The King will come

Sir David King, former chief scientific adviser to the UK government, has not retired into quiet obscurity since leaving that position. He co-authored the book The Hot Topic (reviewed here) in 2008 and works as director of the Smith School of Enterprise and the Environment at Oxford, which addresses the major environmental threats and opportunities facing the world. He’s written two articles in recent days which seemed to me worthy of mention. Yesterday in New Scientisthe urged readers not to despair despite the apparent lack of progress at the recent Bonn talks.

He acknowledges that there’s reason for gloom at the failure of December’s Copenhagen summit to come up with a successor to Kyoto — failure which he puts down to a combination of serious organisational issues and glaring, often naïve, political errors. He describes the end result as “the victory of unambitious realpolitik over correct, but wishful, thinking.” But some positives resulted.

First,  climate change now has the full attention of the world. “The anger of poorer nations is a powerful and lucid expression of their full appreciation of the scale of the problem.” Second, we realise that a single collective leap won’t bring a successor to Kyoto. Third, we now have global agreement to avoid a dangerous 2 degree temperature rise and deforestation is now part of agreements.

However, the main reason for his optimism is that he sees alternative ways to regulate carbon through national and regional commitments to emissions trading.

He points to the European Union whose Emission Trading System is the largest of its kind in the world. If the US introduces its own version, Mexico’s president is keen to join and wants to see Canada sign up too, forming a North American trading group. Another emissions trading market may emerge among the Association of Southeast Asian Nations.

Harmonising such parallel markets would be a challenge, especially for international trade policy, but co-ordinating across a small number of commodity markets is likely to be easier than across a large number of sovereign states. There is the issue of regional schemes initially leading to industries in different parts of the world paying different prices for emitting carbon and thus giving an advantage to manufacturers in regions where the price of polluting is low. King’s reply is that high-price countries would impose tariffs on imports from low-price regions to level things up. He has said elsewhere that if this causes trouble with the WTO it also presents an opportunity for the WTO to step in and “persuade nations to get their act together”.

He is sceptical about attempts to create multibillion-dollar funds to help poorer nations adapt to climate change, since he’s not sure that the pledges of the developed world are credible. A better approach in his view would be to extend existing trading schemes to these nations.

“This would encourage them to develop lower-carbon economies and generate income through taxes on high-carbon imports. It would also unify emissions trading, overtaking troubled efforts to devise a global trading scheme with a single carbon dioxide price. Regardless of the details of the mechanism, it is plain that one of the central challenges for climate policy is to find a credible way to meet the concerns of the poorest countries while offering the right development incentives.”

Add to these factors the increasing confidence of the growing economies of Brazil, Russia, India and China, and King sees hope ahead by the time of the meeting in Rio de Janeiro, Brazil, in 2012, the 20th anniversary of the Earth Summit in the same city that started the Kyoto process.

“We are all custodians of a global commons, and we have moral responsibility to future generations to curb our greenhouse emissions. I am optimistic that Rio can deliver.”

On Sunday, King wrote in the Observer about the different but closely related question of oil supply and demand, under the heading We must abandon oil before it’s too late. In the context of the Gulf of Mexico oil disaster he presses the point that demand for oil may outstrip supply sooner than people realise. Analysis undertaken at Oxford suggests that the IEA is overestimating the reserves in fields yet to be developed by some 30%. He expects oil prices to rise very considerably soon to be more than $100 a barrel, peaking at $130 a barrel by 2015.

The effect of this on importing countries will be harsh, especially on developing countries.  King is scientific adviser to the Rwandan president, Paul Kagame, and has recommended that the country do all it can to decouple its currently rapidly growing economy from oil.

Kicking the oil habit is increasingly necessary for economic reasons, but when added to the imperative to reduce carbon emissions and prevent dangerous climate change he considers the case for change is overwhelming.

He briefly sketches the kind of measures that will need to be taken. The efficiency of transport will need to be increased by reducing air friction, improving engines and running smaller, lighter vehicles. Alternative fuels will be important, moving from petrol to new generations of biofuels, hydrogen fuel cells and electric vehicles. We will also need to go beyond the designs of the vehicles and fuels and look at changing urban design, at building and improving mass transportation systems, and changing the ways that people drive.

