Month: January 2023

The real winners of Net Zero: China’s cheap EVs will swamp Europe’s car market

By Paul Homewood

I warned about this years ago:

 

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Chinese carmaking giant BYD Co. will start selling vehicles this quarter in the UK, where electric cars are seizing a growing share of the market. BYD already outsold Tesla in 2022.
Chinese carmaking giant BYD Co. will start selling vehicles this quarter in the UK, where electric cars are seizing a growing share of the market.
The automaker backed by Warren Buffett’s Berkshire Hathaway Inc. has appointed four UK dealer partners in Pendragon Plc, Arnold Clark Automobiles Ltd., Lookers Motor Group Ltd. and LSH Auto Holdings, according to an emailed statement. BYD’s debut model will be the Atto 3 sport utility vehicle, and it will announce more dealer partners and pricing in the coming weeks.

While the UK remains one of Europe’s biggest car markets, automakers have struggled to revive sales since the start of the pandemic, with registrations slumping to a 30-year low in 2022. EVs have been a bright spot, with battery-electric models accounting for around 17% of deliveries last year, overtaking diesel for the first time.
Shenzhen-based BYD has been expanding in Europe, having already set up shop in countries including Norway, Denmark, Sweden, the Netherlands and Belgium. The group — which also has been making a big push into other markets around Asia, including Thailand and Australia — may even pass up Tesla Inc. in global EV sales this year by expanding its model lineup and manufacturing capacity, according to BloombergNEF.
When including its plug-in hybrid electric vehicles, BYD already outsold Tesla in 2022, and its sales of fully electric vehicles soared to around 911,000 last year, from 321,000 in 2021.

https://www.bloomberg.com/news/articles/2023-01-17/byd-will-start-selling-electric-suvs-in-the-uk-this-quarter

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January 19, 2023 at 12:45PM

The “Pollock Limit”

Guest Post by Willis Eschenbach

Christopher Monckton recently put up a fascinating post entitled “The Final Nail in The Coffin Of “Renewable” Energy”. In it, he references the work of a man named Douglas Pollock who has proposed that there is a limit to the share of energy that a given renewable source can supply to the grid without battery backup. Further, Pollock says that the limit is the “capacity factor”, the fraction of the nameplate capacity that a renewable source can actually supply.

A rebuttal of this was put up as a post entitled “Sealing The Coffin Of “Renewable” Energy May Take A Few More Nails“, and Lord Monckton posted up a re-rebuttal entitled “Why Climate Skepticism Has Not Yet Succeeded“.

(Unfortunately, in the comments of the latter post I fear I waxed wroth when Christopher falsely accused me of being “openly and deliberately dishonest” … ah, well, I know that science is a blood sport, but I won’t take that from any man. However, I digress …)

While interesting, Lord Monckton’s posts are theoretical exercises. He has not provided any actual data to back them up. And when I looked at the data, I found a problem—most countries are well below the “Pollock limit”, and thus they can’t say anything at all about what happens when the windpower share of total electrical generation nears the Pollock limit.

Figure 1. Percentage of electricity from wind by country. Dotted line shows the global average wind capacity factor, which is the average fraction of the nameplate capacity that a wind turbine can actually supply in the real world.

However, a couple of countries have renewables shares that are above the Pollock limit. I picked Ireland as a test case. I got the annual information on the Irish electrical supply from the BP Statistical Review of World Energy. Here, on a year-by-year basis, is the annual windpower share of total Irish electricity versus the annual installed capacity (red/black line), as well as the annual capacity factor (yellow/black line).

Figure 2. Annual Irish wind share versus installed wind capacity, and wind capacity factor. 2022 values are from here and are preliminary.

There are several interesting insights from Figure 2. First, in contradiction to the proposed numerical value of the Pollock limit as being equal to the capacity factor, the wind power share of total Irish electricity is well above the wind capacity factor.

Next, it’s interesting how much the wind capacity factor varies year to year, swinging about ± 5% above and below the average value,

Next, in agreement with the concept of the Pollock limit, as the installed capacity has increased, the windpower share has moved more and more in parallel with the wind capacity factor.

Finally, the last four years are particularly interesting. From 2019 to 2022 Ireland added about 4 TWh of wind nameplate capacity … but the share of the total generated by wind only increased slightly. So it certainly appears as though it’s approaching some kind of limit.

These facts taken together suggest that there is a limit, as the Pollock limit states, but that in the Irish case, it’s higher than the capacity factor.

To visualize this in a different way, I looked at the annual windpower share as a percent of the annual capacity factor. Here’s that result (yellow line), along with theoretical calculations of what it should look like if the Pollock limit were 100% of the capacity factor (blue/black dashed line), and also what the real limit curve might be (red/black line).

Figure 3. Irish annual windpower share of total generation as a percentage of annual wind capacity factor (“Pollock limit”)(yellow), along with theoretical Pollock (blue-dashed) and possible real-world (red) limits.

In Figure 3, the curves show the situation when as the share of total generation approaches some physical li limit, each addition of wind capacity will make less and less difference as it slowly approaches the limit.

So … is there a limit?

The Irish data strongly implies that such a limit exists. And at least in the case of Ireland, it’s likely higher than the current value of 22.5% above the Pollock limit. Is it on the order of 40% above the Pollock limit as the speculative red curve illustrates? Perhaps. Perhaps not.

The problem is that we don’t really have enough data to say definitely what the limit is for Ireland, or even if such a limit exists. What’s shown in Figure 3 could just be a temporary slowdown … or not. A few more years should make things much clearer.

