Renewable Energy

How To Fix US Energy After Biden Broke It

Posted on by Ron Clutz

The Energy Bad Boys provide a road map at their blog 7 Quick Energy Takeaways from the 2024 Election.  Excerpts in italics with my bolds and added images.

How a Donald Trump second term could reshape energy policy

Donald Trump’s comeback victory in the presidential election, which included carrying all seven swing states and winning the popular vote, along with Republican majorities in the Senate and potentially the House of Representatives, means big changes are coming to our nation’s energy policies.

Here are 7 quick takeaways for what might change in the next administration.

1. Regulatory Rollback

The incoming Trump administration will take concrete steps to repeal or scale back the regulatory overreach emblematic of the Biden-Harris administration’s energy and environmental policy.

Some of the regulations that could see a repeal or rework under the Trump administration include the tailpipe emission standards (which were effectively an electric vehicle mandate), the Mercury and Air Toxics Standards (MATS), and of course, the rules on carbon dioxide emissions on power plants. 

The D.C. Circuit Court is set to hear arguments on the Clean Power Plan 2.0—which we determined would leave millions of Americans in the dark—in the coming months.

Capacity shortfall events – or blackouts – in Southwest Power Pool (SPP) when we modeled EPA’s proposal for carbon mandates, stemming from the agency’s use of 80% or higher capacity values for solar energy.

The U.S. Supreme Court declined to stay the rules at this time, so the outcome of the case will likely impact the Trump administration’s strategy in addressing these rules. They may opt to do a scaled-down version of the rules, similar to when they replaced the Clean Power Plan 1.0 with the Affordable Clean Energy rule. Time will tell.

What we know now is this: the Biden Administration’s goal
of imposing carbon dioxide limits on existing
natural gas plants is dead in the water.

2. A Re-emphasis on Federalism

The repeal or reworking of several of the electricity-sector mandates imposed by the Biden-Harris administration will mean states have more say in their energy affairs.

This is both a blessing and a curse, as blue states pursue aggressive renewable buildouts, and utilities in red states attempt to boost their corporate profits by “green plating” their grids. Utilities do this by enacting internal carbon-free goals that are similar to policies in blue states, hoping it goes unchecked by regulators and lawmakers.

Xcel Energy’s profits in Minnesota have been skyrocketing since the state’s first renewable energy mandate, signed into law in 2007.

Policymakers in moderate and conservative states need to understand that the utilities pursuing wind and solar in their resource portfolios are not working in the interest of their constituents, and appropriate market signals are desperately needed through reforms that value reliability and affordability.

This is why we are seeing a groundswell of interest in our “Only Pay for What You Get Act,” where utility companies would only be allowed to charge their customers for the reliable portion of a power plant that will bolster grid reliability while keeping costs as low as possible.

This shows the difference between profits earned by utility companies under normal regulation and what profits would be under Only Pay legislation.

Please feel free to reach out to us if you are interested in learning more about how Always On Energy Research can help policymakers in your state understand the stakes of getting their energy policy correct, and offer forward-looking solutions to the challenges we’ll all face in the coming years.

3. Repeal the IRA?

As we noted in our piece, Grassley v. The Grid, subsidies paid to wind and solar operations are no longer harmless feel-good incentives for alternative energy. Today, these subsidies are actively undermining the reliability of our nation’s electric grid.

IRA subsidies paid to wind and solar developers are used as an excuse by utility companies to justify closing down reliable coal, natural gas, and nuclear plants while pretending that their plans to replace them with wind, solar, and battery storage facilities are better for consumers.

As Travis Fisher has noted at his Substack, he estimates that the IRA will cost more than $1 trillion over the next 10 years and between $2 trillion and $4 trillion by 2050. These massive subsidies are so lucrative that companies are pursuing projects that only make sense if the subsidies exist, irrespective of whether they make any sense for customers. This is a recipe for enormous malinvestment of taxpayer dollars.

Repealing the investment tax credits and production tax credits for wind and solar facilities will be an indispensable part of reversing this trend and restoring rational market signals to the electricity sector.

4. Keystone Pipeline

During his appearance on the Joe Rogan Podcast, President Trump said he liked Robert F. Kennedy Jr.’s ideas on a lot of things, but we were relieved the President said he would need to keep him away from environmental policy decisions because he was hostile to “the black gold.”

Always On Energy Research’s oil and gas analyst, Trevor Lewis, notes that beginning day one, the Trump administration can take several steps to ensure America’s economy will have enough oil and gas to fuel decades of growth.

Restarting construction on the Keystone XL pipeline should be at the top of the list of priorities, which would bring job opportunities and economic activity to countless small towns from North Dakota to Kansas while simultaneously bolstering America’s energy security.

While America has vastly improved its energy independence from the rest of the world, our nation is still importing several million barrels of heavy sour crude from OPEC and other foreign nations. Restarting Keystone will allow American refineries to friend-source crude from Alberta and would, as an added benefit, reduce SO2 emissions from tanker ships, which negatively impact air quality and contribute to ocean acidification.

5. Drill Baby Drill

For domestic production, Trump’s Bureau of Land Management (BLM) will reverse the Biden Administration’s disastrous drilling policies.

In the first two years of the Biden Administration, total leases offered declined by 70 percent. By 2023, Biden’s BLM leased 95 percent fewer acres than Trump in 2019. Trump’s BLM can reverse this trend and award prime oil-rich lands to eager drillers in Wyoming, Montana, and Colorado. Offering these leases will replenish acreage inventories and reverse the 20-year decline in active acres, and the royalties paid on federal lands will be distributed through BLM’s oil and gas revenue splitting program with state governments and local communities.

Trump will also likely reverse the Biden Administration’s pause on permitting new liquefied natural gas (LNG) export facilities and appoint commissioners to the Federal Energy Regulatory Commission (FERC) that will approve the construction of new natural gas pipelines.

