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GliderGuider

(21,088 posts)
Mon Sep 8, 2014, 01:24 PM Sep 2014

The High Cost of Renewables

The High Cost of Renewables

In this post I present “back of envelope” style calculations on the capital costs of renewables globally since 1998 and deduce that roughly $1.3 trillion has been spent installing wind turbines and solar panels. Is this a lot of money? Is it a wise investment? What else may we have we got for our money?

There are different ways to view this. For example UK annual GDP is roughly double this sum and in that perspective it is not a huge amount for the world to spend over 15 years. Some would argue that we should be spending a lot more. Another perspective is that the same money would buy 50 Hinkley Point style pressurised water reactors. That would add 163 GW to global generating capacity, roughly three times the UK total generating needs.

We hear a lot about the plummeting cost of renewables and escalating costs of nuclear power. Looking just at capacity installation costs, nuclear comes in at $8000 / kW and wind at around $2000 / kW. But these figures need to be adjusted for load capacity factors (nuclear 0.9, wind 0.17) and for the longevity of the installations (nuclear 50 years, wind 20 years). Applying these adjustments wind works out at 3 times and solar at 10 times the cost of installing nuclear power.

I'm not a supporter of nuclear power by any means. IMO the technology is far too risky, especially as I expect a flurry of regional economic and social collapses over the next 30 years. In such a situation, the maintenance and safe operation of nuclear plants is by no means assured in the affected regions, let alone the safe decommissioning of plants that are past end of life. However, while we are busy hitching our ideological wagons to wind and solar, we should do so in the full knowledge of their actual costs relative to other sources.
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The High Cost of Renewables (Original Post) GliderGuider Sep 2014 OP
I stand by my prediction that the environmental cost of renewables is also being underestimated phantom power Sep 2014 #1
I can't think of any reason the longevity of wind Schema Thing Sep 2014 #2
Parts can be changed on cars as well... FBaggins Sep 2014 #7
Cost tazkcmo Sep 2014 #3
The toxic cost of renewables is ignored too often OnlinePoker Sep 2014 #4
That's just capitalism tazkcmo Sep 2014 #5
is there some other economic system renewables are going to be manufactured under? phantom power Sep 2014 #6
As things progress, Benton D Struckcheon Sep 2014 #8
This is so, and also, accounting for only installation costs for nuclear energy Ghost Dog Sep 2014 #9
Another view: Ten Reasons Intermittent Renewables (Wind and Solar PV) are a Problem GliderGuider Sep 2014 #10
I don't know why you post things that can be so easily refuted with data. Benton D Struckcheon Sep 2014 #11
From the same person who hints that renewables use more energy to build & maintain FogerRox Sep 2014 #12
what is the " longevity" of nuclear waste and the cost estimate to protect the environment Bill USA Sep 2014 #13
The longevity of nuclear waste is less than 400 years if done right. Massacure Sep 2014 #16
comparing operating costs of renewables vs fossil fuels ignores the costs of coping with AGW Bill USA Sep 2014 #14
Absolutely. GliderGuider Sep 2014 #15
acknowedging the cost of AGW then makes the use of the word "High" in your title rather mystifying Bill USA Sep 2014 #17
It was in the title of the original blogpost, not my choice. nt GliderGuider Sep 2014 #18

FBaggins

(26,731 posts)
7. Parts can be changed on cars as well...
Mon Sep 8, 2014, 02:33 PM
Sep 2014

... yet they eventually cost more to maintain that replacing them entirely.

Keep in mind... the automobile is generally designed for a working lifespan of 4-6,000 hours of use. 20 years for a wind turbine represents upwards of 100,000 hours in many cases.

tazkcmo

(7,300 posts)
3. Cost
Mon Sep 8, 2014, 01:42 PM
Sep 2014

This can be measured any more ways than just money. What does nuclear "cost" in Japan right now? Does that "cost" include radio active wild life in Europe? The definition of "cost" is relevant and will change depending on perspective.

OnlinePoker

(5,719 posts)
4. The toxic cost of renewables is ignored too often
Mon Sep 8, 2014, 01:53 PM
Sep 2014

People want solar and wind, but for the lowest cost. This means production in places like China where mining and manufacturing have an exceedingly lax regulatory regime. The result is toxic waste dumped in fertile farmland which will never be able to recover from the damage.

