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Tag: solar energy

  • China’s Wind Farms Are Doing A Lot More Than Generating Electricity

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    Nations around the world are dedicating a tremendous amount of resources to projects that can help reduce or restore some of the damage caused by climate change. One significant change that’s taking place is shifting how some energy is produced. In October 2025, the BBC reported that an Ember study revealed renewable resources had overtaken coal as the planet’s most significant source of electricity. China was an enormous part of this push: The outlet notes that, during the first half of 2025, its growth in wind and solar energy outpaced every other country in the world combined.

    This dramatic embracing of solar energy’s potential is helping to make energy use greener and could be the only defense against the more drastic effects of the planet’s warming. It’s about much more than just energy generation, though. China has previously found that its enormous solar farm was doing a lot more than just producing energy, and this has also proven to be the case for its expansive efforts in wind. A December 2025 study titled “Offshore wind farms can enhance the structural composition and functional dynamics of coastal waters,” concluded that the wind farms in Chinese waters are making a positive change to the biodiversity of the regions where they were installed.

    The study, published in Global Ecology and Conservation (via ScienceDirect), reports that “While OWFs contribute significantly to clean energy production, they also bring notable physical, chemical, and biological changes to the surrounding marine environment.”

    Read more: 13 Celebrities Who Own A Gulfstream G650 Private Jet

    The regenerative effects of wind farms for local ocean life

    Land near the seashore. – inna_sandrakova/Shutterstock

    The oceans are heavily impacted by climate change. The Atlantic Ocean, for instance, has been described by scientists as at a ‘tipping point’ regarding its ability to regulate the temperature of the world’s waters. While offshore wind farms are large and rather imposing structures, they aren’t necessarily unfriendly. The Global Ecology and Conservation study noted that the changes a nearby offshore wind farm can have on its ecosystem are considerable, and in order to investigate them further, “ecopath models were developed for an OWF area and, separately, for a nearby control area, using biological and environmental survey data collected in 2022 and 2023.”

    The researchers were able to put together a picture of how the two areas have developed over time and the effects that the wind farm may have had on the broader marine population. The scientists note that, for fish, the area around an offshore wind farm can be something of a safe area, “as turbine monopiles hinder trawling,” and the protected status of some species allows communities to form. Other local wildlife find benefit in living in a turbine’s surrounding regions or directly on its surface.

    Dalian Ocean University Associate Professor Zhongxin Wu is quoted by Murdoch University: “Our results showed that in the offshore windfarm area, benthic fish biomass was almost doubled compared to the control area.” Benthic fish dwell near the seafloor, and a potential reason for their abundance is that there are other organisms in the vicinity, too. Animals such as oysters can enjoy the large, strong, sturdy surface of a wind farm’s turbines, which may otherwise be difficult to come by in the area.

    The positive and negative environmental impacts of offshore wind farms

    Offshore wind farm turbine being repaired.

    Offshore wind farm turbine being repaired. – Ryan Pyle/Getty Images

    An offshore wind farm is a huge, imposing symbol of green energy. Those who live by the coast will be more than familiar with the ocean’s sheer strength and its accompanying winds, so witnessing those huge turbines spinning to harness that power leaves an impression. As green as they may be, though, it’s essential to remember that these are huge and considerable pieces of infrastructure. Installing huge towers with 81-meter-long turbine blades that can spin 200 meters over the ocean’s waves can be a disruptive process.

    Liwei Si et al note in their Global Ecology and Conservation study that the installation of a wind farm can cause damage, noise pollution that can be harmful to all sorts of creatures that live in the vicinity, also highlighting “electromagnetic interference, and habitat fragmentation, further affecting benthic invertebrates, fish, and marine mammals.” The concept of decommissioning, much like what happens to an oil rig when the oil runs out, applies to it, too. It’s a complex and expensive procedure on an enormous scale.

    Nonetheless, there are some positive effects wind farms can have on the marine environment. To humanity, of course, they are artificial energy infrastructure, but for the fish and other creatures who find them in their domain, they can become another part of the habitat. Rather like an artificial reef or even a shipwreck, marine creatures can find havens and flourish in the most unlikely places, and can adapt their environment to their own needs.

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    Read the original article on SlashGear.

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  • Sembcorp to acquire ReNew’s solar energy business for $190m

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    Singapore-based Sembcorp Industries has agreed to acquire ReNew Sun Bright, the solar energy unit of ReNew Energy Global, for approximately S$246m ($190.02m).

    This acquisition aims to enhance Sembcorp’s renewable energy portfolio in India.

    ReNew Sun Bright operates a 300MW solar power plant situated in the Indian state of Rajasthan. The plant began commercial operations in November 2021.

    The facility operates under a 25-year power purchase agreement (PPA) with the local electricity company.

    Upon closing of the transaction, Sembcorp’s total renewable energy capacity in India will reach 6.9GW, encompassing both installed and under-development projects.

    The transaction comes at a time when India aims to increase its renewable energy capacity to 500GW by 2030, which is currently at 165GW, reported Reuters.

    Last year, Sembcorp Industries received a letter of award for a 300MW interstate transmission system wind-solar hybrid power project.

    The project was awarded to Sembcorp’s subsidiary Sembcorp Green Infra by India’s National Thermal Power Corporation (NTPC), as part of a larger 1.2GW bid.

    The award stipulates that the power generated by the project would be sold to NTPC under a 25-year PPA.

    This deal comes days after India’s Union Ministry of New and Renewable Energy ordered domestic clean energy agencies to cancel and reissue solar project tenders that were hurriedly floated to bypass certain regulatory requirements.

    Most domestic developers rely on low-cost Chinese solar cells. However, India’s clean energy policy allows only locally manufactured modules and cells be used in government-backed projects.

    “Sembcorp to acquire ReNew’s solar energy business for $190m ” was originally created and published by Power Technology, a GlobalData owned brand.

     


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  • Will farming under solar panels take off?

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    Harpal Dagar has been farming under solar panels for five years [Harpal Dagar]

    “As a farmer, you’re always at the mercy of weather,” says Harpal Dagar who has a farm on the outskirts of Delhi.

    “So many times, we lost our produce due to unpredictable conditions,” he says.

    But five years ago he was approached by Sun Master, a Delhi-based solar power firm, with a deal that would give him a much more predictable income.

    Sun Master proposed building solar panels above some of Mr Dagar’s fields, with the panels high enough off the ground, that he could continue to farm underneath them.

    Under the 25-year deal, Mr Dagar would receive annual payments and Sun Master would keep the proceeds from the electricity generated.

    “When the solar company first approached us… many of us feared losing our land. It sounded too good to be true – maybe even a scam,” says Mr Dagar.

    “But today, I believe it was the best decision I made. My income has tripled, and I sleep peacefully without the stress of climate or crop failure,” he says.

    Sun Master pays him around $1,200 (£900) per acre, per year, plus $170 a month for work operating and maintaining the solar panels.

    “Even the turmeric I grow on the same land is mine to sell. How can I complain?”

    Siting solar panels above crops goes by the term agrivoltaics.

    India would seem particularly suited to such innovation. The fortunes of many of its farmers often hinge on an unpredictable monsoon, so a reliable income from a solar energy firm might provide some welcome financial security.

    But despite the benefits, take up has been slow, around 40 projects are operating in India at the moment, according to the National Solar Energy Federation of India (NSEFI), which represents India’s solar power industry.

    There are several challenges.

    Not all crops will grow under solar panels. Depending on the layout, the panels reduce the light getting through by between 15% and 30%. Some denser layouts will block too much sun for staple crops including wheat, rice, soybeans or pulses.

    “What works well are high-value crops with moderate or low-light needs, like green leafy vegetables, spices such as turmeric and ginger, and some flowers,” says Vivek Saraf, the founder and CEO of Delhi-based SunSeed, which specialises in agrivoltaics.

    There’s also the issue of expense.

    To allow farming underneath, the solar panels need to be at least 11ft (3.5m) off the ground. That makes them between 20% and 30% more expensive to install than panels on a regular solar farm, where they are much closer to the ground.

    “Small farmers cannot own these systems. They don’t have the risk appetite or capital,” says Mr Saraf.

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  • Wind, solar power aren’t worthless if there’s no wind or sun

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    President Donald Trump has made his wind power aversion well known. On at least five separate occasions recently, he called windmills ugly, expensive and altogether useless.

    His Transportation Department canceled $679 million in federal funding that would have benefited offshore wind projects, and his Interior Department ordered work to stop on a major wind project off Rhode Island that was nearly finished.

    The U.S. Energy Department chimed in with a Sept. 5 post on X.

    “Wind and solar energy infrastructure is essentially worthless when it is dark outside, and when the wind is not blowing,” the post said.

    The following day, X users added a community note — a crowdsourced fact-check — to the post, saying the department was wrong because “batteries allow electricity to be stored and used at a different time than when it is generated.”

    Sign up for PolitiFact texts

    Many of the energy experts we contacted agreed that wind and solar energy can be stored. They added that wind and solar power also have other advantages, beyond their zero carbon emissions once they start operating.

    “That’s like saying that a commercial aircraft is worthless when it isn’t flying,” said Severin Borenstein, faculty director of the Energy Institute at the University of California-Berkeley’s Haas School of Business. “Obviously, any piece of capital equipment does not operate 100% of the time. The question is whether the value it creates when it is operating justifies the capital investment.”

    Elon Musk, whose company Tesla manufactures batteries (and who owns X), replied to the post with the comment, “Um … hello?” and linked to an article about one of his battery products.

    The Energy Department did not respond to an inquiry for this article.

    How to store power generated by wind and solar infrastructure

    Experts said wind and solar powered equipment, on their own, do not store energy. The process requires an extra step.

    Batteries, as the X community note said, are one method.

    “We now have increasingly widespread and affordable battery storage at the home and the utility scale,” said Christopher R. Knittel, professor of energy economics at the Massachusetts Institute of Technology’s Sloan School of Management. “That allows renewable energy produced during the day to be stored and used at night or during demand spikes.”

    Storage of wind and solar power is “commonly done in California and Texas today, among other locations,” Borenstein said, contributing “significantly” to the electricity supply.

    Another option is to use wind and solar power to pump water into an elevated reservoir and release water when needed, harnessing the gravitational pull to power turbines, said Kenneth Gillingham, an economist with the Yale School of the Environment.

    Adding storage capacity does require additional cost, which might make the overall competitiveness of wind or solar energy less favorable. 

    Batteries can help smooth out short-term supply and demand mismatches, but they are less economical for longer term use such as storage from one season to another, said Peter R. Hartley, a Rice University economist who specializes in energy policy.

    Wind and solar power can be valuable additions to the energy mix

    Even without a storage component, wind or solar power can still be valuable in any energy mix, experts said — beyond the benefit of producing carbon-free energy to combat climate change. 

