Britain’s fleet of onshore and offshore wind turbines met 22% of electricity demand on Sunday, setting a new record and outperforming coal, which met just 13% of demand.
Across the Channel, Spain has reported high levels of summer clean energy output with over 55% of electricity generation coming from zero emission sources during July. And Germany has announced that it generated more than a third of its energy from renewable sources in the first half of this year, while energy from fossil fuel plants – gas and coal – declined.
“Wind has become an absolutely fundamental component in this country’s energy mix,” RenewableUK Director of External Affairs Jennifer Webber said today in an e-mailed statement. “Wind is a dependable and reliable source of power in every month of year including high summer.” — Bloomberg
These figures are the latest clear signals that renewables are increasingly stealing the limelight from outdated fossil fuels. Earlier this year, onshore wind was revealed as the cheapest form of new electricity generation in Denmark and wind met over half of the country’s power demand last December. Renewable energy is also becoming cost competitive elsewhere with solar power reaching grid parity in Italy, Spain and Germany. This trend clearly indicates to European getting ready to agree a climate and energy framework to 2030 that the transition from fossil fuels to renewables is happening and here to stay. For more on this story click here.
Wind to power 50% of Denmark’s demand by 2020
While other countries debate whether to install wind turbines offshore or in remote areas, Denmark is building them right in its capital. Three windmills were recently inaugurated in a Copenhagen neighbourhood, and the city plans to add another 97.
“We’ve made a very ambitious commitment to make Copenhagen CO2-neutral by 2025,” Frank Jensen, the mayor, says. “But going green isn’t only a good thing. It’s a must.”
The city’s carbon-neutral plan, passed two years ago, will make Copenhagen the world’s first zero-carbon capital. With wind power making up 33% of Denmark’s energy supply, the country already features plenty of wind turbines.
Indeed, among the first sights greeting airborne visitors during the descent to Copenhagen’s Kastrup airport is a string of sea-based wind towers. By 2020, the windswept country plans to get 50% of its energy from wind power. — For more on this story visit Newsweek
Siemens receives Norwegian order for 67 wind turbines
Siemens has announced that it has received an order from Norwegian energy utilities Statoil and Statkraft for 67 wind turbines for the Dudgeon Offshore Wind Farm in the UK. The news comes just days after the UK installed their first 6 MW wind turbine at the burgeoning Westermost Rough offshore wind farm in the North Sea. Siemens will manufacture, deliver, install, and commission 67 of its direct-drive 6 MW wind turbines, each of which has a mammoth 154 meter rotor.
“We are proud to convince more and more customers about the advantages of our 6-megawatts-offshore machine”, said Dr. Markus Tacke, CEO of the Wind Power Division of Siemens Energy. “With Dudgeon we extend our project pipeline for this new turbine. This gives us the opportunity to further ramp up production capacity, which is a precondition to bring down the costs for offshore wind.”
The Dudgeon Offshore Wind Farm will begin construction in early 2017, and upon completion is expected to provide electricity to more than 410,000 UK households. For more on this story, head over to CleanTechnica
Vestas reports healthy profits and order for 32 – 8MW Wind Turbines
One of the world’s largest wind energy manufacturers, Vestas Wind, reported healthy second quarter earnings for 2014, and is now waiting on DONG Energy’s final investment in a UK offshore wind project which would require the Vestas 8 MW turbines. Vestas reported a strong turnaround from their second quarter earnings a year previously with a 13% increase to €1.34 billion. The company reported a net profit in the second quarter of €94 million ($125 million), compared to a €62 loss a year earlier
The news came just a day before Vestas confirmed that they had entered into a conditional agreement with DONG Energy for the upcoming Burbo Bank Extension in Liverpool Bay off northwest England. Vestas would provide 32 8 MW V164 turbines for the extension project, and are awaiting DONG Energy’s commitment to the project before the deal is sealed.
“Larger and more cost-efficient wind turbines are key elements in the realization of Dong Energy’s strategy towards reducing the cost of electricity from offshore wind,” said Samuel Leupold, an executive vice president at Dong. “Competition among the offshore wind turbine manufacturers will increase.”
