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If Sweden Can Do It, Can't Santa Barbara?
5.30.06   Tam Hunt, President, Community Renewable Solutions, LLC

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    Sweden surprised the world last year by announcing its intention to get off oil by 2020. We’d like to think the Swedes got the idea here in Santa Barbara, California - the Community Environmental Council, based in Santa Barbara, has been calling for “fossil free by 2033” for a couple of years, and the City of Santa Barbara is performing a greenhouse gas inventory and is on its way to adopting similarly ambitious goals for its energy use.

    Alas, we can’t really take credit for Sweden’s aspirations – great ideas often come at about the same time to different people. It’s not hard in this case to discern what prompted our concerns about fossil fuels around the same time policymakers in Sweden became concerned enough to set hugely ambitious national goals.

    Here are the highlights: climate change concerns are growing ever more urgent as more and more evidence comes to light indicating that our climate may be changing even faster than previously predicted.

    “Peak oil” – the point at which global oil production reaches its maximum – may have already arrived, and if it’s not already here, it’s not far off. A recent report from the U.S. Army Corps of Engineers states: “We are at or near a peak in global oil production.” There is growing evidence that the large increase in oil prices (and gas prices) may be related to peak oil concerns as demand outpaces supply.

    Air pollution continues to dog our cities and the major culprit is the burning of fossil fuels like oil and gas. Los Angeles recently re-gained the title for most polluted city (Houston, Texas, took it from us for a few years), so with California’s population continuing to grow, air pollution concerns will only get worse unless we seriously change our fuel mix and transportation systems.

    Last, but not least, global geopolitics has always been at least in part motivated by energy concerns. Today, the Great Game is being overtly played over oil and other energy supplies – petro-diplomacy is the name of the game now as the United States, India, Japan, China and Europe compete for the remaining resources. Think of it as chess with offshore oil rigs as rooks and LNG tankers as pawns.

    Sweden, a country of just nine million (compared to California's 36 million) and a land mass slightly larger than California, currently generates 34 percent of its total energy demand (including electricity, natural gas and transportation fuels) from renewables – primarily biomass, hydropower and wind power. Of the country’s remaining energy demand, about 40 percent comes from oil, 14 percent from nuclear power, and the rest from various sources, including natural gas.

    A large new development in the city of Malmo, in southern Sweden, is already fossil free. The “Bo01” area of Malmo obtains all its energy needs from locally available renewable energy sources such as wind, biomass, solar and geothermal power.

    Sweden plans to grow its biofuels, biomass and wind industries to meet its goal of eliminating its reliance on oil, at the same time as it gradually shuts down its nuclear power plants in response to a popular referendum. Because of the far north location, solar power will probably not be a large part of the power mix.

    Will Sweden reach its goal? It takes a long time for major changes in national energy policies, but Sweden could certainly get off oil by 2020 if its current popular and political will continues, especially if oil prices continue their upward march.

    Here in Santa Barbara, we’ve given ourselves 27 years to get off fossil fuels, but it could be done much sooner if we all get behind this goal. We are indeed blessed with amazing natural resources here in our county: solar, wind, biomass, geothermal, ocean power, biofuels and great opportunities to increase the efficiency with which we use energy. With oil and natural gas prices skyrocketing, it is now even clearer that renewable energy isn’t “just” an environmental concern any more – it’s a matter of economics. Wind power is already cheaper than fossil fuel energy in some places around the country. Ethanol and biodiesel can be cheaper than gasoline. And energy efficiency projects are generally the lowest cost “source” of new energy.

    We have indeed reached the point that we can pursue renewable energy and energy efficiency based purely on economic motivations. As prices for fossil fuels and nuclear power continue their upward march, renewables will only become more and more economically favorable. Yes, we can have our cake and eat it too by doing good for the environment while also doing well for our regional economy.

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    Readers Comments

    Date Comment
    Ferdinand E. Banks
    5.30.06
    Tam

    I must have lost my cotton-picking mind or something, going around the world telling people that more than 90% of Swedish electricity is generated by nuclear and hydro, and if they hadn't closed those two reactors, and allowed an exploitation of some of the remaining hydro, it would be more than 95%. However, like you, I'm an optimist: with a little luck, by 2020 it will be up to 95%. As for the other 5 percent, it doesn't really make any difference if it's sun, wind, biomass or buffalo chips, since it's mainly of symbolic value: a play for the gallery.

