FERC nominee Ron Binz the flipper

August 2, 2013 by Amy · Comments Off
Filed under: HB 1365, renewable energy 

By Amy Oliver Cooke and Robert Applegate

As Ron Binz campaigns to be confirmed as the head of the Federal Energy Regulatory Commission, much of the emphasis has been on his position as an activist for what he considers to be low or no carbon energy sources, predominantly Big Wind. (Forget the fact that wind requires an enormous amount of carbon emissions in the manufacturing of gigantic wind turbine.)

But Binz’s no carbon advocacy is hypocritical.

While Binz now advocates for lowering carbon emissions, he was instrumental in shutting down Colorado’s lowest carbon emitting power source, the Fort St. Vrain nuclear plant, which eventually converted to natural gas – a technology he now calls “dead end” when it comes to carbon emissions.

As head of the Office of Consumer Council (OCC), Binz successfully argued before the Public Utilities Commission (PUC) that the power plant did not work correctly and that the shareholders of the company running the plant must pay for the capital costs rather than customers using the electricity.  (This is when Binz cared about ratepayers)

More stringent regulations and the burden of the extra cost upon the shareholders ultimately forced the plant to close as a carbon free, nuclear power source.  This “regulating to death,” as stated by previously employees of the plant ultimately came at the cost detriment of electricity customers who paid for the decommissioning and subsequent recommissioning as a carbon emitting natural gas plant.

His position on natural gas has flipped too. In 2010, as chair of the PUC Binz took a lead role in negotiating the terms of the controversial fuel switching bill HB 1365 titled “Clean Air; Clean Jobs Act.” At that time, Binz championed a mandated fuel switch from coal to natural gas. Apparently Binz thought natural gas was a clean fuel in 2010 but isn’t now.  Too bad ratepayers didn’t know that in 2010. It would have saved them more than $1 billion dollars, but then Binz’s concerns for consumer costs have flipped too.

Want open space? Don’t go wind or solar!

August 2, 2013 by Amy · Comments Off
Filed under: Archive, New Energy Economy, renewable energy 

By Robert Applegate

Amid the National Renewable Energy Laboratory’s (NREL) latest report1 on the land requirements of solar power generation, others are taking a look at what is really required to power homes using solar and wind and comparing that to another carbon free source, nuclear power generation.

A nuclear power plant, the biggest reactors currently available would take up less than 2 square miles and produce 3200MW of power.2 To achieve this same power output from solar would require 292 square miles, 146 times the amount of land required for a nuclear plant.2 A wind farm would need to be 832 square miles, or 416 times the land to create the same amount of power of the nuclear plant.2 To put this into perspective, the land footprints are shown over the backdrop of the state of Rhode Island, where the blue is a nuclear plant, the yellow a solar farm, and the green a wind farm all of equal capacity.

Land footprint comparisons

Land footprints of a nuclear plant (blue), solar array (yellow), and a wind farm (green) all of equal capacity (3200MW), over the backdrop of the state of Rhode Island.2

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1      NREL Report Firms Up Land-Use Requirements of Solar. Study shows solar for 1,000 homes would require 32 acres. July 30, 2013.  http://www.nrel.gov/news/press/2013/2269.html

2      What Does Renewable Energy Look Like? Clean Energy Insight, 10 Apr, 2010. http://www.cleanenergyinsight.org/energy-insights/what-does-renewable-energy-look-like/

Energy by the Numbers

May 12, 2012 by Amy · Comments Off
Filed under: Archive 

Sound energy policy must be rooted in fact rather than fiction and reason rather than emotion. Recently, the Institute for Energy Research released a well-researched, extensively-cited, easy-to-read primer on energy. We encourage you to read all 68 pages of Hard Facts: An Energy Primer.  For those who want a cliff notes version, a few key facts are provided below.

Fossil Fuels:

  • In 2011, the United States produced 23.0 trillion cubic feet of natural gas, making it the world’s largest natural gas producer.
  • In 2011, the United States produced 5.67 million barrels of oil per day, making it the world’s third largest oil producer.
  • Proved conventional oil reserves worldwide more than doubled from 642 billion barrels in 1980 to more than 1.3 trillion barrels in 2009.
  • The United States is home to the richest oil shale deposits in the world—estimates are there are about 1 trillion barrels of recoverable oil in U.S. oil shale deposits, nearly four times that of Saudi Arabia’s proved oil reserves.
  • The United States has 261 billion tons of coal in its proved coal reserves. These are the world’s largest coal reserves and over 27 percent of the world’s proved coal reserves.
  • The United States produces nearly 1.1 billion short tons of coal a year, making it the world’s second largest coal producer.
  • China produces over 3.5 billion short tons a year.
  • The United States has 486 billion tons of coal in its demonstrated reserve base, enough domestic coal to use for the next 485 years at current rates of consumption. These estimates do not include Alaska’s coal resources, which according to government estimates, are larger than those in the lower 48 states.
  • The federal government leases less than 3 percent of federal lands for oil and natural gas production—2.2 percent of federal offshore areas and less than 5.4 percent of federal onshore lands.
  • The world could hold more than 700 quadrillion (700,000 trillion) cubic feet of methane hydrates—more energy than all other fossil fuels combined.

Renewables and Nuclear:

  • In 2011, wind power produced 1.2 percent of the energy used in the United States.
  • In 2011, solar power produced 0.1 percent of the energy used in the United States.
  • Total federal subsidies in fiscal year 2007 were $24.34 per megawatt hour for solar-generated electricity and $23.37 per megawatt hour for wind, compared with $1.59 for nuclear, $0.67 for hydroelectric power, $0.44 for conventional coal, and $0.25 for natural gas and petroleum liquids.
  • In fiscal year 2010, the subsidies were even higher. For solar power, they were $775.64 per megawatt hour, for wind $56.29, for nuclear $3.14, for hydroelectric power $0.82, for coal $0.64 and for natural gas and petroleum liquids $0.64.
  • In 2011, hydroelectric power contributed 3.3 percent of the energy used in the United States and 7.9 percent of the electricity.
  • Today, there are 104 nuclear reactors in the United States and construction began for all of these reactors prior to 1974.

Energy Efficiency:

  • Since 1970, the six so-called “criteria pollutants” have declined by 63 percent, even though the generation of electricity from coal-fired plants has increased by over 180 percent, gross domestic product has increased by 204 percent, energy consumption has increased by 40 percent, and vehicle miles traveled have increased by 168 percent.
  • Energy use per person in the United States fell 12 percent between 1979 and 2010 from 359 million BTUs to 317 million BTUs per person.
  • Energy intensity—energy consumption per dollar of GDP—fell by 52 percent between 1973 and 2011.
  • In 2010, China was responsible for 24 percent of global carbon dioxide (CO2) emissions. In comparison, the United States, the second largest emitter of carbon dioxide, emitted 17 percent of the global total.
  • China’s CO2 emissions increased by 167 percent between 1999 and 2009, while CO2 emissions from the United States decreased by 4.4 percent over the same 10-year period.

Other Numbers:

  • Renewable energy subsidies were 49 times greater than fossil fuel subsidies when comparing the amount of energy produced per dollar of subsidy.
  • In 2009, renewables received a 77 percent share of total federal energy incentives while fossil fuels received a 13 percent share but produced 7 times the energy.

We are agnostic on energy resources. It is our strong belief that the choice of energy resources should come from the demands of the free market, and not from the preferences of policymakers, lobbyists, or special interest groups. Subsidies only encourage lawmakers to pick winners and losers in the energy industry that distort the market and end up costing consumers more.