Offshore construction of the Extension is expected to begin in 2016, and upon completion it is expected the project will be able to provide electricity for more than 230,000 UK homes. — Bloomberg
Nuclear reactors are starting to shut down in Europe
It began in earnest in the wake of the Fukushima disaster when Germany inspected its problem-plagued nuclear power plants and decided to take 9 of its nuclear power plants offline in 2011 and the rest offline by 2022.
There is plenty of public support in the country for Germany’s planned nuclear closures, even with the additional fee added to each German electricity bill to pay for nuclear power plant decommissioning, which completes in 2045.
Switzerland likewise has decided to get out of the nuclear power business beginning in 2015 and decommission their nuclear power plants by 2045.
Other European nations are also looking at retiring their nuclear power plants. But the news today is about the UK, Belgium, Germany and Spain.
In the UK, four (French-operated) EDF reactors built in 1983 have been shut down after one of them was found to have a crack in its centre spine. (EDF stands for Electricity de France which is a French utility responsible for managing many nuclear reactors)
At first only the affected unit was taken offline (in June) but upon further inspection it was determined that the other three were at risk to fail in the coming months. Whether or not these four reactors can be repaired economically — all were scheduled to be decommissioned before 2020.
The sudden shortfall in electrical generation due to these unscheduled nuclear power plant shutdowns has been met by 5 GW of new wind power generation, which has seamlessly stepped in to fill demand.
Additional to that, another 5 GW of solar power has been added to the UK grid within the past 5 years. And that’s in cloudy olde England, mates!
In Belgium, 3 out of 5 of their nuclear power plants are offline until December 31, 2014 due to maintenance, sabotage, or terror attacks — depending upon whom you talk to.
Belgium’s Doel 4 reactor experienced a deliberate malfunction last week and workers in the country’s n-plants are henceforth directed to move around inside the plants in pairs.
Further, the utility has advised citizens that hour-long blackouts will commence in October due to a combination of unexpected n-plant shutdowns and higher demand at that time of year.
Belgian energy company Electrabel said its Doel 4 nuclear reactor would stay offline at least until the end of this year after major damage to its turbine, with the cause confirmed as sabotage.
Doel 4 is the youngest of four reactors at the Doel nuclear plant, 20 km north of Antwerp, Belgium’s second-biggest city. The country has three more reactors in Tihange, 25 km southwest of the city of Liege.
Doel 1 and 2, which came on line in 1975, are set to close in 2015. Tihange 1, which also started operation in 1975 and was designed to last 30 years, got a 10-year extension till 2015.
The two closed reactors Doel 3 and Tihange 2 were connected to the grid in 1982 and 1983. Doel 4 and Tihange 3, which came on line in 1985, were operating normally until the closure of Doel 4 last week.
The shutdown of Doel 4’s nearly 1 gigawatt (GW) of electricity generating capacity as well as closures of two other reactors (Doel 3 and Tihange 2) for months because of cracks in steel reactor casings adds up to just over 3 GW of Belgian nuclear capacity that is offline, more than half of the total.
In Britain, EDF Energy, owned by France’s EDF, took three of its nuclear reactors offline for inspection on Monday after finding a defect in a reactor of a similar design. – Reuters
In Germany, the nuclear power generation capacity missing since 2011 has been met by a combination of solar, wind, bio, natural gas, and unfortunately some coal. But that sounds worse than it is.
According to the Fraunhofer Institute, renewable energy produced about 81 TWh, or 31% of the nation’s electricity during the first half of 2014. Solar production is up 28%, wind 19% and biomass 7% over last year.
Meanwhile, with the exception of nuclear energy, all conventional sources are producing less. The output from gas powered plants was half of what it had been in 2010 and brown coal powered plants are producing at a similar level to 2010-2012. – CleanTechnica.com
Let’s see what our friends at the Fraunhofer Institute have to say in their comparison of the first half of 2013 vs. the first half of 2014.
Although unspokenby power company executives operating in Germany, Spain, and some other European countries, the panic felt by traditional power generators is due to the massive changes in ‘their’ market since 2009.
Things move slowly in the utility industry — ten years is seen as a mere eyeblink in time, as the industry changes very little decade over decade. Recent changes must be mind-blowing for European power company executives.
European-union-renewables by Eurostat — Renewable energy statistics. Licensed under Public domain via Wikimedia Commons Keep in mind that this map displays results from 2012. The 2014 map will show significantly more ‘green’ energy, once that map becomes available in 2015.