His organisation is holding a World Forum on Enterprise and the Environment between 27-29 June in Oxford on the theme of low carbon mobility. There’s an interesting short video clip launching the forum here.

[Wishbone Ash]

People talkin’ (open thread #1)

Further to recent requests by commenters for a place to raise issues not raised in recent posts by Bryan or myself, and to encourage people not to stray off-topic in those discussions, here’s an open thread. Use it wisely. Usual rules. Keep it polite.

[Lucinda Williams]

A mighty wind

WindturbineA recent NZ Wind Energy Association newsletter carries some cheering news — enough, I thought, to deserve a Hot Topicupdate on wind energy. 2009 saw a record 50% capacity growth in wind power in New Zealand. A further 25% capacity growth is expected over the next twelve months. At the beginning of 2009 wind farms were supplying about 2.5% of our elecricity.  Currently wind generation supplies about 4%, and in the last quarter of 2009 wind generation peaked at close to 5% of total generation.

In 2009, increasing wind generation, combined with full hydro lakes, resulted in renewable generation in New Zealand providing 73 per cent of total generation – the highest level of renewable generation since 2004. Consequently emissions from electricity generation during 2009 were down to their lowest level since 2002.

The newsletter comments on the role high levels of emissions-free renewable generation will play in reducing the impact of carbon pricing on electricity prices, as the electricity sector is set to enter the Emissions Trading Scheme later this year.

The Mahinerangi wind farm 70 kilometres west of Dunedin is set to start construction in September of this year, with stage one completed by May 2011. There’s a significant local synergy with the Waipori hydro scheme which TrustPower says will allow better efficiency from Waipori. The wind farm will also improve security of supply for Dunedin and free up for use elsewhere electricity currently being imported into Dunedin from Roxburgh and the Waitaki system.

The newsletter points to the synergy between these two generating schemes as illustrating at regional level what will be achieved on a national scale as wind energy is developed and operated in combination with existing hydro generation. Essentially, the use of wind enables water to be saved in storage lakes, until the water is needed for meeting peaks in demand.

Wind farms benefit regional economies. TrustPower expects the development of Mahinerangi to result in $12 million flowing directly into the local economy. A case study of the Manawatu wind farm Tararua Stage 3 showed significant amounts spent locally during construction and ongoing annual local expenditure by the operating company.

Wind power is on the move globally. The world’s wind power capacity grew by 31% in 2009, adding 37.5 gigawatts (GW) to bring total installations up to 157.9 GW. A third of these additions were made in China. In Europe just over 10GW of wind was installed, making it the leading source of new electricity-generating technology in the region, ahead of natural gas. The prediction is that in 2014, five years from now, global wind capacity will stand at 409 GW.  (New Zealand’s total electricity capacity, from all sources, is around 9 GW.)

There’s some interesting material on prices. Because wind energy is a price taker in the electricity market it displaces more expensive generation, which is typically thermal generation. Uncertainty and risk attend the availability and cost of fuel for thermal generation. The newsletter contrasts this with the confidence about the cost of electricity over the lifespan of wind farms because they have no fuel costs, and low and well-understood operating and maintenance costs.  A report prepared by an independent consultancy for the European Wind Energy Association found that wind power reduces electricity prices. The report reviewed the findings of case studies in Germany, Denmark and Belgium, which show electricity prices were reduced by between 3 and 23 Euros per MWh depending on the amount of wind power on the system. A similar trend is seen in New Zealand in the Manawatu, where wind reduces spot prices by an average of 10 per cent.

The progress of the New Zealand turbine manufacturer Windflow Technology towards achieving international certification for its 500 kW turbine is noted in the newsletter.  It needs only approval of the tower design to complete Class 1A certification, meaning it would be suitable for use at the windiest and most turbulent sites and be capable of surviving gusts of over 250 km/h. The company sees a place for its smaller turbines on exposed ridge top sites.