And that’s what I have found out about the Pollock limit. I have exactly zero idea why Ireland is able to exceed the Pollock limit. The claim is that, absent grid-scale batteries, the Pollock limit is a real physical limit equal to the capacity factor. But that is certainly not the case for Ireland. It’s already 22% above the capacity factor. Why? How?

The reason cannot be economics, because Christopher’s mathematical derivation in his original post doesn’t contain any economics-related terms. (Or alternatively, if economics is the reason, then Christopher’s math must be incomplete.)

All thoughts on that question considered, although perhaps not replied to. So many drummers, so little time …

My best to all, and thanks to Christopher, Lord Monckton for highlighting Pollock’s most interesting theory.

w.

As Always: When you comment please quote the exact words you are referring to. I can defend my own words. I cannot defend your (mis)interpretation of my words. Thanks.

A Footnote Worth Noting: I am an honest man. I do my very best to tell the truth as I know and see it. Yes, I have been wrong, and more than once. And when I’m wrong, I admit it. Heck, I even have a whole post called “Wrong Again“, and to cap that off, another post called “Wrong Again, Again — who does that but a scrupulously honest man?

But despite being wrong at times in matters big and small, wrong far more times in my life than I’d prefer, I do my honest best to not ever lie, shade the truth, misstate facts, or deceive people.

So I’ll thank everyone to avoid accusing me of any of those misdeeds, as it angrifies my blood. And if that happens, it may well result in me conjecturing about the probable species and personal hygiene of some of your recent progenitors … and it also would involve a significant chance of me politely inviting you to engage in anatomically improbable acts of sexual auto-gratification and self-congress …

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January 19, 2023 at 12:40PM

: Oil giant blames windfall tax as it cuts hundreds of jobs and investment

By Paul Homewood

Now there’s a surprise!

 

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Britain’s biggest oil and gas producer is planning to cut jobs as it scales back investment in response to the North Sea windfall tax.
Harbour Energy told staff in Aberdeen yesterday that they could be at risk of redundancy. It is cutting plans for exploration in light of the energy profits levy imposed in May after oil and gas prices soared in the wake of Russia’s invasion of Ukraine.
The levy increased the effective tax rate in the North Sea from 40 per cent to 65 per cent initially and was increased again to 75 per cent from the start of this year as the government sought to bring in extra income to fund help for consumers.
Harbour Energy, which employs about 1,500 people in Britain, has been one of the biggest critics of the levy and has said that shareholders are pushing for it to invest its money overseas. In December it said it was “reviewing investment levels and company-wide capital allocation” and would not bid for additional licences in the North Sea.
Yesterday it said: “Following changes to the energy profits levy, we have had to reassess our future activity levels in the UK. We will continue to support investment on the many attractive opportunities within our portfolio, but we are scaling back investment in other areas such as new exploration licensing. As such, we have initiated a review of our UK organisation to align with lower future activity.”
Harbour produced the equivalent of 194,000 barrels of oil a day in the North Sea in the first nine months of 2022, accounting for 94 per cent of its total production. It is easily the biggest producer in British waters.

Full story

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January 19, 2023 at 11:50AM

German electricity to be rationed as EVs and heat pumps threaten collapse of local power grids

By Paul Homewood

If the German grid cannot even cope now, what the hell are they going to do when there are ten times as many EVs and heat pumps?

 

 

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The Federal Network Agency is planning to ration the power supply to heat pumps and EV charging stations in order to protect the distribution grids from collapse. Charging times of three hours to charge electric cars will be allowed so that they can cover a distance of 50 kilometers.
Electric cars, heat pumps and private solar systems are booming. This is pushing the power grids in cities and communities to their limits.
An expert quoted by the “FAZ” warns that the local power grids are in danger of becoming the bottleneck for the energy transition. According to estimates, expanding it would cost a three-digit billion amount.
The Federal Network Agency wants to ration electricity for consumers to prevent a collapse in supply.
Electric cars are booming, as are heat pumps and private solar systems on roofs. This should only be the beginning of the energy transition in Germany. But the energy industry is already warning that the local power grids in cities and communities are reaching their performance limits. This has been reported by the “Frankfurter Allgemeine Zeitung” (FAZ). According to the report, the Federal Network Agency is planning to temporarily ration the power supply to heat pumps and charging stations in order to protect the distribution grids from overload.
A year ago, the network agency confirmed a “network development plan” in which up to seven million heat pumps in households are expected for 2035. So far there have been around one million heat pump systems.
Enormous growth is also expected in electric vehicles. For large network operators such as Eon, the current figures are a challenge. “The applications for the connection of new systems are going through the roof, and we assume that the growth rates will continue to grow,” said Eon board member Thomas König. According to the “FAZ”, the electricity supplier registered around 100,000 new charging stations for electric cars in 2021.
Local power grids threatened to become the bottleneck for the energy transition, Krzysztof Rudion, professor at the Institute for Energy Transmission and High Voltage Technology at the TU Stuttgart, told the newspaper. “The expansion of the distribution network simply cannot keep up with the boom in heat pumps, electric cars and solar systems.”
In order to arm the distribution grids, between 100 and 135 billion euros would have to be invested in Germany in the next decade and a half, the FAZ reports, citing a new study by the management consultancy Oliver Wyman.
Full story (in German)
Translation Net Zero Watch

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January 19, 2023 at 11:50AM