Month: March 2017

Grid may need ‘priority access’ system in future

Grid may need ‘priority access’ system in future

via NOT A LOT OF PEOPLE KNOW THAThttps://notalotofpeopleknowthat.wordpress.com

By Paul Homewood

 

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From Utility Week:

A senior figure at Ofgem has called for a public debate on how consumers pay for and make use of the UK’s electricity networks.

Moves to increase flexibility and squeeze the most out of existing infrastructure could otherwise allow “one group of customers to outbid another group of customers for access”.

“When we consider that capacity may be at a premium – it is increasingly expensive to provide on a marginal basis,” said Ofgem senior partner Andrew Wright, “allowing everyone to charge their vehicles and power their heat pumps without constraint could turn out to be prohibitively expensive for everyone and increasingly difficult to manage on the system.

“In the future, we may need to find new ways of paying for and providing access to the electricity system.” He said the issue is “contentious” and will need to be approached in a way which “meets society’s expectations of fairness and reliability”.

Wright, who has previously raised fears over the creation of a two-tier energy system, said those who want greater access to the grid in order to use a fast charger for their electric vehicle may need to pay more for it. “Alternatively, people who want to accept some limits on their ability to consume large amounts of electricity when they want may be able to benefit in terms of prices.”

If consumers are allowed to pay extra for enhanced access to the grid, then there will need to be “some sort of priority access for the basic needs for everyone, over other less essential or more flexible requirements”.

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We have heard a lot about so called “flexibility” in discussions about future energy strategies. How, for instance, can we cope with intermittency of renewable sources, and how can we move demand away from peak periods.

Andrew Wright has revealed the ugly truth of what it really means. As with any other commodity, when electricity is in short supply it will end up being rationed by price.

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March 11, 2017 at 10:54PM

Another taxpayer-funded energy company files for bankruptcy

Another taxpayer-funded energy company files for bankruptcy

via NOT A LOT OF PEOPLE KNOW THAThttps://notalotofpeopleknowthat.wordpress.com

By Paul Homewood

 

h/t Gamecock

 

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From Fox News:

 

A cutting-edge battery maker that received millions from taxpayers has become the latest government-backed energy firm to file for bankruptcy – reviving the controversy over how stimulus dollars were spent under the last administration.

Seven years after Aquion Energy received a $5.2 million stimulus-tied grant from the federal government, the Pennsylvania company on Wednesday filed for Chapter 11 bankruptcy.

“Creating a new electrochemistry and an associated battery platform at commercial scale is extremely complex, time-consuming, and very capital intensive. Despite our best efforts to fund the company and continue to fuel our growth, the Company has been unable to raise the growth capital needed to continue operating as a going concern,” Scott Pearson, Aquion’s outgoing CEO, said in a press release

The company, which is now seeking a buyer, produces batteries to store solar and renewable energy. It had been touted as a rising star in the energy storage business, even attracting investment from Microsoft founder Bill Gates and millions more in state funding.

 

Full story here.

 

This comment by William Yeatman, a senior fellow at the Competitive Enterprise Institute rather says it all:

 

“Let’s remember that the need for energy storage systems is  strictly a consequence of the intermittency of renewable energy sources like solar and wind.

These companies benefit from the grants and indirectly from the inefficiencies of an industry that exists by the grace of political favoritism.”

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March 11, 2017 at 10:24PM

WSJ: The Case For Pulling Out Of Obama’s Paris Climate Accord

WSJ: The Case For Pulling Out Of Obama’s Paris Climate Accord

via The Global Warming Policy Forum (GWPF)http://www.thegwpf.com

President Trump is expected as soon as next week to order the Environmental Protection Agency to rescind its Clean Power rule that is blocked by the courts. But the President faces another test of political fortitude on whether to withdraw the U.S. from the Paris climate accord.

That’s suddenly uncertain. Mr. Trump promised to withdraw during the presidential campaign, correctly arguing that the accord gave “foreign bureaucrats control over how much energy we use.” His transition team even explored strategies for short-cutting the cumbersome, four-year process of getting out of the deal.

But the President’s is now getting resistance from his daughter, Ivanka, and Secretary of State Rex Tillerson, who are fretting about the diplomatic ramifications. No doubt many countries would object, and loudly, but this risk pales compared to the potential damage from staying in the accord.

