Showing posts with label alternative energy. Show all posts
Showing posts with label alternative energy. Show all posts

Saturday, April 2, 2016

SE4All Highlights Plans for Implementing SDG 7

25 March 2016: The Special Representative of the UN Secretary-General (SRSG) for Sustainable Energy for All (SE4All), Rachel Kyte, highlighted challenges to achieving Sustainable Development Goal (SDG) 7 (Ensure access to affordable, reliable, sustainable and modern energy for all).

Briefing UN Member States and civil society, she also provided an update on the SE4All initiative's plans for supporting implementation of the Goal.

Kyte emphasized that Goal 7 has three “pillars,” addressing energy poverty, technological advancement, and investment in energy efficiency. Stressing the interlinked nature of the Goal, she said the first pillar, addressing energy poverty, is essential to leaving no one behind, noting that the electricity access gap undermines education, productivity and economic growth, while the gap in access to clean cooking fuels is detrimental to health and gender inequality. On technological advancement, Kyte noted the past decade's reductions in the cost and complexity of renewable energy, which makes on-shore wind, solar photo voltaic, and other technologies more competitive with fossil-based energy sources. On energy efficiency, she said greater investment has made it possible to provide basic electricity services using much less power.

Despite this positive progress, Kyte warned that global economic trends have slowed the momentum for electrification, renewables, efficiency and clean cooking. She said the global energy transition is not taking place at a sufficient pace to meet the temperature goal set out in the Paris Agreement on climate change, or the broader development goals expressed in the 2030 Agenda.

Kyte also stressed that the financial needs to achieve SDG 7, which are estimated at over US$1 trillion annually, will need to come from both private and public sectors. She highlighted the importance of small-scale, private investments to develop renewable energy in many African countries.

On the role of the SE4All initiative in supporting the achievement of SDG 7, Kyte said the Forum's 2017 meeting will assess progress and provide substance for the High-level Political Forum on sustainable development (HLPF) and the UN system as a whole in its review of progress towards the SDGs. In the meantime, SE4All is developing a framework for addressing challenges faced by Member States in achieving SDG 7. Member States will have opportunities to provide input on this framework throughout May 2016, Kyte said, and the SE4All Advisory Board will consider the framework at its meeting, on 15-16 June 2016. [Event Webcast] [SE4All Website]

 

Thursday, March 24, 2016

Caribbean Green Economy Project

Within the Caribbean, there is a growing awareness of the need for a new economic paradigm for inclusive and sustainable development, in order to deliver solutions for the most pressing challenges which are made worse by international economic and environmental crises.

In the backdrop of the limited diversification of the countries’ economies and their dependence on natural resources, green economy offers a viable option to increase competitiveness and resilience of the region’s economies and merge prosperity and growth for all with sustainability.

"I commit my Government to working assiduously with the Social Partnership to ensure that the measures indentified in Barbados’ Green Economy Scoping Study, which can contribute to a more prosperous and environmentally sensitive Barbados, will be implemented expeditiously" said Freundel J. Stuart, Prime Minister of Barbados.

“We see a green economy not only as the area of renewable energy, but we see the green economy as a means of providing new opportunities for our people in St. Kitts,” said Earl Asim Martin, Deputy Prime Minister of St. Kitts and Nevis.

"We are also showing that it is possible to create a better, environmentally sustainable national economy without compromising our citizens’ legitimate aspirations for increased prosperity," said Bharrat Jagdeo, Former Prime Minister of Guyana

Effective green economy strategies and programmes must address barriers to change that affect the whole Caribbean region. In searching for alternatives to “business-as-usual”, emphasis should be placed on redirecting investments and creating economic incentives that lead to sustainable development and poverty eradication.

UNEP, in cooperation with the CARICOM Secretariat and with financial support of the European Union, is supporting the region through a Caribbean Green Economy Initiative.

The outcomes of project, as well as the experiences and lessons learned during its implementation should offer ideas and opportunities for scaling up green economy transition in other countries and regions especially in island states in the Pacific, Africa and elsewhere.

Please download the project flyer on green economy in the Caribbean here.

 

Tuesday, March 8, 2016

A Take-No-Prisoners World of Oil

It’s evident that we’re still on a planet where oil rules. The question increasingly is: What exactly does it rule over? After all, every barrel of oil that’s burned contributes to a fast-approaching future in which the weather grows hotter and more extreme, droughts and wildfires spread, sea levels rise precipitously, ice continues to melt away in the globe's coldest reaches, and... well, you know that story well enough by now. In the meantime, Planet Earth has a glut of oil on hand and that, it turns out, doesn’t mean -- not for the major oil companies nor even for the major oil states -- that the good times are getting ready to roll.

Of all the powers struggling with that oil glut and the plunging energy prices that have gone with it, none may be more worth watching than Saudi Arabia. While exporting its own extremists and its extreme brand of Islam from Afghanistan to Syria, and lending a decades-long hand to the destabilization of the Greater Middle East, that kingdom has itself been a paragon of stability. Nothing, however, lasts forever, and so keeping an eye on the Saudis is a must. That’s especially so since the latest version of the royal family has also made what might be called the American mistake (with the backing of the Obama administration, no less) and for the first time plunged the Saudi military directly into a typically unwinnable if brutal war in neighboring Yemen.

Combine the destabilizing and blowback effects of wars that won’t end, including the Syrian one, and of oil prices that refuse to rise significantly and, despite the kingdom’s copious money reserves, you have a formula for potential domestic unrest. Already the royals are cutting their domestic subsidies to their own population, pulling billions of dollars in aid out of Lebanon, and exploring a possible $10 billion bank loan.