    For instance, in New England, the natural gas supply is used heavily for heating, so there is less available for electricity during winter months. In the absence of other types of power, that would translate into high electricity prices, Gillingham said.

    “Wind and solar can reduce the amount of electricity needed during many hours of the day,” he said. This prevents utilities from having to switch over to more expensive fuels, such as fuel oil or diesel, he said.

    “Solar power often coincides with peak daytime demand when electricity prices are highest, displacing expensive fossil generation and lowering overall costs,” Knittel said.

    Many states have made wind or solar important pieces of their energy strategy.

    In May, about one-third of the electricity generated in Texas came from renewable energy other than hydropower, a category that includes wind and solar. In California, that percentage was just over half. In Iowa, the percentage was about two-thirds. Nationally, the share is about 14%.

    “Far from being ‘worthless’ when conditions change, wind and solar are vital contributors to our energy system, delivering high value, clean power when it’s available, and, thanks to modern storage technologies, ensuring that power can continue to be used even when the sun isn’t shining or the wind isn’t blowing,” Knittel said.

    Our ruling

    The Energy Department said, “Wind and solar energy infrastructure is essentially worthless when it is dark outside, and when the wind is not blowing.”

    Although wind energy infrastructure doesn’t produce power if the air isn’t moving and solar doesn’t generate power if the sun’s not out, those sources of energy still have value during those periods.

    Energy can be stored either in batteries or in larger pieces of infrastructure such as reservoirs.

    And when these systems are operational, they can handle electricity demand in real time, adding to the power mix in states including Texas, California and Iowa.

    We rate the statement False.

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  • How Coloradans can access solar energy without rooftop panels

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    DENVER — Solar energy offers a clean alternative to traditional electricity, but installing panels can be expensive and complicated for many homeowners. A program called Neighborhood Sun is providing people in Colorado with an alternative way to access solar power.

    Xcel Energy customers can sign up to participate in solar farms and receive solar credits. The group Neigborhood Sun said participants can save anywhere from 10% to 25% on their electricity bills, depending on income.

    Neighborhood Sun works with Xcel to figure out a person’s energy needs and then assign solar panels.

    “Essentially one household would be subscribed to the equivalent of, you know, one or two panels, depending on how much energy they need. And so that’s called their share of the community solar farm, and then each month, they’re going to get solar credits generated from that share of the solar farm. And those solar credits are going to get billed at a discount through Neighborhood Sun,” Stephanie Monmoine from Neighborhood Sun said.

    How Coloradans can access solar energy without rooftop panels

    That range will be income dependent. Monmoine said the program is designed to expand who can access solar energy.

    “A lot of folks who either don’t own their home, they might be renters. You know, they might be in a condo, they might be in affordable housing. They might be in a historic property that doesn’t allow rooftop panels on the top,” Monmoine said. “We have such a wide range of reasons that people might choose community solar over rooftop because they can’t access rooftop.”

    Currently, 25 solar farms are operational, with seven more expected to come online by the end of the year for Colorado. That does mean there is a waiting period before some people see a discount, depending on when the solar farm they signed up for comes on line. Xcel customers in Colorado can still sign up for the program.

    Xcel confirmed the company supports the project but emphasized that it operates through a third party and doesn’t control subscription costs. Xcel also doesn’t guarantee saving money on your electricity bill since this is done through a third party.

    The utility company does have more information on solar rewards and other groups doing similar work as well.

    Denver7

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    Denver7 morning anchor Anusha Roy tells stories that impact all of Colorado’s communities, but specializes in reporting on our climate, mental health, and the opioid crisis. If you’d like to get in touch with Anusha, fill out the form below to send her an email.

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  • Santa Fe County commissioners approve high-profile solar energy project near Eldorado

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    Santa Fe County commissioners have given the green light to a high-profile and controversial solar and battery energy storage facility that has divided opinion in the region and generated heated opposition in the Eldorado area.

    The commission’s 4-1 vote Tuesday to approve the Rancho Viejo Solar project is likely not the end of the story — opponents have said they plan to appeal the approval to state District Court.

    The project comes as New Mexico aims to make a shift to clean energy and away from coal and gas, and commissioners who voted to support the project cited the need to get renewable energy projects online to combat climate change.

    “I think that this project is much, much, much safer than the alternative — the alternative would be a 332-home development, with 332 potential fire hazards,” said Commissioner Hank Hughes, who is a resident of Eldorado and made the motion at Tuesday’s meeting to approve the proposal.

    He added, “I think this is the right decision. We are living in a climate crisis. … This is so much safer than fossil fuels.”

    The commission’s decision comes after a public hearing earlier this month that featured more than 20 hours of testimony. When the roll-call vote played out, at least one person in the audience cried out in frustration. Rancho Viejo Solar, proposed by Northern Virginia-based AES Corp., has drawn fierce opposition from residents concerned about impact on property values and the risk of fire from battery cells overheating.

    Company lauds vote

    Aiming to generate 96 megawatts of power and roughly 45 megawatts of battery storage, the project would cover 680 acres of a roughly 800-acre parcel and include a solar facility, a 1-acre collector substation, a 3-acre battery storage system and a 2.3-mile generation line about four miles east of La Cienega.

    Public Service Company of New Mexico is the intended client for the project.

    Joshua Mayer, senior development manager for AES, said in a statement the vote is “an essential step toward delivering safe, reliable, and affordable energy to the local grid as energy demand continues to rise, while directly advancing New Mexico’s clean energy goals.”

    081225_GC_]RanchoViejo02rgb.jpg (copy)

    Joshua Mayer, senior development manager for AES, listens to concerned citizens speak about on the Rancho Viejo Solar project during Day 2 of a hearing at the Santa Fe County Commission chamber earlier this month. The public hearing featured over 20 hours of testimony on the project before commissioners approved the site Tuesday.

    The county Planning Commission approved a conditional use permit for Rancho Viejo Solar earlier this year, a decision project opponents appealed to county commissioners. In an interview earlier this month, leaders with the Clean Energy Coalition of Santa Fe County, an organization that opposes the solar project and has about 2,000 members, said the group intended to appeal if the commissioners opted to uphold the Planning Commission’s decision.

    The vehement pushback has been a source of frustration for the project’s supporters, who say it could generate enough electricity to carry roughly the entire residential power load of Santa Fe and would mark a significant move in the state’s clean energy transition.

    Commissioners sound off

    Commissioner Lisa Cacari Stone was the lone member of the board to vote against Rancho Viejo Solar. In her comments ahead of the vote, she indicated she has concerns about safety, technology and about the application overall.

    Lisa Cacari Stone headshot

    Lisa Cacari Stone

    “There is the importance of the public health impact. The proximity of this large-scale project to neighborhoods and Rancho Viejo continues to create potential hazards and can be very detrimental to all those in the area,” Cacari Stone said.

    “My vote is not against solar energy,” she added. “It is against this particular proposal by AES because it does not meet — based on the evidence I’ve reviewed, written submissions and testimonies — the highest standards we owe all of our communities.”

    Commissioner Justin Greene, who is among the candidates running to be the next mayor of Santa Fe and who voted to support the project, noted some of the conditions with which AES will need to comply, including increasing the distance between battery containers in the interest of reducing fire risk.

    Justin Greene

    Justin Greene

    “We get calls for environmentalism and sustainability, and we are answering that call by creating a project and helping a project that will power Santa Fe and Santa Fe County,” Greene said.

    Some commissioners noted county officials as well as third-party technical experts recommended approval of the conditional use permit.

    “The environmental benefits of this are very important to me as an environmentalist myself and as someone with a 7-year-old child who will inherit our future,” Commissioner Adam Fulton Johnson said. “Projects like this are critical to meeting our renewable energy goals and replacing retired coal plants.”

    ‘It will go to District Court’

    Lee Zlotoff, who helms the Clean Energy Coalition of Santa Fe County, said in an interview earlier this month the organization has raised more than $50,000 and is prepared to go to court if the commissioners approve the land use permit. He noted his group is “in this for the long haul.”

    “The fight’s not over,” said Randy Coleman, the organization’s vice president, confirming Tuesday the group plans to file an appeal.

    081125_MS_AES Hearing Protest_003.JPG (copy)

    John Lee, left, and Pat Czeto stand outside with protest signs ahead of a public hearing on the Rancho Viejo Solar project in August 2025. The Clean Energy Coalition of Santa Fe County, an organization that opposes the solar project and has about 2,000 members, said the group intended to appeal if the commissioners opted to uphold the Planning Commission’s decision.

    Selma Eikelenboom, a resident of Ranchos San Marcos who lives near the project site, was unsurprised by the outcome Thursday, but said she is confident the matter will end up in court.

    An opponent of the project, she said she has spent three years studying AES’ proposal but, as a party with standing before the county commissioners, had only an hour to make her case.

    “It’s a shame, but it’s not over till the fat lady sings, as they say, and it means it will go to District Court,” Eikelenboom said.

    ‘A great precedent’

    After the meeting, Robert Cordingley, president of the nonprofit 350 Santa Fe, said the Rancho Viejo Solar hearing process can serve as a template moving forward for advocates who are pushing to get such projects approved.

    “We think this will set a great precedent and a template for future battery storage and solar farm projects, not just in Santa Fe County but in the state as a whole,” Cordingley said.

    Glenn Schiffbauer, executive director of the Santa Fe Green Chamber of Commerce, has also supported Rancho Viejo Solar through the lengthy process alongside groups like the Sierra Club’s Rio Grande Chapter.

    “It’s a good day,” Schiffbauer said. “For me and my organization, I think it was really good to see the county of Santa Fe take advantage of the opportunity that was presented to them to lead in renewable energy generation. … This was the first big one. Rather than doing nothing, which is usually the easier way, they did something, and now we have a template going forward.”

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  • Green Eggs and Sun

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    How the Trump Administration’s irrational dislike of solar and wind energy imperils both the environment and the economy.

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    Bill McKibben

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  • How Long Will Trump Be Able to Deny Reality with His Energy Policy?

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    They would not like them on our federal lands (those are reserved for oil and gas, and maybe nuclear reactors). They do not want them on farmland. They will not allow them to float offshore. The Trump Administration’s war on wind and solar power just keeps getting more aggressive: late last week, for instance, it announced an investigation into whether it should tariff wind-turbine components arriving from other nations for projects that it had taken office too late to block. As the Times politely put it, “The Trump administration has typically imposed tariffs to protect American companies against foreign competition and spur domestic production of critical products. This time, laying out a path to impose tariffs could be an attempt to stymie an industry.” On Friday, it shut down an almost-completed wind farm off the coast of Rhode Island on unspecified (and hard to imagine) “national security” grounds.

