2. Nuclear is dead. Very dead. Thorium. Fast breeder. Pebble bed. I don't care which you pick, no one is going to pour 10 years and $1-4 billion into a plant that won't be cost competitive when it turns up (maybe some governments, but you can't fix that; it'll just get mothballed).
3. Utility scale batteries are going to be needed to make up for solar and wind's capacity factor (availability). Tesla is going to clean up with its Gigafactory. Well done Elon. I hope Mars treats you well.
4. Any pollutants or negative externalities of both solar panel and battery production can be much better contained and managed than the output of a coal plant.
5. Cheaper renewables means even cheaper power available for the transition to electric vehicles.
6. First world demand for renewables will continue to drive down costs, allowing third world countries to piggyback off the cost savings. Remember how Africa leapfrogged with cell phones instead of land lines? Imagine battery packs and solar roofs in every home instead of traditional utilities. It's already feasible with current economics.
Did I cover everything? Anything missing?
Basically, high-voltage electricity is distributed with networks that are dumb and old. The generation and usage is very carefully balanced with heavy users and large producers, because the network does not have storage capacity. It also has very little tolerance for power imbalance, the frequency cutoffs in the old equipment running most of the network are rather severe (in high-voltage networks, frequency increases with more power being fed into the system).
There are already extremely severe network problems in Germany for example where quite a bit of power comes from solar and wind. (I worked as an embedded sw engineer doing software that controlled solar inverters for a while)
The problem with upgrading distribution network is of course the MASSIVE amounts capex needed to replace it.
The other problem is industrial consumers - an aluminium smelter requires a certain amount of power coming in 24/7 or the ovens will freeze and if they do, restart is basically impossible. There are many other factories with similar problems. Given the trend towards just-in-time production and shipping, the chain of events that leads to massive disruption in the global trade can start from a fairly small shutdown with large snowball effects.
I'm not trying to put down green power generation, just saying that getting the price down to reasonable level is just one part of the puzzle.
No. This is primarily a political issue not a question of lack of resources, and the capex and difficulty required is, while high, typically overestimated by a large degree.
The main problem is that the networks are usually owned by monopoly utilities with interests in power generation. How much do you think they want to upgrade if the net result is more competition? Hell, they'd probably pay not to have to upgrade.
>There are already extremely severe network problems in Germany for example where quite a bit of power comes from solar and wind.
"Severe" would suggest blackouts or at least brownouts like California had in 2001.
>The other problem is industrial consumers - an aluminium smelter requires a certain amount of power coming in 24/7 or the ovens will freeze and if they do, restart is basically impossible.
If you must do something impossible, do it at least... twice :) ??
http://www.renewablesinternational.net/german-aluminum-firm-...
"Over the past 12 months, German aluminum giant Trimet has ramped down production twice on request from German grid operators."
Yes, they didn't shut it off entirely, but this demonstrates that smelters who can vary their electricity usage are actually part of the solution, not the problem.
(provided Germany didn't overpay them to ramp down that is... which they may well have)
Absolutely! A key point regarding energy is that you must be able to plan its availability. Lacking major improvements in energy storage, it boils down to predictability for energy production. Unfortunately, solar and wind miss it.
Another thing, while wind/solar might might be approaching the cost of fossil fuels I suspect the story may be different for developing countries. In South Africa we have power capacity problems and what was the decision? Build the biggest coal power plant in the southern hemisphere.
If we want to solve climate change developing countries are going to be a very severe problem. The people in charge have no interest in fore-sight.
Hydro and geothermal are 'green' solutions that can manage pretty constant power levels 24/7. Just make sure your factory is close to those type of power plants and you'll be fine.
There's another possibility which is that there will be an overbuild of solar and wind caused by a clean energy boom (ZIRP already did this to oil; where is that ROI-hungry risk capital going to look for returns next?).
The market will then figure out ways of putting the large irregular surpluses of electricity to use. For example, generating fuel as mentioned below, or running adjustable output aluminum smelting plants.
