Comments on: The Spanish Green Jobs Study http://cstpr.colorado.edu/prometheus/?p=5144 Wed, 29 Jul 2009 22:36:51 -0600 http://wordpress.org/?v=2.9.1 hourly 1 By: maxlybbert http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13539 maxlybbert Fri, 24 Apr 2009 17:59:43 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13539 Let me try rephrasing things. Imagine a city that owns a coal power plant. They decide to move to alternative energy and close the coal power plant. If they go with solar, they still need something to produce energy at night (at least it's off-peak, though). They can't go 100% wind either, because they need something to supplement energy production on calm days or nights. They <strong>can</strong> go with nuclear or hydroelectric, and they could have wind supplement that. But if they're already building a nuclear or hydroelectric plant, why not just build that plant larger and forget the windmills? Windmills have almost negligible operating/maintenance costs, but they have this huge upfront cost that by the time they're actually profitable they are obsolete. Or maybe build a nuclear plant large enough for the city and use the money they would have spent on windmills to get everybody top-of-the-line LEDs? Let me try rephrasing things.

Imagine a city that owns a coal power plant. They decide to move to alternative energy and close the coal power plant.

If they go with solar, they still need something to produce energy at night (at least it’s off-peak, though). They can’t go 100% wind either, because they need something to supplement energy production on calm days or nights. They can go with nuclear or hydroelectric, and they could have wind supplement that.

But if they’re already building a nuclear or hydroelectric plant, why not just build that plant larger and forget the windmills? Windmills have almost negligible operating/maintenance costs, but they have this huge upfront cost that by the time they’re actually profitable they are obsolete.

Or maybe build a nuclear plant large enough for the city and use the money they would have spent on windmills to get everybody top-of-the-line LEDs?

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By: EDaniel http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13518 EDaniel Fri, 24 Apr 2009 13:50:47 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13518 jasg, "I suspect you and EDaniel along with most on this thread don’t actually care whether CO2 is reduced, since we don’t believe it’s catastrophic if it doesn’t. " YANS, jasg, kindly do not accredit to me anything I have not written. thanks jasg, “I suspect you and EDaniel along with most on this thread don’t actually care whether CO2 is reduced, since we don’t believe it’s catastrophic if it doesn’t. ”

YANS, jasg, kindly do not accredit to me anything I have not written.

thanks

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By: jasg http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13514 jasg Fri, 24 Apr 2009 10:19:43 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13514 EDaniel The trouble is taht if the whole life cost turns out to be similar for most fuels then it contradicts the argument about subsidies, negates any idea that wind is more expensive and it means that any negative reports, such as this Spanish one and the others mentioned above, are due to poor accounting. Now since we are all used to economists being utterly wrong a great deal of the time because of their gross simplifications then that isn't surprising. But since wind and solar have been reducing costs for a long time (by ten and twentyfold) and that is set to continue I wonder if that expected cost reduction is factored in. I think solar will continue making really huge cost reductions because there is some really good research being done. Yes coal is slightly cheaper but it is also the dirtiest by far - and I'm not talking about CO2. Ask the Chinese. Max... I suspect you and EDaniel along with most on this thread don't actually care whether CO2 is reduced, since we don't believe it's catastrophic if it doesn't. However if it stays at the same level while energy capacity is increased, and if that increase was really achieved at the same cost per MegaWatt then that is something to celebrate not deride, because energy demand will be ever increasing. For that reason I think this study is answering the wrong question and even getting that answer wrong. The real problem for realists is not future CO2 levels but future energy demand. Even Greenpeace are realistic when they expressly state that it is a huge challenge even just to keep fossil fuel plants at the same level in the future. And yes we should try to do that just in case. Any CO2 reduction or stabilization will likely have to be by energy conservation. But again we'll probably just be running to stand still. EDaniel
The trouble is taht if the whole life cost turns out to be similar for most fuels then it contradicts the argument about subsidies, negates any idea that wind is more expensive and it means that any negative reports, such as this Spanish one and the others mentioned above, are due to poor accounting. Now since we are all used to economists being utterly wrong a great deal of the time because of their gross simplifications then that isn’t surprising. But since wind and solar have been reducing costs for a long time (by ten and twentyfold) and that is set to continue I wonder if that expected cost reduction is factored in. I think solar will continue making really huge cost reductions because there is some really good research being done. Yes coal is slightly cheaper but it is also the dirtiest by far – and I’m not talking about CO2. Ask the Chinese.

