Energy Change for Climate Control
RSS icon Home icon
  • 20 Letters

    Posted on November 22nd, 2014 Jo No comments


    [ Video : George Marshall of the Climate Outreach Information Network launching his new book "Don't Even Think About It" on the communication of climate change at the Harvard Book Store, whereto he had to fly, thereby causing significant personal carbon dioxide emissions. This YouTube does not feature Ian Christie, but is not entirely unrelated to his address, which is documented in the text below. ]

    Ian Christie of the Sustainable Lifestyles Research Group (SLRG) at the University of Surrey came to speak to the Green Christian Annual Members Meeting today under the heading “Sustainable Living : Why we struggle and how we can change”, and presided over three facilitated workshops on Church, Community and Campaigning. He was introduced as working with the Centre for Environmental Strategy at the University of Surrey, and having helped to pull together “Church and Earth”, the Seven Year Plan for the Church of England, as a response to the Alliance of Religions and Conservation initiative which culminated in the “Many Heavens, One Earth” Windsor Conference in November 2009. Ian Christie has also done project work with the Foundation for Democracy and Sustainable Development and the think tank Theos. He has been environmental advisor to the Bishop of Kingston.

    Ian Christie joked that his colleague Tim Jackson, who has written a best-selling book “Prosperity Without Growth”, sometimes feels he is on a permanent global tour, given the huge impact his work has had worldwide. The “paradox” is that his carbon footprint is enormous. Yet clearly there is great benefit from travel to present the messages from Tim’s research. This illustrates the clash of goods and values that is always present in our attempts to reduce our impacts and change lifestyles. Ian said that we shouldn’t beat ourselves up too much about our carbon emissions-filled lifestyles – many of us are doing reasonably well in not very promising circumstances. It’s not surprising that we haven’t made much progress in sustainable living – this is perhaps the biggest challenge humanity has set itself.

    Ian said, “Between 5% and 10% of the population (and this figure hasn’t changed over the last several years) are consistently trying to live as sustainably as they can in all areas of their lives. Meanwhile, another small segment – maybe 10% – 15% don’t care at all. The other two-thirds or more, including myself, are in the middle ground. We get confused. We sometimes give up on making particular changes. We might feel that taking the trouble on environmental issues is a bit of an effort – because other signals are not there, because other people are not doing it. Anyone who thinks we can bring about environmental “conversion”, person by person – it’s too difficult.”

    He went on to say, “As advocates of change, we don’t tell positive stories very well. We environmentalists have been much better at telling the alarming or apocalyptic event, rather than explaining the diagnosis of unsustainability. There’s a lack of supporting infrastructure for doing the sustainable things in everyday life. People get locked-in to high-carbon behaviours. We might want to do the green, sustainable thing but we can’t. The idea that “joy in less” is possible can seem unbelievable.” He went on to explain that, “consumption can make us feel good. More can be more. I get a thrill going into John Lewis sometimes, all those bright and shiny things. It’s amazing they’re available for sale and that I can afford them. Consumerism can feel like it is bringing real benefits. It can be fun.”

    Ian Christie remarked about the RESOLVE research at Surrey on the sense of “threatened identities”, a feeling that can arise when we’re asked to change our lifestyles – an important part of our identity can seem to be at stake. There is a lack of positive incentives and collective success stories. He gave an example – one where people cooking for their families want to recreate the cosy, nourishing food of their childhoods, or feel that they are giving a ‘proper meal’ to their loved ones, and they do that by using meat. These people find it hard to be told that they need to give up eating meat to save the planet. Another example, when people are told to cut down on car driving – there is a feeling of a loss of freedom, an assault on the idea that I can go where I like and do what I want to do. “Climate change is perhaps too big, distant or complicated for us. It is certainly too much for any one person to deal with”.

    Ian Christie spoke about the clash of desires and values – and that St Paul got there first (Romans 7:15-17) (and St Augustine, but paraphrased). He joked that he has discovered that many people had a dirty secret, which he calls “Top Gear Syndrome” – “you’d be surprised how many environmentalists like watching Top Gear”. He also mentioned what he termed “Copenhagen Syndrome” – where environmentalists feel that they need to attend every meeting on climate change – and so they fly there. People like to go to exotic places – many Greens included.

    Ian Christie emphasised that we can’t get to sustainable living one person at a time. He said that this amounted to a “Collective Action Problem” or (CAP). He showed us an image of what is commonly called a Mexican Stand-Off – where a group of three people have their weapons at each other’s throats and nobody will back down – each of the three major groups in society thinks that the other two should take the lead. So governments think that businesses and citizens should act. And citizens think that government and businesses should act. And businesses think that their consumers and governments should act.

    Ian said that there is a clear finding from social research that people feel safety in numbers – we like to feel that we fit in with our peers and neighbours – for example, in some cultures like America, people would rather make everyone feel comfortable than break out of normative behaviour or views. Individual households have a low perception of “agency” – feeling that they can make any significant change – that they don’t have sufficient capacity to act – “no clout”, as one member of the audience commented.

    Ian gave some examples of attitudes of people’s attitudes on environmental lifestyles : “I will even though you won’t – even though no one else steps forward”; “I will – but it’s never enough”; “I might if you will” or even, “I know you won’t, so don’t ask me”. He said that Collective Action Problems need to be addressed by all actors needing to be engaged. He said that there would be “no single ‘best buy’ policy” and that action will tend to be in the form of “clumsy solutions”. He said that people need “loud, long and legal” signals from government, consistent messages and incentives for change.

    Ian Christie said there is a community level of action possible – “communities of practice”. He recommended that we look up the CLASL research done by Defra/WWF. He mentioned “moments of change” – times of transition in life – and whether these might be appropriate times to offer support for alternative choices. He said that action by individuals cannot be guaranteed by giving messages to people as if they are only consumers, rather than citizens. If we say that something will save people money, they won’t necessarily act in ways that support a shift to sustainable lifestyles. We need to address people’s intrinsic values as well as material self-interest.

    Ian talked about some of the results of the research from the DEFRA-funded SLRG project, which is coming to an end. He spoke about the evidence of “Rebound Effects”, where people make savings on their carbon dioxide emissions by energy efficiency gains or other measures, and then spend the saved money in ways that can increase greenhouse gas emissions, like taking holidays by aeroplane – he mentioned the Tesco offer to “turn lights into flights”, where people were being encouraged to buy energy efficient light bulbs in exchange for Air Miles – “it’s going to make things much worse”. He said that research showed that re-spending (reinvestment) is what matters and that we need to go to the source of the emissions, through a carbon tax, for example.

    Ian Christie said that it is very limited what we can do as individual households. Lots of policymakers have thought to get through to people at moments of change – although there used to be no evidence. People’s habits and networks can be restructured for example when they move home, have a child or retire – a “habit discontinuity”. Research has now shown that there is a small but significant effect with house-movers – who are much more likely to act on information if they are given well-timed and designed information packages on green living – but only a small minority are truly motivated. He asked “how do we magnify this effect ?” The sheer act of moving house makes people amenable to change. Research has also shown that there might be a willingness amongst new parents – who would express more pro-environmental values as a result of having a new child – but are less capable of acting on these wishes. The reverse was found in those entering retirement – they wanted to live more frugally – but didn’t necessarily express this desire in terms of sustainable living.

    Ian said that the “window of opportunity” for introducing lifestyle change might be quite limited, perhaps a few months – and so people would not sustain their new habits without “lifestyle support systems”. People might not want to hear from a green group, but could be open to hearing from a church, or their Health Visitor, or Mumsnet. Maybe even a hairdresser ? One project that he recommended was PECT, the Peterborough Environment City Trust, which is acting as a facilitator for encouraging changes. He said people get demotivated if they feel businesses and governments are not doing the same thing. He mentioned avenues and approaches for increasing the sense of agency : framing environmental issues in : moments of change, local food growing, community energy groups, frugality, health and well-being…

    Ian Christie said that Church of England work on “Shrinking the Footprint” was poised to make fresh progress, with leadership from the new lead bishop on the environment, Rt Revd Nicholas Holtam.

    Ian Christie suggested that positive activities could inspire : why could a church not turn an emergency feeding centre – a food bank – into a food hub – a place where people could come for tools, seeds and food growing group support ? What about Cathedral Innovation Centres as catalysts for sustainable living schemes ? Why not partner with the National Trust or the National Health Service over environmental issues ? He said the NHS has a Sustainable Development Strategy – “one of the best I’ve seen”. How about calling for a New Green Deal for Communities ? One reason why the Green Deal has been so poorly supported has been it has been promoted to individuals and it’s much harder to get individuals to commit and act on projects.

    Ian pointed towards good intervention concepts : “safety in numbers” approaches, moments of change, congregation spaces, trusted peers in the community, consistent messages. He recommended Staying Positive : “look how far we’ve come”; we have two decisive decades ahead; Business As Usual is failing – CEOs are breaking ranks; cities are going green – and the churches are waking up to ecological challenges.

    In questions, I asked Ian Christie why he only had three social groups rather than four. I said that I see businesses broken down into two categories – those that produce energy and those that consume energy to provide goods and services. I said there were some excellent sustainable development strategies coming out of the private enterprises consuming energy, such as Marks and Spencer. He said that yes, amongst the fossil energy producing companies, there is a massive challenge in responding to climate change. He pointed to Unilever, who are beginning to see themselves as pioneers in a new model of sustainable business. There is a clear divergence of interest between fossil fuel producers and companies whose core business is being put at risk by climate disruption.

    When asked about whether we should try to set the economy on a “war footing” as regards climate change, Ian Christie said “we aren’t in a war like that. We ourselves, with our high-carbon consumption, are ‘the enemy’, if we want to put it like that. We are not in a process where people can be mobilised as in a war.” He said that the churches need to bring climate change into every talk, every sermon “this is how we do Christian witness”.

    In discussion after the breakout workshops, Ian Christie said that we need to try to get to local opinion-formers. He said that a critical mass of communication to a Member of Parliament on one subject could be as few as 20 letters. He said that mass letter writing to MPs is one way in which others seeking to influence policy “play the game” in politics, so we must do it too. For example, we could write to our churches, our leaders, our democratic representatives, and demand a New Green Deal for Communities, and in letters to political candidates for the General Election we could say it would be a critical factor in deciding who we vote for. In the General Election in 2015, Ian said that it could be a five-way split, and that the “green issue” could be decisive, and so we should say that our vote will go to the greenest of candidates.

    Ian said we should try to audit our church expertise, and that we should aim for our churches to give one clear overall narrative – not an “environmental narrative”, but one that urges us to be truly Christian. He said that it was important that church leaders talk the talk as well as walk the talk – making it normal to talk about these things – not keeping them partitioned. The weekly sermon or talk in church must tell this story. He said that people disagree for really good reasons, but that the issue was one of trying to create a setting in which disagreement can get somewhere. He mentioned the work of George Marshall and the Climate Outreach Information Network as being relevant to building narratives that work on climate change out of a silence or absence of dialogue.

  • UKERC : Gas by Design (2)

    Posted on November 14th, 2014 Jo No comments

    This week, I had the opportunity to join the launch of the UKERC’s latest research into the future of gas. The esteemed delegates included members of a Russian Trade Delegation and several people from the US Embassy. Clearly, the future of gas is an international thing.


    [continued from Gas by Design ]

    Mike Bradshaw, Warwick Business School = [MB]

    [MB] I’m somewhat daunted by this audience – the report is aimed perhaps for informed public audience. The media [ambushed us on the question of shale gas, shale gas attracted more attention] but things we didn’t cover much about there we can cover here. It’s been a real rollercoaster ride in the gas industry. Any flights of fancy (in the report) are our faults and not theirs [reference to work of colleagues, such as Jonathan Stern at Oxford Institute for Energy Studies]. A set of shortcomings dealing with the issue of Energy Security. There is a tendency to think that oil and gas are the same. They’re not. The framework, the actors and the networks, trade statistics, policies [much different for gas than for oil]. [In the UK for example we are seeing] a rapid increase in import dependence [and in other countries]. Need to [pay] particular understanding on what will happen in far-flung places. Today, the US-China agreement could influence gas demand. [In the literature on gas, some anomalies, perhaps]. Academics may not understand markets. [What we are seeing here is] the globalisation of UK gas security – primarily Europeanisation. There is growing uncertainty [about] the material flow of gas. [Threshold] balance in three sectors – strong seasonality, impact of climate and temperature [on gas demand]. The Russian agreement with Ukraine [and Europe] – the one thing everybody was hoping for was a warm winter. While the gas market is important [industrial use and energy use], domestic/residential demand is still very significant [proportion of total demand], so we need to look at energy efficiency [building insulation rates] and ask will people rip out their gas boilers ? For the UK, we are some way across the gas bridge – gas has enabled us to meet [most of] our Kyoto Protocol commitments. Not long until we’ve crossed it. Our coal – gone. With coal gone, what fills the gaps ? Renewable electricity – but there is much intermittency already. We’re not saying that import dependency is necessarily a problem. Physical security is not really the problem – but the [dependence on] the interconnectors, the LNG (Liquefied Natural Gas) imports – these create uncertainties. The UK also plays a role as a gas exporter – and in landing Norwegian gas [bringing it into the European market]. I’m a geographer – have to have at least one map – of gas flows [in and out of the country]. The NTS (National Transmission System – the high pressure Natural Gas-carrying pipeline network – the “backbone” of the gas transmission and distribution system of National Grid] has responded to change – for example in the increasing sources of LNG [and "backflow" and "crossflow" requirements]. There are 9 points of entry for gas into the UK at the moment. If the Bowland Shale is exploited, there could be 100s of new points of entry [the injection of biogas as biomethane into the gas grid would also create new entry points]. A new challenge to the system. [The gas network has had some time to react in the past, for example] LNG imports – the decision to ramp up the capacity was taken a long time ago. [Evolution of] prices in Asia have tracked the gas away [from the European markets] after the Fukushima Dai-ichi disaster. And recently, we have decided to “fill up the tanks” again [LNG imports have risen in the last 24 or so months]. Very little LNG is “firm” – it needs to follow the market. It’s not good to simply say that “the LNG will come” [without modelling this market]. The literature over-emphasises the physical security of the upstream supplies of gas. [The projections have] unconventional gas growing [and growing amounts of biogas]. But it’s far too early to know about shale gas – far too early to make promises about money when we don’t even have a market [yet]. Policy cannot influence the upstream especially in a privatised market. The interconnectors into the European Union means we have to pay much more attention to the Third EU Energy Package. Colleagues in Oxford are tracking that. The thorny question of storage. We have less than 5 bcm (billion cubic metres). We’d like 10% perhaps [of the winter period demand ?] Who should pay for it ? [A very large proportion of our storage is in one place] the Rough. We know what happens – we had a fire at the Rough in 2006… Everyone worries about geopolitics, but there are other potential sources of problems – our ageing infrastructure [...] if there is a technical problem and high demand [at the same time]. Resilience [of our gas system is demonstrated by the fact that we have] gas-on-gas competition [in the markets] – “liquid” gas hub trading – setting the NBP (National Balancing Point). [There are actually 3 kinds of gas security to consider] (a) Security of Supply – not really a problem; (b) Security of Transport (Transit) – this depends on markets and (c) Security of Demand – [which strongly depends on whether there is a] different role for gas in the future. But we need to design enough capacity even though we may not use all of it [or not all of the time]. We have mothballed gas-fired power plants already, for reasons you all know about. We already see the failure of the ETS (European Union Emissions Trading Scheme) [but if this can be reformed, as as the Industrial Emissions Directive bites] there will be a return to gas as coal closes. The role of Carbon Capture and Storage (CCS) becomes critical in retaining gas. CCS however doesn’t answer issues of [physical energy security, since CCS requires higher levels of fuel use].

    [Question from the floor] Gas has a role to play in transition. But how do we need to manage that role ? Too much focus on building Renewable Energy system. What is the impact on the current infrastructure ? For managing that decline in the incumbent system – gas is there to help – gas by design rather than gas by default.

    [Question from the floor, Jonathan Stern] [In your graphs/diagrams] the Middle East is a major contributor to gas trade. We see it differently. The Qataris [could/may/will] hold back [with expanding production] until 2030. Iran – our study [sees it as] a substitute contributor. Oil-indexed gas under threat and under challenge. If you could focus more on the global gas price… [New resources of gas could be very dispersed.]Very difficult to get UK people to understand [these] impacts on the gas prices [will] come from different places than they can think of.

    [Question from the floor] Availability of CCS capacity ? When ? How much ? Assumptions of cost ?

    [Question from the floor : Tony Bosworth, Friends of the Earth] Gas as a bridge – how much gas do we need for [this process] ? What about unburnable carbon ? Do we need more gas to meet demands ?

    [Answer - to Jonathan Stern - from Christophe McGlade ?] The model doesn’t represent particularly well political probabilities. Iran has a lot of gas – some can come online. It will bring it online if it wants to export it. Some simplifications… might be over optimistic. Your work is helpful to clarify.

    On gas prices – indexation versus global gas price – all the later scenarios assumed a globalised gas price. More reasonable assumptions.

    On CCS : first [coming onstream] 2025 – initially quite a low level, then increasing by 10% a year. The capital costs are approximately 60% greater than other options and causes a drop in around 10% on efficiency [because making CCS work costs you in extra fuel consumed]. If the prices of energy [including gas] increase, then CCS will have a lesser relative value [?].

    On availability of gas : under the 2 degrees Celsius scenario, we could consume 5 tcm (trillion cubic metres) of gas – and this can come from reserves and resources. There are a lot of resources of Natural Gas, but some of it will be at a higher price. In the model we assume development of some new resources, with a growth in shale gas, and other unconventional gas. Because of the climate deal, we need to leave some gas underground.

    [Answer from the panel] Indexation of gas prices to oil… Further gas demand is in Asia – it’s a question of whose gas gets burnt. [Something like] 70% of all Natural Gas gets burned indigenously [within the country in which it is produced]. When we talk about “unburnable gas”, we get the response “you’re dreaming” from some oil companies, “it won’t be our fossil fuels that get stranded”. LNG models envisage a different demand profile [in the future, compared to now]. When China [really gets] concerned about air quality [for example]. Different implications.

    [Question from the floor, from Centrica ?] What’s in the model for the globalised gas price – Henry Hub plus a bit ? There is not a standard one price.

    [Question from the floor] On the question of bridging – the long-term bridge. What issues do you see when you get to 2030 for investment ? [We can see] only for the next few years. What will investors think about that ?

    [Question from the floor] [With reference to the Sankey diagram of gas use in the UK] How would that change in a scenario of [electrification - heat and transport being converted to run on electrical power] ?

    [Question from the floor] Stranded assets. How the markets might react ? Can you put any numbers on it – especially in the non-CCS scenario ? When do we need to decide [major strategy] for example, [whether we could or should be] shutting off the gas grid ? How would we fund that ? Where are the pinch points ?

    [Answer from the panel] On the global gas price – the model does not assume a single price – [it will differ over each] region. [The price is allowed to change regionally [but is assumed to arise from global gas trading without reference to oil prices.] Asian basin will always be more expensive. There will be a temperature differential between different hubs [since consumption is strongly correlated with seasonal change]. On stranded assets – I think you mean gas power plants ? The model is socially-optimal – all regions working towards the 2 degrees Celsius global warming target. The model doesn’t limit stranded assets – and do get in the non-CCS scenario. Build gas plants to 2025 – then used at very low load factors. Coal plants need to reduce [to zero] given that the 2 degrees Celsius targets are demanding. Will need gas for grid balancing – [new gas-fired power generation assets will be] built and not used at high load factors.

    [Answer from the panel] Our report – we have assume a whole system question for transition. How successful will the Capacity Mechanism be ? UKERC looking at electrification of heating – but they have not considered the impact on gas (gas-to-power). Will the incentives in place be effective ? The Carbon Budget – what are the implications ? Need to use whole system analysis to understand the impact on gas. Issue of stranded assets : increasingly important now [not at some point in the future]. On pinch point : do we need to wait another three years [for more research] ? Researchers have looked more at what to spend – what to build – and less on how to manage the transition. UKERC have started to explore heat options. It’s a live issue. Referenced in the report.

    [Question from the floor, from Richard Sverrisson, News Editor of Montel] Will reform to the EU ETS – the Market Stability Reserve (MSR) – will that be enough to bring gas plant into service ?

    [Question from the floor] On oil indexation and the recent crash in the crude price – what if it keeps continuing [downwards] ? It takes gas prices down to be competitive with hub prices. [What about the impact on the economic profitability of] shale oil – where gas driving related prices ? Are there some pricing [functions/variables] in the modelling – or is it merely a physical construct ?

    [Question from the floor, from Rob Gross of UCL] On intermittency and the flexibility of low carbon capacity. The geographical units in the modelling are large – the role of gas depends on how the model is constrained vis-a-vis intermittency.

    [Answer from the panel, from Christophe McGlade] On carbon dioxide pricing : in the 2 degrees Celsius scenario, the price is assumed to be $200 per tonne. In the non-CCS scenario, the price is in the region of $400 – $500 per tonne [?] From 2020 : carbon price rises steeply – higher than the Carbon Floor Price. How is the the 2 degrees Celsius target introduced ? If you place a temperature constraint on the energy system, the model converts that into carbon emissions. The latest IPCC report shows that there remains an almost linear trend between carbon budget and temperature rise – or should I say a greenhouse gas budget instead : carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). The emissions pledges of the [European Union ?] have been adopted by this model – also the development of renewable energy and fuel standards. No exogenous assumptions on carbon pricing. On intermittency – the seasonality is represented by summer, winter and intermediate; and time day generalised as morning, night, evening and peak (morning peak). [Tighter modelling would provide more] certainty which would remove ~40% of effective demand [?] Each technology has a contribution to make to peak load. Although, we assume nothing from wind power – cannot capture hour to hour market. The model does build capacity that then it doesn’t use.

    [Answer from the panel] On carbon pricing and the EU ETS reform : I wouldn’t hold my breath [that this will happen, or that it will have a major impact]. We have a new commission and their priority is Poland – nothing serious will happen on carbon pricing until 2020. Their emphasis is much more on Central European issues. I don’t expect to have a strong carbon price since policy [will probably be] more focussed on social democracy issues. Moving to a relatively lower price on oil : Asia will hedge. Other explorters currently sticking to indexation with oil. The low price of wet gas (condensate) in the USA is a result of the over-supply, which followed an over-supply in NGLs (Natural Gas Liquids) – a bumpy road. Implications from USA experience ? Again, comes back to watching what is happening in Asia.

    [to be continued...]

  • Steve Chalke : Ecosystem Faith (2)

    Posted on November 13th, 2014 Jo No comments

    Here is the SoundCloud recording of Reverend Steve Chalke’s address at the Pray and Fast for the Climate event on 1st November 2014 :-

  • UKERC : Gas by Design

    Posted on November 12th, 2014 Jo No comments

    Today I attended a meeting of minds.

    It’s clear to me that the near-term and mid-term future for energy in the United Kingdom and the European Union will best be centred on Natural Gas and Renewable Electricity, and now the UK Energy Research Centre has modelled essentially the same scenario. This can become a common narrative amongst all parties – the policy people, the economists, the technologists, the non-governmental groups, as long as some key long-term de-carbonisation and energy security objectives are built into the plan.

    The researchers wanted to emphasise from their report that the use of Natural Gas should not be a default option in the case that other strategies fail – they want to see a planned transition to a de-carbonised energy system using Natural Gas by design, as a bridge in that transition. Most of the people in the room found they could largely agree with this. Me, too. My only caveat was that when the researchers spoke about Gas-CCS – Natural Gas-fired power generation with Carbon Capture and Storage attached, my choice would be Gas-CCU – Natural Gas-fired power generation with Carbon Capture and Re-utilisation – carbon recycling – which will eventually lead to much lower emissions gas supply at source.

    What follows is a transcription of my poorly-written notes at the meeting, so you cannot accept them as verbatim.

    Jim Watson, UKERC = [JW]
    Christophe McGlade, University College London (UCL) = [CM]
    Mike Bradshaw, Warwick Business School = [MB]

    [JW] Thanks to Matt Aylott. Live Tweeting #FutureOfGas. Clearly gas is very very important. It’s never out of the news. The media all want to talk about fracking… If we want to meet the 2 degrees Celsius target of the United Nations Framework Convention on Climate Change, how much can gas be a part of this ? Is Natural Gas a bridge – how long a ride will that gas bridge be ?

    [CM] Gas as a bridge ? There is healthy debate about the Natural Gas contribution to climate change [via the carbon dioxide emissions from burning Natural Gas, and also about how much less in emissions there is from burning Natural Gas compared to burning coal]. The IPCC said that “fuel switching” from coal to gas would offer emissions benefits, but some research, notably McJeon et al. (2014) made statements that switching to Natural Gas cannot confer emissions benefits. Until recently, there have not been many disaggregated assessments on gas as a bridge. We have used TIAM-UCL. The world is divided into 16 regions. The “climate module” seeks to constrain the global temperature rise to 2 degrees Celsius. One of the outcomes from our model was that export volumes [from all countries] would be severaly impacted by maintaining the price indexation between oil and gas. [Reading from chart on the screen : exports would peak in 2040s]. Another outcome was that gas consumption is not radically affected by different gas market structures. However, the over indexation to the oil price may destroy gas export markets. Total exports of natural gas are higher under the 2 degrees Celsius scenario compared to the 4 degrees Celsius scenario – particularly LNG [Liquefied Natural Gas]. A global climate deal will support gas exports. There will be a higher gas consumption under a 2 degrees Celsius deal compared to unconstrained scenario [leading to a 4 degrees Celsius global temperature rise]. The results of our modelling indicate that gas acts as a bridge fuel out to 2035 [?] in both absolute and relative terms. There is 15% greater gas consumption in the 2 degrees Celsius global warming scenario than in the 4 degrees Celsius global warming scenario. Part of the reason is that under the 4 degrees Celsius scenario, Compressed Natural Gas vehicles are popular, but a lot less useful under the 2 degrees Celsius scenario [where hydrogen and other fuels are brought into play].

