Showing posts with label point of consumption. Show all posts
Showing posts with label point of consumption. Show all posts

Thursday, April 8, 2010

Green Fantasy, Energy Reality & Blood In The Streets


Two years ago I pointed out at this blog that all of the non-nuclear green energy Obama and the left were pushing as substitutes for coal and oil were not merely economically uncompetitive, but that they were untested at scale. Shannon Love, in a brilliant essay at Chicago Boyz not long ago expounded on why alternative forms of energy could not be relied upon to substitute for coal and oil at scale.

None of that has mattered thus far to the radical greens. Obama is deconstructing our energy infrastructure and warring on both coal and oil. Obama and the far left have legislated that increasing amounts of highly subsidized green energy must be used in our energy production. All well and good - until reality strikes. This from Alex Salkever writing at Daily Finance:

Boy, that was fast. Only five years into the world's renewable energy push, many utility companies are so concerned about grid instability that they're saying they can't accept any more electricity from intermittent sources of power. Translation: Solar power only runs in the day time and can't re relied on for so called "baseload" capacity. Wind power primarily produces current at night and, likewise, can't be relied upon for baseload capacity. Geothermal, meanwhile, is perfect for providing baseload. But geothermal projects take an excruciatingly long time to build out. And then there have been the recent spate of earthquake scares around geothermal sites.
The upshot: Utilities such as Hawaiian Electric in President Obama's home state are voicing concerns about plans to integrate more solar and wind power into the grid until they develop methods to more effectively absorb intermittent sources of power without destabilizing the whole shebang. In Europe, Czech utility companies are concerned that "feed-in tariffs," which require power companies to repurchase all home- and business-generated renewable power at elevated rates, might wreak havoc on the Central European grid.

This growing push-back from utilities could prove to be shock to energy project developers, lawmakers and homeowners. In the U.S., project developers and state lawmakers have assumed that the ambitious laws mandating as much as 40% of some states' power come from renewable sources within the next few decades would ensure huge demand for green power as utilities scaled up their use of such resources from low single-digit levels. Likewise, homeowners have tended to assume that if they could put a panel on their roof (or a windmill on their property), they would be guaranteed a market for the extra power produced. . . .

This is only a shock if you haven't been paying any attention to the issue beyond listening to the green propaganda machine. But expect the left to do absolutely nothing about this while our existing coal and fossil fuel infrastructure declines, leading to much higher energy prices in the medium term.

So now lets pivot to something else in the news - the revolution in Kyrgyzstan that occurred the other day. Kyrgyzstan is a landlocked Islamic majority nation that sits on the border of China and to the north of Afghanistan. It was annexed by the Soviet Union around 1920, then gained its independence in 1991 when the Soviet Union fell. It became a democracy, but the government has been unable to stem rampant corruption. Given that short history and its location, one could well imagine a host of reasons for the violent coup that occurred the other day, from Islamic radicalism to Russian or Chinese involvement. Nope, none of that. The reason for the violent overthrow of the government - rising energy prices attibutable to government intervention. This from Dr. North at EU Referendum:

Covered widely by the media, the reports of the rioting in Kyrgyzstan yesterday vary widely in tone and content. But, even if you have to drill down into the piece, not even The Guardian can conceal the reason for the unrest, which has seen protestors beat a Cabinet minister to death.

"The violent rolling protests appeared to be largely spontaneous rather than a premeditated coup," it says, eventually telling us that a "leading expert" has said the government had triggered the protests by imposing punitive increases on tariffs for water and gas. . . .

There is much more to it than that, as The Daily Mail indicates, but even on 23 February the Institute for War & Peace Reporting had Timur Toktonaliev in Bishkek writing: "Soaring energy costs anger Kyrgyz", with prices for electricity having risen 100 percent and the cost of central heating shooting up by 500 percent. Clearly, energy prices have been the primary trigger of current events.

And therein is a lesson. For a country with a violent past, not too much can be read into it, but every society has its limits of tolerance and, where we have our own government determined to drive up energy costs, this could become a factor in triggering open dissent in this country as well.

Here, the crucial issue in Kyrgyzstan was that the prices were driven up by government fiat, albeit following a decision to remove subsidies which had enabled energy to be sold at less than the cost of production. It can be assumed, from this, that where government action is directly responsible for price hikes, governments will take the flak.

It is far too extreme to suppose that we will any time soon see a Cabinet minister beaten to death on the streets of London, although there are not a few who would leap at such an opportunity if it was presented. But it is not a happy or a stable government which relies only on constant police protection to keep its members alive and safe.

Ministers, therefore, would do well to note the events in Kyrgyzstan. Even remote possibilities are still possibilities and, the way our politicians are behaving, they could yet become probabilities and then certainties.

As I pointed out here, we are not quite a decade behind Britain in the mad push into alternative energy. Britain has already seen vast spikes in energy prices and is expecting much more. We are set on the same path now with Obama's war on our fossil fuel powered energy infrastructure and our own mad push towards alternative energy to replace them. For us, the real economic effects of this madness are several years out, when our own costs spike. And while I don't expect blood in the streets over it at this point, I do expect very substantial unrest indeed.

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Thursday, March 4, 2010

Alternative Energy Fictions


Over a year ago, I posted here on the insane push to scrap our existing energy infrastructure and replace it with a variety of "alternative energy" sources that, other than nuclear power, are deeply cost ineffective and not proven to scale. Two recent articles highlight those realities.