6.  Solar and Wind on Federal Lands

In 2023, the Biden Administration’s Department of Interior (DOI) gave renewable energy developers a sweetheart deal slashing the annual lease rate for wind and solar on federal lands by 80 percent. Months later, Biden’s BLM announced the Western Solar plan which will bridle 31 million acres of Federal lands – most of which in Western States thousands of miles from Washington D.C. – with 25 gigawatts of solar power.

Unless reversed by the Trump Administration’s BLM, the Western Solar Plan will erect inefficient solar panels over pristine western landscapes while damaging fragile ecosystems in the process. Worse still, communities would not be compensated for the damages done by these solar developers because, unlike oil and gas leases, BLM does not share the revenues paid by wind and solar lease rents or bonus payments on the Federal lands with local communities.

The revenues communities receive from royalties strengthen local budgets, create jobs, and support the care and maintenance of the local environment, which wind and solar currently don’t contribute to. Trump’s BLM will have an opportunity to end Biden’s free ride for wind and solar developers. President Trump can advocate for western lands and their inhabitants by leveling the playing field by ensuring renewable energy developers pay rates equivalent to those paid by oil and gas producers.

7. Halting Offshore Wind

The Biden Administration has pledged to install 30 gigawatts of offshore wind capacity by 2030. To meet this target, the Bureau of Ocean Energy Management (BOEM) offered 10 offshore wind leases and scheduled auctions for 12 more leases through 2028.

Offshore wind energy is one of the most expensive energy sources on the grid—even before accounting for the hidden costs of maintaining reliability with intermittent electricity generation.

Additionally, offshore wind has been the center of ongoing environmental controversies, from killing whales to the breakdown of blades in the middle of the ocean, only to washup onshore

To prevent another Vineyard wind disaster, in addition to saving consumers from expensive and unreliable energy, Trump should direct the BOEM to terminate the 12 scheduled leases. As for the 10 auctioned leases, Trump could (and should) rescind these leases from offshore developers, in a similar move to Biden rescinding Alaskan oil and gas leases.

French Fishermen Join U.S. Fishermen in Fighting Offshore Wind – IER

Conclusion

Biden Bad, Trump Good.

After 4 years of one of the worst presidencies for reliable and affordable energy, the Trump administration has the opportunity to unleash energy dominance by ensuring a level playing field for all energy resources, ending the subsidies and handouts to renewable and battery developers, repealing egregious regulations aimed at prematurely retiring coal and natural gas plants, and promoting an energy dominant policy which will help end Bidenomic’s policy of energy inflation.

 

 

 

Washington State Votes Against “Electrify Everything”

Posted on by Ron Clutz

Gas stoves are the thin edge of the wedge.

 

Update November 18, 2024

From the Olympian: WA natural gas measure I-2066 set to pass.

The sponsors of Initiative-2066, the Washington ballot measure that aims to expand access to natural gas in the state, have declared victory as votes have continued to trickle in from last week’s election. Early results showed the ballot measure holding a slim lead, which has slowly grown in the days since the election. As of Monday, Nov. 11, there are 51.64% of votes counted in favor of the measure, compared to 48.36% against it, according to the Secretary of State’s office. With approximately 274,171 votes left to be counted, I-2066 leads by a 112,203 vote margin. In order for the measure to fail, over 70% of the remaining votes would need to go against the initiative, leaving it all-but-guaranteed of a victory.

No on I-2066 has conceded the race, although it’s exploring possible legal challenges to the measure. The campaign claims that I-2066 is misleading, since it implies that Washington has a natural gas ban in place when it doesn’t. Additionally, the campaign said it’s looking into the possibility that the measure violates a section of the state constitution that asserts that “no bill shall embrace more than one subject.”

Results won’t be official until they’re certified by Washington’s 39 counties on Nov. 26 in and are sent to the Secretary of State, who has to certify them by Dec. 5.

Background Post

Megan K. Jacobson explains the fight and what’s at stake at msn A Washington State Revolt Against the Gas-Stove Grabbers.  Excerpts in italics with my bolds and added images.

Environmentalists have waged a campaign against natural gas, but users of this efficient, low-emission fuel are fighting back. A wide range of industry groups are backing Washington state’s Initiative 2066 to protect the right to choose natural gas.

By 2030, Washington is supposed to reduce carbon emissions to 45% below 1990 levels—one of its many overlapping climate goals. The state’s most recent energy plan declares that the cheapest route to meeting Olympia’s climate targets is to switch many uses of oil and gas to electric sources. Last year the Building Code Council amended the state energy code to make it prohibitively costly to install gas appliances in new buildings. In March the Legislature passed a law allowing the state’s largest natural-gas and electricity utility, Puget Sound Energy, to pass the costs of going green onto consumers and mandating the utility files a plan “to achieve all cost-effective electrification of end uses currently served by natural gas.”

To the Washington Hospitality Association and the Building
Industry Association of Washington, Initiative 2066’s cosponsors,
this sounded like an economic wrecking ball.

Anthony Anton, CEO of the hospitality association, says 84% of the restaurateurs he represents rely on natural gas. Remodeling to go electric is a “massive cost at a time where operators just can’t afford it,” he says. Some say the quality of their product would suffer, as some cooking methods, such as stir-frying, are difficult to perform on lower-heat electrical stoves. Most of the association’s members are very small businesses with substantial debt from Covid lockdowns.

The building association worries the new energy code will raise the state’s already high housing costs, locking out potential buyers. The code requires that new buildings meet a certain environmental “score.” Without the points from an electric heat pump, a builder will have to make up the difference with other green measures that run between $15,000 and $20,000 in a single-family home. “Every time they raise the price $1,000, it prices out another 500 Washington families,” says Greg Lane, the association’s executive vice president.

Dozens of varied industry groups support Initiative 2066. Each has its own reasons. The Washington Denturist Association worries about the expense of switching from propane- or gas-based equipment and a lack of reliable power. Most members are small businesses and it’s a good path for immigrant dentists whose credentials don’t carry over to the U.S.