It occurs to me that the end of the conventional energy stranglehold on Europe parallels the ending of Star Wars VI.
Help me take this mask off
It’s a mask to hide behind when conventional power producers don’t want the facts aired.
Fossil fuel and nuclear power generation have had (and continue to have) huge subsidy regimes in place which they don’t want publicly advertised — and they don’t want renewable energy power producers to have any subsidies. And conventional power producers don’t want fossil fuel externalities and nuclear power externalities advertised either. That’s a lot of hiding, right there.
Externalities are simply another form of subsidy to fossil fuel and nuclear power plant operators and their fuel supply chains, which usually take the form of additional public healthcare spending or environmental spending that is required to mitigate toxic airborne emissions, oil spills, etc.
Spain has ended it’s Feed-in-Tariff scheme for renewable energy, while keeping conventional power producer subsidies in place.
Not only that, suddenly homeowners aren’t allowed to collect power from the Sun or harvest power from the wind unless it is for their own use. Electricity cannot be collected by Spanish residents and then sold to the grid for example, nor to anyone else.
While all of this has been going on, Spain and Portugal have quietly lowered their combined CO2 output by 21.3% (equal to 61.4 million fewer tonnes of CO2 emitted) since 2012, thanks to renewable energy.
But you’ll die
Not only has European renewable energy now stepped up to fill the voids due to nuclear power plant maintenance and sabotage shutdowns, it has scooped incredible market share from conventional power producers.
In January 2014, 91% of the monthly needed Portuguese electricity consumption was generated by renewable sources, although the real figure stands at 78%, as 14% was exported. – Wikipedia
Unwittingly, the German and Spanish power companies have provided the highest possible compliment to the renewable energy industry, and if publicized, it would read something like this;
“We can’t compete with renewable energy that has equal amounts of subsidy. Therefore, remove the renewable energy subsidy while we keep ‘our’ traditional subsidies, until we can reorient our business model – otherwise, we perish!”
Nothing can stop that now
Ending the European renewable energy Feed-in-Tariff schemes will only temporarily slow solar and wind installations as both have reached price-parity in recent months — against still-subsidized conventional power generators.
Even bigger changes are coming to the European electricity grid over the next few years. Nothing can stop that now.
Tell your sister; You were right about me
Conventional power producers in Europe provided secure and reliable power for decades, it was what powered the European postwar success story, but having the electricity grid all to themselves for decades meant that Europe’s utilities became set in their ways and although powerful, were not able to adapt quickly enough to a new kind of energy with zero toxicity and lower per unit cost.
Renewable energy, at first unguided and inexperienced, quickly found a role for itself and is now able to stand on its own feet without subsidies — unlike conventional power generators.
Considering the sheer scale of the energy changes underway in Europe, conventional energy has been superceded by a superior kind of energy and with surprisingly little drama.
President Obama’s famous All of the Above energy policy released during his first term and perfected in his second term seems to have gained some attention and perhaps some followers around the world. The latest is Japan, which has decided to embrace more and different types of energy to replace the lost nuclear power capacity since the Fukushima incident.
Prior to the earthquake and tsunami of March 4th, 2011, Japan received 29% of its electricity from its nuclear reactor fleet. Subsequently, many of the country’s 54 nuclear power plants were shut down for inspection and stress testing, and some have been scheduled for complete decommissioning at a total cost of well over $100 billion dollars, but possibly approaching $1 trillion dollars over 50 years if the damaged reactors at the Fukushima-Daiichi nuclear power plant begin acting up and leaking even more than they have. Which could happen.
With almost 30% of their electricity production permanently unavailable or temporarily offline, the ever-industrious Japanese are looking to a better energy policy — one that will not leave them dependent on foreign politics, international trade disputes or shortages. Energy cost is a primary concern.
The good news is that Japan hopes to hit 20% of total electricity demand with renewable energy by 2030.
Japan’s energy choices include solar
Extensive research into solar utility-scale installations and rooftop solar for residential use in Japan have netted some amazing results. Japan ranks fourth among the nations with the most amount of solar capacity installed and continues a massive solar installation campaign. Some 10 Gigawatts of solar are being added to Japan’s grid this year.
