Sunday 20 May 2012

What's wrong with cheap energy anyway?

Whilst I don't agree with a few things in this article, I do agree with these points:

For one thing should now be clear: The key to decarbonizing our economy will be developing cheap alternatives that can cost-effectively replace fossil fuels. There simply is no substitute for making clean energy cheap.


Government funded research aiming to make energy cheap, clean and abundant is surely a better approach to our energy issues than government regulation aimed at making energy more expensive.

10 comments:

Rob said...

Direct government funded research is a disaster, governments are shit at targeting the research they don't have the technical expertise to direct the research in an effective way, the research grants get rorted and wasted. The most efficient way for governments to spur R&D is to increase market interest in the product, companies then invest and direct R&D effectively so the technology evolves. Industry is far more interested in directing R&D into projects which will actually result in cost reductions to further increase sales and they have the technical expertise to choose areas of research with potential so there is less waste. Basically the private sector will conduct far more targeted and efficient research if you give them a reason to do it, subsidies temporarily boost demand giving industry the motive to perform that research. Then after that evolution has occurred and costs have fallen so that the technology is cost competitive the subsidies can be phased out.
This is exactly what has occurred with solar, demand was stimulated by subsidies, companies invested in manufacturing and technology giving them technical advances and economies of scale and the result has been enormous price reductions such that subsidies are now being phased out with a view to being removed altogether within 1-2 years.

Rob said...

Direct government funded research is a disaster, governments are shit at targeting the research they don't have the technical expertise to direct the research in an effective way, the research grants get rorted and wasted. The most efficient way for governments to spur R&D is to increase market interest in the product, companies then invest and direct R&D effectively so the technology evolves. Industry is far more interested in directing R&D into projects which will actually result in cost reductions to further increase sales and they have the technical expertise to choose areas of research with potential so there is less waste. Basically the private sector will conduct far more targeted and efficient research if you give them a reason to do it, subsidies temporarily boost demand giving industry the motive to perform that research. Then after that evolution has occurred and costs have fallen so that the technology is cost competitive the subsidies can be phased out.
This is exactly what has occurred with solar, demand was stimulated by subsidies, companies invested in manufacturing and technology giving them technical advances and economies of scale and the result has been enormous price reductions such that subsidies are now being phased out with a view to being removed altogether within 1-2 years.

Anonymous said...

... and just like a step is to a Dalek, _ _ _ _ _ is to Solar.

I'll give you a hint Rob, it's when the sun doesn't shine.

Rob said...

Intermittency of renewables is one of the major areas of research to help its integration, it's certainly not insurmountable like a step to a Dalek. Concentrated solar thermal plants have already demonstrated 24 hour power output using molten salt heat storage. Demand response, grid storage and rapid dispatch spinning reserve like gas turbines and hydro are all areas of potential for mitigating the effects of renewable intermittency. In the meantime solar PV output happens to rather tightly match peak demand so until very large amounts of PV is installed, much higher then what as been installed so far in Australia, PV output plays a useful role in reducing peak grid generation and transmission demand by producing power at the point of use, this quickly begins to have a noticeable effect on reducing the need for new investment in peaking generation and distribution capacity.

Anonymous said...

...the sun seems to shine when we need it... Really, thats the answer... Wow...

Rob said...

...using...lots of....ellipses...doesn't...make it...any less...true. It was far from the only factor I pointed out but the fact that solar output closely matches grid peak demand is a useful coincidence and makes its integration into the grid technically easier.

Anonymous said...

Touchy... Spruking pages of waffle doesn't make it any more true either Rob...

Rob said...

And yet you haven't actually responded to any of the mitigating factors I suggested for the issue of renewable intermittency. The closest thing to a factual argument you have come up with is to compare solar to a Doctor Who character, whos post's are waffle again?

Anonymous said...

Rob, you use 143 words to say "They're working it"... and you have to ask?

Anonymous said...

Don't know why anyone would be worried about Daleks, solar powered or otherwise. These funny buggers can only get around on a level surface, go upstairs and they can't get you.