The Washington State Tree Fruit Association (of which my paternal grandfather’s company, Apple King, is a member) is concerned about rising costs of refrigeration to keep produce fresh. A sudden power outage could be catastrophic for the state’s apple industry. Trade regulations for its top two export markets require that fruit be constantly refrigerated at a specific temperature for as long as 90 days.

The state’s cheapest energy plan would almost double electricity demand in Washington by 2050, putting an unprecedented strain on the grid. The only real option is to increase wind and solar generation, since the state’s plentiful hydroelectric capacity can’t do more without potentially threatening salmon. Wind and solar tend to falter in Washington in the winter, when energy demand peaks.

Consumers would also suffer in Washington’s green utopia. Everything from a haircut to a ballgame would become more expensive as the price of electricity rises. Climate advocates argue that Washingtonians will recoup their costs over time thanks to efficiency gains. But a 2021 report from Home Innovation Labs estimates that recovering the cost of a heat-pump installation could take 47 to 49 years. It’s worse for existing gas customers. The Building Industry Association of Washington estimates that switching from natural gas to electricity in a single-family home would cost as much as $70,000. Heat pumps also tend to fail in the sort of frigid weather that hits rural Washington in winter.

Proponents of electrification insist that technology will improve over time. But if they’re really confident that green energy will be the best option for consumers and businesses, then Initiative 2066 is no threat. Washington voters should ask why climate advocates still see it as one.

Washington State Revolt Against “Electrify Everything”

Posted on by Ron Clutz

Gas stoves are the thin edge of the wedge.

Megan K. Jacobson explains the fight and what’s at stake at msn A Washington State Revolt Against the Gas-Stove Grabbers.  Excerpts in italics with my bolds and added images.

Environmentalists have waged a campaign against natural gas, but users of this efficient, low-emission fuel are fighting back. A wide range of industry groups are backing Washington state’s Initiative 2066 to protect the right to choose natural gas.

By 2030, Washington is supposed to reduce carbon emissions to 45% below 1990 levels—one of its many overlapping climate goals. The state’s most recent energy plan declares that the cheapest route to meeting Olympia’s climate targets is to switch many uses of oil and gas to electric sources. Last year the Building Code Council amended the state energy code to make it prohibitively costly to install gas appliances in new buildings. In March the Legislature passed a law allowing the state’s largest natural-gas and electricity utility, Puget Sound Energy, to pass the costs of going green onto consumers and mandating the utility files a plan “to achieve all cost-effective electrification of end uses currently served by natural gas.”

To the Washington Hospitality Association and the Building
Industry Association of Washington, Initiative 2066’s cosponsors,
this sounded like an economic wrecking ball.

Anthony Anton, CEO of the hospitality association, says 84% of the restaurateurs he represents rely on natural gas. Remodeling to go electric is a “massive cost at a time where operators just can’t afford it,” he says. Some say the quality of their product would suffer, as some cooking methods, such as stir-frying, are difficult to perform on lower-heat electrical stoves. Most of the association’s members are very small businesses with substantial debt from Covid lockdowns.

The building association worries the new energy code will raise the state’s already high housing costs, locking out potential buyers. The code requires that new buildings meet a certain environmental “score.” Without the points from an electric heat pump, a builder will have to make up the difference with other green measures that run between $15,000 and $20,000 in a single-family home. “Every time they raise the price $1,000, it prices out another 500 Washington families,” says Greg Lane, the association’s executive vice president.

Dozens of varied industry groups support Initiative 2066. Each has its own reasons. The Washington Denturist Association worries about the expense of switching from propane- or gas-based equipment and a lack of reliable power. Most members are small businesses and it’s a good path for immigrant dentists whose credentials don’t carry over to the U.S.

The Washington State Tree Fruit Association (of which my paternal grandfather’s company, Apple King, is a member) is concerned about rising costs of refrigeration to keep produce fresh. A sudden power outage could be catastrophic for the state’s apple industry. Trade regulations for its top two export markets require that fruit be constantly refrigerated at a specific temperature for as long as 90 days.

The state’s cheapest energy plan would almost double electricity demand in Washington by 2050, putting an unprecedented strain on the grid. The only real option is to increase wind and solar generation, since the state’s plentiful hydroelectric capacity can’t do more without potentially threatening salmon. Wind and solar tend to falter in Washington in the winter, when energy demand peaks.

Consumers would also suffer in Washington’s green utopia. Everything from a haircut to a ballgame would become more expensive as the price of electricity rises. Climate advocates argue that Washingtonians will recoup their costs over time thanks to efficiency gains. But a 2021 report from Home Innovation Labs estimates that recovering the cost of a heat-pump installation could take 47 to 49 years. It’s worse for existing gas customers. The Building Industry Association of Washington estimates that switching from natural gas to electricity in a single-family home would cost as much as $70,000. Heat pumps also tend to fail in the sort of frigid weather that hits rural Washington in winter.

Proponents of electrification insist that technology will improve over time. But if they’re really confident that green energy will be the best option for consumers and businesses, then Initiative 2066 is no threat. Washington voters should ask why climate advocates still see it as one.

More Political Ignorance on Energy Realities

Posted on by Ron Clutz

Professor Ian Plimer schools a politico climate change “authority” in the above interview aired by Sky News Australia. For those preferring to read, a transcript is below lightly edited from the closed captions.

Climate Change authority Matt Kean, former Liberal treasurer of New South Wales, has lashed out at nuclear energy advocates, accusing them of being delay mongers trying to prevent renewables from succeeding. He labeled the push for nuclear and more gas as quote:

An illiberal drive to intervene in the market-led energy transition.”

Also he went on to say that the delay mongers have latched onto nuclear power despite the overwhelming evidence that it can only drive up energy bills, can only be more expensive and can only take too long to build this. In a cost of living crisis it seems to me that people calling for gas to be included in the capacity investment scheme are trying to stop renewables. Ian, I’m very very interested in your response to Matt K’s claims there.