    When it comes to going off oil by 2020, that idea came from the fertile brain of the Swedish energy minister, Ms Sahlin, one of Sweden's celebrity politicians who knows as much about energy as I do about brain surgery. She played an important part in convincing a significant fraction of the television audience that it made sense to enter one of the most parasitical organizations in the world, the EU, just as she has always espoused taking money from hospitals, schools and welfare in Sweden, and sending it to various stone-age countries, as well as Brussels.

    As for the future of Malmö, although it has many advantages, by 2020 it may be a Third World city, thanks to Swedish membership in the EU. If this turns out to be the case, it won't be of interest how it satisfies its energy 'needs'! Which brings me to a key question in this 'comment': how could anyone lucky enough to live in Santa Barbara be interested in what happens in Malmö?

    Len Gould
    5.30.06
    "As prices for fossil fuels and nuclear power continue their upward march" nuclear? certainly that argument could be used against the installation of wind and solar power equally well, eg. simply following the market price.

    Edward Reid, Jr.
    5.30.06
    Source of opportunity "Wind power is already cheaper than (reliable) fossil fuel energy in some places around the country." You're comparing apples and opals again! The "bare bones" cost of power which is there when it's there and not when it's not is meaningless.

    Tam Hunt
    5.30.06
    Fred, I will see you in Sweden this fall and we can spar in person! I look forward to learning more about your insights into Sweden's energy situation. As for Sahlin, even if she isn't the Einstein of energy (which I have no opinion on), her aspirations and her ability to promote visionary goals are marvelous. Who knows, Sweden may actually do what she's calling for.

    Tam Hunt
    5.30.06
    Edward,

    It's entirely fair to cite the cost of wind power as I did, even if it does require a functioning grid to back it up. In California, each power source is provided, by the Independent System Operator (grid operator), a "capacity credit." Wind, depending on its location, is granted a capacity credit of about 30-40%, and changes as a three year average of actual past production. This is the same system used for any type of generation, with fossil fuel sources and nuclear receiving, of course, higher capacity credits. The point is: every technology requires the grid to help its value. The largest nuclear plant in the US, Palo Verde, in Arizona, has been down for a week at a time a few times in the past year. At 4 GW for that power plant, can you estimate for me the balancing generation required to offset that massive offline power source?

    Also, have you seen the new Utility Wind Integration Group's study on the costs of wind integration in the US? As has been stated by many folks recently, they find that wind power could provide 20% of total US electricity without much additional cost for balancing. The study can be found at: http://www.uwig.org/UWIGWindIntegration052006.pdf.

    Tam Hunt
    5.30.06
    Len, I'm not sure what figures you're referring to re the costs of wind and solar power. Could you forward me the information? Re the cost of wind at certain projects, I have noticed a pretty large variation among projects that release such information. For example, I've seen that Xcel in Colorado pays as little as 3.8 c/kWh for wind, but that new projects in California can command as high as 6 c/kWh. I suspect wind developers will charge as much as they can - like most private entities - such that as the traditional generation costs go up (natural gas, etc.), wind developers can charge more for their product also, even if the actual cost of producion is going down or remaining stable. Steel costs have, of course, risen sharply in recent years, adding some cost to wind generation, but I would hope that the general principle of cost savings through economies of scale will continue working its magic and will continue the downward trend of wind energy production before too long. And I hope that these cost savings are indeed passed on to consumers also.

    Len Gould
    5.30.06
    "He said it is difficult for new plants - most of which are gas-fired - to compete with lower-cost nuclear and hydroelectric power plants .... Nuclear and hydro plants provide Ontario with cheap base electricity," Then in a following paragraph, it states "It casts a cloud over the market, {he said}. There is no private-sector test they have to meet. It's very hard to envision a private-sector company putting $3-billion into a 30-year-old nuclear plant."

    That was Sithe Energy of NY in a 2002 submission to the OEB discussing why they refuse to construct new gas generation in Ontario.

    They had their nose out of joint because even in 2002, with the low prices of that time, their Natural Gas generation couldn't compete with the privatized but majority government sharehold OPG. And Re. "Spending money on a 30 yr old nuclear plant", $3 billion to refurbish 4.5 GW of 30 yr old nucleargeneration is low, and very worthwhile.

    http://www.cleanair.web.net/media/nov402.html

    Len Gould
    5.30.06
    (Though I agree, a private sector company investing $3 billion in refurbishing nuclear IS hard to envision. Not because it doesn't make economic sense, just that they'd rather not, for a long list of reasons.)

