You Can Drown in a Lake Whose Average Depth is 6 Inches

Where electrical power is concerned, it seems quite difficult for many people to grasp the importance of peak versus average demand and of  peak versus average supply.

A letter in today’s WSJ argues in favor of solar power, noting that “unlike large generation plants, enormous wind turbines and especially nuclear reactors, all of which require years of planning, personal and small industrial solar installations can be planned and installed in a month or so”  The writer says that utilities are seeing these installations diminish their income, and hence “understandably are fighting back by charging not just for electricity, but separately for connection to the grid.”  He argues that as utilities raise their connection charges to compensate for the newly disconnected, more and more people will think that utility power is a bad deal and will disconnect totally, which will “ultimately result in electric utilities holding sway only in urban or perpetually cloudy areas.”

What happens with solar will be largely dependent on the future improvements in battery or other energy storage technologies, but I think it is most unlikely that most people will be comfortable disconnecting from the grid totally.  With any economically-reasonable level of local storage, a run of bad weather is likely to result in running out of power totally, with very uncomfortable consequences.

What most people who invest heavily in solar are likely to do, IMO, is to maintain a backup grid connection for those exceptional cases.  The problem is that the exceptional conditions will occur for thousands of households and other sites at the same time over a broad area…requiring the utility’s generation and transmission facilities to be sized for these exceptional conditions, with capital expenditures made accordingly.

Continuing financial viability of the utilities will require these costs to be recovered, either via a connection fee (“readiness-to-serve charge”) or a very high kwh charge for these infrequent and difficult-to-handle customers.  But the solar people will argue vehemently against these charges, asserting that they represent nothing more than corporate greed and hostility to new technology, and are likely to gain considerable political support.

In this scenario, in those areas with substantial distributed solar power, the utilities will be driven into financial distress or will have to raise rates considerably on their non-solar customers…which in turn will encourage more people to invest in solar, but will create great economic pain from those people and businesses who cannot do this, and eventually result in the costs of the entire vast grid infrastructure and its maintenance being allocated against an ever-declining base.  This seems unlikely to end well.

Risk: An Allegory

Here’s an interesting article on CNBC’s website: Katrina anniversary: Will New Orleans levees hold next time?

The 100-year threshold is also a statistical guess based on data on past storms and assessments of whether they’ll occur in the future. That means the models change every time a new hurricane strikes. The numbers being used as guidelines for construction are changing as time passes.
 
The standard also does not mean—can’t possibly mean—that a 100-year storm will occur only once per century. It means that such a storm has a 1 percent chance of happening in any given year. So for example, it’s technically possible for several 100-year floods to occur in just a few years, although it’s highly unlikely.

One way to look at it is that the engineers need to estimate how high a wall New Orleans needs to protect itself against a reasonably unlikely flood — say, a 1-in-1000-year event. This is the line of discussion pursued in the CNBC article.

Another way to look at it is to observe that the odds of another Katrina, or worse, within a specified period are highly uncertain. In this case a radical course of action might be called for. You do something like: take the best estimate for the wall height needed to protect against a 1000-year flood and then double it. Building such a levee would probably be extremely expensive but at least the costs would be out in the open. Or you might decide that it’s not the best idea to have a coastal city that’s below sea level, and so you would discourage people from moving back to New Orleans, rather than encourage them by subsidizing a new and stronger system of walls.

In this kind of situation the political incentives are usually going to encourage public decisionmakers to ignore radical solutions with high obvious costs, in favor of the minimum acceptable incremental solution with hidden costs: probably subsidies to rebuild the levees to, or perhaps a bit beyond, the standard needed to protect the city in the event of another Katrina. And it’s unlikely that any local pol is going to advise residents to move out and depopulate his constituency. Thus, eventually, a worst case will probably happen again.

Was Ethan Allen a wing nut?

First Bernie Sanders, now this:

Now that Vermont has a mandate to get 75 percent of its electricity from renewable energy sources by 2032, residents will have to ditch automobiles and embrace a whole new way of life, the state’s top renewable energy CEO says.
 
“We’re probably going to have to abandon the car,” David Blittersdorf, president of All Earth Renewables, told Addison County Democrats in a recent presentation titled “Vermont’s Renewable Energy Future.
 
“The idea that we’re going to be flying around in airplanes — it’s one of the worst consumers of energy and emitting carbon. … I tell my kids … if you’re going to travel, travel now. Don’t wait 50 years. It’s going to cost you 10 times as much for every one of those flights.”

It’s as though Julian Stanley never lived.

Our Disastrous Energy Policy, Continued

New Clean Air Act regulations have recently been proposed by the EPA.

President Obama will unveil on Monday a set of environmental regulations devised to sharply cut planet-warming greenhouse gas emissions from the nation’s power plants and ultimately transform America’s electricity industry. The rules are the final, tougher versions of proposed regulations that the Environmental Protection Agency announced in 2012 and 2014. If they withstand the expected legal challenges, the regulations will set in motion sweeping policy changes that could shut down hundreds of coal-fired power plants, freeze construction of new coal plants and create a boom in the production of wind and solar power and other renewable energy sources.

What is interesting is that the EPA recently had their ever-expanding mandate struck down by the Supreme court just a few short weeks ago, when their attempt to kill off coal through regulation of mercury and other pollutants was invalidated for not sufficiently weighing the cost of the proposed initiative.

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Quote of the Day

From the newsletter of a condominium association in Washington, DC:

No-Smoking Policy
 
Please remember – no smoking in common areas (hallways, stairways, parking areas, walkways, and recreational areas). Smoking is permitted only on sidewalks bordering city streets.