Liebreich: Germany’s self-inflicted nuclear disaster

Fact #1: Fossil Fuels continue to dominate global energy

Michael Liebreich, Chairman of the Advisory Board – Bloomberg New Energy Finance on the contradictory energy policy of Germany’s Energiewende. Following is a short excerpt from a long VIP comment on the global lack of progress on decarbonization: 

While Japan’s nuclear woes result from the Fukushima natural disaster, Germany’s are wholly self-inflicted. In 2011 Angela Merkel reversed her former determination to prolong the life of Germany’s nuclear fleet, quickly shutting eight of the country’s 17 reactors and returning to the previous policy of full nuclear phase-out by 2022. This left fossil generation’s contribution to the German electricity system largely unchanged until at least 2020, and possibly 2025. Combined with the collapse of the EU-ETS carbon price and a flood of cheap coal being squeezed out of the US by the glut of shale gas, and the result is Germany burning more coal and generating higher emissions.

Anyone who promotes the Energiewende as Germany’s solution to climate change needs to understand that it is first being used to retire Germany’s zero-carbon nuclear fleet, and only when that has been completed will it start to squeeze fossil-based power off the grid. Germany has given nuclear retirement a higher priority than climate action, pure and simple.

To anyone not ideologically anti-nuclear power, this is a manifestly wrong-headed policy. The arguments about nuclear waste and proliferation hardly apply to existing nuclear power stations. The problems are real, but they are not worsened by continuing operation. Nor are they mitigated by early shut-down. They may be powerful arguments against building nuclear capacity in new countries, but are poor arguments in the case of Germany or Switzerland.

The fact is, as I showed in the statistics I presented in my BNEF Summit keynote in April 2012, nuclear power is far safer than coal-fired power generation. Deaths per TWh are around 15 times lower for nuclear power than for coal-fired power in the developed world, and 300 times safer than coal-fired power in China. And this is including the impact of Three Mile Island, Sellafield, Chernobyl and Fukushima, but before taking into account the appalling toll inflicted on the wider population by coal-driven air pollution and smog. The tsunami that hit Fukushima killed nearly 16,000 people; however, so far no one has been shown to have lost their life as a result of the nuclear disaster.

So much for those countries that have – illogically and to the detriment of the climate – decided to shut their nuclear fleet prematurely. What about the countries that are pushing ahead and replacing aging nuclear plants? (…snip…)

Source.

N Nadir on bubonic plague — we picked the wrong policy there too

N Nadir said this so well I would like to quote an excerpt:

A nuclear power plant is an investment in the future, the main benefits will accrue to our children, our grandchildren and great grandchildren.

It's very clear that as a culture, we couldn't care less about the future.

I believe nuclear energy is the only form of truly sustainable energy and I would argue that a complaint about what might happen should the world economy collapse when the observed effects of dangerous fossil fuels without the collapse of the economy are disasterous, is inherently absurd.

But as much as I know nuclear energy is the only moral form of energy that exists, I do not expect it to be allowed to succeed as it might do, any more than it wasallowed to do what it might have done. One is a fool if one underestimates the power of fear, the power of ignorance.

I use this analogy a lot, because it sticks in my mind is seems dead on: Many lives might have been saved from the bubonic plague if people merely cleaned up the garbage on which rats fed. The actual means to address the crisis was not that however; it was prayer.

With nuclear energy we might clean up the garbage. But that won't happen. What will happen is just more prayers to the sun God while the devil within all of us burns ever more quantities of coal, oil, and gas, until the last molecule of CO2 that can be squeezed into the atmosphere issqueezed into it.

Source: a comment on Energy Collective.

 

Transforming the Electricity Portfolio: Lessons from Germany and Japan in Deploying Renewable Energy

Brookings held the captioned event to launch a new policy brief (download PDF). I listened to the audio podcast while cycling Saturday. There is also a transcript available.

When I study the Brookings graphic showing the fossil increases in Germany and Japan it makes me really sad. But the majority of citizens are happy that the hated nuclear is dead or dying.

