ENER The Huge Costs Of Electricity From Intermittent Sources

MinnesotaSmith

Membership Revoked
http://tinyurl.com/m5j7lw5

http://manhattancontrarian.com/blog...erating-electricity-from-intermittent-sources

March 29, 2017/ Francis Menton

Paying Attention To The Huge Costs Of Generating Electricity From Intermittent Sources

"Yes I sometimes feel lonely harping away at the huge costs of trying to make a functioning electrical grid out of intermittent wind and solar sources. For a few of my posts on the subject, see here, here, and here. Maybe with President Trump's dramatic move yesterday to back away from fossil fuel suppression under the guise of "climate" control, this whole thing will quickly fade away. But as of now, many states, not the least California and my own home state of New York, soldier on with so-called "renewable portfolio standards" for electric utilities, requiring ever increasing amounts of generation from the unreliable renewables.

I start from the proposition that, in the world of intentionally deceptive and fraudulent government data on virtually everything important (GDP, poverty, government debt, temperature records, etc.), it is still almost impossible to top the intentional deception that the government puts out on the subject of the cost of obtaining electricity from the intermittent sources. (OK, I have dubbed the temperature data tampering fraud the "Greatest Scientific Fraud Of All Time." But the fraud on the subject of the cost of wind and solar power is not technically a scientific fraud.) The idea as to the energy costs is to put out numbers purporting to show that wind and solar power are no more expensive than, or possibly even cheaper than, reliable and dispatchable sources like natural gas and coal. This is done by creating an arbitrary and useless concept known as the "levelized cost of energy" ("LCOE") that simply leaves out all of the massive extra costs that use of intermittent sources requires if you want a system that actually works 24/7/365 -- costs of things like backup from dispatchable sources, storage, extra transmission costs, and extra costs from running backup plants in a mode of constantly cycling up and down. Thus the government's annual Energy Information Agency report, most recently issued in August 2016, shows the LCOE from wind turbines as much less than nuclear and just slightly higher than natural gas -- and actually cheaper than natural gas once you take into account the tax credits! Their chart of comparative costs on page 6 at the link does not even deign to put a cost on new coal facilities. Hey, this was the Age of Obama! Coal was to be verboten!

The LCOE concept at best addresses the costs associated with adding one facility of any one of the generation types to our massive existing infrastructure. But suppose that instead of adding a few more wind turbines, we actually propose to take wind-generated electricity up to 30%, or 50%, or even 90% of all generation. What then? EIA's LCOE numbers do not remotely address that question. Back of the envelope calculations at some of my previous posts (linked above) suggest that such an effort could multiply the cost of electricity by a factor of five, or ten, or even more. Moreover, this would be one of those unbelievably giant engineering projects -- orders of magnitude bigger than, say, the California bullet train -- that inevitably have massive cost overruns. Can somebody other than yours truly please pay attention to this subject?

A couple of things in the last week indicate that a few people are beginning to wake up at least a little. But unfortunately "little" is the operative word.

Last week I attended the International Conference on Climate Change in Washington, put on by the Heartland Institute. One of the panels addressed the cost of alternative sources of energy, and one of the three panelists on the panel addressed, at least to some extent, the incremental costs of adding wind and solar sources to an electric grid. That panelist was Mary Hutzler, who appears to be employed by a think tank called the Institute for Energy Research. Ms. Hutzler has actually done research aimed at correcting some of the more egregious omissions from the EIA's LCOE calculations, including a fairly detailed report from 2015 titled "The Levelized Cost of Electricity from Existing Generation Resources." Her presentation at the Conference is available at the Heartland site here. Comparing her presentation to the Report, it seems that most of the presentation came from the Report, including many of the charts.

Frankly, I found Ms. Hutzler's presentation extremely disappointing. The basic thing that she and co-authors had tried to do in the Report was to add in to EIA's LCOE numbers some obvious adjustments to account for things that EIA just fraudulently left out, even at today's low levels of generation from intermittent sources -- things like capacity factor adjustments to the actual capacities that wind turbines have achieved, adjustments of the assumed lifetime of wind turbines to match real experience, and attribution to the cost of power from wind of at least some of the costs of backup fossil fuel power. With these adjustments, wind power suddenly becomes about 50% more expensive than combined cycle natural gas, according to a chart on page 26 in the Report.

