The Utility Industry's Approach to Global Climate Change
5.23.07   Chris Neil, Energy Economist
 
The utility industry is pursuing a solution to global climate change that could lead to significant reductions in emissions related to global climate change. The industry needs to aggressively pursue these steps in order to have a significant impact on emissions, but many key steps are being undertaken or have been started. In addition, the industry needs to realize that it is undertaking a climate change strategy. The utility industry has not put its steps into a climate change framework and promoted its activities. Instead, to use an analogy from old-time movies, the utility industry appears to have tied itself to the railroad tracks and is waiting to be run over by the train of government climate change legislation. Instead of waiting for government action, the utility industry needs to work with the government to develop a comprehensive framework for addressing climate change.

Not only is the utility industry unclear about what to do about climate change, but America does not know how to address climate change. The most frequently mentioned approaches for addressing climate change are either a cap-and-trade system or a carbon tax. Neither of these options will physically reduce one ton of carbon dioxide (CO2) emissions. America and the utility industry need to identify steps that will physically reduce emissions, either in response to a cap-and-trade program, a carbon tax or simply incentives for these specific steps. Approaches like cap-and-trade and carbon taxes are expected to facilitate steps that would actually reduce carbon dioxide emissions, but the utility industry and others still must undertake the steps to physically reduce emissions.

There is a growing number of people in the utility industry that are beginning to recognize that a comprehensive emissions reduction framework includes energy efficiency, nuclear, renewables, coal with carbon capture and sequestration, and plug-in hybrid vehicles. Some people add more steps and some consolidate them, but these are the key steps. Duke Energy CEO James Rogers, for example, plans on “nuclear, wind, and energy efficiency” and also includes “advanced pulverized coal plants and state-of-the-art integrated gasification combined cycle coal plants.”(1) Xcel Energy CEO Dick Kelly says that “clean energy means - first and foremost - renewable energy. Clean energy also means energy efficiency, and new, coal-fueled facilities with carbon capture and sequestration. And, we think it also means the next generation of nuclear plants.”(2) The Electric Power Research Institute (EPRI) has undertaken an analysis similar to that presented here but based on AEO 2007 instead of AEO 2006. EPRI’s Chairman who is PNM Resources CEO Jeff Sterba, and EPRI’s President and CEO, Steven Specker, have recently made presentations on this approach and the principal technologies that they include are energy efficiency, renewables, nuclear, carbon capture and sequestration and plug-in hybrid vehicles. (3)(4) Somewhat like Duke, EPRI adds to this list advanced coal generation where the efficiency (heat rate) of existing plants is improved and new plants are extremely efficient.

So the utility industry is beginning to realize that it has the technology to address emissions related to global climate change. These technologies are, for the most part, not something new but evolutionary versions of what it has been doing and is doing. The next question is how much can emissions be reduced if an aggressive program is undertaken? This article shows one scenario for how emissions could be changed. This scenario should not be considered the only outcome or even the most likely. This scenario demonstrates that under the assumptions used here, CO2 emissions could be reduced to the level targeted under the Kyoto Protocol. The target for the U.S. under the Kyoto Protocol was to reduce emissions to 7% below the country’s 1990 level. Figure 1 illustrates the results of this scenario and the assumptions are discussed in the remainder of this article. Figure 1 demonstrates that CO2 emissions can and probably will be reduced significantly from the base case, which is the Energy Information Administration’s Annual Energy Outlook 2006, (AEO 2007 has a similar level of emissions). In this scenario, CO2 emissions are reduced to the Kyoto Protocol target by 2030. The Kyoto Protocol wanted emissions reduced by 2012, but this was not practical. Examining the assumptions required to achieve this emission reduction level will likely demonstrate that achieving this level of emissions reduction prior to about 2030 is also impractical.

Figure 1 presents the emissions reductions from each technology in terms of “stabilization wedges,” somewhat akin to the wedge strategy promoted by Stephen Pacala and Richard Socolow of Princeton University.(5) Pacala and Socolow had wedges of equal size, but the wedges in Figure 1 are of different size reflecting the cost-effectiveness of each emissions reduction option and the potential for emissions reductions by each option.

Professors Pacala and Socolow suggested that a portfolio of technologies is needed to reduce CO2 emissions because no one technology can come close to achieving the emissions reduction required. The scenario illustrated in Figure 1 reinforces this, as multiple technologies are required in the utility industry as well as from other emission sources. Every emission source must be attacked in order to achieve significant emissions reductions. That is, a comprehensive approach is required to address emissions related to climate change. No one source can do it all, or even achieve a large part of the emissions reduction. As has been widely stated, there is no one silver bullet that can solve emissions related to climate change, only silver buckshot.

The climate change scenario presented here builds on and incorporates several components from studies performed by the energy and economic consulting firm Global Insight. (6) (7) The Global Insight GHG Scenarios are also noteworthy because Global Insight used its detailed energy and economic modeling capabilities to demonstrate that GHG emissions can be addressed without an adverse impact on the economy.