    The Seussian rancor with which every layer of the Administration views clean energy would be almost funny if it weren’t so tragically shortsighted. As recently as 2009, Donald Trump joined a handful of other business leaders in signing a full-page ad in the Times urging President Obama to “strengthen” U.S. climate legislation and to “lead the world by example.” The ad insisted that “investing in a Clean Energy Economy will drive state-of-the-art technologies that will spur economic growth, create new energy jobs, and increase our energy security, all while reducing the harmful emissions that are putting our planet at risk. We have the ability and know how to lead the world in clean energy technology.” The other signatories ran the gamut from Ben and Jerry to Martha Stewart, but only Trump had the rest of his key executives sign on: Don, Jr.; Eric; and Ivanka.

    But that was before the sight of wind turbines on the horizon at Trump’s Scottish golf course wounded him grievously. As he wrote to Scotland’s First Minister, in 2011, as his project neared completion, “Unfortunately, instead of celebrating the start of something valuable and beautiful for Scotland, this ugly cloud is hanging over the future of the great Scottish coastline.” And it was nearly fifteen years before oil-and-gas executives spent unprecedented sums during an election cycle; nearly half the amount spent during the 2024 cycle went to Republicans, and the rest on lobbying Congress. We’re not in Kansas (the fourth-largest wind-producing state) anymore.

    The greatest irony of this dramatic turnaround is that in 2009 solar and wind power were still expensive; now they are the cheapest forms of energy on offer. And yet the Administration is digging in. The question is: will it be able to hold that position even as electricity prices begin to rise? (On average, they are up ten per cent so far this year.)

    At the moment, official policy appears to be a complete muddle. The President, on his first day in office in January, declared an “energy emergency” as a way to suspend regulations and allow both increased drilling and the creation of more generating capacity. His team argues that we need far more electricity in order to build data centers that would enable the U.S. to outpace China in the race for “A.I. dominance.” As Trump put it in his Day One declaration, “without immediate remedy,” America’s energy situation “will dramatically deteriorate in the near future due to a high demand for energy and natural resources to power the next generation of technology. The United States’ ability to remain at the forefront of technological innovation depends on a reliable supply of energy and the integrity of our Nation’s electrical grid.” But then came the cascade of decisions designed to restrict the cheapest—and, just as important, fastest to construct—sources of new energy supply. Trump’s team ignored the pleas of actual data-center operators to keep Biden-era rules on renewable energy, which might have let them build what they needed right away. We are, to use a metaphor from the internal-combustion era, stamping on the gas and the brakes at the same time.

    Though Economics 101 would seem to indicate that cutting off the easiest source of new supply while demand is simultaneously rising would inevitably cause prices to climb, the Trump Administration has been rejecting this argument in favor of telling whoppers. Last Wednesday, the President took to Truth Social to insist that “STUPID AND UGLY WINDMILLS ARE KILLING NEW JERSEY. Energy prices up 28% this year, and not enough electricity to take care of state. STOP THE WINDMILLS!” In point of fact, though, the windmills planned for off the Jersey shore have been cancelled, thanks to the Administration. The entire state currently has just six wind turbines, generating nine megawatts of power, which, as the American Clean Power Association points out, is 0.03 per cent of the state’s energy production. Whatever is driving up electricity prices, it isn’t wind—in fact, the states with high levels of wind power, including the very red states of North and South Dakota, Wyoming, and Oklahoma, have some of the lowest electric rates in the country.

    The Administration’s bet seems to be that it can hold back renewable power in this country indefinitely—and perhaps it can. But even here its reach is somewhat limited: Texas, with very little in the way of public lands, continues to lead the nation in installing new clean energy. And, outside our borders, the sun rush continues unabated, which matters because Trump, in his energy-emergency directive, also called on the U. S. to export more fuel, in order to “create jobs and economic prosperity for Americans forgotten in the present economy, improve the United States’ trade balance, help our country compete with hostile foreign powers, strengthen relations with allies and partners, and support international peace and security.” That may be a tall order. We learned last month that China installed two hundred and twelve gigawatts of new solar power in the first six months of the year, compared with twelve in the U.S.; as a result, its carbon emissions have begun to fall, even as its economy keeps growing. (America’s emissions, in contrast, rose sharply over the same period.) And other nations are following China’s lead: Indonesia, the fourth most populous country, announced plans last week for a hundred gigawatts of solar over the next five years. Why? Because it’s so much cheaper than running the diesel generators that currently supply much of that country’s rural electricity. “The estimated levelized cost of electricity (L.C.O.E.) for this system is about $0.12 to $0.15/kWh over the next 25 years, compared to $0.20 to $0.40/kWh for a diesel generator,” the head of a Jakarta-based energy-transition think tank told PV magazine.

    Numbers like that have convinced the International Energy Agency that peak consumption of oil on this planet can’t be far off; the Trump Administration’s response has been, as in other cases, to try to play with the data. It is currently pressuring the I.E.A. (set up by that environmental radical Henry Kissinger in the nineteen-seventies in response to the OPEC oil-price shocks) to fire one of its top officials and replace her with someone who will parrot the White House line that demand for fossil fuels will keep climbing for decades. “They want to get operatives in there, whether they’re career or political, who can actually move the needle,” an unidentified lobbyist told Politico. “They’re going to get someone they trust and that person is going to fight from the inside out.”

    You can only get away with that kind of maneuvering for a while, however, and the Administration’s license may be running out. One fascinating indicator: the world’s hedge funds seem to be placing their bets on solar. Since Liberation Day, Bloomberg reported earlier this month, the main index of renewable funds had risen eighteen per cent, while oil-and-gas shares had fallen four per cent. “If we are going to continue to grow both in developed and emerging economies, we’re going to need a lot of energy,” one analyst explained. “A big chunk of the marginal growth in energy over the last 10 years has come from renewables and it’s hard to see why that isn’t going to continue.”

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    Bill McKibben

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  • This Man Found 1,650 Ways to Turn a Profit While Decarbonizing

    This Man Found 1,650 Ways to Turn a Profit While Decarbonizing

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    Bertrand Piccard says sustainability doesn’t have to come at a cost—and that reframing attempts to hit net zero as a way of generating profit could be key to hitting targets.

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    Rob Reddick

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  • Use solar power, kill a tortoise? Climate change solution carries environmental costs

    Use solar power, kill a tortoise? Climate change solution carries environmental costs

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    Dustin Mulvaney, SJSU environmental studies professor, stands at the SAP Center in San Jose, Calif., on Thurssday, May 2, 2024. Mulvaney believes California has far more than enough alternative space, including parking lots, contaminated land and other areas, that there’s no need for massive solar arrays in pristine areas such as the Mojave Desert. (Shae Hammond/Bay Area News Group) 

    Turn on your toaster, bulldoze a Joshua tree. Flip a light switch, feed an endangered tortoise to a badger.

    Solar power, widely seen as humanity’s best hope for avoiding catastrophic climate change, can carry a heavy environmental cost, depending on where panels and transmission lines are built.

    Some of that infrastructure — providing electricity to millions of Californians — is going into places it should not, says San Jose State University environmental studies professor and sustainable energy expert, Dustin Mulvaney. Killing plants and animals, of course, is not a goal for solar developers, but the collateral damage has sparked bitter debate over where panels and lines belong.

    California has done a good job of protecting its public lands while facilitating solar development, Mulvaney says. But many residents are powering their homes with electricity from Nevada, where pristine natural areas are taking an increasingly hard hit, and from private, California projects in important animal and plant habitats, he says.

    Several “aggregators” — community-based alternatives to utility giants that are often marketed as “clean” — have contracts for power from a Southern California project that would see 4,000 Joshua trees leveled, he says. Other projects feeding aggregators bring significant loss of wildlife habitat.

    Mulvaney believes sacrificing nature for solar is unnecessary. California could meet its electricity needs by putting solar panels on just a tenth of its contaminated sites, old mines, unusable former farmlands, parking lots and other disturbed areas, he says. “We need to be building out our electricity transmission infrastructure toward those sites,” Mulvaney says. The more solar close to major urban areas, the better, he adds. Every home and Amazon warehouse presents another rooftop-solar opportunity, he says.

    This news organization sat down with Mulvaney recently to discuss solar power. The interview has been edited for length and clarity.

    Q: Describe the controversy over where to put solar generation facilities?
    A: Most big solar farms are not controversial. They get controversial when they go onto landscapes that are of significance, either ecological significance or cultural significance — sometimes there are important cultural resources for tribes.

    Q: Do we have need for both rooftop solar and utility-scale solar?
    A: We should have more rooftop, but we’re going to need more utility scale based on the way our grid is built.

    Q: Why do we have solar developments and proposals for pristine areas, when already-altered land is available?
    A: Transmission lines are why we see projects where they are. Back in the ’60s we built transmission lines to connect to coal-fired power plants in the western United States. As those coal-fired power plants are turning off, those transmission lines suddenly have power availability. The (planned new) Greenlink transmission line which is going to connect Las Vegas and Reno goes through a Native American site and through a bunch of sensitive ecosystems. And we’re already seeing applications for solar farms along that transmission corridor. That’s going to be power that goes to California, probably. Nevada has fewer protections for its public lands.

    Q: What roles do the big utilities like PG&E and Southern California Edison play in where solar farms go up?
    A: The community choice aggregators are playing a bigger role than the utilities in determining these development patterns now. The community choice aggregators are doing much of the (power) purchasing. For the Yellow Pine solar farm on the Nevada border (to produce electricity for Silicon Valley Clean Energy and Central Coast Community Energy), lots of desert tortoises had to be removed from that site. Forty-something of those tortoises were eaten by badgers right away.

    Q: Could we meet our electricity needs without big solar farms?
    A: There’s nothing theoretically prohibiting rooftop solar and batteries from powering a community. Do you have enough sun? We get those back to back to back to back cyclones in the winter. Sometimes the cloud cover’s all the way across the Central Valley. Do you have enough batteries? The battery storage probably makes that prohibitively expensive at this stage. It would require rethinking how we move power around.

    Q: What do we stand to lose by putting big solar farms in the wilderness?
    A: All sorts of species, old-growth barrel cactus, desert tortoise, kit fox. The desert tortoise just last week was up-listed by the California Department of Fish and Game to be endangered. That species has lost 90% of its population since 1980. Bighorn sheep and pronghorn antelope are impacted by solar farms because their habitat gets fragmented by them. Their populations get more isolated, they have inbreeding.

    Q: Could we meet all our needs without putting solar on undisturbed wilderness?
    A: There’s a great study. You can avoid important lands to conservation and it would only increase the cost of power by 3%, based on their estimates.