I think Germany is driving their economy off a cliff. As RE penetration increases their generation costs will go convex. Germany is already around 27% RE, with “greens” talking about going to 100% as fast as possible. But the man on the street thinks this is all grand. It is political suicide for a politician to propose reversing the anti-nuclear Energiewende.

To my surprise the Brookings scholars speaking at the event do not seem concerned. E.g., they quote a new NREL study proposing a pathway to 80% RE. Among the “lessons learned”:

Implications for the United States:

Policymakers must work to build a baseline consensus on national energy objectives and then develop and implement consistent, durable and clear policy mechanisms to achieve those objectives

The U.S. needs to elevate environmental goals as part of its overall energy objectives—in particular addressing climate change through reduction of greenhouse gases—and link these environmental goals to economic and national security issues

Renewable energy needs to be considered a national asset, with the capacity to balance multiple objectives

Brookings is a big place. Evidently it's possible for the RE group to be unaware of other Brookings research just published in May this year “The Net Benefits of Low and No-Carbon Electricity Technologies” Charles Frank, summarized in the blog Why the Best Path to a Low-Carbon Future is Not Wind or Solar Power.

This is a placeholder for a longer post when I have time to write it. Check out the audio or transcript and the brief. What do you think?

 

Climate Group Lecture keynote address from Professor Joseph B Lassiter

Prof. Lassiter delivered a 40 minute lecture in Scotland to an event sponsored by the 2020ClimateGroup. The video is in two parts

Keynote part 1

Keynote part 2

We found the lecture to be a useful and sometimes fascinating global perspective of what is happening in the energy markets. An “insider’s perspective” in some parts. What you think?

Response to Readers: Combating Climate Change with Nuclear Power and Fracking

Prof. Joe Lassiter responds to the commentary firefight prompted by his Harvard Business School Working Knowledge article. His comments are self-explanatory – I’m highlighting here a few that resonate especially with me [emphasis is mine].

With more than 7,500 views and 180-plus tweets, I want to thank everyone for taking the time to read the original HBS Working Knowledge piece, The Case for Combating Climate Change with Nuclear Power and Fracking, and, in particular, for sharing your thoughts with one another. I don’t expect the article has changed minds, but I do hope it encourages people to open their minds to consider new possibilities.

My own concerns about climate change have led me to put “new” nuclear back on my table of alternatives that must be actively explored as well as to clarify my own attitudes toward fracking and its role towards any global solution. We must have a global solution—a set of new choices that change plans not only in the West but also in China and India—or we will have no solution at all.

(…snip…)

Things that were once seen as relatively safe are now understood as likely to be quite dangerous, such as coal burning’s contribution to global warming driven by worldwide cumulative CO2 emissions. Perhaps, the opposite is also true. Are things that were once seen as quite dangerous now potentially relatively safe as result of new understandings and innovations? 

While rich countries can afford to do whatever they wish to do, policymakers in poorer countries consistently make the trade-off in favor of the certain benefits of electricity to their citizens today over the uncertain costs of global warming to their citizens in the future. To change that trade-off significantly, I believe we need to get new dispatchable, zero-carbon technologies on the table within the next 10 years that can beat coal on price in India and China in order to change Indian and Chinese national energy policies.

In my opinion, the newly approved Gen III+ nuclear reactors (e.g., AP-1000 variants or even the still-to-be-approved, but largely derivative Small Modular Reactors) are not likely to produce power cheaply enough to change the currently forecast build out of fossil fuel power systems in India and China. While China will make significant commitments to nuclear power internally and aggressively export nuclear power plant components, the bulk of its power generation will remain with coal, serving markets—domestic and foreign—where demand for low-cost will in all likelihood overwhelm the drive for low-carbon emissions. Without establishing the availability of much cheaper (coal-competitive) zero-carbon alternatives within the next 10 years, I just don’t think “the world” can do enough, fast enough to keep cumulative CO2 emissions below the levels that—again in my estimate—threaten us all with “unknowable” risks.