Figure 1: Emissions Under the Utility Industry’s Climate Change Scenario

Each of the emissions reduction options is briefly discussed below. A specific level of activity is stated but these levels should be considered illustrative and not definitive. These levels of effort were chosen because they appeared aggressive but not unrealistic, and because together they achieved the emissions level targeted under the Kyoto Protocol. The actual level of effort in each step will ultimately depend on a great many factors such as costs, incentives, technological breakthroughs and R&D failures. The plan should be a dynamic one that adopts and evolves over time as circumstances change. An earlier version includes a slightly different scenario and discusses their options further.(8)

Energy Efficiency in Electricity-Consuming Equipment

The first step in the electric utility industry part of this scenario is energy efficiency. Utilities have implemented energy efficiency and demand-side programs for many years. The focus for CO2-related programs is more on energy savings and less on peak demand savings, however. Utility programs, government incentives, appliance standards, building codes, etc. are assumed to reduce demand by 10% from the base case by 2030 in this scenario, which reduces the growth rate from about 1.5% per year to roughly 1.1% per year between 2007 and 2030. The base case is the Energy Information Administration’s Annual Energy Outlook 2006. Energy efficiency is one of the areas that could result in greater emissions reductions if technological improvements or greater customer penetration can be achieved.

Renewable Generation

Renewable generation is another of the fundamental building blocks global climate change framework. Many utilities have already acquired renewable generation and more utilities are acquiring renewable resources under state renewable portfolio standards or mandates. States with RPS or state mandates are indicated in Figure 2.(9) In order to convert these incremental efforts into a climate change framework, these efforts would need to be expanded nationwide. Cost-effective renewable alternatives or ones that would result in a small incremental cost to ratepayers include wind, small hydro, bio-mass, bio-gas, geothermal and combined heat and power and are targeted for 15% of total generation by 2025 (excluding large hydro). Wind has been the primary renewable resource developed. It may be possible to increase the level of renewable generation above 15%, but it is limited in this scenario under a concern for system reliability with large amounts of wind power and because wind resource potential in the southeastern U.S. is limited. If system reliability can be maintained with large amounts of wind and if additional, cost-effective renewables are available, then the long-term RPS could be increased above the 15% target used here.

Figure 2: States with Renewable Portfolio Standards or State Mandates

Nuclear Power

Nuclear power is another component of the utility industry’s climate change plan. U.S. Secretary of Energy Samuel Bodman stated, “There is an emerging consensus that nuclear power must be part of America’s energy future.”(10) Nuclear power is experiencing a resurgence, in part because of its emissions benefits. The Nuclear Energy Institute, which is the policy organization of the nuclear energy and technologies industry, reports that 33 units amounting to approximately 40,000 MW of new nuclear capacity have been announced.(11) Most of the announced new units are planned for roughly the 2015 to 2020 timeframe; long-term units have not yet been announced. The scenario illustrated in Figure 1 includes an average rate of five nuclear units per year from 2015 to 2030, or a total of about 104,000 MW by 2030. This additional capacity does not mean that there would be new nuclear plants all over the country. This represents roughly two more units at 40 of the existing 65 nuclear plants. A few new sites would be developed, but most of the new units are anticipated to be located at either existing nuclear plants or at sites where construction of a nuclear plant was started but suspended.

Carbon Capture and Sequestration at Coal-Fired Power Plants

The next option is carbon capture and sequestration at coal-fired power plants. This step has started with government assistance through the FutureGen project. The scenario presented here includes FutureGen in 2012, an average of 1,000 MW per year of carbon capture and sequestration plants over the 2015 to 2019 period, and 2,000 MW per year from 2020 until 2030. A relatively low level of carbon capture and sequestration is included in this scenario because it is currently one of the more expensive ways to reduce carbon emissions. Technological developments in the future could lead to lower cost ways to capture and sequester carbon. If these costs come down, then additional carbon capture and sequestration could be implemented.

The Transportation Sector and Other Energy Sectors

In order to illustrate the reductions in total U.S. CO2 emissions, the transportation and other sectors are briefly discussed. The electric utility industry’s plan is tied to the transportation sector because it is the total emissions reduction that is important, and also because plug-in hybrids could be one of the key means of reducing emissions for the transportation sector.

Plug-In Hybrid Vehicles

Plug-in hybrid vehicles could help to dramatically reduce “America addiction to oil” and to reduce greenhouse gas emissions. The Edison Electric Institute has come out in support of plug-in hybrid vehicles because they would reduce America’s dependence on imported oil, reduce tailpipe emissions and improve air quality, diversify transportation fuels, and reduce fuel costs and volatility for consumers.(12) The emissions from the electric generation required to recharge the batteries in plug-in hybrid vehicles is more than offset by the lower emissions from the gasoline engine. This scenario assumes that plug-in hybrid vehicles achieve 100 miles per gallon (mpg) of gasoline and that 10.5% of new vehicles are plug-in hybrids starting in 2014 and about 22% of new vehicles are plug-in hybrids starting in 2020. Actually, the percentages of plug-in hybrids are rolled into an overall fuel economy target that is discussed below.

Corporate Average Fuel Economy Standards (CAFE) +20%/+30%

The Corporate Average Fuel Economy (CAFE) illustrated in this scenario includes a 20% increase in vehicle mileage in 2014 and a 30% increase in 2020 from the current CAFE level of 27.5 mpg. This is referred to as CAFE +20%/+30% on Figure 1. Both cars and trucks must meet the new standard, but it is expected that this will be accomplished by encouraging buyers to switch from big trucks and SUVs to cars and crossover vehicles. Though the plug-in and CAFÉ standard are listed separately, these are combined into a final CAFE standard, which would be 40 mpg in 2014 and 50 mpg in 2020. Automakers can meet this requirement anyway they chose. Automakers can make vehicles that achieve 40 mpg, or, for every vehicle that gets 20 mpg, they must also make a plug-in hybrid that achieves 100 mpg. In the later example, the profits on the three low mileage vehicles could be used to offset the cost of the plug-in hybrid system.