Max…
I suspect you and EDaniel along with most on this thread don’t actually care whether CO2 is reduced, since we don’t believe it’s catastrophic if it doesn’t. However if it stays at the same level while energy capacity is increased, and if that increase was really achieved at the same cost per MegaWatt then that is something to celebrate not deride, because energy demand will be ever increasing. For that reason I think this study is answering the wrong question and even getting that answer wrong. The real problem for realists is not future CO2 levels but future energy demand. Even Greenpeace are realistic when they expressly state that it is a huge challenge even just to keep fossil fuel plants at the same level in the future. And yes we should try to do that just in case. Any CO2 reduction or stabilization will likely have to be by energy conservation. But again we’ll probably just be running to stand still.

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By: EDaniel http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13511 EDaniel Fri, 24 Apr 2009 00:55:48 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13511 re: #25 maxlybbert, those numbers show that the actual real-world, as-installed carbon-displacement-efficiency for wind is about 4.2 %. This is almost never mentioned even tho its been in E.ON reports for several years now. re: #25

maxlybbert, those numbers show that the actual real-world, as-installed carbon-displacement-efficiency for wind is about 4.2 %.

This is almost never mentioned even tho its been in E.ON reports for several years now.

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By: Mike http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13508 Mike Fri, 24 Apr 2009 00:28:06 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13508 jasg -- I can't really comment about energy costs in Spain, though I suspect they're not all that different from the U.S. Subsidies are probably quite different, though. I don't think the low number for coal subsidy that I gave before has anything to do with few coal plants being built in 2007. That EIA report compares 2007 numbers with 1999 numbers. They don't list dollars per MWh for 1999, but the overall subsidy for coal was quite a bit less in 1999 than 2007 (in constant 2007 dollars), while the amount of electricity generated using coal was only a little bit less in 1999 than in 2007. Thus, the subsidy in dollars per MWh is lower in 1999 than 2007, but not by all that much. On the other hand, subsidies for renewables more than tripled from 1999 to 2007, while the amount of electricity generated by solar and wind increased by about a factor of six (I had to find that in a different EIA report). Thus, the subsidy per MWh seems to have declined for renewables in 2007 vs. 1999, but it is still about 50 times higher than coal (comment # 23). The numbers for cost of electricity that you cite from that Yale report show that wind generation is reasonably competitive with coal, natural gas, and nuclear, but note that it doesn't list solar. Solar electrical generation is MUCH more expensive, and will be for the forseeable future. By the way, those numbers (5.58 cents/kWh, etc.) are not the cost for building the plant; they are electricity costs averaged over the whole plant lifecycle, so they take into account fuel, maintenance, etc. I won't vouch for those particular numbers, but they are similar to ones I have seen elsewhere. The strange one is natural gas; I've never seen natural gas electricity costs below coal costs. Coal is the lowest; that's why over 50% of our electricity is generated using coal. jasg — I can’t really comment about energy costs in Spain, though I suspect they’re not all that different from the U.S. Subsidies are probably quite different, though.

I don’t think the low number for coal subsidy that I gave before has anything to do with few coal plants being built in 2007. That EIA report compares 2007 numbers with 1999 numbers. They don’t list dollars per MWh for 1999, but the overall subsidy for coal was quite a bit less in 1999 than 2007 (in constant 2007 dollars), while the amount of electricity generated using coal was only a little bit less in 1999 than in 2007. Thus, the subsidy in dollars per MWh is lower in 1999 than 2007, but not by all that much. On the other hand, subsidies for renewables more than tripled from 1999 to 2007, while the amount of electricity generated by solar and wind increased by about a factor of six (I had to find that in a different EIA report). Thus, the subsidy per MWh seems to have declined for renewables in 2007 vs. 1999, but it is still about 50 times higher than coal (comment # 23).

The numbers for cost of electricity that you cite from that Yale report show that wind generation is reasonably competitive with coal, natural gas, and nuclear, but note that it doesn’t list solar. Solar electrical generation is MUCH more expensive, and will be for the forseeable future. By the way, those numbers (5.58 cents/kWh, etc.) are not the cost for building the plant; they are electricity costs averaged over the whole plant lifecycle, so they take into account fuel, maintenance, etc. I won’t vouch for those particular numbers, but they are similar to ones I have seen elsewhere. The strange one is natural gas; I’ve never seen natural gas electricity costs below coal costs. Coal is the lowest; that’s why over 50% of our electricity is generated using coal.

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By: maxlybbert http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13501 maxlybbert Thu, 23 Apr 2009 19:25:42 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13501 I'm not saying that new fossil plants are needed; only that old ones can't get shut down. Germany built windmills capable of producing 48,000 MW of power. According to the BWEA link they should produce on average 1/3 of that: 16,000 MW. But Germany's only been able to reduce electricity production from coal plants by 2000 MW, hardly a rousing success. CO2 output doesn't increase, but it doesn't decrease that much either. Instead people get to feel good for doing something, but that something is ineffective. I’m not saying that new fossil plants are needed; only that old ones can’t get shut down.

