5 April 2017, Reuters, ANALYSIS-Trump declares end to “war on coal,” but utilities aren’t listening. Most U.S. power companies have no plans to alter their years-long shift away from coal. When President Donald Trump signed an executive order last week to sweep away Obama-era climate change regulations, he said it would end America’s “war on coal”, usher in a new era of energy production and put miners back to work. But the biggest consumers of U.S. coal – power generating companies – remain unconvinced. Reuters surveyed 32 utilities with operations in the 26 states that sued former President Barack Obama’s administration to block its Clean Power Plan, the main target of Trump’s executive order. The bulk of them have no plans to alter their multi-billion dollar, years-long shift away from coal, suggesting demand for the fuel will keep falling despite Trump’s efforts. The utilities gave many reasons, mainly economic: Natural gas – coal’s top competitor – is cheap and abundant; solar and wind power costs are falling; state environmental laws remain in place; and Trump’s regulatory rollback may not survive legal challenges. Meanwhile, big investors aligned with the global push to fight climate change – such as the Norwegian Sovereign Wealth Fund – have been pressuring U.S. utilities in which they own stakes to cut coal use. “I’m not going to build new coal plants in today’s environment,” said Ben Fowke, CEO of Xcel Energy, which operates in eight states and uses coal for about 36 percent of its electricity production. “And if I’m not going to build new ones, eventually there won’t be any.” Of the 32 utilities contacted by Reuters, 20 said Trump’s order would have no impact on their investment plans; five said they were reviewing the implications of the order; six gave no response. Just one said it would prolong the life of some of its older coal-fired power units. North Dakota’s Basin Electric Power Cooperative was the sole utility to identify an immediate positive impact of Trump’s order on the outlook for coal. “We’re in the situation where the executive order takes a lot of pressure off the decisions we had to make in the near term, such as whether to retrofit and retire older coal plants,” said Dale Niezwaag, a spokesman for Basin Electric. “But Trump can be a one-termer, so the reprieve out there is short.” Trump’s executive order triggered a review aimed at killing the Clean Power Plan. The Obama-era law would have required states, by 2030, to collectively cut carbon emissions from existing power plants by 30 percent from 2005 levels. It was designed as a primary strategy in U.S. efforts to fight global climate change. The U.S. coal industry, without increases in domestic demand, would need to rely on export markets for growth. Shipments of U.S. metallurgical coal, used in the production of steel, have recently shown up in China following a two-year hiatus – in part to offset banned shipments from North Korea and temporary delays from cyclone-hit Australian producers.RETIRING AND RETROFITTING Coal had been the primary fuel source for U.S. power plants for the last century, but its use has fallen more than a third since 2008 after advancements in drilling technology unlocked new reserves of natural gas. Hundreds of aging coal-fired power plants have been retired or retrofitted. Huge coal mining companies like Peabody Energy Corp and Arch Coal fell into bankruptcy, and production last year hit its lowest point since 1978. Read More here
Category Archives: The Mitigation Battle
17 March 2017, Energy & Climate Unit UK; Tilting at windmills: The energy debate down under. Battlelines have been firmly drawn in Australia’s power debate, with politicians backing their favoured energy sources like a die-hard footy fan his team. Against a backdrop of record temperatures, blackouts and high prices for consumers, the greatest casualty has been good policy. As a breezy sun-baked country with plenty of space, Australia is in many ways the perfect environment for renewable energy. Its steady growth over the past decade in particular has cut deeply into the business model of coal-fired power stations, which have previously been the mainstay of energy generation, but are largely coming to the end of their working lives. The coal industry is fighting for its existence, and the onslaught against the inevitable advance of renewable energy has been fierce. Cost and reliability Maximum temperature anomalies (difference from long-term average) for Australia from 31 January to 13 February 2017. Image: Australian Bureau of Meteorology The main lines of attack on renewables are two-fold: cost and reliability. Neither of these has much basis in reality. In terms of cost, the fact of the matter is that retail electricity prices in Australia have more than doubled in the last 10 years. Many people are struggling to pay bills, and disconnections have particularly hit the poor. The rise of renewable energy has frequently been blamed for the increased prices. However, analysis from the Australian National University comparing electricity prices across the states shows this is simply not the case. The ANU study shows absolutely no correlation between increased renewable energy penetration and rising cost. In fact, Queensland, the state with the highest proportion of coal and gas generation, also faced the highest growth in electricity bills. The state with the lowest increase in bills, Tasmania, also has the lowest levels of thermal power generation. Of course, price rises are not just related to generation, whether that be coal, gas or renewables. In sparsely populated Australia, network costs – the transmission towers and poles and wires – account for over 50% of bills. To a large extent, the gold-plating of network infrastructure has driven increases in cost. Read More here
28 March 2017, Climate Central, Trump Moves to Dismantle U.S. Climate Rules. President Trump signed a sweeping executive order Tuesday rescinding numerous federal climate policies and calling for the review and replacement of the Obama administration’s most ambitious effort to control climate pollution — the Clean Power Plan. The order is Trump’s most aggressive move yet to dismantle federal climate regulations even as established climate science shows that man-made global warming is a growing threat to human life and the economy. In all, Trump’s executive order targets at least 23 federal rules, regulations, executive orders, memorandums and reports related to energy and climate change, many of which are likely to be tied up in years of legal wrangling before being decided. The total number is likely much higher because the order directs federal agencies to tally up all their rules and regulations that can be interpreted to “constrain” energy production and prepare them to be rescinded if they’re deemed to be a “burden” on energy production and use. Legal experts and climate scientists say the move abdicates U.S. leadership on climate change and incentivizes nearly unfettered fossil fuels development across the country. Those steps could diminish the chances that countries can prevent the world from warming to levels that scientists consider dangerous — 2°C (3.6°F). ….The details of Tuesday’s executive order show the breadth of the Trump administration’s desire to dispense with existing U.S. climate and energy policy. Read More here
23 March 2017, Renew Economy, Fairfax joins media hysteria over post-Hazelwood “blackouts”. The warnings of blackouts provoked by the imminent closure of the Hazelwood brown coal generator in Victoria– already so prevalent on right wing blogs, the Murdoch media and the ABC – reached fever pitched proportions on Thursday. Fairfax Media led the front page of The Age newspaper (see image right) with an “exclusive” story that warned of 72 days of potential blackouts across the state over the next two summers. “Victoria’s energy security has been thrown into question, with the state facing an unprecedented 72 days of possible power supply shortfalls over the next two years following the shutdown of the Hazelwood plant next week,” the story by Josh Gordon begins. And how does it come to this breathless conclusion? Fairfax, like other media, such as the ABC’s political editor, Chris Uhlmann, is basing the forecasts of blackouts on this graph that appears on the website of the Australian Energy Market Operator. It purports to show – in the light red at the top – the periods when Victoria could face a shortfall of supply. The graph for South Australia is even more dramatic. But is that really what is says? Blackouts all summer? Not at all, says the AEMO – a reply they would happily give anyone who bothered to ask. It actually shows the most extreme demand scenarios that it can think of – a one in ten year likelihood in this case – and graphs that over and above what it considers to be the “average” supply. Repeat. That is average supply, not total supply available. Assuming this would lead to blackouts is a bit like saying that someone who walks to the ocean edge at low tide risks getting wet when the tide comes in, and they don’t move. There is plenty of excess capacity that can meet that demand. This graph, is a section known as its Mtpasa forecasts, is basically a heads up that the tide will come in, and generator owners might want to think about maintenance planning, switching them on etc etc, to take it into account. Read More here