Biofuel

Biofuels are an important part of a comprehensive framework to address climate change scenario. Biofuel includes ethanol, bio-diesel and, perhaps, bio-butanol. The utility industry is normally not directly involved with biofuels. Biorefineries are large energy users and cogeneration could be an opportunity for the utility industry or co-location of biorefineries at power plants. Utilities have long been supporters of alternative fueled vehicles through their fleet purchases.

Ethanol production reaches about 46 billion gallons of ethanol in 2030 (3 million barrels per day) in this scenario. Cellulosic ethanol technology is a clear requirement in order to achieve high levels of ethanol production. The U.S. Department of Energy recently awarded $385 million in federal funding to six cellulosic ethanol production facilities that will produce 130 million gallons per year when at full production.(13) These facilities will help take cellulosic from the lab to the market.

Other Transportation

Other transportation consists primarily of freight trucks and planes as well as smaller uses such as trains, busses, ships, pipelines and military use. Emissions from this sector are reduced by 25% by 2030.

Residential, Commercial and Industrial Energy Efficiency

Residential, commercial and industrial energy use includes non-electric direct use of energy such as natural gas and oil for space and water heating and fuel for cooking and process hot water and steam. Emissions from this sector are also reduced by 25% by 2030.

Results

Total CO2 emissions in this scenario are reduced to approximately 4,500 million metric tons of CO2 by 2030 (see Figure 1 above). As stated above, the 2030 emissions level was approximately the U.S.’s proposed target under the Kyoto Protocol. Emissions are reduced by approximately 3,600 million metric tons of CO2 in 2030, or approximately 45% from the base case.

Figure 3 shows electric generation under this scenario. Nuclear and renewable generation increases with this mix of new generation. Coal- and natural gas-fired generation decreases somewhat. The change in generation is not as dramatic as some might fear, even though the change in emissions is substantial.

Figure 3: Electric Generation by Fuel in the Utility Industry Climate Change Scenario

The steps illustrated here for addressing climate change scenario do not appear to have an adverse impact on the utility industry. The industry is already undertaking these steps. The industry is developing new nuclear generation units on its own. Utilities have added renewable resources under state renewable portfolio standards. Utilities have implemented energy efficiency and demand management programs for many years. Carbon capture and sequestration at coal plants is beginning to be developed. Thus, this type of approach to addressing climate change appears to be one the industry can live with.

The emissions reduction target needs to be considered carefully. This scenario achieves a level of emissions that is roughly 7% below the U.S.’s 1990 emissions level. This is the target under the Kyoto Protocol, but the Kyoto Protocol wanted the target reached in 2012 while the scenario illustrated here does not reach the target level until 2030. The Kyoto Protocol target date was simply not feasible. Now, others are proposing new targets. These proposed targets need to be evaluated to determine whether they can be physically achieved and whether the required steps to achieve them will be undertaken. For example, if a proposal has a target date of 2020 for reducing emissions below the 1990 level, then a CAFE standard of more than 45 mpg must be also adopted as well as significant incentives for nuclear, renewables, ethanol, etc. If the associated steps and incentives are not included, then the emissions reduction proposals are simply not realistic.

Conclusion

America and America’s utility industry have had a difficult time identifying an approach for addressing climate change. More and more people in the utility industry are beginning to recognize that the steps indicated in this article are some of the key ones for a comprehensive emissions reduction framework to address global climate change. The utility industry’s key steps include energy efficiency, nuclear, renewables, coal with carbon capture and sequestration, and plug-in hybrid vehicles. Some studies add more steps and some consolidate them, but these are the key steps. The utility industry is also beginning to realize that it can implement an emissions reduction plan without adversely impacting the industry’s financial well being or its customers. Implementing a plan will take some time, and the utility industry is going to need to work with the government and other stakeholders to order to implement this plan. Global climate change can be addressed rather than ignored.

The opinions expressed here are solely those of the author and do not reflect the position of any other organization.

References:

(1) Coyne, Martin, Companies' CEOs to deliver recommendations on global warming bill , Platts, http://www.platts.com/Coal/News/6336813.xml?p=Coal/ News&sub=Coal&src=energybulletin, Jan 5, 2007

(2) Kelly, Dick, Xcel Energy Chairman and CEO Dick Kelly's Remarks to Western Resource Advocates, Xcel Energy press release at http://www.xcelenergy.com/XLWEB/CDA/0,3080,1-1- 1_15531_16344_33060-30354-0_0_0-0,00.html, Nov 10, 2006

(3) Sterba, Jeff, Technology Needs for a Carbon-Constrained World, CERAWeek 2007, PNM Resources, Feb 15, 2007

(4) Specker, Steven, Electricity Technology for a Carbon-Constrained Future, EPRI, http://my.epri.com/portal/server.pt? space=CommunityPage&cached=true&parentname=Login&parentid=1& in_hi_userid=2&control=SetCommunity&CommunityID=205&PageID=410, Feb, 2007

(5) Pacala, S. and R. Socolow, Stabilization Wedges: Solving the Climate Problem for the Next 50 Years with Current Technology, Science, Vol 305, August 13, 2004, p. 968-972.