Some farmers in Japan are finding that they can make more money with much less toil by turning their rice paddies into solar farms. In other cases, huge blocks of solar panels are mounted on floating pontoons in sheltered bays and lakes.
Wind energy in Japan
Wind energy is making strides in Japan and the future of that is under discussion. However, Japan feels a need to protect its tourism industry and does not want monstrous turbines cluttering up shoreline tourist areas. Nevertheless, the country is forging ahead with plans for the largest offshore wind farm on the planet in non-tourist regions of the country.
Japan has sent ships to the Arctic ocean in recent years to mine methane hydrate crystals that line the sea floor for hundreds of miles in all directions. It turns out that just off Japan’s coast there is a gold mine of methane “ice” also known as clathrate (more specifically, clathrate hydrate) just sitting there waiting to be picked up. In fact, some successful prototype operations have been reliably producing power in Japan, using only locally-mined clathrate.
It is a clean burning fuel, as methane clathrate hydrate composition is (CH4)4(H2O)23, or 1 mole of methane for every 5.75 moles of water, corresponding to 13.4% methane by weight. There is nothing else to it. No sulfur, no nitrogen, no trace contaminants. Pure fuel mixed with water ice.
“Japan hopes that the test extraction is just the first step in an effort aimed at bringing the fuel into commercial production within the next six years. That’s a far faster timetable than most researchers have foreseen, even though there is wide agreement that the methane hydrates buried beneath the seafloor on continental shelves and under the Arctic permafrost are likely the world’s largest store of carbon-based fuel. The figure often cited, 700,000 trillion cubic feet of methane trapped in hydrates, is a staggering sum that would exceed the energy content of all oil, coal, and other natural gas reserves known on Earth.” – National Geographic
Hydrogen fuel for electrical power production and for vehicles
As a clean burning fuel, hydrogen shows great promise. The only catch with this fuel are the costs associated with splitting ocean water into its constituent molecules, which, after you filter out the salt and any contaminants is; 1 hydrogen atom + 2 oxygen atoms = 1 molecule of water. Using electrolysis to convert vast quantities of water into hydrogen takes a huge amount of electricity, which is fine if it can be had cheaply enough. With the advent of solar power gird-parity, hydrogen production suddenly looks attractive at a large scale.
“Now that Toyota Motor says it will release mass-production fuel-cell vehicles powered by hydrogen, Japan has set an even bigger goal of making hydrogen a main energy source for the nation’s electric utilities. The nation’s first “hydrogen energy white paper,” released Monday, calls on the country to become a “hydrogen economy” by adopting the fuel for utility power generation. The paper was produced by the government-affiliated New Energy and Industrial Technology Development Organization.” – Wall Street Journal
We are at a unique period of human history where doors that were once solidly closed are now opening. Our energy future will be more diverse and cleaner for those nations and corporations that are open-minded enough to see the possibilities of clean and renewable energy.
Although there have been some failures in the business of renewable energy (as in any new field of endeavor) things renewable energy are starting to gain traction and acceptance not only by the public, but by policymakers around the world.
Japan, after initially reeling from the tsunami and Fukushima incident, has profoundly embraced solar and wind power and experimented with the promising tidal energy technology and has advanced clean burning energy solutions such as undersea methane hydrates and hydrogen fuel.
Certainly, fossil fuels have their place and they will be with us for some time to come. However, rather than tying ourselves to One Big Energy source (fossil fuels) an All of the Above approach may turn out to be the best, long-term solution after all.
On the Variability of Renewable Energy; The ongoing argument about renewable energy additions to national electrical grids.
Some people argue that solar photovoltaic (solar panels) produce ‘variable’ electricity flows — and they assume that makes solar unsuitable for use in our modern electric grid system.
And it’s true, the Sun doesn’t shine at night. Also, if you are discussing only one solar panel installation in one farmer’s field, then yes, there is the variability of intermittent cloud cover which may temporarily lower the output of that particular solar installation.
But when grid-connected solar arrays are installed over vast areas in a large state like Texas, or throughout the Northeastern U.S.A. for example, it all balances out and no one goes without power as solar panels produce prodigious amounts of electricity during the high-demand daytime hours. If it’s cloudy in one location thereby lowering solar panel outputs, then it is sunny in 100 other solar locations within that large state or region of the country.
