future clean tech

green business, policy and technology in australia and abroad

Posts Tagged ‘energy

The Unavoidable Green Future

leave a comment »

Excellent article in today’s New Matilda – The Unavoidable Green Future (will open in new tab/window). It’s an interview of Ben McNeil, author of The Clean Industrial Revolution. Here’s my favourite bit:

“Right now we’re in the same position in Australia as GM was in the 1990s. We’re protecting high-carbon assets. We’re protecting coal, we’re protecting oil and we are looking at carbon price, a carbon cost in the future. There is no doubt that the world is going to value carbon, and that means higher carbon costs. So how the hell is coal going to survive in a world moving to low carbon? It’s not going to.”Coal Plant

McNeil points to research by Chris Reidy at the University of Technology Sydney which estimated a public subsidy of $9-10 billion on 2005-06 figures for the transport and electricity industries alone.

“When people say let’s do nothing, let’s just play that scenario out,” McNeil continues, “if we do nothing in terms of emissions, it’s essentially saying let’s rely on these old relics for our future prosperity in terms of economic growth. But Japan and the EU, who buy most of our coal, are de-carbonising their economies. Why would they be buying coal? They’ll be getting gas, they’ll be getting renewables, they’ll be getting more nuclear, they’ll be doing other things. So someone who says this will be devastating to our economy — it doesn’t make sense.”

But what about the argument, often voiced by the Opposition, that Australia should wait until the rest of the world puts a price on carbon before it acts?

“It’s funny. When someone says there is no current price for carbon they’re just living in la-la land. There’s a very strong shadow price for carbon right now, irrespective of the Government. Last year, 45 coal-fired power stations went off the books in terms of planning. They didn’t go off the books because of coal technology — we’ve had coal for a long time. They [were cancelled] because of the financiers, the Wall St bankers. They said ‘Actually, in a carbon constrained world, where you’ve got a 50-year asset, the carbon price could go from $20 a ton to $200 a ton within 10 or 20 years, so we’re talking about huge carbon liabilities here.'”

“These guys in the coal industry are just delusional, completely delusional.”

To read more, click here.

Written by Gabriel Sassoon

June 16, 2009 at 9:13 pm

Security boon from distributed power generation

leave a comment »

hackersA postscript to this post from a little while ago about distributed power generation: the press recently reported that foreign spies had compromised the security of the US electric grid.

Two things emerge from this. First, I would argue that any move toward decentralising power generation inevitably increases the security of the system. Wind turbines on city streets and solar cells on residential and business roofs will manifestly reduce the load on our presently centralised power generation infrastructure. There are a plethora of ways in which this power generation infrastructure can be radically decentralised, as I’ve previously touched on, which I think will impact positively on our energy security.

Secondly, the article suggests that smart grids, which are a clean technology, increase the risk in the system by opened up more nodes for malevolent actors to infiltrate. I want to qualify this suggestion. While it is certainly true for the current, centralised system that smart grids increase the security risks, it is probably far less true for a more decentralised system. At the present time, if the grid fails in any particular region, all power is lost. However, should we decouple each local council area, even partially, from the main grid – that is, should we reduce our local reliance on the power generated by distant energy generation stations – we reduce the risks that attach to smart grid technology.

It’s my belief that eventually, clean energy technology will allow us to build multiple redundancies into the system. For instance, if your local urban wind turbines run into trouble, backup energy generated by wind farms or other technologies will be available from a broader grid. And vice versa. If the grid goes down in your area, you may still be able to use locally- or individually-generated and stored power – and a smart system may be able to allocate that power on a priority basis until the main grid comes back online. Ultimately, then,  I see cleantech as a potent tool for increasing our energy security.

Written by Gabriel Sassoon

April 12, 2009 at 12:57 pm

When clean energy will kill coal

leave a comment »

windpowerToday I was discussing the future of hydrocarbons with a colleague whose family has been highly successful in the fossil fuel industry, and in addition to his skepticism on the anthropogenic nature of climate change, he raised the issue of cost. He was of the opinion that we will become steadily more, not less, addicted to oil, coal and gas in the medium- to long-term.

I disagreed strongly with him, and here’s why. Within a matter of seconds, I had him agreeing with me that vehicles are rapidly shifting from oil. We shared the belief that electric vehicles are the future. His objection? Where are we going to get the electricity from? And his definitive answer? Coal. And perhaps some nuclear.

Of course, if we’d had this conversation a mere decade ago, he would have laughed off the suggestion that our vehicles would run off batteries in a matter of a few years. The technology was unproven, expensive, heavy, and on and on. And yet, here we are in 2009, on the cusp of what is widely recognised as the next phase in vehicle production. The future, as they say, is now.