My concern with nuclear—even “new” nuclear—is the issue of catastrophic core failures, à la Three Mile Island, Chernobyl, and Fukushima. Historically, those core failures have been “Hindenburg disaster” events with immediate loss of life and property as well as the additional uncertainty of lingering contamination. While gripping, the actual loss of life from these events has been similar in magnitude to the loss of life of relatively more common disasters—BP Deep Horizon blowout, Exxon Valdez grounding, BP Texas City Refinery explosion, Gyama Mine landslide—which take place relatively often within the world’s existing energy systems. As part of a Bayesian analysis, Jack Devanney of Martingale estimates that on average we will have one such nuclear core casualty every 3,000 reactor years. For the current fleet, that’s about one every 10 years. If the world were to go all-out nuclear for electricity, we would eventually be talking about one core damage event every calendar year, unless we can substantially reduce the failure rate with new designs.

In spite of all of nuclear’s issues, private capital is relatively abundant. There is even a privately financed, venture-backed fusion reactor program today, Tri-Alpha Energy, of Rancho Santa Margarita, California. There is a whole crop of privately financed “new” Gen IV nuclear power technologies—like those at Martingale or Transatomic or TerraPower as well as others—that have the potential to be significantly cheaper than the current Gen III+ plants or the proposed Small Modular Reactors, even though much work needs to be done before we know that these Gen IV designs will actually be cheap enough to beat coal in India and China and safe enough for regulators to permit for deployment. It is the inability to get access to sites for stress testing of prototype designs, as well as high upfront cost and uncertain timeliness of the regulatory process, that are the primary barriers to raising private capital today.

(…snip…)

There is a clear opportunity to hold ARPA-E style design challenges around the world focused on nuclear power that call for entrepreneurs to submit designs that meet the cost, safety, construction, and operational scaling required to beat coal in India and China in less than 10 years. It will take new ideas to break coal’s momentum and to open up the minds of policymakers. This is a time when small teams can often uncover brand new or even forgotten paths to new solutions while large teams get trapped into non-solutions by incrementalism and convention. But to convert these new ideas into real alternatives, the world’s governments need to go even farther. They must provide the nuclear regulatory redesign and physical facilities for prototype evaluation that will let private capital take on the tasks of technical innovation, experimentation, and rigorous stress testing, even as the eventual permitting authority remains with public regulators. Innovation and regulation must proceed hand-in-hand, but regulators must allow entrepreneurs to pursue those innovations with a relentless urgency that matches the severity of the “unknowable” threat which the world faces from global warming.

Finally, if you have the time, you might look at the online Forbes comments section as well as the HBS Working Knowledge comments section at the bottom of the article. The exchange between Forbes commenters ‘daviddelosangeles’ and Jeff Walther is well worth reading, as is the discussion among Walter, Mohammed Athari, and Paxus Calta. Also, Robert Hargraves dropped by and mentioned his book, THORIUM: energy cheaper than coal, which I found to be a useful compendium of energy information of all kinds.

(…snip…)  I think we all need to keep our minds open to change, while urgently pushing for achievable, effective, and truly global solutions to the challenges of global warming.

Joris van Dorp explains why he can sometimes appear hyperbolic

Source: Energy Collective September 15, 2014

Hi Mark,

Yes, I can appear hyperbolic, but I’ve joined the energy debate for most of my adult life. The first few years I was very nuanced, but this did not help. Then, when the subsidy racket started on large scale, I become a little more pointed. And since Fukushima, which allowed the anti-nuclear propagandists to kill nuclear power in many countries, I have decided that clarity is far more important than nuance. I call BS whenever I see it, and I do not attempt to soften my message. We need to put our foot down, or nothing will change. Anti-nuclearists need to feel hounded. They need to understand that they will be held to account sooner or later. That is why I call fraud when I see fraud, even though many might find the use of words like ‘fraud’ to be uncivilised or too heavyhanded. I don’t believe it is. It’s a matter of life and death now.