(6) Lindemer, Kevin and Gil Rodgers, A Scenario for Reducing Greenhouse Gas Emissions, U.S. Energy Price Outlook, Global Insight, Winter 2005-06, p. 17.

(7) Global Insight, Addressing Global Climate Change: Is the U.S. at the Tipping Point, in U.S. Energy Outlook 2006, p. 7-16

(8) Neil, Chris, A Low-Cost Solution to Global Climate Change – Part I and Part II, EnergyPulse, Oct 5 and 6, 2006, http://www.energypulse.net/centers/article/article_display.cfm?a_id=1345 and http://www.energypulse.net/centers/article/article_display.cfm?a_id=1346

(9) U.S. Department of Energy, Renewable Energy 2004 webpage, (data are for 2005), http://www.eia.doe.gov/cneaf/solar.renewables/page/ rea_data/rea_sum.html

(10) Bodman, Samuel, Ask the White House Q&A after the President’s State of the Union Address, http://www.whitehouse.gov/ask/20070124.html, Jan. 24, 2007

(11) Nuclear Energy Institute, The Changing Climate for Nuclear Energy, Feb 22, 2007 at http://www.nei.org/documents/Wall_Street_Briefing_02-22-07.pdf

(12) Edison Electric Institute, Plug-In Hybrid Electric Vehicles Promise Major Energy, Economic and Air Quality Benefits, EEI Says, http://www.eei.org/newsroom/press_releases/060517.htm, May 17, 2006

(13) U.S. Department of Energy press release, DOE Selects Six Cellulosic Ethanol Plants for Up to $385 Million in Federal Funding, http://www.energy.gov/news/4827.htm, Feb 28, 2007

Comment
Kenneth Kok
5.23.07
This appears to be an interesting summary of a large number of interesting changes. I have three questions: 1. What is the impact on the electricity production growth requirement caused by the introduction of the plug-in hybrid vehicles and is that included in the analysis? 2. What is the impact on the new construction of utility plants required because of retirement of older plants? If all of the nuclear plants in the US receive extended licenses things are probably ok until 2030 but it is likely that some of these plants may not receive such extensions. 3. How will the CO2 savings be achieved in the "Other Transportation" sector. The number posted is 25% but there is no related discussion. Are we talking about electrification of the rail system or something equivalent to that?

 

Len Gould
5.23.07
The several repetitions of "The Kyoto Protocol target date was simply not feasible." sounds, to an old suspicious guy like me, to be the political positioning of a Bush government spokesperson. The extremely unambitious goals set here for 2030 would have been readily achievable by 2012 had Kyoto been ratified expiditiously, then steps like convincing populations why nuclear new build was required and doing some (relatively tiny, budget-wise) agressive R&D / promotion of CSP etc.

In general, I see no factual flaws in your article. However some of the opinions expressed could do with some scrutiny. Restricting renewables to 15% by 2030 just because you think the grid cannot handle more than 15% wind generation is ridiculous. a) the PHEV's which you also promote, if used as storage systems for grid load levelling as they obviously should, can allow that rate to increase significantly. b) solar CSP, if supported in ANY way nearly as heavily by government as fossil, could contribute a significant addition. c) how are you going to keep the photovoltaic units, widely predicted to be generating power cheaper than coal by 2030, out of the country?

Much more, I'll leave it to others for now.

 

Todd McKissick
5.23.07
"The Utility Industry's Approach To Global Climate Change" tend to lead one to believe that this is a) a problem best left to them to fix b) they are the sole experts in the solutions and c) nothing done by anyone else will significantly contribute to the solution.

A large part of the problem is that we are asking the foxes for advice in how to save our chickens. The entire premise of this article gives no credence to the hundreds of distributed generation solutions showing as much or more promise as what the utility industry has to offer. How many clean coal, celulose or capture and sequestration systems are proven? How about all the efficiency and conservation 'awareness' programs? Even the cap and trade programs are proving to be easily gamed by those unwilling to actually reduce emissions. Case in point, the number of coal plant applicaitons has risen since carbon limits have come into the spotlight. I see most of these as nothing more than ways to profit from the turmoil of transition without actually doing anything - much like writing zero solution articles.

Len, Two different proposals call for Europe to receive upwards of 40% of their current electrical power from concentrated solar generated in North African plants and shipped via HVDC lines. Their estimated cost is cheaper than NG is today. There's a higher insolation in the Southwest US than in Africa. \:)

 

Edward A. Reid, Jr.
5.23.07
Len,

Kyoto was/is nonsensical. It certainly was/is not a "global solution". Achieving its "wishes" ("A goal without a plan is just a wish.") would not have accomplished the emissions reductions necessary to achieve concentration stabilization in the 500 ppm range. In fact, your own arguments in other threads suggest that global anthropogenic carbon emissions must be eliminated to avoid increasing atmospheric CO2 concentrations. The performance of Canada and the EU relative to even Kyoto's ineffectual reduction targets further confirms the lack of political will to accomplish the reductions necessary to stabilize atmospheric concentrations.

Kyoto was a blatant attempt to get the developed world "a little bit pregnant", with full knowledge that it would be very difficult to stop getting more pregnant as time went on. (One could argue that the "success" of Kyoto to date is similar to a miscarriage.) Canada and the EU have been very quick to point out that "the check is in the mail", though it seems very slow in arriving; the UN has been equally quick to assure that "of course, I'll respect you in the morning". US citizens have long been sceptical when they hear: "I'm from the government and I'm here to help."

