The Economics of Renewable Energy - Economic Affairs Committee Contents


Memorandum by W J Hyde

SUMMARY

  Infinite renewable Energy is available if cost is not a consideration. But renewables are guaranteed to fail to meet our need for Power, however much is spent.

  Thus, regardless of renewable build, we must have enough traditional power to supply our peak load on a winter's evening in the dark. Solar power is then zero, and, when the UK is enveloped by an anticyclone, wind and wave power will deliver only a tiny fraction of what it says on the label, maybe zero. At some states of tide, tidal power too, can be zero, or near.

  The problems of renewable generation technologies lie in the basic immutable scientific principles on which they are based. Nobody will build renewables without subsidies, which demonstrates their economic weakness.

  Fossil fuel prices will undoubtedly escalate, and nuclear is already economically viable, with offers from the private sector to build without subsidy. That technology has every prospect of very considerable development. The attractions are indicated by the number of nations who are going down that route, including our competitors in the world's market places.

  The anti-nuclear lobby is led by many who believe they are on a crusade, and are not open to reason. They seem ignorant of the basics of the technologies they argue about, and carry no responsibility for supplies of energy to UK homes, businesses and essential public services.

  When shortages are artificially created to put the prices up it is usually frowned upon. In the case of electricity, the UK government is putting up the prices to subsidise technologies that will create shortages, and are ultimately economically unsustainable.

  Reducing fossil bum and emissions of CO2 is the real target. Sub-optimising to a target of maximising renewable generation is a serious mistake. It has been likened to pursuing motoring economy by sub-optimising to an mpg target. That can lead to a 60 mile journey via motorways where high mpg can be achieved, to avoid a 10 mile route to the same destination, using unclassified roads, where mpg will be less.

  We should reduce fossil bum, for several reasons. Sub-optimisation of that to a target of "renewables" is ludicrous, as Germany shows. Seeking to boost nuclear to cut CO2 emissions is the only sensible way, as the French experience shows.

  Renewables cannot give us the supply reliability we need without traditional backup. If that is nuclear, which needs no subsidies, we don't need subsidised renewables.

  The enclosed presents the detailed arguments, together with three wind power charts I have prepared from Met Office data during the 07-08 winter.

REALITIES OF RENEWABLE ELECTRICITY GENERATION

  1.1  WEATHER SYSTEMS and the WIND RESOURCE: Anticyclones affect the UK in whole or part several times each year, winter and summer, and give rise to light winds. They are large and slow moving, and often affect us for some weeks, in part or whole. On occasions one will cover an area from the Azores to the north Baltic, to the White Sea, to Turkey, covering all Europe and the Mediterranean. Look at your newspaper's daily weather map for widely spaced isobars.

  1.2  Depressions are smaller and move faster, mostly coming across the Atlantic. While they are usually gone in three or four days, another often follows close behind, with short periods of light winds between successive systems. They also have light winds in their centres, "the eye of the storm". No weather system gives us consistent wind speeds in the full power range.

  1.3  The potential UK wind power can be calculated from the hourly Met Office wind speeds published on Ceefax 404. I have noted figures at 8 am, 1pm, and 7pm, added 20% for tall windmills and short anemometers, and then applied the cube law, (bwea.com), to get Kilowatts. The results for Oct 07, Dec 07 and Feb 08, typical of recent winters, are shown on the attached charts. For periods of about a fortnight, aggregate UK power was about 5% of that installed, with dips below 1% on some days.

  1.5  The total energy output of a UK-wide wind installation is about one quarter of what would produced by conventional generation of the same capacity running at continuous full load.

  2.1  I would recommend careful attention to the precise meanings of words in the report on "Wind Power and The UK Wind Resource", published by the Environmental Change Institution, (copy from 01865 275 848). It includes the following statement, with my emphases:

    "Large wind turbines do not generate at speeds below 4m/sec, and so all winds below this speed are included in the definition of `low wind speed conditions'"

  And,

    "There was not a single hour during the study period where wind speeds at every location across the UK were below 4m/sec"

  2.2  The ECI table for the Nordex80 2,500 KW machine shows it delivering 15 KW at 4m/sec. So if just one in the UK armoury was doing that, then all is well? And is 4m/sec regarded as a low wind speed? It seems not.

  3.1  The British Wind Energy Association web site, bwe.com/ref/stop/html contains the following item, which I would also recommend reading with close attention to exact meanings.

    "Winter anticyclones

    These it is alleged, frequently becalm the whole country, and will cause problems for the system operator, due to the absence of any wind power, especially at periods of peak demand Two points need to be made:

    Neither the Renewable Energy Foundation, nor any reference cited by them, have ever produced evidence that this occurs regularly.