    There are multiple caveats on these outcomes. The bridging period is strictly time-limited. Some sectors need to sharply reduce consumption [such as building heating by Natural Gas boilers, which can be achieved by mass insulation projects]. Coal must be curtailed, but coal-for-gas substitution alone is not sufficient. Need a convincing narrative about how coal can be curtailed. In an absence of a global binding climate deal we will get consumption increases in both coal and gas. In the model, gas is offsetting 15% of coal by 2020, and 85% by 2030. With Carbon Capture and Storage (CCS), gas’s role is drastically reduced – after 2025 dropping by 2% a year [of permitted gas use]. Not all regions of the world can use gas as a bridge. [Reading from the chart : with CCS, gas is a strong bridging fuel in the China, EU, India, Japan and South Korea regions, but without CCS, gas is only strong in China. With CCS, gas's bridging role is good in Australasia, ODA presumably "Offical Development Assistance" countries and USA. Without CCS, gas is good for Africa, Australasia, EU, India, Japan, South Korea, ODA and USA.]

    In the UK, despite the current reliance on coal, there is little scope to use it as a transition fuel. Gas is unlikely to be removed from UK energy system by 2050.

    [Question from the floor] The logic of gas price indexation with the oil price ?

    [CM] If maintain oil indexation, exports will reduce as countries turn more towards indigenous at-home production of gas for their domestic demand. This would not be completely counter-balanced by higher oil and therefore gas prices, which should stimulate more exports.

    [Point from the floor] This assumes logical behaviour…

    [Question from the floor] [Question about Carbon Capture and Storage (CCS)]

    [CM] The model does anticipate more CCS – which permits some extra coal consumption [at the end of the modelling period]. Gas-CCS [gas-fired power generation with CCS attached] is always going to generate less emissions than coal-CCS [coal-fired power generation with CCS attached] – so the model prefers gas-CCS.

    [to be continued...]

  • Contracts for Difference Risks

    Posted on November 10th, 2014 Jo No comments

    The UK Government’s Electricity Market Reform (EMR) is a moving feast, or “trough”, if you are of the opinion that any state subsidy is a subsidy too far. My, how people complained and complained about the Renewables Obligation (RO), perhaps one of the world’s best stimuli for pushing forward wind power development. Yes, some rich engineering firms and rich landowners got richer on the back of the RO. What do you expect ? The wealthy always leverage their capital. But at least the RO has produced some exceptional wind power generation numbers. In the period 2017 to 2018 however, the RO is set to be staged down and replaced by several elements in the EMR, most notably, the CfD or Contracts for Difference, otherwise affectionately and quite inaccurately described as the FiT CfD – Feed-in Tariff Contracts for Difference.

    The basic plan for the CfD is to guarantee to new electricity generators, or old generators building new plant, a definite price on power sold, in order to ensure they can get debt and equity invested in their projects. However, this is a huge state intervention and potentially entirely scuppers the efforts to create a market in electricity. More dangerously, although the CfD is supposed to encourage the freeing up of capital to support new energy investment, it might fail in that, at least in the short-term, and it may even fail to make capital cheaper. This is due to the new kinds of risk associated with the CfD – particularly because of the long lead time from auction to allocation, and the cap on allocations. The CfD is designed to create project failures, it seems.

    I recently attended an event hosted at the Queen Elizabeth II Conference Centre in Westminster in London, called Energy4PowerLive 2014 and managed by GMP. The first session I attended was in the RenewablesLive 2014 stream, and featured a panel discussion between Andrew Buglass from Royal Bank of Scotland (RBS), Philip Bazin of Triodos and Steve Hunter, Investment Director of Low Carbon.

    What follows is not verbatim, and is based on my handwritten notes, and my handwriting is appalling, so that sometimes, even I cannot read it.

    [ Andrew Buglass, Managing Director and Head of Energy, Royal Bank of Scotland (RBS) : "Financing CfD projects - initial impressions from a lender" ]

    [You may have an interest in the actions of] RBS [heckle from the audience, "We own it !"]. We built our first renewable energy project in 1991 – an onshore wind turbine. Now we [have helped] finance 9 gigawatts of renewable energy. I have 15 minutes – only possible to scratch the surface of CfDs [Contracts for Difference - a subsidy under the UK Government Department of Energy and Climate Change (DECC) Electricity Market Reform (EMR))]. The EMR journey has been a very long one – four years. We have offered advice to the government – about the bankability of the policy. DECC have a different policy perspective – they are going over here [in this direction] whether or not… [Their aim was to] encourage new sources of investment debt and equity, [currently] not here in the UK. [...] Matt Hancock, new [energy] minister [...] £115 [billion ?] [...]. Half of £100 billion needed by end of decade. The EMR framework is [intended] to bring in new sources of debt and equity – its ability to track that into the market. I’m not going to review whether the EMR will be successful. It’s a “Nought to Sixty” question [reference to how quickly it takes for cars to accelerate], how quickly is capital going to be delivered [getting up and running]. There will be a big step up in terms of work [...] how are different counterparties [countersigning parties in the CfD contracts] responding ? Now is the time to deliver on the [practical economics] for those to decide whether to invest or not. Need to engage the ratings agencies – getting debt from bond markets – to convince Standard and Poor etc to convince [...] The first projects are going to take a long time – cutting their teeth. Cost, availability, terms of debt. The risks that will [come into play] :

    A. OFFTAKE RISK – BASIS RISK
    [At the start of the EMR discussions] we highlighted that small generators found it hard to get PPAS [Power Purchase Agreements]. With the CfDs “lender of last resort” “offtaker of last resort” [...] may support less strong balance sheets for PPAs. Great – because we need a lot more liquidity in PPAs. [However] the basis risks on the strike price compared to the reference price – if this is [changed, different] – a concern about whether they might be matching in the middle [and so conferring no benefit to having arranged the CfD]].

    B. WHOLESALE PRICE RISK
    In offshore wind – wild – the economics of generating. In onshore wind power, the wholesale price has less of a way to fall [because of many years of learning and maturing of supply chains etc].

    C. INDEX INFLATION RISK
    The CfDs are to be linked to CPI [Consumer Price Index] rather than the RPI [Retail Price Index]. This may seem like a not very important difference – but at the moment you cannot hedge against the CPI. [...] we recommend RPI – linked to lock in. Can’t do that with CPI.

    D. FORCE MAJEURE RISK
    [Risk] especially during construction. The CfD does not pick up during construction – need to see [how this pans out].

    E. CHANGE IN LAW (CIL) RISK
    Twenty pages of the CIL clause – doesn’t seem to give you much protection – what is a “foreseeable change in law” ? Unless you’re a big utility you will not have been tracking [policy and legislation] for the last ten years. Big risk ? In the RO [Renewables Obligation], CIL risk was set to the offtaker. Law firms are going to really agonise [over this in the CfD].

    F. LIFETIME MANAGEMENT RISK
    Risk relating to managing CfD contract during its lifetime. There is a risk from the termination of a CfD – more than in the RO. May need to do more work to keep lender involved to manage termination risk.

    Leads to a gloomy approach – in banking paying back on time is good – anything else is bad.

    The EMR has cross-party support, but this is the most interventionist approach since the CEGB (Central Electricity Generating Board market). The politicians are saying “no, no, we’d never change anything” – from three parties. It would help if there were a public statement on that (I get calls about “too many turbines”). Initial projects will probably take longer to start than [under] RO. Collectively fund pragmatic solutions.

    [ Philip Bazin, Head Project Finance Team, Triodos Bank : "Financing CfD projects - initial impressions from a different bank" ]

    Triodos was established in 1980, and started in the UK in 1995 with the acquisition of Mercury [...] Our portfolio in the UK is still relatively small. Over a third of the £500 million is in renewable energy. Our investment [...] basis of positive social and environmental outcomes. [...] Core lending of £1 to £15 million finance [...] construction [...] and up to 15 years [on loan repayment]. Smaller developers – best fit. The bank is almost becoming part of the supply chain in the bidding process. Give a forward fixed rate of interest. We’ve had to think about how we provide this derivative. Discussions with PPA providers. Feeling that most a lot of new players. The whole rush around CfD was quite unhelpful. We haven’t been engaging with any bidders for this round [of CfDs]. Our customers are small generators or community groups. Smaller projects are risk-averse and would [probably] use the RO instead of the CfD [for now]. These markets are going to find this new structure [offputting]. Not ideal if you’re a professional investor. [Andrew has explained the risks well] The biggest one for me is the risk of failing to achieve your LONGSTOP DATE [failure to start electricity generation by an agreed date], which would risk a termination [of the CfD subsidy agreement. This would destroy the economics of the whole project and therefore the investment]. What protections do you have as a sub-contractor ? Another point is about wayleaves. [If you can't get your wayleaves in time...] Fundamentally, the [CfD] mechanism is bankable. [However] in trying to fix a problem it [may] have created a total mess. Don’t know if more capital will be going into projects.

    [ Steve Hunter, Investment Director, Low Carbon : "CfDs from an equity perspective" ]

    [Our business is in] Solar PV, Onshore wind, CSP in the Mediterranean area. We get there when project developer is doing land deals. We have a cradle-to-grave perspective. Land planning and grid access are major risks [and the guarantee of biomass feedstock for a biomass project]. The WHOLESALE POWER PRICE RISK – someone needs to take it. Your view depends on your equity horizon. For us, the two big changes [from the RO] are the introduction of the ALLOCATION RISK and the removal of the power price risk. Don’t know the budget for allocation. Only know one month before the [CfD] auction ! The government has not released [a budget] for “emerging technology”. Timing : doesn’t really work for solar. The idea of CfD versus RO for solar will not work. [It's all down to the project lifecycle] – you could be waiting 14 or 15 months for a CfD allocation after making a bid, but grid connection deals are now closing in [at around 12 months - if you do not take up your grid connection permission, you will lose it]. At the moment there is no competition between technologies. Is there enough CfD set aside for offshore wind projects ? Yes. If CfDs are intended to deliver technology-neutral [energy mix] – it doesn’t yet. The REFERENCE PRICES for me are the significant risk. This is entirely new for CfDs. Because the CfD intended to bring lower cost of capital – there is an implication for return [on investment] to the investor. Government will set [the reference prices]. Government just released [for some technologies] – decreased [in a forward period]. The Government may have a very different view on forward power prices… These reference prices come out of the air [there seems to be no basis for them]. When is final not final ? When it comes from DECC. If consider 2018/2019 September, the tightest budget, you could afford 1,000 MW of offshore, [if there is a change in the reference price] you could only afford 700 MW. In the TEC Register from National Grid – download this – there is 1,000 to 1,200 MG in the pipeline onshore. If I was a wind developer with [grid] connection dates after the end of the RO, you can bet I’ve already bid [for a CfD allocation] already. The political risk of changing the RO. May be a small amount of solar – but anyway it’s too expensive. If the CfD is only to support onshore wind power – is it achieving its goals ? There will almost certainly be some modification [to the CfD or the reference prices ?]. Transparency ? Oversupply ? [Oversight ?] of setting reference prices. Increase in frequency of the CfD auction would be helpful. Would give developers more time to bid. Technologies like solar PV that could deliver large savings… If no large solar is built… They could put a minimum in [for the subsidy allocated to each technology] – more positive. CfD represents long-term support. If the industry drives down the cost of renewable energy, CfD gives us an infill fix on revenue. It will give that certainty to get debt [and equity] in. It may be the support mechanism we need in the long-term. It could be the support mechanism we need for renewable energy…

  • European Referendum : Corpse Factory

    Posted on November 9th, 2014 Jo No comments

    So I was in a meeting on a dateless date, at an organisation with a nameless name, with some other unidentifiable people in the room with me. For some reason I had been invited, I cannot think why. Ah, yes, I can. I was invited to attend because, apparently, I am a “campaigner”. I am, allegedly, somebody who buys into the notion that communications should serve the purpose of directing public attention and support towards a particular outcome, decided in advance by a political elite. And it seems, if I believe something is right, and that a message needs communicating, I will take action, but never invoice, because I am a believer. Well let me tell you right here and now, I am not that person. I may have that reputation, but really, I despise propaganda : the deliberate formation of a murmur of Tweet starlings, or the collective wall-to-wall newspaper coverage of the same story, the scandal story hauled out to scare the horses and herd them to the salt water shore, the faux narrative of collective political or social will for change.

    I want to believe that even though I am occasionally paid to communicate a story (but most often not), that my narrative, and importantly my agenda, is my own. I will not be co-opted. I shall not be defined by storytelling, I shall not be paid for spreading information – for if I were to be telling money-backed tales, I may end up peddling lies. And I do not want lies to be spoken. I am an ontologist. My ontology is :-

    SO
    IT IS
    AS
    IT IS.

    and not

    IT IS
    AS
    IT IS,
    SO…

    There is no “therefore” in what I write. When I say “should”, like, “we should adopt renewable energy”, it’s your choice as to whether you agree with me. You shouldn’t read anything and be swayed or directed, except by the force of reason based on evidence. I am the photographer, the recorder, but not the public relations consultant. And I am especially not an unsalaried volunteer. I paint the future using my own perspective, my own understanding, my own research, my own best judgement, but I am not telling people what to think. Although I go slightly beyond merely noting and analysing what is happening, to articulate possible futures, I am not a persuader.

    I do not want to write the script for the actions of the readers or listeners. I do not want to precipitate a revolution, or dehydrate the horses before leading them to the river bank. I want to describe rather than proscribe or prescribe. I want to scribe the way I see things, I do not do it in order to create waves or push buttons or light beacons. The facts should speak for themselves, and if anybody consumes my communication, they should be free to act as they feel fit, or suits. I am not a paid-for, paid-up, in-the-pocket campaigner. I am not spun round other peoples’ fingers like a talking puppet. I am a free person.

    So, there I was in this meeting, and the people in the room were discussing an event that is likely to take place. It appears from some analysis that the next British Government could well be another Coalition Government, with the Conservative Party having only a shaving of a majority for rule. And when they have crossed the i’s and dotted the t’s and formed a currently impossible political marriage, which I’m guessing will involve the Green Party as well as the Liberal Democrats, then they will need to live up to their promise to hold a referendum on British participation in the Grand European Experiment – economic union with other European countries.

    But nobody talks about Europe. Except to complain. In the meeting I attended, the hosts of the meeting were consulting for ways to highlight the Europe Question, and to give it a pro-Union light.

    For me, it’s facile. The United Kingdom of Great Britain and Northern Ireland is just a bunch of mediocre-sized islands off the coast of the European continent. Something like 80% of UK trade is with European countries, because Europe is our gateway to the rest of the global market, and you always do the most trade with your neighbours. It’s natural. Can anybody seriously suggest we ditch the Common Market – the agreements that European countries have come to to ensure common standards of goods and services, common terms and conditions of trade and common legal processes regulating trade ? So we want to reserve some kind of sovereignty over some kinds of decisions ? Why ? The UK is heavily involved in the central European institutions and governance bodies. We have massive input. We vote for MEPs. Why should things not go our way ? And even if things don’t go perfectly our way, will the negotiated compromises be so bad ? Subsidiarity – making decisions at the lowest/best/most appropriate level of administration – that’s still going to keep a lot of British control over British affairs. Surely the UK suffers a greater risk of interference from any pan-Atlantic trade deal that it does from Europe ?

    The UK have made commitments. Our Parliament has agreed that we need to work on climate change, social justice and economic stability. We have implicitly agreed that to address climate change we need Energy Change and environmental regulation; to achieve social justice we need human rights, justice, health, education and a benefits system; and for economic stability we need economic stimuli – for example, in national infrastructure projects. In terms of climate change and Energy Change there is so much we need to do. If we stay in Europe, all of this will be so much easier. Within the European project for energy market harmonisation is the work on standards to achieve gas and electricity grid harmonisation. The improvement and augmenting of interconnections between countries, and the provision of wider energy storage, will enable the balanced use of renewable energy. Governments need to create incentives for deploying renewable energy. Governments need to create mechanisms to leverage and facilitate renewable energy deployment. Without Europe, outwith Europe, it will cost us more, and be more complex. Within Europe, it will be easier.

    So, in the meeting I attended, I put forward my vision : if the UK stays in Europe, it will be easier to handle problems of energy – improving and replacing infrastructure and plant, co-ordinating the uptake of new renewable energy technologies and dealing with emerging energy security issues. Why, the North Sea, as everybody knows, is draining dry, and we can only build certain levels of relationship with countries outside the European Union, such as Russia. If the UK left the EU, the EU would be competitors with the UK for Russian Natural Gas, for example. I said I thought that energy security was a good thing to explain to people and a good reason to raise support for UK’s continued participation in Europe.

    So, somebody else in the meeting, who shall remain faceless and nameless, poured very cold water on this idea. They seemed to disbelieve that the UK faces risks to energy security. Instead, they suggested that the pro-Europe argument should be based on how the UK can “keep our place at the table”. How out of touch can one get, I thought to myself ? This kind of patrician argument is not going to wash. Appealing to some non-existent pride in the UK’s continued role as stakeholder in the European project is going to go down like a lead balloon. It’s a vote loser, for sure.

    What most people care about first is money. Their money. Any appeal to their pockets is going to help. We live in tough times – thanks to Government austerity policy – and we still cannot get a handle on public borrowing and spending. Because of the Government’s austerity policy.

    So how about we cast it like this : your energy is going to get much more expensive if the UK abandons the European community of nations. Plus, your lights could genuinely go out, unless you, the people, either as taxpayers or billpayers, fork out for new energy investments that the energy companies haven’t made for 20 years. Because of privatisation. Without taking part in the European energy market harmonisation, and the European development of new and renewable energy infrastructure, plant and networks, your bills could significantly rise/spiral out of control. If European companies were required to sell energy assets back to the UK, because the UK pulled out of Europe, we would be in a very fine mess indeed. Do you really want this kind of chaos ? Energy policy in the UK is already bad enough.

    The facts are available to those who search : British production of oil and gas from the North Sea is declining at something like 6% a year. The UK became a net energy importer between 2004 and 2006 (depending on how you define it). The Netherlands will become a net Natural Gas importer in the 2020s. Norway’s Natural Gas will reach a peak some time in the 2020s. It’s no good thinking that because the UK is a “gas hub”, and that British finance can currently spin up gas imports to the UK, that this situation is going to remain true. Within 10 to 15 years, I think that the UK will face significant competition for Natural Gas supplies with other European countries. Better to be in the debating chamber, surely, rather than scratching at the wind-and-rain-splattered window from outside ? So can the UK forge a gas alliance with countries outside the European Union, and apart from Norway ? A gas import alliance that sticks ? And that isn’t demolished by competition from the rest of the European Union for gas supplies that come through pipes sitting in European Union territory ? OK, the UK might want to leave full European Union membership, and join Norway in the European Economic Area, but will this guarantee beneficial import status for Natural Gas from countries that supply the full members of the European Community ?

    I said, instead of trying to talk about direct opposites – either Inside Europe or Outside Europe – let’s talk about how things can be helped by wider co-operation. The European Union was founded on energy treaties – coal and nuclear energy (and steel), and now Europe needs to move to a union forged on renewable power and Natural Gas – and later Renewable Gas – and it’s going to be so much easier to do if the UK stays at the party.

    The North Sea needs re-developing. Not for oil, but for wind power. This is going to happen best with full cross-border co-operation. Already, the UK has agreed to play a large part in the “North Sea Offshore Grid” wind power project in league with Ireland, Germany, Denmark, Sweden, The Netherlands, Belgium and France. And Luxembourg, strangely, although it doesn’t have a coast. Unlike new nuclear power, which could be decades in construction, offshore and onshore wind in Europe can be quick-build. If you want new power, you pick wind and solar. And, despite policy fumbles, this is happening. Actually, in the end, who really cares about subsidies for renewable energy, when the most capital-heavy organisations in the world start backing renewable power ? In some ways, I don’t care who brings me low carbon energy, and I don’t care if I have to pay for it through my tax or my bills, I just want it to happen. OK, offshore wind power is for the big boys, and you’re never going to get a diversity of suppliers with this project, and the dreams of decentralised energy are vapours, whisked away by giant engineering firms, but at least renewable energy is going to happen. One day people will realise that for the newspapers to rehearse the arguments of High Net Worth Individuals, and for sheep-like energy ministers to complain about onshore wind power and solar farms, is just a way to keep small electricity generators out of the energy markets, and allow the incumbent energy players to keep making profits. But when the need for a multiplicity of small energy installations becomes critical, I think this tune will change.

    I can see all this. But, because I am not a spin meister, or spin meistress, or a campaigner, I’m not going to be crafting fine messages to share with my networks on this particular subject. I did start (see below), but then I thought better of it. I dislike the use of social media, web logging and journalism to push an agenda. The trouble is, I know that the people who are vehemently against the European endeavour have so many trigger arguments tested and ready to deploy, such as : immigration, regulations, budgetary demands. None of these stand up to scutiny, but they are very easy props on which to deploy Corpse Factory scares and scandals, up there with the War on Terror. The pro-European segment of the population always stays so silent. If there were to be a Referendum on Europe today, I can pretty much guarantee a kneejerk exit. The British public act collectively by reflex. They never re-analyse their position. They mob, gang and plunder.

    I don’t think pro-Europe organisations know how to sell Europe. But they shouldn’t need to “sell” Europe. European membership should be an obvious best choice. So why should I try to talk up Europe ? I couldn’t have any influence, as one lone voice, against the Daily Mails, Daily Expresses and Daily Telegraphs of this world. And anyway, it’s not really my fight to fight. I don’t have a job title that reads “arch propagandist”. I am not that person. It does not become me. I prefer straight-talking, not mind-bending.

    I won’t get invited back. That’s just fine. I am not a volunteer campaigner. I’m not a political pusher. I’ve only played the role of “evangelist” on climate change, renewable energy and good policy because sometimes there is little else I can think of that might help or make a difference. But I don’t have any influence. And I don’t want any. I am just going to continue telling it the way I see it. Giving my perspective. I cannot guarantee any outcomes. And anyway, I prefer democratic engagement over salesmanship. Don’t ask me to sell your ideas, your policies, your projections. I don’t want to.

    Full membership of the European Union is the logical option for the United Kingdom, no matter how many tired dead donkey corpses the rabid tabloid media keep digging up to appall us all. Sooner or later, we also need to consider joining the Euro currency, and I predict we will, but I’m not your convincer on that argument, either.




    “What has Europe ever done for us ?”

    Common Climate : Common Cause : Common Market

    On climate change, the United Kingdom has secured the Climate Change Act, legislation with broad-based support across all political parties. The UK shares the concerns of other European countries about the potential risks and impacts from climate change in our geographical region. Society-level change in response to climate change includes energy change – changing the sources and use of energy – and changing policies for land use to include planting forests and energy crops. Within the European Community, the UK has worked to secure region-wide legislation on renewable energy, energy efficiency, waste control and air quality. All of these contribute to the response to climate change, and have developed action on climate change into a common cause. In addition to regulatory change, the European Community is seeking to develop trading mechanisms to enable carbon dioxide emissions control, and it working to develop a common market in carbon.

    Common Future : Common Purpose : Common Interest

    Common Values : Common Opportunities : Common Voice

    Common Security : Common Goals : Common Networks

    Common Infrastructure : Common Society : Common Protection

    Common Standards : Common Framework : Common Development

  • Climbing the Concern Ladder

    Posted on October 25th, 2014 Jo No comments

    How do we get things changed in a democracy ? The model of political campaigning that has been established over the last century is failing us. In the past, if there was a problem, a small group of people could create a fuss about it, march some placards to somewhere relevant, write some letters, talk to some dignitaries, chain themselves to some railings, occupy a lobby, get some press, and after some years, maybe, get something done.

    These days there are just too many complaints for them all to be heard. Philanthropic, charitable and political messages crowd the stage. In this age of social media, the campaign metaphor has been replaced by a ladder of concern. Concern is expressed. Hopefully others will find that they too are sufficiently concerned, and reflect that concern through some medium. And slowly, it is hoped, this concern climbs the ladder of attention, until it is visible, audible. The entitled and endowed middle classes catch the concern, and repeat it. Lots of emails fly. George Monbiot writes about it in The Guardian. Some speeches are made at serious meetings. Angelina Jolie is invited to grace a conference. And then, hopefully, this concern hits the people who have some kind of leverage over the problem, and they act.

    Action is almost guaranteed if the concern is the result of a specific outrage, committed by a specific person or group, and has a specific solution. But otherwise, who knows ? How universal and impactful does a concern need to be before it gets acted upon ? And surely some things don’t need campaigns, because the governments already know enough about problems such as people trafficking, slavery, animal welfare, crime and torture ? After all, things such as prostitution and illegal drug trade are included in national economic statistics.

    I took public transport today in London and I was doused in outrage pouring from advertisements asking for charitable giving to prevent the inhuman practice of Female Genital Mutilation (FGM). As I read these appeals, I felt two overwhelming sensations – one of intense anger that children are being permanently injured because of insane and unjustifiable, hateful beliefs about female sexuality. And a second feeling of dragging despair that giving a small donation every month to this organisation would have very little impact on abusive culture, which leads to many forms of violation, not just the unimaginably painful and destructive incision and even resection of a child’s clitoris and the sewing together of her labia, leading to permanent nerve damage, lasting wounds, loss of sexual function, complications from incontinence, ruined relationships, injuries from sexual intercourse, and serious medical risks during childbirth, and possibly the need for reconstructive surgery.

    This is a problem which cannot be fixed by expressing normal murmurs of concern, building a wave of concern that climbs a ladder of concern, or making monthly token charitable payments. This concern is not susceptible to a campaign. What this problem needs is regulation, legislation, policing. This concern shouldn’t have to compete with all the other concerns out there, like distressed retired donkeys, threatened butterflies, meltdown polar bears, de-forested orangutans and by-catch dolphins. Some things just shouldn’t happen. They just shouldn’t be tolerated. And they shouldn’t be lost amongst an avalanche of other concerns. This problem is so serious that it should be an automatic priority for all the authorities, co-ordinating to detect and prevent it. This concern shouldn’t have to campaign for funds. Or attention.

    Switch to BBC News. Roger Harrabin reports that “The UK’s chief scientist says the oceans face a serious and growing risk from man-made carbon emissions. [...] Sir Mark Walport warns that the acidity of the oceans has increased by about 25% since the industrial revolution, mainly thanks to manmade emissions. [...] He told BBC News: “If we carry on emitting CO2 [carbon dioxide] at the same rate, ocean acidification will create substantial risks to complex marine food webs and ecosystems.” [...] The consequences of acidification are likely to be made worse by the warming of the ocean expected with climate change, a process which is also driven by CO2.”