President Obama committed as part of Paris to cutting U.S. emissions by 26% compared with 2005 levels by 2025. Even Mr. Obama’s climate regulatory programs—all imposed without Congressional votes—would only achieve about half that commitment. Mr. Trump is killing those Obama programs, which means the U.S. may not reach that Paris promise. Why stay in an agreement that the Trump Administration has no interest or plan for honoring?

Another risk is that the U.S. might at some point be coerced into compliance. Mr. Obama joined the accord without congressional assent and endorsed the lengthy withdrawal process precisely to bind future Administrations to his climate priorities. Since Mr. Trump’s election, the international climate lobbies have debated ways to muscle the new Administration to comply.

These include imposing punitive tariffs on U.S. goods or requiring the U.S. to hit targets in return for other international cooperation. Mr. Tillerson might consider that Paris will be used as leverage against him in future international negotiations.

Lawyers and domestic environmental groups are also exploring how to use lawsuits to enforce the deal. Greens are adept at finding judges to require environmental regulations that Congress never intended. Such sympathetic judges today pack the D.C. Circuit Court of Appeals and include Supreme Court Justice Anthony Kennedy, who in 2007 joined four liberals to redefine the Clean Air Act to cover carbon as a pollutant.

Remaining in the Paris pact will invite litigation to impose the Paris standards and direct the EPA to impose drastic carbon cuts that would hurt the economy. Energy companies are aware of this threat, and despite Exxon’s recent pledge to pour $20 billion into Gulf Coast facilities, other companies remain wary of U.S. regulation. They will be warier if Mr. Trump looks like he’s waffling on his climate positions.

Mr. Trump’s best bet is to exit the United Nations Framework Convention on Climate Change, which could be done in a year and would result in a simultaneous withdrawal from Paris. That would quickly end the litigation risk.

Mr. Tillerson said at his confirmation hearing that he believes the U.S. should remain in the Paris pact to have a “seat at the table” for the climate debate. But the U.S. doesn’t need Paris to have a say in global energy policy.

America has already done more to reduce CO 2 emissions with its natural-gas fracking revolution than has most of the world. Many of the Paris signers want to use the pact to diminish any U.S. fossil-fuel production. Mr. Tillerson will also be on the back foot in Paris discussions as he tries to overcome his past as an oil company executive.

The best U.S. insurance against the risks of climate change is to revive economic growth that will drive energy innovation and create the wealth to cope with any future damage—if that day arrives.

Policy details aside, the worst part of Mr. Obama’s climate agenda was its lack of democratic consent. He failed to persuade either a Republican or Democratic Congress to pass his regulation and taxes. So he attempted to impose that agenda at home through the EPA and abroad via Paris to use international pressure against domestic political resistance. One certainty: The diplomats at Turtle Bay and in Brussels didn’t vote for Donald Trump.

WSJ, 10 March 2017

via The Global Warming Policy Forum (GWPF) http://www.thegwpf.com

March 11, 2017 at 07:52PM

UK INDUSTRIAL STRATEGY NOT JOINED UP

UK INDUSTRIAL STRATEGY NOT JOINED UP

via climate sciencehttp://climatescience.blogspot.com/

The House of Commons committee responsible for scrutinising the Department of Business, Energy and Industrial Strategy (BEIS), has just published its first review of the government’s flagship “Industrial Strategy”. Below is a flavour of the report.

There is a fundamental conflict between security of supply, decarbonisation and affordability  requiring that one or other of these objectives is substantially sacrificed in order to meet the other. Indeed, the Committee must have some inkling of this because elsewhere it expresses the fear that government will, after all, put a “higher priority” on affordability than on “progress against carbon budgets.

In fact this concern is probably groundless, at least for the time being, since there is every sign that government, or at least Mr Clark, Secretary of State for BEIS, is clinging to the idea that it is possible “to keep costs down for businesses” while decarbonising, and that there are “economic benefits”, rather than net costs, to “the transition to a low-carbon economy” (Industrial Strategy, p. 11). With subsidies to renewable electricity currently running at about £5 billion a year in the UK, and stretching out at this rate for decades, such a view is nothing short of bizarre. Indeed, the committed extra cost will be a grave obstacle to economic stability let alone growth even if the claimed and somewhat implausible capital cost reductions in offshore wind, for example, are supported by dramatic and at present unlikely reductions in the system costs need to address intermittency.

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March 11, 2017 at 05:00PM