    Q: Where are some places where you could put reasonable amounts of solar generation to help avoid bringing power in from the desert or Nevada?
    A: On the western side of the Central Valley a lot of those soils are contaminated with selenium. That would be an area where you could have less impact. That’s where you could put pretty big utility scale projects that would be really close to the Bay Area, and above the bottleneck — California has a (power line capacity) bottleneck for the power, around Los Banos. We have to build more renewables above the bottleneck in northern California to help the Bay Area.

    Q: What about Southern California?
    A: You have a lot of renewables in Southern California already. Southern California just needs more rooftop solar on their warehouses and things like that.

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    Ethan Baron

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  • Solar-Powered Farming Is Quickly Depleting the World’s Groundwater Supply

    Solar-Powered Farming Is Quickly Depleting the World’s Groundwater Supply

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    That is certainly the case in Yemen, on the south flank of the Arabian Peninsula, where the desert sands have a new look these days. Satellite images show around 100,000 solar panels glinting in the sun, surrounded by green fields. Hooked to water pumps, the panels provide free energy for farmers to pump out ancient underground water. They are irrigating crops of khat, a shrub whose narcotic leaves are the country’s stimulant of choice, chewed through the day by millions of men.

    For these farmers, the solar irrigation revolution in Yemen is born of necessity. Most crops will only grow if irrigated, and the country’s long civil war has crashed the country’s electricity grid and made supplies of diesel fuel for pumps expensive and unreliable. So, they are turning en masse to solar power to keep the khat coming.

    The panels have proved an instant hit, says Middle East development researcher Helen Lackner of SOAS University of London. Everybody wants one. But in the hydrological free-for-all, the region’s underground water, a legacy of wetter times, is running out.

    The solar-powered farms are pumping so hard that they have triggered “a significant drop in groundwater since 2018 … in spite of above average rainfall,” according to an analysis by Leonie Nimmo, a researcher who was until recently at the UK-based Conflict and Environment Observatory. The spread of solar power in Yemen “has become an essential and life-saving source of power,” both to irrigate food crops and provide income from selling khat, he says, but it is also “rapidly exhausting the country’s scarce groundwater reserves.”

    In the central Sana’a Basin, Yemen’s agricultural heartland, more than 30 percent of farmers use solar pumps. In a report with Musaed Aklan, a water researcher at the Sana’a Center for Strategic Studies, Lackner predicts a “complete shift” to solar by 2028. But the basin may be down to its last few years of extractable water. Farmers who once found water at depths of 100 feet or less are now pumping from 1,300 feet or more.

    Some 1,500 miles to the northeast, in in the desert province of Helmand in Afghanistan, more than 60,000 opium farmers have in the past few years given up on malfunctioning state irrigation canals and switched to tapping underground water using solar water pumps. As a consequence, water tables have been falling typically by 10 feet per year, according to David Mansfield, an expert on the country’s opium industry from the London School of Economics.

    An abrupt ban on opium production imposed by Afghanistan’s Taliban rulers in 2022 may offer a partial reprieve. But the wheat that the farmers are growing as a replacement is also a thirsty crop. So, water bankruptcy in Helmand may only be delayed.

    “Very little is known about the aquifer [in Helmand], its recharge or when and if it might run dry,” according to Mansfield. But if their pumps run dry, many of the million-plus people in the desert province could be left destitute, as this vital desert resource—the legacy of rainfall in wetter times—disappears for good.

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    Fred Pearce

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  • 8 Trends to Watch Out for In Grid Energy | Entrepreneur

    8 Trends to Watch Out for In Grid Energy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    For many, the future of energy seems so close yet too far away. That image is coming into view but is still blurry and distant for many. As a clean grid energy expert, the future is now. These technologies exist, and they’re getting better every day. They will define what the energy grid and the homes and businesses of the next 50 to 100 years it supports will look like.

    For over 20 years, I’ve been working and leading in the energy-saving and home improvement industry. I’ve been learning and using my years of experience to educate people about green living for years. More recently, I’ve been working on the prototype for the home of the future in Denver, CO. Here are some of the energy trends and innovations I see as promising for energy-efficient homes of today and tomorrow.

    1. Grid analytics

    Grids can now collect obscene amounts of data on how energy is used. It can track connected asset performance and identify equipment issues. It can identify trends associated with the time of year and weather patterns through predictive analytics to manage energy production, storage and distribution effectively.

    Related: 5 Renewable Energy Sources To Look Out For in 2024 and Beyond

    2. Grid AI

    Artificial intelligence can use machine learning to adapt automatically to trends. Imagine a grid that ramps energy production up and down ideally to reduce wasted resources, driving energy efficiency up and, over time, the cost to manage energy down.

    In the shorter term, grid AI switches between renewable and non-renewable energy sources. In the future, it can shift among renewable to reach the most eco-friendly and cost-effective mix based on environmental or other factors.

    3. Remote microgrids

    Microgrids deliver hyper-local energy to rural locations. Rather than depending on a more extensive energy grid infrastructure with so many ways to fail between the grid and place, a microgrid produces and stores the energy where it’s needed, using whichever renewables are most available.

    4. Suburban and urban microgrids

    Today, many microgrids are treated as backup systems for essential services like hospitals, critical data centers, or disaster relief command posts. But as the technology advances, we’ll see many more communities using microgrids for everyday applications and even in more urban areas.

    This would mean localizing power to “keep the lights on” while staying connected to (but able to disconnect from) a larger grid. With the concern over the potential for strategic attacks on energy grids, decentralizing the grids is a promising solution.

    Related: 6 Tips to Invest in Renewable Energy Now

    5. EV-supportive grid management

    Fossil fuel usage continues to be one of the biggest environmental threats. Electric vehicles can reduce our dependence. But problems exist. Charging thousands of EVs taxes older energy grids and makes owning an EV cost-prohibitive for the average family.

    Green energy grids can and are working with EV owners to solve these problems. Vehicle to Grid (V2G) technology allows EVs to return power to the grid when needed without inconveniencing the car owner. Furthermore, it starts charging the vehicle when demand drops, helping the grid balance more efficiently and preventing blackouts. Whether energy companies reduce rates during non-peak hours or provide specific discount incentives for EV owners using this technology, this system can significantly reduce EV ownership costs.

    6. Grid cybersecurity

    As mentioned, centralized grids are increasingly at risk. While physical attacks are possible, cyber-attacks are much more likely. So, it’s no surprise that grids get a makeover with tools like data encryptions, anomaly monitoring, and faster threat detection and response.

    Related: Here’s Why Solar Entrepreneurs Don’t Go Off the Grid

    7. Longer and more energy storage

    We’ve taken leaps and bounds in the energy storage sector. The U.S. Energy Information Administration (EIA) has said storage capacity will double in 2024 and continue to increase, making the storage of renewable energy a more viable option in the longer term, further reducing dependence on non-renewable backups or supplementation. At the same time, the storage cost is declining as capacity increases and battery degradation decreases.

    8. The solar grid side hustle

    As Kartik Menon pointed out in their recent article, improvements in grid analytics and connectivity have the potential to open up a new solar side hustle and regional energy collaboration. As sun-soaked homes generate more power than they can use or store during peak production, they need a marketplace to offload the excess and potentially pay for energy when production is low. This system could turn whole blocks into microgrids of neighbors sharing resources.

    Grid energy is essential to daily life. But the grids of tomorrow are going to look very different. More efficiency, decentralization, greater security, and AI-powered optimizations will help grids power through and deliver to their customers. We’ve already seen these technologies take shape today, but they still have a way to go. While there is undoubtedly more to be discovered and missing links to be revealed, we’re on our way to the green-energy-powered world we want to see.

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    Abe Issa

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  • Fonroche Lighting America Helps the City of Keene Illuminate the Future

    Fonroche Lighting America Helps the City of Keene Illuminate the Future

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    Moving Toward 100% Renewable Energy with Cutting-Edge Solar Street Lighting Installation

    The City of Keene is embracing a sustainable future. In 2019, the city set a goal to power all its electricity needs with renewable sources by 2030 and to achieve 100% renewable thermal and transportation energy by 2050. While these objectives extend to the entire community, Keene is leading by example through its municipal operations. Today, Keene is taking the transformation to the streets, installing a total of 26 Fonroche solar streetlights on Winchester Avenue and Roxbury Street.   

    Keene’s Commitment

    Since setting its renewable energy targets, Keene has translated commitment into action across various fronts. Initiatives include solar power generation at City Hall, geothermal-powered HVAC at the Public Works Department, biodiesel conversion for city vehicles, and hydroelectric turbines at the Water Treatment Plant. Keene’s recent solar street lighting projects are designed to evaluate the feasibility of converting the municipality’s outdoor lighting to solar power. 

    Winchester Renovation Project Overview

    Winchester Street stands as a crucial gateway to the City of Keene. Recent upgrades involve repaving, the establishment of roundabouts at two intersections, and enhancements catering to pedestrians, cyclists, and vehicular traffic. Roundabouts, proven to enhance intersection safety, are made even safer with the incorporation of solar lighting.

    The electrified streetlights on Winchester Street have now given way to autonomous solar street lighting from Fonroche Lighting America. Keene had previously installed two of these innovative lights on Roxbury Avenue in early 2023 as a precursor to the Winchester Street project.

    Technology Highlights

    In collaboration with McFarland Johnson, Keene employed the same lighting standards used for conventional lighting in the project’s design. Beyond providing illumination, solar-powered lighting offers additional advantages. Firstly, they operate on 100% renewable energy. The installation of 26 street lights is expected to save Keene from using 91,000 kWh of electricity and offset more than 64 metric tons of CO2 over the anticipated 20-year lifespan of the project.

    The SmartLight lighting system is designed for the challenging Northeastern climate, featuring advanced NIMH batteries with a service life of 10 years or more. This longevity significantly reduces maintenance requirements for the city. Moreover, the lights contribute to the city’s resilience, remaining operational during utility outages and emergencies. The absence of underground cables also makes them immune to copper theft and malicious vandalism. 

    City Engineer Donald Lussier perceives this project as an opportunity to assess the feasibility of further “unplugging” the city’s outdoor lighting in alignment with Keene’s 100% renewable goal. His initial impression? “They look really good and seem to be working well.”

    This well-designed solar street lighting initiative not only brightens Keene’s streets but also illuminates a path toward a more sustainable and resilient future.

    Source: Fonroche Lighting America

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  • 6 Tips to Invest in Renewable Energy Now | Entrepreneur

    6 Tips to Invest in Renewable Energy Now | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Around the globe, clean energy investment has never been higher, creating plenty of opportunities for investors who want to take advantage of trends like recovering supply chains, the IRA (Inflation Reduction Act), and more. But where to begin?

    Many large companies such as CEG and FLNC are performing well, but energy stocks can shift (especially with inflation-targeting interest rates being high right now), and sometimes quickly! How do you know where to focus your investments? Talking to your financial advisor is always a good start, but I also have several tips on where to begin with healthy renewable energy investment for the coming years.