Fair enough. But what additional costs would be needed if we tried to make a fully functioning electricity system where the electricity itself comes out of predominantly wind, say 70% or 90%? That question was not addressed by Ms. Hutzler in her presentation, nor is it addressed in the Report. Nor was it clear from the presentation that that question was not addressed. You had to get the underlying Report and study it. And when you study it you find that it basically addresses scenarios where wind turbines are matched with gas plants of similar "capacity," so that the gas plant can cycle up and down as the wind blows less and more. Those scenarios will never get the generation from wind up much above 30%. To get higher you will need to avoid calling on the fossil fuel backup as much as possible. You will thus need multiple times excess wind turbine capacity, plus some combination of vastly increased transmission capacity or storage capacity or both. To find out how much you will have to pay for four times excess capacity in wind generation, tens of millions of Teslas worth of batteries, and massive new transmission capacity (and, of course, full fossil fuel backup -- just in case!), you will have to look elsewhere.

Well, you could try looking in the new report just out from the UK's Department of Business, Energy and Industrial Strategy, written by a consultancy called Frontier Economics. The report has long been known to be in the works, and supposedly was to address the "total system costs" of variable renewable electricity generators. It had been expected out about a year ago, but then ran into a long unexplained delay, and finally came out last Friday. Oh, according to the press release from the Global Warming Policy Foundation, "The study is not only very late, but contains no quantitative estimates of additional system costs."

What? Wasn't that the whole point? It gets worse. They include in the released material some peer review comments, from which one can infer that quantitative estimates of those additional costs were in the drafts but have been deleted from the final. Here is the comment from GWPF, titled "Is the UK Concealing 'Very High' Renewables System Cost Estimates." Excerpt:

After an unexplained delay of a year since completion the UK’s Department of Business, Energy and Industrial Strategy (BEIS) has published (24.03.17) a report by Frontier Economics on the total system costs of uncontrollably variable renewable generators, a topic of crucial importance in understanding the cost-effectiveness of current climate policies. The study is not only very late, but entirely qualitative, and contains no quantitative estimates of additional system costs per megawatt hour (i.e. £/MWh), figures which would normally be considered the principal output of such work. However, examination of the peer reviews, which are published with the study, reveals that an entire table of numerical cost estimates, some of which were described by the external reviewer as “very high”, were in fact present in the version sent out for comment in mid 2015, but have been subsequently removed. This does not smell right and BEIS should release the original draft.

If you are starting to get the impression that you are being defrauded, you are right. Kudos to the GWPF for joining in the small and still nascent efforts to hold the crooks to account. But, when will any government put out a remotely honest effort to calculate the real cost of the mostly-wind-and-solar generation system that they are busy trying to force on the people? Probably, not before the entire current crop of bureaucrats in the field have been fired and/or jailed. "
 

Dobbin

Faithful Steed
How about a free enterprise model - yunno - one where there is a market and each producer sells to the market WITHOUT SUBSIDY and at the market level? Whatever that may be?

It then becomes a "survival of the fittest economically." If an energy source becomes non-productive to run, then it is shut down.

This was the original concept of "grid pricing" where depending on what generation was running, the grid had an instantaneous price - a price that was "leveled over time" by the transmission utilities who then used that number to send you your monthly bill. And in doing so made sure that THEY worked as efficiently as possible on the high-lines/wires so as to maximize their profit.

It WAS a system which encouraged efficiency. This modus could even be extended to include pricing/earned return by independent generators such as large merchant plants, large windfarm or solar farms, or even the small power producer with only a couple panels.

"Net metering" was/is a concept where the average grid price was leveled and used as a return to net energy producers.

But even "demand metering" works - it just leaves the producers with a larger gamble. (and the consumers with larger savings - sometimes - sometimes not.)

BUT, alas, for that "we have to do something for the children" social attitude of power pricing politics. With the emphasis on politics. And the "political feel good" about energy from sun or wind which some STILL imagine as "free energy." (The energy may be free, but the machinery and its capital investment to collect it is the expensive part.)

Like how to leave your children an energy mill-stone around their neck? Which the subsidy - which becomes codified into law - will most certainly.

There is no free - only less expensive or more expensive in energy.

Only dynamic interaction with a free marketplace will assure your children of the most reliable, most cost effective, and most long lasting power sources.