As TomDispatch’s invaluable energy expert Michael Klare suggests today, when oil prices began plummeting in 2015, the Saudis launched an “oil war of attrition,” imagining that others would be devastated by it (as OPEC partners Nigeria and Venezuela already have been) but that the royals themselves would emerge triumphant.

Should the unimaginable happen, however, and should the kingdom itself begin to come unglued in a Greater Middle East that is increasingly the definition of chaos -- watch out. Tom


Energy Wars of Attrition
The Irony of Oil Abundance
By Michael T. Klare

Three and a half years ago, the International Energy Agency (IEA) triggered headlines around the world by predicting that the United States would overtake Saudi Arabia to become the world’s leading oil producer by 2020 and, together with Canada, would become a net exporter of oil around 2030. Overnight, a new strain of American energy triumphalism appeared and experts began speaking of “Saudi America,” a reinvigorated U.S.A. animated by copious streams of oil and natural gas, much of it obtained through the then-pioneering technique of hydro-fracking. “This is a real energy revolution,” the Wall Street Journal crowed in an editorial heralding the IEA pronouncement.

The most immediate effect of this “revolution,” its boosters proclaimed, would be to banish any likelihood of a “peak” in world oil production and subsequent petroleum scarcity. The peak oil theorists, who flourished in the early years of the twenty-first century, warned that global output was likely to reach its maximum attainable level in the near future, possibly as early as 2012, and then commence an irreversible decline as the major reserves of energy were tapped dry. The proponents of this outlook did not, however, foresee the coming of hydro-fracking and the exploitation of previously inaccessible reserves of oil and natural gas in underground shale formations. More

Sunday, January 31, 2016

3 Ways Wind and Solar Can Continue To Grow In a 21st-Century Grid

Earlier this year, MIT researchers were the latest in a series of analysts to raise alarm about the perceived limitations of solar PV’s continued growth. In short, these analysts propose that variable renewables will depress wholesale prices when they run, thereby limiting their own economic success.

These concerns have garnered coverage in other venues (including Vox, Greentech Media, and The Financial Times), leading observers to suggest that the future prospects for renewables may be dim.

But are these concerns really justified, or do they rely on outdated assumptions about the grid and about electricity markets? We argue that these critiques, assuming a static grid and unchanging market mechanisms, can be used to make any innovation look bad. However, more integrative assessments of a least-cost, clean, and reliable power system of the future will factor in high fractions of variable renewables, along with more-efficient markets (and usage) and new technologies to integrate these resources seamlessly and resiliently.

In this article, we argue that falling wholesale prices is a good problem to have, and that concerns about economic limitations ignore remedies available from supply-side evolution, demand-side resources, and updated market mechanisms. As the world gathers in Paris for COP21, these messages are as important as ever for charting and pursuing a low-carbon clean-energy pathway.

Understanding the "Problems"

There has been increasing concern that variable renewables such as wind and solar may face an upper limit to adoption in the U.S. grid. The argument is that large amounts of variable renewables will create excess supply concentrated at the particular times of day when they produce. The notorious "duck curve" is an example of this—the duck-like shape of a particular, daily demand curve modeled for California’s grid when the production of large amounts of solar photovoltaics (PV) is netted out.

Critics argue that this technical characteristic of variable renewables, specifically PV—a daily generation pattern that is not perfectly matched with load—can have economic consequences for all forms of generators, especially the renewable resources themselves. Large amounts of renewable resources can sell a glut of power when it’s available, offsetting production from higher-marginal-cost resources (like gas-fired power plants). Since power prices are generally set by the resources with the highest marginal cost that clear in the market, additional generation from renewables tends to lower market prices.

This "merit order effect" often decreases revenues for fossil generators. This impact has been particularly dramatic in Europe, where generation from costly-to-run thermal plants during the daily solar peak was formerly very profitable for fossil generation owners. PV has decreased energy prices so much there that the top 10 EU utilities lost half their market capitalization. However, the merit order effect also means that variable renewables themselves may also earn lower profits as their adoption rises. A common conclusion is that variable renewables can play only a modest role in power production, marginalized by declining wholesale value at higher adoption levels.

The Other Half of the Thought Experiment: Three Factors That Can Accelerate Renewable Energy Adoption

Analysts who have put forth these arguments have elaborated only the first half of a microeconomics thought experiment. The problems they hypothesize hinge upon the laws of supply and demand, but omit important aspects of both, drastically overstating the perceived "problems." Let’s see how.

1) Supply is changing holistically, not incrementally

Many of these thought experiments consider adding just a single supply resource (often solar PV) without considering many of the other supply-side changes happening at the same time. In reality, solar PV, wind, and natural gas are all joining the supply mix in a big way at the same time; the first two are often complementary and the third is dispatchable, so together, they can do a lot to mitigate the "duck curve" often portrayed.

At the same time, retirements of uneconomic assets will provide a countervailing buoyancy to wholesale prices. For example, even though old, dirty plants often have low production costs, they may exit the market anyway due to high costs of compliance upgrades or other fixed costs that erode their profits. The resulting less-abundant supply can cause the marginal supply curve to contract in quantity, leading to higher prices and higher profits for renewables and remaining fossil generators—unless demand drops too, as it’s doing in the industrialized world.

2) Demand is increasingly flexible, not fixed

Analysts arguing that renewables’ variability will limit their growth often assume perfectly efficient wholesale markets, but unchanged retail markets and fixed demand profiles. This incomplete and asymmetrical treatment ignores the emerging capability to harness the demand side of the equation. For example, people like and respond to time-varying pricing programs, and these programs are starting to roll out at scale. The electricity demand of many appliances including electric water heaters and electric vehicles is inherently flexible without disrupting the service provided. Furthermore, new business models (from both utilities and third parties) are driving this convenient flexibility by providing seamless solutions, unobtrusively, conveniently, and without requiring customers to become part-time energy traders.