    1. Solar and EVs are hot markets

    In the early 2020s, two rapidly expanding areas are solar power and EV (electric vehicle) investment, making these sectors great places to start. Both are seeing high growth due to pent-up demand during the pandemic and more widespread adoption in low-saturation areas.

    As with much clean energy spending, investments primarily focus on a few high-growth regions, including China, the EU, the United States and Japan. But opportunities also exist in smaller markets where numbers are starting to rise, notably India, Africa and Brazil. There’s plenty of growth potential in all these regions, especially as EVs grow increasingly familiar with infrastructure build-out to support them. This remains primarily focused on urban growth with excursions into commercial markets for short-length delivery and freight.

    Related: 5 Top Green Energy Stocks To Look Out for in 2023

    2. Invest in the most vital supply points

    As you research potential investments, remember that some parts of the renewable supply chain still need to be stronger or are particularly important to the long-term success of products. That includes makers of battery storage components, which are necessary to utilize solar and EV-related energy investments fully. It includes makers of the latest high-quality photovoltaics, ocean-rated turbines and micro-inverters. For some examples, look into the operations of First Solar (FSLR), Enphase (ENPH), Vestas (VWS) and SunPower (SPWR).

    Related: Oil and Gas Stocks: A Safe Way to Invest in Renewable Energy

    3. EFTs remain a safe, powerful bet

    For many years, one of the most reliable ways to invest in clean energy was EFTs (exchange-traded funds) specializing in renewable markets. Because renewable energy is seeing lots of global growth across many sectors, fueled partly by concerns about traditional supplies from Russia and Iran, EFTs are strong if low-risk options to get started on energy investments.

    Another thing I like about today’s EFTs is that they allow for broad targeting of specific sectors. For example, FAN focuses on wind deployments, and TAN is on solar. Each fund has a portfolio with mixes weighted toward various technologies.

    4. Long-term investment in the global south

    For ground-floor investments with lots of long-term growth opportunities in the next decade, I suggest looking toward the global south. Currently, the global south is seeing a significant shortage of renewable investment compared to many northern regions. Brazil and Australia have growing opportunities, but Africa and many parts of South America still need development. There are lots of options here for investors who don’t mind a slow burn and want to take advantage of projects in the making.

    Related: 5 Long-term Strategies To Create Wealth

    5. Wind and hydrogen are poised for steady growth

    Wind has come a long way in recent years, and many farms, especially offshore options in ideal global locations, are planned for the 2020s. Like solar, wind has many entry points for investment, from turbine creation and other manufacturing to battery storage capabilities. The EU, USA, and China all have many farms in various stages of development, most focused on using the latest engineering and software to maximize efficiency.

    Hydrogen is also in a good spot. Much of the discussion focuses on green hydrogen, which uses low-carbon techniques. Green hydrogen has the potential to meet many business-related carbon footprint goals, so its use could spread across the United States and the EU, as well as other nations, in the coming decade. But anywhere with the potential for hydrogen infrastructure shows promise.

    6. YieldCos continue to show potential

    YieldCos are ambitious investment vehicles that purchase power generation assets directly with a focus on profit growth that translates to high dividends. If dividends are your goal, look into YieldCos as a higher-risk option with lots of opportunities for returns…especially once interest rates and inflation finish cooling down.

    This is just the start of the potential investments in renewable energy. It’s an industry that covers multiple fields, including rare earth, shipping companies and many types of manufacturing. Clean energy has never been more popular, but watching the (metaphorical) headwinds and political movements is always a good idea as you balance your portfolio.

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    Abe Issa

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  • These 20 stocks in the S&P 500 are expected to soar after rising interest rates have pushed down valuations

    These 20 stocks in the S&P 500 are expected to soar after rising interest rates have pushed down valuations

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    Two things investors can be sure about: Nothing lasts forever and the stock market always overreacts. The spiking of yields on long-term U.S. Treasury securities has been breathtaking, and it has led to remarkable declines for some sectors and possible bargains for contrarian investors who can commit for the long term.

    First we will show how the sectors of the S&P 500

    have performed. Then we will look at price-to-earnings valuations for the sectors and compare them to long-term averages. Then we will screen the entire index for companies trading below their long-term forward P/E valuation averages and narrow the list to companies most favored by analysts.

    Here are total returns, with dividends reinvested, for the 11 sectors of the S&P 500, with broad indexes below. The sectors are sorted by ascending total returns this year through Monday.

    Sector or index

    2023 return

    2022 return

    Return since end of 2021

    1 week return

    1 month return

    Utilities

    -18.4%

    1.6%

    -17.2%

    -11.1%

    -9.6%

    Real Estate

    -7.1%

    -26.1%

    -31.4%

    -3.0%

    -8.8%

    Consumer Staples

    -5.4%

    -0.6%

    -6.0%

    -2.2%

    -4.4%

    Healthcare

    -4.2%

    -2.0%

    -6.1%

    -1.7%

    -3.3%

    Financials

    -2.5%

    -10.5%

    -12.7%

    -2.5%

    -4.7%

    Materials

    1.3%

    -12.3%

    -11.2%

    -1.9%

    -7.0%

    Industrials

    3.5%

    -5.5%

    -2.1%

    -1.8%

    -7.3%

    Energy

    4.0%

    65.7%

    72.4%

    -1.9%

    -1.4%

    Consumer Discretionary

    27.0%

    -37.0%

    -20.0%

    -0.6%

    -5.2%

    Information Technology

    36.5%

    -28.2%

    -2.0%

    0.8%

    -5.9%

    Communication Services

    42.5%

    -39.9%

    -14.3%

    1.1%

    -1.3%

    S&P 500
    13.1%

    -18.1%

    -7.4%

    -1.1%

    -4.9%

    DJ Industrial Average
    2.5%

    -6.9%

    -4.5%

    -1.7%

    -4.0%

    Nasdaq Composite Index
    COMP
    28.0%

    -32.5%

    -13.7%

    0.3%

    -5.1%

    Nasdaq-100 Index
    36.5%

    -32.4%

    -7.7%

    0.5%

    -4.2%

    Source: FactSet

    Returns for 2022 are also included, along with those since the end of 2021. Last year’s weakest sector, communications services, has been this year’s strongest performer. This sector includes Alphabet Inc.
    GOOGL
    and Meta Platforms Inc.
    META,
    which have returned 52% and 155% this year, respectively, but are still down since the end of 2021. To the right are returns for the past week and month through Monday.

    On Monday, the S&P 500 Utilities sector had its worst one-day performance since 2020, with a 4.7% decline. Investors were reacting to the jump in long-term interest rates.

    Here is a link to the U.S. Treasury Department’s summary of the daily yield curve across maturities for Treasury securities.

    The yield on 10-year U.S. Treasury notes

    jumped 10 basis points in only one day to 4.69% on Monday. A month earlier the 10-year yield was only 4.27%. Also on Monday, the yield on 20-year Treasury bonds

    rose to 5.00% from 4.92% on Friday. It was up from 4.56% a month earlier.

    Market Extra: Bond investors feel the heat as popular fixed-income ETF suffers lowest close since 2007

    The Treasury yield curve is still inverted, with 3-month T-bills

    yielding 5.62% on Monday, but that was up only slightly from a month earlier. An inverted yield curve has traditionally signaled that bond investors expect a recession within a year and a lowering of interest rates by the Federal Reserve. Demand for bonds pushes their prices down. But the reverse has happened over recent days, with the selling of longer-term Treasury securities pushing yields up rapidly.

    Another way to illustrate the phenomenon is to look at how the Federal Reserve has shifted the U.S. money supply. Odeon Capital analyst Dick Bove wrote in a note to clients on Friday that “the Federal Reserve has not deviated from its policy to defeat inflation by tightening monetary policy,” as it has shrunk its balance sheet (mostly Treasury securities) to $8.1 trillion from $9 trillion in March 2022. He added: “The M2 money supply was $21.8 trillion in March 2022; today it is $20.8 trillion. You cannot get tighter than these numbers indicate.”

    Then on Tuesday, Bove illustrated the Fed’s tightening and the movement of the 10-year yield with two charts:


    Odeon Capital Group, Bloomberg

    Bove said he believes the bond market has gotten it wrong, with the inverted yield curve reflecting expectations of rate cuts next year. If he is correct, investors can expect longer-term yields to keep shooting up and a normalization of the yield curve.

    This has set up a brutal environment for utility stocks, which are typically desired by investors who are seeking dividend income. In a market in which you can receive a yield of 5.5% with little risk over the short term, and in which you can lock in a long-term yield of about 5%, why take a risk in the stock market? And if you believe that the core inflation rate of 3.7% makes a 5% yield seem paltry, keep in mind that not all investors think the same way. Many worry less about the inflation rate because large components of official inflation calculations, such as home prices and car prices, don’t affect everyone every year.

    We cannot know when this current selloff of longer-term bonds will end, or how much of an effect it will have on the stock market. But sharp declines in the stock market can set up attractive price points for investors looking to go in for the long haul.

    Screening for lower valuations and high ratings

    A combination of rising earnings estimates and price declines could shed light on potential buying opportunities, based on forward price-to-earnings ratios.

    Let’s look at the sectors again, in the same order, this time to show their forward P/E ratios, based on weighted rolling 12-month consensus estimates for earnings per share among analysts polled by FactSet:

    Sector or index

    Current P/E to 5-year average

    Current P/E to 10-year average

    Current P/E to 15-year average

    Forward P/E

    5-year average P/E

    10-year average P/E

    15-year average P/E

    Utilities

    82%

    86%

    95%

    14.99

    18.30

    17.40

    15.82

    Real Estate

    76%

    80%

    81%

    15.19

    19.86

    18.89

    18.72

    Consumer Staples

    93%

    96%

    105%

    18.61

    19.92

    19.30

    17.64

    Healthcare

    103%

    104%

    115%

    16.99

    16.46

    16.34

    14.72

    Financials

    88%

    92%

    97%

    12.90

    14.65

    14.08

    13.26

    Materials

    100%

    103%

    111%

    16.91

    16.98

    16.42

    15.27

    Industrials

    88%

    96%

    105%

    17.38

    19.84

    18.16

    16.56

    Energy

    106%

    63%

    73%

    11.78

    11.17

    18.80

    16.23

    Consumer Discretionary

    79%

    95%

    109%

    24.09

    30.41

    25.39

    22.10

    Information Technology

    109%

    130%

    146%

    24.20

    22.17

    18.55

    16.54

    Communication Services

    86%

    86%

    94%

    16.41

    19.09

    19.00

    17.43

    S&P 500
    94%

    101%

    112%

    17.94

    19.01

    17.76

    16.04

    DJ Industrial Average
    93%

    98%

    107%

    16.25

    17.49

    16.54

    15.17

    Nasdaq Composite Index
    92%

    102%

    102%

    24.62

    26.71

    24.18

    24.18

    Nasdaq-100 Index
    97%

    110%

    126%

    24.40

    25.23

    22.14

    19.43

    There is a limit to how many columns we can show in the table. The S&P 500’s forward P/E ratio is now 17.94, compared with 16.79 at the end of 2022 and 21.53 at the end of 2021. The benchmark index’s P/E is above its 10- and 15-year average levels but below the five-year average.

