The Economics of Renewable Energy - Economic Affairs Committee Contents


Memorandum by Mr Richard Phillips

  I write the following comments as a retired professional research scientist, having spent the last 35 years of my professional life with the UK Atomic Energy Authority at the AERE Harwell. In retirement I have continued to have an active interest in all matters concerned with energy generation.

QUESTION 1

  The enquiry relates in its terms of reference to "Energy". I will assume that this energy, in all but a miniscule degree, will refer to electrical energy as the final product. Bio-mass and bio-fuels are addressed later.

  At the heart of this whole enquiry is the fundamental nature of the various forms of energy which it is proposed to harvest.

  All the sources of "renewable" energy, wind, solar, tidal (wave, tidal stream or tidal barrage), are all, on the industrial scale, very dilute forms of energy. This is in spite of their apparent power, indeed ferocity when encountered by individual human beings. Humans, on the energy scale are extremely feeble, our own rate of working, in a mechanical fashion, is unbelievably low. It is very hard work indeed for one person to keep a 100 watt light bulb illuminated for any length of time. Thus the emotional reaction to the possibility of deriving energy from a source which seems so much more potent than ourselves, is very tempting.

  These facts also account for the immense amount of space or area needed to provide the energy.

  By their very nature, "renewable" sources are either chaotic in nature, or extremely variable with time. The wind is not predictable on any long time scale and variable in strength. Tidally associated energy is predictable, but continuously variable. Solar energy is similar in character.

  The scale of these vagaries makes it a necessary demand that "renewable" generation is backed, to the extent of 80%, by "spinning reserve", older, less economic power stations idling until they are needed to make up the deficit of renewable sources, in the main, when the wind drops or is too strong.

  Denmark has been in the position of importing electricity in times of dearth, and paying to export it in times of glut. They build no new turbines. And the Danes have closed no fossil fuel power stations. Germany has a huge wind investment. It is building, in spite of this three new spinning reserve stations on the Baltic, and twenty six new coal fired stations else where.

  This is to be compared with France which now has miniscule "renewable" generation, but 83% nuclear generation, and the smallest carbon footprint in Europe.

  In my view there is very little place for "renewables" in our energy policy. The exceptions are to the be found in those remote places where it is very uneconomic to provide connection to the National Grid. The huge expenditure on subsidies for "renewable" energy would have to be boosted still further even to have some nominal effect on our provision of energy. It is, in my opinion, a poor investment, but a considerable business opportunity for a copper-bottomed profit for certain sectors of the business world who have little real interest in our energy provision.

QUESTION 2

  The barriers to the development of "renewable" energy lie in the nature of the energy. The harvesting of dilute energy is an undertaking subject to the law of diminishing returns. I do not believe that any but marginal improvements of the existing technologies are possible. This, essentially, is due to the simple methods employed. No alternative methods exist, neither do alternative sources.

  In my opinion, too much attention has already been paid to these sources.

QUESTION 3

  In my opinion, the likelihood of any significant advance in "renewable" technology is not possible. This a matter not affected by investment, from either the public or private purse.

QUESTION 4

  In my opinion, the already considerable investment of Government funds has been made under a misapprehension that the technology is viable on a very large scale. It is not. The application of an administrative structure such as the ROCs and associated measures are an overburden to a system which will be costly and achieve very, very little in reducing our carbon footprint.

QUESTION 5

  I am not in a position to comment quantitatively to this question but without any doubt, the investment in connection of a multiplicity of producers, including a large number at sea, under very hostile conditions, and their maintenance, must be much greater that connection to a large central producer In addition there is the problem of unifying the output of a large number of small producers (ie each wind turbine being a producer). This is well illustrated by the Fair Isle experience. When asked if they wanted a connection to Orkney, the Islanders politely declined, it was simply too expensive for their small community. They opted for wind power instead. Now that they have this facility, the control of frequency has been found to be difficult, household goods such as washing machines do not take kindly wandering frequency, they like a stable 50 Hz. Many other appliances will behave in exactly the same way. Now imagine connecting up twenty of thirty times as much capacity as we have at the moment. Strong winds in Germany have caused the grid to crash, blacking out some two million consumers. Interconnection is expensive and difficult. Central large generation is not.

QUESTION 6

  I do know how the despoilage of the countryside can be measured as a cost in any financial terms. It may be pointed out, however, that one 1000 Mw nuclear or fossil fuelled station would have to be replaced by rather more than 1200 3Mw turbines (efficiency 27.5% of nameplate), The visual impact is difficult to imagine. I have printed out 1200 turbine pictures, it is exceedingly sobering, I recommend that the Committee do the same. At the same time, these turbines have to have a power station in spinning reserve, a structure which the turbines were supposedly replacing!

