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As the energy is essentially free, renewable electricity costs, like those of nuclear electricity, are almost entirely dependent on the up-front construction costs and the method of financing these.  Minimising the initial investment, relative to the expected energy yield, is critical to commercial viability.  But revenue is also dependent on when, and where, the energy can be delivered to meet the demand patterns of energy consumers.

For example, if it requires four times the capital investment in equipment to extract one megawatt hour (1 MWh) of useable electricity from sunlight, as compared to extracting it from wind, engineers need to find ways of quartering the cost of solar capture and conversion equipment; or increasing the energy converted to electricity fourfold; to make solar directly competitive.

Similarly if a technology produces electricity when consumers don’t want it; or produces it so far from the consumer that most of it is lost in transmission; then the revenue available will be proportionately less than a similar investment that better matches demand; or is located close to where it is consumed.

 

In most developed nations, including Australia, electricity is a traded product with the market price fluctuating from hour to hour; day to day; season to season; in five minute intervals, according to supply and demand.

 

Without government intervention in the market, supply and demand determines the return that is available to an investment; while the engineering solution and qualities of the resource determine the energy that a particular investment can theoretically deliver.

 

Before intervention, current renewable technologies, with the exception of hydro- electricity, are substantially less competitive, in terms of return on investment, than fossil fuels or nuclear electricity.  It follows that wherever alternatives are in use there are other factors at play: such as the cost or practicality of a grid connection; or a government intervention in support of renewables.

In Australian electricity markets this intervention takes the form of Renewable Energy Certificates (RECs) described later. Other governments have other instruments such as cap and trade carbon reduction schemes; carbon taxes; energy buy-back schemes; and tax breaks; to achieve similar ends.

 

In Australia grid losses are of particular concern. Australia’s population of just over 21 million is highly concentrated in a few large cities; just eight cities accounting for over 70% of the population. The largest Sydney; Melbourne; Brisbane; Perth and Adelaide account for 63% but are separated by distances of between 670 and 3,600 km; ‘as the crow flies’. This is similar to the continental USA and a substantially greater area than the entire EEC.

Transmitting electricity over such distances results in significant losses.  The market price received by a generator is therefore influenced by transmission costs and the point on the grid into which electricity generated is injected.  A renewable energy project remote from the points of high demand will receive a lower price than one adjacent. 

Very high voltage DC (HVDC) technology can reduce the net grid loss problem over long distances, and this is in use for links to Tasmania and South Australia, but it adds at least two costly voltage translations and the additional capital cost, together with the low capacity factor of wind and solar, precludes its use in most, if not all renewables dedicated situations.

 

Even with the present substantial and probably increasing REC cross-subsidies from electricity consumers, transmission factors limit the economic distance an exploitable wind or solar resource can be from the main electricity grid and electricity consumers.

 


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Travel

Poland

Poland

 

 

Berlin

We were to drive to Poland from Berlin.  In September and October 2014 were in Berlin to meet and spend some time with my new grandson, Leander.  But because we were concerned that we might be a burden to entertain for a whole month-and-a-half, what with the demands of a five month old baby and so on, we had pre-planned a number of side-trips.  The last of these was to Poland. 

To pick up the car that I had booked months before, we caught the U-Bahn from Magdalenenstraße, close to Emily's home in Lichtenberg, to Alexanderplatz.  Quick - about 15 minutes - and easy.

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Fiction, Recollections & News

The Craft

 

 A Cloud prequel

 

 

 

Chapter 1 - Caught short

 

 

 

 

Christmas 2069 approaches and in the midst of the greatest retail spending frenzy for decades Bianca has been trying on clothes..  They're at Bergeroff Goodman, an up-market store. Bianca has been brought here by Margery who frequents such expensive places.  Unlike many other retail establishments in the world at this time of year, the store is not over-packed with shoppers.

Elsewhere many customers will expend their entire available credit and have even accumulated credit from earlier in the year to allow for this annual celebratory splurge.  Much of it will be expended on personal services, personal wellbeing, exercise, entertainment and of course religious practice and many will exchange gifts of credit towards these services with friends and loved ones.  But this store is very up-market and discrete.

This Monday lunchtime Margery is encouraging Bianca to buy a top quality black wool and mohair suit with a knee length skirt, similar to the one Margery is wearing.  Bianca had been resisting and equivocating when the call of nature gratuitously cut short their struggle.  The older woman had assumed Bianca's resistance was for financial reasons, insisting that a good suit is not an extravagance but an investment in Bianca's future. 

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Opinions and Philosophy

Energy woes in South Australia

 

 

 

 

South Australia has run aground on the long foreseen wind energy reef - is this a lee shore?

Those of you who have followed my energy commentaries published here over the past six years will know that this situation was the entirely predictable outcome of South Australia pressing on with an unrealistic renewable energy target dependent on wind generated electricity, subsidised by market distorting Large-scale Generation Certificates (LGCs) (previously called RECs in some places on this website - the name was changed after their publication).  

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