These factors together increase flexibility of demand, an important low-cost resource, and enable what is the most natural response to changing prices in an efficient market where consumers find ways to use and benefit from cheap electricity from wind and solar. In other words, as renewables reduce energy prices during certain times of day, demand flexibility allows customers to shift demand to those times, which will both reduce energy prices at other (peak) times and raise the price paid to renewables during times when they produce the most.

3) Storage makes renewables dispatchable, not variable

Diverse supply and flexible demand will play a big role in easing renewable integration concerns but, to the extent that issues remain, the continuing decline in battery prices and the range of values available from batteries means that remaining variability issues can probably be addressed at modest incremental costs. At the retail level, this can lead to increasing self-balancing of distributed generation (we’ve already seen this in Germany and Australia, and it may affect utility business models in the U.S.). At the wholesale level, as variable resources begin to saturate the market, high-priced hours will incentivize developers to begin to look at storage. Already, storage is seen as a near-term replacement for peaking generation, and batteries installed for peaking capacity can also be used to smooth the economic impact of renewables on power prices.

Storage is already a common feature of concentrating solar power (via molten salt), and becoming an increasingly common feature of solar PV. For example, the all-renewable winning bids in the latest Chilean auction for unsubsidized electricity included not just solar power as low as $65/MWh in the daytime, but also nighttime solar power—via thermal or electrical storage—for $97/MWh at night. With storage, variable renewables become dispatchable, and dispatchable renewables do not have nearly the same merit order effect as variable ones. To be sure, our recent demonstration that 13 kinds of benefits of behind-the-meter distributed storage can make batteries cost-effective does not necessarily make them competitive with the many other ways to achieve grid flexibility, but similar reasoning suggests an abundant range of options for averting the problems that narrowly constrained models imply.

Whole-System Thinking Illuminates a Path Towards Least-Cost Outcomes

Analysts arguing that renewables will economically limit their own continuing adoption generally leave out the considerations listed above—and more importantly, these arguments are built on incremental thinking, assuming that today’s grid and markets are fixed and only one thing changes (e.g., PV or wind-energy market share). A more holistic, integrative, and accurate analysis would start with the ultimate objectives (reliable, resilient, and least-cost energy services), and promote a whole-system design to get there promptly.

With this perspective in mind, the characteristics of renewable energy that have caused so much hand-wringing—variable output and near-zero marginal costs of production—simply add to the list of design considerations for a market design that rewards efficient investment. Given supply diversity, demand flexibility, and emerging technologies like storage, variable renewables are unlikely to face any practical limit to growth even under current grid paradigms and market structures.

Nothing Sacred About Existing Markets

But even if renewables do face adoption limits in current markets, there is no reason we have to keep these markets the way they are. Wholesale power markets are largely a product of historical coincidence, formed out of the paradigms of the last century in which thermal power plants competed only with each other. Modern market design that reflects the realities and changing resource mix of the 21st century grid, being pioneered in Germany already, can go a long way towards aligning incentives for least-cost resource mixes. Particularly, incorporating behind-the-meter distributed energy resources and flexible loads into energy markets—as is being done in California and New York—can bring new capabilities and a refined level of control to the grid.

An Integration Challenge?

Evolving supply, flexible demand, storage, and updated markets can remove the limits to increasing renewable energy on the grid. In a later post, we will highlight how these same levers can address the common concerns—and misunderstandings—about "integration costs" of renewable energy. For example, a much-hyped recent paper claims that high-penetration renewables must incur steeply rising integration costs. But that turns out to be an artifact of extremely restrictive assumptions in the models used, combined with an assertion that competitive harm to thermal-plant incumbents is an economic cost of the renewables that beat them.

Renewables Are Here To Stay

The "problems" with renewables often brought up by analysts may be real in isolation, but are overstated when the full range of options is considered. Indeed, these are good problems to have: they’re the natural forces of supply and demand acting to send signals to market participants to diversify resource choice, incentivize demand flexibility, and invest in storage and other emerging technologies. Arguments against wind and solar PV conclude that these resources will need greater subsidies to survive in the "duck curve" era. But instead, we can tap the latent power of supply diversity, demand flexibility, storage, and market design to level the playing field for all resources, rather than clinging to the premises of the 20th century grid. Protecting the old system is far inferior to enabling the new one so that innovation can flourish, entrepreneurs can thrive, and all options can compete fully and fairly. Source

 

 

Monday, January 25, 2016

Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS) Baseline Report and Assessment

Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS) Baseline Report and Assessment

http://www.worldwatch.org/cserms/baseline-report

The Caribbean region stands at a crossroads, faced with several critical challenges associated with the generation, distribution, and use of energy. Despite the availability of tremendous domestic renewable energy resources, the region remains disproportionately dependent on imported fossil fuels, which exposes it to volatile oil prices, limits economic development, and degrades local natural resources. This ongoing import dependence also fails to establish a precedent for global action to mitigate the long-term consequences of climate change, which pose a particularly acute threat to small-island states and low-lying coastal nations.

While onerous, these shared challenges are far outweighed by the region’s tremendous potential for sustainable energy solutions. By acting on this potential, the Caribbean can assume a leading role in the global effort to combat climate change while promoting sustainable regional economic and societal development. Representing a geographically, culturally, and economically diverse cross-section of the region, the Caribbean Community (CARICOM) provides the ideal platform to construct the legislative and regulatory frameworks necessary to achieve this transition.