Ghost riders in the shed

[youtube]C93cL_zDVIM[/youtube]

I was flicking through the channels on the Sky box last night — the 10-30pm news was too depressing to endure — and I stumbled on this amazing programme on the Living Channel. Originally broadcast by the BBC last December, it’s a special edition of science show Bang Goes The Theory, called The Human Power Station. Premise: show just how many energy slaves (in this case, cyclists with dynamos attached to the rear wheels of their bikes) it takes to power a family of four through an ordinary Sunday’s power use. The answer? 70, when Dad takes a shower — see the excerpt above. Oddly compulsive viewing, and informative about energy use, even if one of the presenters can resist expressing energy in units of chocolate digestive biscuits. I can’t find a repeat in the Living Channel schedules, and it’s no longer available on the BBC’s iPlayer, but keep an eye out — it’s well worth watching if you get the chance.

[Duane Eddy]

Offshore energy for export

Ben McNeil’s scenario, in The Clean Industrial Revolution, of Australia as a future source of renewable energy exported to its Asian neighbours was of necessity somewhat speculative. However a major report published this week laid out, in very concrete terms, the possibility of the UK becoming a net exporter of renewable energy, not solar in this case, but garnered from the wind and waves of the sea.

The report of the Offshore Valuation Group was sponsored by the UK Department of Energy and Climate Change, the Scottish government, and a number of large companies. Tasked with estimating the value of the offshore renewable energy resource, the group’s findings exceeded their own  expectations.

 

“The next four decades of technological development could enable us to harness a practical resource ten times the size of today’s planned deployments. Integration with neighbouring electricity networks though a ‘super-grid’ could provide access to a single European electricity market, enabling the UK to sell renewable electricity across the continent.”

The report relied on technologies already either in use or in development: offshore wind with fixed or floating foundations, tidal stream, tidal range, and wave power. It also took into account competing uses of the sea and accessibility constraints.

The resource identified by the report is very large, capable of producing six times as much electricity as is currently used in the UK. The report recognised that electrification of transport and heating will add to demand by 2050, an increase of perhaps 75% on today’s demand. Harnessing 29% of the offshore resource by 2050 would be enough to turn the UK into a net exporter of renewable electricity at an estimated cost of £443 billion with an estimated annual revenue return of £62 billion. The annual production in 2050 would be equivalent to 1 billion barrels of oil. This is the average level of production experienced by the UK’s North Sea oil and gas over the four decades leading up to 2008.

The infrastructure deployment required is similar in scale to that of oil and gas in recent decades.  To deploy the capacity by 2050 would require an average build rate of 7.2GW per year (one thousand 7.5MW turbines per year), including repowering. Of this, 5.4GW would be fixed offshore wind, with the next largest share coming from floating wind. A big plus is that 145,000 jobs could be created in direct roles.

The current EU supergrid negotiations are of major importance to any export development and the report urges that the UK take a leadership role to ensure that the UK derives maximum value from its design and implementation. Government involvement would be essential in many aspects of the development, in cooperation with industry. One is finding ways to develop innovative financing mechanisms that can match the long term risk and reward profile of renewable energy investments. This could take the form of green energy bonds designed either for corporate investors such as pension funds or for individual investors, and should be designed to deliver finance at the required scale; for the 29% harnessing option an average annual investment of £11 billion will be required between 2010 and 2050.

Another role for government is setting a national ambition to become an exporter of offshore renewable electricity. This will provide industry with the confidence it needs to invest for the longer term, it will demonstrate a strong commitment to existing renewable energy and climate targets, and it will help to guide long term policy development on related issues such as energy markets, grid and supply chain development.

The conclusion:

“The UK is now most of the way through its first great offshore energy asset, our stock of hydrocarbon reserves. The central finding of this report is that our second offshore asset, of renewable energy, could be just as valuable. Britain’s extensive offshore experience could now unlock an energy flow that will never run out.”

We wait to see what the policy makers do with the report. Peter Madigan, Head of Offshore Renewables at RenewableUK, was in no doubt about what should happen:

 

“This is a hugely exciting piece of research which sets out compelling factual evidence of the huge potential of the UK’s offshore renewable energy resource. As an association we have long been saying that the North Sea will become the Saudi Arabia of wind energy, and today’s tonne of oil and employment comparisons amply bear this out. Just as 30 years  ago, the North Sea could be our ticket for economic growth. We are looking forward to the new Government putting in place the policy framework to make this happen.”