Also, without storage, wind is limited in market share to the local conventional capacity reserve margin; that is, of course, unless you would be satisfied to have brownouts and rotating blackouts become commonplace.

Todd,

If there is not a utility response to carbon emissions reductions, there will be precious few reductions at all in the electric power sector. Roughly 95% of all electric power in the market is produced by utilities. That may change over time, but not drastically by 2030.

Ed Reid

 

Len Gould
5.23.07
Ed: To quote a mythbuster "I reject your reality and substitute my own". You speak as if you would only be happy had Kyoto demanded 90% reductions immediately. A ridiculous straw-man. Kyoto proposed, without penalties, the effort to try to do what could have been done had all developed nations tried, and not have had to compete with some who refused. If further scientific research then produced a strong case for going further, then that step should follow Kyoto.

Also, as I said above, a large fleet of PHEV's with a market managed by smart meters can eliminate most of your "storage" argument.

 

Len Gould
5.23.07
The only flaw I'll agree to in Kyoto is that it didn't provide for relative changes in population among countries. However, if "going for the 90%" turns out to be required, and the agreement needs to bring in developing countries, you may be happy for the precedent.

 

Todd McKissick
5.23.07
Ed, Most of the home DG solutions coming out these days ARE fully eliminating anthropogenic carbon emissions. How fast do you think they will be put into use when they also become cost competitive with utility power? (For a good comparison, the large satellite dish industry installed over 5 million units in less than 5 years. Customers paid $100/mo loan to offset $60 cable for just more television.) These guys, myself included, work from the goal of making a building self sufficient then just multiply by the number of buildings. Only regulatory issues hold them back from generating multiples of their own use. If cleanly generating double what you use, doesn't that count for ten times the emissions reductions of another building that just reduced their emissions by 20%?

Discounting them completely in this or any other global solution can only be termed biased. Their technological roadblocks are often much more easily overcome than something like sequestration or coal gassification. The difference is that they are not the big fish going after the government worms. I honestly didn't see any utility solutions in this article that weren't tied to government money of some kind. What does that say about the real motives of everyone involved?

 

Edward A. Reid, Jr.
5.24.07
Todd,

I discount nothing completely. However, residential power use is about 40% of the market. There are more than 100 million residential dwellings in the US. At 15 kW or less per system, it would take a major success to keep up with market growth, no less begin replacing existing central generation. Therefore, if carbon emissions are to be reduced in this timeframe, utilities must participate.

Ed

 

Len Gould
5.24.07
Ed: A potentially stronger argument against "going nuts" to reduce atmospheric GHG's in this (long and complex) set of postings and references.

William Astley on Varying Solar magnetic fields and possible effects on Earth's Climate - Solar Cycle Changes 2007 & Climate, Maunder Minimum? - Physorg Forum

 

Edward A. Reid, Jr.
5.24.07
Len,

"To quote a mythbuster "I reject your reality and substitute my own". You speak as if you would only be happy had Kyoto demanded 90% reductions immediately. A ridiculous straw-man. Kyoto proposed, without penalties, the effort to try to do what could have been done had all developed nations tried, and not have had to compete with some who refused. If further scientific research then produced a strong case for going further, then that step should follow Kyoto."

I acknowledge that I am incapable of understanding your position(s) regarding AGW. After reading a number of your posts, I believed that you were in the camp of those who are convinced that the science is settled, the debate is over, all anthropogenic Carbon emissions increase atmospheric concentrations and all increases in anthropogenic concentrations are caused by fossil fuel use; and, it is all Bush's fault. I believed that you had concluded that further additions of anthropogenic carbon to the atmosphere must be dramatically reduced or eliminated to stabilize atmospheric concentrations at ~500 ppm or less.

Now you are talking about Maunder Minimums. I presume your point is that the advent of a Maunder Minimum would slow warming and provide more time to achieve carbon emissions reductions, though that seems to conflict with your criticism of the author for his negative comments about the Kyoto reduction schedule; and, his longer proposed schedule.

I gather you are not in the camp of former US VP Gore regarding "90% reduction by 2050" (which, by the way, is not quite "immediately"). Your defense of Kyoto, combined with your suggestion that, as we learn more, we might need to go beyond the Kyoto reductions, suggests that you might believe that 1980-1985 emission levels (~7% below 1990 levels) might actually be sustainable and result in capping atmospheric carbon concentrations.

I just cannot put all of these puzzle pieces together into a picture I recognize and understand.

Also, while I understand that developed nations compete with each other, I also understand that they compete with developing nations such as China and India. While adoption and ACCOMPLISHMENT of the Kyoto carbon emission reduction goals by all developed nations would likely not have adversely affected their competitiveness with each other, it is difficult to argue that it would not have affected their competitive positions relative to China, India and others.

China, as I am sure you are aware, is now projected to surpass the US in anthropogenic carbon emissions this year. I am unaware of any projection of a slowing of the rate of growth of China's carbon emissions. As I stated in a comment in a previous thread, the US could not possibly reduce carbon emissions quickly enough to offset the increases projected for China. In reality, I doubt the developed world could reasonably reduce emissions quickly enough to offset the increases projected from China and India. If that is true, even if the developed world met the Kyoto targets on schedule, carbon emissions would still be higher in 2012 than they are today; the increase would just be coming from different countries.

