White House Chronicle

News Analysis With a Sense of Humor

  • Home
  • King’s Commentaries
  • Random Features
  • Photos
  • Public Speaker
  • WHC Episodes
  • About WHC
  • Carrying Stations
  • ME/CFS Alert
  • Contact Us

Disruptive Technology Hits Electric Industry

June 23, 2013 by White House Chronicle 6 Comments

If you are reading this by electric light, you are connected to the electric grid Unless, that is, you are one of an infinitesimal number of home owners who installed solar panels.
 
The penetration of solar panels may be statistically insignificant today, but to the electric industry these panels, and other self-generating schemes, are like dry rot: a threat to the whole edifice.
 
It is not just those panels that are beginning to disrupt the electrical grid, but the whole panoply of alternative technology; wind, geothermal heat, micro-hydro turbines and scattered natural gas turbines all fit into a new category of electric generation known as “distributed generation.”
 
The change is so threatening to the investor-owned electric utilities and their not-for-profit colleagues in the public power sector that it has begun to dominate discussions on the Web and wherever utility executives gather.
 
Early this year the Edison Electric Institute (EEI), which represents the investor-owned utilities that provide 70 percent of U.S. electricity, issued a white paper discussing the disruptive changes that are beginning to threaten the old electric paradigm. The theme of change also dominated the EEI annual convention in San Francisco earlier this month, with CEOs talking about a “new business model,” although they were hard put to say what this will be.
 
The root cause of the problem is that the new entrants into generating treat the grid as kind of open marriage: there when it suits them. A home owner, might be self-sufficient in electricity, and even generate enough to sell a small portion back, to the grid 90 percent of the time; but during prolonged bad weather, or if the home system is down for maintenance, that home owner expects to flip a switch and go back on the grid. The local utility, all the while, has been standing by hoping to sell that home owner a few watts until the home system returns to power.
 
This applies even more so to large users of electricity, including factories and big retailers. Many of the factory customers generate nearly all of their own electricity already and big retailers are getting in the game. Walmart is covering its store roofs with solar cells. McDonalds has eyed self-generating for years, but not without the comforting assurance that the grid will always be there.
 
All of this distorts the financial as well as the physical infrastructure of the utility industry and produces social problems as well. Ted Craver, CEO of Edison International, the parent company of Southern California Edison, told the EEI conference that as California is “ground zero” for rooftop solar, you have to ask “are you creating a system of those who have means for self- generating and shifting the burden to the have-nots? It is a social fairness question.”
 
The system is also skewed, Craver noted, by subsidies for alternative generation. He called for a flexible system that allows for these new realities.
 
Another threat, according to Tom Fanning, CEO of the giant Southern Company, comes to the ability of utilities — one of the most capital-intensive industries is the world– to raise money. “Our industry raises about $90 billion a year and we need policies that support that,” he said.
 
There are other problems facing the electricity industry, which are cataloged in an amusing and readable book by economist Steven Mitnick, “Lines Down.” While Mitnick is more optimistic about the future of the grid than many, he says it needs fixing. It has been starved of investment and needs upgrading, particularly hardening against the storm outages that are standard in America but not in Europe, Japan and South Korea.
 
The future of the grid is not in the hands of the utilities alone, but also the regulators, federal and state, and politicians. That means that the new paradigm may be a long time in coming, while another aspect of the U.S. infrastructure deteriorates. — For the Hearst New York Times Syndicate

 
 
 
 
 
 
 
 

Filed Under: King's Commentaries Tagged With: alternative energy, disruptive technology, Edison Electric Institute, Edison International, electric utility industry, solar energy, Southern Company, Steven Mitnick, Ted Craver, Tom Fanning

Cautious Obama is Hurting Future Oil and Electricity Supply

July 9, 2010 by White House Chronicle 8 Comments



From somewhere–inside the White House or the Department of Energy–President Obama is getting some pretty awful advice. It’s bad enough that he’s been persuaded that there’s a Nirvana Land of windmills and sunbeams in the future of electricity. But much more gravely in halting drilling in the Gulf of Mexico, he’s committing a fearsome folly.


If exploration and drilling in the Gulf doesn’t resume and gets caught up in punitive new rules, Obama, or his successor, will find the price of gasoline high (probably more than $5 a gallon) and military action against Iran will be proscribed.