The first from Shannon Love is an exceptionally articulate primer on why replacing our reliance on coal and other fossil fuels with non-nuclear alternative energy is pure fantasy:

Here’s a fact you won’t see mentioned in the public policy debate over “alternative” energy:

There exists no alternative energy source, no combination of alternative energy sources, and no system of combinations of alternative energy sources that can fully replace a single, coal fired electric plant built with 1930s era technology.

Nada.
Zero.
Zilch.

Yet many want to make this group of functionally useless technologies the primary energy sources for our entire civilization.

Most discussions of alternative energy talk only about the cost and reliability of the electricity when it leaves the grounds of the alternative-energy installation. This is called the Point of Generation (POG). However, energy is useless unless you have it where you need it, when you need it. It does no good to have plenty of power in Arizona when your work and home are in Michigan. It does no good to have a roaring fire in July when you’re freezing in January. Therefore, the only real factors that count are the cost and reliability at the Point of Consumption (POC).

All current and forecast alternative energy sources fail miserably at POC. When you look at all the hurdles, redundancies and hypothetical/theoretical technologies you have to invoke to make alternative energy reliable at POC, you see they can’t even come close to matching the 80-year-old coal plant.

An obsolete coal plant using 80-year-old technology can provide power where and when you need it. It can be positioned almost anywhere from the equator to the tundra. . . . It can be positioned immediately adjacent to the point of consumption. It works around the clock and in all types of weather. It can easily store weeks or months of coal reserves in a big pile outside. 99% of its offline time is scheduled and it is trivial to build in redundancy to compensate for both scheduled and unscheduled offline time. For the last 80 years, this type of technology has chugged out the electricity all over the world without pause.

“Alternative” energy sources have none of these attributes. They can only be built in specific locations, and those locations are wholly unrelated to the points of consumption. They can only operate under specific weather/environmental conditions, so they cannot fulfill the when of the point of consumption need.

They operate on nature’s schedule not ours. If we could easily operate on mother nature’s schedule, we wouldn’t need the energy in the first place, because we primarily use the energy to alter natural environmental conditions to keep ourselves alive. . . .

Do read the entire article.

The UK is much further along in the green madness than we - though Obama seems determined to catch us up, whatever the economic cost. As I posted here and as discussed by Dr. North of EU Referendum, Brits have seen their energy prices double in the past five years and are staring at exponential rises in energy costs in the future. As discussed in those posts, the things driving up their energy costs are a variety of charges aimed at reducing carbon dioxide. And today there is yet another charge added - "feed in" tariffs to encourage Brits to start generating their own alternative energy through installation of such things as solar panels. This from George Monbiot on just how insane and costly this idea is for the Brits:

Those who hate environmentalism have spent years looking for the definitive example of a great green rip-off. Finally it arrives, and nobody notices. The government is about to shift £8.6bn from the poor to the middle classes. It expects a loss on this scheme of £8.2bn, or 95%. . . .

On 1 April the government introduces its feed-in tariffs. These oblige electricity companies to pay people for the power they produce at home. The money will come from their customers in the form of higher bills. It would make sense, if we didn't know that the technologies the scheme will reward are comically inefficient.

The people who sell solar photovoltaic (PV) panels and micro wind turbines in the UK insist they represent a good investment. . . . The government wants everyone to get the same rate of return. So while the electricity you might generate from large wind turbines and hydro plants will earn you 4.5p per kilowatt hour, mini wind turbines get 34p, and solar panels 41p. In other words, the government acknowledges that micro wind and solar PV in the UK are between seven and nine times less cost-effective than the alternatives.

It expects this scheme to save 7m tonnes of carbon dioxide by 2020. Assuming – generously – that the rate of installation keeps accelerating, this suggests a saving of about 20m tonnes of CO2 by 2030. The estimated price by then is £8.6bn. This means it will cost about £430 to save one tonne of CO2.

Last year the consultancy company McKinsey published a table of cost comparisons. It found that you could save a tonne of CO2 for £3 by investing in geothermal energy, or for £8 by building a nuclear power plant. Insulating commercial buildings costs nothing; in fact it saves £60 for every tonne of CO2 you reduce; replacing incandescent lightbulbs with LEDs saves £80 per tonne. The government predicts that the tradeable value of the carbon saved by its £8.6bn scheme will be £420m. That's some return on investment. . . .

Solar PV is a great technology – if you live in southern California. But the further from the equator you travel, the less sense it makes. It's not just that the amount of power PV panels produce at this latitude is risible, they also produce it at the wrong time. In hot countries, where air conditioning guzzles electricity, peak demand coincides with peak solar radiation. In the UK, peak demand takes place between 5pm and 7pm on winter evenings. Do I need to spell out the implications? . . .

We don't need to guess the results: the German government made the same mistake 10 years ago. By 2006 its generous feed-in tariffs had stimulated 230,000 solar roofs, at a cost of €1.2bn. Their total contribution to the country's electricity supply was 0.4%. Their total contribution to carbon savings, as a paper in the journal Energy Policy points out, is zero. This is because Germany, like the UK, belongs to the European emissions trading scheme. Any savings made by feed-in tariffs permit other industries to raise their emissions. Either the trading scheme works, in which case the tariffs are pointless, or it doesn't, in which case it needs to be overhauled. The government can't have it both ways. . . .

(H/T EU Referendum)

There are significant opportunity costs for engaging in this alternative energy madness. While there are current costs to each person for having to subsidize this push to alternatives, we are also neglecting both our existing infrastructure and our future supplies of coal and oil. Obama's war on coal today may only be making the back pages of the newspaper, but its real effect will be in a decade or so out, when we are paying skyrocketing costs for energy that may well not be be there when we want to flip the switch.

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