    The Environmental Change Institute at the University of Oxford, was quite clear in appearing before a House of Lords Select Committee that "we have looked at this [stationary anticyclones in the middle of winter over the British Isles] occurring in the wind data, and the wind data does not show it."

  4.1  SOLAR: The tilt of the Earth's axis reduces winter solar energy reaching UK latitudes to about one sixth of summer level. The 24 hour rotation reduces it to zero, sunset to sunrise. Crucially, it is always zero at the time of annual maximum demand, winter, around 6pm-7pm.

  5.1  WAVES: Wind is an important contributor to wave height: big waves and light winds seldom come together. The Pelamis "sea-snake" is being trialled off the Orkneys. The maker's figures say that 100% full power needs a wave height of 5.5 metres and a wave period of 6.5-8.5 seconds. If the wave height is 1.0 metre and the wave period is 5.5 seconds, the output is under 3%. The emphasis on wave period suggests that wave periods outside the specified range will give reduced output. See Review, Institution of Electrical Engineers, September 2002.

  6.1  HYDRO-POWER: The most useful UK sites have been developed. Although more may become economically feasible as fossil fuel prices escalate, there are few. France, with much more mountainous terrain, can only manage about 10% of electrical energy from hydro.

  7.1  SEVERN BARRAGE: This has been predicted to achieve a load factor of 22%. That implies long periods of zero or little output, determined by the moon, not our needs. The River Rance barrier, built by the French about 40 years ago, has never been copied.

  8.1  GAS FUELLED GENERATION: About 30% of the cost of gas-fired electricity can be attributed to the power station itself. The other 70% is the cost of the gas, government figures, 2006. Fossil fuel costs are expected to rise as world demand increases.

  8.2  Thor Otto Lohne, executive Vice-President of Norwegian pipeline co, Gasco, said that long-term contracts to supply mainland Europe meant the UK could not always rely on Norwegian gas exports, regardless of the price we were prepared to pay, Observer Business, 20 April 08.

  8.3  CARBON CAPTURE and STORAGE: CO2 never decays, ever, and will be a threat for all eternity, should it escape. It has been used to flush out oil wells. Does it leak? Has anyone checked? Has the world enough storage space for the decades to come? I am highly sceptical.

  8.4  SECURITY of SUPPLY: Renewables will always fail to deliver more than a fraction of their power rating at peak load times, and will give significant periods of low or zero output. That is why wind-power champion BWEA, says we need gas or nuclear "when the wind stops blowing", bwea.com. We can store gas to last several days, nuclear fuel to last us for years.

  9.1  NUCLEAR GENERATION: Nuclear power stations are expensive to build, their fixed charges constituting 90% of the price of the electricity produced. The uranium costs about 1.5%, while processing and final dismantling and disposal make up the remaining 8.5%. Thus nuclear electricity is not sensitive to the price of uranium, which comes from stable parts of the world, Canada and Australia.

  9.2  Sir David King, previously Government Chief Scientist, said, "We can bury nuclear waste or use it as free fuel for life. We have 6 tonnes of plutonium and 60 tonnes of uranium "waste" left over from the 50s and 60s which could provide 60% of our electricity needs until 2060. Burnt in modern reactors, it will last to 2100", Observer, 23 December 2007.

  9.3  The Scientific American, December 2005, published an article by Hannum, Marsh and Stanford, describing fast reactors, which, combined with electrolytic high temperature processing, would enable over 95% of uranium's energy to be utilised, compared with the 5% of existing thermal reactors. They say that means we would "not need to mine any more uranium for hundreds of years". On-site re-processing avoids the enrichment stage, the first step towards nuclear weapons. Among other advantages is the reduction of the waste problem.

  9.4  NUCLEAR DELAYS: The Greens dragged out the Sizewell B inquiry far beyond the two years it should have taken. When it was finally approved, it was built "in the public sector within budget to program", using direct placement of contracts. No third party had overall project management, against the government policy laid down in December 1979. The contract and industrial relations strategies used had been developed at Drax and Heysham II, per Dr Lomer, CBE, formerly board member and director, CEGB. Thirty years later, with EDF experience, the build time, under eight years, should be easy to beat.

  9.5  NUCLEAR GENERATION POTENTIAL: The UK winter maximum demand is around 63,000 MW, including about 12,000 is nuclear. I pay EDF 12.64p/KWh, for daytime electricity. As demand diminishes after evening peak, the most expensive generators are shut down successively, until only the cheapest are running, to supply a night-time 30,000 MW.

  9.6  That includes all UK carbon-free nuclear stations, supplying nearly half the night-time demand, with the best fossil stations supplying the rest. EDF supplies this electricity for my storage radiators and hot water. It costs me 4.1p/KWh.

