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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

Dan Brown's 'Origin'

 

 

 

 

 

The other day I found myself killing time in Chatswood waiting for my car to be serviced. A long stay in a coffee shop seemed a good option but I would need something to read - not too heavy. In a bookshop I found the latest Dan Brown: Origin. Dan might not be le Carré but like Lee Child and Clive Cussler he's a fast and easy read.

Read more: Dan Brown's 'Origin'

Opinions and Philosophy

Climate Emergency

 

 

 

emergency
/uh'merrjuhnsee, ee-/.
noun, plural emergencies.
1. an unforeseen occurrence; a sudden and urgent occasion for action.

 

 

Recent calls for action on climate change have taken to declaring that we are facing a 'Climate Emergency'.

This concerns me on a couple of levels.

The first seems obvious. There's nothing unforseen or sudden about our present predicament. 

My second concern is that 'emergency' implies something short lived.  It gives the impression that by 'fire fighting against carbon dioxide' or revolutionary action against governments, or commuters, activists can resolve the climate crisis and go back to 'normal' - whatever that is. Would it not be better to press for considered, incremental changes that might avoid the catastrophic collapse of civilisation and our collective 'human project' or at least give it a few more years sometime in the future?

Back in 1990, concluding my paper: Issues Arising from the Greenhouse Hypothesis I wrote:

We need to focus on the possible.

An appropriate response is to ensure that resource and transport efficiency is optimised and energy waste is reduced. Another is to explore less polluting energy sources. This needs to be explored more critically. Each so-called green power option should be carefully analysed for whole of life energy and greenhouse gas production, against the benchmark of present technology, before going beyond the demonstration or experimental stage.

Much more important are the cultural and technological changes needed to minimise World overpopulation. We desperately need to remove the socio-economic drivers to larger families, young motherhood and excessive personal consumption (from resource inefficiencies to long journeys to work).

Climate change may be inevitable. We should be working to climate “harden” the production of food, ensure that public infrastructure (roads, bridges, dams, hospitals, utilities and so) on are designed to accommodate change and that the places people live are not excessively vulnerable to drought, flood or storm. [I didn't mention fire]

Only by solving these problems will we have any hope of finding solutions to the other pressures human expansion is imposing on the planet. It is time to start looking for creative answers for NSW and Australia  now.

 

Read more: Climate Emergency

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