    Media Lens Editors reported this piece. My reaction was – who would be paying attention to this ? This is not the “dangerous climate change comes from global warming” story, this is the “other” carbon problem, the decimation of marine productivity and the whole pyramid of life, resulting from increasing levels of dissolved carbon dioxide in seawater because of higher levels of carbon dioxide in the air. The overwhelmingly major causes of this problem are irrefutably and definitely fossil fuel combustion, and its seriousness is hard to deny, even though Roger Harrabin attempts to make light of it by devoting column inches to a laboratory crab who isn’t getting with the programme.

    Ocean acidification is a concern that shouldn’t get lost in amongst other concerns. It should be paid serious levels of attention. And not just by middle class philanthropists who work for non-governmental organisations and charities. And yet, cursory analysis of the segmentation of the population who treat BBC News as a main and trusted information source may suggest that the only readers who would act on this piece are exactly these middle class charity staff, or at a push, retired middle class charity staff.

    My Media Lens comment was, “Right expert. Right message. Wrong audience. Wrong medium. The UK Government’s chief scientist. OK. Good. Ocean acidification. OK. Good. No quibbles about whether or not extra carbon dioxide in the atmosphere is a real problem or not (as known as “climate change” or “global warming”, which is real by the way). The BBC News. Wrong medium. Wrong audience. The only people going to listen to this are those who already know about the problem but are still as powerless to act as they were yesterday. The UK Government should present this information to the oil, gas and coal companies with a polite request for them to unveil their plan of action in the face of this undeniable problem.”

    There is no reason why this story should be covered in BBC News by Roger Harrabin. What can anybody reading it do about the problem ? There is no purpose for this article. It is a pointless statement of concern, or rather, a belittling rehearsal of the concern. Unless this article, and the thousands like it, lead to the Government demanding answers on Energy Change from the fossil fuel companies, there is no point in reporting it, or in this case, disparaging it with faint humour.

    The only time that ocean acidification should appear in a media piece is to report that the problem has been presented to the architects of increased ocean carbon dioxide, and answers have been requested.

    And who are the architects of increased atmospheric and ocean carbon dioxide ? Those who mine fossil fuels. Those companies like BP and Shell, ExxonMobil, and all the coal extraction companies should act. They should offer us alternative non-fossil fuel energy. And the news should be about how these companies are taking action to offer us Renewable Hydrogen, Renewable Methane, solar power, wind power and Zero Carbon transport fuels.

    Answers from the past will simply not do. Trying to assert that somebody needs to pay for pollution won’t prevent pollution occurring. Carbon taxes or carbon pricing won’t work – since they won’t prevent the mining of fossil fuels – and if fossil fuels are mined, of course they will be burned. Carbon combustion quotas won’t work – since economic wealth is based on burning carbon, so many forces will conspire to maintain levels of fossil fuel combustion. Carbon mining quotas won’t work, since the forces for increasing mining quotas are strong. Carbon trading won’t work, since it won’t reduce the amount of fossil fuels mined – because, obviously, if fossil fuels are mined, they will be burned.

    I am tired of reading about climate change, global warming, freshwater stress and ocean acidification in the news. It seems there is nothing I can do that I have not already done that can provide a solution to these problems. Enough with communicating the disaster. I want to read about engineering and energy companies who have switched business models to producing Zero Carbon energy. I want to hear how energy security concern is taking oil, gas and coal companies towards Renewable Everything.

  • On Not Setting The Proper Tone

    Posted on May 28th, 2014 Jo No comments

    So, I turned up for a national Climate Change campaigning and lobbying day some years ago. I had offered to steward at the event. My attire concerned one of those close to the organising team. After all, there were Members of Parliament due to attend, and Gentlemen and Ladies of the Press. “I don’t think it’s quite setting the right tone.” she commented.

    Well, I want to know what the right tone is, exactly. And I don’t think anybody else does, either. How do we make change happen ? Really ?

    I’ve just received another email missive from The Climate Coalition asking me to Tweet tomorrow about the Carbon Budget.

    “As you may remember, back in 2011 we successfully fought for the government to deliver on its climate targets by adopting the Committee on Climate Change’s (CCC) recommendations on the 4th Carbon Budget…”

    I mean, that’s a bit of a claim to start with. I very much doubt that anything that the Climate Coalition (or Stop Climate Chaos, as they were known in 2011) did had any bearing on the UK Government’s policy- or decision-making.

    “…That decision is currently up for review and we need to make sure the government sticks to the ambition it showed 3 years ago, starting with a Twitter love in this Thursday.”

    I beg your pardon ? How can The Climate Coalition make sure the UK Government does anything ? By Tweeting ? OK, so The Climate Coalition is an umbrella organisation of over 40 organisations, ostensibly representing over 11 million people, but it doesn’t have any real political weight, or any serious influence with The Treasury, who are normally the ones resisting the development of the green economy.

    “…We’ve heard rumours that this is currently being negotiated in government, with at least some arguing for weaker targets. We don’t know yet which way it’ll go, so David Cameron and Nick Clegg might just need a bit of support from us to make the right decision and stick to our current targets…”

    So this is what it’s all about – a show of support for the UK Government !

    So, tell me, why should I join in, exactly ? I won’t be having any kind of genuine impact. It’s just a token flag-waving exercise.

    I know I’m not setting the right tone, here. I’m challenging the proposals for action from one of the country’s largest collective groups with a clear position about climate change. But that’s because it’s a washout – there is nothing to be gained by responding to this appeal to Tweet.

    I mean, if they called for the whole 11 million people to do something actually meaningful, like withdraw their labour for one hour a day, or refuse to use household appliances for 8 hours a week, or all demand a meeting with the fossil fuel producing companies asking them what their plan is to decarbonise the energy supply, then I suppose that might be something worth trying.

    But Tweeting ? In support of a Government decision that they ought to make anyway based on the existing Climate Change Law and the science ? Why would they need me to join in with them on that ?

  • This Too Will Fail

    Posted on May 24th, 2014 Jo 1 comment

    I will probably fail to make myself understood, yet again, but here goes…

    The reasons the United Nations Climate Change process is failing are :-

    1.   The wrong people are being asked to shoulder responsibility

    It is a well-rumoured possibility that the fossil fuel industry makes sure it has sympathisers and lobbyists at the United Nations Framework Convention on Climate Change (UNFCCC) conferences. It is only natural that they should want to monitor proceedings, and influence outcomes. But interventions by the energy sector has a much wider scope. Delegates from the countries with national oil and gas companies are key actors at UNFCCC conferences. Their national interests are closely bound to their fossil fuel exports. Many other countries understand their national interest is bound to the success of energy sector companies operating within their borders. Still others have governments with energy policy virtually dictated by international energy corporations. Yet when the UNFCCC discusses climate change, the only obligations discussed are those of nations – the parties to any treaty are the governments and regimes of the world. The UNFCCC does not hold oil and gas (and coal) companies to account. BP and Shell (and Exxon and Chevron and Total and GDF Suez and Eni and so on) are not asked to make undertakings at the annual climate talks. Governments are hoped to forge a treaty, but this treaty will create no leverage for change; no framework of accountability amongst those who produce oil, gas and coal.

    2.   The right people are not in the room

    It’s all very well for Governments to commit to a treaty, but they cannot implement it. Yes, their citizens can make a certain amount of changes, and reduce their carbon emissions through controlling their energy consumption and their material acquisitions. But that’s not the whole story. Energy has to be decarbonised at source. There are technological solutions to climate change, and they require the deployment of renewable energy systems. The people who can implement renewable energy schemes should be part of the UNFCCC process; the engineering companies who make wind turbines, solar photovoltaic panels, the people who can build Renewable Gas systems. Companies such as Siemens, GE, Alstom. Energy engineering project companies. Chemical engineering companies.

    3.   The economists are still in the building

    In the United Kingdom (what will we call it if Scotland becomes independent ? And what will the word “British” then mean ?) the Parliament passed the Climate Change Act. But this legislation is meaningless without a means to implement the Carbon Budgets it institutes. The British example is just a minor parallel to the UNFCCC situation – how can a global climate treaty be made to work ? Most of the notions the economists have put forward so far to incentivise energy demand reduction and stimulate low carbon energy production have failed to achieve much. Carbon trading ! Carbon pricing ! All rather ineffective. Plus, there’s the residual notion of different treatment for developed and developing nations, which is a road to nowhere.

    4.   Unilateral action is frowned upon

    Apparently, since Climate Change is a global problem, we all have to act in a united fashion to solve it. But that’s too hard to ask, at least to start with. When countries or regions take it upon themselves to act independently, the policy community seem to counsel against it. There are a few exceptions, such as the C40 process, where individual cities are praised for independent action, but as soon as the European Community sets up something that looks like a border tax on carbon, that’s a no-no. Everybody is asked to be part of a global process, but it’s almost too hard to get anything done within this framework.

    5.   Civil Society is hamstrung and tongue-tied

    There is very little that people groups can achieve within the UNFCCC process, because there is a disconnect between the negotiations and practical action. The framework of the treaty discussions does not encompass the real change makers. The UNFCCC does not build the foundation for the architecture of a new green economy, because it only addresses itself to garnering commitments from parties that cannot fulfill them. Civil Society ask for an egg sandwich and they are given a sandy eggshell. If Civil Society groups call for technology, they are given a carbon credit framework. If they call for differential investment strategies that can discredit carbon dependency, they are given an opportunity to put money into the global adaptation fund.

  • Positively Against Negative Campaigning

    Posted on May 24th, 2014 Jo 4 comments

    How to organise a political campaign around Climate Change : ask a group of well-fed, well-meaning, Guardian-reading, philanthropic do-gooders into the room to adopt the lowest common denominator action plan. Now, as a well-fed, well-meaning, Guardian-reading (well, sometimes), philanthropic do-gooder myself, I can expect to be invited to attend such meetings on a regular basis. And always, I find myself frustrated by the outcomes : the same insipid (but with well-designed artwork) calls to our publics and networks to support something with an email registration, a signed postcard, a fistful of dollars, a visit to a public meeting of no consequence, or a letter to our democratic representative. No output except maybe some numbers. Numbers to support a government decision, perhaps, or numbers to indicate what kind of messaging people need in future.

    I mean, with the Fair Trade campaign, at least there was some kind of real outcome. Trade Justice advocates manned stall tables at churches, local venues, public events, and got money flowing to the international co-operatives, building up the trade, making the projects happen, providing schooling and health and aspirations in the target countries. But compare that to the Make Poverty History campaign which was largely run to support a vain top-level political attempt to garner international funding promises for social, health and economic development. Too big to succeed. No direct line between supporting the campaign and actually supporting the targets. Passing round the hat to developed, industrialised countries for a fund to support change in developing, over-exploited countries just isn’t going to work. Lord Nicholas Stern tried to ask for $100 billion a year by 2020 for Climate Change adaptation. This has skidded to a halt, as far as I know. The economic upheavals, don’t you know ?

    And here we are again. The United Nations Framework Convention on Climate Change (UNFCCC), which launched the Intergovernmental Panel on Climate Change (IPCC) reports on climate change, oh, so, long, ago, through the person of its most charismatic and approachable Executive Secretary, Christiana Figueres, is calling for support for a global Climate Change treaty in 2015. Elements of this treaty, being drafted this year, will, no doubt, use the policy memes of the past – passing round the titfer begging for a couple of billion squid for poor, hungry people suffering from floods and droughts; proposing some kind of carbon pricing/taxing/trading scheme to conjure accounting bean solutions; trying to implement an agreement around parts per million by volume of atmospheric carbon dioxide; trying to divide the carbon cake between the rich and the poor.

    Somehow, we believe, that being united around this proposed treaty, few of which have any control over the contents of, will bring us progress.

    What can any of us do to really have input into the building of a viable future ? Christiana – for she is now known frequently only by her first name – has called for numbers – a measure of support for the United Nations process. She has also let it be known that if there is a substantial number of people who, with their organisations, take their investments out of fossil fuels, then this could contribute to the mood of the moment. Those who are advocating divestment are yet small in number, and I fear that they will continue to be marginal, partly because of the language that is being used.

    First of all, there are the Carbon Disclosers. Their approach is to conjure a spectre of the “Carbon Bubble” – making a case that investments in carbon dioxide-rich enterprises could well end up being stranded by their assets, either because of wrong assumptions about viable remaining resources of fossil fuels, or because of wrong assumptions about the inability of governments to institute carbon pricing. Well, obviously, governments will find it hard to implement effective carbon pricing, because governments are in bed with the energy industry. Politically, governments need to keep big industry sweet. No surprise there. And it’s in everybody’s interests if Emperor Oil and Prince Regent Natural Gas are still wearing clothes. In the minds of the energy industry, we still have a good four decades of healthy fossil fuel assets. Royal Dutch Shell’s CEO can therefore confidently say at a public AGM that There Is No Carbon Bubble. The Carbon Discloser language is not working, it seems, as any kind of convincer, except to a small core of the concerned.

    And then there are the Carbon Voices. These are the people reached by email campaigns who have no real idea how to do anything practical to affect change on carbon dioxide emissions, but they have been touched by the message of the risks of climate change and they want to be seen to be supporting action, although it’s not clear what action will, or indeed can, be taken. Well-designed brochures printed on stiff recycled paper with non-toxic inks will pour through their doors and Inboxes. Tick it. Send it back. Sign it. Send it on. Maybe even send some cash to support the campaign. This language is not achieving anything except guilt.

    And then there are the Carbon Divestors. These are extremely small marginal voices who are taking a firm stand on where their organisations invest their capital. The language is utterly dated. The fossil fuel industry are evil, apparently, and investing in fossil fuels is immoral. It is negative campaigning, and I don’t think it stands a chance of making real change. It will not achieve its goal of being prophetic in nature – bearing witness to the future – because of the non-inclusive language. Carbon Voices reached by Carbon Divestor messages will in the main refuse to respond, I feel.

    Political action on Climate Change, and by that I mean real action based on solid decisions, often taken by individuals or small groups, has so far been under-the-radar, under-the-counter, much like the Fair Trade campaign was until it burst forth into the glorious day of social acceptability and supermarket supply chains. You have the cyclists, the Transition Towners, the solar power enthusiasts. Yet to get real, significant, economic-scale transition, you need Energy Change – that is, a total transformation of the energy supply and use systems. It’s all very well for a small group of Methodist churches to pull their pension funds from investments in BP and Shell, but it’s another thing entirely to engage BP and Shell in an action plan to diversify out of petroleum oil and Natural Gas.

    Here below are my email words in my feeble attempt to challenge the brain of Britain’s charitable campaigns on what exactly is intended for the rallying cry leading up to Paris 2015. I can pretty much guarantee you won’t like it – but you have to remember – I’m not breaking ranks, I’m trying to get beyond the Climate Change campaigning and lobbying that is currently in play, which I regard as ineffective. I don’t expect a miraculous breakthrough in communication, the least I can do is sow the seed of an alternative. I expect I could be dis-invited from the NGO party, but it doesn’t appear to be a really open forum, merely a token consultation to build up energy for a plan already decided. If so, there are probably more important things I could be doing with my time than wasting hours and hours and so much effort on somebody else’s insipid and vapid agenda.

    I expect people might find that attitude upsetting. If so, you know, I still love you all, but you need to do better.


    [...]

    A lot of campaigning over the last 30 years has been very negative and divisive, and frequently ends in psychological stalemate. Those who are cast as the Bad Guys cannot respond to the campaigning because they cannot admit to their supporters/employees/shareholders that the campaigners are “right”. Joe Average cannot support a negative campaign as there is no apparent way to make change happen by being so oppositional, and because the ask is too difficult, impractical, insupportable. [Or there is simply too much confusion or cognitive dissonance.]

    One of the things that was brought back from the [...] working group breakout on [...] to the plenary feedback session was that there should be some positive things about this campaign on future-appropriate investment. I think [...] mentioned the obvious one of saying effectively “we are backing out of these investments in order to invest in things that are more in line with our values” – with the implicit encouragement for fossil fuel companies to demonstrate that they can be in line with our values and that they are moving towards that. There was some discussion that there are no bulk Good Guy investment funds, that people couldn’t move investments in bulk, although some said there are. [...] mentioned Ethex.

    Clearly fossil fuel production companies are going to find it hard to switch from oil and gas to renewable electricity, so that’s not a doable we can ask them for. Several large fossil fuel companies, such as BP, have tried doing wind and solar power, but they have either shuttered those business units, or not let them replace their fossil fuel activities.

    [...] asked if the [divestment] campaign included a call for CCS – Carbon Capture and Storage – and [...] referred to [...] which showed where CCS is listed in a box on indicators of a “good” fossil fuel energy company.

    I questioned whether the fossil fuel companies really want to do CCS – and that they have simply been waiting for government subsidies or demonstration funds to do it. (And anyway, you can’t do CCS on a car.)

    I think I said in the meeting that fossil fuel producer companies can save themselves and save the planet by adopting Renewable Gas – so methods for Carbon Capture and Utilisation (CCU) or “carbon recycling”. Plus, they could be making low carbon gas by using biomass inputs. Most of the kit they need is already widely installed at petrorefineries. So – they get to keep producing gas and oil, but it’s renewably and sustainably sourced with low net carbon dioxide emissions. That could be turned into a positive, collaborative ask, I reckon, because we could all invest in that, the fossil fuel companies and their shareholders.

    Anyway, I hope you did record something urging a call to positive action and positive engagement, because we need the co-operation of the fossil fuel companies to make appropriate levels of change to the energy system. Either that, or they go out of business and we face social turmoil.

    If you don’t understand why this is relevant, that’s OK. If you don’t understand why a straight negative campaign is a turn-off to many people (including those in the fossil fuel industry), well, I could role play that with you. If you don’t understand what I’m talking about when I talk about Renewable Gas, come and talk to me about it again in 5 years, when it should be common knowledge. If you don’t understand why I am encouraging positive collaboration, when negative campaigning is so popular and marketable to your core segments, then I will resort to the definition of insanity – which is to keep doing the same things, expecting a different result.

    I’m sick and tired of negative campaigning. Isn’t there a more productive thing to be doing ?

    There are no enemies. There are no enemies. There are no enemies.

    ——-

    As far as I understand the situation, both the [...] and [...] campaigns are negative. They don’t appear to offer any positive routes out of the problem that could engage the fossil fuel companies in taking up the baton of Energy Change. If that is indeed the main focus of [...] and [...] efforts, then I fear they will fail. Their work will simply be a repeat of the negative campaigning of the last 30 years – a small niche group will take up now-digital placards and deploy righteous, holy social media anger, and that will be all.

    Since you understand this problem, then I would suggest you could spend more time and trouble helping them to see a new way. You are, after all, a communications expert. And so you know that even Adolf Hitler used positive, convening, gathering techniques of propaganda to create power – and reserved the negative campaigning for easily-marginalised vulnerable groups to pile the bile and blame on.

    Have a nicer day,

    —–

    The important thing as far as I understand it is that the “campaigning” organisations need to offer well-researched alternatives, instead of just complaining about the way things are. And these well-researched alternatives should not just be the token sops flung at the NGOs and UN by the fossil fuel companies. What do I mean ?

    Well, let’s take Carbon Capture and Storage (CCS). The injection of carbon dioxide into old oil and gas caverns was originally proposed for Enhanced Oil Recovery (EOR) – that is – getting more oil and gas out the ground by pumping gas down there – a bit like fracking, but with gas instead of liquid. The idea was that the expense of CCS would be compensated for by the new production of oil and gas – however, the CCS EOR effect has shown to be only temporary. So now the major oil and gas companies say they support carbon pricing (either by taxation or trading), to make CCS move forward. States and federations have given them money to do it. I think the evidence shows that carbon pricing cannot be implemented at a sufficiently high level to incentivise CCS, therefore CCS is a non-answer. Why has [...] not investigated this ? CCS is a meme, but not necessarily part of the carbon dioxide solution. Not even the UNFCCC IPCC reports reckon that much CCS can be done before 2040. So, why does CCS appear in the [...] criteria for a “good” fossil fuel company ? Because it’s sufficiently weak as a proposal, and sufficiently far enough ahead that the fossil fuel companies can claim they are “capture ready”, and in the Good Book, but in reality are doing nothing.

    Non-starters don’t just appear from fossil fuel companies. From my point of view, another example of running at and latching on to things that cannot help was the support of the GDR – Greenhouse Development Rights, of which there has been severe critique in policy circles, but the NGOs just wrote it into their policy proposals without thinking about it. There is no way that the emissions budgets set out in the GDR policy could ever get put into practice. For a start, there is no real economic reason to divide the world into developing and developed nations (Kyoto [Protocol]‘s Annex I and Annex II).

    If you give me some links, I’m going to look over your [...] and think about it.

    I think that if a campaign really wants to get anywhere with fossil fuel companies, instead of being shunted into a siding, it needs to know properly what the zero carbon transition pathways really are. Unequal partners do not make for a productive engagement, I reckon.

    —–

    I’m sorry to say that this still appears to be negative campaigning – fossil fuel companies are “bad”; and we need to pull our money out of fossil fuel companies and put it in other “good” companies. Where’s the collective, co-operative effort undertaken with the fossil fuel companies ? What’s your proposal for helping to support them in evolving ? Do you know how they can technologically transition from using fossil fuels to non-fossil fuels ? And how are you communicating that with them ?

    ——

    They call me the “Paradigm Buster”. I’m not sure if “the group” is open to even just peeking into that kind of approach, let alone “exploring” it. The action points on the corporate agenda could so easily slip back into the methods and styles of the past. Identify a suffering group. Build a theory of justice. Demand reparation. Make Poverty History clearly had its victims and its saviours. Climate change, in my view, requires a far different treatment. Polar bears cannot substitute for starving African children. And not even when climate change makes African children starve, can they inspire the kind of action that climate change demands. A boycott campaign without a genuine alternative will only touch a small demographic. Whatever “the group” agrees to do, I want it to succeed, but by rehashing the campaigning strategies and psychology of the past, I fear it will fail. Even by adopting the most recent thinking on change, such as Common Cause, [it] is not going to surmount the difficulties of trying to base calls to action on the basis of us-and-them thinking – polar thinking – the good guys versus the bad guys – the body politic David versus the fossil fuel company Goliath. By challenging this, I risk alienation, but I am bound to adhere to what I see as the truth. Climate change is not like any other disaster, aid or emergency campaign. You can’t just put your money in the [collecting tin] and pray the problem will go away with the help of the right agencies. Complaining about the “Carbon Bubble” and pulling your savings from fossil fuels is not going to re-orient the oil and gas companies. The routes to effective change require a much more comprehensive structure of actions. And far more engagement that agreeing to be a flag waver for whichever Government policy is on the table. I suppose it’s too much to ask to see some representation from the energy industry in “the group”, or at least [...] leaders who still believe in the fossil fuel narratives, to take into account their agenda and their perspective, and a readiness to try positive collaborative change with all the relevant stakeholders ?


    Academic Freedom, Advancing Africa, Alchemical, Artistic Licence, Assets not Liabilities, Bait & Switch, Be Prepared, Behaviour Changeling, Big Number, Big Picture, Big Society, Carbon Army, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Rationing, Carbon Recycling, Carbon Taxatious, Change Management, Climate Change, Climate Chaos, Climate Damages, Conflict of Interest, Contraction & Convergence, Corporate Pressure, Dead End, Dead Zone, Deal Breakers, Demoticratica, Design Matters, Direction of Travel, Disturbing Trends, Divide & Rule, Dreamworld Economics, Droughtbowl, Earthquake, Eating & Drinking, Economic Implosion, Electrificandum, Energy Autonomy, Energy Calculation, Energy Change, Energy Crunch, Energy Denial, Energy Insecurity, Energy Revival, Energy Socialism, Engineering Marvel, Evil Opposition, Extreme Energy, Feed the World, Feel Gooder, Financiers of the Apocalypse, Floodstorm, Food Insecurity, Foreign Interference, Foreign Investment, Fossilised Fuels, Fuel Poverty, Gamechanger, Global Warming, Green Gas, Green Investment, Green Power, Growth Paradigm, Human Nurture, Hydrocarbon Hegemony, Incalculable Disaster, Insulation, Libertarian Liberalism, Low Carbon Life, Mad Mad World, Major Shift, Marvellous Wonderful, Mass Propaganda, Media, Meltdown, Money Sings, National Energy, National Power, Near-Natural Disaster, Neverending Disaster, Not In My Name, Nudge & Budge, Optimistic Generation, Orwells, Paradigm Shapeshifter, Peace not War, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Peak Oil, Pet Peeves, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Pure Hollywood, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Revolving Door, Social Capital, Social Change, Social Chaos, Social Democracy, Solar Sunrise, Solution City, Stirring Stuff, Sustainable Deferment, Technofix, Technological Sideshow, The Myth of Innovation, The Power of Intention, The Price of Gas, The Price of Oil, The Right Chemistry, The Science of Communitagion, The War on Error, Toxic Hazard, Tree Family, Unconventional Foul, Unqualified Opinion, Unsolicited Advice & Guidance, Unutterably Useless, Utter Futility, Vain Hope, Vote Loser, Western Hedge, Wind of Fortune, Zero Net
  • Christiana Figueres : Love Bug

    Posted on May 7th, 2014 Jo No comments

    It was probably a side-effect of the flu’, but as I was listening to Christiana Figueres speaking at St Paul’s Cathedral, London, this evening, I started to have tunnel vision, and the rest of the “hallowed halls” just melted away, and I felt she was speaking to me individually, woman to woman.

    She talked a lot about investments, injustices and inertia, but I felt like she was personally calling me, nagging me, bugging me to show more love. She said she didn’t want us to leave thinking “That was interesting”, or even “That was inspiring”, but that we would leave resolved to do one more concrete thing to show our love for our world, and our fellow human beings.

    I was a little defensive inside – I’m already trying to get some big stuff done – how could I do anything else that could be effective ? She said that we couldn’t ask people to do more if we weren’t prepared to do more ourselves. I wasn’t sure that any of the things she suggested I could try would have any impact, but I suppose I could try again to write to my MP Iain Duncan Smith – after all, Private Eye tells me he’s just hired a communications consultant, so he might be willing to communicate with me about climate change, perhaps.