I think the opportunities opened up by periodic bouts of practically free electricity which have already started to occur have been vastly understated. People just look at the other side of the equation - probably because oil/utility companies have tried to keep us fixated upon it.
I think the most optimistic part of all of this, though, is the implications for democracy and peace. When the age of oil finally expires (and it is nearing a close) there won't be any way to put a chokehold on supplies of energy with raw military power.
This is probably the only thing, in fact, that could actually lead to lasting peace in the middle east, which has been plagued by the resource curse for a century or so.
Perhaps you even get a stabilizing mechanism where: drought ~ high solar output -> cheap electricity -> water desalination -> eliminates drought problems.
My whole country is situated north of the 60th parallel north. Winters are friggin cold and I would be very concerned if there were no sources of energy not dependent on sunlight or wind.
Also, I'm a neurotic so in case of a nuclear winter type of effect I would love to have some nuclear reactor technology going.
For deep space exploration solar panels don't work. It would be nice if we maintained active interest in power generation systems not dependent on sun or atmospheric movements.
My guess is that, in case of nuclear winter, the complex societal structures that make operating nuclear energy possible will break down anyway.
I think the real advantage in places like China, Tanzania, Kenya, etc, is they don't seem to have half of their political class entrenched in the idea that they need to crush renewables because of an unholy alliance of their business backers (the Kochs, Murdoch, etc) and the portion of the population who are apparently pro pollution because they hate hippies or something.
Batteries have improved over time, but I'm not convinced that they'll see the vast improvements necessary in order for them to replace natural gas for a long time. If natural gas really must be replaced the most logical alternative might be ammonia.
Ammonia has hydrogen's good properties: not a greenhouse gas, doesn't cause smog, numerous production methods including electrolysis, easily transported in liquid form, can be used in fuel cells or in ICEs. However it doesn't embrittle, in liquid form it's actually denser in hydrogen atoms than liquid hydrogen is, and due to its agricultural applications there is already an established distribution infrastructure (in the Midwest, at least).
Flywheels, compressed air, gravity storage?
http://www.audiusa.com/newsroom/news/press-releases/2015/05/...
https://en.wikipedia.org/wiki/E-diesel
This type of technology can allow the extra power generated by solar/wind to be used to create oil. If this technology is developed further, I think it could be a better alternative to batteries. Imagine a desert full of solar panels creating oil with excess electricity during the day. And at night the oil can be used to either provide night time electricity or directly in the existing oil infrastructure (cars, gas stations, etc.) The oil would be effectively carbon neutral.
The big problem is that we still don't have effective ways to time-shift energy production. Solar and wind power sources will never replace base-load coal/gas plants until we can solve that problem. Battery technology doesn't solve this problem yet.
It's already being done in Hawaii:
http://www.utilitydive.com/news/hawaii-co-op-solarcity-ink-d...
Wind/solar + batteries will never cover everything, because statistically there will be an event that the (very finite) capacity can't meet - then people will die, either freezing or overheating.
"2. Nuclear is dead. Very dead. Thorium. Fast breeder. Pebble bed. I don't care which you pick, no one is going to pour 10 years and $1-4 billion into a plant that won't be cost competitive when it turns up (maybe some governments, but you can't fix that; it'll just get mothballed)."
You're very wrong here. China in particular is investing heavily in nuclear going forward, including thorium. There are a number of companies here in the US, such as Flibe Energy and Thorcon that are working hard on next-gen nuclear solutions.
Nuclear is actually more environmentally friendly than wind, as it doesn't decimate bird and bat populations, has a much smaller land use footprint, and doesn't cause widespread noise pollution. It also has the additional attributes of reliability and low cost. The inherently safe next-gen nuclear technologies will come in at less than 5 cents per KWH, perhaps as low as half that.
On a level playing field, wind in particular can't compete. Eventually solar may, given enough technological breakthroughs.
http://energy.gov/sites/prod/files/2015/05/f22/Enabling%20Wi...
> You're very wrong here. China in particular is investing heavily in nuclear going forward, including thorium. There are a number of companies here in the US, such as Flibe Energy and Thorcon that are working hard on next-gen nuclear solutions.