So, solar ‘variability’ disappears with many widely scattered installations and interconnection with the grid. So much for that accusation.
NOTE: The marginal ranking for solar is (0) and that ranking never varies. (More on this later)
The situation with wind power is essentially the same, One major difference though; In many parts of the world the wind tends to blow at its most constant rate at night, which helps to add power to the grid while the Sun is asleep.
In fact, complementary installations of solar and wind help to balance each other through the day/night cycle — and through the changing seasons. There is even an optimum solar panel capacity to wind turbine capacity installation ratio, but I won’t bore you with it.
NOTE: The marginal ranking for wind is (0) and that ranking never varies.
Natural Gas Variability
What? Natural gas is not variable!
Oh really? Over the course of the past 60 years, how has the natural gas price per gigajoule changed? Got you there! The natural gas price has increased by orders of magnitude and wild price fluctuations are quite common.
OK, that’s not ‘output variability’ but it is a variable factor with regard to energy pricing. And that’s a variable that actually matters to consumers.
Natural gas prices have swung wildly over the years forcing utilities to peg their rates to the highest expected natural gas rate. No wonder investors love natural gas!
So there is ‘supply variability’ and ‘rate variability’ with natural gas, which is why it is often the last choice for utility companies trying to meet daily demand. Gas is a good but expensive option and it comes with its own variability baggage.
We won’t even talk about the associated CO2 cost to the environment. (OK, it’s about $40 per tonne of CO2 emitted)
Not to the same degree as natural gas, but coal also faces price swings and potential supply disruptions — again forcing utility companies to set their rates against unforeseeable labour strikes at a mine, a railway, or shipping line — and against coal mine accidents that can shut down a mine for weeks, or against market-generated price spikes.
These things are impossible to foresee, so this ‘averaging up’ of the price results in higher energy bills for consumers and better returns for investors.
Yes, there is variability in coal supply, coal supply lines, coal power plant maintenance cycles which can have a plant offline for weeks, and market pricing. These things can affect total annual output, yet another kind of ‘variability’. (Again, that doesn’t factor-in the other costs to society such as increased healthcare costs from burning coal which releases tonnes of airborne heavy metals, soot, and nasty pollutants besides CO2 — which some estimates put at $40-60 per tonne emitted — in addition to the environmental cost of $40 per tonne of CO2 emitted)
NOTE: Should we talk here about how much water coal plants use every year? More than all the other energy producers put together, and then some!
Hydro power variability
What? Hydro power is not variable!
Oh yes it is. Nowadays, many hydro dams in the U.S. can barely keep water in the reservoir from August through November. They cannot produce their full rated power in a drought, they cannot produce their full rated power in late summer, they often cannot produce power during maintenance, or during earthquake swarms. Just sayin’ hi California!
An impressive body of water behind the dam is meaningless when the water level isn’t high enough to ‘spill over the dam’. If the water level isn’t high enough to spin the turbines then all that water is just for show. Take a picture!
“In 1984, the Hoover Dam on the Colorado River generated enough power on its own to provide electricity for 700,000 homes because the water level of Lake Mead behind the dam was at its highest point on record. But since 1999, water levels have dropped significantly, and Hoover Dam produces electricity for only about 350,000 homes.” — CleanTechnica
And then there is this problem; Global warming and its resultant drought conditions mean that some dams are essentially ‘finished’ as power producing dams for the foreseeable future.
Again, we have output variability; But this time it is; 1) lower power output due to reduced reservoir levels caused by anthropogenic drought and 2) the time of yearthat hydro dams cannot produce their full rated power.
Price variability: This is what Merit Order ranking is about
Merit Order ranking is a system used by most electric utilities to allow different types of electrical power plants to add power to the electric grid in real time. Thanks to a computerized grid, this occurs on a minute-by-minute basis every day of the year.
In the German example, electricity rates drop by up to 40% during the hours in which solar or wind are active, and this is what Merit Order ranking is all about; Using the cheapest available electricity source FIRST — and then filling the gaps with more expensive electrical power generation.
Solar and wind electricity are rated at (0) on the Merit Order scale making them the default choice for utility companies when the Sun is shining, or the wind is blowing, or both.