Well this is just sheer stupidity. Mr Kean should know that when Finland put in its reactors, their latest reactors, the cost of electricity went down. And both the retailer and the wholesaler also had lower costs. So we have evidence very recently. The Page Research Center recently did a study on the cost of energy. This was done by Gerard Holland and he looked at solar and wind, he looked at nuclear, looked at gas and at coal.

By far the most expensive energy in Australia is solar and wind. This is considering the total costs, the land use changes, putting in the new power lines and so forth. Nuclear is quite cheap compared with that, gas is also cheap, as is coal. Coal’s the cheapest and that’s because we already have the infrastructure for coal.

Now what Mr. Kean doesn’t say is that solar and wind are not reliable, whereas nuclear, gas and coal are reliable. He also doesn’t say that solar and wind have a very short life less than 20 years. Whereas nuclear is at least 60 years for a nuclear power plant; more than 40 years for gas; more than 50 years for coal.

Moreover, he doesn’t say that our future demands for energy are going to increase enormously. We’re already using 10% of energy for data centers and with AI it’s going to be a lot higher. His real concern is that the practical economics of the nuclear lobby groups are starting to frighten renewables promoters; the practical economics of the gas groups are starting to frighten the wind and solar people.

These are the cheapest and most reliable and best forms of energy we can have in a country like Australia. And yet we’ve got all these foreign corporations who are running the solar and running the wind projects who are lining up for for their subsidies. And the subsidies make the renewable energy viable and profitable. The subsidies must keep getting renewed and he’s getting worried that that the whistle is going to be blown on this.

Worldwide, nuclear yields slightly more electricity than renewables.

We see around the world that we can have cheap reliable energy for very long periods of time from Nuclear. So I recommend that viewers look at Gerard Holland’s report from the Page Research Center. He aired these findings at the AIC conference on Tuesday, They show that we are going down the wrong path. We’ve got far too many vested interests whispering in Mr Kean’s ear. He doesn’t understand the fundamentals of energy generation and he doesn’t understand the fundamental weaknesses of solo and wind.

And I do love his comment about the illiberal drive to intervene in the market-led energy transition. When there has been so much market manipulation like the subsidies. It’s just wishful thinking to pretend that renewables are being led by the market, as though it were purely organic.

I’ve got an early Lefty losing it for you. It’s from the New Zealand greens:
Coal, don’t dig it, leave it on the ground, get with it.

What do you say to the New Zealand greens Professor Plimer. I think they’ve been taking some of Kamala Harris scripts and talking from them. I have no idea what they’re talking about. But we do know that the New Zealand coals on the west coast of South Island are exceptionally clean with very high calorific value, and very low Ash, They are prized coals.

New Zealand does have energy from other sources; from oil in and gas in the Taranaki Basin and some geothermal energy. But the New Zealand coals are some of the best in the world I have no idea what they’re trying to say except that perhaps they they want New Zealand to become even more backward.

Why They Lie About Nuclear Power

Posted on by Ron Clutz

Cliff Reece reports on the reasons for anti-nuclear distortions in his Spectator Australia article  Australia is already a successful nuclear nation.  Excerpts in italics with my bolds and added images. H/T John Ray

ANSTO – the Australian Nuclear Science and Technology Organisation – recently celebrated 70 years since Australia’s nuclear age began in Sydney.  ANSTO is the home of Australia’s most significant landmark and national infrastructure for research. Thousands of scientists from industry and academia benefit from gaining access to state-of-the-art instruments every year.

Thousands of visitors, including many schoolchildren, have safely toured the site at Lucas Heights, which is located 40km southwest of the Sydney CBD. They had the opportunity to learn a great deal about nuclear science as a result of that experience.

I recently became one of those visitors when I was invited to a 3-hour escorted tour of their facilities. As former Executive Director of the National Safety Council of Australia (NSW/ACT) I was particularly interested in their WHS procedures as well as the management of waste, as the latter could impact on the wider community if poorly managed.

What impressed me most was seeing just how advanced we are as a nuclear nation. Despite being relatively small in scale compared to a full civil nuclear energy plant, it has much the same range of issues and complexities to deal with. And it certainly appears to successfully do so at both their Sydney and Melbourne campuses.

The obvious question is, why is the Albanese Labor-Greens government, together with the Teals, opposed to extending our obvious expertise into producing nuclear energy on a commercial scale, as proposed by Opposition Leader Peter Dutton’s LNP?

As you’d expect, there are a number of reasons for both their reluctance to accept nuclear despite it being cheap, reliable and emissions-free and their manic obsession with unreliable, hugely expensive, and environmentally/socially disastrous wind, solar, and battery renewables.

Political factors play a major part. The Greens and Teals are
directly opposed to nuclear, but for different reasons.

The Greens have shown beyond doubt that they want to disrupt society across as many issues as possible. They are doing this on a regular basis – even appearing to stand with crowds that hold sympathies toward recognised terrorist groups.

People who think the Greens are still a well-meaning environmental group like they were under Bob Brown are fooling themselves – they are not!

In the case of the Teals, they started life as political entities via funding from Climate 200, whose primary financial supporters are deeply entrenched in the lucrative and heavily taxpayer-subsidised renewables industry.  The Teals are ignorant pawns in the high-stakes game of climate change and the hysterical pursuit of ‘saving the planet’.

There is a lot of money involved in this issue and ordinary Australians are being played by the so-called elites, including left-wing mainstream media such as the ABC.

A good example is the almost total lack of media reporting on the very recent and hugely important US Department of Energy’s Nuclear Lift-off Report that includes significant findings:

The system cost of electricity with nuclear and renewables combination is 30 per cent lower than just renewables.

The jobs from nuclear are 50 per cent higher paying than solar or wind.

⁠⁠Nuclear provides the lowest emissions, is the most reliable form of energy production, has the lowest land use requirement, and lowest material usage.

The report also outlines a pathway for the USA to reach their ambition to triple their nuclear energy capacity by 2050, in direct contradiction of our government’s refusal to even legalise nuclear energy.