    If we compare the current sector P/E numbers to 5-, 10- and 15-year averages, we can see that the current levels are below all three averages for four sectors: utilities, real estate, financials and communications services. The first three face obvious difficulties as they adjust to the rising-rate environment, while the real-estate sector reels from continuing low usage rates for office buildings, from the change in behavior brought about by the COVID-19 pandemic.

    Your own opinions, along with the pricing for some sectors, might drive some investment choices.

    A broader screen of the S&P 500 might point to companies for you to research further.

    We narrowed the S&P 500 as follows:

    • Current forward P/E below 5-, 10- and 15-year average valuations. For stocks with negative earnings-per-share estimates for the next 12 months, there is no forward P/E ratio so they were excluded. For stocks listed for less than 15 years, we required at least a 5-year average P/E for comparison. This brought the list down to 138 companies.

    • “Buy” or equivalent ratings from at least two-thirds of analysts: 41 companies.

    Here are the 20 companies that passed the screen, for which analysts’ price targets imply the highest upside potential over the next 12 months.

    There is too much data for one table, so first we will show the P/E information:

    Company

    Ticker

    Current P/E to 5-year average

    Current P/E to 10-year average

    Current P/E to 15-year average

    SolarEdge Technologies Inc.

    SEDG 89%

    N/A

    N/A

    AES Corp.

    AES 66%

    75%

    90%

    Insulet Corp.

    PODD 18%

    N/A

    N/A

    United Airlines Holdings Inc.

    UAL 42%

    50%

    N/A

    Alaska Air Group Inc.

    ALK 51%

    57%

    N/A

    Tapestry Inc.

    TPR 39%

    49%

    70%

    Albemarle Corp.

    ALB 39%

    50%

    73%

    Delta Air Lines Inc.

    DAL 60%

    63%

    21%

    Alexandria Real Estate Equities Inc.

    ARE 59%

    68%

    N/A

    Las Vegas Sands Corp.

    LVS 96%

    78%

    53%

    Paycom Software Inc.

    PAYC 61%

    N/A

    N/A

    PayPal Holdings Inc.

    PYPL 33%

    N/A

    N/A

    SBA Communications Corp. Class A

    SBAC 27%

    N/A

    N/A

    Advanced Micro Devices Inc.

    AMD 58%

    39%

    N/A

    LKQ Corp.

    LKQ 92%

    44%

    78%

    Charles Schwab Corp.

    SCHW 75%

    54%

    73%

    PulteGroup Inc.

    PHM 94%

    47%

    N/A

    Lamb Weston Holdings Inc.

    LW 71%

    N/A

    N/A

    News Corp Class A

    NWSA 93%

    73%

    N/A

    CVS Health Corp.

    CVS 75%

    61%

    67%

    Source: FactSet

    Click on the tickers for more about each company or index.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    News Corp
    NWSA
    is on the list. The company owns Dow Jones, which in turn owns MarketWatch.

    Here’s the list again, with ratings and consensus price-target information:

    Company

    Ticker

    Share “buy” ratings

    Oct. 2 price

    Consensus price target

    Implied 12-month upside potential

    SolarEdge Technologies Inc.

    SEDG 74%

    $122.56

    $268.77

    119%

    AES Corp.

    AES 79%

    $14.16

    $25.60

    81%

    Insulet Corp.

    PODD 68%

    $165.04

    $279.00

    69%

    United Airlines Holdings Inc.

    UAL 71%

    $41.62

    $69.52

    67%

    Alaska Air Group Inc.

    ALK 87%

    $36.83

    $61.31

    66%

    Tapestry Inc.

    TPR 75%

    $28.58

    $46.21

    62%

    Albemarle Corp.

    ALB 81%

    $162.41

    $259.95

    60%

    Delta Air Lines Inc.

    DAL 95%

    $36.45

    $58.11

    59%

    Alexandria Real Estate Equities Inc.

    ARE 100%

    $98.18

    $149.45

    52%

    Las Vegas Sands Corp.

    LVS 72%

    $45.70

    $68.15

    49%

    Paycom Software Inc.

    PAYC 77%

    $260.04

    $384.89

    48%

    PayPal Holdings Inc.

    PYPL 69%

    $58.56

    $86.38

    48%

    SBA Communications Corp. Class A

    SBAC 68%

    $198.24

    $276.69

    40%

    Advanced Micro Devices Inc.

    AMD 74%

    $103.27

    $143.07

    39%

    LKQ Corp.

    LKQ 82%

    $49.13

    $67.13

    37%

    Charles Schwab Corp.

    SCHW 77%

    $53.55

    $72.67

    36%

    PulteGroup Inc.

    PHM 81%

    $73.22

    $98.60

    35%

    Lamb Weston Holdings Inc.

    LW 100%

    $92.23

    $123.50

    34%

    News Corp Class A

    NWSA 78%

    $20.00

    $26.42

    32%

    CVS Health Corp.

    CVS 77%

    $69.69

    $90.88

    30%

    Source: FactSet

    A year may actually be a short period for a long-term investor, but 12-month price targets are the norm for analysts working for brokerage companies.

    Don’t miss: This fund shows that industry expertise can help you make a lot of money in the stock market

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  • Understanding the Latest Trends in the Global Energy Industry | Entrepreneur

    Understanding the Latest Trends in the Global Energy Industry | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    From the energy proposals in the Inflation Reduction Act to new concerns about fuel dependency following the war in Ukraine, it’s been a hectic couple of years for the energy industry, both in the United States and globally. There are several important current trends worth keeping an eye on in 2023 to see how the energy industry, particularly renewables, responds.

    Here are several of the most important trends I’ve noticed for renewable energy companies (and investors). These forces are having the biggest impact right now.

    Fuel costs remain high, with mixed results for renewables

    I expect fuel costs to remain very high, especially natural gas, coal and oil. Global prices have decreased somewhat in 2023, but reports still indicate that energy prices are hovering at an incredible 75% above the average heading into next year. Reasons for this include the war in Ukraine and sanctions against Russia, new geopolitical alignments that have cut oil production, and general high demand in many sectors.

    Some nations are focusing even more on fuel production as a result. United States’ natural gas production and exports have increased, for example. But these high prices have also pushed more investment in renewable energy and helped encourage removing some of the older barriers to development. If your renewable energy business is ripe for expansion or new partners, now is an excellent time to develop a proposal and focus on the need for energy independence, regardless of what’s happening in the world.

    That also means more competition for renewables, but there’s plenty of room for growth in many sectors and energy transition plans pick up steam.

    Related: 3 Ways to Make a Commitment to Sustainability Your Customers Want to See

    Energy storage heats up

    The continued growth of renewable energy in 2023 has also led to realizations worldwide that renewable energy storage hasn’t quite been keeping up with demand. In the United States, this trend with a renewed focus on batteries, from EVs to helping regulate solar systems across the country. Japan and China are also working on increasing battery availability.

    Batteries are only one part of the supply chain issue clean energy is seeing, albeit one of the most notable. But increased production following Covid-19 is helping reduce these tensions and improve production results. Manufacturers should start looking for better supply options if they’re struggling – things are improving!

    Related: Tesla is Quietly Working on a Project to Help Texas’ Power Grid

    The nuclear pendulum swings back up

    Nuclear energy has been an infuriating prospect for energy investors in recent years. It has the potential to fill an ideal niche in the renewables market and circumvents some of the steep problems involved in transitioning to clean energy. But the public generally hates it, and research is conducted at a snail’s pace. Also, renewed fears of nuclear attack or contamination in Ukraine have not been inspiring for the sector. But there’s also lots of good news.

    In 2023, nuclear may finally be ready to assume a key place in clean energy plans worldwide. Germany is rethinking after pulling back from nuclear power in recent years. New plants are being built in Georgia (U.S.), and American research continues to unveil new ways to make nuclear energy more efficient for older reactors and safer for newer models being planned. Turkey, Egypt and China are also investing in new nuclear plants as well. Now’s the time for nuclear to show the role it will take.

    States war between renewables and the old guard

    This trend is most noticeable in solar states like California and Florida. Still, it is happening in many ways across the U.S. Existing power producers, fiercely protective of their rate management and grid operation, are lobbying hard to prevent consumers from benefiting from their solar use. That includes getting rid of credits from selling excess power and limiting future solar installation opportunities. This underlines the need for the renewables industry to spend time on representation and answering proposals like this with quick, decisive alternatives.

    Offshore wind is continuing its march in the United States, with wind companies looking to the 19 GW of offshore wind power working through the permitting phase in 2023. This will unleash a wave of new development in the coming years. Wind is just getting ready for a very eventful decade, but long-term planning is required.

    Related: Top Solar Energy Trends To Look Out For in 2023 and Beyond

    How clean hydrogen has new potential

    One exciting development I noted from the Inflation Reduction Act changes was a new emphasis on clean hydrogen. Also called green hydrogen, this type of hydrogen is safely produced and disposed of without creating a significant carbon footprint. It’s fairly rare in the United States, which uses mostly “gray” hydrogen production. But the IRA includes big tax credits for clean hydrogen, which will likely prompt a mass transition through the United States and open up many new opportunities for carbon reduction programs.

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  • International Space Station Fast Facts | CNN

    International Space Station Fast Facts | CNN

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    CNN
     — 

    Here’s a look at the International Space Station (ISS), a spacecraft built by a partnership of 16 nations: United States, Canada, Japan, Russia, Brazil, Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom.

    Information on ISS crews and expeditions can be found here.

    The ISS includes three main modules connected by nodes: the US Laboratory Module Destiny, the European Research Laboratory Columbus, and the Japanese Experiment Module Kibo (Hope). Each was launched separately and connected in space by astronauts.

    Mass: 925,335 pounds (419,725 kilograms)

    Habitable Volume: 13,696 cubic feet (388 cubic meters)

    Solar Array Length: 239 feet (75 meters)

    The ISS orbits Earth 16 times a day.

    As of June 22, 2023, 266 spacewalks have been conducted for station assembly and maintenance.

    November 1998 – A Russian Proton rocket places the first piece, the Zarya module, in orbit.

