Straight Talk on Climate Progress in California

Andy Revkin talks to Nate Lewis about the scale of the challenge we face in addressing climate change.  Lewis (whom I took Chem 1 from at Caltech) was one of the first people to communicate the scale of the problem effectively to me, in his Powering the Planet talk.  He’s of the opinion that there are big technical gaps to be filled if we’re going to address the issue seriously — we need to learn how to do things we’ve never done before, in a technical sense.  But one of his underlying assumptions is that we will 1. have continuing economic growth globally, and 2. that this will necessarily mean an increase in energy use (even as we continue to decrease our energy intensity).  I think this need not be the case.  High quality lives are available at vastly lower energy usages than we see in the US, or even Japan and Western Europe.  They’re different, sure, but that doesn’t mean they’re inferior.  Compact, walkable/bikeable/livable cities.  Drastically reduced flying and driving, zero energy buildings, petroleum free agriculture, heirloom designed durable goods instead of cheap plastic disposable crap.  These things are huge, and make the remaining energy generation challenge much more manageable.  Yes, we still need to figure out long term storage and reliable renewable portfolio management, but it’s not the same herculean task that Lewis puts forward: of running our society as we do today, but on some other energy source.  Which simply will not work.

Coal Exports a Bigger Threat Than Tar Sands

Eric de Place does some simple calculations, which demonstrate that the planned coal export terminals in the Pacific Northwest will be a larger climate catastrophe than the temporarily delayed Keystone XL pipeline, which would carry Alberta tar sands bitumen to the Gulf of Mexico for refining.  A sobering reminder that in this conflict, we must win many battles consistently for many years to keep the atmosphere from being changed.

A Power Company President Ties His Future to Green Energy

Yale Environment 360 has an interview with the CEO of NRG Energy, a fossil fuel based, nationwide independent power producer (IPP) that sells their 22GW of generation into the wholesale market.  He’s bullish on solar PV, much less so on wind.  No mention of solar thermal.  He believes storage will be vehicle batteries.  Net metering policies and pricing will be key to broad adoption.  Given the lack of forecast energy demand increase, he sees different sources of energy (esp. coal, gas, solar, wind) having to compete for market share for the first time.  It’s important to note that as an IPP his position and incentives are much different from those of regulated utilities like Xcel, who certainly do not want to “keep [their] rates to [their] consumers down and get these electrons onto its grid at a very cheap price”.  And I think regulated utilities still make up a large majority of electrical generation in the US.

Is an Energy Transformation Afoot?

SunEdison

Almost immediately after we empowered Boulder to form a utility, a spate of articles appeared in the national press talking about the relative costs of coal and renewables, and the trends in those costs.  There was Krugman’s Here Comes Solar Energy Op-Ed in the NY Times, making the case that solar PV is already cheaper than coal-fired power once you remove all the subsidies we provide to both of them, and calling for the Feds to fix regulation to make that clear.  Boulder’s own RMI had a bit of commentary on Krugman’s opinion: it’d be nice if Federal regulations were saner, but even without that fix, it makes sense to build this stuff now, and will only make more sense as time goes on and the balance of system costs (which currently make up 50% or more of the cost of a PV installation) are reduced through best practices, standardization and mass production.

From the industry side, GE’s Jeff Immelt also said that federal regulation was a little beside the point now… and that even without government support GE was going all-in, expecting something like 200GW of solar to be built in China and India by the end of the decade.  That’d be a non-trivial amount of generation, on the order of 10 Three Gorges dams, or as much power as the entire US nuclear generation fleet.  Meanwhile NRG Energy, a nationwide and largely traditional fossil-fuel based independent power producer is planning to spend the overwhelming majority of its capital investment funds over the next few years on solar, mostly small utility projects (20-100MW) and distributed rooftop generation.

In the same vein, Xcel Energy’s recently filed 2011 Electric Resource Plan foresees essentially no new generation facilities being built until close to the end of the decade.  Some of this is attributable to the soft economy, but many people are saying it’s just as much a consequence of energy efficiency, demand side management, and increasing distributed (behind-the-meter) generation coming on line.  Unfortunately, Xcel added a gigawatt of coal generation to its grid last year, and this lack of demand for more energy means the company is now walking away from the transmission lines that would have enabled large-scale solar-thermal with storage in the San Luis Valley.  This means that the only way to shift Xcel’s power mix in the near future will be to accelerate the retirement of existing coal-fired generation, making room for more efficiency, wind, and solar.