30% wind/solar would be the limit above which the costs for curtailment/storage start rising exponentially. Even before reaching 30%, profile costs start soaring already. Details can be found in the presentation and underlying report that I linked above.

Solar and wind power should only be installed along with a budget for funding their entire integration costs, and this total cost must be born entirely by the owner of the installations. This is the opposite of what is happening today. Today solar and wind power are financed almost completely by the public (and disproporitonately the poor, who pay the most relative to their income!), while the benefits are funneled into the pockets of the well-healed owners. This is a recipe for failure on multiple levels: environmental, social and financial. It’s a disgrace. It needs to be stopped immediately. See Spain as an example of how stopping this anti-social subsidy racket can be done quick and hard.

Environmental and economic constraints demand the building of cheap, clean energy. Solar and wind power have no role to play because they cannot deliver what is demanded, not now and not in the future. They only serve to complicate the task at hand, increase the cost of energy and magnify social inequality. Cui bono? Follow the money.

I recommend that you follow Joris van Dorp or his RSS feed. I can guarantee that you will learn something every day about the real-world of power generation.

We need an Energy Miracle — Here is How to Create that Miracle

Fact #1: Fossil Fuels continue to dominate global energy

M

Fact #2: Globally we are out of time – now need to increase decarbonization rate by factor of five. From PWC: Low Carbon Economy Index 2014 | 2 degrees of separation: ambition and reality

These two charts should make it clear that what we have been doing to eliminate fossil fuels is not working. This week we have seen more of the same non-functional, heat-but-no-light activity signified by a Feel-Good Climate March. Many of the marchers carried Anti-Nuclear signage. No doubt these are nice, sincere people. These are not serious people – they are not serious about climate change.

Harvard's Joseph Lassiter is serious about climate change. He is Professor of Management Practice in Environmental Management at Harvard Business School. Among his specialities is low carbon energy policies. He has just published the perfect response to the climate march feel-gooders. In this short essay Dr. Lassiter makes the essential points which I'll summarize as:

  1. Fossil fuel continues to dominate while both IEA and EIA forecast continuing fossil growth.
  2. We need an energy miracle.
  3. “That miracle comes in the form of “New Nuclear” power plants.”
  4. “The barriers to rapid progress in New Nuclear are not technical, not even economic. The barriers are in the outdated nuclear regulations that scare off private investors and in the nuclear industry-regulatory culture that accepts timelines measured in decades as normal. The world needs a New Nuclear miracle today.”
  5. “The US, EU and Japan have the technology infrastructure and the dynamic, startup companies to bring New Nuclear to the table quickly.”

Quoting Lassiter directly:

Entrepreneurs in the US, EU and Japan have the ideas. China and India and every other developing economy have the clear and compelling need. But to convert these new ideas into real alternatives, the world’s governments need to act. They must redesign their nuclear regulatory practices and provide physical facilities for prototype evaluation that will let private capital take on the tasks of technical innovation, experimentation, and rigorous stress testing, even as the eventual permitting authority remains with public regulators. Innovation and regulation must proceed hand-in-hand, but regulators must allow entrepreneurs to pursue their innovations with a relentless urgency that matches the severity of the unknowable threats that the world faces from global warming and ocean acidification.

Please read the entire essay, then send the essay to your elected representative, telling her that you expect to see legislation to reform nuclear regulation and also government support for the rapid development of New Nuclear. Thanks heaps to John Morgan @JohnDPMorgan for referring me to the Lassiter essay.

The Economist on past and future emissions cuts

 

Chart 1 – click to embiggen

The above graphic is from The deepest cuts, a contribution fromThe Economist to grappling with the “big picture” on effective carbon avoidance strategies.There are some obvious problems with the numbers in Chart 1 – particularly the Cumulative Emissions avoided by Hydropower and Nuclear. There are also some very big issues with the Chart 2 where authors attempt to project the carbon avoidance situation in 2020. I  addressed some of these issues in my comments to the article:

I hope this is just the beginning of an ongoing Economist project to refine and update an understanding of what is working, what is not working – all in the context of the essential measure of cost/benefit, specifically cost-per-ton-CO2-avoided.