    Of her other suggestions, I have already selected investments that are low carbon, so there would be little point in writing to them about carbon-based “stranded assets”. My diet is very largely vegetarian; I buy food and provisions from co-operatives where I can; I don’t own a car; I’ve given up flying; I’ve installed solar electricity; my energy consumption is much lower than average; I buy secondhand; I reuse, repair, reclaim, recycle.

    I don’t want to “campaign” on climate change – I don’t think that would be very loving. This should not be a public relations mission, it needs to be authentic and inclusive, so I don’t know what the best way is to engage more people in “the struggle”. I’ve sent enough email in my life. People already know about climate change, I don’t need to evangelise them. They already know some of the things they could do to mitigate their fossil fuel energy consumption, I don’t need to educate them. The organisations that are still pushing fossil fuels to society have more to do to get with the transition than everyday energy consumers, surely ?

    So, how is it that this “love bug” bites me ? What do I feel bugged to be getting on with ? Researching low carbon gas energy systems is my main action at the moment, but what could I do that would be an answer to Christiana’s call for me to do something extra ? Join in the monthly fast and prayer that’s due to start on 1st November ? Well, sure I will, as part of my work duties. Network for Our Voices that will funnel the energy of the monthly call to prayer into a Civil Society “tornado” in support of the UNFCCC Paris Treaty ? Yes, of course. Comes with the territory. But more… ?

    I noticed that Christiana Figueres had collegiate competition from the bells of St Paul’s, and it sounded like the whole cathedral was ringing. Then my cough started getting bad and I started to feel quite unwell, so I had to leave before the main debate took place, to medicate myself with some fresh orange juice from a company I chose because it tracks its carbon, and has a proper plan for climate sustainability, so I never answered my question – what do I need to do, to do more about climate change ?

  • All Kinds of Gas

    Posted on May 2nd, 2014 Jo No comments

    Amongst the chink-clink of wine glasses at yesterday evening’s Open Cities Green Sky Thinking Max Fordham event, I find myself supping a high ball orange juice with an engineer who does energy retrofits – more precisely – heat retrofits. “Yeah. Drilling holes in Grade I Listed walls for the District Heating pipework is quite nervewracking, as you can imagine. When they said they wanted to put an energy centre deep underneath the building, I asked them, “Where are you going to put the flue ?””

    Our attention turns to heat metering. We discuss cases we know of where people have installed metering underground on new developments and fitted them with Internet gateways and then found that as the rest of the buildings get completed, the meter can no longer speak to the world. The problems of radio-meets-thick-concrete and radio-in-a-steel-cage. We agree that anybody installing a remote wifi type communications system on metering should be obliged in the contract to re-commission it every year.

    And then we move on to shale gas. “The United States of America could become fuel-independent within ten years”, says my correspondent. I fake yawn. It really is tragic how some people believe lies that big. “There’s no way that’s going to happen !”, I assert.

    “Look,” I say, (jumping over the thorny question of Albertan syncrude, which is technically Canadian, not American), “The only reason there’s been strong growth in shale gas production is because there was a huge burst in shale gas drilling, and now it’s been shown to be uneconomic, the boom has busted. Even the Energy Information Administration is not predicting strong growth in shale gas. They’re looking at growth in coalbed methane, after some years. And the Arctic.” “The Arctic ?”, chimes in Party Number 3. “Yes,” I clarify, “Brought to you in association with Canada. Shale gas is a non-starter in Europe. I always think back to the USGS. They estimate that the total resource in the whole of Europe is a whole order of magnitude, that is, ten times smaller than it is in Northern America.” “And I should have thought you couldn’t have the same kind of drilling in Europe because of the population density ?”, chips in Party Number 3. “They’re going to be drilling a lot of empty holes,” I add, “the “sweet spot” problem means they’re only likely to have good production in a few areas. And I’m not a geologist, but there’s the stratigraphy and the kind of shale we have here – it’s just not the same as in the USA.” Parties Number 2 and 3 look vaguely amenable to this line of argument. “And the problems that we think we know about are not the real problems,” I out-on-a-limbed. “The shale gas drillers will probably give up on hydraulic fracturing of low density shale formations, which will appease the environmentalists, but then they will go for drilling coal lenses and seams inside and alongside the shales, where there’s potential for high volumes of free gas just waiting to pop out. And that could cause serious problems if the pressures are high – subsidence, and so on. Even then, I cannot see how production could be very high, and it’s going to take some time for it to come on-stream…” “…about 10 years,” says Party Number 2.

    “Just think about who is going for shale gas in the UK,” I ventured, “Not the big boys. They’ve stood back and let the little guys come in to drill for shale gas. I mean, BP did a bunch of onshore seismic surveys in the 1950s, after which they went drilling offshore in the North Sea, so I think that says it all, really. They know there’s not much gas on land.” There were some raised eyebrows, as if to say, well, perhaps seismic surveys are better these days, but there was agreement that shale gas will come on slowly.

    “I don’t think shale gas can contribute to energy security for at least a decade,” I claimed, “even if there’s anything really there. Shale gas is not going to answer the problems of the loss of nuclear generation, or the problems of gas-fired generation becoming uneconomic because of the strong growth in renewables.” There was a nodding of heads.

    “I think,” I said, “We should forget subsidies. UK plc ought to purchase a couple of CCGTS [Combined Cycle Gas Turbine electricity generation units]. That will guarantee they stay running to load balance the power grid when we need them to. Although the UK’s Capacity Mechanism plan is in line with the European Union’s plans for supporting gas-fired generation, it’s not achieving anything yet.” I added that we needed to continue building as much wind power as possible, as it’s quick to put in place. I quite liked my radical little proposal for energy security, and the people I was talking with did not object.

    There was some discussion about Green Party policy on the ownership of energy utilities, and how energy and transport networks are basically in the hands of the State, but then Party Number 2 said, “What we really need is consistency of policy. We need an Energy Bill that doesn’t get gutted by a change of administration. I might need to vote Conservative, because Labour would mess around with policy.” “I don’t know,” I said, “it’s going to get messed with whoever is in power. All those people at DECC working on the Electricity Market Reform – they all disappeared. Says something, doesn’t it ?”

    I spoke to Parties Number 2 and 3 about my research into the potential for low carbon gas. “Basically, making gas as a kind of energy storage ?”, queried Party Number 2. I agreed, but omitted to tell him about Germany’s Power-to-Gas Strategy. We agreed that it would be at least a decade before much could come of these technologies, so it wouldn’t contribute immediately to energy security. “But then,” I said, “We have to look at the other end of this transition, and how the big gas producers are going to move towards Renewable Gas. They could be making decisions now that make more of the gas they get out of the ground. They have all the know-how to build kit to make use of the carbon dioxide that is often present in sour conventional reserves, and turn it into fuel, by reacting it with Renewable Hydrogen. If they did that, they could be building sustainability into their business models, as they could transition to making Renewable Gas as the Natural Gas runs down.”

    I asked Parties Number 2 and 3 who they thought would be the first movers on Renewable Gas. We agreed that companies such as GE, Siemens, Alstom, the big engineering groups, who are building gas turbines that are tolerant to a mix of gases, are in prime position to develop closed-loop Renewable Gas systems for power generation – recycling the carbon dioxide. But it will probably take the influence of the shareholders of companies like BP, who will be arguing for evidence that BP are not going to go out of business owing to fossil fuel depletion, to roll out Renewable Gas widely. “We’ve all got our pensions invested in them”, admitted Party Number 2, arguing for BP to gain the ability to sustain itself as well as the planet.

  • David MacKay : Heating London

    Posted on May 2nd, 2014 Jo No comments

    I took some notes from remarks made by Professor David MacKay, the UK Government’s Chief Scientific Advisor, yesterday, 1st May 2014, at an event entitled “How Will We Heat London ?”, held by Max Fordhams as part of the Green Sky Thinking, Open City week. I don’t claim to have recorded his words perfectly, but I hope I’ve captured the gist.


    [David MacKay] : [Agreeing with others on the panel - energy] demand reduction is really important. [We have to compensate for the] “rebound effect”, though [where people start spending money on new energy services if they reduce their demand for their current energy services].

    SAP is an inaccurate tool and not suitable for the uses we put it too :-
    http://www.eden.gov.uk/planning-and-development/building-control/building-control-guidance-notes/sap-calculations-explained/
    http://www.dimplex.co.uk/products/renewable_solutions/building_regulations_part_l.htm

    Things seem to be under-performing [for example, Combined Heat and Power and District Heating schemes]. It would be great to have data. A need for engineering expertise to get in.

    I’m not a Chartered Engineer, but I’m able to talk to engineers. I know a kilowatt from a kilowatt hour [ (Laughter from the room) ]. We’ve [squeezed] a number of engineers into DECC [the Department of Energy and Climate Change].

    I’m an advocate of Heat Pumps, but the data [we have received from demonstration projects] didn’t look very good. We hired two engineers and asked them to do the forensic analysis. The heat pumps were fine, but the systems were being wrongly installed or used.

    Now we have a Heat Network team in DECC – led by an engineer. We’ve published a Heat Strategy. I got to write the first three pages and included an exergy graph.

    [I say to colleagues] please don’t confuse electricity with energy – heat is different. We need not just a green fluffy solution, not just roll out CHP [Combined Heat and Power] [without guidance on design and operation].

    Sources of optimism ? Hopefully some of the examples will be available – but they’re not in the shop at the moment.

    For example, the SunUp Heat Battery – works by having a series of chambers of Phase Change Materials, about the size of a fridge that you would use to store heat, made by electricity during the day, for use at night, and meet the demand of one home. [Comment from Paul Clegg, Senior Partner at Feilden Clegg Bradley Studios : I first heard about Phase Change Materials back in the 1940s ? 1950s ? And nothing's come of it yet. ] Why is that a good idea ? Well, if you have a heat pump and a good control system, you can use electricity when it’s cheapest… This is being trialled in 10 homes.

    Micro-CHP – [of those already trialled] definitely some are hopeless, with low temperature and low electricity production they are just glorified boilers with a figleaf of power.

    Maybe Fuel Cells are going to deliver – power at 50% efficiency [of conversion] – maybe we’ll see a Fuel Cell Micro-Combined Heat and Power unit ?

    Maybe there will be hybrid systems – like the combination of a heat pump and a gas boiler – with suitable controls could lop off peaks of demand (both in power and gas).

    We have designed the 2050 Pathways Calculator as a tool in DECC. It was to see how to meet the Carbon Budget. You can use it as an energy security calculator if you want. We have helped China, Korea and others to write their own calculators.

    A lot of people think CHP is green and fluffy as it is decentralised, but if you’re using Natural Gas, that’s still a Fossil Fuel. If you want to run CHP on biomass, you will need laaaaaarge amounts of land. You can’t make it all add up with CHP. You would need many Wales’-worth of bioenergy or similar ways to make it work.

    Maybe we should carry on using boilers and power with low carbon gas – perhaps with electrolysis [A "yay !" from the audience. Well, me, actually]. Hydrogen – the the 2050 Calculator there is no way to put it back into the beginning of the diagram – but it could provide low carbon heat, industry and transport. At the moment we can only put Hydrogen into Transport [in the 2050 Calculator. If we had staff in DECC to do that… It’s Open Source, so if any of you would like to volunteer…

    Plan A of DECC was to convert the UK to using lots of electricity [from nuclear power and other low carbon technologies, to move to a low carbon economy], using heat pumps at the consumer end, but there’s a problem in winter [Bill Watts of Max Fordham had already shown a National Grid or Ofgem chart of electricity demand and gas demand over the year, day by day. Electricity demand (in blue) fluctuates a little, but it pretty regular over the year. Gas demand (in red) however, fluctuates a lot, and is perhaps 6 to 10 times larger in winter than in summer.]

    If [you abandon Plan A - "electrification of everything"] and do it the other way, you will need a large amount of Hydrogen, and a large Hydrogen store. Electrolysers are expensive, but we are doing/have done a feasibility study with ITM Power – to show the cost of electrolysers versus the cost of your wind turbines [My comment : but you're going to need your wind turbines to run your electrolysers with their "spare" or "curtailed" kilowatt hours.]

    [David Mackay, in questions from the floor] We can glue together [some elements]. Maybe the coming smart controls will help…can help save a load of energy. PassivSystems – control such things as your return temperature [in your Communal or District Heating]…instead of suing your heat provider [a reference to James Gallagher who has problems with his communal heating system at Parkside SE10], maybe you could use smart controls…

    [Question] Isn’t using smart controls like putting a Pirelli tyre on a Ford Cortina ? Legacy of poor CHP/DH systems…

    [David MacKay in response to the question of insulation] If insulation were enormously expensve, we wouldn’t have to be so enthusastic about it…We need a well-targeted research programme looking at deep retrofitting, instead of letting it all [heat] out.

    [Adrian Gault, Committee on Climate Change] We need an effective Government programme to deliver that. Don’t have it in the Green Deal. We did have it [in the previous programmes of CERT and CESP], but since they were cancelled in favour of the Green Deal, it’s gone off a cliff [levels of insulation installations]. We would like to see an initiative on low cost insulation expanded. The Green Deal is not producing a response.

    [Bill Watts, Max Fordham] Agree that energy efficiency won’t run on its own. But it’s difficult to do. Not talking about automatons/automation. Need a lot of pressure on this.

    [Adrian Gault] Maybe a street-by-street approach…

    [Michael Trousdell, Arup] Maybe a rule like you can’t sell a house unless you’ve had the insulation done…

    [Peter Clegg] … We can do heat recovery – scavenging the heat from power stations, but we must also de-carbonise the energy supply – this is a key part of the jigsaw.

  • Fiefdom of Information

    Posted on April 27th, 2014 Jo 1 comment

    Sigh. I think I’m going to need to start sending out Freedom of Information requests… Several cups of tea later…


    To: Information Rights Unit, Department for Business, Innovation & Skills, 5th Floor, Victoria 3, 1 Victoria Street, London SW1H OET

    28th April 2014

    Request to the Department of Energy and Climate Change

    Re: Policy and Strategy for North Sea Natural Gas Fields Depletion

    Dear Madam / Sir,

    I researching the history of the development of the gas industry in the United Kingdom, and some of the parallel evolution of the industry in the United States of America and mainland Europe.

    In looking at the period of the mid- to late- 1960s, and the British decision to transition from manufactured gas to Natural Gas supplies, I have been able to answer some of my questions, but not all of them, so far.

    From a variety of sources, I have been able to determine that there were contingency plans to provide substitutes for Natural Gas, either to solve technical problems in the grid conversion away from town gas, or to compensate should North Sea Natural Gas production growth be sluggish, or demand growth higher than anticipated.

    Technologies included the enriching of “lean” hydrogen-rich synthesis gas (reformed from a range of light hydrocarbons, by-products of the petroleum refining industry); Synthetic Natural Gas (SNG) and methane-“rich” gas making processes; and simple mixtures of light hydrocarbons with air.

    In the National Archives Cmd/Cmnd/Command document 3438 “Fuel Policy. Presented to Parliament by the Minister of Power Nov 1967″, I found discussion on how North Sea gas fields could best be exploited, and about expected depletion rates, and that this could promote further exploration and discovery.

    In a range of books and papers of the time, I have found some discussion about options to increase imports of Natural Gas, either by the shipping of Liquified Natural Gas (LNG) or by pipeline from The Netherlands.

    Current British policy in respect of Natural Gas supplies appears to rest on “pipeline diplomacy”, ensuring imports through continued co-operation with partner supplier countries and international organisations.

    I remain unclear about what official technological or structural strategy may exist to bridge the gap between depleting North Sea Natural Gas supplies and continued strong demand, in the event of failure of this policy.

    It is clear from my research into early gas field development that depletion is inevitable, and that although some production can be restored with various techniques, that eventually wells become uneconomic, no matter what the size of the original gas field.

    To my mind, it seems unthinkable that the depletion of the North Sea gas fields was unanticipated, and yet I have yet to find comprehensive policy statements that cover this eventuality and answer its needs.

    Under the Freedom of Information Act (2000), I am requesting information to answer the following questions :-

    1.   At the time of European exploration for Natural Gas in the period 1948 to 1965, and the British conversion from manufactured gas to Natural Gas, in the period 1966 to 1977, what was HM Government’s policy to compensate for the eventual depletion of the North Sea gas fields ?

    2.   What negotiations and agreements were made between HM Government and the nationalised gas industry between 1948 and 1986; and between HM Government and the privatised gas industry between 1986 and today regarding the projections of decline in gas production from the UK Continental Shelf, and any compensating strategy, such as the development of unconventional gas resources, such as shale gas ?

    3.   Is there any policy or strategy to restore the SNG (Synthetic Natural Gas) production capacity of the UK in the event of a longstanding crisis emerging, for example from a sharp rise in imported Natural Gas costs or geopolitical upheaval ?

    4.   Has HM Government any plan to acquire the Intellectual Property rights to SNG production technology, whether from British Gas/Centrica or any other private enterprise, especially for the slagging version of the Lurgi gasifier technology ?

    5.   Has HM Government any stated policy intention to launch new research and development into, or pilot demonstrations of, SNG ?

    6.   Does HM Government have any clearly-defined policy on the production and use of manufactured gas of any type ? If so, please can I know references for the documents ?

    7.   Does HM Government anticipate that manufactured gas production could need to increase in order to support the production of synthetic liquid vehicle fuels; and if so, which technologies are to be considered ?

    Thank you for your attention to my request for information.

    Regards,

    jo.

  • On Having to Start Somewhere

    Posted on March 15th, 2014 Jo No comments

    In the last few weeks I have heard a lot of noble but futile hopes on the subject of carbon dioxide emissions control.

    People always seem to want to project too far into the future and lay out their wonder solution – something that is just too advanced enough to be attainable through any of the means we currently have at our disposal. It is impossible to imagine how the gulf can be bridged between the configuration of things today and their chosen future solutions.

    Naive civil servants strongly believe in a massive programme of new nuclear power. Head-in-the-clouds climate change consultants and engineers who should know otherwise believe in widespread Carbon Capture and Storage or CCS. MBA students believe in carbon pricing, with carbon trading, or a flat carbon tax. Social engineers believe in significant reductions in energy intensity and energy consumer behaviour change, and economists believe in huge cost reductions for all forms of renewable electricity generation.

    To make any progress at all, we need to start where we are. Our economic system has strong emissions-dependent components that can easily be projected to fight off contenders. The thing is, you can’t take a whole layer of bricks out of a Jenga stack without severe degradation of its stability. You need to work with the stack as it is, with all the balances and stresses that already exist. It is too hard to attempt to change everything at once, and the glowing ethereal light of the future is just too ghostly to snatch a hold of without a firm grasp on an appropriate practical rather than spiritual guide.

    Here’s part of an email exchange in which I strive for pragmatism in the face of what I perceive as a lack of realism.


    To: Jo

    I read your article with interest. You have focused on energy, whereas I
    tend to focus on total resource. CCS does make sense and should be pushed
    forward with real drive as existing power stations can be cleaned up with it
    and enjoy a much longer life. Establishing CCS is cheaper than building new
    nuclear and uses far less resources. Furthermore, CCS should be used on new
    gas and biomass plants in the future.

    What we are lacking at the moment is any politician with vision in this
    space. Through a combination of boiler upgrades, insulation, appliance
    upgrades and behaviour change, it is straight forward to halve domestic
    energy use. Businesses are starting to make real headway with energy
    savings. We can therefore maintain a current total energy demand for the
    foreseeable future.

    To service this demand, we should continue to eke out every last effective
    joule from the current generating stock by adding cleansing kit to the dirty
    performers. While this is being done, we can continue to develop renewable
    energy and localised systems which can help to reduce the base load
    requirement even further.

    From an operational perspective, CCS has stagnated over the last 8 years, so
    a test plant needs to be put in place as soon as possible.

    The biggest issue for me is that, through political meddling and the
    unintended consequences of ill-thought out subsidies, the market has been
    skewed in such a way that the probability of a black-out next year is very
    high indeed.

    Green gas is invisible in many people’s thinking, but the latest House of
    Lords Report highlighted its potential.

    Vested interests are winning hands down in the stand-off with the big
    picture!


    From: Jo

    What is the title of the House of Lords report to which you refer ?

    Sadly, I am old enough to remember Carbon Capture and Storage (CCS)
    the first time the notion went around the block, so I’d say that
    progress has been thin for 30 years rather than 8.

    Original proposals for CCS included sequestration at the bottom of the
    ocean, which have only recently been ruled out as the study of global
    ocean circulation has discovered more complex looping of deep and
    shallower waters that originally modelled – the carbon dioxide would
    come back up to the surface waters eventually…

    The only way, I believe, that CCS can be made to work is by creating a
    value stream from the actual carbon dioxide, and I don’t mean Enhanced
    Oil Recovery (EOR).

    And I also definitely do not mean carbon dioxide emissions pricing,
    taxation or credit trading. The forces against an
    investment-influencing carbon price are strong, if you analyse the
    games going on in the various economic system components. I do not
    believe that a strong carbon price can be asserted when major economic
    components are locked into carbon – such as the major energy producers
    and suppliers, and some parts of industry, and transport.

    Also, carbon pricing is designed to be cost-efficient, as markets will
    always find the lowest marginal pricing for any externality in fines
    or charges – which is essentially what carbon dioxide emissions are.
    The EU Emissions Trading Scheme was bound to deliver a low carbon
    price – that’s exactly what the economists predicted in modelling
    carbon pricing.

    I cannot see that a carbon price could be imposed that was more than
    5% of the base commodity trade price. At those levels, the carbon
    price is just an irritation to pass on to end consumers.

    The main problem is that charging for emissions does not alter
    investment decisions. Just like fines for pollution do not change the
    risks for future pollution. I think that we should stop believing in
    negative charging and start backing positive investment in the energy
    transition.

    You write “You have focused on energy, whereas I tend to focus on
    total resource.” I assume you mean the infrastructure and trading
    systems. My understanding leads me to expect that in the current
    continuing economic stress, solutions to the energy crisis will indeed
    need to re-use existing plant and infrastructure, which is why I
    think that Renewable Gas is a viable option for decarbonising total
    energy supply – it slots right in to substitute for Natural Gas.

    My way to “eke out every last effective joule from the current
    generating stock” is to clean up the fuel, rather than battle
    thermodynamics and capture the carbon dioxide that comes out the back
    end. Although I also recommend carbon recycling to reduce the need for
    input feedstock.

    I completely agree that energy efficiency – cutting energy demand
    through insulation and so on – is essential. But there needs to be a
    fundamental change in the way that profits are made in the energy
    sector before this will happen in a significant way. Currently it
    remains in the best interests of energy production and supply
    companies to produce and supply as much energy as they can, as they
    have a duty to their shareholders to return a profit through high
    sales of their primary products.

    “Vested interests” have every right under legally-binding trade
    agreements to maximise their profits through the highest possible
    sales in a market that is virtually a monopoly. I don’t think this can
    be challenged, not even by climate change science. I think the way
    forward is to change the commodities upon which the energy sector
    thrives. If products from the energy sector include insulation and
    other kinds of efficiency, and if the energy sector companies can
    continue to make sales of these products, then they can reasonably be
    expected to sell less energy. I’m suggesting that energy reduction
    services need to have a lease component.

    Although Alistair Buchanan formerly of Ofgem is right about the
    electricity generation margins slipping really low in the next few
    winters, there are STOR contracts that National Grid have been working
    on, which should keep the lights on, unless Russia turn off the gas
    taps, which is something nobody can do anything much about – not BP,
    nor our diplomatic corps, the GECF (the gas OPEC), nor the WTO.


  • In Confab : Paul Elsner

    Posted on January 23rd, 2014 Jo No comments

    Dr Paul Elsner of Birkbeck College at the University of London gave up some of his valuable time for me today at his little bijou garret-style office in Bloomsbury in Central London, with an excellent, redeeming view of the British Telecom Tower. Leader of the Energy and Climate Change module on Birkbeck’s Climate Change Management programme, he offered me tea and topical information on Renewable Energy, and some advice on discipline in authorship.

    He unpacked the recent whirlwind of optimism surrounding the exploitation of Shale Gas and Shale Oil, and how Climate Change policy is perhaps taking a step back. He said that we have to accept that this is the way the world is at the moment.

    I indicated that I don’t have much confidence in the “Shale Bubble”. I consider it mostly as a public relations exercise – and that there are special conditions in the United States of America where all this propaganda comes from. I said that there are several factors that mean the progress with low carbon fuels continues to be essential, and that Renewable Gas is likely to be key.

    1. First of all, the major energy companies, the oil and gas companies, are not in a healthy financial state to make huge investment. For example, BP has just had the legal ruling that there will be no limit to the amount of compensation claims they will have to face over the Deepwater Horizon disaster. Royal Dutch Shell meanwhile has just had a serious quarterly profit warning – and if that is mostly due to constrained sales (“Peak Oil Demand”) because of economic collapse, that doesn’t help them with the kind of aggressive “discovery” they need to continue with to keep up their Reserves to Production ratio (the amount of proven resources they have on their books). These are not the only problems being faced in the industry. This problem with future anticipated capitalisation means that Big Oil and Gas cannot possibly look at major transitions into Renewable Electricity, so it would be pointless to ask, or try to construct a Carbon Market to force it to happen.

    2. Secondly, despite claims of large reserves of Shale Gas and Shale Oil, ripe for the exploitation of, even major bodies are not anticipating that Peak Oil and Peak Natural Gas will be delayed by many years by the “Shale Gale”. The reservoir characteristics of unconventional fossil fuel fields do not mature in the same way as conventional ones. This means that depletion scenarios for fossil fuels are still as relevant to consider as the decades prior to horizontal drilling and hydraulic fracturing (“fracking”).

    3. Thirdly, the reservoir characteristics of conventional fossil fuel fields yet to exploit, especially in terms of chemical composition, are drifting towards increasingly “sour” conditions – with sigificant levels of hydrogen sulfide and carbon dioxide in them. The sulphur must be removed for a variety of reasons, but the carbon dioxide remains an issue. The answer until recently from policy people would have been Carbon Capture and Storage or CCS. Carbon dioxide should be washed from acid Natural Gas and sequestered under the ocean in salt caverns that previously held fossil hydrocarbons. It was hoped that Carbon Markets and other forms of carbon pricing would have assisted with the payment for CCS. However, recently there has been reduced confidence that this will be significant.