While China continues to build a handful of nuclear plants, their wind generation capacity is already far ahead of what they're producing from nuclear:
http://www.earth-policy.org/data_highlights/2015/highlights5...
> On a level playing field, wind in particular can't compete.
Wind is already cheaper than nuclear without subsidies in the USA and the UK. It also kills less birds and bats than buildings, cell towers, and cats.
http://www.ewea.org/blog/2013/03/us-wind-energy-is-now-more-...
http://cleantechnica.com/2015/03/04/wind-solar-substantially...
You mention next-gen nuclear tech will come in at 5 cents/kwh. Utility solar is already below 4 cents/kwh:
http://www.greentechmedia.com/articles/read/cheapest-solar-e...
http://www.bloomberg.com/news/articles/2015-07-07/buffett-sc...
There's interesting issues to consider with respect to scale + locality in generation/storage.
My father-in-law's partner has a property in a rural area. Their property runs on 100% solar. The surrounding area has no local (large scale) power generation. During a recent storm the whole town was knocked off the grid. The property with solar kept working (after the storm, not during) while town was without power for days.
It's pretty rare to invest in small scale, local fossil fuel power generation. Small communities have to rely on the grid. But small scale renewable is feasible. There are cost benefits to larger systems, but those benefits need to be weighed up against the risk mitigation of having local systems.
The opposite side to that is that often the best places to run renewable generation is in remote areas and cities may be dependent on larger scale grids. (not that too many people want a fossil fuel plant operating in their city)
I expect that storage system (utility scale batteries) will shift the proposition again. Maybe your rural community doesn't its own generation, just the ability to store enough power to survive a grid failure for a few days.
I think you're ignoring the diesel or natural gas fueled generators that are now installed at most supermarkets, many office buildings, and even apartment buildings and private homes. They are everywhere these days; even 10 years ago you didn't see them as much.
Also, does it factor in the necessary costs for peak load and low production (cloudy / no wind)?
I actually don't think life would be that bad if society had to self-limit consumption during these times, but what are the real facts on these two items?
I think it just counts externalities that are already priced in via taxes/subsidies.
It's not really possible to price global warming or clean air anyway.
Plus, remember the story about primary school parents who were fined for being late to pick up their kids?
The effect of trying to price global warming or clean air is harmful in and of itself. We shouldn't be trying to accurately assess the cost of destroying our environment to determine the exact tax to levy on the fossil fuel companies. We should be taxing them into oblivion now that we have alternatives.
I also can see CSP being more attractive to locales with existing grids and who can probably attract financing easier for a +100 MW plant to one institution vs 100k+ people having to be sold on such to install PV on their house/property. There's definitely a market for both and they will all chip away at fossil fuels rapidly coming from different sides of the market for energy.
[0]: https://en.wikipedia.org/wiki/Concentrated_solar_power
[1]: http://www.examiner.com/article/market-growth-for-pv-solar-v...
Elon's battery tech has serious negative environmental impacts yet the majority of people think its perfectly green because the media hasn't yet vilified this industry like they have fossil fuels.
I have. Lithium is mined from a brine on the surface, versus strip mining. Its neutral from an environmental impact perspective. Lithium batteries are almost fully recyclable except for the insulation (which is currently landfilled).
> Elon's battery tech has serious negative environmental impacts
Citation?
Batteries are great, but they have to be replaced. Tanks can last for centuries and the materials are way cheaper at scale (CAES makes no sense below the MWh scale).
You seem to be assuming that world demand for power can never rise. I find that... unlikely.
Wired internet kicks wireless' ass everytime. So having land infrastructure is critical. That leapfrogging could bite them in the ass, if they have to gig now to lay down cables.
If we as a society decide we want clean energy, that's fine, but it is important that people make these decisions based upon actual facts. Clean energy in 2015 is still significantly more expensive than energy produced using fossil fuels (and of course this report leaves nuclear out entirely, which is far cheaper than coal).