 

Len Gould
5.25.07
Re: China and Kyoto. There were two good reasons to leave China et al out of Kyoto. 1) Since Kyoto 1990 was never intended to be the final step and it was in fact simply a measure to prove that the heavy users could actually demonstrate capping their emissions at a per capita level much higher than those of developing nations, it made complete sense to leave developing countries out of it. Developing countries have every ethical right to claim their right to emit as much CO2 in their progress to industrialization as have the developed countries. Our only hope is to convince them to do somewhat better per capita than we have done, collectively emitting about 400 Gt carbon /1350 GT CO2 in our progress to industrilization and raising atmospheric levels about 33% 2) The technologies required to achieve the next step were supposed to have been developed during this decade, tested and proven from 2008 to 2012, and be ready and in place for a next step if required. It is the developed countries, esp. USA with its R&D capacities attracted from the best all over the world, who should do the development (eg. IGCC, CSP, photovoltaic, G3+ nuclear, etc.) Instead of whining, backing out and refusing to help, you should have been helping a lot more than you have been. It is a potentially serious problem and options need to be proven and in hand soon, in case research actually proves requirement.

In re my apparent ambiguous position on the global warming, to clarify: My measure of all the science to date is that business as usual will very likely cause some nasty consequences for our future generations. For that reason I constantly hunt hopefully for any new science and criticisms and debate of same, as referenced above, which might offer any hope this may be avoided. I can tend to sound gleeful when I do find things which appear even on first reading to stand scrutiny, though I have been dissapointed more than once in the past. My measure of the present economic ethic is that there should be no reason for "economic growth" above the prevailing rate of population growth. Anything more which is achieved in a sustainable manner is great, but to sacrifice all of nature to simply increase the wealth the top 10%, as has been happening in the past 25 years, is criminally stupid. I'm getting a real bellyfull of this neo-liberal "trickle-down" economics, which doesn't, and which cannot be sustained in its present form. If you disbelieve me, do some research on relative shares of what used to be called the "middle class", or read Eisenhower, many others of common sense.

 

Len Gould
5.25.07
A Good start for Eisenhower

 

Todd McKissick
5.25.07
Ed, Wow. I don't even know where to begin on your last response to me. First off, I was accusing the author of this article of discounting a large potential supplier by not even including a generic home generation category in his analysis. I wasn't referencing your comments, but since you stated that you don't practice this action, allow me to investigate.

By your numbers, 100 million residences would need "a major success" to reach some level. You define this level as just "to keep up with growth" but no where near "begin replacing existing central generation". You used 15 kw per residential system which is 13.64 times an average home's average needs. With the total residences using 40% of the total "power market", that means supplying 2.5 times that market would supply the entire "power market". Am I correct so far? So if 100% of these residences were generating 15 kw, that would total 5.5 times the total need. In other words, we'd need 18.33% of the houses "to keep up with growth", to "begin replacing existing central generation" and to ELIMINATE all central generation. Stretching an 18% adoption rate over even 20 years, means less than 1% adoption per year. Yet you conclude without this simple analysis that it's unworthy of serious consideration. I would call this discounting it.

However, a more realistic scenerio would drop the 15 kw estimate down to ~4kw. It would include ~10 kw in heating and cooling savings. It would also include the hundreds of millions of other dwellings that are not residences. Those would most likely be more financially capable of installing these systems. This scenerio would also include dual use areas like highway medians, parking lots, interstate cloverleafs, feed lots and many others with medium-large scale potential. Most of all, it would include the massive commercial, industrial and merchant buildings which are capable of supplying tens of megawatts each. With any legislation supporting the potential of them to profit from the resale of their excess, they are poised to become major suppliers. An analysis I did last year estimated that less than 60% of the total WalMart roof space in the US could supply our 2020 estimated electricity needs and it could pay itself off in less than a decade at fair rates. All we need to do is change the status quo so that people begin to think in terms of every building including as much self generation as feasable instead of just accepting that it's the utility companies' job. Just because they've had a monopoly for a century, doesn't mean it's a right.

The propaganda that permeates society today is the main cause of this. Why are we suddenly seeing all BP commercials in eco colors? I've even seen green, child targeted clean coal commercials. Pathetic. It's all in support of what Len just referred to - "simply increase the wealth of the top 10%"

 

Edward A. Reid, Jr.
5.25.07
Todd,

Basing calculations on average demand is fine, if: you have a system capable of storing excess energy in the demand troughs and delivering it to serve the demand peaks; or, you can shape demand to match availability. However, 60 amps at 240 volts is still 14.4 kW; and, very few homes are built today with 60 amp services. Therefore, if you can't load shape or store, it takes a 15 kW system to meet demand. Also, if the system is solar or wind, its capacity must be 3-4 times its actual applied load, because of its intermittancy. While that excess "capacity" exists, it is useless when the air is still or the sun is not shining.

The construction of ~1.5 million new homes per year, even at a 1 kW average demand, represents 1.5 gW of new generation per year. It is also 1.5 million system builds and installs per year. I certainly would consider that to be a "major success", especially compared to the historical sales numbers. Without load shaping or storage, it's 15 gW per year, which I would consider to be a "howling success".

US utilities are currently operating nearly 1,000 gW of generation. Total demand will likely grow by 1-1.5% per year going forward, unless someone does something to change the trend. On that basis, it will take quite a while to replace all utility generation with self-generation. However, it is a very large potential market in which approximately 2% of existing capacity must be retired and replaced each year; and, it is contestable. Go for it!