Germany built windmills capable of producing 48,000 MW of power. According to the BWEA link they should produce on average 1/3 of that: 16,000 MW. But Germany’s only been able to reduce electricity production from coal plants by 2000 MW, hardly a rousing success.

CO2 output doesn’t increase, but it doesn’t decrease that much either. Instead people get to feel good for doing something, but that something is ineffective.

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By: jasg http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13498 jasg Thu, 23 Apr 2009 15:01:30 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13498 Mike I'm talking Spain and you are talking USA. In Spain it is a bit more clear cut - the government heavily subsidises all power plant construction. And per megawatt the construction costs are comparable. In the USA it is easier to get banks to fund a coal plant but I really don't know if government part-funds it. Even if it did though, 2007 is a year where 59 coal plants were canceled in the US, so no new coal plants were actually built that year. ie it's not really a good comparison year since, by contrast much wind power was added in 2007. I think we'd all agree that construction capital cost is THE big subsidy. Hence, just like the Spaniards did in the report mentioned above, you are comparing the cost of building something with the cost of building nothing. That's a good way of proving zilch. Going to US reports on comparative costs, may I point you here : http://yaleglobal.yale.edu/display.article?id=8813 reprinted from the Wall Street journal, where it says: "The Department of Energy's Energy Information Administration has concluded that there isn't much difference between the cost of new power plants using wind and other traditional fuels, such as nuclear, coal and natural gas, if you take into account a broad array of expenses. A plant entering service in 2015, the administration said in a 2006 report, could make electricity from wind for 5.58 cents a kilowatt hour -- versus 5.25 cents for natural gas, 5.31 cents for coal and 5.93 cents for nuclear. The report didn't quantify the differing environmental impacts. " This is elaborated a bit here on the same site: http://www.eia.doe.gov/oiaf/aeo/assumption/pdf/electricity.pdf#page=3 see table 8.2 cost/kw where you see that wind seems to be cheaper than coal. It's good to bring out the actual numbers though. The trouble is that too many reports are constructed more for support than illumination. I'd like the two opposing factions to get together and seek out the actual facts, with sensible accounting. Perhaps the wsj article does that already though. Maxl... Your understanding is not borne out by actual experience. This is why we have a grid. There are some sophisticated techniques for dealing with such problems. See here: http://www.bwea.com/energy/myths.html Certainly in Spain, Denmark and Germany no new fossil utility or batteries were required as backup. Bearing in mind that Wind power was never actually intended to supply 100% of the grid. Between 20 and 40% works out fine. Mike
I’m talking Spain and you are talking USA. In Spain it is a bit more clear cut – the government heavily subsidises all power plant construction. And per megawatt the construction costs are comparable. In the USA it is easier to get banks to fund a coal plant but I really don’t know if government part-funds it. Even if it did though, 2007 is a year where 59 coal plants were canceled in the US, so no new coal plants were actually built that year. ie it’s not really a good comparison year since, by contrast much wind power was added in 2007. I think we’d all agree that construction capital cost is THE big subsidy. Hence, just like the Spaniards did in the report mentioned above, you are comparing the cost of building something with the cost of building nothing. That’s a good way of proving zilch.

Going to US reports on comparative costs, may I point you here :
http://yaleglobal.yale.edu/display.article?id=8813
reprinted from the Wall Street journal, where it says:
“The Department of Energy’s Energy Information Administration has concluded that there isn’t much difference between the cost of new power plants using wind and other traditional fuels, such as nuclear, coal and natural gas, if you take into account a broad array of expenses. A plant entering service in 2015, the administration said in a 2006 report, could make electricity from wind for 5.58 cents a kilowatt hour — versus 5.25 cents for natural gas, 5.31 cents for coal and 5.93 cents for nuclear. The report didn’t quantify the differing environmental impacts. ”

This is elaborated a bit here on the same site:
http://www.eia.doe.gov/oiaf/aeo/assumption/pdf/electricity.pdf#page=3
see table 8.2 cost/kw where you see that wind seems to be cheaper than coal.

It’s good to bring out the actual numbers though. The trouble is that too many reports are constructed more for support than illumination. I’d like the two opposing factions to get together and seek out the actual facts, with sensible accounting. Perhaps the wsj article does that already though.

Maxl…
Your understanding is not borne out by actual experience. This is why we have a grid. There are some sophisticated techniques for dealing with such problems. See here:
http://www.bwea.com/energy/myths.html
Certainly in Spain, Denmark and Germany no new fossil utility or batteries were required as backup. Bearing in mind that Wind power was never actually intended to supply 100% of the grid. Between 20 and 40% works out fine.

