Archive for November, 2009

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Energy storage questions and answers

November 17, 2009

Michael Giberson

Earth2tech offers “3 Questions for 3 Energy Storage Experts.” The three questions:

  • Why is energy storage so essential to the new energy economy?
  • What is the most important use or implementation of energy storage?
  • Which energy storage innovation do you most believe in?

Not exactly hard-hitting, investigative journalist-type questions, but useful in inspiring some informative chatter about what is going on in energy storage.

For my tastes, the answers to the first question over-emphasized the importance of energy storage to the respondent’s vision of the future energy economy. I’d be better sold by an answer that emphasized the potential to reduce costs and improve services to energy consumers.

Of course, the question primes for a wishful-thinking answer.  The difference between me and the three energy storage experts – other than my obvious lack of energy storage expertise – is that I wish for different kinds of things.

To me the answer to “Why is energy storage so essential to the new energy economy?” is that better energy storage eventually allows the withering away of the state’s specialized regulatory apparatus for the electric power business.

Yeah, I know, I’m a dreamer. ;)

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Hi again; some reading recommendations for the holiday season

November 16, 2009

Lynne Kiesling

Hi! How are you? I’m well, thanks. Long time no chat.

Frankly, I’ve been tired, and have had too many work obligations stretching me in too many disparate directions. This has been bad for my KP writing, because much of what is happening with electricity regulation and policy right now is ripe for economic analysis, but what I want to say is too involved for the mental bandwidth I currently have available. Couple that with the uncivilized and vitriolic turn that online economics discussion has taken in climate, financial markets, etc. (e.g., the links that Jonathan Adler put in his “Climate McCarthyism” post at Volokh; for the record, I agree almost entirely with Jonathan on this subject), and my generalized anger about current government policy and its likely directions, and I haven’t had much that I wanted to contribute here.

Also, much of what has captured my passion and attention (over the past several months, not just the past month since my last post) involves cycling and triathlon training; I could go on and on, but probably in ways that would bore everyone! One thing, though: I have been reading Chi Running to improve my running form and speed, and now I am reading Christopher McDougall’s Born To Run. I have not been bitten by the barefoot running trend, but McDougall’s tale of the running prowess of Mexico’s Tarahumara Indians is a really, really good read. McDougall weaves a great tale, part anthropology, part travel narrative, part adventure story about the personalities who participate in ultramarathon races in the US. Even if you’re not a runner you may enjoy his well-told tale.

Along these lines … as it’s getting toward the end of the year and we are all looking for gifts and for engaging reading for the holidays to divert us from the strains and stresses of too many long days traveling and visiting with family, a few different “best book” lists have caught my eye. The first list is the candidates for the Man Booker Prize, which was given in October to Hilary Mantel for Wolf Hall, her novel about Henry VIII’s right-hand man Thomas Cromwell. I happened to be in London the weekend before the prize was given, and I caught a review show on BBC in which three reviewers gave their recommendations and synopses of each book, and they all sounded well worth reading. Mantel’s writing in particular is right up my alley because I love historical fiction that is both literary (with good character development) and reflects accurate and nuanced historical research; her earlier novel set in the French Revolution, A Place Of Greater Safety, also sounds great. In both books, the reviewers indicate that Mantel couples history research with character development that amounts to hypotheses about the motives and roles of historical characters who are opaque to us now.

Another Man Booker finalist was A.S. Byatt’s The Children’s Book, a historical narrative set in late-19th century England. I have been a Byatt fan for a long, long time; I think of her writing style as chromatic, because much of the time she writes in such lyrical detail that I see colors in my mind (and no, I don’t think I have synaesthesia!). The only exception is her Babel Tower, which didn’t hang together or cohere at all. Other than Babel Tower, Byatt is a master of the complex, interwoven, often time-shifting parallel plot structure.