    Don Giegler
    5.30.06
    Present CA electric energy market immunity from forced outages like PVNGS U1 extended shutdown to repair shutdown cooling valve vibration (1243 MW(e) from 3/30 to 4/23/06 for those who care) is quite likely due to the fortunate presence of the "source of opportunity" hydro Edward cites. Unlike March and April of 2001 when spot electricity prices were high because hydro conditions in the Northwest were at 50% of normal, planned and unplanned outages caused tight supply of Western region resources and natural gas prices continued high; weekly average hydro generation levels in the CAISO balancing area were at five-year highs in March 2006 and surged higher to 5000 MW(e) by 4/30/06. "Source of opportunity" hydro in 2006, unlike 2001, has saved CA's electric energy bacon. Along with a propitious dip in NG prices to around $6/MM BTU that futures indicate is transitory, the fortunate circumstances have so far prevented demonstration of the "meaninglessness" that Edward mentions. The presence of "source of opportunity" hydro masks "...the folly of the policy our wonk is pushing..." - for now.

    Ferdinand E. Banks
    5.31.06
    Tam

    If you want to spar with someone, you should come to Stockholm about the time that Fred Singer does a gig on anti-global warming at the Royal Institute of Technology. I'm sure that he will accomodate you.

    As for that line in your comment, "Even if she isn't the Einstein of energy, her aspirations and her ability to promote visionary goals are marvelous", this is COMPLETELY wrong, to include the parf about her NOT being the Einstein of energy. In the present Swedish context, Ms Sahlin is both the Einstein and Newton of energy, while the engineers and executives who shake their heads when they hear her sounding off have been relegated to know-nothings.

    Joseph Somsel
    6.3.06
    Having lived adjacent to Santa Barbara County and visited regularly, I'm a bit amazed at the claim that the county will be fossil fuel free by 2033. It is a big county with a dense concentration of population along its southern coast with a major agricultural center over the mountains to the north. Other than oil & gas and the military at Vanderburg Air Force Base, it lacks heavy industry.

    I also well understand the dynamics of the local politics in California counties like Santa Barbara. The local celebrities and the academics team up with the local environmentalists to push for symbolic gestures by local governments - the working people politely ignore the Limousine Liberals. Remember "nuclear free zones" so popular in the 80's?

    What are the specifics? Are the high value, exportable ag products of the north (wine, avocados, etc) to be plowed under to grow switch grass? What will the users of the resultant biofuels use to pay the biofuel growers and producers? Will switch grass be more profitable than, say, a fine Pinot Noir?

    Perhaps everyone will drive around in golf carts? Are you to electrify the rail link between Santa Maria and Santa Barbara?

    A quick look at the California Energy Commission's queue of future power plants awaiting permitting shows that almost all future electric plants in the state are to be fueled with natural gas. Is Santa Barbara County to be an exporter of wind power? If so, why hasn't profitable development already started?

    The Devil is in the details, and there are no details here.

    Don Giegler
    6.5.06
    Your last comment, Tam, reminds me of a story. The saga took place during the U.S. hyperinflation of 1976 to 1980. New COO blood was introduced into the effort to produce electricity with HTGRs. The gentleman and his new lieutenants decided that the program lacked sufficient regard for "economies of scale" and a program to produce a behemoth that drove 1500 MW(e) loads was initiated. Unlike your, perhaps unintended, wish for windmills, the idea was that the magic would cause an UPWARD trend in HTGR electric energy production. The task of finding main steam isolation valves for 2200 psig, 1000 degree F steam fell to a displaced control system engineer. One after another, U.S. vendors stated that a firm 30-day price for such a work of art would not be possible even for cost-estimating purposes. Finally Sulzer Company in Switzerland allowed that they would do their best. For the flows and steam conditions involved, a 40-inch diameter valve that weighed in at about 40 tons was assigned a price of $10,000/inch. The control system engineer crossed his fingers and questioned, "That price includes delivery to the plant site doesn't it?" Replied the Sulzer representative, "No sir, that's the price at the door of our manufacturing facility. We leave to you the valve's transport to the plant site!"

    Tam Hunt
    6.6.06
    Joseph, visit www.fossilfreeby33.org for a little more info. We're currently finalizing our very detailed blueprint describing exactly how we reach our goals. The short answer is: energy efficiency, wind power, concentrating solar power, plug-in hybrids, biofuels and ocean power. We have far more renewable resources than we need. In other words, the technical potential is there. The issue is economic potential: can we reach our goals in a cost-effective fashion? With the state's environmental adder (designed to levelize the cost of renewables vis a vis GHG emitting fossil fuels) and other state and federal incentives, we feel confident that the true cost of fossil fuels and nuclear will be realized and that policymakers and consumers at every level will realize that renewables and energy efficiency are no-brainers from an economic as well as an environmental point of view.

