Tuesday, January 31, 2012

Realities of Scale Cast Doubts on Gillard’s Carbon Tax and Clean, Green Future

Viewed from a practical background as an electronics trouble-shooter, it seems to me that the Gillard Government’s “clean energy future” is just a document of hope and uncertainty with a glossy cover.
Overblown expectations of wind and solar power sit at the heart of its plans, and it doesn’t take an Einstein to spot the exaggerated claims and glaring errors of scale.

The Gillard Government would have you believe that it is very simple. “Big Polluters”—500 of them—are to be “supertaxed” creating a simple cost incentive to reduce CO2 emissions.

In Victoria, the Latrobe Valley‘s coal-fired electricity generators can do little to change their ways. Paying the tax is their only real option, and consumer tariffs will rise accordingly. Low income households are to be compensated, emissions will stay the same, and nothing will be gained, except some tax revenue for government coffers.

Many people seem to be under the delusion that this carbon tax will fund the replacement of dirty coal with clean, green power. They assume that the much hyped “clean energy future” sold by Gillard and Brown has it all worked out and under control: the “big polluters” are to pay, and any additional costs to consumers will be minimal. A little research into the detail and the realities of scale uncovers the hidden jumbo amongst the glib tossings of our wry-smiling government.

Consider the situation in Victoria.

Any attempt to supply the state’s peak electricity demand of about 10,000 MW from wind and solar will cost tens of billions of dollars, a cost that will inevitably be passed on to consumers. A current submission to the Victorian Government with cost estimate for our wind-powered future offers a clue to the direction some would have us take, the scale of expenditure involved and what it will do to the industries on its hit list. It is available here.

Cost is only part of the problem. The other, bigger issues are those of scale and nature itself, which, in my opinion, also fail to add up.

Averaged over a month or so, a typical 90-metre diameter wind turbine in Victoria, rated at 2MW, generates only about 30 per cent of its 2MW rating, about 0.6MW, due to wind variability. This is known as capacity factor. Capacity factors of some Australian turbines are listed here.

Ten thousand such turbines would be needed to supplant the 6000MW output of the Latrobe Valley’s coal fired plant on a day of average wind speed. Latest figures from the US Department of Energy list the average “overnight” construction cost of wind generators in the US at US$2438 per kW. (See Table 2, line 26 wind, available here.)

On these figures 2MW turbines would cost US$4.87 million each. Ten thousand of same, for Victoria alone, would cost the Australian taxpayer $US 48.7 billion, though economies of scale would no doubt reduce that figure somewhat.

Ignoring secondary technicalities, such as environmental impact, the enormous costs and electrical losses incurred in lengthy transmission lines, made necessary by wind power’s need for “geographical dispersion” a hypothetical string of ten thousand 90-metre diameter turbines, spaced 100 metres apart in the prime location, along the Victorian coast, would stretch all the way from South Australia to the NSW border.

Even then there is no guarantee that large, slow-moving weather systems would not sometimes create circumstances where supply couldn’t meet demand for periods of hours, perhaps days. Nature will always have the final say in matching supply to demand, and we will be the ones who must make the alternate arrangements.

Full baseload back up from other sources will always be required if outages are to be avoided. Who wants to get stuck in a lift, or walk home, when public transport grinds to an untimely halt due to catastrophic load-shedding?

There are also lessons available from the experience of others, which should serve as a warning to our decision makers. (See ‘A problem with wind’ and ‘Wind power failing to deliver the energy Scotland needs’.)
Wind turbines provide a clean, but costly and intermittent adjunct to baseload power, they are not the answer for cities full of industry, mass transport, factories, with shopping centres, street lighting, and millions of power-dependant consumers. Many, it seems, are pinning their hopes on wind power, but promoting it beyond its capabilities can only lead to very expensive failure.

So where will our 24-7 baseload power come from?

Solar-thermal with storage is the other green answer we hear a lot about in latte-land.

In the sunny desert climes of Spain and the US, solar/storage plants certainly can produce power from stored heat even after sunset, but output fizzles after 12-16 hours. We could no doubt draw intermittent power from a source such as this, but not without full baseload back-up for all those days/weeks of cloudy weather we live with in southern Australia.