Here's a good article on the subject from last summer:

http://news.thomasnet.com/IMT/2013/08/22/rare-earths-and-other-chemicals-damaging-the-environmental-value-of-renewables/

tazkcmo

(7,300 posts)
5. That's just capitalism
Mon Sep 8, 2014, 01:59 PM
Sep 2014

This doesn't mean renewables are dangerous, it means the companies producing them suck.

phantom power

(25,966 posts)
6. is there some other economic system renewables are going to be manufactured under?
Mon Sep 8, 2014, 02:15 PM
Sep 2014

you know, besides "just capitalism" ?

I grow eternally weary of people asserting, against all the actual evidence, that renewables are going to be crafted lovingly by baby-seal-friendly elves, next door to the keebler bakery tree.

Benton D Struckcheon

(2,347 posts)
8. As things progress,
Mon Sep 8, 2014, 07:33 PM
Sep 2014

the materials used change, as do the methods. All of these analyses are static. The world isn't.
Also, we are now realizing all of the capital costs for renewables up front. Once a wind turbine is erected, or a solar panel installed, it continues to work without any other input than wind or the sun. A coal plant continues to need coal, which in many cases involves small things like, you know, taking the top off a mountain. A nuclear plant continues to need uranium, properly enriched, and then needs a place to put its waste products. In between, massive amounts of time and energy need to be expended on keeping it maintained, in updating and upgrading its risk systems, and generally in making sure it doesn't render an area approximately the size of Delaware uninhabitable.
The difference between renewables and any of the alternatives that require some form of fuel to be burned is that last part: nothing is burned. Ergo, nothing needs to be mined and no waste needs to be put somewhere after its been burned. That makes its footprint far far smaller, once built. There will be environmental effects from the building, and people being who they are, corners will be cut. The alternative is even less attractive.

 

Ghost Dog

(16,881 posts)
9. This is so, and also, accounting for only installation costs for nuclear energy
Tue Sep 9, 2014, 04:12 AM
Sep 2014

leaves out the huge costs associated with (the still unresolved issue of) dealing safely with nuclear waste products, plant maintenance and decomissioning, and (risk-adjusted) potential future 'accidents' and catastrophes...

 

GliderGuider

(21,088 posts)
10. Another view: Ten Reasons Intermittent Renewables (Wind and Solar PV) are a Problem
Tue Sep 9, 2014, 07:19 AM
Sep 2014
Ten Reasons Intermittent Renewables (Wind and Solar PV) are a Problem

1. It is doubtful that intermittent renewables actually reduce carbon dioxide emissions.

It is devilishly difficult to figure out whether on not any particular energy source has a favorable impact on carbon dioxide emissions. The obvious first way of looking at emissions is to look at the fuel burned on a day-to-day basis. Intermittent renewables don’t seem to burn fossil fuel on day-to-day basis, while those using fossil fuels do, so wind and solar PV seem to be the winners.

The catch is that there are many direct and indirect ways that fossil fuels come into play in making the devices that create the renewable energy and in their operation on the grid. The researcher must choose “boundaries” for any analysis. In a sense, we need our whole fossil fuel powered system of schools, roads, airports, hospitals, and electricity transmission lines to make any of type of energy product work, whether oil, natural gas, wind, or solar electric–but it is difficult to make boundaries wide enough to cover everything.

The exercise becomes one of trying to guess how much carbon emissions are saved by looking at tops of icebergs, given that the whole rest of the system is needed to support the new additions. The thing that makes the problem more difficult is the fact that intermittent renewables have more energy-related costs that are not easy to measure than fossil fuel powered energy does. For example, there may be land rental costs, salaries of consultants, and (higher) financing costs because of the front-ended nature of the investment. There are also costs for mitigating intermittency and extra long-distance grid connections.

Many intermittent renewables costs seem to be left out of CO2 analyses under the theory that, say, land rental doesn’t really use energy. But the payment for land rental means that the owner can now go and buy more “stuff,” so it acts to raise fossil fuel energy consumption.