Why? No fuel cost. That’s the difference. And bonus, no environmental or healthcare costs with solar and wind either.
Once all of the available solar and wind Merit Order ranking (0) capacity is brought online by the utility company, then (1) nuclear, (2) coal, and (3) natural gas (in that order) are brought online, as required to match demand, according to the marginal cost of each type of energy. (German Merit Order rankings)
NOTE: In the U.S. the normal Merit Order rankings are; (0) solar and wind, (1) coal, (2) nuclear, and (3) natural gas, although this can change in some parts of the United States. Merit Order is based on cost per kWh and different regions of the country have different fuel costs.
(The one cost that is never factored-in to the kWh price is the cost of disposal for nuclear ‘spent fuel’ and for good reason, but that’s a discussion for a different day)
The Fraunhofer Institute found – as far back as 2007 – that as a result of the Merit Order ranking system – solar power had reduced the price of electricity on the EPEX exchange by 10 percent on the average, with reductions peaking at up to 40 percent in the early afternoon when the most solar power is generated.
Here’s how the Merit Order works.
All available sources of electrical generation are ranked by their marginal costs, from cheapest to most expensive, with the cheapest having the most merit.
The marginal cost is the cost of producing one additional unit of electricity. Electricity sources with a higher fuel cost have a higher marginal cost. If one unit of fuel costs $X, 2 units will cost $X times 2. This ranking is called the order of merit of each source, or the Merit Order.
Using Merit Order to decide means the source with the lowest marginal cost must be used first when there is a need to add more power to the grid – like during sunny afternoon peak hours.
Using the lowest marginal costs first was designed so that cheaper fuels were used first to save consumers money. In the German market, this was nuclear, then coal, then natural gas.
But 2 hours of sunshine cost no more than 1 of sunshine: therefore it has a lower marginal cost than coal – or any source with any fuel cost whatsoever.
So, under the Merit Order ranking of relative marginal costs, devised before there was this much fuel-free energy available on the grid, solar always has the lowest marginal cost during these peaks because two units of solar is no more expensive than one. – Susan Kraemer
It’s as simple as this; With no fuel cost, solar and wind cost less. Although solar and wind are expensive to construct initially (but not as expensive as large hydro-electric dams or large nuclear power plants!) there are no ongoing fuel costs, nor fuel transportation costs, nor fuel supply disruptions, nor lack of rainfalls, to factor into the final retail electricity price.
As solar panel and wind turbine prices continue to drop thereby encouraging more solar and wind installations, we will hear more about Merit Order ranking and less about variability. And that’s as it should be, as all types of grid energy face at least one variability or another.
Only solar, wind, hydro-electric, and nuclear have a predictable kWh price every day of the year. Coal, natural gas, and bunker fuel, do not. And that’s everything in the energy business.
Although utility companies were slower than consumers to embrace renewable energy, many are now seeing potential benefits for their business and henceforth things will begin to change. So we can say goodbye to the chatter about the Variability of Renewable Energy and utility companies can say goodbye fuel-related price spikes.
Buckle up, because big changes are coming to the existing utility model that will benefit consumers and the environment alike.
India’s newly-elected Prime Minister, Narendra Modi says 400 million Indian citizens presently living without electrical service in rural areas of the country will have electricity within five years via upcoming, massive investments in solar power.
Not only that, but the country’s various electrical grids (which are not necessarily connected to each other, nor to the main national grid) will benefit significantly from thousands of distributed solar installations by adding to overall capacity and helping to stabilize weaker parts of the infrastructure.
PM-elect Modi sees no reason why each rooftop in the country cannot install a number of solar panels. Indeed, when millions of rooftops are involved with an average of 10 panels per rooftop (for example), and plenty of land that is unsuitable for growing crops and entire canal systems are already covered with solar panels, you know big numbers are coming.
So, what could India do with 1 billion solar panels?
For starters, every home and business in the country could have reliable (daytime) electricity. Many towns and villages in remote areas would have electrical power for the first time in their history, thereby allowing them entry into the world’s knowledge-based economy. With the advent of electricity, education and commerce should flourish and easy access to online government services will offer significant benefit to many millions of India’s citizens.