    December 1998 – The space shuttle Endeavour crew, on the STS-88 mission, attaches the Unity module to Zarya initiating the first ISS assembly sequence.

    June 1999 – The space shuttle Discovery crew, on mission STS-96, supplies two modules with tools and cranes.

    July 2000 – Zvezda, the fifth flight, docks with the ISS to become the third major component of the station.

    November 2000 – The first permanent crew, Expedition One, arrives at the station.

    November/December 2000 – The space shuttle Endeavour crew, on mission STS-97, installs the first set of US solar arrays on the station and visits Expedition One.

    February 2001 – Mission STS-98 delivers the US Destiny Laboratory Module.

    March 2001 – STS-102 delivers Expedition Two to the station and brings Expedition One home. The crew also brings Leonardo, the first Multi-Purpose Logistics Module, to the station.

    September 16, 2001 – The Russian Docking Compartment, Pirs, arrives at the ISS.

    June 2002 – STS-111 delivers the Expedition Five crew and brings the Expedition Four crew home. The crew also brings the Mobile Base System to the orbital outpost.

    December 2002 – STS-113 delivers the Expedition Six crew and the P1 Truss.

    May 3, 2003 – Expedition Six crew return to Earth on Soyuz TMA-1. Crew members Kenneth Bowersox and Don Pettit are the first American astronauts ever to land in a Soyuz spacecraft.

    July 29, 2003 – Marks the 1,000th consecutive day of people living and working aboard the ISS (this is a record for the station, but not for space).

    August 10, 2003 – Russian Cosmonaut Yuri Malenchenko marries his fiancée Ekaterina Dmitriev from space. The bride and groom exchange vows over a hotline set up for the event. Dmitriev stands next to a life-sized picture of Malenchenko.

    April 22, 2004 – The second of four gyroscopes that stabilize the orbiting outpost of the ISS fails. NASA officials say this does not pose an immediate threat to the crew. An extra spacewalk will have to be conducted to the fix the electrical component box thought to be at fault.

    November 2, 2005 – Fifth anniversary of continuous human presence in space on the ISS.

    February 3, 2006 – SuitSat-1, an unmanned space suit containing a radio transmitter is deployed as a part of an ISS spacewalk. The suit is supposed to transmit recorded messages in six languages to school children and amateur radio operators for several days before reentering Earth’s atmosphere and burning up, but it goes silent shortly after its deployment.

    March 31, 2006 – Arriving with the crew of Expedition Thirteen is Marcos Pontes, the first Brazilian astronaut. Staying eight days, Pontes conducts scientific experiments before returning to Earth with the crew of Expedition Twelve.

    July 7, 2006 – The arrival of Thomas Reiter of Germany via the Space Shuttle Discovery returns the station’s long-duration crew to three for the first time since May 2003 and the Columbia shuttle disaster. Reiter is the first non-US and non-Russian long-duration station crewmember, and he remains onboard during the first part of Expedition Fourteen.

    September 9, 2006 – Space Shuttle Atlantis docks with the ISS, delivering the P3/P4 truss and its solar wings before undocking September 21 and returning to Earth.

    September 20, 2006 – Arriving with the crew of Expedition Fourteen is Anousheh Ansari, an American businesswoman. She spends about eight days conducting experiments and blogging about her experiences before returning to Earth with two of the three members of Expedition Thirteen.

    December 2006 – Arrival of Flight Engineer Sunita Williams via space shuttle mission STS-116. Williams replaces Reiter, who returns to Earth with the crew of STS-116.

    April 7, 2007 – Charles Simonyi becomes the fifth space tourist when he accompanies the Expedition Fifteen crew to the ISS. He spends 12 days aboard the space station before returning to Earth with the crew of Expedition Fourteen.

    June 10, 2007 – Space Shuttle Atlantis docks with the the ISS to install a new segment and solar panel on the space station and retrieve astronaut Williams, who has been at the space station since December. Williams is replaced by Flight Engineer Clayton Anderson, who will return to earth aboard Discovery on Mission STS-120.

    June 15, 2007 – Four days after ISS’s computers crash, two Russian cosmonauts bring them back online. The computers control the station’s orientation as well as oxygen production. The crew used Atlantis’ thrusters to help maintain the station’s position while its computers were down.

    October 25, 2007 – Space Shuttle Discovery docks with the ISS. In the days while docked with the ISS, the Discovery crew delivers and connects Harmony to the ISS, a living and working compartment that will also serve as the docking port for Japanese and European Union laboratories. Discovery and ISS crew also move an ISS solar array to prepare for future ISS expansion, planning a special spacewalk to repair damage to the solar array that occurred during its unfurling.

    November 14, 2007 – ISS crew move the Harmony node from its temporary location on the Unity node to its permanent location attached to Destiny.

    February 9, 2008 – Space Shuttle Atlantis arrives. Its crew delivers the European-made Columbus laboratory, a 23-foot long module that will be home to a variety of science experiments. Atlantis remains docked with the ISS for just under nine days.

    March 9, 2008 – “Jules Verne,” the first of a series of European space vessels designed to deliver supplies to the ISS, launches from the Ariane Launch Complex in Kourou, French Guiana. The vessels, called Automated Transfer Vehicles (ATV), are propelled into space atop an Ariane 5 rocket, and are designed to dock with the ISS with no human assistance. The Jules Verne will wait to dock with the ISS until after Space Shuttle Endeavour’s March mission is completed.

    March 12, 2008 – Space Shuttle Endeavour docks with the ISS.

    March 24, 2008 – Endeavour detaches from the ISS. While docked, crew members make five spacewalks to deliver and assemble the Dextre Robotics System, deliver and attach the Kibo logistics module, attach science experiments to the exterior of the ISS, and perform other inspection and maintenance tasks.

    April 3, 2008 – The unmanned European cargo ship Jules Verne successfully docks with the ISS. Able to carry more than three times the volume of the Russian-built Progress resupply vehicles, the Jules Verne contains fuel, water, oxygen and other supplies.

    April 10, 2008 – Two members of Expedition 17 crew arrive at the ISS via a Russian Soyuz spacecraft. Travelling with them is Yi So-yeon, a space flight participant and South Korea’s first astronaut. Yi later returns to Earth aboard an older Soyuz spacecraft along with members of the Expedition 16 crew.

    June 2, 2008 – Space Shuttle Discovery docks with the ISS. Discovery is carrying Japan’s Kibo lab, a replacement pump for the station’s toilet, and astronaut Gregory Chamitoff, who is replacing Garrett Reisman as part of the station’s crew.

    June 11, 2008 – Discovery undocks with the ISS after its crew successfully delivers and installs the Japanese-built Kibo lab, delivers parts to repair the ISS’s malfunctioning toilet, collects debris samples from the station’s faulty solar power wing, and retrieves an inspection boom left behind during a previous shuttle mission. Station crewmember Reisman departs with Discovery.

    October 12, 2008 – The Soyuz TMA-13 capsule carrying two Americans – flight commander Michael Fincke and computer game millionaire Richard Garriott, and Russian flight engineer Yuri Lonchakov – lifts off from Kazakhstan. It docks with the ISS on October 14.

    March 12, 2009 – Orbital debris from a prior space shuttle mission forces the crew of Expedition 18 to temporarily retreat to its Soyuz capsule.

    August 24, 2011 – Russian emergency officials report that an unmanned Russian cargo craft, the Progress-M12M that was to deliver 3.85 tons of food and supplies to the ISS, crashed in a remote area of Siberia.

    May 19, 2012 – SpaceX’s launch of the Falcon 9 rocket, the first private spacecraft bound for the ISS, is aborted a half a second before liftoff. SpaceX engineers trace the problem to a faulty rocket engine valve.

    May 22, 2012 – The unmanned SpaceX Falcon 9 rocket launches from Cape Canaveral Air Force Station in Florida. The rocket carries the Dragon spacecraft, which is filled with food, supplies and science experiments and bound for the ISS.

    May 25, 2012 – The unmanned SpaceX Dragon spacecraft connects to the International Space Station, the first private spacecraft to successfully reach an orbiting space station.

    October 7, 2012 – SpaceX’s Falcon 9 rocket, with its Dragon capsule carrying 1,000 pounds of supplies bound for the ISS, launches from Florida’s Cape Canaveral. It is the first of a dozen NASA-contracted flights to resupply the International Space Station, at a total cost of $1.6 billion.

    May 9, 2013 – The crew discovers that the ISS is leaking ammonia. The crew performs a spacewalk and corrects the leak two days later.

    November 9, 2013 – Russian cosmonauts perform the first ever spacewalk of the Olympic Torch ahead of the 2014 Sochi Winter Games.

    December 11, 2013 – A pump on one of the station’s two external cooling loops shuts down after hitting a temperature limit, according to NASA. The malfunctioning loop had been producing too much ammonia, possibly the result of a malfunctioning valve.

    December 24, 2013 – Astronauts complete a repair job to replace the problematic pump. Their spacewalk lasts seven and a half hours, and is the second ever spacewalk on Christmas Eve. The first was in 1999 for a Hubble Repair Mission.

    March 10, 2014 – After five and a half months aboard the ISS, Expedition 38 astronauts return to earth aboard the Soyuz TMA-10M spacecraft.

    September 16, 2014 – NASA announces that Boeing and Space X have been awarded contracts to build vehicles that will shuttle astronauts to and from the space station.

    December 15, 2015 – Astronaut Tim Peake is the first British European Space Agency astronaut to arrive at the ISS.

    March 2, 2016 – NASA astronaut Scott Kelly and Russian cosmonaut Mikhail Kornienko land in the Kazakhstan desert after a nearly yearlong mission on the ISS.

    August 3, 2018 – NASA selects nine astronauts, seven men and two women, for missions in spacecraft developed by Boeing and SpaceX. The flights, scheduled for 2019, will be the first launches to space from US soil since the Space Shuttle program was retired in 2011, and the first in capsules developed and built by the private sector.

    June 2019 – NASA announces the ISS is opening for commercial use. The newest NASA directive is intended to allow “commercial manufacturing and production and allow both NASA and private astronauts to conduct new commercial activities aboard the orbiting laboratory.”

    October 18, 2019 – NASA astronauts Jessica Meir and Christina Koch conduct the first all-female spacewalk outside of the ISS. The spacewalk last seven hours and 17 minutes.

    May 30, 2020 – SpaceX and NASA’s Falcon 9, bound for the ISS, launches. This is the first crewed spaceflight to launch from US soil since 2011. The astronauts spend two months working on the ISS, then return to Earth on August 2.

    November 16, 2020 – The SpaceX Crew Dragon spacecraft with four astronauts on board safely docks with the ISS. The spacecraft launched from Florida’s Kennedy Space Center on November 15 and marks the first fully operational crewed mission for SpaceX.