I need to highlight a few errors in your data presentation. In your Chart 1 you report Cumulative Emissions Avoided for both Hydropower and Nuclear that understate the actual avoidance by roughly thirty times. Nuclear and hydropower avoidance should be about 64 and 90 GtCO2-eq respectively vs. your 2.2 and 2.8 GtCO2-eq. I derived these values from two sources. First, the IAEA report you referenced Climate Change And Nuclear Power 2013 states on page 14

Over the past 50 years, the use of nuclear power has resulted in the avoidance of significant amounts of GHG emissions around the world. Globally, the amount of avoided emissions is comparable to that from hydropower.

From inspection of IAEA FIG. 5 we can see that cumulative historical Hydropower avoidance is very roughly 25 GtCO2-eq greater than the nuclear avoidance, but otherwise similar. But what is the cumulative avoidance? in “Prevented mortality and greenhouse gas emissions from historical and projected nuclear power” Pushker and Hansen, 2013 calculated that the cumulative global CO2 emissions emissions avoided by nuclear power is 64 GtCO2-eq. Here’s their Figure 3, page 12 for both historical and projected emissions avoided:

Click to embiggen

The authors calculated the 64 GtCO2-eq avoidance based on a different IAEA source document: Energy, Electricity and Nuclear Power Estimates for the Period up to 2050: 2011 Edition; International Atomic Energy Agency, 2011.

Is 64 GtCO2-eq a big number? It is a Very Big Number, as Pushker and Hansen 2013 contrast to 35 years of USA coal emissions:

For instance, 64 GtCO2-eq amounts to the cumulative CO2 emissions from coal burning over approximately the past 35 yr in USA


Chart 2: Click to embiggen

Regarding your Chart 2, forecasting “the policies likely to have the biggest impact in 2020″ is a courageous undertaking. To make useful projections requires a deep knowledge of the energy industry, the electric power industry, economic forecasting and the political trends of the significant emitting countries. That is a Very Big Ask, so I decided to have a look for related work by the firm retained by The Economist: namely Climate Action Tracker. The principles of this consulting firm are listed as Dr. Bill Hare, Dr. Niklas Höhne, Dr. Johannes Gütschow and Dr. Michiel Schaeffer. The first three gentlemen are affiliated with the Potsdam Institute for Climate Impacts Research (PIK). That affiliation immediately boosted my estimate of the Climate Action Tracker qualifications because I have been studying the work of other PIK researchers who have been publishing very important and original work on the difficult subject of integrating variable renewable generation sources, especially at potentially high future penetration levels. This work requires a deep understanding of electric power systems. In particular I will recommend these three PIK papers:

  1. Hirth, Lion, The Optimal Share of Variable Renewables. How the Variability of Wind and Solar Power Affects Their Welfare-Optimal Deployment (November 8, 2013). FEEM Working Paper No. 90.2013. Available at SSRN: http://ssrn.com/abstract=2351754 or http://dx.doi.org/10.2139/ssrn.2351754
  2. Ueckerdt, Falko and Hirth, Lion and Luderer, Gunnar and Edenhofer, Ottmar, System LCOE: What are the Costs of Variable Renewables? (January 14, 2013). Available at SSRN: http://ssrn.com/abstract=2200572 or http://dx.doi.org/10.2139/ssrn.2200572
  3. Hirth, Lion and Ueckerdt, Falko and Edenhofer, Ottmar, Why Wind is Not Coal: On the Economics of Electricity (April 24, 2014). FEEM Working Paper No. 39.2014. Available at SSRN: http://ssrn.com/abstract=2428788 or http://dx.doi.org/10.2139/ssrn.2428788

What I found in an afternoon of Internet research on Climate Action Tracker gives me concern about the Chart 2 conclusions. You have probably noticed in Chart 2 that in the six short years to 2020 nuclear power has become so insignificant it doesn’t even make the top-eleven list. That is puzzling, as nuclear power is currently the largest source of non-hydro emission-free electricity.