Cost of production and what people pay are two different things. A true accounting would include cost of production and externalized costs. Doing that doubles the price of coal: http://green.blogs.nytimes.com/2011/02/17/tallying-coals-hid...
> Even the study’s most conservative estimate of the uncounted cost of coal — $175 billion a year — would more than double the average cost of coal-fired electricity, the authors found.
And most of that is from well-understood and well-measured health impacts of coal pollution:
> At this lower range, roughly 80 percent of the costs were from well-documented public health impacts like lung and heart disease
So you pay $75 per megawatt hour for coal. And then the poor sap who lives downwind of the coal plant pays another $75 per megawatt hour for your electricity use in the form of dying early from lung cancer.
$83 is close enough to $75 that tweaks to tax policy can now be used to make renewable energy investment over fossil fuel virtually a no brainer decision without adversely affecting overall energy production that much.
Indeed, that's pretty much what Germany has done.
>Also note that these are not costs of production, these are what people wind up paying for it. That means that the coal numbers include extensive taxes, while the solar and wind numbers include extensive tax discounts and incentives.
I won't speculate as to why you didn't note that fossil fuel subsidies are also included.
The tweaks to tax policy you're referring to have already happened, and they still haven't made wind and solar competitive. Taxes and incentives being included are the only reason that the numbers quoted in this extremely misleading report are even remotely close to each other (although an 11% difference in a multi-trillion dollar industry is hardly insignificant).
I wish they would be doing it the other way around: closing coal power plants before the nuclear ones. But Germany has lignite, and doesn't have much of a nuclear industry, so economically it makes much more sense that way...
EDIT: typo
Additionally, the article notes that in some countries the costs are even higher for coal and natural gas, and in those countries, solar is certainly within competitive costs.
You might not like that governments are taxing some forms of electricity more heavily, but it's a valid way of encouraging the industry to migrate to cleaner options.
It's not just a "valid way". This is the way taxes are intended to work! Taxes are not just a way for the state to collect money (maybe in the past centuries). They are also the main way to frame the economy.
Here in Germany, the term for "tax" is "Steuern" which means something like "controlling/steering/directing/governing". This is exactly the official purpose of taxes, and includes collecting as well as spending taxes.
Bloomberg LLP, the company behind this report, is run by Michael Bloomberg, a billionaire radical environmentalist. Therefore it isn't necessarily surprising to see such misleading tactics used in a report produced by them, but it is disappointing because Bloomberg masquerades as a news organization.
Islands that have to import oil to burn are ideal early markets for example.
And every solar panel or wind turbine reduces the price of the next, a positive feedback loop.
Every bit of coal or gas burned puts more CO2 in the atmosphere and increases the costs that governments will impose on production, a negative feedback loop.
The trend is very clear: solar and wind are dropping in prices. It's now only a matter of when, not if.
Although it is true that solar and wind are dropping in prices recently I don't think an urban legend misquote has any relevance.
If we factor those into the price, renewables like solar and wind would be much more competitive.
Really wish there was some repository of what the "true costs" of the things we use are, this has got me thinking about even more mundane goods when you consider the whole supply chain.
PS: Nuclear seems to be popular on a lot of tech sites, but it needs massive subsides to come close to break even.
"while natural gas-based electricity cost $82 in North and South America."
This makes no sense – the price of NG is very local.
I just ran an analysis of NYISO Zone J (New York City's) average hourly price for the last year – and it comes out at an average of $40.87 per MWh(peak and off peak). This would include all sources of generation.
The prices in the article would have everyone generating electricity loosing massive amounts of money – which they aren't.
https://docs.google.com/spreadsheets/d/1mOm7bMQYJof7WDfqXmbA...
You can find raw pricing data from the various US energy markets below – you'll have to dig a bit. This is price though, not cost.
http://www.nyiso.com/ http://www.pjm.com/ http://www.ercot.com/ http://www.miso.com/ http://www.caiso.com/
Here [1] is the official press release. However, I don't think the full report is available as a free download.