It also directly contradicts the policy position of the Albanese government.  The report debunks repeated claims that nuclear is ‘too expensive’ and will ‘increase power bills’ and outlines various other benefits of nuclear energy.

The DoE report could not disagree more with Australian anti-nuclear campaigners and the Albanese Labor-Greens government, Teals, and other sources of ignorance.

Their report also completely debunks the much-criticised report produced by CSIRO GenCost that our Minister for Climate Change and Energy, Chris Bowen, refers to constantly as his renewables crusade ‘Bible’.   This is despite the fact that the CSIRO GenCost report totally failed to accurately estimate the likely total cost of renewables compared to nuclear.

It also used in its modelling a 30-year life for a nuclear plant instead of the far more accurate 80 years. This created a false financial outcome by not comparing the total cost of nuclear with renewables over an 80-year period.

It also totally neglected the fact that waste management costs for renewables will be many times greater than for nuclear. There will be the need to replace wind turbines and solar panels three or four times during an 80-year period.  And who is going to be responsible for dismantling and disposing of the millions of components – some of which have toxic ingredients?

Many people, including some of our top scientists and engineers, believe that the CSIRO GenCost report was simply designed to support the Albanese government’s narrative as depicted in their childish three-eyed fish media splash some months ago.

‘Reckless’: Labor’s nuclear memes ‘undermine AUKUS subs deal’ Labor MPs have been accused of undermining the AUKUS submarine deal with ‘reckless’ anti-nuclear propaganda, as the Coalition calls on Anthony Albanese to rule out a scare campaign. Source: The Courier Mail

We need a government that protects our borders, controls immigration, decreases our cost-of-living, and helps young people to buy their own homes.  It’s becoming clearer on a daily basis that none of that will happen under the current Labor-Greens government.

One major impediment to reducing living expenses is the rising cost of energy.  Renewables alone will continue to increase the cost of electricity and that will in turn increase the prices paid at our shops and for commercial or residential electricity usage.

Nuclear energy will add to the range of resources available to us – as it has done in many other countries. Nuclear power plants operate in 32 countries and generate about a tenth of the world’s electricity. Most are in Europe, North America, and East Asia. The United States is the largest producer of nuclear power, while France has the largest share of electricity generated by nuclear power, at about 70 per cent.

The only way we are going to catch up with the rest of the world in relation to nuclear energy production is to replace our current government with Peter Dutton’s Liberal-National Coalition.  That might be hard to accept for some people – but it’s an undeniable fact.

 

Investors Beware Green Equipment Companies

Posted on by Ron Clutz

Steve Goreham explains in his Heartland article Why Are Renewable Equipment Companies Such Poor Investments? Excerpts in italics with my bolds and added images.

Headlines promote renewable energy equipment companies as part of efforts to transition to Net Zero carbon dioxide emissions by 2050. Wind and solar system providers, electric vehicle manufacturers, green hydrogen producers, and other green equipment firms form a growing share of world industry. But renewable equipment firms suffer poor market returns, so investors should beware.

The Renewable Energy Industrial Index (RENIXX) is a global stock index of the 30 largest renewable energy industrial companies in the world by stock market capitalization. Current RENIXX companies include Enphase Energy, First Solar, Orsted, Plug Power, Tesla, and Vestas.

IWR of Germany established the RENIXX on May 1, 2006, with an initial value of 1,000 points. This month, the RENIXX stood at 1,013 points, essentially zero value growth over the last 18 years. In comparison, the S&P 500 Index more than quadrupled over the same period. The RENIXX is down three years in a row from 2021, losing about half its value.

Wind turbine manufacturers faced serious financial challenges over the last three years, even with rising sales. Rising costs, high interest rates, and project delays continue to impact the profitability of wind projects and equipment suppliers. The stock of Denmark-based Vestas Wind Systems, the world’s largest supplier, rose only 7% over the last 16 years, and its stock price has fallen 58% from a high in 2021. Vestas struggled to make a profit in 2022 and 2023 and suspended dividends to shareholders.

Other major wind suppliers have also been poor investments for shareholders. The stock of Siemens Gamesa, the number two turbine maker, is down 65% since a peak in 2021. Gamesa reported a loss of €4.4 billion in 2023 and received a €7.5 billion bailout from the German government that same year. Other top wind suppliers suffered major stock price declines since 2021, including Goldwind of China (down 77%) and Nordex of Germany (-36%).

Some 80% of the world’s solar panels are manufactured in China and the top six suppliers reside in China. The solar panel industry is beset by overcapacity and severe competition. Stock prices of the top seven suppliers have all declined by more than 50% since 2021. The stock of U.S. firm First Solar has risen since 2021 but remains below its all-time high price reached in 2008.

Tesla, which was founded in 2003, remained the only pure-play, publicly traded EV stock until 2018. By the end of 2021, Tesla’s value had soared to over $1 Trillion, boasting a market value more than Toyota, Volkswagen, Mercedes-Benz, General Motors, Ford, BMW, and Honda combined. But Tesla is the exception.

But in most cases, electric vehicle (EV) companies have been very poor investments. Between 2020 and 2024, 31 EV companies went public on U.S. stock exchanges. Only one of these 31 companies, the Chinese firm Li Auto, saw its price rise since the initial public offering (IPO). Thirty EV firms saw their stock prices fall, most precipitously.

EV company price declines from the IPO price include Fisker (-99%), Nikola (-94%), NIO (-50%), Lucid Group (-75%), and Rivian (-88%). Six others of the 31 companies went bankrupt. Tesla and Chinese firms BYD and Li Auto are the only EV firms profitable today.

ChargePoint is the world’s largest dedicated EV charger company (behind EV manufacturer Tesla), with over 25,000 charging stations in the U.S. and Canada. ChargePoint went public in 2021 by merging with Switchback Energy Acquisition Corporation, valued at $2.4 billion. The firm’s value today is about $585 million, down 76% since 2021.  For fiscal year 2024, ChargePoint lost $458 million on revenue of $507 million.