CARICOM represents 15 diverse member states: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. Although these states vary widely, they face many common energy challenges.

CARICOM has already begun to play a crucial role in the regional transition to sustainable energy. Recognizing the need to develop a coordinated regional approach to expedite uptake of renewable energy and energy efficiency solutions in the Caribbean, CARICOM adopted its regional Energy Policy in 2013 after a decade in development. The policy charts a new climate-compatible development path that harnesses domestic renewable energy resources, minimizes environmental damage, and spurs social opportunity, economic growth, and innovation.

To translate these intentions into action, the CARICOM Secretariat commissioned the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS), designed to build on existing efforts in the region and to provide CARICOM member states with a coherent strategy for transitioning to sustainable energy. In this C-SERMS Baseline Assessment and Report, the Worldwatch Institute provides an analysis of the region’s current energy and energy policy situation, evaluates regional potential for renewable energy and energy efficiency solutions, and recommends regional targets for energy sector transformation in the short, medium, and long terms.

Download Report: http://www.worldwatch.org/system/files/C-SERMS_Baseline_10.29.2015.pdf

 

 

Wednesday, November 25, 2015

Solar panels empower indigenous people in Canada's north

BEHCHOKO, Northwest Territories, Canada, Oct 26 (Thomson Reuters Foundation) - Daniel T’seleie, an indigenous activist in Canada’s far north, is campaigning to help his people wean themselves from a worrying dependence on imported fuel and food, recover old traditions and win greater autonomy from the government.

Daniel T’seleie

In a region with nearly 24 hours of daylight in the summer, one way to help meet his goals seems obvious: more solar power.

“Right now a lot of communities in the Northwest Territories are dependent on diesel-generated electricity, along with store-bought food,” said T’seleie in an open air interview near Behchoko, a clutch of small wooden houses nestled along the shores of Great Slave Lake.

Standing beside spindly jack pine trees growing from thin soil on the hard granite rock that covers much of northern Canada, T’seleie sees renewable energy as the force which could respond to the region’s complex, intertwined challenges.

Canada’s north is particularly vulnerable to global warming, which is making it harder for indigenous people to continue their traditions of hunting and trapping on the land, as ice sheets melt and caribou herds collapse.

And although indigenous people want what they call a “nation to nation” relationship with the Canadian government, they largely depend on it for diesel fuel in order to keep warm.

By harnessing renewable energy, T’seleie believes indigenous communities could gain more freedom from the state and revive ancient cultural practices, while doing their part to combat climate change which is hitting them particularly hard.

“Any way that communities can produce energy at a local level produces independence,” said the 34-year-old, sporting a baseball cap and jeans, the informal dress common in Canada’s rugged north.

SOLAR SURGE

The Northwest Territories has seen a surge in the use of solar power over the last five years, after the regional government spent about $50 million to boost renewable energy production and improve efficiency, said Jim Sparling, the territory’s senior climate change manager.

“On a per capita basis, we are second only to Ontario (Canada’s most populous province) for installed solar capacity,” Sparling told the Thomson Reuters Foundation in the territorial capital Yellowknife.

The huge and sparsely populated northern territory has fewer than 50,000 residents, about half of whom are indigenous, many from the Dene Nation, a tribal people who traditionally hunt caribou.

Solar power still represents a fairly small part of its energy consumption, though the level is rising, said Sparling.

Private individuals and companies in the territory are also installing solar panels on their own to try and bring down their energy bills and cut dependence on imports, he said.

That combination of rising use of renewable and better energy efficiency has allowed the province to hold its climate-changing emissions stable at 2005 levels despite a rise in the population and a growing economy, Sparling said.

The territorial government plans to be part of a Canadian delegation going to Paris for a U.N. climate summit in December, aimed at reaching a new global agreement on climate change.

Average temperatures in parts of the northern territory have already risen more than 3 degrees from pre-industrial levels, Sparling said.

Scientists say average world temperatures should not rise more 2 degrees if the world is to avoid the worst disasters associated with global warming.

“We have to scale up the ambition,” Sparling said. “We are very vulnerable if this problem gets worse.”

SWITCH OVER

North of the Arctic Circle, the village of Colville Lake, with fewer than 200 residents, is in the midst of a major switch from diesel power to solar.

Last year, the mostly indigenous community faced weekly power outages. But after a new solar power system was set-up, the area is now nearly self sufficient in electricity production during summer months when the sun shines almost round the clock.

It still needs to import fuel for the winter, but officials believe the new investments will lead to a 30 percent drop in diesel consumption, helping the environment and saving money.

Other small northern towns are looking to mimic the project to save cash and allow people to maintain traditional lifestyles by being less dependent on expensive imports.

“In the last 10 to 15 years there has been a huge push from (indigenous) communities to try and support themselves,” said Ashlee Cunsolo Willox, an indigenous studies professor at Cape Breton University and a researcher on climate change impacts.

As global warming leads to the thinning of Arctic sea ice and changes in the habits of northern animals, the region’s indigenous inhabitants are struggling to adapt their lifestyles while holding onto old traditions, she said.

The caribou population has collapsed in parts of the territory in a development experts link to climate change, and melting ice makes it harder for hunters to navigate the land in search of other animals to hunt.

“The north is the fastest changing geography in the world,” Cunsolo Willox said in a phone interview. “There is a lot of concern that traditional knowledge and skills will be lost with climate change.”

OLD TRADITIONS, NEW TECHNOLOGIES

Building greater self sufficiency - including by adapting cleaner, cheaper energy - may be a strategy for holding onto the old ways, activists say.