Byatt’s book (and Wolf Hall) featured on both of the “best of” lists that I saw. First, Amazon’s best 100 books of 2009. This list is pretty fiction-heavy, but also includes some memoirs, some history, some biography, and other nonfiction. Through looking at this list I discovered that Colson Whitehead has a new novel, Sag Harbor, that is set in 1985 and includes a lot of references to music that is near and dear to my heart! Whitehead’s The Intuitionist was a great read, and I have John Henry Days but haven’t read it yet. Another book on the list that stood out to me is Terry Teachout’s Pops: A Life of Louis Armstrong. Terry Teachout is the wonderful reviewer and cultural commentator from the Wall Street Journal, and Louis Armstrong is, well, Louis Armstrong. ’nuff said.

The Amazon list also includes Michael Ruhlman’s Ratio: The Simple Codes Behind The Craft Of Everyday Cooking, which I’ve been meaning to get for some time. If you like to cook but are nervous about straying from pre-determined recipes, Ruhlman’s book can help unleash your culinary creativity. And Born To Run is on there too, at #85. All in all, I was really impressed with the Amazon list; almost all of the books on it that I haven’t read caught my attention.

The other good “best of” list I saw was The Atlantic’s top 25 books of the year, which leaned in a more historical and nonfiction direction. I love reading history. Love, love. Their top recommendation is Burlingame’s Abraham Lincoln: A Life, weighing in at 2,024 pages. Another one that caught my eye was the revised edition of Parker’s The Thirty Years’ War.

I’ve been reading a lot of Adam Smith, David Hume, and analyses of Smith and Hume this fall, and I’m looking for a different direction for the holidays. The KP Spouse has read Pride, Prejudice, and Zombies, which he classifies as an entertaining and diverting read. So my draft reading list for the holidays is Pride, Prejudice, and Zombies; Wolf Hall; The Children’s Book; Sag Harbor, A Place Of Greater Safety; John Henry Days. I’m not sure I’ll be able to finish all of that by January, but I look forward to trying!

What are your (fiction and nonfiction) reading recommendations?

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Smart meter business is booming

November 16, 2009

Michael Giberson

Infused by the $3.4 billion in federal grants handed out last week, utilities will ramp up production and installation of digital smart meters by more than 19 percent, with 250 million predicted to be rolled out by 2015, according to a new report out today from Pike Research. (GreenBeat)

So the smart meter business is booming. (Let’s just hope that for your business, the smart meter boom is not like that experienced by this Bakersfield, California company.)

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Reduced air emissions due to wind power: Not as much as you might think

November 16, 2009

Michael Giberson

A pair of posts at Master Resource (part I, part II) explore the degree to which variable wind power leads to lower efficiency and increased air emissions when natural gas generators are used to provide energy balancing and back-up reserves (and except when and where sufficient hydropower is available, natural gas generation usually is the low cost provider of these services).  Depending on assumptions, Kent Hawkins finds that adding wind power could result in no reduction of fossil fuel use and perhaps even an increase in related emissions.

The results are more dramatic than found by Warren Katzenstein and Jay Apt and published in Environmental Science & Technology, but the difference is primarily in the degree of the effect and not the nature of the issue.  (Katzenstein and Apt found under certain circumstances that wind and solar power added to a natural gas-based power system acheived about 80 percent of expected CO2 reductions but no more than half of the expected NOx reductions.)

NOTE: Environmental Science & Technology has published a comment on the Katzenstein and Apt article by Andrew Mills and co-authors and then a reply by Katzenstein and Apt.  The Mills et al. comment asserts that the methodology used overstates the need for backup power supplies and so at best indicates a possible upper bound on indirect emissions.  The comment suggests that geographic diversity of widespread wind power facilities helps to smooth out some of the variability from individual sites, so studies based on a few units exaggerate the actual effects in larger power systems.  In addition, unit commitment and dispatch practices by power system operators can accommodate some variability without contributing to added emissions.

In the reply, Katzenstein and Apt say the central issues are, “how are the fill-in generators to be dispatched?” and “what are the emissions from those generators in that dispatch method?”  They note that Mills et al. adopt a different approach than the original article, but with either approach their are incremental emissions associated with the dispatch of the required fill-in generators.