I confess that all of my searching for anything related to nuclear power trends in publications by Climate Action Tracker principles is alone update:  Climate Action Tracker Update, 30 November 2012 from which I have extracted the only two, widely separated paragraphs wherein nuclear is even mentioned:

…Society also would lose the ability to choose whether it wants technologies like carbon capture and storage and nuclear energy, because those, along with bio-energy, would likely have to be deployed on a larger scale.

…More pressure on future policy requirements. For example, full global participation would be required after 2020, and society may have little freedom to choose technologies, such as the freedom to reject large-scale nuclear energy, CCS, or bio-energy.

The only way I can read these comments is that the authors political view is that nuclear power should be rejected. This supports my conclusion that the members of Climate Action Tracker are possibly experts in climate science, but perhaps not so expert in the electric power industry and the economics of energy. The economics is fundamental to policies that can be implemented in the real world.

Renewables are making no progress against coal

No doubt you’ve heard that Friends of the Earth recently announced their primary objection to nuclear power is now because it is too slow to build and too costly.

I would like to introduce FOE to the data embodied in Roger Pielke Jr’s graphic. I’ve modified Roger’s chart to illustrate the only energy policy that has succeeded to rapidly displace fossil fuels at utility scale. My crude green slope indicator highlights the period when France, Sweden, Belgium, Canada, United States, Germany, Japan, Switzerland and others built their nuclear power fleets. The absence of further progress since 1995 shows the stark reality of how little has been achieved by the billions dollars of taxpayer wealth that has been spent on renewable subsidies since Kyoto. The following chart contrasts the speed and scale of the nuclear build with the  slow build of the whole suite of “renewables”.

Roger’s short Breakthrough essay is the source of the original chart:

The data shows that for several decades the world has seen a halt in progress towards less carbon-intensive energy consumption, at about 13 percent of the total global supply. This stagnation provides further evidence that the policies that have been employed to accelerate rates of decarbonization of the global economy have been largely ineffective. The world was moving faster towards decarbonizing its energy mix long before climate policy became fashionable. Why this was so and what the future might hold will be the subject of future posts in this continuing discussion.

If you are keen to learn what makes for effective decarbonization policies, then you are likely to also enjoy Roger’s The Climate Fix. For an Executive Summary of the concepts see A Primer on How to Avoid Magical Solutions in Climate Policy.

Prospects for U.S. Nuclear Power After Fukushima


Click to embiggen

The chairman of one of the largest U.S. nuclear companies recently said that his company would not break ground on a new nuclear plant in the United States until the price of natural gas was more than double today’s level and carbon emissions cost $25 of ton. This seems to pretty well summarize the current prospects for U.S. nuclear power.

This paper by Lucas W. Davis (Haas School of Business UC Berkeley) is an excellent summary of the US situation as of 2011, and a good source of references for your research on nuclear construction costs. Davis is not attempting to predict the future; he is drawing inferences from the historical data. That is a depressing picture — with the 2011 evidence indicating that US nuclear suppliers have not learned even the French lessons. 

Many within the nuclear industry claim that the industry is headed more toward the French model. A chairman of a major nuclear power company recently reported that new reactors would be standardized down to “the carpeting and wallpaper”. However, this claim does not appear to be supported by the license applications that have been received to date. Among the 17 applications that have been received by the NRC, there is a mix of both pressurized water reactors and boiling water reactors, manufactured by five different reactor manufacturers (Areva, Westinghouse, Mitsubishi, GE-Hitachi, and GE). Thus, it may well be the case that the industry will soon coalesce around a very small number of designs, but this is not immediately obvious based on these initial applications. At a minimum it seems clear that the French approach of supporting a single reactor design is not going to be adopted here.

Will China lead the world out of this pit by creating a mass manufacturing supply chain for two or three standard designs?