Once again realities and matters of scale spoil the fairytale. The total construction cost of a solar/storage plant such as the 110MW Crescent Dunes project in Nevada, is estimated at US$1billion, or about US$9.1 million per MW.

To replace the Latrobe Valley’s 6000MW coal-fired installation with this technology would call for 54 such plants at US$1 billion each, a total of US $54 billion. Scaled up from Crescent Dunes, a 6000MW complex would cover 392 sq kilometers and need unfailing sunshine, often a rare commodity in southern Australia.
Maintenance, including maintaining peak reflectivity of some 900,000 computer controlled heliotats (mirrors) permanently exposed to the elements, would very likely present formidable practical problems.

Back in the real world, southern Victoria’s July sunshine averages 3 hours per day and is sometimes zero for days. Our remote desert areas fare better, but not well enough for the standard of reliability required. Long distance transmission once again becomes a limiting factor.

Put kindly, our green energy future is positive thinking on steroids. The technological miracles upon which it is predicated, are not on the cusp of discovery as many believe. They are already here, and they are inherently problematical. No amount of taxpayer-funded research into wind and sunshine will tame the natural perversity of nature, which condemns the exploitation of its elements to accessory status, regardless of well intentioned hopes and dreams

A baseload capability virtually equal to peak demand is still necessary if power outages and chaos are to be avoided at all hours, and in all weathers. Having ruled out the nuclear option, burning gas instead of coal remains the only 24-7 generating option for Victoria’s largely urbanized population. If we really do have more gas than common sense, we just need a large pipe, a generating site or two, and a willingness to pay at least double for a ‘bandaid’ solution.

Compared to “renewables” construction of gas-fired power stations is relatively inexpensive, typically about $1.2million per MW, though “carbon capture” now on the horizon, may eventually add significantly to that cost. The cost of a typical plant can be seen on fact sheet A.

Even the Greens don’t dispute Victoria’s peak power need of 10,000MW. While the Latrobe Valley can supply 6000MW, Snowy Mountains hydro. and other sources can be imported into the mix to meet the occasional 10,000 MW demand.

A 10,000 MW gas-fired plant would be required to cover Victoria’s needs, at a bare bones cost of around $12 billion. Added to this is a long list of ancillaries, which are difficult to quantify, these include pipelines, distribution terminals, transmission towers, access roads, switching yards, land acquisitions, environmental management, legal costs maintenance, price blow-outs, and of course some “showcase renewables” The final outcome would most likely include all three, wind solar and gas, and the price – enormous.

There will be a scramble for dwindling funds from Canberra’s carbon tax fund, extracted from the 500 big polluters, but this revenue stream has been predicted by many to last about as long as their taxi ride to the airport.

One thing seems certain. If big green power gets its way, the taxpayer/consumer will end up with the bill, regardless of whether he/she voted to receive it. It is hard to see how multi-billion dollar projects such as these can be funded without huge increases in energy tariffs, which are likely to soar by two or three hundred percent to service the vast capital costs.

Measured out by ‘smart’ meters, the future price of electricity may depend literally on the price of gas, the time of day, and the weather forecast .

If anyone believes that Victoria’s share of the carbon tax extracted from a mere 500 targeted businesses will deliver us all nice green power at “little extra cost” they’d believe that little green pigs can fly. To believe it, you’d need to disregard the realities of scale, the limits of technology, the huge capital costs, and switch off any remnants of human intelligence.

But lots of people just swallow it whole … just ask around, it’s a worry!

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Sunday, January 29, 2012

Renewable Energy Firms Plan Profits Sans Subsidy

Renewable energy companies are approaching the point where they can generate electricity at a price competitive with fossil-fuels without subsidies, the biggest wind and solar manufacturers said.

Suntech Power Holdings Co. Chief Executive Officer Zhengrong Shi said solar will reach parity with fossil fuels on electric grids by 2015. Vestas Wind systems A/S expects its turbines to compete without incentives "in the coming years," said Peter Brun, head of governmental relations.

"Wind in some cases already is, or can in coming years, be fully cost-competitive with fossil fuels," Brun said today by e-mail from the World Economic Forum in Davos, Switzerland. "Fossil-fuel prices will continue to rise, and that increases the competitiveness of new technologies. We are preparing the whole industry for getting off the subsidy-need."