And any other attitude is delusion.

"Time value of money" I think its called.

Dobbin
 

MinnesotaSmith

Membership Revoked
Wind farms...

Those commonly produce mainly tax credits, not so much electricity on a net basis. I had already previously read that utilities routinely have to constantly keep running generators with loads equal to that electricity they have to buy from wind farms, the latter are so unreliable. Watch how it's common that when the tax credits run out, the wind farms shut down.
 

West

Senior
For me it's obvious that the initial cost (including the inferstructure) plus the maintanice on the giant turbines is a net loss in the long run. Yes in small setups and for specific spot use they can pay for them selves then save energy from the grid. But from what Ive been able to read they never include the cost of initial set up and continued maintenance into the math of how much the electricity cost that the wind turbins actually produce.
 

WFK

Senior Something
I love it when someone finally puts numbers on alternate energy cost that has to be available 24/7 yearlong!

One coal fired power plant can easily produce 900 Megawatts. One windmill can 5 Megawatts when there is wind.
180 windmills have to be spread out a little, right? I have never seen a wind farm where ALL wind turbines were running.
I guess we have to put in more than 180 to make up for that.
It is dishonest to bake subsidies into cost comparisons: it just means that somebody else pays.
 

Blacknarwhal

Let's Go Brandon!
Intermittent sources are great for backup power supplies, but not for running a grid. It'd be good to have intermittent stuff to augment a grid--we only have so much coal and natural gas, after all--but it can't replace a grid.

We do need better technology on this front, but technology needs cash to create. We need better batteries to store electricity and better panels and turbines to create it, and the investment for this has to come from somewhere.
 

Doc1

Has No Life - Lives on TB
My thought has long been that the only economically feasible method of generating alternative energy is to do it on an individual basis and with the recognition that each location will have its own distinct requirements. My sunny Gulf Coast location is probably better-suited to solar than your windswept Midwest homestead where wind turbines might work. This is old stuff. Before the Rural Electrification Administration ran mains power to the remoter areas (as far back as the 1930s), many American farms had their own generation capability. Yes, it was expensive, but the advantages of having any electricity outweighed the expense.

It is relatively easy and inexpensive to fit most homes with a modest alternative energy system. The first thing to do is set up a simple (and smallish) battery/charge controller/photovoltaic/inverter system which will offer modest 12 VDC and 115 VAC capability. Modern LED lighting draws very little current and solid state components (such as charge controllers) have decreased dramatically in cost in recent years. This could easily run basic household lighting and perhaps a computer, radio and a small freezer. Cost of components should be between $500 - $2000 and the owner would be light years ahead of his 19th Century fore bearers. The real expenses begins when you try to design a system that will run high draw loads such as air conditioning and resistance heating. I'm not aware of any system that allows that to be done inexpensively.

People who are independence - minded should consider running their own small system, while still maintaining mains service. Additionally, look at alternative heating, lighting and cooking systems such as wood and propane, which are independent of the grid. That way, even in the event of mains failure, you should still enjoy most of your household systems.

Best regards
Doc
 

Blacknarwhal

Let's Go Brandon!
My thought has long been that the only economically feasible method of generating alternative energy is to do it on an individual basis and with the recognition that each location will have its own distinct requirements. My sunny Gulf Coast location is probably better-suited to solar than your windswept Midwest homestead where wind turbines might work. This is old stuff. Before the Rural Electrification Administration ran mains power to the remoter areas (as far back as the 1930s), many American farms had their own generation capability. Yes, it was expensive, but the advantages of having any electricity outweighed the expense.

It is relatively easy and inexpensive to fit most homes with a modest alternative energy system. The first thing to do is set up a simple (and smallish) battery/charge controller/photovoltaic/inverter system which will offer modest 12 VDC and 115 VAC capability. Modern LED lighting draws very little current and solid state components (such as charge controllers) have decreased dramatically in cost in recent years. This could easily run basic household lighting and perhaps a computer, radio and a small freezer. Cost of components should be between $500 - $2000 and the owner would be light years ahead of his 19th Century fore bearers. The real expenses begins when you try to design a system that will run high draw loads such as air conditioning and resistance heating. I'm not aware of any system that allows that to be done inexpensively.