QUESTION 7

  I would refer the committee to a letter which I wrote separately to Lord Vallance and which is reproduced below. I have attempted to obtain more up to date costs from BERR, but find myself on an administrative merry-go-round. Each section or person passes me to another until I arrive back to my original advisor. I can only hope that your Lordships' enquiries carry greater weight, I found merely confusion, perhaps it is all rather new in BERR and needs time to settle down. But a pity.

  In my opinion the only energy source which may prove viable, and this depends much upon microclimate, is the use of solar energy for heating. My own analysis of solar energy shows that again it is a weak energy source, producing at best, some 200w/m2 over a 24-hour period. If the situation of the collector is favourable, and installation costs do not prohibit it, this may be useful for domestic space heating. I see no real prospect for photovoltaic production except, like wind, for small demands in remote situations.

  In my opinion the difficulties of CCS, carbon capture and sequestration, mitigate very strongly against any real possibility of its use. The CO2 separated from the flue gases will have to compressed to some 850 pounds per square inch, pumped over very considerable distances from its source to the point of interment, and the pumped underground. As a rough guide, the liquid will occupy over three times the volume of the fossil fuel which produced it. It does not decay, as does radioactivity. Several companies have already backed away from this technology which has yet to be demonstrated in commercial situation. The new station in Kent, supposedly having this addendum, will be built without it. It has been deferred indefinitely. I consider this technology to be quite uneconomic.

QUESTION 8

  I find this question particularly difficult, since the fashion in which it is asked seems to be muddled, in as much as it appears to ask for a comparison between apples and loaves of bread, it is not comparing like with like. I understand that the real costs of "renewables" compare very unfavourably with either fossil or nuclear generation of electricity.

  Transport, however is in a different category, if hydrogen is discounted for the moment, the only "renewable" is bio-fuel. The more this is investigated, the worse bio-fuel appears. The net energy gain appears to be much more marginal than was at first mooted, since so much energy is expended in its' manufacture. Secondly there has been a major impact in certain geographical areas, on the price and availability of staple foods, which have been diverted into fuel manufacture. My own opinion is that the sooner bio-fuel is consigned to all but a tiny market, the better. The use of vegetable matter as fuel for furnaces has been shown to uneconomic if it is grown for this purpose. It should be borne in mind that even in dry cellulose, more than half the weight is in the form of combined water, and contributes no heat when combustion takes place. It is chemically a carbohydrate, a carbon/water compound. The combustion of waste has different objectives, and deserves a much larger place in our economy. But it has to be carried out to the highest technical standards.

QUESTION 9

  As I believe is clear, in my opinion, "renewables" should have little place in our, or the European economy. There is no doubt whatsoever that a cardinal error was made by the EU in separating nuclear and "renewable" sources. The objective was, and if not should have been, the production of electricity using processes minimally productive of CO2. I therefore maintain the UK should follow the French example and maximise its expansion of nuclear generation, and suspend further economically expensive and ultimately unsuccessful investment in "renewable" energy, whether in the UK or other EU countries.

QUESTION 10

  I have little faith that a Carbon Market will achieve any real change in the use of fossil fuels. I certainly recognise that it opens business opportunities for carbon trading, but the only way to reduce CO2 emissions is to burn less fuel. This may sound only too blindingly obvious, but it seem to escape recognition in so many quarters.

QUESTION 11

  Bio fuels are derived in the first instance from solar energy. A small proportion of the sunlight falling on any crop is converted into plant material. Of the plant, the seed element used for bio-fuel production, is a small proportion again. Of the seed, a small portion is converted into bio-fuel. Thus only a minute portion of the incident sunlight results in the end product. There is great deal of processing which is energy adsorbing, and in many cases, there is doubt that there is a net gain in the whole scheme. This is to disregard the imbalance being introduced into the global supply of food. We have limited arable areas, should we be using them for such purposes. In the case of the alcohol being put into our petrol, it has only about half of the calorific value of the petrol it replaces, thus producing a fuel with less energy and thus poorer mpg.

  I must confess to being confused by the reference to first and second generation bio-fuels, but as a chemist I would see no great fundamental differences occurring. Perhaps I am mistaken.

  As the story of bio-fuels unfolds, it would certainly be showing all the signs of an impending environmental tragedy. The sooner we start to move onto the real environmentally friendly fuel, hydrogen, in my opinion, the better. But it must be produced from nuclear energy, either by electrolysis, of directly by the use of heat, through the Bunsen reaction, this shows great promise.

  The letter to which I refer in Question 7:

  Dear Lord Vallance of Tummel,

  May I introduce myself in a few words. I am a retired research scientist, having spent the last 35 years of my professional life with the United Kingdom Atomic Energy Authority at Harwell.

  I have seen the invitation to submit comments to your HoL Committee on the Economics of Renewable Energy. The following paper is allied, although not quite directly, to this specific subject. I sincerely hope that you will be able to give it your earnest consideration, I believe that there is no more important a matter than our electricity supply, not even our national economic policies, for without absolutely rock firm power supply, we have no economy worthy of the name.