Wealth envy will not advance the cause. Transferring wealth from the "top 10%" to someone else will not advance the cause either; certainly, transferring it to the bottom 10% has not done so over the past 40 years. You are certainly free to try to turn the future into a "zero sum" game. However, you would likely discover that, even in a "zero sum" game, "some animals are (still) more equal than others". This has always been true, even in the world's "workers' paradises"; and, it will likely continue to be true until human nature changes. I fully expect to have achieved room temperature before human nature changes.

 

Todd McKissick
5.25.07
Ed, No engineer would ever calculate an actual system on average. That was simplified for the discussion brevity. Any system that can't peak to the occasional 60 Amp (or more likely 200 Amp) current residential max rating, would obviously be designed to rely on the grid for the shortfall. We're not talking about individual peaks, though, are we? We're talking about a daily peak that's presented to a central plant or possibly to a given substation. That's where the averaging is going to take place from all the houses served. That peak is many times less, relative to the trough you refer to, than on an individual home basis.

As I have mentioned before, a number of systems, including my company's, contain storage sufficient for up to multiple days. In ALL cases, this is a personal consumer choice with cost, return and hassle as it's factors. If and when it wins that argument in the consumer's eyes, it will become the norm. If we can give the utility companies the benefit of the doubt that they can make their up and coming tech developments smart enough to do that job, why don't the renewables get the same credit? Load profiling? C'mon, be serious. If you have the storage, I can build you a chip for $20 that will control that - especially with millions of customers in its target market.

When I used "average" to describe the output, I meant over a full 24 hour period. That wasn't referring to the average while the wind is blowing or while the sun is shining. Therefore its capacity is exactly as stated, not requiring 3-4 times more. See the averaging argument in the first paragraph. Any indepth discussion must include the interactions between electricity and other home supplied fuels like natural gas, as well as a realistic consideration of the future of auto power. All these are interconnected bidirectionally too, so any load leveling done at any stage needs to consider the trickle down benefits as well. Don't forget to credit all the mines and T&D right-of-ways saved and the big societal benefits which are why we went down this road in the first place. After considering all this, do you honestly believe that installation numbers equivalent to the old satellite dish number are all the Howling? And again, those numbers aren't accounting for the other markets I mentioned in my 'more realistic scenerio' above.

To be sure, renewables cannot supply all our needs. It has its own set of drawbacks. It is part of the mix that we will end up with. How big a part, no one knows. Certainly its broad applicability, stable cost, independance capability and the simplicity warrant the author's mention. These systems have no advocate groups yet. All the experts, researchers and developers are in bed with big energy. It's is just as if the ice suppliers consorted to discourage interest in the development of the in-home refrigerator a century ago. Sounds hilarious today, doesn't it?

 

Len Gould
5.25.07
Ed: "Transferring wealth from the "top 10%" to someone else will not advance the cause either;"

At what point did anyone say anything about transfering any wealth TO anyone? The issue is the greatly increased percentage of total GDP now captured by the top 10% compared to 25 or so years ago. But I might also point out that running huge government deficits which currently go almost entirely to the military and it's support infrastructures as in fact a transfer TO the wealthy. History is littered with the corpses of regimes which tried to continuously spend more than they took in.

 

Roger Arnold
5.26.07
With all due respect to the participants, I would suggest that the discussion of Kyoto is academic. For a variety of reasons.

At this point, it's evident that reductions in CO2 emissions will ultimately need to be much deeper than mandated by the Kyoto accords. And, yes, the reductions will have to involve nations exempted in Kyoto 1.0. I don't see that as an issue. As Chris points out, a range of technology options to achieve the needed reductions already exists. It's just a matter of economics. Once the price of fossil fuels gets high enough, conservation and the assortment of non-fossil energy resources will take over.

The crucial question, as far as I'm concerned, is whether the shift away from fossil fuels will occur fast enough on its own to keep global warming within tolerable bounds, or whether it will require assistance from energy policy.

Some maintain that depletion of fossil fuel reserves will "solve" the problem of CO2 emissions before the build-up of atmospheric CO2 can reach troublesome levels. The atmosphere currently holds 750 gigatons of carbon; anthropogenic emissions are running about 7 gigatons per year. In the past, a little less than half of what we emit has remained in the atmosphere, contributing to build-up. The rest has been absorbed, mostly in the oceans, but also to some extent by other carbon sinks that are harder to measure and less well understood. At an accumulation rate of 3 gigatons per year, it would take 84 years for levels to reach the 500 ppm (from current 380 ppm) that the concensus holds to be a safe level. Long before then, depletion of oil and even coal reserves, and the increasingly high cost of development of new reserves, will have rendered fossil fuels uneconomical.

There are a couple of problems with that view. First is the assumption that the oceans will continue to sink over half of the CO2 that we emit. That's doubtful. There's already evidence that the oceans are not sinking CO2 as fast as they have previously. In fact the measured rate of atmospheric CO2 increases has accelerated substantially over the last few years. The recent atmospheric accumulation rate has been over 4 gigatons net per year. As the oceans surface waters begin to warm, they will sink still less CO2. (Warm water is less able to dissolve CO2 than cold water.) Eventually, the warming oceans will stop sinking CO2 altogether, and will begin releasing part of what they already hold. Then look out!