Caught between oversupply and tumbling prices, the companies are reminding governments that their products are taking the biggest share of new power generation and increasingly rivaling oil and gas. That’s pushing green growth up the agenda as Germany and Japan close nuclear reactors and President Barack Obama defends U.S. support for renewables.

New electricity generation from the wind, sun, waves and biomass drew $187 billion in 2010 compared with $157 billion for added capacity from natural gas, oil and coal, according to Bloomberg New Energy Finance, the first time investment in renewables has exceeded that of fossil fuels.

"Renewables are the energy of the future, and there’s been a larger investment in renewable energy than conventional energy," said Steve Sawyer, secretary-general of the Global Wind Energy Council in Brussels, who first attended Davos in the early 1990s as a lobbyist for Greenpeace when clean energy companies were tiny.

Subsidies to renewables totaled $66 billion worldwide in 2010, according to the most recent figures from the International Energy Agency. Incentives must be retained to meet existing targets of diversifying the energy supply, the Paris- based group said.

Power from solar panels costs more than triple natural gas, according to levelized cost of energy data from New Energy Finance. Onshore wind is close to parity with coal, and about a quarter more pricey than gas.

Solar power will be "very competitive" within a decade, and in some places, it’s already near "grid parity," meaning it can compete without subsidies, Trina Solar Ltd. Chief Executive Officer Jifan Gao said in an interview in Davos. He spoke through an interpreter.

"We see costs coming down and manufacturing efficiency being improved all the time," said Gao, whose company is the fifth biggest maker of silicon-based solar panel. "In places like Australia, this year they will reach grid parity; next year Italy will, and in 2014 regions like California."

Gao’s comments support those of Suntech’s Shi, who told Bloomberg television that with government support, the industry has made "tremendous progress," and solar prices have been cut in half in a year.

"We believe that by 2015, there will be around 50 percent of countries where it reaches grid parity," Shi said.

Brun at Vestas said that the cost of wind power is "site- specific" and that the technology may reach grid parity in the breeziest areas by 2020. He declined to say where. Governments and the industry should consider re-allocating subsidies to turbines in areas with lower wind speeds, and offshore, where winds are stronger and costs are higher, he said.

With incentives for wind and solar power under threat in the U.S. and the European Union as governments tighten budgets, Davos serves as a forum for industry executives to remind governments of the need to promote renewables as part of the effort to stem climate change, said Tulsi Tanti, chairman of Suzlon Energy Ltd., India’s biggest wind-turbine maker.

"Davos is the one place the most important decision makers of the world — be it government or business — converge," Tanti said in e-mailed answers to questions. "The most crucial issue this year will be to argue for policy certainty despite the economic environment."

In the U.S. the wind industry is threatened by the loss of a tax credit which expires at the end of this year. Vestas has said it may fire 1,600 U.S. workers if the credit isn’t renewed, and Obama in his State of the Union Speech on Jan. 24 urged Congress to "pass clean-energy tax credits."

"I will not walk away from the promise of clean energy," Obama said.

Read on

Monday, November 7, 2011

Bungled solar bonus scheme to cost $1 billion

A scheme to encourage New South Wales residents to buy solar panels was too popular, and will cost the state hundreds of millions of dollars more than expected. The state's auditor-general, Peter Achterstraat, says there was no market research ahttp://www.blogger.com/img/blank.gifnd no analysis of whether the Solar Bonus Scheme was worth the money.

Listen to the radio broadcast here

Wednesday, June 29, 2011

Australia to Build Two Major Solar Power Stations


The Australian government has selected two of the four large-scale projects that make up the cornerstone of its aggressive effort to produce a total of 1,000 megawatts (MW) of solar power capacity.

Solar Dawn and Moree Solar Farm are part of the Solar Flagships programme’s US$1.5 billion infusion to create grid-connected solar power stations in Australia using CSP and PV technologies. Once complete, the two projects they selected will be among the world’s largest for their respective technologies.

The combined capacity of the two projects, in the neighborhood of 400MW, would represent a large percentage of the nation’s current solar capacity. According to a recent EPIA global report, Australia ended 2010 with 504MW of installed PV capacity.