  You will see that I am also greatly concerned that the electrical generation industry is a predominantly technical one, an aspect poorly understood by Administrations of all colours. Indeed this situation is of absolutely no surprise; the careers of senior administrators and business men has left no time for the acquisition of the knowledge which it has taken a lifetime for me to accumulate. Yet, paradoxically, it is this knowledge which is so vital before objective judgments can be made.

  I sincerely hope that my short paper will be of interest, and please feel completely free to contact me at any time, should you feel that I may be of any assistance, in any way.

"A SUGGESTED RE-TITLING OF ENERGY SOURCES WITH REFERENCE TO CARBON EMISSIONS

  The Climate Change Programme, as it has emerged into public perception, has at its core the role played by carbon dioxide in the atmosphere. It has become overwhelmingly accepted by both the scientific and lay communities that it is the steadily increasing concentration of this gas in the atmosphere that is in the process of bringing about seriously large terrestrial heating effects, and thus radical changes in the climate in all areas of the Earth.

  In order to minimise, and eventually halt, this effect, much attention has been focussed on alternative forms of energy production; those whose reliance upon carbon based fuels is minimised.

  It has become common usage to refer to these new methods of energy production as "Renewables", as to a large extent they utilise energy sources such as wind, solar, and oceanic flows as the energy sources; and these are not noticeably affected by this energy abstraction, and thus seem to be self renewing.

  The use of this title,, "RENEWABLES", was further emphasised by the EC when the central administration adopted it in the pursuit of minimal carbon technology. At an early stage in their deliberations, the EU Committee responsible for these matters, made clear distinction between nuclear energy and "renewables", instead of regarding both as low carbon means of electrical generation, and then accepted it as official nomenclature of the technology to be pursued. This literal adoption thus prohibited the inclusion of the lowest of the carbon technologies, namely nuclear power, amongst the technologies which the EC required. The origin of this problem of separation, which, like Topsy "just growed", would appear to be the lack of a scientific and technical background by those drafting the European-wide Renewables Obligation, and the emotional attraction of "something for nothing", the wind is free. In the UK this was compounded by a similar non comprehension of the consequences of the lack of such technical knowledge.

  This accentuation on these technologies has detracted in very great measure from the primary objective of aiming to produce energy from a source as low as possible in the production of carbon dioxide. It is thus much more objectively sound to refer to the new technologies as "minimised carbon" technologies, since this is the their primary purpose.

  Such a move allows a quantitative scale to be introduced which would reflect the amount of carbon dioxide with which each system was associated, when generating a specific amount of energy. A relevant measure could be the amount of incidental carbon dioxide, in grams, (or the weight of the carbon in the carbon dioxide), generated for each kilowatt hour of energy produced. Such a change in nomenclature would refocus the process on the real objective of the exercise; to enhance the reduction in carbon emission during energy production processes.

  A suggested overall new title for such technologies, truly reflecting the real objective, could be:

MINIMISED CARBON ENERGY

  The following table has been drawn up by the British Nuclear Energy Society using data from the Government's Energy Technology Support Unit, and confirmed by the OECD. The figures are taken over a complete life cycle of the relevant technology.


Energy Source
Grammes of Carbon per KWh of electricity

Nuclear
4 (14.7g of CO2)
Wind
8 (29.4g of CO2)
Hydro Electricity
8/9 (29.4-33.0g of CO2)
Energy Crops
17 (62.4g of CO2)
Geothermal
70 (256.9g of CO2)
Solar
133 (488.1g of CO2)
Gas
430 (1,578g of CO2)
Diesel
772 (2,833g of CO2)
Oil
828 (3,039g of CO2)
Coal
955 (3,505g of CO2)


  As of the end of January 2008, the situation had become more critical as the European Commission increased the target for renewable energy. The error of this process needs, therefore, more than ever to be brought to public attention, and reversed."

  I shall, of course be submitting my observations to your Committee before 16 July.

(Footnote on technical knowledge

  At the end of August 2007, BBC Radio 4 broadcast a programme in the Costing the Earth series, entitled Wind Rush, in which the Minister for Energy, Mr Malcolm Wicks personally stated, quite definitively, that wind farms had an efficiency of 40 to 46%, and that the energy was "carbon free". Efficiencies have never in fact reached 30% as a whole, and the carbon "footprint" of wind energy is twice that of nuclear power. This error, to Mr Wicks' credit, has since been corrected.

  On the Shadow Benches, I queried the accuracy of statements in a video clip on the Energy Policy website. The response affirmed that Mr Duncan had had a career in, and understanding of, the energy industry. This was a business career including trading in oil futures. This had no technical content relating to power generation. The conversation continues.)

29 May 2008



 
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