T’seleie, a law school graduate, said he previously tried to work through Canada’s court system and treaty negotiations to win greater autonomy for his people, after what he considers years of colonial abuses.

In the 1920s, Canadian colonial administrators declared the government’s aim was to “get rid of the Indian problem” by ending indigenous cultural practices, corralling the population into reserves and forcing aboriginal children into grim residential schools.

Canada’s government signed treaties with many indigenous groups, often in return for political support during periods of conflict, granting them access to parts of the land they once controlled and other benefits.

But many legal scholars and historians say the government did not honor those agreements in good faith.

After becoming disillusioned with the legal process, T’seleie decided working towards greater self-sufficiency in food and energy was the best way forward.

T’seleie is part of the first generation of indigenous people not forced to attend residential schools usually run by religious groups in other parts of Canada which took children from their parents, and forced them to speak English rather than native languages as a means of assimilation.

Sexual and physical abuse were rife at the institutions, the government now admits following years of litigation.

Health experts and indigenous leaders believe the legacy from these schools - including that many parents never learned how to raise children, as they were taken from their own parents - partially explain high rates of substance abuse, family violence and poverty in some indigenous communities.

Allowing people to stay on their ancestral land, continuing hunting and trapping practices, and learning stories and traditions from community elders are key to overcoming these problems, said Cunsolo Willox.

To support traditional practices and allow indigenous communities to live off the land as they have done for centuries, they need access to renewable energy, T’seleie said.

“A huge aspect of our lives, culture and language is lost when we can’t be on the land,” he said. “For me, that’s one of the biggest threats of climate change.” More

 

Thursday, September 17, 2015

How Demand Flexibility Can Help Rooftop Solar Beat Demand Charges in Arizona

The debate over rooftop solar has grown increasingly contentious, pitting solar PV companies against utilities in many parts of the country. But nowhere has the debate been more heated than in sunny Arizona, where many customers have flocked to rooftop solar as prices have come down in recent years. Most recently, utility Salt River Project (SRP) has introduced a demand charge for solar customers.

Already common among commercial rate structures but much less so among residential, a demand charge is a component of the overall bill based on a customer’s maximum demand (kW) each month, in addition to more-traditional charges based on total consumption (kWh).

SRP argues that it needs to recover costs from its solar customers that they impose on the grid through high demand. The utility position is that solar customers use the grid in much the same way as non-solar customers, and impose similar costs. Yet traditional rates coupled with existing net energy metering (NEM) riders mean that solar customers pay much less per month than other customers. SRP’s new rate is designed to recover the difference by imposing a charge on a customer’s peak demand each month, which generally occurs after the sun sets.

However, solar companies and others claim that this pricing structure is unfair. The largest PV developer in the U.S., SolarCity, has sued the utility, arguing that SRP is practicing anti-competitive behavior. In any case, whether the new rate is fair or unfair, it means that the PV market is growing much more slowly in SRP than it was a year ago; interconnect requests have More

 

 

Tuesday, September 8, 2015

Fortis anti-green position reopens other issues

A recent press release from Canadian-owned utility Fortis TCI, contradicting an earlier pronouncement by the Rufus Ewing-led government that the company was considering a change in part from inefficient diesel generation to renewable or green energy, has reopened debate on a number of related issues, including the cost of electricity in the TCI and the relationship between successive TCI governments and Canadian firms.

Fortis TCI headquarters in Providenciales

Fortis Inc. is the largest investor-owned gas and electric distribution utility in Canada. Its regulated utilities account for 90 percent of total assets and serve more than 2.4 million customers across Canada and in New York State and the Caribbean – Belize, Cayman Islands and the TCI.


In 2011, the government of Belize expropriated the approximately 70% ownership interest of Fortis Inc. in Belize Electricity Ltd (BEL) an integrated electric utility and the principal distributor in Belize.

Fortis still owns Belize Electric Company Limited (BECOL), a non-regulated hydroelectric generation business that operates three hydroelectric generating facilities in Belize. There is an ongoing controversy over a secret and possibly unenforceable agreement between the then government of Belize and Fortis over alleged pre-emption rights in relation to national waterways.

In 2013, in opposing a proposed $1.5 billion acquisition of CH Energy Group in New York, a local grassroots group pointed to what they say is Fortis’ poor record in dealing with projects in Belize and British Columbia and citing "misinformation and a lack of trust" on the part of Fortis.

Meanwhile, Fortis TCI has possibly the highest cost of electricity in the western hemisphere and five times higher than those charged by the closest mainland utility Florida Power and Light (FPL). Further, the company returns to its Canadian parent a profit averaging $1,000 per year per household from a customer base numbering only 9,000 consumers, which equates to more than $80 per month per household in pure profit.

Notwithstanding the extraordinarily high profit margins enjoyed by Fortis, the company is permitted to import supplies and equipment duty free and constantly upgrades its distribution system in order to lower its long term costs.

While the internal operating statements of Fortis TCI have yet to be made public, it has long been suspected that the utility uses accelerated depreciation to write off capital expenditures quickly and therefore reduce their publicly reported profits. US accounting practices require that capital equipment and assets be depreciated more closely in line with the life expectancy of the asset, reducing the annual write off and therefore showing a more accurate, and possibly higher net profit.

The latest Fortis policy on renewable energy sources puts a halt to the hope of generating power from wind energy from the prevailing trade winds or from solar panels.

Fortis defended its new position on a reported failure of German green power efforts. However, Germany is a northern European country with far less solar energy available, which in spite of huge labour costs and social benefits is now expected to raise its electricity rates to less than $0.09 per Kwh or just 1/6th the cost of Fortis power.