The optimistic narrative that falls out of the articles above — that our energy systems are undergoing a transformation — seems plausible, and I hope that it’s true.  Certainly it’s the one that the Boulder Light and Power effort is going to be built around.  It’s comforting to see that we’re not alone on the world stage, and less daunting to imagine our job as facilitating an ongoing transformation, rather than starting one from scratch.

Xcel backing away from solar-thermal enabling San Luis Valley transmission

Xcel appears to be backing away from new transmission lines to the San Luis Valley.  This infrastructure is required to implement the several hundred megawatts of solar-thermal generation that they proposed in their 2007 resource plan.  Solar thermal is the only renewable power (other than pumped hydro, which has limited availability) for which energy storage is potentially feasible right now (e.g. using huge tanks of molten salt).  It’s interesting to contrast the utility’s statements on the San Luis Valley project with what they’re saying about the Pawnee retrofit, and what they said about the Comanche 3 plant.

Vote for local, transparent regulation: Vote Yes on 2B and 2C

steaming along

The Colorado Public Utilities Commission (CPUC) regulates Xcel Energy; they have final say over the rates that the company is allowed to charge, and which investments they make in our energy future.  In the past four years, the CPUC has approved 3 rate increases.  The commission also allowed Xcel to build the state’s largest coal-fired power plant — Comanche 3 — at a cost of nearly one billion dollars, waiving their own rule that such large projects be bid out competitively.  By doing so, they handed Xcel a windfall profit.  Now Xcel wants to double down its long-term bets on coal by spending nearly $400 million to refurbish the aging Pawnee and Hayden power plants, tying Colorado to this polluting and climate damaging fuel for decades to come, and making all of us pay for the privilege of burning it.

Trains

The CPUC is allowing Xcel Energy to make choices that are bad for our rates, good for their profits, and which degrade our environment both locally and globally.  Furthermore, the commission has — at Xcel’s request — begun barring citizen participation in their proceedings.  Decisions about our rates, fuel mix, and the huge capital expenditures made on our behalf thus stand to be approved without any direct public participation.  If we stick with Xcel, we will be stuck with this impenetrable regulatory system indefinitely.  In contrast, the governance of a local Boulder utility would be far more accountable, accessible, and transparent.  It would not involve constantly battling a well funded corporate adversary.  It would be able to reflect Boulder’s core values of sustainability and innovation — values unfortunately not universally shared by our fellow Coloradans.  We would also be able to effectively leverage our vibrant community of clean energy entrepreneurs.

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We have vastly more access to our City Council and the commissioners they appoint than we will ever be able to get at state level.  Whatever decisions are made locally, we can be confident that our community will have a voice in the process and truly influence the outcome.  Vote Yes on 2B and 2C and give us the power to control our own energy future!

Wind Turbines and Bicycles

(this post is a slightly longer version of the Letter to the Editor that I wrote with Amy Guinan)

Appalachia faces steep coal decline

Appalachia faces steep coal decline.  Peak Coal is the present day reality in all of the eastern coal basins.  How will it affect eastern energy politics?  The Powder River Basin has enough coal to power us… if we want to pay for it and dig it out of the ground, and we can ship it to the rest of the country.  But at what point does it cease to be even the economically reasonable thing to do, if you don’t care about the future.

The Coming Decline and Fall of Big Coal

The Coming Decline and Fall of Big Coal.  Appalachian mountaintop removal mining has taken off in recent years in no small part because there’s not much left worth mining underground.  All the eastern coal fields are in declining production, despite these extreme techniques, and large increases in hiring.  Yet somehow, these developments are being couched by the industry as resulting from the Obama administration and environmental regulations.  Really it’s a geological special case of that Sagan quote: “The Universe is not required to be in perfect harmony with human ambition.”

Former Xcel CEO Dick Kelly would be fine with no more coal

Former Xcel CEO Dick Kelly would be fine with no more coal.  Unfortunately, the regulatory environment that his former employer works within in Colorado, and the company’s need to protect a couple of billion dollars worth of undepreciated coal assets makes it very hard for them to move away from it.

Boulder energy watchdog kicked out of Xcel dockets at PUC

Leslie Glustrom is to be barred from intervening in the Colorado Public Utilities Commission dockets.  She’s been doing the kind of discovery and oversight work that the regulatory body and the Office of Consumer Council should be doing on their own, but apparently lack the spine to carry out.  This is bad for our energy system, and bad for our democracy.