People who are independence - minded should consider running their own small system, while still maintaining mains service. Additionally, look at alternative heating, lighting and cooking systems such as wood and propane, which are independent of the grid. That way, even in the event of mains failure, you should still enjoy most of your household systems.

Best regards
Doc

A very good point! If each household had a small power generation system, we could probably cut back our use of coal and nuclear by half at least. That might well give us time enough to finally find technologies that could replace coal and oil and such.

We forget these things are finite, and we SHOULD be looking for alternatives. But we need to be USING them even as we look to replace them.
 

hiwall

Has No Life - Lives on TB
Cost of components should be between $500 - $2000 and the owner would be light years ahead of his 19th Century fore bearers.
While that is true, very very few would ever do that. Grid power is way too cheap and reliable to invest that money into something that you would be unlikely to get any kind of benefit from.
Many put the free (leased) solar panels on their roofs but they gain very little from doing so and if/when the grid goes down so does their solar power.
Large solar installations put a big strain on the grid. On a sunny day they produce maximum power and then a cloud floats over and that power is suddenly cut by 60% or more. Then five minutes later the clouds float away and the power instantly ramps up to full again.
Many houses here in AZ are off-grid and it works well for them. But they are only off-grid because there is no grid available where their houses are. It is WAY cheaper to use grid power.
Some buy/build emergency solar power "generators" in case they have a power grid failure. The trouble with these is that the batteries degrade whether you are using them or not. Then after a few years when they are needed the solar panels are in great shape but the batteries are not.
There are many issues with solar and wind power, whether for home use or commercial use.
 

LightEcho

Has No Life - Lives on TB
I would like to see a zero-point energy system. I suspect they exist but are hidden from the market. Just think of the turmoil the oil industry would see if these got to market. Then a real home power system could happen.

As for solar, it is an expensive venture. If you want to keep your current standard of living, a $25,000 investment would get you a little better than half way there. It does not make economical sense. But it is about the only long term grid-down option for many.
 

Publius

TB Fanatic
Basically comes down to that its to costly to do it on a large scale and turn a profit!
Example it you use $100 a month now, under the full solar-wind system to produce 240V/120VAC you will have to pay at lest $500 a month for that same $100 dollars worth to make the system pay for it self and pay for up keep and replacement and turn a profit. Most of these windmills are huge and cost a fortune to make and erect and most cannot not pay for it self before it need serious repair that runs into many $1000 to fix.
 
Last edited:

mistaken1

Has No Life - Lives on TB
Who needs facts and figures to drive policy when we have fickle voters with easily manipulated feeling to guide our decisions.
 

mistaken1

Has No Life - Lives on TB
Intermittent sources are great for backup power supplies, but not for running a grid. It'd be good to have intermittent stuff to augment a grid--we only have so much coal and natural gas, after all--but it can't replace a grid.

We do need better technology on this front, but technology needs cash to create. We need better batteries to store electricity and better panels and turbines to create it, and the investment for this has to come from somewhere.

We cross the oceans today in hours because of high tech computerized sailing ships .......

We need an airplane for the energy production industry. I would much rather have seen all of the money spent subsidizing intermittent, feel-good power sources be used developing commercial fusion power generation.
 

Blacknarwhal

Let's Go Brandon!
We cross the oceans today in hours because of high tech computerized sailing ships .......

We need an airplane for the energy production industry. I would much rather have seen all of the money spent subsidizing intermittent, feel-good power sources be used developing commercial fusion power generation.

Doesn't really matter what form it takes; we've just got to get more away from the finite fuel systems.
 

hiwall

Has No Life - Lives on TB
It has been speculated that the big windmills cost more in energy to manufacture, ship, install, and maintain than they will produce in their lifetime.
 

shane

Has No Life - Lives on TB
Agree with most all of the above, if it takes subsidies and tax credits to come into existence, it's not economically viable, yet.

For personal use of AE, Job #1 is always first minimizing your loads you'd have on that solar, wind, water, bio, whatever it is.

Better designs, more insulation, sealing up against air infiltration, more efficient appliances, etc., all these should come first, IMO.