    Tam Hunt
    6.6.06
    Don, re Palo Verde and the reasons for its shutdown - more than a dozen over the last two years, see this piece describing the mechanical problems that lead to reactor shutdowns: http://www.energycentral.com/centers/news/daily/printer_friendly.cfm?aid=6260033

    Even if the shutdowns were for only one reactor at a time (which isn't clear from the story for the shutdowns prior to this most recent shut down), that's still 1.33 GW going off line for a week at a time. That requires some serious balancing load, no?

    Edward, any luck in finding the figures re the costs of balancing such large power outages from nuclear plants???

    Don Giegler
    6.6.06
    Tam, somehow you don't seem to be following what's written too well. Let's try again. In April 2006 for the CAISO balancing area, the combination of scheduled and forced outage levels were about 15,000 MW per day for most of the month. This included whatever fraction of the load (considerably less than 1243 MW) PVNGS U1 was NOT selling into the CAISO balancing area. Quite obviously, a number of other sources (non-nuclear at that) experienced scheduled and forced outages. CAISO's minimum load cost compensation doubled from $13.4 million in March 2006 to $27.6 million in April 2006 due to transmission and generation outages. "Source of Opportunity" hydro and other base load sources including DCNPP and SONGS , not EE, not your pet windmills, kept CA electric energy prices down during March 2006 and April 2006. Bye the bye, PVNGS U1 gross generation for 2004 was 9,832,236 MWh with a gross capacity factor of 82.43% (an off-year for that unit).

    Tam Hunt
    6.12.06
    Don, if the piece I linked is to be believed, there have been many unscheduled outages of reactors at PVNGS. The point I raised was in response to Edward's criticism of not including "balancing costs" in costs for wind power. My point was that any power source requires the grid to firm it up, so it is entirely valid to state the generation cost for wind power, without including the costs of other generation sources on the grid. As I've also mentioned, a few studies over the last year have found that the additional balancing generation needed for wind power to reach a 20% penetration level is minimal, so the actual balancing cost for up to 20% wind would in fact be quite small even if we were to include it.

    Don Giegler
    6.13.06
    Tam, you came close to understanding Edward's point with that bit of fumbling about CAISO capacity credits. Doesn't seem like the vaccination "took" though. Looks like you've misconstrued his "apples to opals" comment or maybe the tutorial he presented on reliability. Believe he was trying to demonstrate what it would take to come up with a wind generation strategy to replace high capacity factor generation with wind generation. Perhaps you can step up to the plate as an intervenor and ask CAISO for the "balancing costs" they may someday use for wind generation. It's fast beginning to look like the proverbial," With friends like you, renewable energy researchers need no enemies!"

    Tam Hunt
    6.13.06
    Don, I believe it is you who is missing the point. Are you stating that the piece I linked to, finding that PVNGS' reactors have shut down for a week or more a dozen times in the last year - due to mechanical problems apparently (though it's not entirely clear from the piece) - is wrong? Are you stating that all shutdowns were due to source of opportunity? Either way, read IEA's detailed analysis of the variabiity of wind power:

    http://www.iea.org/textbase/papers/2005/variability.pdf.

    Also read the UK's Energy Research Center's recent report finding that the UK could achieve 20% penetration levels while adding insignificant costs to consumers (and minimal balancing generation):

    http://www.ukerc.ac.uk/content/view/259/953 (scroll to the bottom for a link to the actual report).

    Or see UWIG's recent analysis (with APPA and Edison Electric as partners) reaching similar conclusions for the US:

    http://www.uwig.org/UWIGWindIntegration052006.pdf.

    Len Gould
    6.13.06
    Tam states " As I've also mentioned, a few studies over the last year have found that the additional balancing generation needed for wind power to reach a 20% penetration level is minimal"

    carefully ignoring the fact that no-one is disputing the likely acceptability of unreliable "new sources" UP TO NEAR THE LIMIT OF AVAILABLE RELIABLE BACKUP already connected. (which limit is currently dropping rapidly due to the "efficiencies" of privatization well below the traditional 20% most areas). The real discussion I and most others are engaged in is "What happens with new wind generation once it begins to exceed eg. 15% of connected kw, eg. generating more than 5% of kwhr sold?" That statement casts wind power in a more rational light when discussing eg. nuclear or dirty coal as options.