UPDATE: The November/December issue of IEEE’s Power and Energy Magazine is devoted to wind power issues. Included is “Wind Power Myths Debunked,” which claims among other things, “the notion that wind’s variations would actually increase system fuel consumption does not withstand scrutiny.” Unfortunately, subscription required so the link only goes to an abstract. The article also reports another analysis saying that adding up to 20 percent wind may extract an efficiency penalty of no more than 7 percent (i.e., emission reductions may be 7 percent lower than expected).

One thing clear from these discussions is that answers to questions about the effect of wind power on emissions will depend very much on what else is going on on the power system to which the wind power is added.

UPDATE 2009/12/04: Kent Hawkins responds to some of these issues in another post up today at Master Resource.

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“Hayek’s legacy … is still brightly promoted”

November 15, 2009

Michael Giberson

Al Roth, at Market Design, points out an inadvertently amusing column from The Guardian a few weeks back, “Our speechless outrage demands a new language of the common good.”

The writer, Madeleine Bunting, asserts that economists of a certain sort (namely, Friedrich Hayek and his associates at Chicago in the 50s) came to dominate political economy with an essentially hollowed-out conception of humanity, the effects of which “now lies in ruins all around us.” Bunting says we now need a new language and framework with which to articulate our public outrage, but we shouldn’t look to economists to provide it. Instead, she said, we should consider political philosophy, mentioning two recent books from Harvard professors on justice.

The amusing part? As Roth observes, one of the books is by an economist, Amartya Sen.

The other book is Michael Sandel’s Justice, which we’ve discussed a little here before in the context of price gouging. It is Sandel that gets all of the attention in Bunting’s column, perhaps why Bunting overlooked Sen’s professional training and long career in economics.

I also found it amusing that Bunting confidently recommends an approach she claims not to understand clearly. Really. As in, “We need to be looking to political philosophy. I’m as hazy on the subject as the next person, but [in Sandel's book] I see great insight into our current predicaments.”

I’m not sure that it quite comes across as the ringing endorsement it was intended to be.

[NOTE: My title is drawn from Bunting's essay. Here are the first few paragraphs, which well illustrate her style:

There was a coterie of economists in the 50s in Chicago intensively working on a set of ideas that were widely regarded at the time as marginal. They had little influence on mainstream public debate for another 20 years, and their ideas didn't win votes for nearly 30. But the story is now familiar of how Friedrich Hayek and his associates produced the intellectual roadmap for both Thatcher and Reagan, and the notions cooked up in Chicago – such as efficient market hypothesis – have dominated political economy for the last 30 years. Hayek's legacy, which now lies in ruins all around us, is still brightly promoted, but its claims to fairness and freedom have been utterly discredited.

The institutions that so benefited from Hayek's legacy – in the financial sector – seem oblivious to the crisis of legitimacy they have stumbled into. That's because the public outrage they prompt has no language or intellectual framework to make sense of itself, or to shape a new settlement. But it's only a matter of time.

But don't look to economists to get us out of this hollow mould of neoliberal economics and its bastard child, managerialism – the cost-benefit analysis and value-added gibberish that has made most people's working lives a mockery of everything they know to value. Economics developed brilliant technical skills for monitoring and managing complex economies, but an interpretation that allied them to grossly crude understandings of human nature came to dominate.]

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You can’t always get what you want: Or, why oil production declines with rock and roll

November 13, 2009

Michael Giberson

From the “too good not to share” category: “The Hubbert Peak Theory of Rock, or, Why We’re All Out of Good Songs,” from the pop culture scrutineers at Overthinking It.

A few years ago, Rolling Stone magazine added fuel to the music snobbery fire with its “500 Greatest Songs of All Time” list.  Anyone casually paging through the list would notice that the bulk of the list was comprised of songs from the 60’s and 70’s, just like the music snobs always say.

I, however, wasn’t content with the casual analysis.  So I punched the list into Excel, crunched some numbers, and found an interesting parallel between the decline of rock music quality and, of all things, the decline in US oil discovery and production:

Oil production and quality rock and roll

(Sources: Rolling Stone Magazine, US Department of Energy)

Looks like a correlation to me. More analysis offered at the link.