The other problem is that, based on what we're already seeing, 500 ppm is looking less and less like a "safe" level. The current 380 ppm--which will inevitably go to 400 ppm within the next decade--may already be high enough to cause major disruptions.

The bottom line, for me, is that we can't afford to wait until depletion drives up the cost of fossil fuels enough to curtail demand. There's a clear need for policies to accelerate the changeover.

 

Len Gould
5.26.07
Roger: I really think it is wishfull thinking to hope depeltion of coal reserves can provide any limit on CO2 levels. At best, it is even "whistling in the dark" to hope petroleum will even run down fast enough. I assume that the hope for coal may have been based on current estimates of "recoverable" coal, which eg. excludes any low-grade coal which is burried too deep for surface mining. But, if you just google "inground gasification" you will find that it promises to "make available at very low cost" ANY coal at any depth. As soon as that becomes acknowledged by the reserve calculation, all the coal which underlies most of the entire western Canadian province of Alberts (just unimaginably huge proven "deep seam" resources, all carefully document during the oil drilling) becomes viable for economic extraction (at prices which will not limit it's exploitation in any way), and we can start looking for 1000 ppmv ++? CO2 very quickly.

Also I think your figures for current emissions are low. Last number I saw placed anthro fossil CO2 emissions at 27.1 Gt / yr (8 GT Carbon) and placed land "uptake" at -0.8 Gt Carbon, ocean uptake at 2.1 Gt Carbon. Difficult to find authoritatively though, so you may be correct.

 

Roger Arnold
5.26.07
Len,

I tend to agree regarding depletion of coal reserves, although the issue of relative costs complicates the picture considerably. Technological advances may make it economically feasible--by current standards--to tap deep reserves that aren't currently economical. But in the same time frame, technological advances should also reduce the cost of non-fossil alternatives. If the alternatives are cheaper, then hard-to-get coal and oil will be left in place.

But it would be foolish to bank on that to stave off climate change. We need policy assistance to drive the issue. The best form for that policy assistance is a separate discussion.

Regarding current emissions, I've seen different numbers from different sources. The variance is due partly to date--emissions are rising at ~3% per year, so a figure that's 5 years old will be substantially lower. More of it, though, is due to differences in what's included. One recent figure I saw was something like 7.1 GTC specifically for combustion of fossil fuels, but other figures include cement production and even from depletion of soil carbon reservoirs from human activity. I calculated the numbers for atmospheric accumulation myself, based on the record of CO2 levels measured at the Mona Loa station.

 

Jeff Presley
5.28.07
Gentlemen,

Happy Memorial Day. As usual, the talking past each other goes on apace, while solving next to nothing. However, there are many valid points and Mr. Reid is excellent as always. It is interesting to me that Ed called Len out for his apparent ambivalence. I now believe this is really the way Len's mind works. Before, I thought he was purposely messing with me (and others).

It is all well and good for the Canadian to call out the US for not doing its part and putting up the money to fund the R&D necessary to save the world from its excesses. Then in seeming contradiction, to condemn the capitalist classes for being so gauche as to want to perform work for profit. Now I understand that in Len's mind, there really isn't a contradiction, amazingly he can internalize completely divergent world views without conflict. My logic system has trouble with that so I would have to say Len has me beat there.

Here is someone Len should read, making many valid points from his own world view about the inevitable conflict between environmentalism and capitalism. From one world view, the author Curtis White is correct, man will ultimately come into conflict with nature in the name of progress. It is easy for him to sit in the comfort of his living room and type up the essays that make him a very comfortable living, while bemoaning the fact that we all can't live close to nature as (God?) intended. On the other hand, I could take Mr. White up to some interesting countryside where we could play a real-life version of "Man vs Wild". Something tells me Curtis would not survive the encounter. Nor in fact would the vast majority of the Western world's population.

People here have been quoting Malthus perhaps without realizing it. The fact that Malthus' predictions were completely debunked by reality have not dissuaded others from merely placing the date forward a few hundred years. What isn't acknowledged by them is the simple fact that it was TECHNOLOGICAL CAPITALISM which saved the day and allowed the world population to increase without the dire results predicted by Malthus. Malthus was completely correct however, when he pointed to the history of man; up to then nasty, brutish and short (but close to nature).

My personal world view says technology has its warts, but certainly beats the alternative. I've personally lived a subsistence existence in the woods for several months, mostly to test my own mettle but would not recommend it as a way of life. It is questionable whether I could have survived the coming winter, and I was in the best shape of my life at the time. Raising a family would have been impossible. It was merely survival, and I had the tremendous advantage of a vehicle for emergencies.

This is why I take immediate umbrage when I see statements on this site and elsewhere with people typing on computers, living in centrally heated and cooled shelters, consuming on average more than 300M BTU's per year per person, saying "we" are using too much energy and have to do something, including shutting down all the coal fired power plants etc. The reeking hypocrisy of it is a bit too much for me to bear, but then I can't hold diametrically opposed world views in my head at the same time.

 

Jeff Presley
5.28.07
Don't know how that happened, the Here above should have pointed to This article by Curtis White at orionmagazine.com

 

Len Gould
5.29.07
To co-opt a phrase, the only "reeking hypocrisy" is the presumption. Would Mr. Presley please prove when I have advocated a "back to pre-technology" track. To equate modern living standards with burning coal in dirt-burner technology is humerous if not sad.

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