The Economics of Green Energy

by John Brian Shannon

Back in the old days of sustainable energy, circa 2000, the cost of switching to solar or wind was so expensive that only the well-intentioned considered it — and only the wealthy could afford it.

How times have changed!

Nowadays, utility-scale solar power and wind power are cost-competitive with utility-scale coal-fired and nuclear electrical power generation.

And obviously, solar and wind are much better for the environment.

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That’s not to knock coal, which has provided reliable power for decades and still has a great future in Coal to Liquid fuels — that is, coal processed into extremely pure transportation fuels. Gasoline for your car, diesel for cars, trucks and ships and jet fuel are all created from coal using CTL technology.

South Africa’s SASOL have been using CTL technology successfully since 1955 and 30% of all the transportation fuels in that country are made from domestically-sourced coal. No alterations to vehicle engines or aircraft turbine engines are required to use fuels which are made from coal — as the CTL technology produces almost laboratory-quality fuels when using the Fisher-Tropsch catalytic process.

However, electrical power generation which burns raw coal releases billions of tons of CO2 and carbon monoxide, along with huge amounts of hydrogen sulfide, arsenic, lead, cyanide, sulfur dioxide, nitrous oxide and other toxins into the atmosphere every year — all of which easily cross state lines, national boundaries and even the oceans before settling in both populated areas and farmland.

One brand new coal-fired plant per week is completed and goes into service in China these days and this has been the case since late 2008.

In 2010 for example, China operated 620 coal-fired power plants which burned over 3 billion tons of coal per year. Just the CO2 emissions alone from coal-fired electrical generation in China surpassed 7.2 billion tons in 2010.

Which leads to higher health care costs in both the developing world and the developed world. According to CLPmag.org

“China faces a number of serious environmental issues caused by overpopulation and rapid industrial growth. Water pollution and a resulting shortage of drinking water is one such issue, as is air pollution caused by an over-reliance on coal as fuel. It has been estimated that 410,000 Chinese die as a result of pollution each year.”

In addition to being cost-competitive with coal, solar and wind are also cost-competitive with nuclear. In the case of solar and wind power there is no need for very costly nuclear spent-fuel storage — as some types of nuclear fuel rods must be stored in terrorist-proof bunkers and be constantly-cooled 24 hours per day/365 days per year for up to 20,000 years — without any interruption lasting longer than 36 hours. The cost of just one failure here would be catastrophic.

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Nuclear power has been statistically safe – with only one serious incident about every ten years on average. However, we have seen deaths caused by exposure to radioactive emissions from nuclear power plant accidents and indirect adverse health effects on population centres near nuclear disaster sites. Some particles remain radioactive at toxic levels for many decades.

Which leads to higher health care costs in many nations as the wind can carry radioactive particulate thousands of miles — just as it can carry toxic gasses and soot from coal-fired power generation for thousands of miles.

For the most recent example of the cost to clean up nuclear accidents, the Fukushima disaster had been estimated at between $15 – 45 billion dollars, but more recently a $50 – 100 billion dollar price-tag has appeared and full decommissioning may take until 2030 to complete. The Japanese government is covering all the costs of decommissioning the Fukushima nuclear site — which means Japanese citizens will end up paying the full cost through taxation.

From the perspective of taxpayers everywhere who bear the brunt of health care costs and disaster mitigation, the full cost of a given kind of fuel must include the costs of all adverse health effects, deaths, damages and lost productivity caused by each kind of fuel.

Which is why solar, wind and biomass are still the better deal by far – even at the same per-gigawatt price.

John Brian Shannon writes about green energy, sustainable development and economics from British Columbia, Canada. His articles appear in the Arabian Gazette, EcoPoint Asia, EnergyBoom, the Huffington Post, the United Nations Development Programme – and other quality publications.

John believes it is important to assist all levels of government and the business community to find sustainable ways forward for industry and consumers.

Check out his green energy blog at: http://johnbrianshannon.com

Check out his economics blog at: https://jbsnews.wordpress.com

Follow John on Twitter: https://www.twitter.com/#!/JBSCanada

United States: Nuclear Energy Picking Up Momentum | MY COMMENT

United States: Nuclear Energy Picking Up Momentum  in ENERGYBOOM.COM
By JOSEPH BAKER ON January 20, 2012

MY COMMENT — With proper safeguards and spent-fuel disposal, nuclear can do.

Under the right conditions, and I’m talking about rigorous design and location standards, robust redundancies and state of the art security — small modular reactor (SMR) nuclear plants could be a real asset to North American energy needs.

For one example, placing a nuclear plant on geologically-active strata (most of California) is a very bad idea. Ask Japan about that.

Japan has shut down most of it’s 54 nuclear plants and is now burning fossil-fuels to replace that electricity and has just signed an ongoing agreement with Saudi Arabia to supply Japan with THREE TIMES THEIR GROSS 2010 OIL IMPORT TOTALS.

Germany is getting out of the nuclear power business completely and since Fukushima, is now doing it sooner than planned.

The sweet part of small-scale nuclear plants is that they mesh seamlessly with solar and wind power. Along with sustainable energy, geo-thermal and nuclear, “all clean electricity — all the time” for the entire continent could now be well-within our grasp.

Notwithstanding America’s huge coal reserves, coal is better used for Coal-To-Liquid fuels (CTL) and other highly-value-added synthetic products — and for export to better the U.S. balance-of-trade account.

With world-class standards, modular nuclear could be an outstanding asset.

Without those high standards in place, I’m against it.