  9.7  Retro-fitting a storage radiator system costs little more than a replacement gas boiler. Premises far from gas mains, currently burning fossil oil or coal, could do it now. In new houses the concrete floor slab can be used for heat storage, freeing up living space, wall space.

  9.8  Thus a substantial part of our gas demand for heating can also be eliminated, transferred to nuclear power. There are no additional costs of transmission or distribution, as the system is being under-used at off-peak times, by definition. Indeed, switching blocks on and off by radio enhances the Control Engineer's opportunities to optimise system loadings.

  9.9  If fuel cell powered transport can be successfully developed, nuclear powered electrolysis could produce the hydrogen. It is probably wishful thinking to imagine a domestic hydrogen generator to fill up your car. Probably.

  10.1  OTHER NATIONS: Nuclear stations are being planned or built in Algeria, America, Brazil, Bulgaria, China, Egypt, Finland, France, India, Iran, Japan, Malaysia, Morocco, Myanmar, Namibia, Pakistan, Qatar, Russia, Thailand, United Arab Emirates and Yemen, according to press reports. All are potential competitors for inward investment and trade.

  10.2  ADVERTISING THAT MIGHT MISLEAD: The statement that a wind-farm will supply enough "to power some thousands of homes" is an extremely common example of ignorance. Clearly, renewables can produce any amount of electrical energy you want, just keep building until you get there. But no amount will ensure that the power is there—when you want it. If it isn't the lights go out.

  10.3  EUROPE: Germany has 50% bigger population than France, and burns more than three times the gas. Germany has the most generous renewable subsidies in the developed world, and thus more renewable generation installations, although a poorer wind regime, and hence a worse capacity factor, under 20%.

  10.4  France has over 85% nuclear generation, and emits 6 tonnes of CO2 per citizen, although exporting 2,000 MW to the UK most days. The UK has under 20% nuclear and emits 11 tonnes of carbon per citizen, in spite of French nuclear imports, 2,000 MW most days.

  11.1  AMENITY: Which would you prefer in your county, a nuclear power station on or beside the old one being dismantled; or a fossil station plus some hundreds of wind turbines on 300 ft towers, with a rotor diameter of 250 ft, with tip speeds up to 160 mph. If turning.

  11.2  RESPONSIBILITY: Who will you hold responsible if we find ourselves in South Africa's position, expecting regular power cuts for the next five years? A: the Government, B: the Greens, C: the private companies for not risking their shareholders money?

  12.1  ECONOMICS: The low outputs from wind and waves are a consequence of the fundamental physics of hydrodynamics, not amenable to development. Solar and tidal generation is limited by the structure of our Solar system, equally immutable. ROCs constitute a tax which increases fuel poverty, to subsidise renewables which will never be able to stand on their own financial feet. Feed in tariffs will force suppliers to buy uncertain supplies at retail prices, increasing fuel poverty. Is there a strategy for the day when reality arrives, and subsidies have to be withdrawn?

  12.2  All renewables suffer from the economies of scale. A 600 MW generator will deliver more energy per tonne of copper than 200 generators of 3MW, even if they could run 2417 at full power. Actually, the typical wind power capacity factor is 25%, requiring 2,400 MW of those small generators to match the energy output of one 600 MW machine. Even then, power cannot be guaranteed—wind might be light, or below cut-in speed.

  12.3  The private sector will build Nuclear to produce C02-free electricity, with no subsidy. It competes with renewables, which the private sector will NOT build without subsidies. Indeed, they want bigger ones.

  13.1  However much we spend on renewables, we still must have conventional generation to avoid blackouts. If that generation is nuclear, we do not need renewables. They will never be financially competitive, and there will be ructions when the subsidies are withdrawn.

  13.2  Some strident supporters of renewables have a near-religious objection to nuclear power. It reminds me of their campaign against Shell's proposal to dispose of the elderly Brent Spar oil rig in the deep ocean. Shell had listed the unpleasant substances contained in the rig, and said their studies showed that dismantlement on land was environmentally worse than their proposal. Greenpeace refused to accept Shell's statements, and threatened action. Shell conceded in the face of the threat, and it was dismantled on land. That enabled accurate measurement—Shell was right, and Greenpeace admitted they were wrong.

  13.3  The nuclear v renewables argument is more serious, as people will realise, perhaps when darkness descends on houses, hospitals, City screens, supermarkets, bakeries, dairies, and those establishments that make chemicals for water purification.

  13.4  James Lovelock has wondered who will pay for removing windmills' 1,000 tonne concrete foundation blocks. Me too.






6 May 2008



 
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