    Renewable Gas is an answer to all three of these issues. It can easily be pursued by the big players in the current energy provision system, with far less investment than wholesale change would demand. It can address concerns of gas resource depletion at a global scale, the onset of which could occur within 20 to 25 years. And it can be deployed to bring poor conventional fossil fuels into consideration for exploitation in the current time – answering regional gas resource depletion.

    Outside, daffodils were blooming in Tavistock Square. In January, yes. The “freaky” weather continues…

  • But Uh-Oh – Those Summer Nights

    Posted on January 20th, 2014 Jo No comments

    A normal, everyday Monday morning at Energy Geek Central. Yes, this is a normal conversation for me to take part in on a Monday morning. Energy geekery at breakfast. Perfect.

    Nuclear Flower Power

    This whole UK Government nuclear power programme plan is ridiculous ! 75 gigawatts (GW) of Generation III nuclear fission reactors ? What are they thinking ? Britain would need to rapidly ramp up its construction capabilities, and that’s not going to happen, even with the help of the Chinese. (And the Americans are not going to take too kindly to the idea of China getting strongly involved with British energy). And then, we’d need to secure almost a quarter of the world’s remaining reserves of uranium, which hasn’t actually been dug up yet. And to cap it all, we’d need to have 10 more geological disposal repositories for the resulting radioactive spent fuel, and we haven’t even managed to negotiate one yet. That is, unless we can burn a good part of that spent fuel in Generation IV nuclear fission reactors – which haven’t even been properly demonstrated yet ! Talk about unconscionable risk !

    Baseload Should Be History By Now, But…

    Whatever the technological capability for nuclear power plants to “load follow” and reduce their output in response to a chance in electricity demand, Generation III reactors would not be run as anything except “baseload” – constantly on, and constantly producing a constant amount of power – although they might turn them off in summer for maintenance. You see, the cost of a Generation III reactor and generation kit is in the initial build – so their investors are not going to permit them to run them at low load factors – even if they could.

    There are risks to running a nuclear power plant at partial load – mostly to do with potential damage to the actual electricity generation equipment. But what are the technology risks that Hinkley Point C gets built, and all that capital is committed, and then it only runs for a couple of years until all that high burn up fuel crumbles and the reactors start leaking plutonium and they have to shut it down permanently ? Who can guarantee it’s a sound bet ?

    If they actually work, running Generation III reactors at constant output as “baseload” will also completely mess with the power market. In all of the scenarios, high nuclear, high non-nuclear, or high fossil fuels with Carbon Capture and Storage (CCS), there will always need to be some renewables in the mix. In all probability this will be rapidly deployed, highly technologically advanced solar power photovoltaics (PV). The amount of solar power that will be generated will be high in summer, but since you have a significant change in energy demand between summer and winter, you’re going to have a massive excess of electricity generation in summer if you add nuclear baseload to solar. Relative to the demand for energy, you’re going to get more Renewable Energy excess in summer and under-supply in winter (even though you get more offshore wind in winter), so it’s critical how you mix those two into your scenario.

    The UK Government’s maximum 75 GW nuclear scenario comprises 55 GW Generation III and 20 GW Generation IV. They could have said 40 GW Gen III to feed Gen IV – the spent fuel from Gen III is needed to kick off Gen IV. Although, if LFTR took off, if they had enough fluoride materials there could be a Thorium way into Gen IV… but this is all so technical, no MP [ Member of Parliament ] is going to get their head round this before 2050.

    The UK Government are saying that 16 GW of nuclear by 2030 should be seen as a first tranche, and that it could double or triple by 2040 – that’s one heck of a deployment rate ! If they think they can get 16 GW by 2030 – then triple that by 10 years later ? It’s not going to happen. And even 30 GW would be horrific. But it’s probably more plausible – if they can get 16 GW by 2030, they can arguably get double that by 2040.

    As a rule of thumb, you would need around 10 tonnes of fissionable fuel to kickstart a Gen IV reactor. They’ve got 106 tonnes of Plutonium, plus 3 or 4 tonnes they recently acquired – from France or Germany (I forget which). So they could start 11 GW of Gen IV – possibly the PRISM – the Hitachi thing – sodium-cooled. They’ve been trying them since the Year Dot – these Fast Reactors – the Breeders – Dounreay. People are expressing more confidence in them now – “Pandora’s Promise” hangs around the narrative that the Clinton administration stopped research into Fast Reactors – Oak Ridge couldn’t be commercial. Throwing sodium around a core 80 times hotter than current core heats – you can’t throw water at it easily. You need something that can carry more heat out. It’s a high technological risk. But then get some French notable nuclear person saying Gen IV technologies – “they’re on the way and they can be done”.

    Radioactive Waste Disposal Woes

    The point being is – if you’re commissioning 30 GW of Gen III in the belief that Gen IV will be developed – then you are setting yourself up to be a hostage to technological fortune. That is a real ethical consideration. Because if you can’t burn the waste fuel from Gen III, you’re left with up to 10 radioactive waste repositories required when you can’t even get one at the moment. The default position is that radioactive spent nuclear fuel will be left at the power stations where they’re created. Typically, nuclear power plants are built on the coast as they need a lot of cooling water. If you are going for 30 GW you will need a load of new sites – possibly somewhere round the South East of England. This is where climate change comes in – rising sea levels, increased storm surge, dissolving, sinking, washed-away beaches, more extreme storms [...] The default spent fuel scenario with numerous coastal decommissioned sites with radioactive interim stores which contain nearly half the current legacy radioactive waste [...]

    Based on the figures from the new Greenpeace report, I calculate that the added radioactive waste and radioactive spent fuel arisings from a programme of 16 GW of nuclear new build would be 244 million Terabequerel (TBq), compared to the legacy level of 87 million TBq.

    The Nuclear Decommissioning Authority (NDA) are due to publish their Radioactive Waste Inventory and their Report on Radioactive Materials not in the Waste Inventory at the end of January 2014. We need to keep a watch out for that, because they may have adapted their anticipated Minimum and Maxmium Derived Inventory.

    Politics Is Living In The Past

    What you hear from politicians is they’re still talking about “baseload”, as if they’ve just found the Holy Grail of Energy Policy. And failed nuclear power. Then tidal. And barrages. This is all in the past. Stuff they’ve either read – in an article in a magazine at the dentist’s surgery waiting room, and they think, alright I’ll use that in a TV programme I’ve been invited to speak on, like Question Time. I think that perhaps, to change the direction of the argument, we might need to rubbish their contribution. A technological society needs to be talking about gasification, catalysis. If you regard yourselves as educated, and have a technological society – your way of living in the future is not only in manufacturing but also ideas – you need to be talking about this not that : low carbon gas fuels, not nuclear power. Ministers and senior civil servants probably suffer from poor briefing – or no briefing. They are relying on what is literally hearsay – informal discussions, or journalists effectively representing industrial interests. Newspapers are full of rubbish and it circulates, like gyres in the oceans. Just circulates around and around – full of rubbish.

    I think part of the problem is that the politicians and chief civil servants and ministers are briefed by the “Old Guard” – very often the ex-nuclear power industry guard. They still believe in big construction projects, with long lead times and massive capital investment, whereas Renewable Electricity is racing ahead, piecemeal, and private investors are desperate to get their money into wind power and solar power because the returns are almost immediate and risk-free.

    Together in Electric Dreams

    Question : Why are the UK Government ploughing on with plans for so much nuclear power ?

    1. They believe that a lot of transport and heat can be made to go electric.
    2. They think they can use spent nuclear fuel in new reactors.
    3. They think it will be cheaper than everything else.
    4. They say it’s vital for UK Energy Security – for emissions reductions, for cost, and for baseload. The big three – always the stated aim of energy policy, and they think nuclear ticks all those three boxes. But it doesn’t.

    What they’ll say is, yes, you have to import uranium, but you’ve got a 4 year stock. Any war you’re going to get yourselves involved in you can probably resolve in 4 days, or 4 weeks. If you go for a very high nuclear scenario, you would be taking quite a big share of the global resource of uranium. There’s 2,600 TWh of nuclear being produced globally. And global final energy demand is around 100,000 TWh – so nuclear power currently produces around 2.6% of global energy supply. At current rates of nuclear generation, according to the World Nuclear Association, you’ve got around 80 years of proven reserves and probably a bit more. Let’s say you double nuclear output by 2050 or 2040 – but in the same time you might just have enough uranium – and then find a bit more. But global energy demand rises significantly as well – so nuclear will still only provide around 3% of global energy demand. That’s not a climate solution – it’s just an energy distraction. All this guff about fusion. Well.

    Cornering The Market In Undug Uranium

    A 75 GW programme would produce at baseload 590 TWh a year – divide by 2,600 – is about 23% of proven global uranium reserves. You’re having to import, regardless of what other countries are doing, you’re trying to corner the market – roughly a quarter. Not even a quarter of the market – a quarter of all known reserves – it’s not all been produced yet. It’s still in the ground. So could you be sure that you could actually run these power stations if you build them ? Without global domination of the New British Empire [...]. The security issues alone – defending coastal targets from a tweeb with a desire to blow them up. 50 years down the line they’re full of radioactive spent fuel that won’t have a repository to go to – we don’t want one here – and how much is it going to cost ?

    My view is that offshore wind will be a major contributor in a high or 100% Renewable Electricity scenario by 2050 or 2060. Maybe 180 GW, that will also be around 600 TWh a year – comparable to that maximum nuclear programme. DECC’s final energy demand 2050 – several scenarios – final energy demand from 6 scenarios came out as between roughly 1,500 TWh a year and the maximum 2,500 TWh. Broadly speaking, if you’re trying to do that just with Renewable Electricity, you begin to struggle quite honestly, unless you’re doing over 600 TWh of offshore wind, and even then you need a fair amount of heat pump stuff which I’m not sure will come through. The good news is that solar might – because of the cost and technology breakthroughs. That brings with it a problem – because you’re delivering a lot of that energy in summer. The other point – David MacKay would say – in his book his estimate was 150 TWh from solar by 2050, on the grounds that that’s where you south-facing roofs are – you need to use higher efficiency triple junction cells with more than 40% efficiency and this would be too expensive for a rollout which would double or triple that 150 TWh – that would be too costly – because those cells are too costly. But with this new stuff, you might get that. Not only the cost goes down, but the coverage goes down. Not doing solar across swathes of countryside. There have always been two issues with solar power – cost and where it’s being deployed.

    Uh-Oh, Summer Days. Uh-Oh, Summer Nights

    With the solar-wind headline, summer days and summer nights are an issue.

    With the nuclear headline, 2040 – they would have up to 50 GW, and that would need to run at somewhere between 75% and 95% capacity – to protect the investment and electric generation turbines.

    It will be interesting to provide some figures – this is how much over-capacity you’re likely to get with this amount of offshore wind. But if you have this amount of nuclear power, you’ll get this amount [...]

    Energy demand is strongly variable with season. We have to consider not just power, but heat – you need to get that energy out in winter – up to 4 times as much during peak in winter evenings. How are you going to do that ? You need gas – or you need extensive Combined Heat and Power (CHP) (which needs gas). Or you need an unimaginable deployment of domestic heat pumps. Air source heat pumps won’t work at the time you need them most. Ground source heat pumps would require the digging up of Britain – and you can’t do that in most urban settings.

    District Heat Fields

    The other way to get heat out to everyone in a low carbon world – apart from low carbon gas – is having a field-based ground source heat pump scheme – just dig up a field next to a city – and just put in pipes and boreholes in a field. You’re not disturbing anybody. You could even grow crops on it next season. Low cost and large scale – but would need a District Heating (DH) network. There are one or two heat pump schemes around the world. Not sure if they are used for cooling in summer or heat extraction in the winter. The other thing is hot water underground. Put in an extra pipe in the normal channels to domestic dwellings. Any excess heat from power generation or electrolysis or whatever is put down this loop and heats the sub-ground. Because heat travels about 1 metre a month in soil, that heat should be retained for winter. A ground source heat sink. Geothermal energy could come through – they’re doing a scheme in Manchester. If there’s a nearby heat district network – it makes it easier. Just want to tee it into the nearest DH system. The urban heat demand is 150 TWh a year. You might be able to put DH out to suburban areas as well. There are 9 million gas-connected suburban homes – another about 150 TWh there as well – or a bit more maybe. Might get to dispose of 300 TWh in heat through DH. The Green Deal insulation gains might not be what is claimed – and condensing gas boiler efficiencies are not that great – which feeds into the argument that in terms of energy efficiency, you not only want to do insulation, but also DH – or low carbon gas. Which is the most cost-effective ? Could argue reasonable energy efficiency measures are cheapest – but DH might be a better bet. That involves a lot of digging.

    Gas Is The Logical Answer

    But everything’s already laid for gas. (…but from the greatest efficiency first perspective, if you’re not doing DH, you’re not using a lot of Renewable Heat you could otherwise use [...] )

    The best package would be the use of low carbon gases and sufficient DH to use Renewable Heat where it is available – such as desalination, electrolysis or other energy plant. It depends where the electrolysis is being done.

    The Age of Your Carbon

    It also depends on which carbon atoms you’re using. If you are recycling carbon from the combustion of fossil fuels into Renewable Gas, that’s OK. But you can’t easily recapture carbon emissions from the built environment (although you could effectively do that with heat storage). You can’t do carbon capture from transport either. So your low carbon gas has to come from biogenic molecules. Your Renewable Gas has to be synthesised using biogenic carbon molecules rather than fossil ones.

    [...] I’m using the phrase “Young Carbon”. Young Carbon doesn’t have to be from plants – biological things that grow.

    Well, there’s Direct Air Capture (DAC). It’s simple. David Sevier, London-based, is working on this. He’s using heat to capture carbon dioxide. You could do it from exhaust in a chimney or a gasification process – or force a load of air through a space. He would use heat and cooling to create an updraft. It would enable the “beyond capture” problem to be circumvented. Cost is non-competitive. Can be done technically. Using reject heat from power stations for the energy to do it. People don’t realise you can use a lot of heat to capture carbon, not electricity.

    Young Carbon from Seawater

    If you’re playing around with large amounts of seawater anyway – that is, for desalination for irrigation, why not also do Renewable Hydrogen, and pluck the Carbon Dioxide out of there too to react with the Renewable Hydrogen to make Renewable Methane ? I’m talking about very large amounts of seawater. Not “Seawater Greenhouses” – condensation designs mainly for growing exotic food. If you want large amounts of desalinated water – and you’re using Concentrated Solar Power – for irrigating deserts – you would want to grow things like cacti for biological carbon.

    Say you had 40 GW of wind power on Dogger Bank, spinning at 40% load factor a year. You’ve also got electrolysers there. Any time you’re not powering the grid, you’re making gas – so capturing carbon dioxide from seawater, splitting water for hydrogen, making methane gas. Wouldn’t you want to use flash desalination first to get cleaner water for electrolysis ? Straight seawater electrolysis is also being done.

    It depends on the relative quantities of gas concentrated in the seawater. If you’ve got oxygen, hydrogen and carbon dioxide, that would be nice. You might get loads of oxygen and hydrogen, and only poor quantities of carbon dioxide ?

    But if you could get hydrogen production going from spare wind power. And even if you had to pipe the carbon dioxide from conventional thermal power plants, you’re starting to look at a sea-based solution for gas production. Using seawater, though, chlorine is the problem [...]

    Look at the relative density of molecules – that sort of calculation that will show if this is going to fly. Carbon dioxide is a very fixed, stable molecule – it’s at about the bottom of the energy potential well – you have to get that reaction energy from somewhere.

    How Much Spare Power Will There Be ?

    If you’ve got an offshore wind and solar system. At night, obviously, the solar’s not working (unless new cells are built that can run on infrared night-time Earthshine). But you could still have 100 GWh of wind power at night not used for the power grid. The anticipated new nuclear 40 GW nuclear by 2030 will produce about 140 GWh – this would just complicate problems – adding baseload nuclear to a renewables-inclusive scenario. 40 GW is arguably a reasonable deployment of wind power by 2030 – low if anything.

    You get less wind in a nuclear-inclusive scenario, but the upshot is you’ve definitely got a lot of power to deal with on a summer night with nuclear power. You do have with Renewable Electricity as well, but it varies more. Whichever route we take we’re likely to end up with excess electricity generation on summer nights.

    In a 70 GW wind power deployment (50 GW offshore, 20 GW onshore – 160 TWh a year), you might have something like 50 to 100 GWh per night of excess (might get up to 150 GWh to store on a windy night). But if you have a 16 GW nuclear deployment by 2030 (125 TWh a year), you are definitely going to have 140 GWh of excess per night (that’s 16 GW for 10 hours less a bit). Night time by the way is roughly between 9pm and 7am between peak demands.

    We could be making a lot of Renewable Gas !

    Can you build enough Renewable Gas or whatever to soak up this excess nuclear or wind power ?

    The energy mix is likely to be in reality somewhere in between these two extremes of high nuclear or high wind.

    But if you develop a lot of solar – so that it knocks out nuclear power – it will be the summer day excess that’s most significant. And that’s what Germany is experiencing now.

    Choices, choices, choices

    There is a big choice in fossil fuels which isn’t really talked about very often – whether the oil and gas industry should go for unconventional fossil fuels, or attempt to make use of the remaining conventional resources that have a lower quality. The unconventionals narrative – shale gas, coalbed methane, methane hydrates, deepwater gas, Arctic oil and gas, heavy oil, is running out of steam as it becomes clear that some of these choices are expensive, and environmentally damaging (besides their climate change impact). So the option will be making use of gas with high acid gas composition. And the technological solutions for this will be the same as needed to start major production of Renewable Gas.

    Capacity Payments

    But you still need to answer the balancing question. If you have a high nuclear power scenario, you need maybe 50 TWh a year of gas-fired power generation. If high Renewable Electricity, you will need something like 100 TWh of gas, so you need Carbon Capture and Storage – or low carbon gas.

    Even then, the gas power plants could be running only 30% of the year, and so you will need capacity payments to make sure new flexible plants get built and stay available for use.

    If you have a high nuclear scenario, coupled with gas, you can meet the carbon budget – but it will squeeze out Renewable Electricity. If high in renewables, you need Carbon Capture and Storage (CCS) or Carbon Capture and Recycling into Renewable Gas, but this would rule out nuclear power. It depends which sector joins up with which.

    Carbon Capture, Carbon Budget

    Can the Drax power plant – with maybe one pipeline 24 inches in diameter, carrying away 20 megatonnes of carbon dioxide per year – can it meet the UK’s Carbon Budget target ?

  • Gain in Transmission

    Posted on January 13th, 2014 Jo No comments

    It constantly amazes and intrigues me how human individuals operate in networks to formulate, clarify and standardise ideas, tools, machines, procedures and systems. Several decades ago, Renewable Electricity from sources such as wind power was considered idealistic vapourware, esoteric, unworkable and uncertain, and now it’s a mainstream generator of reliable electricity in the UK’s National Grid. Who would have thought that invisible, odourless, tasteless gas phase chemicals would heat our homes ? It’s now just so normal, it’s impossible to imagine that Natural Gas was once considered to be so insignificant that it was vented – not even flared – from oil wells.

    Judging by the sheer number of people working on aspects of Renewable Gas, I expect this too to be mainstream in the energy sector within a decade. What do others think ? I have begun the process of asking, for example, see below.

    =x=x=x=x=x=x=x=x=

    from: Jo Abbess
    to: Richard A. Sears
    date: Mon, May 2, 2011 at 11:59 PM
    subject: Question from your TED talk

    Dear [Professor] Sears,

    I was intrigued by your TED talk that I recently viewed :-

    http://www.ted.com/talks/richard_sears_planning_for_the_end_of_oil.html

    Yes, I am interested in the idea of “printing” solar cells, which is what I think you might be alluding to with your reference to abalone shells.

    But I am more interested in what you base your estimate of “Peak Gas” on. I recently did some very basic modelling of hydrocarbon resources and electricity, which look somewhat different from the IEA and EIA work and reports from BP and Royal Dutch Shell. My conclusion was that Peak Oil is roughly now, Peak Natural Gas will be around 2030, and Peak Electricity around 2060 :-

    http://www.joabbess.com/2011/02/11/future-energy-tipping-points/

    I am going to try to improve these charts before I submit my MSc Masters Thesis, so I am trying to find out what other people base their projections on. Could you help me by pointing me at the basis of your assessment of Peak Natural Gas ?

    Thank you,

    jo.

    =x=x=x=x=x=x=

    from: Richard A. Sears
    to: Jo Abbess
    date: Thu, Oct 24, 2013 at 5:30 PM

    Jo,

    I am just now finding a number of old emails that got archived (and ignored) when I moved from MIT to Stanford a few years ago. A quick answer is that I did about what Hubbert did in 1956. No detailed statistical modeling, just look at the trends, think about what’s happening in the industry, and make what seem like reasonable statements about it.

    A number of interesting things have happened just in the last two years since you wrote to me. Significantly, US oil production is on the rise. When you count all hydrocarbon liquids, the US is or will soon be, the world largest producer. This just goes to one of my points from TED. Don’t expect oil and gas to go away any time soon. There are plenty of molecules out there. I first said this internally at Shell in the mid 1980’s when I was Manager of Exploration Economics and since then I’ve felt that I got it about right.

    I did just look at your website and would caution you about extrapolating very recent trends into the future. The rate of growth in shale gas production has slowed, but there’s an important economic factor driving that. Gas prices in the US are very low compared to oil. With the development of fraccing technology to enable oil and liquids production from shale formations, the industry has shifted their effort to the liquids-rich plays. A few statistics. Gas is currently around $3.50/mcf. On an energy equivalent basis, this equates to an oil price of about $20/barrel. Brent currently sells for $110/barrel and the light oils produced from the shale plays in the US are getting between $90 and $100/barrel, depending on where they can be delivered. As a consequence, in the 3rd quarter of 2013, compared to one year ago, oil well completions are up 18% while natural gas well completions declined 30%.

    Yes, you are right. Printing solar cells is an example of what I was talking about with Abalone shells. Similarly, what if you had paint that as it dried would self assemble into linked solar cells and your entire house is now generating electricity. I was totally amazed at the number of people that didn’t actually think about what I was saying and called me an !d!*t for imagining that I was going to transform coal itself into some magical new molecule. [...]

    In any case, I think it’s good that you’re thinking about these problems, and importantly it appears from your website that you’re thinking about the system and its complexity.

    Best regards,
    Rich Sears

    Richard A. Sears
    Visiting Scientist
    MIT Energy Initiative
    Massachusetts Institute of Technology

    =x=x=x=x=x=x=x=x=x=

    from: Jo Abbess
    to: Richard A Sears
    sent: Monday, May 02, 2011 3:59 PM

    Dear [Professor] Sears,

    Many thanks for your reply.

    I had kinda given up of ever hearing back from you, so it’s lovely to
    read your thoughts.

    May I blog them ?

    Regards,

    jo.

    =x=x=x=x=x=x=x=

    from: Richard A Sears
    date: Fri, Oct 25, 2013 at 5:03 PM
    to: Jo Abbess

    Jo,

    I have personally avoided blogging because I don’t want to put up with people writing mean comments about me. But the data is worth sharing. You should also know the sources of that data otherwise you open yourself to more criticism.

    The data on production comes from the International Energy Agency and a research firm PIRA. All of it was in recent press releases. The Energy Information Administration makes similar projections about future production. The data on well completions was recently released by API.

    No need to reference me. The data is out there for all to see. But if you do, fair warning. You will get stupid comments about how I used to be a VP at Shell so of course these are the things I’m going to say. [...]

    By the way, there’s something else that’s very interesting in the world of peak oil and various peaks. I have long believed, as hinted in my TED talk that the most important aspect of peak oil is the demand driven phenomena, not the supply side. It’s worth noting in this context that US oil consumption peaked in 2005 and has declined about 10% since then. This data can be found easily in the BP Statistical Report on World Energy. This is real and is a result of economic shifts, greater efficiency, and the penetration of renewables. Future energy projections (references above) show that this trend continues. A big component of US energy consumption is gasoline, and US gasoline consumption peaked in 2007. I think that data can be found at http://www.eia.gov, although I haven’t looked for it lately. It’s a little factoid that I think I remember.

    Rich

    Richard A. Sears
    Consulting Professor
    Department of Energy Resources Engineering
    Stanford University

    =x=x=x=x=x=x=x=x=

    from: Jo Abbess
    to: Richard A Sears
    date: Sun, Jan 12, 2014 at 11:47 AM

    Dear Professor Sears,

    HNY 2014 !

    This year I am hoping to attempt the climb on my own personal K2 by writing an academic book on Renewable Gas – sustainable, low-to-zero carbon emissions gas phase fuels.

    I am not a chemist, nor a chemical engineer, and so I would value any suggestions on who I should approach in the gas (and oil) industry to interview about projects that lean in this direction.

    Examples would be :-

    * Power-to-Gas : Using “spare” wind power to make Renewable Hydrogen – for example by electrolysis of water. Part of the German Power-to-Gas policy. Some hydrogen can be added to gas grids safely without changing regulations, pipework or end appliances.

    * Methanation : Using Renewable Hydrogen and young or recycled carbon gas to make methane (using the energy from “spare” wind power, for example). Also part of the German Power-to-Gas policy.

    NB “Young” carbon would be either carbon monoxide or carbon dioxide, and be sourced from biomass, Direct Air Capture, or from the ocean. “Old” carbon would come from the “deeper” geological carbon cycle, such as from fossil fuel, or industrial processes such as the manufacture of chemicals from minerals and/or rocks.

    Precursors to Renewable Gas also interest me, as transitions are important – transitions from a totally fossil fuel-based gas system to a sustainable gas system. I have recently looked at some basic analysis on the chemistry of Natural Gas, and its refinery. It seems that methanation could be useful in making sour gas available as sweetened, as long as Renewable Hydrogen is developed for this purpose. It seems that there is a lot of sour gas in remaining reserves, and the kind of CCS (Carbon Capture and Storage) that would be required under emissions controls could make sour gas too expensive to use if it was just washed of acids.