It goes like this: After 18 months the supply of replacement oil from the Gulf dries up, due to the normal decline in production from old wells. Very soon, this loss exceeds 1 million barrels a day and begins to increase the world oil price,


World oil production today is 86.5 million barrels per day; of this, the United States gulps down an amazing 20 million barrels per day. This delicate balance, helped by the global recession, keeps the price bouncing between $70 and $80 per barrel.


Worst case is not only do we lose production in the Gulf, but any global upset–such as military action in Iran–will stress this oil production-demand balance further. Result: price rises. Political solution: none.


The folly of the Obama action is that every new hole drilled in deep water is going to be safer-than-safe.


There’s a well-known pattern: Disasters produce an aftermath of safety. The nuclear industry thought it was safe before the Three Mile Island meltdown, but it went back to the drawing board and produced new institutions for safety monitoring and study, as well as revised the very idea of defense in-depth.


The Obama caution is the danger, not the possibility of another spill.


The second energy disaster in the making is with electricity. The Obama administration has signed on to a vague idea, pushed by environmentalists and post-industrial schemers: It goes by the appropriately loose title of “alternative energy.”


In real-world terms, alternative energy can be narrowed to some solar

and wind. In fact, the only mature technology is wind. It works fine when the wind is blowing. The heat wave in the Eastern states in the past week makes the point: The wind doesn’t blow when it’s most needed.


There’s nothing wrong with wind, except that its most passionate advocates often favor it not for its own sake but for what it is not: nuclear power. Paranoia over nuclear power–always the first choice of the world’s utilities, if all things are equal–is a part of the cultural-political landscape in America.


Faced with this, the Obama administration has saddled up two horses and invited the nuclear industry to ride both as they diverge. It has thrown away the $11 billion spent on the first national nuclear-waste repository at Yucca Mountain in Nevada, even as it has offered loan guarantees for new reactors.


Coming down the pike is a surge, a really huge surge, in electricity demand as plug-in hybrid cars and pure electric cars are deployed.


The plan–if you can call it that–is that the load of new uses will be spread by “smart meters” on the “smart grid,” and this will direct or coerce consumers to charge their cars in the middle of the night.


Fat chance. If consumers were that financially or morally conscious, they’d long since have cut their electric loads and driven smaller cars.


Want to be politically unpopular? Start telling people when they can refuel their cars. That’s known around the Tea Party circuit and elsewhere as government intervention.

Do you take yours with sugar? –For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: BP, Gulf oil disaster, nuclear energy, plug-in hybrids, President Obama, smart grid, smart meters, solar energy, Three Mile Island, wind energy

White House Chronicle on Social

  • Facebook
  • Twitter
  • Vimeo
  • YouTube
Censorship Isn’t the Solution to Social Media’s Ills

Censorship Isn’t the Solution to Social Media’s Ills

Llewellyn King

Technology is tampering with freedom of speech, and we don’t know what to do about it. At issue are the global platforms Facebook, Twitter and Instagram and the disturbing propaganda, disinformation and lies propagated on them. The inclination, on the left and the right, is to censor. It is a terrible solution, more toxic and […]

Many Newspapers Are on Death Row; Will They Be Reprieved?

Many Newspapers Are on Death Row; Will They Be Reprieved?

Llewellyn King

Newspapers are on death row. The once great provincial newspapers of this country, indeed of many countries, often look like pamphlets. Others have already been executed by the market. The cause is simple enough: Disrupting technology in the form of the internet has lured away most of their advertising revenue. To make up the shortfall, […]

Fighting Wildfire With Fire, Lessons From Georgia and Florida

Fighting Wildfire With Fire, Lessons From Georgia and Florida

Llewellyn King

Did the fire at the end of Walt Disney’s iconic animated movie “Bambi” prejudice the country against forest management with controlled burning? Maybe so. The U.S. Energy Association in February presented a virtual media briefing on the fire threat in the West and the Southwest this year. The prognosis, especially from the weather forecasting company […]

Dark Clouds on the Horizon for Electric Vehicle Batteries

Dark Clouds on the Horizon for Electric Vehicle Batteries

Llewellyn King

The move to renewable energy sources and electrified transportation constitutes a megatrend, a global seismic shift in energy production, storage and consumption. But there are dark clouds forming, clouds reminiscent of another time. The United States has handed over the supply chain for this future to offshore suppliers of the critical materials used in the […]

Copyright © 2022 · White House Chronicle Theme on Genesis Framework · WordPress · Log in