It’s not clear that any charging company can make money. High-speed, 50-kilowatt EV chargers cost about five times as much as traditional gasoline pumps. Around 80% of EV charging is done at home, reducing the demand for public charging. ChargePoint, EVgo, Wallbox, Allego, and Blink Charging are all valued today at small fractions of their original IPO price. No EV charger firm is profitable, even after continuing to receive large government subsidies.

Plug Power is a leading supplier of hydrogen energy systems, including battery-cells for hydrogen vehicles and electrolyzers to produce green hydrogen fuel. Founded in 1997, the company went public in October 1999 at a split-adjusted price of about $160 per share.

But during its 27-year history, Plug Power has never turned a profit. According to financial reports, the firm lost $1.45 billion in 2024, up from a loss of $43.8 million in 2018. Its current stock price is under two dollars per share.

Traditional established firms are finding that renewable equipment can be poor business. In 2023, Ford lost $4.7 billion on sales of 116,000 electric vehicles, or over $40,000 per vehicle. General Electric’s wind turbine business lost $1.1 billion in 2023.

The U.S. federal government provided subsidies to renewable equipment companies of between $7 billion and $16 billion per year between 2010 and 2022. But the Cato Institute estimates that because of the passage of the Inflation Reduction Act in 2022, subsidies will skyrocket to about $80 billion in fiscal year 2025.

EIA

Without the fear of human-caused climate change and
a rising level of government subsidies and mandates,
many of these green companies would not exist.

It’s doubtful that carbon dioxide pipelines, heavy electric trucks, offshore wind systems, green hydrogen fuel equipment, and EV charging stations would be viable businesses in unsubsidized capital markets.

During this last year, leading financial firms pulled back on their climate change pledges. Bank of America, JP Morgan, State Street, and Pimco withdrew from Climate Action 100+, which seeks to force companies and investment funds to address climate issues and adopt environmental, social, and governance (ESG) policies.

But it’s difficult to invest in renewable equipment companies
when they are losing money.

 

Wind Power Pollution and Hypocrisy in New England

Posted on by Ron Clutz

Emmett Hare reports in City Journal Wind Power Debacle in New England.  Excerpts in italics with my bolds and added images.

A fractured turbine’s blade in Nantucket is causing
ongoing problems and frustrating local residents.

In mid-July, a blade from an offshore wind turbine operating 15 miles southwest of Nantucket fractured. A large amount of fiberglass, foam, and plastic debris fell into the ocean and began washing up on the island’s shores. The incident led to the closure of several beaches and a suspension of operations and construction for the massive Vineyard Wind project, a joint venture of Avangrid and foreign-owned Copenhagen Infrastructure Partners that has installed and operated ten of 62 planned turbines in the country’s largest wind farm.

At local meetings, Nantucket residents expressed concerns about officials’ handling of the turbine breakage and the environmental hazards of enormous fiberglass blades tumbling into the sea. In the past, they have also cited the project’s impact on marine wildlife and its visual impact on the town’s scenic beaches. A CNN report describing this “unusual and rare” event noted that the Coast Guard had retrieved a 300-foot piece of the shattered blade from local waters. The outlet reported that a spokesperson for GE Vernova, the wind-blade manufacturer, “couldn’t provide officials with the precise number of times something similar has happened at other wind farms around the world.”

Environmental groups, realizing the potential political implications of the fractured blade, downplayed the episode. The National Wildlife Federation (NWF), which avidly supports offshore wind farms, insisted that the damage was minor. “Compared to other energy disasters in the ocean like oil spills, this incident is fairly contained and easily cleaned up to prioritize the safety of marine life,” said Amber Hewett, senior director of offshore wind energy for the NWF. The Sierra Club emphasized that “the failure of a single turbine blade does not adversely impact the emergence of offshore wind as a critical solution for reducing dependence on fossil fuels and addressing the climate crisis.”

Whether the incident is “contained” remains in question. Debris from the broken turbine has been reported beyond Nantucket—in Martha’s Vineyard, Cape Cod, Rhode Island, and off the coast of Montauk, Long Island. The debris is breaking up into smaller pieces resembling shattered glass, with yet-unknown effects on Nantucket’s marine habitat. Vineyard Wind cautioned that “[m]embers of the public should avoid handling debris” and promised to “bag, track, and transport all debris to proper storage as soon as possible.” It remains to be seen whether simple avoidance will suffice, especially given the possibility of debris entering the human food chain through area fish.

The Massachusetts Clean Energy Center (MassCEC) Wind Technology Testing Center in Boston has taken delivery of a 107-meter wind turbine blade designed for GE Renewable Energy’s Haliade-X offshore wind turbine.

While this event may be “unusual and rare” in an absolute sense, many wind farms have seen broken turbines, fires, and sea-floor damage. And Nantucket’s situation is particularly dire, given that Vineyard Wind’s turbines are by far the largest ever constructed in the United States: the blade that fragmented on July 13 was over 350 feet long and weighed 57 tons.

Even when functioning as intended, wind farms can negatively affect the surrounding environment. Wildlife advocates have claimed that sonic and subsonic vibrations from the construction and operation of turbines disrupt the navigational senses of marine mammals like whales and dolphins and can cause beachings. Turbines are also responsible for the deaths of countless birds. Clammers and fishermen are wary of working in areas close to wind farms, out of concern for equipment snags on buried power lines and risks to their vessels of navigating between the turbines in bad weather.

French Fishermen Join U.S. Fishermen in Fighting Offshore Wind – IER

The Nantucket residents questioning the safety of wind turbines generally support alternative energy. Indeed, in an FAQ post on the town government’s webpage, officials made the point that allowing wind projects to avoid scrutiny might allow traditional fossil fuel producers to evade similar oversight: “If [the Bureau of Ocean Energy Management] guts the provisions of these longstanding federal laws protecting culturally and environmentally significant places to facilitate expedient green energy projects, fossil fuel developers will exploit the bad precedent to undercut regulation of harmful projects for decades to come.”