Good news is, PV solar panels have never been cheaper, just bought a bunch of 290 watt panels for less than 30 cents/watt here...

http://sunelec.com/

- Shane
 

Doc1

Has No Life - Lives on TB
Hiwall and others are correct that AE is not an economical proposition compared to mains power. No argument from me at all on that point - but considering that this is largely a prep board, members should consider the other, non-financial benefits of increasing self-sufficiency. It's hard to put a conventional dollar value on that. Many of you have been around long enough to remember my Hurricane Katrina odyssey and our Bug-Out-Vehicle in the form of a converted (diesel) school bus. We didn't have any solar capability, but I had installed high output automotive alternators in two of our diesel vehicles, installed a substantial battery bank, several inverters and had barrels of extra diesel fuel. This represented an "alternative" energy system by any yardstick. Though I sent my family out of state to live with relatives early on, I lived out of that bus, on our property, with only the power I generated for three months.

Yes, it took three months before grid power was restored to our area! The important take away lesson from that experience was that I lived like an absolute king compared to 99.99% of other folks in the area who did not take these measures. I had lights, power for my well pump, a cold (small) freezer, a working microwave and propane cooking. I even had a fan and a small air conditioner which I ran from time to time in the blistering August and September heat.

All members here who are even slightly interested in prepping should start to develop their own AE system(s). You don't need to eschew the luxury of grid power. Enjoy it while you have it! I certainly do. Just start creating parallel systems that can kick in when you lose your mains power. The value of this goes far beyond a dollars and cents equation. Even the smaller, home-made systems can easily run LED lights, a radio and perhaps a fan. These things will prove to be a godsend to you and your family in times of need. Learn a little about DC systems and design your system so that you can seamlessly add on to it as time and funds become available.

There are a lot of ways to do this cheaply and if anyone is interested, I'd be happy to start a new thread devoted to how to do it.

Best regards
Doc
 

hiwall

Has No Life - Lives on TB
Hiwall and others are correct that AE is not an economical proposition compared to mains power. No argument from me at all on that point - but considering that this is largely a prep board, members should consider the other, non-financial benefits of increasing self-sufficiency. It's hard to put a conventional dollar value on that. Many of you have been around long enough to remember my Hurricane Katrina odyssey and our Bug-Out-Vehicle in the form of a converted (diesel) school bus. We didn't have any solar capability, but I had installed high output automotive alternators in two of our diesel vehicles, installed a substantial battery bank, several inverters and had barrels of extra diesel fuel. This represented an "alternative" energy system by any yardstick. Though I sent my family out of state to live with relatives early on, I lived out of that bus, on our property, with only the power I generated for three months.

Yes, it took three months before grid power was restored to our area! The important take away lesson from that experience was that I lived like an absolute king compared to 99.99% of other folks in the area who did not take these measures. I had lights, power for my well pump, a cold (small) freezer, a working microwave and propane cooking. I even had a fan and a small air conditioner which I ran from time to time in the blistering August and September heat.

All members here who are even slightly interested in prepping should start to develop their own AE system(s). You don't need to eschew the luxury of grid power. Enjoy it while you have it! I certainly do. Just start creating parallel systems that can kick in when you lose your mains power. The value of this goes far beyond a dollars and cents equation. Even the smaller, home-made systems can easily run LED lights, a radio and perhaps a fan. These things will prove to be a godsend to you and your family in times of need. Learn a little about DC systems and design your system so that you can seamlessly add on to it as time and funds become available.

There are a lot of ways to do this cheaply and if anyone is interested, I'd be happy to start a new thread devoted to how to do it.

Best regards
Doc

I fully agree and I do have my own small system. I would have a larger system but we have decided to move and I will wait until we complete the move before adding additional Solar.
 

Garryowen

Deceased
Regarding all those windmills, they are an incredible eyesore around this part of IL. They are just plain ugly! And they are putting them up by the hundreds. They get subsidies to put them up, subsidies to buy the units, and depreciation over five years. Then they can swap their units with another company, and get to depreciate them again over five years, IIRC. The wind companies can basically make their money without ever selling any power.

I took a class in alternate energy a number of years ago, and we did the math on wind energy. I'm sure things have improved considerably, but when we did the math, the break-even point was about at the estimated end of the life of the unit. Compared to investing the cost of the machine, we found that one could invest the cost and cover his cost of buying his power without touching the principal.

When it comes time to decomission these wind machines, it will probably amount to a large portion of the original cost, or the companies will simply declare bankruptcy and let the landowners worry about a 300 foot tall piece of scrap.
 
Top