienced similar crises.

Like many other countries, before the crisis Finland had a system of fixed exchange rate regime and a overvalued currency (markka), resulting from inflation rate which was higher than in the core countries of European currency system; the inflation and overvalued currency were caused by the expansion of the bank credit and the deregulation of the capital market in the latter half of the 1980´s.

The deregulation of Finnish capital markets at the time and the increasing supply of credit had caused the private sector indebtedness and increase of domestic demand and asset prices, leading to widening current account deficits.

Concerning “ bad policies”, the Finnish labor market had a sharp increase in labor income taxes.

The whole document “The Economic Crisis of the 1990’s in Finland” is available via Valtion Taloudellinen Tutkimuskeskus

Reference:
Seppo Honkapohja e Erkki Koskela, Kiander (ed.), Kalela (ed.), Kivikuru (ed.), Loikkanen (ed.), Simpura (ed.), The Economic Crisis of the 1990’s in Finland, "Down from the heavens, Up from the ashes - The Finish economic crisis of the 1990’s in the light of economic and social research", Valtion Taloudellinen Tutkimuskeskus (Government Institut for Economic Research) Helsinki 2001.

"Creative destruction"

In fact, the deep causes of the current crisis of global capitalism had their origin decades earlier. During the stagflation of the 1970’s, big business and political forces mobilised to define the next stage of capitalism. They wanted to recover the class power that had been dissolved by postwar policies of wealth redistribution and social welfare, the so-called Keynesian fiscal and monetary policies. The goal of these postwar policies was to provide solutions for reducing the amplitude of business cycles, and for seeking full employment. Thus, Neoliberalism became the new economic ideology, with powerful influence in the corporate media and also in the academic circuits.

A wave of deregulation of financial markets swept over the world, besides a rapid increase of transnational mobility of capital. Corporate pressure intensified on governments to adopt neoliberal “reforms” that regularly produced state spending, and many developing countries were impelled to the neoliberal way, creating social instability and environmental catastrophes - a reality that is missing from the corporate media headlines and front pages.

This process has been a form of “creative destruction”, weakening and breaking institutions, social welfare, health care, education and culture. History shows that governments have been generally powerless to fight the unavoidable and damaging capitalist ‘business cycles’.

Although unstable and unfair, the capitalist system has evidenced a capacity to reform itself to survive economic business cycles. However, these ‘business cycles’, stimulated by corporate greed and maintained by deception of the people, cause huge human and environmental costs to the planet.

Reference:
'CREATIVE DESTRUCTION' – THE MADNESS OF THE GLOBAL ECONOMY, medialens.org

Image: www.kwaves.com [PDF]

April 2008 OviMagazine [Download the free PDF]

2008-05-01T18:58:00.003+01:00

Download the free monthly PDF magazine from here, which contains original articles and other material:

And that was April 2008...
Published: 2008-05-01 (6.90 MB)

Here we all are for another Ovi front covers monthly issue, but brace your self because there has been a re-design of the pages.
(...)
April was a great month for articles in general, so, after you have browsed through the PDF, why not take a look back on our pages and read all the other submissions that sadly didn't receive a cover?

Roll on May!