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As the energy is essentially free, renewable electricity costs, like those of nuclear electricity, are almost entirely dependent on the up-front construction costs and the method of financing these.  Minimising the initial investment, relative to the expected energy yield, is critical to commercial viability.  But revenue is also dependent on when, and where, the energy can be delivered to meet the demand patterns of energy consumers.

For example, if it requires four times the capital investment in equipment to extract one megawatt hour (1 MWh) of useable electricity from sunlight, as compared to extracting it from wind, engineers need to find ways of quartering the cost of solar capture and conversion equipment; or increasing the energy converted to electricity fourfold; to make solar directly competitive.

Similarly if a technology produces electricity when consumers don’t want it; or produces it so far from the consumer that most of it is lost in transmission; then the revenue available will be proportionately less than a similar investment that better matches demand; or is located close to where it is consumed.

 

In most developed nations, including Australia, electricity is a traded product with the market price fluctuating from hour to hour; day to day; season to season; in five minute intervals, according to supply and demand.

 

Without government intervention in the market, supply and demand determines the return that is available to an investment; while the engineering solution and qualities of the resource determine the energy that a particular investment can theoretically deliver.

 

Before intervention, current renewable technologies, with the exception of hydro- electricity, are substantially less competitive, in terms of return on investment, than fossil fuels or nuclear electricity.  It follows that wherever alternatives are in use there are other factors at play: such as the cost or practicality of a grid connection; or a government intervention in support of renewables.

In Australian electricity markets this intervention takes the form of Renewable Energy Certificates (RECs) described later. Other governments have other instruments such as cap and trade carbon reduction schemes; carbon taxes; energy buy-back schemes; and tax breaks; to achieve similar ends.

 

In Australia grid losses are of particular concern. Australia’s population of just over 21 million is highly concentrated in a few large cities; just eight cities accounting for over 70% of the population. The largest Sydney; Melbourne; Brisbane; Perth and Adelaide account for 63% but are separated by distances of between 670 and 3,600 km; ‘as the crow flies’. This is similar to the continental USA and a substantially greater area than the entire EEC.

Transmitting electricity over such distances results in significant losses.  The market price received by a generator is therefore influenced by transmission costs and the point on the grid into which electricity generated is injected.  A renewable energy project remote from the points of high demand will receive a lower price than one adjacent. 

Very high voltage DC (HVDC) technology can reduce the net grid loss problem over long distances, and this is in use for links to Tasmania and South Australia, but it adds at least two costly voltage translations and the additional capital cost, together with the low capacity factor of wind and solar, precludes its use in most, if not all renewables dedicated situations.

 

Even with the present substantial and probably increasing REC cross-subsidies from electricity consumers, transmission factors limit the economic distance an exploitable wind or solar resource can be from the main electricity grid and electricity consumers.

 

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Travel

Bolivia

 

 

In October 2011 our little group: Sonia, Craig, Wendy and Richard visited Bolivia. We left Puno in Peru by bus to Cococabana in Bolivia. After the usual border form-filling and stamps, and a guided visit to the church in which the ‘Black Madonna’ resides, we boarded a cruise boat, a large catamaran, to Sun Island on the Bolivian side of the lake.

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Fiction, Recollections & News

The Secret

The Secret

By Richard McKie

 

 Download PDF (for e-readers)

 

Lansing Michigan was a fine place to grow up, she guessed.  It was nice, and safe.

Her dad worked in the Michigan State Government and her mum stayed home. They weren’t rich but they were comfortable. Their new house was big, the nicest they had lived in and it was in a really good area. 

She had never been overseas, unless you count nearby Canada, and that was mainly on trips to Niagara Falls, usually when one of Mum’s sisters came to stay. When they passed through Sarnia, into Canada, Dad would always say "Yea! Overseas again!". It was about his only joke.

Sometimes they went through Detroit. But after what had happened there the last time she shut that out of her consciousness. No wonder she is timid and takes fright easily. Now if a friend even seemed to be driving in that direction she would go into the foetal position and shut-down.

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Opinions and Philosophy

Australia and Empire

 

 

 

The recent Australia Day verses Invasion Day dispute made me recall yet again the late, sometimes lamented, British Empire.

Because, after all, the Empire was the genesis of Australia Day.

For a brief history of that institution I can recommend Empire: How Britain Made the Modern World by Scottish historian Niall Campbell Ferguson.

My choice of this book was serendipitous, unless I was subconsciously aware that Australia Day was approaching.  I was cutting through our local bookshop on my way to catch a bus and wanted something to read.  I noticed this thick tomb, a new addition to the $10 Penguin Books (actually $13). 

On the bus I began to read and very soon I was hooked when I discovered references to places I'd been and written of myself.  Several of these 'potted histories' can be found in my various travel writings on this website (follow the links): India and the Raj; Malaya; Burma (Myanmar); Hong Kong; China; Taiwan; Egypt and the Middle East; Israel; and Europe (a number).  

Over the next ten days I made time to read the remainder of the book, finishing it on the morning of Australia Day, January the 26th, with a sense that Ferguson's Empire had been more about the sub-continent than the Empire I remembered.

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