[1] http://about.bnef.com/press-releases/wind-solar-boost-cost-c...
As more countries and states enact market systems that put a price on carbon emissions, clean energy technologies will actually become cheaper than fossil fuel technologies
Translated into plain English:
As more governments raise the price of fossil fuels through increased taxation, solar and wind may cost less than fossil fuels.
What does the author have to gain by obfuscating something so obvious?
What is the impact on people when their energy costs are raised? (Hint: energy - vast amounts of it - goes into everything, from growing food to producing artificial heart valves.)
>As more governments raise the price of fossil fuels through increased taxation, solar and wind may cost less than fossil fuels.
well, as it stands currently the whole society pays the tax for the fossil fuels use - that tax is the expenses and damages caused by the environment damage and climate change, oil wars, backward countries and people having huge political power due to being rich from oil, etc... It is only fair to shift at least some of the tax burden to the actual producers and consumers of the fossil fuels.
>What is the impact on people when their energy costs are raised?
what are you talking about? 100w solar panel costs less than $100, double that for installation and wires&converter. So $200 loan at 6% for 20 years is $1.5/month or $0.05/day. In CA the panel will produce 1kwh/day. I.e. $0.05/kwh. And no more kissing of Saudi princes' lower backs :)
https://en.wikipedia.org/wiki/Rechargeable_battery
So this alone would increase your cost estimates by 150$
And for society you probably want a weeks worth of electricity stored in some form or other to deal with weather differences, and not summer winter difference. So minimal goal would be 24*7. Or just more than 150 hours.
Or that another 1500$ of cost not included in your estimations. Now a big thing to realize, in electricity markets where networks are required to take in solar and wind from other players, its not the producer of electricity that bears the cost of that large storage its the utility that buys the electricity from market.
Right now it works somewhere along the lines. Lets make 40% efficient fossil fuel plants instead of 60% efficient slowly starting fossil fuel plants, so that we can turn them on and off for covering the difference between intermitted sources and consumption. So in reality renewable plants end up just becoming fuel saving devices for fossil fuel plants while reducing fuel efficiency of said plants when they actually are turned on . In long run I believe nuclear is way to go if we want to stop global warming. The intermittency problem goes away with it and you can run a grid with 100% nuclear with very little storage because production isn't intermittent, and with modern plants you can vary electricity production between 50 and 100%
Global warming is accumulating effect, the emissions are just rate of change, and not the temperature difference, and we need to aim pretty close to zero emissions to stop it. [Yes nature takes some of it off from circulation but a lot less than people think because naysayers compare our emissions to winter, summer cycle of plants that cancels itself in yearly basis.]
"Wind power is now the cheapest electricity to produce in both Germany and the U.K., even without government subsidies, according to a new analysis by Bloomberg New Energy Finance (BNEF). It's the first time that threshold has been crossed by a G7 economy."
I didn't paste the rest in here, its long, but you should read it. Its even better in the US.
http://www.bloomberg.com/news/articles/2015-10-06/solar-wind...
I once read a study from a major state university, commissioned by the state government, that argued that it was more economic to recycle plastic bottles than to landfill them.
BUT... when you dug into the details of the report (something the journalists and general public were unlikely to do), you found the calculations didn't correct for taxation (landfills) and subsidies (recyclers) as regulatory distortion. The report simply treated them as natural economic components; itemized, yes, but not removed from the conclusion.
When I saw that I have to admit I became rather more cynical about the intersection of politics and academics. It just wasn't right.
I also found these statistics helpful: http://www.moralcaseforfossilfuels.com/data/
There ought to be minimal impact on overall energy costs since renewable energy is capable of filling in the demand at the same cost these days.
Renewable energy is also perfectly capable of ramping up supply to match demand (unlike oil or gas there isn't a hard resource limit to manufacturing capacity).
Less than the impact on people when the land they own doesn't stay land.
For each of us, even this would be better than abandoning industrial civilization, which is the thing that gives us hospitals, abundant food, clothing, shelter, clean/hot/cold water, and everything else needed for a good human life.