The whole article is a good look at a system-level assessment of the situation. And that last paragraph in the excerpt? Astute readers will notice, once again, the much-maligned shadow of "Wild Bill" Jevons lurking in the background.

There's lots more of note in the article, including this:

9. My analysis indicates that the bottleneck we are reaching is not simply oil. Instead, a major problem is inadequate investment capital and too much debt. Ramping up wind and solar PV tends to make those problems worse, not better.

Have a nice day.

Benton D Struckcheon

(2,347 posts)
11. I don't know why you post things that can be so easily refuted with data.
Tue Sep 9, 2014, 08:46 PM
Sep 2014

Number five on that list is especially risible, so let's go with that.
The author of that drivel states:

5. Wind and solar PV don’t ramp up quickly.

After many years of trying to ramp up wind and solar PV, in 2012, wind amounted to a bit under 1% of world energy supply. Solar amounted to even less than that–about 0.2% of world energy supply. It would take huge effort to ramp up production to even 5% of the world’s energy supply.


I'm sure you know where to find EIA's Monthly Energy Review. I think both you and I know the US is not exactly a paragon of renewable energy generation.
Here's three graphs from their Primary Energy Consumption by Source data (Table 1.3):



You can tell from the scale which is which, but just in case: number one is the sum of three renewables: wind, solar and geothermal. Number two is the sum of fossil fuel use, and number three is total primary energy consumption. In each case this is since 2000, so 1 = 2000, and 14 = 2013, which is slightly confusing, but I did this real quick as I already knew what it would show.
Renewable adoption is parabolic at the moment. No one knows how long that will go on for, but there is zero sign of that rate of increase in adoption slowing down. At that rate all fossil fuels would be replaced in about 10 years, last time I did the numbers. I'm not expecting that outcome of course, but that's just to illustrate how fast the rate of adoption has been. The idea that renewables don't scale is refuted by the data.
The third graph, which is all energy used in the US, is meant to refute the idea that energy consumption increases as renewable adoption increases. Nope.
The second is fossil fuel use by itself. Fossil fuel use, once again, didn't increase as renewable energy use increased. Simply not true. Not in the data.
Note that each of these has a trend line drawn in, and that the only one with a positive trend line, by a pretty wide margin, is renewable energy.
Replying with China is invalid. China is growing at a ridiculous pace, and has responded to its own problem by adopting renewables at an even faster pace than we are, at a faster pace than anyone in the world, as a matter of fact. Their goal, not so secret, is to replace as much coal as they can, if not all of it. I have no doubt they'll succeed.
The reason has to do with why economies grow in the first place: import substitution. This is Jane Jacobs stuff. Simply put, economies grow by doing for themselves what they formerly had to import, and so shifting their imports to other things that they either can't replace or simply prefer to have. NYC, for instance, replaces massive amounts of car imports by its outstanding mass transit system, which allows its citizens to afford all kinds of other goods and services that citizens of other cities can't, because they're spending that money on cars.
Renewables are import substitution on a truly huge scale. What is happening, and what you are fundamentally misunderstanding, is that renewables replace fossil fuels, which is evident in the above graphs. That replacement drops the import bill for those fuels for the cities within any nation, which is where most economic activity, and certainly the most valuable ones, take place. Not having to import fuels, whether from within a country or outside it, also allows for insulation from the legendary instability of energy supply regions, a good which is really almost invaluable, as Western Europe is now finding in re its relationship to the horrendously obsolete Russian economy and its equally obsolescent foreign policy, or as the rest of the US occasionally realizes re Texas and its own particular brand of craziness, or Alberta re the rest of Canada.
Given that latter incentive, the idea that human ingenuity won't find a way to get rid of dependence on places like Russia or Saudi Arabia is, quite simply, nuts. The incentive is way too big, and the reward is monstrous.
The rest is the usual static analysis based on current practices, or practices that are somewhat obsolete already, which is what all of these "limits" things depend on: taking the past and extrapolating it into the future ad infinitum.
As I've said before, islands will disappear. Coastlines will be inundated. All kinds of horrible things are going to happen. But man is going to just keep right on going. That's simply a description of the way it is, not a menu of desirable outcomes. Denying it by saying that man is going to disappear too is simply not going to happen. Men, deer, crows, dogs, adaptable mammals who are for the most part omnivores and scavengers, are going to keep right on going, along with the cockroaches and mosquitoes and Burmese pythons, and the only way to even mitigate a small part of the damage that will be done is by taking action.