Fortis purchased the former assets of Provo Power Company (PPC) in 2006, three years after the PNP came to power in a 2003 by-election. At the time of the purchase, then premier Michael Misick denied any knowledge of the buyout saying he had nothing to do with the buyout and could not forecast the fate of the employees. However, the stamp duty on the purchase would have yielded the country upwards of $9 million and was subject to negotiation with the Misick government and undoubtedly Misick himself.

At the time of the buyout, PPC was charging $0.26 per Kwh and now Fortis charges an additional surcharge that almost doubles the old rate to $0.51 per Kwh.

Last year, during the first year of the newly elected Progressive National Party (PNP) government, Fortis purchased the Grand Turk power company, Turks and Caicos Utilities from an American firm.

Following the initial Fortis buyout in 2006, the Misick government, which then included current premier Dr Rufus Ewing as director of medical services, proceeded to enter into a hugely expensive and controversial healthcare contract with another Canadian company, Interhealth Canada.

Interest in the Misick connection with Canada has also been revived by some so far unconfirmed but informed reports that he may be a person of interest so far as the Canadian authorities are concerned.

Speculation that the Canadians may have had a hand in Misick’s travel back to the TCI following his recent extradition from Brazil has led to questions as to whether this was designed to protect or pursue significant political and other figures in Canada.

In fact, Canadian interest in the TCI has been around since 1917, when then Canadian prime minister Robert Borden suggested that Canada annex the islands. In 2004, Nova Scotia’s three parties voted unanimously to let the TCI join their province if they ever became part of Canada.

Similar discussions were held by former premier Misick.

As recently as last year, Canadian MP Peter Goldring wanted to revive the proposal for the TCI to join Canada, following the return of elected self-government in the territory in November 2012.

Goldring has been a consistent advocate of increased cultural and economic ties between the TCI and Canada for more than ten years but the idea was dropped when Britain imposed direct rule in 2009, following a commission of inquiry that uncovered widespread and systemic government corruption in the territory.

Goldring, who has visited the islands several times, said they would fit in nicely with the rest of Canada.

But Canada stands to gain more than simply a vacation destination from such a union, he said: "From my perspective, certainly it goes far behind sun and sand. South Caicos Island, for example, is on a deep water channel. It could be readily developed into a deep-water port, which would give Canada tremendous advantage for trans-shipment throughout the entire region."

He added the islands would be a strategic location from which to increase engagement with Haiti and Cuba.

 

 

Saturday, August 22, 2015

The Peak Oil Crisis: A $4 Trillion Hole

Last week reporters at the Wall Street Journal sat down and did some arithmetic.

Tom Whipple

They looked at how much oil was selling for in the spring of 2014 (over $100 a barrel); looked at what it is selling for today (under $50); and concluded that if prices stay low for the next three years, the global oil industry and the countries it finances will be out $4.4 trillion in revenues. As these oil companies, nationalized and publically traded, will be producing roughly the same amount of oil in the next few years, the $4 trillion will have to come mostly out of profits or capital expenditures.

This is where the problem for the future of the world’s oil supply comes in. The big oil companies, especially those that export much of their production, have been doing quite well in recent years. National oil companies have earned vast profits for their political masters. Publically traded ones have developed a tradition of paying out good dividends which they are loathe to cut.

This leaves mostly capital expenditures on exploring for and producing more oil in coming years to take a dive as part of the $4 trillion revenue hit. Even if oil prices of $50 a barrel or less do not continue for the next three years, this still works out to a revenue drop of $1.5 trillion a year or about three times the planned capital expenditures of some 500 oil companies recently surveyed.

The International Energy Agency just came out with a new forecast saying that while current oil prices have the demand for oil products increasing rapidly, there is still so much over-production that the oil glut is expected to last for another year or more before supply/demand comes back into balance. The return of Iran to unfettered production would not help matters.

In looking at the next five years there are several trends or major issues that are likely to impact the supply and demand for oil. First is the recent price collapse that no longer makes it profitable to start projects to produce new oil, most of which now comes from deepwater, tar sands, or shale oil fields and is far more expensive to produce than "conventional" oil. As a result, investment in new oil production projects has dropped substantially in the last year and is likely to fall further.

On the demand side of the equation China is the biggest unknown. For the last 30 years the Chinese have enjoyed unprecedented economic growth, but recently the "world’s factory" has not been doing as well. Its government has been thrashing around wildly trying to stimulate growth and fend off a collapse in its stock market. Some believe China is a huge economic bubble that is about to collapse taking much of the world with it, and obviously reducing its ever-increasing demand for more oil.

The other 800-pound gorilla looming out there is climate change. Except for the drought in California and the storm that flooded New York a few years back, much of America and China for that matter has not been hurt badly enough by anomalous weather to reach an agreement that stopping climate change is the number one priority of all of us. Reports of "feels like" 159°F coming out the Middle East this summer have little impact on those convinced that climate change is a hoax. Should the effects of climate change worsen in the near future to the point that "do something before life on earth becomes impossible" becomes the majority perception of the issue, consumption of fossil fuels could be severely restricted. Although not widely appreciated, there do seem to be viable alternatives to fossil fuels waiting to be exploited.

The violence in the Middle East has grown worse in recent years. Although oil production in some areas has been restricted by geopolitics and violence, most of the oil continues to be produced. It is useless to talk about the next five years in the Middle East; however, we should keep in mind that there are at least a half dozen confrontations going on in the region that could morph into situations where oil production becomes more restricted.