Nonetheless, the Nantucket residents have seen themselves branded as tools of the fossil-fuel industry by well-financed lobbyists and promoters of richly subsidized wind power. They have also been subject to physical attacks. At a city council meeting in Newport, Rhode Island, a field director for Climate Jobs Rhode Island, David Booth, was charged with simple assault and disorderly conduct after accosting a speaker and seizing a bag of turbine fragments that she had brought for her testimony. Booth allegedly appeared prominently in a photo on the campaign website of Rhode Island senator Sheldon Whitehouse, which was subsequently removed without comment.

Debris in the water from Vineyard turbine blade

The wind-power industry has seen some of its planned projects cancelled in recent years due to swelling production costs and local opposition to the environmental and aesthetic impact of the colossal windmills. A report published by Brown University’s Climate and Development Lab in early 2024 suggested that much of the opposition to offshore wind was rooted in “misinformation,” “[c]onspiracy theories,” and cherry-picked information supplied by “right-wing think tanks.” It might prove beyond the powers of an academic paper to convince the residents of New England and coastal states that the fiberglass and foam washing up on their beaches is nothing more than a conservative talking point.

See Also:

The Short Lives of Wind Turbines

Energy Revolution Not In The Cards

Posted on by Ron Clutz

Kite & Key explains in above video Why the Odds Are Stacked Against Net Zero.  For those preferring to read I provide a text from the captions, though the video is entertaining along with great images, some of which are included with the text in italics with my bolds.

Overview

Are we at the beginning of the end of fossil fuels? That’s the theory advanced by an international coalition of politicians who aim to get us to net zero carbon emissions by the year 2050. Just one problem: Research from the experts in their own governments suggests it’s a nearly impossible task. Enthusiasts for net zero often say we’re on the cusp of an “energy revolution.”

And that theory has a big problem: Energy revolutions don’t happen — at least not in the way that politicians often describe. While it’s true that technological and economic factors sometimes change the energy mix — countries that get wealthier become less dependent on wood, for example — the broader trend in the history of the world’s energy consumption can be defined by three words: more, more, more.

In a power-hungry world, we keep adding new energy sources. But there’s rarely any subtraction. And, with global energy demand expected to increase by about 35% by 2050, it’s nearly impossible that we can get all the power we need from carbon-free sources. For instance, meeting the net zero goals would require the construction of over 9,000 nuclear plants by 2050. The number currently being built around the world? 59.

So, what will the future of energy really look like? Our video explores.

Transcription

It doesn’t happen that often. But every once in a while, a single generation witnesses a technological breakthrough that will change the world forever.
The printing press.
The beginning of human flight.
And, for our generation, an inevitable full scale revolution in clean energy…
…that’s running a little behind schedule…
…Ok, way behind schedule.

“The beginning of the end of the fossil fuel era.” That’s how the United Nations referred to the outcome of a 2023 climate change summit held in…the United Arab Emirates. Which is sort of like having the Prohibition Conference in Vegas. Nevertheless, delegates from throughout the world left the gathering having pledged that the world would transition away from fossil fuels and get the world to net zero carbon emissions by the year 2050.

Now, the rationale for this is clear enough. Leaders from around the globe are worried that without a shift over to carbon-free energy sources like wind, solar, hydro, and nuclear the world will face significant problems as a result of climate change.

But, regardless of why they’re doing this, the more important question is whether they can do it. Because here’s the thing about energy revolutions: they don’t happen. At least not in the way that the UN is imagining. To understand why, it’s worth looking at the history of the world’s energy consumption – which looks like this.

Go back a couple of centuries and the world basically ran on “traditional biomass”– -which is a fancy way of saying … wood. We burned a lot of wood and also … dung. Then in the mid 19th century, coal came into the picture in a big way. By the 20th century, we’re using tons of oil. And natural gas is a big factor too, especially as we cross into the 21st century, and fracking makes it both abundant and more affordable. As the years went by, we added low-carbon sources of energy as well, like nuclear, hydro, wind, and solar–though overall, they’re still a pretty small part of the picture.

Now, there are two important things to note about this chart. First, the history of the world’s energy consumption can be defined in three words: more, more, more. Which kind of makes sense. After all, pretty much everything that defines modern life involves a lot of energy. Between 1950 and 2022, for example, the population of the U.S. a little more than doubled. But in that same time period, our electricity use got 14 times larger.

And second, because of that “more and more, more” trend, the only things we’ve ever had that look like energy “revolutions” have been about adding new sources into the mix, not getting rid of existing ones as net zero goals propose.

Now, to be clear, that doesn’t mean that nothing ever changes. In wealthier nations, the rise of cheaper natural gas has led to less coal usage, especially in the U.S. And poorer countries usually abandoned traditional biomass as they get wealthier, because no advanced nation powers itself by burning wood. We use it for much more sophisticated purposes…like doing psychedelics in the Nevada desert.

But using a little less coal or wood or relatively modest changes–and importantly are driven by cold, hard economic facts. By contrast, what the net zero goals entail is replacing all of this … with this … in just about 25 years. Based on little more than the fact that politicians just want it to happen.

To understand just how tall a task this is, it’s worth looking at what it would require to make it a reality. It’s estimated that meeting net zero goals would require deploying 2000 new wind turbines…
…every day … for the next 25 years. To give you some context for that, the U.S. builds about 3000 new wind turbines…
…a year.

Alternately, you could open one new nuclear plant every day for the next 25 years. For the record, that’s over 9,000 of them. And, also for the record, as of 2023, the number that were actually being built across the entire world was … 59.  And here in the U.S. anyway, it generally takes over a decade to build them.

And those are some of the reasons why what politicians promise about net zero and what the experts in their own governments say…don’t exactly match up. The government’s U.S. Energy Information Administration, or EIA, projects that by the year 2050, far from seeing a revolution in energy, America will be a little less reliant on coal, a little more so on renewables…and the rest of the picture looks pretty much the same as today.