FogerRox

(13,211 posts)
12. From the same person who hints that renewables use more energy to build & maintain
Sat Sep 13, 2014, 06:03 PM
Sep 2014

than they produce?

http://euanmearns.com/german-power-2013/

Claiming winds load capacity is .17 is just silly unless it was 1955. Older installs are 20-25% new are topping 40%:
http://www.umass.edu/windenergy/publications/published/communityWindFactSheets/RERL_Fact_Sheet_2a_Capacity_Factor.pdf

The same author writes this

But wind and solar power only operate at small fractions of their rated capacity and have much lower life expectancy than nuclear power stations. Factoring these variables in shows that installation costs of solar is more than 10 times nuclear and wind is more than 3 times the nuclear cost.
http://euanmearns.com/the-high-cost-of-renewables/



Rationalizing a path to jigger install costs is a BS way to weasel ones way past the LCOE figures.

Are renewables going to save us from global warming? No. Are renewables the best case path to take, by far yes. By every metric renewables make sense, dollar sense, Co2 sense, methane sense.

Bill USA

(6,436 posts)
13. what is the " longevity" of nuclear waste and the cost estimate to protect the environment
Tue Sep 16, 2014, 08:00 PM
Sep 2014

from contamination over that period?




Massacure

(7,521 posts)
16. The longevity of nuclear waste is less than 400 years if done right.
Thu Sep 18, 2014, 09:06 PM
Sep 2014

The keyword is done right. Unfortunately if you ask a nuclear scientist, a CEO of an energy company, and a member of green peace you'll get three different answers for what done right means.

Bill USA

(6,436 posts)
14. comparing operating costs of renewables vs fossil fuels ignores the costs of coping with AGW
Thu Sep 18, 2014, 03:55 PM
Sep 2014

In estimating the cost of using fossil fuel technologies, to ignore the costs of dealing with AGW is to pretend AGW isn't caused by fossil fuel combustion.

I have said before, we need some estimate of the costs of coping with AGW: what are the costs of dealing with the damage of more intense storms (and in the case of more intense hurricanes higher storm surges) - we have seen floods due to monsoon rains this year, there will be more to come. Higher sea levels (cf higher storm surges) and acidification of the oceans - the costs of the inevitable collapse of the fish populations in the oceans and attendant problems feeding about a sixth of the world's population that depends on the oceans as a major food source. Three quarters of the World's mega-cities are situated by the sea, while predictions of sea level rise sound fairly far in the future, when considering storm surges caused by more intense storms, the issue becomes much more timely (how often does a city have to clean up from storm surges, a costly task in itself, before it becomes necessary to consider relocating further inland?)

The list above I'm sure doesn't cover all the ways AGW will require costly adjustments by mankind. These costs need to be estimated and planned for and added to the operating costs of fossil fuel technologies to really appreciate their real cost. In doing this, we can see what it will cost us, economically speaking, to continue not responding adequately to the crisis of AGW.

 

GliderGuider

(21,088 posts)
15. Absolutely.
Thu Sep 18, 2014, 05:47 PM
Sep 2014

I'm one of those who don't think AGW can or will be addressed. The cost is eventually (in well under 100 years) going to include the wholesale collapse of industrial civilization, along with the excess deaths of billions of people. And that's even if we didn't add another single ton of CO2 to the air after today. Cost analysis kind of breaks down in that scenario.

This is also the big reason I'm against nuclear power. Waste longevity is one issue, but to continue building and operating plants that are only stable in the presence of continual high-tech monitoring and maintenance, while social order breaks down around them, strikes me as being outright insane.

Bill USA

(6,436 posts)
17. acknowedging the cost of AGW then makes the use of the word "High" in your title rather mystifying
Mon Sep 22, 2014, 08:43 PM
Sep 2014

"High" relative to what? If you realize the cost of doing nothing, or not enough, is going to be stratospheric, how can you offer a post entitled: the "high" cost of renewables?

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