And for locations with home-battery backup or diesel-backup power, 24-hour-per-day electricity will become the norm. Employment and productivity in these regions could be expected to rise dramatically and online medical advice could be a lifesaver for those who live in remote areas. All of these are good things to have in a rapidly developing nation.
Then there is the possibility of electrical power sales between electrical power producers and energy consumers of all sizes, whether neighbour-to-neighbour or direct-to-utility, along the projected pathways of the constantly evolving grid system. Finally, (daytime) surplus electricity sales to neighbouring countries like Bangladesh, Pakistan, Nepal and Bhutan might become commonplace and profitable.
Mr. Modi is taking on an unparalleled task, fraught with challenges. Here is a comment on the present state of affairs in India as it relates to the proposed rural electrification of the country.
Four hundred million Indians, more than the population of the United States and Canada combined, lack electricity. An official of India’s newly elected Prime Minister, Narendra Modi, recently said that his government wants every home to be able to run at least one light bulb by 2019. Administrations have made similar claims numerous times since India gained independence in 1947, but this time renewable power sources could bring the longstanding promise closer to a realistic vision.
In a sprawling, diverse country of more than 1.2 billion residents this task is tantamount to a second green revolution, the first being agricultural advances that relieved famine across the subcontinent in the middle of the 20th century. — ThinkProgress
India’s utility industry is at a ‘tipping point’
The Indian utility industry is comprised of a mishmash of coal-fired generation, less than reliable nuclear power plants noted for their high maintenance costs, oil-fired power generation, along with some hydro-electric dams and biomass power generation. The ‘pylons and powerlines’ component of the national grid in India is in need of a complete overhaul. On top of all that, the fossil and nuclear power producers have been heavily subsidized for decades and theft of electricity continues to be a multi-billion dollar problem.
Prior to the Indian election, the country’s utility industry was summed up by industry expert, S.L. Rao;
Power retailers were behind on 155 billion rupees ($2.5 billion) of payments to their suppliers as of Jan. 31, reducing their ability to provide electricity to customers. Blackouts may spread as state utilities in Delhi, Haryana and Maharashtra slash consumer bills in a populist wave before elections. That’s jeopardizing a $31 billion government bailout of the industry, which requires companies to boost rates.
“The power sector needs tough politics, and the only person in politics today who might be capable of that kind of toughness is Modi,” said S.L. Rao, the head of India’s central electricity regulator from 1998 to 2001, according to his website.
The Indian utility industry “has reached a stage where either we change the whole system quickly or it will collapse.” Rao, who was appointed to the regulatory body by an independent committee, said he maintains no political affiliation. — Bloomberg
On the bright side however, India’s outgoing Prime Minister Manmohan Singh had begun a process to inform citizens of the benefits of renewable energy and was instrumental in promoting a 4 GigaWatt(GW) solar park being built in four stages. At present it is only partially operational, with 1GW of power flowing now and construction of the three remaining stages continues at a brisk pace. When completed, it will easily be the largest solar park in the world.
Dr. Singh also directed policy towards massive wind power capacity additions, with major offshore wind installations due to come online in 2015. However, even with the efforts of PM Singh, only 4% of total electrical generation came from renewable energy in 2013. Prime Minister Singh’s policy goal of 20GW of solar by 2022 looks likely to be superceded by PM-elect Modi. Perhaps in dramatic fashion.
Tulsi Tanti, Chairman of the Pune India based wind power company The Suzlon Group, told the newswire today that, “the BJP-led government will provide an environment conducive for growth and investments, with major reforms in the infrastructure and renewable energy sector. This is important as India’s economic environment will act as a catalyst in reviving the global economy.” — Forbes
It is time to roll up our sleeves and get to work
Hundreds of thousands of direct and related jobs are expected during the 2014-2024 Indian renewable energy boom. And, bonus for consumers, the falling cost of solar and wind power electricity rates will have an overall deflationary effect on the national economy.
Later, as solar and wind power begin to displace fossil and nuclear power, declining healthcare costs, improved crop yields, cleaner air in cities resulting in a better quality of life for citizens — the new and stable energy paradigm will remove many of the historic constraints on the country and its people, allowing India to become all that it can and should be.
At this point, it looks like India’s transition to renewable energy may happen quickly and turn out to be the good-news story of the decade with massive economic, environmental, and human health ramifications — not just for India but for the region and the world. Hats off to India!