    Ferdinand E. Banks
    6.14.06
    You've asked a fair question, Tam: "If Sweden can do it, can't Santa Barbara?" In fact we can improve on that: If Sweden can do it, can't California? By doing it I'm referring to generating 45 percent of their electricity with nuclear.

    I don't know what the situation is today, but before the curse of electric deregulation, this country (and Norway) produced the lowest cost electricity in the world, and it might have been the most reliable. But don't mention this when you meet your colleagues in the Swedish environmental party: better to serve in Hell than rule in Heaven is the future that they aspire to.

    Joseph Somsel
    6.14.06
    Read your plans.

    I agree with solar hot water. I've long thought this would be an appropriate investment for individual hoeowners. One could use government programs to encourage installation on rental properties too. That will save some natural gas and might make an impact on winter heating loads too, such as they are.

    I'll also agree with landfill gas. I took a look as some potential sites in San Luis Obispo County to the north a few years back at the suggestion of a county supervisor and these generally have merit, especially since the EPA required landfill owners to install landfil gas collection systems, and thereby moving some capital expense from generation to regulatory compliance accounts. Your 12 MW sounds generous and is subject to seasonable variations but is a drop in the bucket to total electric demand.

    Your claim of 500 MWe of wind power capacity in the county is strange since the wind resouces developed to date have been elsewhere. Also, the California AVERAGE capacity factor for wind is 25% per the EIA but you claim that the new Santa Barbara resources will give you 35%. Why would less rich resources elsewhere in the state have been exploited before those in Santa Barbara? Besides, the only really windy spots I remember were out on Vanderburg AFB and would need substantial transmission upgrades.

    You also don't provide a clear boundary, allowing you to import power of your choice from elsewhere and credit it to your project.

    Overall, your plan still doesn't add up.

    I agree with Prof. Banks - more nuclear power is the answer. While LNG terminal(s) in California are inevitable, the gas should be reserved for uses other than electric generation for which a perfect substitute, new nuclear power, can be provided, given the will.

    Tam Hunt
    6.19.06
    Joseph,

    Re wind in our region, there is an application pending for 120 MW of new wind in our county and rumors of another similarly sized farm application before too long. We've completed our wind power chapter of our Blueprint, working with a team at UC Berkeley, which finds enormous wind power potential in our region - particularly off our coastline, which of course poses many technical and political problems before it can be developed. As to why other areas have been tapped before our region, I'm told by developers that the low-hanging fruit was inland, where development hurdles are much lower. CA coast-dwellers love their views... As for capacity factors, the farm proposed recently projects a relatively good capacity factor, I believe in the 35% range or so.

    Malcolm Rawlingson
    7.25.06
    Tam, Yes I do believe you are right that the coastal dwellers of Califiornia love their views and would not like much to have the landscape and sea scape cluttered with windmills. Shame on them I guess for wanting to keep the beauty of their natural surroundings uncluttered by windmills. Looks like the folks on Martha's Vineyard feel the same. What I conclude form that is there is significant public opposition to construction of windmills all over the place. Yet in order to produce anything like the amounts of electrical power needed you would need tens of thousands of windmills on thousands of sites. I think it is fair to assume that once that reality takes effect public opposition will grow exponentially. It already has hit home in the UK where the Government has done a complete reversal of its position and decided to build nuclear power plants. The reality is that wind driven electric generators cannot supply the electricity needs of a modern economy without completely blanketting the countryside with thousands and thousands of windmills. At 2 MW each you would need 500 windmills to replace a single1000 MW PWR that is if BOTH have the same capacity factor. To produce your 1000MW a you would need 1.1 PWR's at 90% capacity factor. To produce the same amount of power with windmills of 2 MW capacity you would need 1428 windmills using your 35% capacity factor number. The footprint of 1428 windmills is enourmous. The footprint of a PWR site is small by comparison. So the question is going to be whether the public will accept hundreds of square miles of land and coastline versus a few very safe nuclear plants in inconspicous locations. I think by the growing opposition to this idea in Califiornia that you already know the answer to that.

    The capacity factor you quote of 35% would bring hoots of derision in any nuclear power plant operators boardroom. US nuclear plants routinely have capacity factors above 90% average and individual plants are close to 100%. To invest in a plant that runs (at best) only 3.5 days out of 10 average is somewhat comical. Not a very good investment of money or resources in my opinion.

    I am not against windmills just the notion that they could supply the power needs of North America without serious damage to the landscape and our natuaral environment. One or two - sure if you can make em pay but tens - hundreds of thousands of them across North America...not going to happen.

    Malcolm

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