A consortium of AREVA Solar, CS Energy and Wind Prospect CWP has been selected to develop a CSP project in Round 1 of the Solar Flagships Programme.

Solar Dawn is a proposed 250MW CSP/natural gas hybrid power plant and will be the largest plant of its kind in the world when complete, according to the company. The project is also expected to receive more than US$500 million in government contributions.

Solar Dawn will be built in South West Queensland, near CS Energy’s recently announced 44-MW Kogan Creek Solar Boost Project. Like Solar Dawn, Kogan Creek Solar Boost will also use AREVA Solar’s Compact Linear Fresnel Reflector (CLFR) solar thermal technology.

As a CSP/hybrid power plant, Solar Dawn will combine AREVA Solar’s CLFR solar steam generators with a gas boiler back-up system, giving it the ability to deliver around-the-clock power.

The Solar Dawn consortium will look to finalise approvals and financing arrangements, as well as engineering, construction, operations and maintenance contracts by the end of this year.

A consortium of Fotowatio Renewable Ventures (FRV), BP Solar and Pacific Hydro won the government tender to build and operate Australia’s first large-scale PV solar power station. The 150MW PV facility will be located in the New South Wales Tablelands near the town of Moree.

FRV is an independent power company based in Madrid that specialises in solar power generation and has projects under development across the United States and Europe.

The project, the first large-scale solar power station to be built in Australia, will also be one of the largest solar facilities in the world, the company said. Construction is due to begin in 2012 with electricity produced to be sold into Australia’s National Electricity Market.

Once complete, the Moree Solar farm will comprise around 650,000 PV panels. The farm is expected to deliver significant benefits to the local economy, including job creation during the four-year construction phase.

Thursday, June 23, 2011

Silver Investment News: Silver’s 74% Surge Creates ‘Headwind’ for Solar Rivalry With Fossil Fuels



Soaring silver prices are hampering the solar industry’s ability to compete with fossil fuels.

Panel makers consume about 11 percent of the world’s supply of silver, the material in solar cells that conducts electricity. The metal has appreciated 74 percent to $35.30 a troy ounce on average so far this year from $20.24 last year.

Prices for solar cells have dropped about 27 percent this year and would be even lower if each panel didn’t require about 20 grams of silver, according to Bloomberg New Energy Finance. That’s pushing back the date when companies such as Solarworld AG (SWV) and LDK Solar Co. can deliver solar power at prices that are competitive with traditional energy.

“Global silver prices have gone up a lot, and solar cells use silver paste as the front-side contact material,” Shawn Qu, chief executive of Canadian Solar Inc. (CSIQ), which is based in China, said in an interview. “The increase of the silver costs will give us a challenge in efforts to reduce solar cell costs.”

Prices for photovoltaic solar panels were $1.49 a watt in June, compared with about $1.80 in January, New Energy Finance estimates, as manufacturers especially in China raised production and incentives were trimmed in Europe.

Silver Investment News: Silver’s 74% Surge Creates ‘Headwind’ for Solar Rivalry With Fossil Fuels

Sunday, June 5, 2011

Credits Trader

Credits Trader

Saturday, June 4, 2011

Australia's First Commercial Solar Roof Lease Launched In The ACT

National solar solutions provider Energy Matters recently launched Australia's first commercial solar roof lease; further affirming the ACT's standing as Australia's solar power capital.

Energy Matters' groundbreaking 'pay now, pay later, pay never' commercial solar initiative was launched to prominent ACT business owners at Ullrich Aluminium’s Hume site on Tuesday 17th May. The launch was presided over by Simon Corbell, Minister for the Environment and Sustainability, who lauded the program for its positive impact in "cementing the ACT as the solar capital of Australia".

Energy Matters has a commitment to playing its role in ensuring all Australians have the opportunity to participate in reducing carbon dioxide emissions and accelerating the uptake of renewable energy in Australia, but understands the challenges that the cost of system ownership can pose.

As the first ever program of its kind in Australia, the Ullrich Aluminium solar lease launch paved the way for ACT businesses to benefit from generous government incentives; whether their budgets stretch to outright system