    I don’t think the future of energy will be completely electrified – it will take a very long time to roll out 100% Renewable Electricity and there will always be problems transitioning out of liquid fuels to electricity in vehicular transportation.

    If you could suggest any names, organisations, university departments, companies, governance bodies that I should contact, or research papers that I should read, I would be highly grateful.

    Many thanks,

    jo.

  • Curmudgeons Happen

    Posted on January 5th, 2014 Jo 1 comment

    I was talking with people at my friend’s big birthday bash yesterday. I mentioned I’m writing about Renewable Gas, and this led to a variety of conversations. Here is a kind of summary of one of the threads, involving several people.

    Why do people continue to insist that the wind turbine at Reading uses more energy than it generates ?

    Would it still be there if it wasn’t producing power ? Does David Cameron still have a wind turbine on his roof ? No. It wasn’t working, so it was taken down. I would ask – what are their sources of information ? What newspapers and websites do they read ?

    They say that the wind turbine at Reading is just there for show.

    Ah. The “Potemkin Village” meme – an idyllic-looking setting, but everything’s faked. The Chinese painting the desert green, etc.

    And then there are people that say that the only reason wind farms continue to make money is because they run the turbines inefficiently to get the subsidies.

    Ah. The “De-rating Machine” meme. You want to compare and contrast. Look at the amount of money, resources, time and tax breaks being poured into the UK Continental Shelf, and Shale Gas, by the current Government.

    Every new technology needs a kick start, a leg up. You need to read some of the reports on wind power as an asset – for example, the Offshore Valuation – showing a Net Present Value. After it’s all deployed, even with the costs of re-powering at the end of turbine life, offshore North Sea wind power will be a genuine asset.

    What I don’t understand is, why do people continue to complain that wind turbines spoil the view ? Look at the arguments about the Jurassic Coast in Dorset.

    I have contacts there who forward me emails about the disputes. The yachtsmen of Poole are in open rebellion because the wind turbines will be set in in their channels ! The tourists will still come though, and that’s what really counts. People in Dorset just appear to love arguing, and you’ve got some people doing good impressions of curmudgeons at the head of the branches of the Campaign for the Protection of Rural England (CPRE) and English Heritage.

    There are so many people who resist renewable energy, and refuse to accept we need to act on climate change. Why do they need to be so contrarian ? I meet them all the time.

    People don’t like change, but change happens. The majority of people accept that climate change is significant enough to act on, and the majority of people want renewable energy. It may not seem like that though. It depends on who you talk with. There’s a small number of people who vocalise scepticism and who have a disproportionate effect. I expect you are talking about people who are aged 55 and above ?

    Example : “Climate Change ? Haw haw haw !” and “Wind turbines ? They don’t work !” This is a cohort problem. All the nasty white racists are dying and being buried with respect by black undertakers. All the rabid xenophobes are in nursing homes being cared for in dignity by “foreigners”. Pretty soon Nigel Lawson could suffer from vascular dementia and be unable to appear on television.

    The media have been insisting that they need a balance of views, but ignoring the fact that the climate change “sceptics” are very small in number and not backed up by the science.

    Why does Nigel Lawson, with all his access and privilege, continue to insist that global warming is not a problem ?

    Fortunately, even though he’s “establishment” and has more influence than he really should have, the people that are really in charge know better. He should talk to the climate change scientists – the Met Office continue to invite sceptics to come and talk with them. He should talk to people in the energy sector – engineers and project managers. He should talk to people in the cross-party Parliamentary groups who have access to the information from the expert Select Committees.

    And what about Owen Paterson ? I cannot understand why they put a climate change sceptic in charge of the Department of the Environment.

    Well, we’ve always done that, haven’t we ? Put Ministers in Departments they know nothing about, so that they can learn their briefs. We keep putting smokers in charge of health policy. Why do you think he was put in there ?

    To pacify the Conservative Party.

    But I know Conservative Party activists who are very much in favour of renewable energy and understand the problems of climate change. It’s not the whole Party.

    We need to convince so many people.

    We only need to convince the people who matter. And anyway, we don’t need to do any convincing. Leaders in the energy industry, in engineering, in science, in Government (the real government is the Civil Service), the Parliament, they already understand the risks of climate change and the need for a major energy transition.

    People should continue to express their views, but people only vote on economic values. That’s why Ed Miliband has pushed the issue of the cost of energy – to try to bring energy to the forefront of political debate.

    What about nuclear fusion ?

    Nuclear fusion has been 35 years away for the last 35 years. It would be nice to have, because it could really solve the problem. Plus, it keeps smart people busy.

    What about conventional nuclear fission power ?

    I say, “Let them try !” The Hinkley Point C deal has so many holes in it, it’s nearly collapsed several times. I’m sure they will continue to try to build it, but I’m not confident they will finish it. Nuclear power as an industry is basically washed up in my view, despite the lengths that it goes to to influence society and lobby the Government.

    It’s going to be too late to answer serious and urgent problems – there is an energy crunch approaching fast, and the only things that can answer it are quick-to-build options such as new gas-fired power plants, wind farms, solar farms, demand reduction systems such as shutting down industry and smart fridges.

    How can the energy companies turn your fridge off ?

    If the appliances have the right software, simple frequency modulation of the power supply should be sufficient to trip fridges and freezers off. Or you could connect them to the Internet via a gateway. The problem is peak power demand periods, twice a day, the evening peak worse than the morning. There has been some progress in managing this due to switching light bulbs and efficient appliances, but it’s still critical. Alistair Buchanan, ex of Ofgem, went out on a limb to say that we could lose all our power production margins within a couple of years, in winter.

    But the refrigerators are being opened and closed in the early evening, so it would be the wrong time of day to switch them off. And anyway, don’t the fridges stop using power when they’re down to temperature ?

    Some of these things will need to be imposed regardless of concerns, because control of peak power demand is critical. Smart fridges may be some years away, but the National Grid already have contracts with major energy users to shed their load under certain circumstances. Certain key elements of the energy infrastructure will be pushed through. They will need to be pushed through, because the energy crunch is imminent.

    The time for democracy was ten years ago. To get better democracy you need much more education. Fortunately, young people (which includes young journalists) are getting that education. If you don’t want to be irritated by the views of climate change and energy sceptics, don’t bother to read the Daily Telegraph, the Daily Express, the Daily Mail, the online Register or the Spectator. The old school journalists love to keep scandal alive, even though any reason to doubt climate change science and renewable energy died in the 1980s.

    Although I’ve long since stopped trusting what a journalist writes, I’m one of those people who think that you should read those sources.

    I must admit I do myself from time to time, but just for entertainment.

  • Making The Sour Sweet

    Posted on January 1st, 2014 Jo No comments

    In the long view, some things are inevitable, and I don’t just mean death and taxes. Within the lifetime of children born today, there must be a complete transformation in energy. The future is renewable, and carefully deployed renewable energy systems can be reliable, sustainable and low cost, besides being low in carbon dioxide emissions to air. This climate safety response is also the answer to a degradation and decline in high quality mineral hydrocarbons – the so-called “fossil” fuels. Over the course of 2014 I shall be writing about Renewable Gas – sustainable, low emissions gas fuels made on the surface of the earth without recourse to mining for energy. Renewable Gas can store the energy from currently underused Renewable Electricity from major producers such as wind and solar farms, and help to balance out power we capture from the variable wind and sun. Key chemical players in these fuels : hydrogen, methane, carbon monoxide and carbon dioxide. Key chemistry : how to use hydrogen to recycle the carbon oxides to methane. How we get from here to there is incredibly important, and interestingly, methods and techniques for increasing the production volumes of Renewable Gas will be useful for the gradually fading fossil fuel industry. Much of the world’s remaining easily accessible Natural Gas is “sour” – laced with high concentrations of hydrogen sulfide and carbon dioxide. Hydrogen sulfide needs to be removed from the gas, but carbon dioxide can be recycled into methane, raising the quality of the gas. We can preserve the Arctic from fossil gas exploitation, and save ourselves from this economic burden and ecological risk, by employing relatively cheap ways to upgrade sour Natural Gas, from Iran, for example, while we are on the decades-long road of transitioning to Renewable Gas. The new burn is coming.

  • Champagne with Michael Caine

    Posted on December 11th, 2013 Jo No comments

    It was like a very bad sitcom from 1983 at the House of Commons this afternoon. “You saw Ed Balls running around in full Santa outfit ?” “Yeah ! The proper job.” “You know what we should do ? Put a piece of misteltoe above that door that everyone has to go through.” “You do it. I’ve heard you’re very good with sticky-backed plastic…”

    Once again Alan Whitehead MP has put on a marvellous Christmas reception of the All Party Parliamentary Renewable And Sustainable Energy Group, or PRASEG. The one flute of champagne in the desert-like heat of the Terrace Pavilion at the Houses of Parliament was enough to turn me the colour of beetroot and tomato soup, so when Alan despaired of getting anything altered, I took on the role of asking the lovely Pavilion staff to turn the heating down, what with Climate Change and everything, which they nobly obliged to do.

    In the meantime, I was invited onto the terrace overlooking the Thames by Christopher Maltin of Organic Power, to refresh myself. The winter night had fallen like a grey duvet, and what with the lingering fog and the lighting schemes for famous buildings, and the purple-blue sky behind it all, it was quite romantic out there. But very, very cold, so we didn’t discuss biogas and biosyngas for long.

    Back in the Pavilion, we were addressed by the fabulously debonair Lord Deben, John Gummer, sporting a cheery red pocket kerchief in his dark suit. During his talk, announcing the Committee on Climate Change confirmation of the Fourth Carbon Budget, and urging us to be “missionary” in influencing others over Climate Change mitigation, across the room I espied a younger gentleman who had, shall I say, a rather keen appearance. Was he a journalist, I asked myself, paying so much attention ? In fact, wasn’t he Leo Hickman, formerly of The Guardian ? No, he was not, but it was a bit shadowed at that end of the room, so I can’t blame myself for this mistake.

    When he had finally worked the room and ended up talking with me, he turned out to be Jack Tinley, Relationship Manager for Utilities at Lloyds Bank, in other words, in Big Finance, and currently seconded to the UK Government Department of Energy and Climate Change (DECC), so that was what explained his preppiness. I explained my continuing research into Renewable Gas, and he recommended Climate Change Capital for all questions of financing renewable energy, should I encounter any project that needed investment. Very helpful. Although he didn’t know who Leo Hickman is. Talking with him, and the guy from TEQs (Tradable Energy Quotas) was so interesting, I absentmindedly ate some…no… loads of party snacks. I need to make a strong mental note not to eat too many party snacks in future.

    After the illuminating and encouraging speeches from Lord Deben and Alan Whitehead MP, we were delightfully surprised by the attendance of, and an address by, Greg Barker MP, a “drive by speech” according to Alan. I was struck, that with his new specs, “Curly” Greg looks astonishingly like a young Michael Caine. During his speech he said that we ought to put the damaging controversy about energy behind us and move on into a year of great opportunity, now that the House of Lords had approved the Energy Bill. And then he pushed his glasses back up his nose in a way that was so Michael Caine, I nearly laughed out loud. Greg expressed the wish that the energy industry would become a “sexy sector”, at which point I corpsed and had to turn away silently laughing with a hand clamped over my mouth.

    Afterwards, I shook Greg by the hand, and asked if he would please unblock me on Twitter. He asked if I had been posting streams and streams of Tweets, and I said I don’t do that these days. When I suggested that he reminded me of Michael Caine, he was rather amused, but he did check I meant the Michael Caine of the 1960s, not the actor of today.

    Other people I spent time talking to at the PRASEG reception were Professor Dave Elliott of the Open University, and author on renewable energy; Steven English who installs ground source heat pumps; and Steve Browning, formerly of the National Grid; all in the Claverton Energy Research Group forum.

    I explained the foundations of my research into Renewable Gas to a number of people, and used the rhetorical question, “Germany’s doing it, so why can’t we ?” several times. I bet the Chinese are doing it too. I mean they’re doing everything else in renewable energy. In copious quantities, now they’ve seen the light about air pollution.

    I ended the event by having a serious chat with a guy from AMEC, the international engineering firm. He commented that the “Big Six” energy production and supply companies are being joined by smaller companies with new sources of investment capital in delivering new energy infrastructure.

    I said it was clear that “the flight of international capital” had become so bad, it had gone into geostationary orbit, not coming down to land very often, and that funding real projects could be hard.

    I suggested to him that the “Big Six” might need to be broken up, in the light of their edge-of-break-even, being locked into the use of fossil fuels, and the emergence of some of these smaller, more liquid players, such as Infinis.

    I also suggested that large companies such as AMEC should really concentrate on investing in new energy infrastructure projects, as some things, like the wind power development of the North Sea are creating genuine energy assets, easily shown if you consider the price of Natural Gas, which the UK is having to increasingly import.

  • Mind the Gap : BBC Costing the Earth

    Posted on October 16th, 2013 Jo No comments

    I listened to an interesting mix of myth, mystery and magic on BBC Radio 4.

    Myths included the notion that long-term, nuclear power would be cheap; that “alternative” energy technologies are expensive (well, nuclear power is, but true renewables are most certainly not); and the idea that burning biomass to create heat to create steam to turn turbines to generate electricity is an acceptably efficient use of biomass (it is not).

    Biofuelwatch are hosting a public meeting on this very subject :-
    http://www.biofuelwatch.org.uk/2013/burning_issue_public_event/
    “A Burning Issue – biomass and its impacts on forests and communities”
    Tuesday, 29th October 2013, 7-9pm
    Lumen Centre, London (close to St Pancras train station)
    http://www.lumenurc.org.uk/lumencontact.htm
    Lumen Centre, 88 Tavistock Place, London WC1H 9RS

    Interesting hints in the interviews I thought pointed to the idea that maybe, just maybe, some electricity generation capacity should be wholly owned by the Government – since the country is paying for it one way or another. A socialist model for gas-fired generation capacity that’s used as backup to wind and solar power ? Now there’s an interesting idea…




    http://www.bbc.co.uk/programmes/b03cn0rb

    “Mind the Gap”
    Channel: BBC Radio 4
    Series: Costing the Earth
    Presenter: Tom Heap
    First broadcast: Tuesday 15th October 2013

    Programme Notes :

    “Our energy needs are growing as our energy supply dwindles.
    Renewables have not come online quickly enough and we are increasingly
    reliant on expensive imported gas or cheap but dirty coal. Last year
    the UK burnt 50% more coal than in previous years but this helped
    reverse years of steadily declining carbon dioxide emissions. By 2015
    6 coal fired power stations will close and the cost of burning coal
    will increase hugely due to the introduction of the carbon price
    floor. Shale gas and biomass have been suggested as quick and easy
    solutions but are they really sustainable, or cheap?”

    “Carbon Capture and Storage could make coal or gas cleaner and a new
    study suggests that with CCS bio energy could even decrease global
    warming. Yet CCS has stalled in the UK and the rest of Europe and the
    debate about the green credentials of biomass is intensifying. So what
    is really the best answer to Britain’s energy needs? Tom Heap
    investigates.”

    00:44 – 00:48
    [ Channel anchor ]
    Britain’s energy needs are top of the agenda in “Costing the Earth”…

    01:17
    [ Channel anchor ]
    …this week on “Costing the Earth”, Tom Heap is asking if our
    ambitions to go green are being lost to the more immediate fear of
    blackouts and brownouts.

    01:27
    [ Music : Arcade Fire - "Neighbourhood 3 (Power Out)" ]

    [ Tom Heap ]

    Energy is suddenly big news – central to politics and the economy. The
    countdown has started towards the imminent shutdown of many coal-fired
    power stations, but the timetable to build their replacements has
    barely begun.

    It’ll cost a lot, we’ll have to pay, and the politicians are reluctant
    to lay out the bill. But both the official regulator and industry are
    warning that a crunch is coming.

    So in this week’s “Costing the Earth”, we ask if the goal of clean,
    green and affordable energy is being lost to a much darker reality.

    02:14
    [ Historical recordings ]

    “The lights have started going out in the West Country : Bristol,
    Exeter and Plymouth have all had their first power cuts this
    afternoon.”

    “One of the biggest effects of the cuts was on traffic, because with
    the traffic lights out of commission, major jams have built up,
    particularly in the town centres. One of the oddest sights I saw is a
    couple of ladies coming out of a hairdressers with towels around their
    heads because the dryers weren’t working.”

    “Television closes down at 10.30 [ pm ], and although the cinemas are
    carrying on more or less normally, some London theatres have had to
    close.”

    “The various [ gas ] boards on both sides of the Pennines admit to
    being taken by surprise with today’s cold spell which brought about
    the cuts.”

    “And now the major scandal sweeping the front pages of the papers this
    morning, the advertisement by the South Eastern Gas Board recommending
    that to save fuel, couples should share their bath.”

    [ Caller ]
    “I shall write to my local gas board and say don’t do it in
    Birmingham. It might be alright for the trendy South, but we don’t
    want it in Birmingham.”

    03:13
    [ Tom Heap ]

    That was 1974.

    Some things have changed today – maybe a more liberal attitude to
    sharing the tub. But some things remain the same – an absence of
    coal-fired electricity – threatening a blackout.

    Back then it was strikes by miners. Now it’s old age of the power
    plants, combined with an EU Directive obliging them to cut their
    sulphur dioxide and nitrous oxide emissions by 2016, or close.

    Some coal burners are avoiding the switch off by substituting wood;
    and mothballed gas stations are also on standby.

    But Dieter Helm, Professor of Energy Policy at the University of
    Oxford, now believes power cuts are likely.

    03:57
    [ Dieter Helm ]

    Well, if we take the numbers produced by the key responsible bodies,
    they predict that there’s a chance that by the winter of 2-15 [sic,
    meaning 2015] 2-16 [sic, meaning 2016], the gap between the demand for
    electricity and the supply could be as low as 2%.

    And it turns out that those forecasts are based on extremely
    optimistic assumptions about how far demand will fall in that period
    (that the “Green Deal” will work, and so on) and that we won’t have
    much economic growth.

    So basically we are on course for a very serious energy crunch by the
    winter of 2-15 [sic, meaning 2015] 2-16 [sic, meaning 2016], almost
    regardless of what happens now, because nobody can build any power
    stations between now and then.

    It’s sort of one of those slow motion car crashes – you see the whole
    symptoms of it, and people have been messing around reforming markets
    and so on, without addressing what’s immediately in front of them.

    [ Tom Heap ]

    And that’s where you think we are now ?

    [ Dieter Helm ]

    I think there’s every risk of doing so.

    Fortunately, the [ General ] Election is a year and a half away, and
    there’s many opportunities for all the political parties to get real
    about two things : get real about the energy crunch in 2-15 [sic,
    meaning 2015] 2-16 [sic, meaning 2016] and how they’re going to handle
    it; and get real about creating the incentives to decarbonise our
    electricity system, and deal with the serious environmental and
    security and competitive issues which our electricity system faces.

    And this is a massive investment requirement [ in ] electricity : all
    those old stations retiring [ originally built ] back from the 1970s –
    they’re all going to be gone.

    Most of the nuclear power stations are coming to the end of their lives.

    We need a really big investment programme. And if you really want an
    investment programme, you have to sit down and work out how you’re
    going to incentivise people to do that building.

    [ Tom Heap ]

    If we want a new energy infrastructure based on renewables and
    carbon-free alternatives, then now is the time to put those incentives
    on the table.

    The problem is that no-one seems to want to make the necessary
    investment, least of all the “Big Six” energy companies, who are
    already under pressure about high bills.

    [ "Big Six" are : British Gas / Centrica, EdF Energy (Electricite
    de France), E.On UK, RWE npower, Scottish Power and SSE ]

    Sam Peacock of the energy company SSE [ Scottish and Southern Energy ]
    gives the commercial proof of Dieter’s prediction.

    If energy generators can’t make money out of generating energy,
    they’ll be reluctant to do it.

    [ Sam Peacock ]

    Ofgem, the energy regulator, has looked at this in a lot of detail,
    and said that around 2015, 2016, things start to get tighter. The
    reason for this is European Directives, [ is [ a ] ] closing down some
    of the old coal plants. And also the current poor economics around [
    or surround [ -ing ] ] both existing plant and potential new plant.

    So, at the moment it’s very, very difficult to make money out of a gas
    plant, or invest in a new one. So this leads to there being, you know,
    something of a crunch point around 2015, 2016, and Ofgem’s analysis
    looks pretty sensible to us.

    [ Tom Heap ]

    And Sam Peacock lays the blame for this crisis firmly at the Government’s door.

    [ Sam Peacock ]

    The trilemma, as they call it – of decarbonisation, security of supply
    and affordability – is being stretched, because the Government’s
    moving us more towards cleaner technologies, which…which are more
    expensive.

    However, if you were to take the costs of, you know, the extra costs
    of developing these technologies off government [ sic, meaning
    customer ] bills and into general taxation, you could knock about over
    £100 off customer bills today, it’ll be bigger in the future, and you
    can still get that much-needed investment going.

    So, we think you can square the circle, but it’s going to take a
    little bit of policy movement [ and ] it’s going to take shifting some
    of those costs off customers and actually back where the policymakers
    should be controlling them.

    [ KLAXON ! Does he mean controlled energy prices ? That sounds a bit
    centrally managed economy to me... ]

    [ Tom Heap ]

    No surprise that a power company would want to shift the pain of
    rising energy costs from their bills to the tax bill.

    But neither the Government nor the Opposition are actually proposing this.

    Who pays the premium for expensve new energy sources is becoming like
    a game of pass the toxic parcel.

    [ Reference : http://en.wikipedia.org/wiki/Hot_potato_%28game%29 ]

    I asked the [ UK Government Department of ] Energy and Climate Change
    Secretary, Ed Davey, how much new money is required between now and
    2020.

    08:06

    [ Ed Davey ]

    About £110 billion – er, that’s critical to replace a lot of the coal
    power stations that are closing, the nuclear power stations that are [
    at the ] end of their lives, and replace a lot of the network which
    has come to the end of its life, too.

    So it’s a huge, massive investment task.

    [ Tom Heap ]

    So in the end we’re going to have to foot the bill for the £110 billion ?

    [ Ed Davey ]

    Yeah. Of course. That’s what happens now. People, in their bills that
    they pay now, are paying for the network costs of investments made
    several years, even several decades ago.

    [ Yes - we're still paying through our national nose to dispose of
    radioactive waste and decommission old nuclear reactors. The liability
    of it all weighs heavily on the country's neck... ]

    And there’s no escaping that – we’ve got to keep the lights on – we’ve
    got to keep the country powered.

    You have to look at both sides of the equation. If we’re helping
    people make their homes more inefficient [ sic, meaning energy
    efficient ], their product appliances more efficient, we’re doing
    everything we possibly can to try to help the bills be kept down,

    while we’re having to make these big investments to keep the lights
    on, and to make sure that we don’t cook the planet, as you say.

    [ Tom Heap ]

    You mention the lights going out. There are predictions that we’re
    headed towards just 2% of spare capacity in the system in a few years’
    time.

    Are you worried about the dangers of, I don’t know, maybe not lights
    going out for some people, but perhaps big energy users being told
    when and when [ sic, meaning where ] they can’t use power in the
    winter ?

    [ Ed Davey ]

    Well, there’s no doubt that as the coal power stations come offline,
    and the nuclear power plants, er, close, we’re going to have make sure
    that new power plants are coming on to replace them.

    And if we don’t, there will be a problem with energy security.

    Now we’ve been working very hard over a long time now to make sure we
    attract that investment. We’ve been working with Ofgem, the regulator;
    with National Grid, and we’re…

    [ Tom Heap ]

    …Being [ or it's being ] tough. I don’t see companies racing to come
    and fill in the gap here and those coal power plants are going off
    soon.

    [ Ed Davey ]

    …we’re actually having record levels of energy investment in the country.

    The problem was for 13 years under the last Government
    [ same old, same old Coalition argument ] we saw low levels of investment
    in energy, and we’re having to race to catch up, but fortunately we’re
    winning that race. And we’re seeing, you know, billions of pounds
    invested but we’ve still got to do more. We’re not there. I’m not
    pretending we’re there yet. [ Are we there, yet ? ] But we do have the
    policies in place.

    So, Ofgem is currently consulting on a set of proposals which will
    enable it to have reserve power to switch on at the peak if it’s
    needed.

    We’re, we’ve, bringing forward proposals in the Energy Bill for what’s
    called a Capacity Market, so we can auction to get that extra capacity
    we need.

    So we’ve got the policies in place.

    [ Tom Heap ]

    Some of Ed Davey’s policies, not least the LibDem [ Liberal Democrat
    Party ] U-turn on nuclear, have been guided by DECC [ Department of
    Energy and Climate Change ] Chief Scientist David MacKay, author of
    the influential book “Renewable Energy without the Hot Air” [ sic,
    actually "Sustainable Energy without the Hot Air" ].

    Does he think the lights will dim in the second half of this decade ?

    [ David MacKay ]

    I don’t think there’s going to be any problem maintaining the capacity
    that we need. We just need to make clear where Electricity Market
    Reform [ EMR, part of the Energy Bill ] is going, and the way in which
    we will be maintaining capacity.

    [ Tom Heap ]

    But I don’t quite understand that, because it seems to me, you know,
    some of those big coal-fired power stations are going to be going off.
    What’s going to be coming in their place ?

    [ David MacKay ]

    Well, the biggest number of power stations that’s been built in the
    last few years are gas power stations, and we just need a few more gas
    power stations like that, to replace the coal
    , and hopefully some
    nuclear power stations will be coming on the bars, as well as the wind
    farms that are being built at the moment.

    [ Tom Heap ]

    And you’re happy with that increase in gas-fired power stations, are
    you ? I mean, you do care deeply, personally, about reducing our
    greenhouse gases, and yet you’re saying we’re going to have to build
    more gas-fired power stations.

    [ David MacKay ]

    I do. Even in many of the pathways that reach the 2050 target, there’s
    still a role for gas in the long-term, because some power sources like
    wind and solar power are intermittent, so if you want to be keeping
    the lights on in 2050 when there’s no wind and there’s no sun, you’re
    going to need some gas power stations there
    . Maybe not operating so
    much of the time as they do today, but there’ll still be a role in
    keeping the lights on.