(HT to Tom Fowler at NewsWatch: Energy.)

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New meters enabling new rate designs by competitive power suppliers in Texas

November 13, 2009

Michael Giberson

Many companies offer retail electric power contracts in the competitive retail portions of Texas, but for a long time the contracts have been kind of, you know, boring: either fixed rate or variable, if fixed then for 1 or 2 years. Renewable content offerings provided a little color, ranging up to 100 percent. Toss in some prepay options and differences on early termination fees, and that about covers the range of options.

Now smart meters, being installed in both the Houston and Dallas-Fort Worth areas, are enabling more diverse rate designs. Elizabeth Souder at Texas Energy and Environment mentioned TXU Energy and Reliant had begun offering time-of-use rates. Souder reports that for the Oncor distribution area (D-FW area):

TXU charges 8.9 cents per kilowatt hour for electricity used off peak. Power used on peak, 1 p.m. to 6 p.m. from May to October, costrs 24.3 cents.

TXU time-of-use customers also get a free thermostat that shows how much power they are using. Customers may decline the thermostat and get a $75 Visa gift card instead.

Tom Fowler of NewsWatch: Energy reports that for the CenterPoint Energy distribution area:

In Houston, Reliant has three levels April thru October: 11.6 cents off-peak, 13.4 cents standard and 15.6 cents on-peak. November thru March it’s 11.6 cents off-peak and 13.4 cents.

These rates are just some of the first offerings to take advantage of the new metering capabilities, more and probably better offerings to come.

Since May, Green Mountain Energy has been offering a “Renewable Rewards” program, a privately offered net metering rate for residential customers with distributed generation capability. Participation requires a meter capable of two-way metering (are the standard “smart meters” being installed capable?) and of course there are limits. But the first 500 kwh per month of excess energy is bought back at the customer’s full retail price, and any additional energy is bought at 50 percent of retail.

And unlike net metering elsewhere, imposed on regulated utilities and funded via cross subsidies from other ratepayers, participation in Renewable Rewards is voluntary; the Green Mountain Energy program is a privately-provided competitive offering.

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Electricity and water-understand the relationship that is causing problems

November 13, 2009

Michael Giberson

In parts of the United States (and worldwide), limited availability of water is limiting the ability to build new power plants. While the water-energy connection has been of interest for some time, particularly in more arid areas, the issue has seemed to be more in the news of late. (I.e., this news article on the water requirements of two proposed solar thermal power plants in California.)

John V. Anderson explains the details of the relationship that is causing problems in “Electricity and Water– Can We Have Both?

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Tres Amigas presentation

November 12, 2009

Michael Giberson

Tres Amigas CEO Phil Harris recently gave a presentation about the proposed project to interconnect the Eastern, Western and Texas grids to folks at the Electric Power Research Institute:

Cover page - Tres Amigas presentation - 2009 November

Tres Amigas LLC presentation to EPRI - 2009 November 5

ADDED: Technology Review, “Superconductors to Wire a Smarter Grid,” explains the project with a little more description of the role played by superconducting technology than offered in earlier newspaper accounts (or blog posts).

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The key to Arizona’s energy future

November 12, 2009

Michael Giberson

Via the Goldwater Institute in Arizona, this announcement of an event happening today, November 12 in Phoenix:

Today three experts on electricity restructuring will be at the state Capital to talk about how Arizona could begin a restructuring process and how restructuring could encourage the use of more renewable energy. The discussion is open to the public and we encourage you to join us:

Date:         Thursday, November 12, 2009
Time:        10:00 a.m.-11:30 a.m.
Location:  Arizona State House of Representatives, Hearing Room 3, 1700 W. Washington, Phoenix

See also this Goldwater Institute-sponsored report, “Opening the Grid: How to Recharge Arizona’s Electricity System for the 21st Century,” which we’ve lauded here before as “outstanding in nearly every way.”

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