The same will be true of coal. Within the next few years, there will come a point when power generated by one or more renewable sources will be cheaper than coal-generated power. Ron Pernick and Clint Wilder have pointed out that this tipping point already occurred in Colorado after Hurricane Katrina caused natural gas prices to spike, and clean energy produced by wind power briefly became not just competitive with but in fact cheaper than hydrocarbon-derived power. Demand for the local green power program quickly outstripped supply that November in Denver and the rest of that state.

Of course, this was temporary, but it was a harbinger of things to come. Coal is cheap because it is an entrenched, old technology. It is financially “safe” and relatively plentiful. Wind happens to be the clean technology that has become most widespread and most cost-efficient – and as the technology improves and returns to scale increase, costs will dip even further. In the long-run, the same is likely to be the case for solar, tidal, geothermal, wave, and other renewables. And as soon as these technologies deliver energy more cheaply than dirty energy, the growth in takeup will be explosive.

This is the very reason why a price must be put on carbon today. Is pricing GHG emissions “artificial”? Perhaps. But it is simply a policy decision that must be taken to speed up the consumer uptake of clean energy. Rather than waiting for all smokers to die of lung cancer, we put a price on lung cancer by taxing cigarettes and funding public health with the revenue; rather than waiting for double-digit unemployment, we put a price on unemployment by taxing progressively and funding reskilling and work-finding programs; and now we will put a price on carbon to reverse the damage that dirty energy has hitherto caused. The reason in the short-term is that we must put a price on the externality of pollution and climate change, but in the long-term it is a no-brainer: burning fossils – literally – is a 19th century practice that will inevitably be replaced by clean energy.

It is my view that the tipping point will occur with or without what I regard as sufficiecoal_power_plantnt government intervention. The current ETS being considered by the Australian government doesn’t even begin to take the issue seriously. But even this scheme, the CPRS, will drive innovation, and the cost-efficiency of the technology will snowball, and we will rapidly come to the point where we view burning hydrocarbons to produce energy as quaint, if not downright barbaric. Like the mainstreaming of electric vehicles that is about to take place, renewable energy which is already competitively priced today will – inevitably – become cheaper than coal and extremely widespread.

As an aside, US Interior Secretary Ken Salazar today proclaimed that wind power off the East Coast could replace 3000 coal-fired power plants. This is just the very beginning of what is in store for clean energy over the next decade.

Written by Gabriel Sassoon

April 7, 2009 at 6:42 pm

Bleeding edge ideas for distributed power generation

leave a comment »

CleanTechnica posted a story yesterday about an MIT professor who argues that, even in the best case scenario, we will still be unable to meet our energy needs by 2050 using the centralised model of today. His solution, according to CleanTechnica:

Nocera said that MIT will announce its patent next week of a cheap, efficient, manufacturable electrolyzer made from cobalt and potassium phosphate. This technology, powered by a 6 meter by 5 meter photovoltaic array on the roof, is capable of powering an entire house’s power needs plus a fuel cell good for 500 km of travel, with just 5 liters of water.

Glass of water

The new electrolyzer works at room temperature (”It would work in this water glass right here”) to efficiently produce hydrogen and oxygen gases from water in a simple manner, which will enable a return to using sunlight for our primary energy source.

These sorts of technologies offer the hope for a kind of radical decentralisation of the power supply. It is also the sort of opportunity that is ripe for venture capitalist involvement (hence MIT’s patent announcement) because it does not require large-scale government funding and won’t face the kinds of bureaucracy that, say, building a new wind farm entails (development consent, NIMBY opposition, and so forth).


Urban wind power

Everybody is thinking about what the energy infrastructure of the future is going to look like. In the medium-term, we are going to see a partial decentralisation of the power supply alongside a significant increase in traditional, centralised renewable energy generation. While in the long-term (10-20 years from now) we will be aiming for fully renewable baseload power generation, in the medium-term baseload power will continue to be generated primarily, in Australia, by dirty coal. Nevertheless, while the broader transition to renewables gathers pace (a trend that I expect will result in not merely exponential but explosive displacement of fossil fuels with clean energy sources), it is entirely possible for peak power generation to be subsumed by, say, local councils using, say, urban wind turbines on main traffic arteries.

This week’s cleantech forum in Melbourne will be a welcome opportunity to hear where Australia’s cleantech industry sees the local energy sector going over the next few years. Watch this space.

Written by Gabriel Sassoon

March 29, 2009 at 10:35 am