    [ KLAXON ! If gas plants are used only for peak periods or for backup to
    renewables, then the carbon emissions will be much less than if they are
    running all the time. ]

    [ Tom Heap ]

    Many energy experts though doubt that enough new wind power or nuclear
    capacity could be built fast enough to affect the sums in a big way by
    2020.

    But that isn’t the only critical date looming over our energy system.
    Even more challenging, though more distant, is the legally binding
    objective of cutting greenhouse gas emissions in 2050.

    David MacKay wants that certainty to provide the foundation for energy
    decisions, and he showed me the effect of different choices with the
    “Ultimate Future Energy App”. I was in his office, but anyone can try it online.

    [ David MacKay ]

    It’s a 2050 calculator. It computes energy demand and supply in
    response to your choices, and it computes multiple consequences of
    your choices. It computes carbon consequences. It also computes for
    you estimates of air quality, consequences of different choices;
    security of supply, consequences; and the costs of your choices.

    So with this 2050 calculator, it’s an open source tool, and anyone can
    go on the web and use the levers to imagine different futures in 2050
    of how much action we’ve taken in different demand sectors and in
    different supply sectors.

    The calculator has many visualisations of the pathway that you’re choosing
    and helps people understand all the trade-offs… There’s no silver
    bullet for any of this. If I dial up a pathway someone made earlier,
    we can visualise the implications in terms of the area occupied for
    the onshore wind farms, and the area in the sea for the offshore wind
    farms, and the length of the wave farms that you’ve built, and the
    land area required for energy crops.

    And many organisations have used this tool and some of them have given
    us their preferred pathway. So you can see here the Friends of the
    Earth have got their chosen pathway, the Campaign to Protect Rural
    England, and various engineers like National Grid and Atkins have got
    their pathways.

    So you can see alternative ways of achieving our targets, of keeping
    the lights on and taking climate change action. All of those pathways
    all meet the 2050 target, but they do so with different mixes.

    [ Tom Heap ]

    And your view of this is you sort of can’t escape from the scientific
    logic and rigour of it. You might wish things were different or you
    could do it differently, but you’re sort of saying “Look, it’s either
    one thing or the other”. That’s the point of this.

    [ David MacKay ]

    That’s true. You can’t be anti-everything. You can’t be anti-wind and
    anti-nuclear and anti-home insulation. You won’t end up with a plan
    that adds up.

    [ KLAXON ! But you can be rationally against one or two things, like
    expensive new nuclear power, and carbon and particulate emissions-heavy
    biomass for the generation of electricity. ]

    [ Tom Heap ]

    But isn’t that exactly kind of the problem that we’ve had, without
    pointing political fingers, that people rather have been
    anti-everything, and that’s why we’re sort of not producing enough new
    energy sources ?

    [ David MacKay ]

    Yeah. The majority of the British public I think are in favour of many
    of these sources, but there are strong minorities who are vocally
    opposed to every one of the major levers in this calculator. So one
    aspiration I have for this tool is it may help those people come to a
    position where they have a view that’s actually consistent with the
    goal of keeping the lights on.

    [ Tom Heap ]

    Professor MacKay’s calculator also computes pounds and pence,
    suggesting that both high and low carbon electricity work out pricey
    in the end.

    [ David MacKay ]

    The total costs of all the pathways are pretty much the same.
    “Business as Usual” is cheaper in the early years, and then pays more,
    because on the “Business as Usual”, you carry on using fossil fuels,
    and the prices of those fossil fuels are probably going to go up.

    All of the pathways that take climate change action have a similar
    total cost, but they pay more in the early years, ’cause you have to
    pay for things like building insulation and power stations, like
    nuclear power stations, or wind power, which cost up-front, but then
    they’re very cheap to run in the future.

    [ KLAXON ! Will the cost of decommissioning nuclear reactors and the
    costs of the waste disposal be cheap ? I think not... ]

    So the totals over the 40 or 50 year period here, are much the same for these.

    [ Tom Heap ]

    The cheapest immediate option of all is to keep shovelling the coal.
    And last year coal overtook gas to be our biggest electricity
    generation source, pushing up overall carbon emissions along the way
    by 4.5%

    [ KLAXON ! This is not very good for energy security - look where the
    coal comes from... ]

    As we heard earlier, most coal-fired power stations are scheduled for
    termination, but some have won a reprieve, and trees are their
    unlikely saviour.

    Burning plenty of wood chip [ actually, Tom, it's not wood "chip", it's
    wood "pellets" - which often have other things mixed in with the wood,
    like coal... ] allows coal furnaces to cut the sulphur dioxide and nitrous
    oxide belching from their chimneys to below the level that requires their
    closure under European law.

    But some enthusiasts see wood being good for even more.

    16:19

    [ Outside ]

    It’s one of those Autumn days that promises to be warm, but currently
    is rather moist. I’m in a field surrounded by those dew-laden cobwebs
    you get at this time of year.

    But in the middle of this field is a plantation of willow. And I’m at
    Rothamsted Research with Angela Karp who’s one of the directors here.

    Angela, tell me about this willow I’m standing in front of here. I
    mean, it’s about ten foot high or so, but what are you seeing ?

    [ Angela Karp ]

    Well, I’m seeing one of our better varieties that’s on display here.
    We have a demonstration trial of about ten different varieties. This
    is a good one, because it produces a lot of biomass, quite easily,
    without a lot of additional fertilisers or anything. And as you can
    see it’s got lovely straight stems. It’s got many stems, and at the
    end of three years, we would harvest all those stems to get the
    biomass from it. It’s nice and straight – it’s a lovely-looking, it’s
    got no disease, no insects on it, very nice, clean willow.

    [ Tom Heap ]

    So, what you’ve been working on here as I understand it is trying to
    create is the perfect willow – the most fuel for the least input – and
    the easiest to harvest.

    [ Angela Karp ]

    That’s absolutely correct, because the whole reason for growing these
    crops is to get the carbon from the atmosphere into the wood, and to
    use that wood as a replacement for fossil fuels. Without putting a lot
    of inputs in, because as soon as you add fertilisers you’re using
    energy and carbon to make them, and that kind of defeats the whole
    purpose of doing this.

    [ KLAXON ! You don't need to use fossil fuel energy or petrochemicals or
    anything with carbon emissions to make fertiliser ! ... Hang on, these
    are GM trees, right ? So they will need inputs... ]

    [ Tom Heap ]

    And how much better do you think your new super-variety is, than say,
    what was around, you know, 10 or 15 years ago. ‘Cause willow as an
    idea for burning has been around for a bit. How much of an improvement
    is this one here ?

    [ Angela Karp ]

    Quite a bit. So, these are actually are some of the, if you like,
    middle-term varieties. So we started off yielding about 8 oven-dry
    tonnes per hectare, and now we’ve almost doubled that.

    [ Tom Heap ]

    How big a place do you think biomass can have in the UK’s energy
    picture in the future ?

    [ Angela Karp ]

    I think that it could contribute between 10% and 15% of our energy. If
    we were to cultivate willows on 1 million hectares, we would probably
    provide about 3% to 4% of energy in terms of electricity, and I think
    that’s kind of a baseline figure. We could cultivate them on up to 3
    million hectares, so you can multiply things up, and we could use them
    in a much more energy-efficient way.

    [ KLAXON ! Is that 4% of total energy or 4% of total electricity ?
    Confused. ]

    [ Tom Heap ]

    Do we really have 3 million hectares going a-begging for planting willow in ?

    [ Angela Karp ]

    Actually, surprisingly we do. So, people have this kind of myth
    there’s not enough land, but just look around you and you will find
    there’s lots of land that’s not used for cultivating food crops.

    We don’t see them taking over the whole country. We see them being
    grown synergistically with food crops.

    [ KLAXON ! This is a bit different than the statement made in 2009. ]

    [ Tom Heap ]

    But I’d just like to dig down a little bit more into the carbon cycle
    of the combustion of these things, because that’s been the recent
    criticism of burning a lot of biomass, is that you put an early spike
    in the amount of carbon in the atmosphere, if you start burning a lot
    of biomass, because this [ sounds of rustling ], this plant is going
    to be turned into, well, partly, CO2 in the atmosphere.

    [ Angela Karp ]

    Yes, I think that’s probably a simple and not totally correct way of
    looking at it. ‘Cause a lot depends on the actual conversion process
    you are using.

    So some conversion processes are much more efficient at taking
    everything and converting it into what you want.

    Heat for example is in excess of 80%, 90% conversion efficiency.

    Electricity is a little bit more of the problem. And there, what
    they’re looking at is capturing some of the carbon that you lose, and
    converting that back in, in carbon storage processes, and that’s why
    there’s a lot of talk now about carbon storage from these power
    stations.

    That I think is the future. It’s a question of connecting up all parts
    of the process, and making sure that’s nothing wasted.

    20:02

    [ Tom Heap ]

    So, is wood a desirable greener fuel ?

    Not according to Almuth Ernsting of Biofuelwatch, who objects to the
    current plans for large-scale wood burning, its use to prop up coal,
    and even its low carbon claims.

    [ Almuth Ernsting ]

    The currently-announced industry plans, and by that I mean existing
    power stations, but far more so, power stations which are in the
    planning process [ and ] many of which have already been consented –
    those [ biomass ] power stations, would, if they all go ahead,
    require to burn around 82 million tonnes of biomass, primarily wood,
    every year. Now by comparison, the UK in total only produces around
    10 million tonnes, so one eighth of that amount, in wood, for all
    industries and purposes, every year.

    We are looking on the one hand at a significant number of proposed,
    and in some cases, under-construction or operating new-build biomass
    power stations, but the largest single investment so far going into
    the conversion of coal power station units to biomass, the largest and
    most advanced one of which at the moment is Drax, who are, have
    started to move towards converting half their capacity to burning wood
    pellets.

    [ Tom Heap ]

    Drax is that huge former, or still currently, coal-fired power station
    in Yorkshire, isn’t it ?

    [ Almuth Ernsting ]

    Right, and they still want to keep burning coal as well. I mean, their
    long-term vision, as they’ve announced, would be for 50:50 coal and
    biomass.

    [ Tom Heap ]

    What do you think about that potential growth ?

    [ Almuth Ernsting ]

    Well, we’re seriously concerned. We believe it’s seriously bad news
    for climate change, it’s seriously bad news for forests, and it’s
    really bad news for communities, especially in the Global South, who
    are at risk of losing their land for further expansion of monoculture
    tree plantations, to in future supply new power stations in the UK.

    A really large amount, increasingly so, of the wood being burned,
    comes from slow-growing, whole trees that are cut down for that
    purpose, especially at the moment in temperate forests in North
    America. Now those trees will take many, many decades to grow back
    and potentially re-absorb that carbon dioxide, that’s if they’re
    allowed and able to ever grow back.

    [ Tom Heap ]

    There’s another technology desperate for investment, which is critical
    to avoiding power failure, whilst still hitting our mid-century carbon
    reduction goals – CCS – Carbon Capture and Storage, the ability to
    take the greenhouse gases from the chimney and bury them underground.

    It’s especially useful for biomass and coal, with their relatively
    high carbon emissions, but would also help gas be greener.

    The Chancellor has approved 30 new gas-fired power stations, so long
    as they are CCS-ready [ sic, should be "capture ready", or
    "carbon capture ready" ].

    Jon Gibbons is the boss of the UK CCS Research Centre, based in an
    industrial estate in Sheffield.

    [ Noise of processing plant ]

    Jon’s just brought me up a sort of 3D maze of galvanized steel and
    shiny metal pipes to the top of a tower that must be 20 or so metres
    high.

    Jon, what is this ?

    [ Jon Gibbons ]

    OK, so this is our capture unit, to take the CO2 out of the combustion
    products from gas or coal. In the building behind us, in the test rigs
    we’ve got, the gas turbine or the combustor rig, we’re burning coal or
    gas, or oil, but mainly coal or gas.

    We’re taking the combustion products through the green pipe over
    there, bringing it into the bottom of the unit, and then you can see
    these big tall columns we’ve got, about 18 inches diameter, half a
    metre diameter, coming all the way up from the ground up to the level
    we’re at.

    It goes into one of those, it gets washed clean with water, and it
    goes into this unit over here, and there it meets an amine solvent, a
    chemical that will react reversibly with CO2, coming in the opposite
    direction, over packing. So, it’s like sort of pebbles, if you can
    imagine it, there’s a lot of surface area. The gas flows up, the
    liquid flows down, and it picks up the CO2, just mainly the CO2.

    [ Tom Heap ]

    And that amine, that chemical as you call it, is stripping the CO2 out
    of that exhaust gas. This will link to a storage facility.

    What would then happen to the CO2 ?

    [ Jon Gibbons ]

    What would then happen is that the CO2 would be compressed up to
    somewhere in excess of about 100 atmospheres. And it would turn from
    being a gas into something that looks like a liquid, like water, about
    the same density as water. And then it would be taken offshore in the
    UK, probably tens or hundreds of kilometres offshore, and it would go
    deep, deep down, over a kilometre down into the ground, and basically
    get squeezed into stuff that looks like solid rock. If you go and look
    at a sandstone building – looks solid, but actually, maybe a third of
    it is little holes. And underground, where you’ve got cubic kilometres
    of space, those little holes add up to an awful lot of free space. And
    the CO2 gets squeezed into those, over time, and it spreads out, and
    it just basically sits there forever, dissolves in the water, reacts
    with the rocks, and will stay there for millions of years.

    [ Tom Heap ]

    Back in his office, I asked Jon why CCS seemed to be stuck in the lab.

    [ Jon Gibbons ]

    We’re doing enough I think on the research side, but what we really
    need to do, is to do work on a full-scale deployment. Because you
    can’t work on research in a vacuum. You need to get feedback –
    learning by doing – from actual real projects.

    And a lot of the problems we’ve got on delivering CCS, are to do with
    how you handle the regulation for injecting CO2, and again, you can
    only do that in real life.

    So what we need to do is to see the commercialisation projects that
    are being run by the Department of Energy and Climate Change actually
    going through to real projects that can be delivered.

    [ Tom Heap ]

    Hmm. When I talk to engineers, they’re always very passionate and
    actually quite optimistic about Carbon Capture and Storage. And when
    I talk to people in industry, or indeed read the headlines, not least
    a recent cancellation in Norway, it always seems like a very bleak picture.

    [ Jon Gibbons ]

    I think people are recognising that it’s getting quite hard to get
    money for low carbon technologies.

    So – recent presentation we had at one of our centre meetings, was
    actually a professor from the United States, Howard Herzog. And he
    said “You think you’re seeing a crisis in Carbon Capture and Storage.
    But what you’re actually seeing is a crisis in climate change
    mitigation.”

    [ KLAXON ! Priming us for a scaling back of commitment to the
    Climate Change Act ? I do hope not. ]

    Now, Carbon Capture and Storage, you do for no other purpose than
    cutting CO2 emissions to the atmosphere, and it does that extremely
    effectively. It’s an essential technology for cutting emissions. But
    until you’ve got a global process that says – actually we’re going to
    get on top of this problem; we’re going to cut emissions – get them to
    safe level before we actually see people dying in large numbers from
    climate change effects – ’cause, certainly, if people start dying,
    then we will see a response – but ideally, you’d like to do it before
    then. But until you get that going, then actually persuading people to
    spend money for no other benefit than sorting out the climate is
    difficult.

    There’s just no point, you know, no country can go it alone, so you
    have to get accommodation. And there, we’re going through various
    processes to debate that. Maybe people will come to an accommodation.
    Maybe the USA and China will agree to tackle climate change. Maybe
    they won’t.

    What I am fairly confident is that you won’t see huge, you know,
    really big cuts in CO2 emissions without that global agreement. But
    I’m also confident that you won’t see big cuts in CO2 emissions
    without CCS deployment.

    And my guess is there’s about a 50:50 chance that we do CCS before we
    need to, and about a 50:50 chance we do it after we have to. But I’m
    pretty damn certain we’re going to do it.

    [ Tom Heap ]

    But we can’t wait for a global agreement that’s already been decades
    in the making, with still no end in sight.

    We need decisions now to provide more power with less pollution.

    [ Music lyrics : "What's the plan ? What's the plan ?" ]

    [ Tom Heap ]

    Dieter Helm, Professor of Energy Policy at the University of Oxford
    believes we can only deliver our plentiful green energy future if we
    abandon our attitude of buy-now pay-later.

    [ KLAXON ! Does he mean a kind of hire purchase energy economy ?
    I mean, we're still paying for nuclear electricity from decades ago,
    in our bills, and through our taxes to the Department of Energy and
    Climate Change. ]

    [ Dieter Helm ]

    There’s a short-term requirement and a long-term requirement. The
    short-term requirement is that we’re now in a real pickle. We face
    this energy crunch. We’ve got to try to make the best of what we’ve
    got. And I think it’s really like, you know, trying to get the
    Spitfires back up again during the Battle of Britain. You know, you
    patch and mend. You need somebody in command. You need someone
    in control. And you do the best with what you’ve got.

    In that context, we then have to really stand back and say, “And this
    is what we have to do to get a serious, long-term, continuous, stable
    investment environment, going forward.” In which, you know, we pay the
    costs, but of course, not any monopoly profits, not any excess
    profits, but we have a world in which the price of electricity is
    related to the cost.”

    [ KLAXON ! Is Dieter Helm proposing state ownership of energy plant ? ]

    29:04

    [ Programme anchor ]

    “Costing the Earth” was presented by Tom Heap, and made in Bristol by
    Helen Lennard.

    [ Next broadcast : 16th October 2013, 21:00, BBC Radio 4 ]

  • High Stakes Energy Chutzpah

    Posted on October 15th, 2013 Jo No comments





    Image Credit : Carbon Brief


    After Gordon Brown MP, the UK’s former Prime Minister, was involved in several diplomatic missions around the time of the oil price spike crisis in 2008, and the G20 group of countries went after fossil fuel subsidies (causing easily predictable civil disturbances in several parts of the world), it seemed to me to be obvious that energy price control would be a defining aspect of near-term global policy.

    With the economy still in a contracted state (with perhaps further contraction to follow on), national interest for industrialised countries rests in maintaining domestic production and money flows – meaning that citizens should not face sharply-rising utility bills, so that they can remain active in the economy.

    In the UK, those at the fringe of financial sustainability are notoriously having to face the decision about whether to Eat or Heat, and Food Banks are in the ascendance. Various charity campaigns have emphasised the importance of affordable energy at home, and the leader of the Labour Party, Ed Miliband MP has made an energy price freeze a potential plank of his policy ahead of the push for the next General Election.

    The current Prime Minister, David Cameron MP has called this commitment a “con”, as his political counterpart cannot determine the wholesale price of gas (or power) in the future.

    This debate comes at a crucial time in the passage of the UK Energy Bill, as the Electricity Market Reform (EMR), a key component of this legislation has weighty subsidies embedded in it for new nuclear power and renewable energy, and also backup plants (mostly Natural Gas-fired) for periods of high power demand, in what is called the “Capacity Market“. These subsidies will largely be paid for by increases in electricity bills, in one way or another.

    The EMR hasn’t yet passed into the statute books, so the majority of “green energy taxes” haven’t yet coming into being – although letters of “comfort” may have been sent to to (one or more) companies seeking to invest in new nuclear power facilities, making clear the UK Government’s monetary commitment to fully supporting the atomic “renaissance”.

    With a bucketload of chutzpah, Scottish and Southern Energy (SSE) and Electricite de France’s Vincent de Rivaz blamed green energy policies for contributing to past, current and future power price rises. Both of these companies stand to gain quite a lot from the EMR, so their blame-passing sounds rather hollow.

    The Daily Mail and the Daily Telegraph have seemed to me to be incendiary regarding green energy subsidies, omitting to mention that whilst the trajectory of the cost of state support for renewable energy is easily calculated, volatility in global energy markets for gas and oil – and even coal – are indeterminable. Although “scandal-hugging” (sensation equals sales) columnists and editors at the newspapers don’t seem to have an appreciation of what’s really behind energy price rises, the Prime Minister – and Ed Davey MP – have got it – and squarely placed the responsibility for energy price rises on fossil fuels.

    The price tag for “green energy policies” – even those being offered to (low carbon, but not “green”) nuclear power – should be considerably less than the total bill burden for energy, and hold out the promise of energy price stabilisation or even suppression in the medium- to long-term, which is why most political parties back them.

    The agenda for new nuclear power appears to be floundering – it has been suggested by some that European and American nuclear power companies are not solvent enough to finance a new “fleet” of reactors. In the UK, the Government and its friends in the nuclear industry are planning to pull in east Asian investment (in exchange for large amounts of green energy subsidies, in effect). I suspect a legal challenge will be put forward should a trade agreement of this nature be signed, as soon as its contents are public knowledge.

    The anger stirred up about green energy subsidies has had a reaction from David Cameron who has not dispensed with green energy policy, but declared that subsidies should not last longer than they are needed – probably pointing at the Germany experience of degressing the solar power Feed-in Tariff – although he hasn’t mentioned how nuclear subsidies could be ratcheted down, since the new nuclear programme will probably have to rely on state support for the whole of its lifecycle.

    Meanwhile, in the Press, it seems that green energy doesn’t work, that green energy subsidies are the only reason for energy bill rises, we should drop the Climate Change Act, and John Prescott MP, and strangely, a woman called Susan Thomas, are pushing coal-fired power claiming it as the cheaper, surer – even cleaner – solution, and there is much scaremongering about blackouts.




    http://www.mirror.co.uk/news/uk-news/john-prescott-its-coal-power-2366172

    John Prescott on why it’s coal power to the people

    12 Oct 2013

    We can’t just stand back and give these energy companies money to burn.

    It’s only 72 days until Christmas. But the greedy big six energy companies are giving themselves an early present. SSE has just announced an inflation-beating 8.2 per cent price rise on gas and electricity.

    The other five will soon follow suit, no doubt doing their best to beat their combined profit from last year of £10billion.

    Their excuse now is to blame climate change. SSE says it could cut bills by £110 if Government, not the Big Six, paid for green energy ­subsidies and other environmental costs, such as free loft insulation.

    So your bill would look smaller but you’d pay for it with higher taxes. Talk about smoke and mirrors.

    But Tory-led governments have always been hopeless at protecting the energy security of this country.

    It’s almost 40 years since Britain was hit by blackouts when the Tories forced the UK into a three-day week to conserve energy supplies.

    But Ofgem says the margin of ­security between energy demand and supply will drop from 14 per cent to 4 per cent by 2016. That’s because we’ve committed to closing nine oil and coal power stations to meet EU ­environmental law and emissions targets. These targets were meant to encourage the UK to move to cleaner sources of energy.

    But this government drastically reduced subsidies for renewable energy such as wind and solar, let Tory energy ministers say “enough is enough” to onshore wind and failed to get agreement on replacing old
    nuclear power stations.

    On top of that, if we experience a particularly cold winter, we only have a reserve of 5 per cent.

    But the Government is committed to hundreds of millions pounds of subsidies to pay the energy ­companies to mothball these oil and coal power stations. As someone who ­negotiated the first Kyoto agreement in 1997 and is involved in its replacement by 2015, it is clear European emissions targets will not be met in the short term by 2020.

    So we have to be realistic and do what we can to keep the lights on, our people warm and our country running.

    We should keep these oil and coal power stations open to reduce the risk of blackouts – not on stand-by or mothballed but working now.

    The former Tory Energy minister John Hayes hinted at this but knew he couldn’t get it past his Lib Dem Energy Secretary boss Ed Davey. He bragged he’d put the coal in coalition. Instead he put the fire in fired.

    We can’t just stand back and give these energy companies money to burn. The only energy security they’re interested in is securing profit and maximising taxpayer subsidies.

    That’s why Ed Miliband’s right to say he’d freeze bills for 20 months and to call for more ­transparency.

    We also need an integrated mixed energy policy – gas, oil, wind, nuclear and, yes, coal.




    http://www.oxfordmail.co.uk/yoursay/letters/10722697.Bills_have_risen_to_pay_for_policy_changes/?ref=arc

    Letters

    Bills have risen to pay for policy changes

    Tuesday 8th October 2013

    in Letters

    THE recent Labour Party pledge to freeze energy bills demonstrated how to have a political cake and eat it. The pledge is an attempt to rectify a heinous political mistake caused by political hubris and vanity.

    In 2008, the then energy minister, Ed Miliband, vowed to enact the most stringent cuts in power emissions in the entire world to achieve an unrealistic 80 per cent cut in carbon emissions by closing down fully functioning coal power stations.

    He was playing the role of climate saint to win popularity and votes.

    I was a member when Ed Miliband spoke in Oxford Town Hall to loud cheers from numerous low-carbon businesses, who stood to profit from his legislation. I was concerned at the impact on the consumer, since it is widely known that coal power stations offer the cheapest energy to consumers compared to nuclear and wind.

    So I wrote to Andrew Smith MP at great length and he passed on my concerns to the newly-formed Department of Energy and Climate Change that had replaced the previous Department of Energy and Business.

    This new department sent me a lengthy reply, mapping out their plans for wind turbines at a projected cost to the consumer of £100bn to include new infrastructure and amendments to the National Grid. This cost would be added to consumer electricity bills via a hidden green policy tariff.
    This has already happened and explains the rise in utility bills.

    Some consumers are confused and wrongly believe that energy companies are ‘ripping them off’.

    It was clearly stated on Channel 4 recently that energy bills have risen to pay for new policy changes. These policy changes were enacted by Ed Miliband in his popularity bid to play climate saviour in 2008. Energy bills have now rocketed. So Ed has cost every single consumer in the land several hundred pounds extra on their bills each year.

    SUSAN THOMAS, Magdalen Road, Oxford




    LETTERS
    Daily Mail
    14th October 2013

    [ Turned off: Didcot power station's closure could lead to power cuts. ]

    Labour’s power failures will cost us all dear

    THE Labour Party’s pledge to freeze energy bills is an attempt to rectify a horrible political mistake. But it might be too late to dig us out of the financial black hole caused by political vanity.

    In 2008, then Energy Minister Ed Miliband vowed to enact the most stringent cuts in power emissions in the world to achieve an unrealistic 80 per cent cut in carbon emissions by closing down coal power stations. He was playing the role of climate saint to win votes.

    I was in the audience in Oxford Town Hall that day and recall the loud cheers from numerous representatives of low-carbon businesses as his policies stood to make them all rather wealthy, albeit at the expense of every electricity consumer in the land.