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By: Mike http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13494 Mike Thu, 23 Apr 2009 04:57:11 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13494 jasg -- just what are the huge coal subsidies you're talking about? The EIA (http://www.eia.doe.gov/oiaf/servicerpt/subsidy2/index.html) has the following subsidy figures for 2007 (Table ES5): Coal $0.44/MWh Natural gas $0.25/MWh Nuclear $1.59/MWh Solar $24.34/MWh Wind $23.37/MWh jasg — just what are the huge coal subsidies you’re talking about? The EIA (http://www.eia.doe.gov/oiaf/servicerpt/subsidy2/index.html) has the following subsidy figures for 2007 (Table ES5):

Coal $0.44/MWh
Natural gas $0.25/MWh
Nuclear $1.59/MWh
Solar $24.34/MWh
Wind $23.37/MWh

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By: maxlybbert http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13492 maxlybbert Wed, 22 Apr 2009 22:51:13 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13492 As to the specifics of wind: it's my understanding that unless the wind is effectively constant 24 hours a day/365.25 days a year there has to be a back-up power source for calm days/nights. Without some amazingly large battery allowing electricity generated from windmills to be stored (and distributed on calm days/nights) I really don't see any other option. And, apparently, the back-up power plant is often a fossil fuel plant. And fossil fuel plants aren't designed to be turned on and off on a whim ( http://www.coyoteblog.com/coyote_blog/2009/04/the-problem-with-wind.html ); so instead they are kept running at some low level. Which means, of course, that they are still kicking off CO2 even when the electricity they generate isn't being used. As to the specifics of wind: it’s my understanding that unless the wind is effectively constant 24 hours a day/365.25 days a year there has to be a back-up power source for calm days/nights. Without some amazingly large battery allowing electricity generated from windmills to be stored (and distributed on calm days/nights) I really don’t see any other option.

And, apparently, the back-up power plant is often a fossil fuel plant. And fossil fuel plants aren’t designed to be turned on and off on a whim ( http://www.coyoteblog.com/coyote_blog/2009/04/the-problem-with-wind.html ); so instead they are kept running at some low level. Which means, of course, that they are still kicking off CO2 even when the electricity they generate isn’t being used.

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By: jasg http://cstpr.colorado.edu/prometheus/?p=5144&cpage=1#comment-13491 jasg Wed, 22 Apr 2009 22:42:08 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=5144#comment-13491 Reid I think that's the case for the US because they luckily have abundant coal, gas and even shale oil. Spain only has sunshine and wind and some gas from Africa. Spain and the US are not comparable so the report has a bad premise. Then so did Obama. However I'd judge his actions more than his words. He has to please a lot of hotheads and so he has to phrase everything correctly. And just as you will never abandon your own long-term ideologies they will never abandon theirs. I think it was a clever move though to bring them inside so they had to face the grim realities themselves: It's too easy to be an external critic but if you are the one making the decisions it's not so easy. "Keep your friends close but your enemies closer" as they say. On ROI you have to make sure that you are actually saving money. Eg if you close down a loss making railway line does that mean you spend much more on road building? The UK did exactly that. France once again got it exactly right. Bearing in mind that some things are so vital to the rest of the economy that a little overspend can easily be justified on the basis of the lesser evil. Of course profit is nicer: I was surprised that SNCF made 2 billion profits while delivering a really quality service. Clearly a little subsidy at the start can be repaid by later profits. Jae I wouldn't argue with a word of that report. I'm surprised at the solar panel finding but there are no shortage conmen in the green energy business - a wider study is warranted than just one guy at the bar. The US has plenty of oil and so does Venezuela but it's very expensive oil. It'll really need lots of subsidies :-). By the way I'm usually JamesG but i had to re-register. Reid
I think that’s the case for the US because they luckily have abundant coal, gas and even shale oil. Spain only has sunshine and wind and some gas from Africa. Spain and the US are not comparable so the report has a bad premise. Then so did Obama. However I’d judge his actions more than his words. He has to please a lot of hotheads and so he has to phrase everything correctly. And just as you will never abandon your own long-term ideologies they will never abandon theirs. I think it was a clever move though to bring them inside so they had to face the grim realities themselves: It’s too easy to be an external critic but if you are the one making the decisions it’s not so easy. “Keep your friends close but your enemies closer” as they say.

On ROI you have to make sure that you are actually saving money. Eg if you close down a loss making railway line does that mean you spend much more on road building? The UK did exactly that. France once again got it exactly right. Bearing in mind that some things are so vital to the rest of the economy that a little overspend can easily be justified on the basis of the lesser evil. Of course profit is nicer: I was surprised that SNCF made 2 billion profits while delivering a really quality service. Clearly a little subsidy at the start can be repaid by later profits.

Jae
I wouldn’t argue with a word of that report. I’m surprised at the solar panel finding but there are no shortage conmen in the green energy business – a wider study is warranted than just one guy at the bar. The US has plenty of oil and so does Venezuela but it’s very expensive oil. It’ll really need lots of subsidies :-) . By the way I’m usually JamesG but i had to re-register.

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