When we net this all together, what do we have? Conventional wisdom currently says that oil prices are likely to be closer to $50 a barrel than to $100 for the next year or more. Capital spending on new production to offset declining production from existing oilfields is likely to drop still further leaving us in the situation where depletion may exceed the oil coming from new wells or fields. This is the argument that those who believe that we are at or near the all-time peak of world oil production about now are using.

The International Energy Agency says that the demand for the cheaper oil is rising rapidly, that production of shale oil currently is falling and the rest of world’s production is relatively static so we should be seeing oil prices rising again by 2017. This is where the turning point in the history of oil production could occur. In recent history rising prices have led oil producers to increase drilling for new oil production again. However the next time around, as mentioned above, there are new factors that may come into play. Will China be increasing its demand for oil in another two years? Will the Middle East still be exporting as much oil, and producing oil given the turmoil and the need to increase air conditioning? Will the world have decided the time has come to clamp down seriously on carbon emissions?

If global oil production does reach some kind of a peak this year and is lower in 2016, can it recover to reach new highs in the years following? Anything from inadequate investment stemming from persistently low oil prices to a major conflict in the Middle East could keep production from rebounding to new all-time highs. We are living in interesting times and just could see peak oil before we realize it. More

 

 

Sunday, August 2, 2015

Obama to Unveil Tougher Climate Plan With His Legacy in Mind

WASHINGTON — In the strongest action ever taken in the United States to combat climate change, President Obama will unveil on Monday a set of environmental regulations devised to sharply cut planet-warming greenhouse gas emissions from the nation’s power plants and ultimately transform America’s electricity industry.

The rules are the final, tougher versions of proposed regulations that the Environmental Protection Agency announced in 2012 and 2014. If they withstand the expected legal challenges, the regulations will set in motion sweeping policy changes that could shut down hundreds of coal-fired power plants, freeze construction of new coal plants and create a boom in the production of wind and solar power and other renewable energy sources.

As the president came to see the fight against climate change as central to his legacy, as important as the Affordable Care Act, he moved to strengthen the energy proposals, advisers said. The health law became the dominant political issue of the 2010 congressional elections and faced dozens of legislative assaults before surviving two Supreme Court challenges largely intact.

"Climate change is not a problem for another generation, not anymore," Mr. Obama said in a video posted on Facebook at midnight Saturday. He called the new rules "the biggest, most important step we’ve ever taken to combat climate change."

The most aggressive of the regulations requires the nation’s existing power plants to cut emissions 32 percent from 2005 levels by 2030, an increase from the 30 percent target proposed in the draft regulation.

That new rule also demands that power plants use more renewable sources of energy like wind and solar power. While the proposed rule would have allowed states to lower emissions by transitioning from plants fired by coal to plants fired by natural gas, which produces about half the carbon pollution of coal, the final rule is intended to push electric utilities to invest more quickly in renewable sources, raising to 28 percent from 22 percent the share of generating capacity that would come from such sources.

In its final version, the rule retains the same basic structure as the draft proposal: It assigns each state a target for reducing its carbon pollution from power plants, but allows states to create their own custom plans for doing so. States have to submit an initial version of their plans by 2016 and final versions by 2018.

But over all, the final rule is even stronger than earlier drafts and can be seen as an effort by Mr. Obama to stake out an uncompromising position on the issue during his final months in office.

The anticipated final climate change regulations have already set off what is expected to be broad legal, legislative and political backlash as dozens of states, major corporations and industry groups prepare to file lawsuits challenging them.

Senator Mitch McConnell of Kentucky, the Republican majority leader, has started an unusual pre-emptive campaign against the rules, asking governors to refuse to comply. Attorneys general from more than a dozen states are preparing legal challenges against the plan. Experts estimate that as many as 25 states will join in a suit against the rules and that the disputes will end up before the Supreme Court.

Leading the legal charge are states like Wyoming and West Virginia with economies that depend heavily on coal mining or cheap coal-fired electricity. Emissions from coal-fired power plants are the nation’s single largest source of carbon pollution, and lawmakers who oppose the rules have denounced them as a "war on coal."

"Once the E.P.A. finalizes this regulation, West Virginia will go to court, and we will challenge it," Patrick Morrisey, the attorney general of West Virginia, said in an interview with a radio station in the state on Friday. "We think this regulation is terrible for the consumers of the state of West Virginia. It’s going to lead to reduced jobs, higher electricity rates, and really will put stress on the reliability of the power grid. The worst part of this proposal is that it’s flatly illegal under the Clean Air Act and the Constitution, and we intend to challenge it vigorously."

Although Obama administration officials have repeatedly said states will have flexibility to design their own plans, the final rules are explicitly meant to encourage the use of interstate cap-and-trade systems, in which states place a cap on carbon pollution and then create a market for buying permits or credits to pollute. The idea is that forcing companies to pay to pollute will drive them to cleaner sources of energy.

That new rule also demands that power plants use more renewable sources of energy like wind and solar power

Mr. Obama tried but failed to push through a cap-and-trade bill in his first term, and since then, the term has become politically toxic: Republicans have attacked the idea as "cap and tax."

But if the climate change regulations withstand legal challenges, many states could still end up putting cap-and-trade systems into effect. Officials familiar with the final rules said that in many cases, the easiest and cheapest way for states to comply would be by adopting cap-and-trade systems.

The rules take into account the fact that some states may refuse to submit plans, and on Monday, the administration will also unveil a template for a plan to be imposed on such states. That plan will include the option of allowing a state to join an interstate cap-and-trade system.