And in fact, this is true for the entire world. The EIA ran seven different scenarios for what the world’s energy consumption could look like in 2050, and while all of them showed a significant increase in renewables … they also all showed a world that continued to get most of its energy from things like coal, oil, and natural gas. Not exactly “the beginning of the end of the fossil fuel era.”

The reason for all of this: We simply can’t take enormous quantities of energy offline in a world where it’s predicted that we’re going to need almost 35% more of it by the year 2050. For one thing, there are a lot of poor countries around the world who are going to need dramatically more energy to bring themselves up to even a fraction of our standards of living.

And for another, the technologies of the future require vast amounts of power. By the year 2030, it’s estimated the computer usage around the world will take up as much as five times more of the world’s electricity production as it did even in 2020. The digital cloud we all use to store data already uses twice as much electricity as the entire nation of Japan. And with new energy-hungry technologies like AI on the way, things are only gonna move further in that direction.

Which means the real future of energy is probably: everything. Nuclear, natural gas, wind, and solar, oil, hydropower, coal. We’re going to need all of it. Probably not much wood though.
Except for these guys.

Scottish Wind Power from Diesel Generators

Posted on by Ron Clutz

John Gideon Hartnett writes at Spectator Australia Another climate myth busted  explaining how the Scottish public was scammed about their virtuous green wind power by the public authority.  Excerpts in italics with my bolds and added images from post by John Ray at his blog.

What I like to call ‘climate cult’ wind farms expose the myth that wind can replace hydrocarbon fuels for power generation. The following story is typical of the problems associated with using wind turbines to generate electricity in a cold environment.

Apparently, diesel-fuelled generators are being used to power some wind turbines as a way of de-icing them in cold weather, that is, to keep them rotating. Also, it appears that the wind turbines have been drawing electric power directly from the grid instead of supplying it to the grid.

Scotland’s wind turbines have been secretly using fossil fuels.

The revelation is now fueling environmental, health and safety concerns, especially since the diesel-generated turbines were running for up to six hours a day.

Scottish Power said the company was forced to hook up 71 windmills to the fossil fuel supply after a fault on its grid. The move was an attempt to keep the turbines warm and working during the cold month of December.

South Scotland Labor MSP Colin Smyth said regardless of the reasons, using diesel to deice faulty turbines is “environmental madness”.  Source: Straight Arrow News

Charging system for Teslas at Davos WEF meeting.

Nevertheless, those pushing these technologies are so blind to the physical realities of the world that they are prepared to ignore failures while pretending to efficiently generate electricity. I say ‘failures’ because wind energy was put out of service the day the Industrial Revolution was fired up (pun intended) with carbon-based fuels, from petroleum and coal. And in the case of modern wind turbines, they do not always generate electricity; they sometimes consume it from the grid.

Green energy needs the hydrocarbon-based fuel it claims to replace.

Hydrocarbon-based fuels were provided providentially by the Creator of this planet for our use. That includes coal, which has been demonised in the Western press as some sort of evil. But those who run that line must have forgotten to tell China, because they build two coal-fired power stations every other week. No other source of non-nuclear power is as reliable for baseload generation.

How will wind turbines work in a globally cooling climate as Earth heads into a grand solar minimum and temperatures plummet? This case from Scotland may give us a hint. As cloud cover increases with cooler weather, and more precipitation occurs, how will solar perform? It won’t.
The two worst choices for electricity generation in cold, wet, and stormy environments are solar and wind. Solar is obvious. No sun means no power generation. But you might think wind is a much better choice under those conditions.

However, wind turbine rotors have to be shut down if the wind becomes too strong and/or rapidly changes in strength. They are shut down when too much ice forms or when there is insufficient wind. And now we have learned in Scotland they just turn on the diesel generators when that happens or they draw power directly from the grid.

Where are all the real engineers? Were they fired?

In regards to wind turbines going forward, once their presence in the market has destroyed all the coal or natural gas electricity generators, how are they going to keep the rotors turning and the lights on?

These devices are based on a rotating shaft with a massive bearing, that suffers massive frictional forces. In this case, only a high-quality heavy-duty oil can lubricate this system and I am sure it would need to be regularly replaced.

Wind turbine gearbox accelerates blade rotor (left) up to 1800 rpm output to electical generator (right)

Massive amounts of carbon-based oil are needed for the lubrication of all gears and bearings in a wind turbine system, which is mechanical in its nature. In 2019, wind turbine applications were estimated to consume around 80 per cent of the total supply of synthetic lubricants. Synthetic lubricants are manufactured using chemically modified petroleum components rather than whole crude oil. These are used in the wind turbine gearboxes, generator bearings, and open gear systems such as pitch and yaw gears.

Now we also know that icing causes the rotors to stop turning so diesel power has to be used to keep the bearings warm during cold weather. The diesel generator is needed to get the blades turning on start-up to overcome the limiting friction of the bearing or when the speed of the rotor drops too low.

In this case in Scotland, 71 windmills on the farm were supplied with diesel power. Each windmill has its own diesel generator. Just think of that.

What about the manufacturing of these windmills?

The blades are made from tons of fibreglass. Manufacturing fibreglass requires the mining of silica sand, limestone, kaolin clay, dolomite, and other minerals, which requires diesel-driven machines. These minerals are melted in a furnace at high temperatures (around 1,400°C) to produce the glass. Where does that heat come from? Not solar or wind power, that is for sure. The resin in the fibreglass comes from alcohol or petroleum-based manufacturing processes.

The metal structure is made from steel that requires tons of coking coal (carbon) essential to make pig iron, which is made from iron ore in a blast furnace at temperatures up to 2,200°C. The coal and iron ore is mined from the ground with giant diesel-powered machines and trucks. The steel is made with pig iron and added carbon in another furnace powered by massive electric currents. Carbon is a critical element in steel making, as it reacts with iron to form the desired steel alloy. None of this comes from wind and solar power.

Wind turbine power generation is inherently intermittent and unreliable.
It can hardly called green as the wind turbines require enormous
amounts of hydrocarbons in their manufacture and continued operation.