    I thought Ed had become entangled in a spider’s web.

    I was concerned at the impact on the consumer as it’s widely known that coal power stations offer the cheapest energy to consumers.

    I contacted the Department of Energy and Climate Change and it sent me a lengthy reply mapping out its plans for energy projects and wind turbines – at a projected cost to the consumer of £100 billion – including new infrastructure and national grid amendments.

    It explained the cost would be added to consumer electricity bills via a ‘green policy’ tariff. This has now happened and explains the rise in utility bills.

    Some consumers wrongly believe the energy companies are ripping them off. In fact, energy bills have risen to pay for policy changes.

    The people to benefit from this are low-carbon venture capitalists and rich landowners who reap subsidy money (which ultimately comes from the hard-hit consumer) for having wind farms on their land.

    Since Didcot power station closed I’ve suffered five power cuts in my Oxford home. If we have a cold winter, we now have a one-in-four chance of a power cut.

    The 2008 legislation was a huge mistake. When power cuts happen, people will be forced to burn filthy coal and wood in their grates to keep warm, emitting cancer-causing particulates.

    Didcot had already got rid of these asthma-causing particulates and smoke. It emitted mainly steam and carbon dioxide which aren’t harmful to our lungs. But the clean, non-toxic carbon dioxide emitted by Didcot was classified by Mr Miliband as a pollutant. We are heading into a public health and financial disaster.

    SUSAN THOMAS, Oxford




    http://www.europeanvoice.com/article/2013/october/ceos-demand-reform-of-eu-renewable-subsidies/78418.aspx

    CEOs demand reform of EU renewable subsidies
    By Dave Keating – 11.10.2013

    Companies ask the EU to stop subsidising the renewable energy sector.

    The CEOs of Europe’s ten biggest energy companies called for the European Union and member states to stop subsidising the renewable energy sector on Friday (11 October), saying that the priority access given to the sector could cause widespread blackouts in Europe over the winter.

    At a press conference in Brussels, Paolo Scaroni, CEO of Italian oil and gas company ENI, said: “In the EU, companies pay three times the price of gas in America, twice the price of power. How can we dream of an industrial renaissance with such a differential?”

    The CEOs said the low price of renewable energy as a result of government subsidies is causing it to flood the market. They called for an EU capacity mechanism that would pay utilities for keeping electric power-generating capacity on standby to remedy this problem.

    They also complained that the low price of carbon in the EU’s emissions trading scheme (ETS) is exacerbating the problem…




    http://www.dailymail.co.uk/debate/article-2458333/DAILY-MAIL-COMMENT-Press-freedom-life-death-matter.html

    Well said, Sir Tim

    Days after David Cameron orders a review of green taxes, which add £132 to power bills, the Lib Dem Energy Secretary vows to block any attempt to cut them.

    Reaffirming his commitment to the levies, which will subsidise record numbers of inefficient wind farms approved this year, Ed Davey adds: ‘I think we will see more price rises.’

    The Mail can do no better than quote lyricist Sir Tim Rice, who has declined more than £1million to allow a wind farm on his Scottish estate. ‘I don’t see why rich twits like me should be paid to put up everybody else’s bills,’ he says. ‘Especially for something that doesn’t work.’

  • The BBC loses its perch

    Posted on October 10th, 2013 Jo No comments


    Image Credit : Sea Angling Staithes

    In the matter of the BBC and balance in the reporting of Climate Change, I believe they might have lost their perch. Admittedly, it wasn’t a very large perch – and some were swaying in any breeze that came along. But to invite one of the fringiest of the fringe of science “sceptics” onto a Radio 4 broadcast on the day of the publication of the Intergovernmental Panel on Climate Change Fifth Assessment Report Working Group 1 demonstrates that the BBC policy on achieving a suitable, accurate and appropriate fulcrum in the balance of science reporting is an ex-policy, a former policy, gone and pushing up the Cleeseian daisies.

    Citizens have been piqued, annoyed, needled, frustrated, despairing and, frankly, appalled, and some measures have been taken to remonstrate with the BBC. One such is below. Dear Reader, your comments on the subject of media balance are welcome, unless of course you haven’t read any Climate Change science and think it’s all a hoax, that the scientists are lying, and the Earth’s climate has always gone in similar cycles to the current warming, think that Global Warming is undergoing a “pause” etc etc – because you’re wrong. Plain and simple. If you don’t accept Climate Change science, if you haven’t read any of the relevant research papers, if you haven’t taken the trouble to understand what it’s all about, you are likely to be a clanging gong, a thorn in the side, and your views may well signify nothing, and certainly shouldn’t be aired in a public broadcast without challenge.

    It is time for the BBC to stop inviting Climate Change science “sceptics” – no, “deniers” onto their programmes. Once and for all. I mean, to go all Godwin on you, the BBC wouldn’t invite Adolf Hitler onto their shows to comment about the contribution that Judaism has brought to humanity, or to deny the Holocaust ? And they wouldn’t invite the CEO of a cigarette manufacture company on to insist that smoking doesn’t cause lung cancer, would they ? There is a bar, a standard, to which the BBC should aspire, on science reporting, and I feel that in this case they slid disgracefully under it and landed in a stinky puddle of failure on the studio floor. The programme editors should be ashamed, in my honest opinion.




    Open letter to Tony Hall, Lord Hall of Birkenhead and Director General of the BBC, on the platform given to Prof Bob Carter on the World at One programme (Fri 27th Sept 2013)

    Dear Lord Hall,

    We, the undersigned scientists and engineers, write to condemn the appearance of Prof Bob Carter on BBC Radio 4’s World at One programme, and to urge the BBC to seriously rethink the treatment given to climate change in its factual programming, and particularly its coverage of the Intergovernmental Panel on Climate Change’s Fifth Assessment Report.

    The BBC, uniquely amongst broadcasters, has a public duty to provide a balanced coverage of news across its media channels, yet when it comes to its coverage of climate change it has frequently failed to do so. Furthermore, the BBC’s status as a trusted source of news means that damage done by its biased reporting of the overwhelming evidence of the certainty and significance of man-made climate change is inexorably greater. Not only does this damage public trust in climate science, but it also damages public trust in scientific evidence in general. This assertion is even supported by the BBC’s own surveys on public attitudes to climate change.

    The IPPC’s Assessment Reports represent the consensus of evidence and opinion from thousands of scientists and engineers around the world, working in all of the many fields encompassed by climate change. That consensus is overwhelmingly of the view that the evidence that human activities are driving changes in our climate at an unprecedented rate and scale – there is no ‘climate debate’ in the scientific community.

    The appearance of Prof Carter on the World at One, and that of climate change deniers on other BBC programmes, is the equivalent of giving a stork the right to reply on every appearance by Prof Robert Winston. Prof Carter is a geologist who speaks for the “Nongovernmental International Panel on Climate Change”, or NIPCC, a name which non-experts could be forgiven for confusing with the IPCC, however Prof Carter is not a climate scientist and the NIPCC is not the IPCC.

    Indeed, had the editors of the World at One bothered to check the credentials of the NIPCC they would have realised that far from being an independent organisation, it is backed by the Heartland Institute, a US-based free-market thinktank that opposes urgent action on climate change, which is itself opaquely funded by ‘family foundations’ suspected of having significant vested interests in undermining climate science. To return to the analogy, that stork would be funded by the Discovery Institute.

    For climate scientists, and those of us working in related fields, it is hard enough to accept that the BBC is required to give a platform to politicians whose lack of knowledge of climate science is matched only by their unwillingness to ‘use sound science responsibly’. When the Environment Secretary Owen Paterson describes climate change as “not all bad” he may be committing an abuse of the evidence and his position, but he at least does so with the rights and responsibilities of a democratically elected Member of Parliament. However when deniers such as Prof Carter use the media to argue that the scientific consensus on climate change is anything but overwhelming, the evidence on which they claim to be basing their arguments, and their sources of funding, are frequently left unrevealed and unquestioned.

    It is therefore hardly surprising that the BBC and other media outlets sometimes struggle to find climate scientists willing to speak to them, and by providing a platform for Prof Cater and other deniers the BBC is also complicit in engendering the environment in which climate scientists are often reluctant to speak to the media.

    The BBC should now issue an explanation for the appearance of Prof Carter and the treatment given to his opinions on a flagship news programme. Furthermore, it should urgently review the treatment of climate change across all of its outputs, and require full disclosures of any and all vested interests held by commentators on the subject. Finally, it should also ensure that the editorial boards covering all its scientific outputs include members with appropriate scientific backgrounds who are able to give independent advice on the subject matter, and that their advice is recorded and adhered to.

    Yours sincerely,

    Dr Keith Baker, School of Engineering and the Built Environment, Glasgow Caledonian University

    Herbert Eppel CEng CEnv, HE Translations

    Ms J. Abbess MSc, Independent Energy Research

    Chris Jones CEnv IEng FEI MCIBSE MIET

    Mark Boulton OBE

    David Hirst, Hirst Solutions Ltd

    David Andrews, Chair, Claverton Energy Research Group

    Ruth Jarman MA (Oxon) Chemistry, Member of the Board of Christian Ecology Link

    Gordon Blair, Distinguished Professor, School of Computing and Communications, Lancaster University

    Susan Chapman

    David Weight, Associate Director, Aecom

    Sam Chapman, En-Count

    Camilla Thomson, PhD candidate, University of Edinburgh

    Dr Rachel Dunk

    Prof Susan Roaf, Heriot-Watt University

    Helen Woodall

    Ian Stannage

    Andy Chyba, BSc

    Isabel Carter, Chair, Operation Noah

    Ben Samuel, BSc

    Dr Marion Hersh, University of Glasgow, MIET

    Almuth Ernsting

    Simon O’Connor

    Martin Quick MA CEng MIMechE

    Hugh Walding, MA PhD

  • Wind Powers Electricity Security

    Posted on August 17th, 2013 Jo No comments




    Have the anti-wind power lobby struck again ? A seemingly turbulent researcher from Private Eye magazine rang me on Thursday evening to ask me to revise my interpretation of his “Keeping The Lights On” piece of a few weeks previously. His article seemed at first glance to be quite derogatory regarding the contribution of wind power to the UK’s electricity supply. If I were to look again, I would find out, he was sure, that I was wrong, and he was right.

    So I have been re-reviewing the annual 2013 “Electricity Capacity Assessment Report” prepared by Ofgem, the UK Government’s Office of Gas and Electricity Markets, an independent National Regulatory Authority. I have tried to be as fair-minded and generous as possible to “Old Sparky” at Private Eye magazine, but a close re-reading of the Ofgem report suggests he is apparently mistaken – wind power is a boon, not a burden (as he seems to claim).

    In the overview to the Ofgem report, they state, “our assessment suggests that the risks to electricity security of supply over the next six winters have increased since our last report in October 2012. This is due in particular to deterioration in the supply-side outlook. There is also uncertainty over projected reductions in demand.” Neither of these issues can be associated with wind power, which is being deployed at an accelerating rate and so is providing increasing amounts of electricity.

    The report considers risks to security of the electricity supply, not an evaluation of the actual amounts of power that will be supplied. How are these risks to the security of supply quantified ? There are several metrics provided from Ofgem’s modelling, including :-

    a. LOLE – Loss of Load Expectation – the average number of hours per year in which electricity supply does not meet electricity demand (if the grid System Operator does not take steps to balance it out).

    (Note that Ofgem’s definition of LOLE is difference from other people’s “LOLE is often interpreted in the academic literature as representing the probability of disconnections after all mitigation actions available to the System Operator have been exhausted. We consider that a well functioning market should avoid using mitigation actions in [sic] regular basis and as such we interpret LOLE as the probability of having to implement mitigation actions.”)

    b. EEU – Expected Energy Unserved (or “Un-served”) – the average amount of electricity demand that is not met in a year – a metric that combines both the likelihood and the size of any shortfall.

    c. Frequency and Duration of Expected Outages – a measure of the risk that an electricity consumer faces of controlled disconnection because supply does not meet demand.

    The first important thing to note is that the lights are very unlikely to go out. The highest value of LOLE, measured in hours per year is under 20. That’s 20 hours each year. Not 20 days. And this is not anticipated to be 20 days in a row, either. Section 1.11 says “LOLE, as interpreted in this report, is not a measure of the expected number of hours per year in which customers may be disconnected. For a given level of LOLE and EEU, results may come from a large number of small events where demand exceeds supply in principle but that can be managed by National Grid through a set of mitigation actions available to them as System Operator. [...] Given the characteristics of the GB system, any shortfall is more likely to take the form of a large number of small events that would not have a direct impact on customers.”

    Section 2.19 states, “The probabilistic measures of security of supply presented in this report are often misinterpreted. LOLE is the expected number of hours per year in which supply does not meet demand. This does not however mean that customers will be disconnected or that there will be blackouts for that number of hours a year. Most of the time, when available supply is not high enough to meet demand, National Grid may implement mitigation actions to solve the problem without disconnecting any customers. However, the system should be planned to avoid the use of mitigation actions and that is why we measure LOLE ahead of any mitigation actions being used”. And Section 2.20, “LOLE does not necessarily mean disconnections but they do remain a possibility. If the difference between available supply and demand is so large that the mitigation actions are not enough to meet demand then some customers have to be disconnected – this is the controlled disconnections step in Figure 14 above. In this case the [System Operator] SO will disconnect industrial demand before household demand.”

    And in Section 2.21. “The model output numbers presented here refer to a loss of load of any kind. This could be the sum of several small events (controlled through mitigation actions) or a single large event. As a consequence of the mitigation actions available, the total period of disconnections for a customer will be lower than the value of LOLE.”

    The report does anticipate that there are risks of large events where the lights could go out, even if only very briefly, for non-emergency customers : “The results may also come from a small number of large events (eg the supply deficit is more than 2 – 3 gigawatts (GW)) where controlled disconnections cannot be avoided.” But in this kind of scenario two very important things would happen. Those with electricity contracts with a clause permitting forced disconnection would lose power. And immediate backup power generation would be called upon to bridge the gap. There are many kinds of electricity generation that can be called on to start up in a supply crisis – some of them becoming operational in minutes, and others in hours.

    As the report says in Section 2.24 “Each [Distribution Network Operator] DNO ensures it can provide a 20% reduction of its total system demand in four incremental stages (between 4% and 6%), which can be achieved at all times, with or without prior warning, and within 5 minutes of receipt of an instruction from the System Operator. The reduction of a further 20% (40% in total) can be achieved following issue of the appropriate GB System Warning by National Grid within agreed timescales”.

    It’s all about the need for National Grid to balance the system. Section 2.9 says, “LOLE is not a measure of the expected number of hours per year in which customers may be disconnected. We define LOLE to indicate the number of hours in which the system may need to respond to tight conditions.”

    The report also rules some potential sources of disruption of supply outside the remit of this particular analysis – see Section 3.17 “There are other reasons why electricity consumers might experience disruptions to supply, which are out of the scope of this assessment and thus not captured by this model, such as: Flexibility : The ability of generators to ramp up in response to rapid increases in demand or decreases in the output of other generators; Insufficient reserve : Unexpected increases in demand or decreases in available capacity in real time which must be managed by the System Operator through procurement and use of reserve capacity; Network outages : Failures on the electricity transmission or distribution networks; Fuel availability : The availability of the fuel used by generators. In particular the security of supplies of natural gas at times of peak electricity demand.”

    Crucially, the report says there is much uncertainty in their modelling of LOLE and EEU. In Section 2.26, “The LOLE and EEU estimates are just an indication of risk. There is considerable uncertainty around the main variables in the calculation (eg demand, the behaviour of interconnectors etc.)”

    (Note : interconnectors are electricity supply cables that join the UK to other countries such as Ireland and Holland).

    Part of the reason for Ofgem’s caveat of uncertainty is the lack of appropriate data. Although they believe they have better modelling of wind power since their 2012 report (see Sections 3.39 to 3.50), there are data sets they believe should be improved. For example, data on Demand Side Response (DSR) – the ability of the National Grid and its larger or aggregated consumers to alter levels of demand on cue (see Sections 4.7 to 4.10 of the document detailing decisions about the methodology). A lack of data has led to certain assumptions being retained, for example, the assumption that there is no relationship between available wind power and periods of high demand – in the winter season (see Section 2.5 and Sections 4.11 to 4.17 of the methodology decisions document).

    In addition to these uncertainties, the sensitivity cases used in the modelling are known to not accurately reflect the capability of management of the power grid. In the Executive Summary on page 4, the report says, “These sensitivities only illustrate changes in one variable at a time and so do not capture potential mitigating effects, for example of the supply side reacting to higher demand projections.” And in Section 2.16 it says, “Each sensitivity assumes a change in one variable from the Reference Scenario, with all other assumptions being held constant. The purpose of this is to assess the impact of the uncertainty related to each variable in isolation, on the risk measures. Our report is not using scenarios (ie a combination of changes in several variables to reflect alternative worlds or different futures), as this would not allow us to isolate the impact of each variable on the risk measures.”

    Thus, the numbers that are output by the modelling are perforce illustrative, not definitive.

    What “Old Sparky” at Private Eye was rattled by in his recent piece was the calculation of Equivalent Firm Capacity (EFC) in the Ofgem report.

    On page 87, Section 3.55, the Ofgem report defines the “standard measure” EFC as “the amount of capacity that is required to replace the wind capacity to achieve the same level of LOLE”, meaning the amount of always-on generation capacity required to replace the wind capacity to achieve the same level of LOLE. Putting it another way on page 33, in the footnotes for Section 3.29, the report states, “The EFC is the quantity of firm capacity (ie always available) that can be replaced by a certain volume of wind generation to give the same level of security of supply, as measured by LOLE.”

    Wind power is different from fossil fuel-powered generation as there is a lot of variability in output. Section 1.48 of the report says, “Wind generation capacity is analysed separately given that its outcome in terms of generation availability is much more variable and difficult to predict.” Several of the indicators calculated for the report are connected with the impact of wind on security of the power supply. However, variation in wind power is not the underlying reason for the necessity of this report. Other electricity generation plant has variation in output leading to questions of security of supply. In addition, besides planned plant closures and openings, there are as-yet-unknown factors that could impact overall generation capacity. Section 2.2 reads, “We use a probabilistic approach to assess the uncertainty related to short-term variations in demand and available conventional generation due to outages and wind generation. This is combined with sensitivity analysis to assess the uncertainty related to the evolution of electricity demand and supply due to investment and retirement decisions (ie mothballing, closures) and interconnector flows, among others.”

    The report examines the possibility that wind power availability could be correlated to winter season peak demand, based on limited available data, and models a “Wind Generation Availability” sensitivity (see Section 3.94 to Section 3.98, especially Figure 64). In Section 3.42 the report says, “For the wind generation availability sensitivity we assume that wind availability decreases at time of high demand. In particular this sensitivity assumes a reduction in the available wind resource for demand levels higher than 92% of the ACS peak demand. The maximum reduction is assumed to be 50% for demand levels higher than 102% of ACS peak demand.” Bear in mind that this is only an assumption.

    In Appendix 5 “Detailed results tables”, Table 34, Table 35 and Table 37 show how this modelling impacts the calculation of the indicative Equivalent Firm Capacity (EFC) of wind power.

    In the 2018/2019 timeframe, when there is expected to be a combined wind power capacity of 8405 megawatts (MW) onshore plus 11705 MW offshore = 20110 MW, the EFC for wind power is calculated to be 2546 MW in the “Wind Generation Availability” sensitivity line, which works out at 12.66% of the nameplate capacity of the wind power. Note : 100 divided by 12.66 is 7.88, or a factor of roughly 8.

    At the earlier 2013/2014 timeframe, when combined wind power capacity is expected to be 3970 + 6235 MW = 10205 MW, and the EFC is at 1624 MW or 15.91% for the “Wind Generation Sensitivity” line. Note : 100 divided by 15.91 = 6.285, or a factor of roughly 6.

    “Old Sparky” is referring to these factor figures when he says in his piece (see below) :-

    “[...] For every one megawatt of reliable capacity (eg a coal-fired power
    station) that gets closed, Ofgem calculates Britain would need six to
    eight
    megawatts of windfarm capacity to achieve the original level of
    reliability – and the multiple is rising all the time. Windfarms are
    not of course being built at eight times the rate coal plants are
    closing – hence the ever-increasing likelihood of blackouts. [...]”

    Yet he has ignored several caveats given in the report that place these factors in doubt. For example, the sensitivity analysis only varies one factor at a time and does not attempt to model correlated changes in other variables. He has also omitted to consider the relative impacts of change.

    If he were to contrast his statement with the “Conventional Low Generation Availability” sensitivity line, where wind power EFC in the 2013/2014 timeframe is calculated as a healthy 26.59% or a factor of roughly 4; or 2018/2019 when wind EFC is 19.80% or a factor of roughly 5.

    Note : The “Conventional Low Generation Availability” sensitivity is drawn from historical conventional generation operating data, as outlined in Sections 3.31 to 3.38. Section 3.36 states, “The Reference Scenario availability is defined as the mean availability of the seven winter estimates. The availability values used for the low (high) availability sensitivities are defined as the mean minus (plus) one standard deviation of the seven winter estimates.”

    Table 30 and Table 31 show that low conventional generation availability will probably be the largest contribution to energy security uncertainty in the critical 2015/2016 timeframe.

    The upshot of all of this modelling is that wind power is actually off the hook. Unforeseen alterations in conventional generation capacity are likely to have the largest impact. As the report says in Section 4.21 “The figures indicate that reasonably small changes in conventional generation availability have a material impact on the risk of supply shortfalls. This is most notable in 2015/16, where the estimated LOLE ranges from 0.2 hours per year in the high availability sensitivity to 16 hours per year in the low availability sensitivity, for the Reference Scenario is 2.9 hours per year.”

    However, Section 1.19 is careful to remind us, “Wind generation, onshore and offshore, is expected to grow rapidly in the period of analysis and especially after 2015/16, rising from around 9GW of installed capacity now to more than 20GW by 2018/19. Given the variability of wind speeds, we estimate that only 17% of this capacity can be counted as firm (ie always available) for security of supply purposes by 2018/19.” This is in the Reference Scenario.

    The sensitivities modelled in the report are a measure of risk, and do not provide absolute values for any of the output metrics, especially since the calculations are dependent on so many factors, including economic stimulus for the building of new generation plant.

    Importantly, recent decisions by gas-fired power plant operators to “mothball”, or close down their generation capacity, are inevitably going to matter more than how much exactly we can rely on wind power.

    Many commentators neglect to make the obvious point that wind power is not being used to replace conventional generation entirely, but to save fossil fuel by reducing the number of hours conventional generators have to run. This is contributing to energy security, by reducing the cost of fossil fuel that needs to be imported. However, the knock-on effect is this is having an impact on the economic viability of these plant because they are not always in use, and so the UK Government is putting in place the “Capacity Mechanism” to make sure that mothballed plant can be put back into use when required, during those becalmed, winter afternoons when power demand is at its peak.




    Private Eye
    Issue Number 1345
    26th July 2013 – 8th August 2013

    “Keeping the Lights On”
    page 14
    by “Old Sparky”

    The report from energy regulator Ofgem that sparked headlines on
    potential power cuts contains much new analysis highlighting the
    uselessness of wind generation in contributing to security of
    electricity supply, aka the problem of windfarm “intermittency”. But
    the problem is being studiously ignored by the Department of Energy
    and Climate Change (DECC).

    As coal power stations shut down, windfarms are notionally replacing
    them. If, say, only one windfarm were serving the grid, its inherent
    unreliability could easily be compensated for. But if there were
    [italics] only windfarms, and no reliable sources of electricity
    available at all, security of supply would be hugely at risk. Thus the
    more windfarms there are, the less they contribute to security.

    For every one megawatt of reliable capacity (eg a coal-fired power
    station) that gets closed, Ofgem calculates Britain would need six to
    eight megawatts of windfarm capacity to achieve the original level of
    reliability – and the multiple is rising all the time. Windfarms are
    not of course being built at eight times the rate coal plants are
    closing – hence the ever-increasing likelihood of blackouts.

    [...]

    In consequence windfarms are being featherbedded – not only with
    lavish subsidies, but also by not being billed for the ever-increasing
    trouble they cause. When the DECC was still operating Plan B, aka the
    dash for gas ([Private] Eye [Issue] 1266), the cost of intermittency
    was defined in terms of balancing the grid by using relatively clean
    and cheap natural gas. Now that the department has been forced to
    adopt emergency Plan C ([Private] Eye [Issue] 1344), backup for
    intermittent windfarm output will increasingly be provided by dirty,
    expensive diesel generators.




    Private Eye
    Issue 1344
    12 – 25 July 2013

    page 15
    “Keeping the Lights On”

    As pandemonium breaks out in newspapers at the prospect of electricity
    blackouts, emergency measures are being cobbled together to ensure the
    lights stay on. They will probably succeed – but at a cost.

    Three years ago incoming coalition ministers were briefed that when
    energy policy Plan A (windfarms, new nukes and pixie-dust) failed, Plan B
    would be in place – a new dash for gas ([Private] Eye [Issue] 1266).

    Civil servants then devised complex “energy market reforms” (EMR) to make
    this happen. It is now clear that these, too, have failed. Coal-fired power
    stations are closing quicker than new gas plants are being built. As energy
    regulator Ofgem put it bluntly last week: “The EMR aims to incentivise
    industry to address security of supply in the medium term, but is not able
    to bring forward investment in new capacity in time.”

    Practical people in the National Grid are now hatching emergency Plan C.
    They will pay large electricity users to switch off when requested;
    encourage industrial companies and even hospitals to generate their own
    diesel-fired electricity (not a hard sell when the grid can’t be relied
    on); hire diesel generators to make up for the intermittency of windfarms
    ([Private] Eye [Issue] 1322); and bribe electricity companies to bring
    mothballed gas-fired plants back into service.

    Some of these steps are based on techniques previously used in extreme
    circumstances, and will probably keep most of the lights on. But this
    should not obscure the fact that planning routine use of emergency
    measures is an indictment of energy policy. And since diesel is much
    more expensive and polluting than gas, electricity prices and CO2
    emissions will be higher than if Plan B had worked.

    [...]

    ‘Old Sparky’