The rules will also offer financial benefits for states that choose to take part in cap-and-trade systems. The final rules will extend until 2022 the timeline for states and electric utilities to comply, two years later than originally proposed. But states that begin to take actions to cut carbon pollution as early as 2020 will be rewarded with carbon reduction credits — essentially, pollution permits that can be sold for cash in a cap-and-trade market.

Climate scientists warn that rising greenhouse gas emissions are rapidly moving the planet toward a global atmospheric temperature increase of 3.6 degrees Fahrenheit, the point past which the world will be locked into a future of rising sea levels, more devastating storms and droughts, and shortages of food and water. Mr. Obama’s new rules alone will not be enough to stave off that future. But experts say that if the rules are combined with similar action from the world’s other major economies, as well as additional action by the next American president, emissions could level off enough to prevent the worst effects of climate change.

Mr. Obama intends to use the new rules to push other countries to commit to deep reductions in their own carbon emissions before a United Nations summit meeting in Paris in December, when a global accord to fight climate change is expected to be signed.

Mr. Obama’s pledge that the United States would enact the climate change rules was at the heart of a pact that he made last year with President Xi Jinping of China, committing their nations, the world’s two largest carbon polluters, to substantially cut emissions.

"It’s the linchpin of the administration’s domestic effort and international effort on climate change," said Durwood Zaelke, president of the Institute for Governance and Sustainable Development, a research organization. "It raises the diplomatic stakes in the run-up to Paris. He can take it on the road and use it as leverage with other big economies — China, India, Brazil, South Africa, Indonesia."

While opponents of the rules have estimated that compliance will cost billions of dollars, raise residential electricity rates and slow the American economy, the administration argues that the rules will save the average American family $85 annually in electricity costs and bring additional health benefits by reducing emissions of pollutants that cause asthma and lung disease.

The rules will be announced at a White House ceremony on Monday and signed by Gina McCarthy, the Environmental Protection Agency administrator. While the ceremony is scheduled to take place on the White House’s South Lawn, officials said it might be moved indoors to the East Room after forecasters predicted that the weather would be too hot.

 

 

Wednesday, March 25, 2015

Why has 'microhydro' been neglected as a solution to energy poverty?

We live in a world of growing resource scarcity. The oft-quoted statistic is that by 2050 two thirds of the world’s population will live in areas of water stress or scarcity.

Currently, agriculture is the largest user of water, but as the World Bank’s Thirsty Energyinitiative points out, increasing demands for energy will also require increasing use of freshwater. And as populations rise, so will the need for more water and energy for food production.

Many say we need greater efficiency in order to help manage some of these difficult trade-offs between water, energy and food. Much of this debate is focused on macro-level solutions. However, the International Energy Agency has calculated that 55% of all new electricity supply will need to come from decentralised systems if we are to reach the goal of universal energy access by 2030.

So could decentralised, off-grid solutions hold the key? For many years, influencers have debated whether community-based, off-grid schemes can deliver energy sustainably. But this battle has not yet been won. Recently new lines have been drawn by Bill Gates, who called for centralised, fossil-fuel based electrification to solve energy poverty and SunEdison founder Jigar Shah who responded by putting forward the case for distributed renewable solutions.

While this debates goes on at the policy level, what do experiences on the ground tell us? At Practical Action, we have found that micro hydropower (or microhydro) systems, which produce power from streams and small rivers, provide huge potential for sustainable energy.

For example in Peru, microhydro systems installed in the mid- to late-1990s are still running today. Not only do they provide electricity for light bulbs and other small appliances, they can also supply continuous power for local clinics, allow people to use fridges and run small businesses. We found they reduced household energy expenditure by more than half, and 60% of families said their incomes had increased.

However, there is still unexplored potential for decentralised hydropower. In both Peru and Nepal (where micro-hydro schemes are widespread), there was rarely any deliberate attempt to connect the electricity generated to agricultural systems, or to make use of the channelled water for irrigation. This means missing out on a set of potentially transformational opportunities. Decentralised energy systems can not only improve energy access, but also help to maximise the relationships between water, energy and food, both now and in the future.

More recently, and learning from our experiences, we have been making the connection between agriculture and energy more directly. Together with Oxfam we have been working in Zimbabwe, for example in the Himalaya scheme which uses the electricity generated by the microhydro plant, as well as the channelled water, for much-needed irrigation.

The approach does of course have it’s challenges. Across the schemes we’ve developed in Zimbabwe familiar challenges and trade-offs emerge, particularly with a recent severe two-year drought followed by heavy rains. For example, in Chipendeke in Zimbabwe, initial planning for hydropower failed to fully accommodate existing irrigation needs. As a result during the dry season, there was insufficient water to run both the irrigation and the hydro simultaneously. Eventually the villagers reached a compromise where the microhydro plant was switched off for short periods to allow more water for irrigation.

In Ngarura, there were delays in construction of the microhydro project and farmers lost trust. They continued cultivating the steep river banks, and when the rains came there was heavy siltation of the system. The lesson there was that farmers have to be convinced of the benefit of the scheme in order to preserve the river banks.

Despite these problems, in both cases solutions were reached through dialogue and the community balancing their priorities. It is important not only to focus on the infrastructure for hydropower but also the institutions to support it and that is as much part of increasing resilience as the energy or water itself.

Development organisations can sometimes be rightly accused of being starry-eyed about the potential of community ownership and management. In the case of a microhydro plant this can impose unrealistic burdens, and in the absence of support structures from local technicians, spare parts, and a clear sense of ownership infrastructure can quickly fall into disuse. But the sector has been learning, as research shows. The right systems for decentralised energy production can be created and it can provide a sustainable solution to energy poverty. More