    April 21, 2021 – Russia announces that it is ready to start building its own space station with the aim of launching it into orbit by 2030, according to Interfax news agency. The project will mark a new chapter for Russian space exploration. Russia, which signed a memorandum of understanding in March to explore establishing a joint lunar base with China, will notify its ISS partners regarding its departure from ISS at a future date.

    June 16, 2021 – NASA astronaut Shane Kimbrough and European Space Agency astronaut Thomas Pesquet conduct a spacewalk to install solar arrays on the space station. After technical delays, the work is completed four days later. The arrays are rolled up like carpet and are 750 pounds (340 kilograms) and 10 feet (three meters) wide. They will provide a power boost to the space station.

    January 31, 2022 – NASA reveals it intends to keep operating the ISS until the end of 2030, after which the ISS will be crashed into a remote part of the Pacific Ocean known as Point Nemo.

    April 9, 2022 – The first crew entirely comprised of private citizens reaches the ISS.

    July 26, 2022 – Russia announces it is planning to pull out of the ISS after 2024, ending its decades-long partnership with NASA at the orbiting outpost.

    October 6, 2022 – A SpaceX capsule carrying a multinational crew of astronauts docks with the ISS after a 29-hour trek. The mission launched from Kennedy Space Center in Florida at 12 p.m. ET on October 5. The four crew members included astronauts Nicole Mann and Josh Cassada of NASA, astronaut Koichi Wakata of Japan Aerospace Exploration Agency, and cosmonaut Anna Kikina of Roscosmos, the first Russian to travel on a SpaceX spaceflight.

    October 24, 2022 – According to NASA, the ISS fires its thrusters to maneuver out of the way of a piece of oncoming Russian space junk.

    December 22, 2022 – Two NASA astronauts carry out a spacewalk to install a new solar panel on the ISS. The spacewalk lasts about seven hours.

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  • Worried that stocks are too expensive? This value approach can highlight bargains.

    Worried that stocks are too expensive? This value approach can highlight bargains.

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    At a time when many investors seem euphoric, others are warning that stock valuations have once again turned frothy. It may pay to take a look back at valuation and performance and consider your own risk tolerance.

    A value-based approach that offers lower volatility and good long-term returns can be expected to be less flashy than one focused on the hottest technology stocks. But depending on how much it bothers you when the stock market gyrates, it may be a better way for you to invest. Lower volatility might help you to avoid the type of emotional reaction that can lead to selling into a declining market or attempting to time the market, both of which tend to be losing strategies.

    Aaron Dunn is a co-head of the value equity team at Eaton Vance, which is based in Boston and is a unit of Morgan Stanley. During an interview, he explained how he and Brad Galko, who co-heads the team, select stocks for the Eaton Vance Focused Value Opportunities Fund. The fund’s performance benchmark is the Russell 1000 Value Index
    RLV,
    +1.08%
    .

    First, let’s take a broad look at how aggregate forward price-to-earnings ratios have moved for exchange-traded funds tracking several broad indexes over the past 10 years:


    FactSet

    The valuations are lower than their 2020 peaks. But for all but one, the valuations still appear to be high when compared with their 10-year averages:

    ETF

    Ticker

    Current forward P/E

    10-year average forward P/E

    Current valuation to 10-year average

    SPDR S&P 500 ETF Trust

    SPY,
    +0.64%
    19.06

    15.93

    120%

    iShares Russell 1000 ETF

    IWB,
    +0.80%
    18.94

    16.02

    118%

    iShares Russell 1000 Value ETF

    IWD,
    +1.07%
    14.33

    13.94

    103%

    iShares Russell 1000 Growth ETF

    IWF,
    +0.50%
    26.63

    19.00

    140%

    Source: FactSet

    All of the listed ETFs listed here are trading well above their 10-year average P/E valuations except the iShares Russell 1000 Value ETF, which is only slightly higher. These numbers back the notion that the broad market is expensive and that a value approach may be more reasonable. It is also worth keeping in mind that during 2022, when the SPDR S&P 500 ETF Trust
    SPY,
    +0.64%

    declined 18.2% and the iShares Russell 1000 ETF
    IWB,
    +0.80%

    fell 19.2%, the iShares Russell 1000 Value ETF
    IWD,
    +1.07%

    pulled back 7.7% and the Eaton Vance Focused Value Opportunity Fund’s Class I shares were down only 3.3%, all with dividends reinvested.

    If we look at 10-year total returns, the nonvalue indexes, so heavily weighted to the largest technology-oriented companies, have been excellent performers for investors who could remain committed through thick and thin:


    FactSet

    Fund

    Ticker

    3-year average annual return

    5-year average annual return

    10-year average annual return

    SPDR S&P 500 ETF Trust

    SPY,
    +0.64%
    13.2%

    11.4%

    12.3%

    iShares Russell 1000 ETF

    IWB,
    +0.80%
    12.5%

    11.0%

    12.1%

    iShares Russell 1000 Growth ETF

    IWF,
    +0.50%
    11.2%

    14.0%

    15.0%

    iShares Russell 1000 Value ETF

    IWD,
    +1.07%
    13.7%

    7.3%

    8.7%

    Eaton Vance Value Opportunities Fund – Class I

    EIFVX,
    +0.92%
    14.8%

    8.7%

    9.7%

    Source: FactSet

    For five and 10 years, the growth-oriented approaches have shined. But for three years, which includes the 2022 disruption, the Eaton Vance Value Opportunities Fund has fared best, even outperforming its benchmark.

    A selective approach to value

    The Eaton Vance Focused Value Opportunity Fund’s Class I
    EIFVX,
    +0.92%

    shares are rated four stars (out of five) within Morningstar’s Large Value fund category. The fund’s Class A
    EAFVX,
    +0.93%

    shares are rated three stars. The difference is that the Class I shares, which are typically distributed through investment advisers, have annual expenses of 0.74% of assets under management, while the Class A shares have an expense ratio of 0.99%. You can purchase Class I shares directly through brokerage platforms for a $50 fee.

    Dunn said that when selecting stocks for the fund, he and Galko take a bottom-up approach to identify quality companies. The want to see high returns on invested capital (ROIC) over the long term, as well as a “good competitive position” for a company and a strong management team.

    They also prefer companies with low debt. “We do not want to buy overlevered companies and be in a situation where we are diluting through equity raises and putting capital at risk,” he said.

    Dunn added that he and Galko look closely at free cash flow generation. A company’s free cash flow is its remaining cash flow after capital expenditures. This is money that can be used to fund expansion, acquisitions, dividend increases or share buybacks, or for other corporate purposes.

    “Philosophically, what this results in is that we hold up well in markets such as last year’s. And we find upside in stocks trading below intrinsic value,” he said.

    “We focus on finding ideas where there is a good skew for upside relative to downside,” he added.

    According to Morningstar, the fund’s active share when compared with IWD is high, at 91.45%. Active share is a measure of how much an actively managed fund differs in investment exposure from its benchmark index. If you are paying more for active management than you would to invest in an index fund, active share is something to consider. If it is low, you might be overpaying for a “closet indexer.” You can read about how Morningstar assesses active shares here.

    The fund is concentrated, typically holding between 25 and 45 companies.

    According to Morningstar’s most recent data, these were the fund’s top 10 holdings (out of 28 stocks) as of May 31:

    Company

    Ticker

    % of Eaton Vance Focused Value Opportunity Fund

    Forward P/E

    2023 total return

    Alphabet Inc. Class A

    GOOGL,
    +0.59%
    5.0%

    19.6

    32%

    Micron Technology Inc.

    MU,
    +1.79%
    4.8%

    N/A

    25%

    American International Group Inc.

    AIG,
    +1.15%
    4.3%

    8.1

    -7%

    Reinsurance Group of America Inc.

    RGA,
    -0.34%
    4.2%

    8.0

    1%

    Bristol Myers Squibb Co.

    BMY,
    +0.50%
    4.1%

    7.7

    -11%

    Wells Fargo & Co.

    WFC,
    +0.99%
    4.0%

    8.9

    4%

    ConocoPhillips

    COP,
    +2.96%
    4.0%

    10.5

    -10%

    Constellation Brands Inc. Class A

    STZ,
    +0.30%
    3.9%

    20.4

    9%

    NextEra Energy Inc.

    NEE,
    +0.67%
    3.8%

    21.9

    -13%

    Charles Schwab Corp.

    SCHW,
    -0.43%
    3.8%

    16.0

    -30%

    Source: FactSet

    Click the tickers for more about each company, fund or index.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    There is no forward price-to-earnings ratio for Micron Technology Inc.
    MU,
    +1.79%
    ,
    because the company’s combined EPS for the next 12 months are expected to be negative.

    Micron is a company in transition, caught up in diplomatic conflict between the U.S. and China, whose government directed some manufacturers in May to stop purchasing memory chips made by the company. Then again, in June, Micron highlighted its “commitment to China” when announcing a new investment in its plant in Xi’an.

    Read: Micron recovery debated by analysts as bottom is called in memory-chip market

    Dunn said downside for Micron’s stock was “mitigated” because of the company’s relatively low debt. He also said that as companies continue to adopt more cloud services and deploy artificial-intelligence technology, demand for memory chips will increase.

    While there is no current forward P/E for Micron, the stock always trades at low valuations relative to most other large tech companies. Dunn touted Micron’s strong cash flow and said the stock was “underappreciated” and remained “an interesting play on cloud and AI.”

    While it is not among the top 10 holdings listed above, Dunn highlighted Dollar Tree Inc.
    DLTR,
    +1.80%

    as an example of the type of value stock he favors. The company “was not well run” following its acquisition of Family Dollar in 2015. But he has been impressed with its more recent turnaround efforts, including improvements in how products are shipped to stores, better efficiency and “a lot of work going on with culture, how they operate, how they treat employees [and] adding some shelf space to move more product.”

    It is interesting to see NextEra Energy Inc.
    NEE,
    +0.67%

    among the fund’s largest holdings. This has been quite a strong grower over the past 10 years, with a total return of 346% as the owner of Florida Power & Light has grown along with its customer base and has become a leader in the build-out of solar-power generation.

    Dunn said the company is “still growing in the mid-single digits. For a utility company, that is a strong profile.”

    When discussing Alphabet Inc.
    GOOGL,
    +0.59%
    ,
    the fund’s largest holding as of May 31, Dunn said that “it is really an advertising business with other businesses around it” and that its P/E valuation was “not extremely taxing.” He said Alphabet had been “less aggressive with cost cutting” than other technology giants and added that the company’s “targeted search” through Google and other properties, such as YouTube, “probably provides a better return on investment than broadcast advertising, and that really is the key.”

    Don’t miss: This stock investing strategy has blown away the S&P 500. Here’s a way to refine it for quality.

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