Nigel Lawson Lecture – Talks about The Religion of Climate Alarmism

Nigel Lawson: Cool It



Standpoint, May 2014

This essay is based on the text of a speech given to the Institute for Sustainable Energy and the Environment at the University of Bath.

There is something odd about the global warming debate — or the climate change debate, as we are now expected to call it, since global warming has for the time being come to a halt.

I have never shied away from controversy, nor — for example, as Chancellor — worried about being unpopular if I believed that what I was saying and doing was in the public interest.

But I have never in my life experienced the extremes of personal hostility, vituperation and vilification which I — along with other dissenters, of course — have received for my views on global warming and global warming policies.

For example, according to the Climate Change Secretary, Ed Davey, the global warming dissenters are, without exception, “wilfully ignorant” and in the view of the Prince of Wales we are “headless chickens”. Not that “dissenter” is a term they use. We are regularly referred to as “climate change deniers”, a phrase deliberately designed to echo “Holocaust denier” — as if questioning present policies and forecasts of the future is equivalent to casting malign doubt about a historical fact.

The heir to the throne and the minister are senior public figures, who watch their language. The abuse I received after appearing on the BBC’s Today programme last February was far less restrained. Both the BBC and I received an orchestrated barrage of complaints to the effect that it was an outrage that I was allowed to discuss the issue on the programme at all. And even the Science and Technology Committee of the House of Commons shamefully joined the chorus of those who seek to suppress debate.

In fact, despite having written a thoroughly documented book about global warming more than five years ago, which happily became something of a bestseller, and having founded a think tank on the subject — the Global Warming Policy Foundation — the following year, and despite frequently being invited on Today to discuss economic issues, this was the first time I had ever been asked to discuss climate change. I strongly suspect it will also be the last time.

The BBC received a well-organised deluge of complaints — some of them, inevitably, from those with a vested interest in renewable energy — accusing me, among other things, of being a geriatric retired politician and not a climate scientist, and so wholly unqualified to discuss the issue.

Perhaps, in passing, I should address the frequent accusation from those who violently object to any challenge to any aspect of the prevailing climate change doctrine, that the Global Warming Policy Foundation’s non-disclosure of the names of our donors is proof that we are a thoroughly sinister organisation and a front for the fossil fuel industry.

As I have pointed out on a number of occasions, the Foundation’s Board of Trustees decided, from the outset, that it would neither solicit nor accept any money from the energy industry or from anyone with a significant interest in the energy industry. And to those who are not-regrettably-prepared to accept my word, I would point out that among our trustees are a bishop of the Church of England, a former private secretary to the Queen, and a former head of the Civil Service. Anyone who imagines that we are all engaged in a conspiracy to lie is clearly in an advanced stage of paranoia.

The reason why we do not reveal the names of our donors, who are private citizens of a philanthropic disposition, is in fact pretty obvious. Were we to do so, they, too, would be likely to be subject to the vilification and abuse I mentioned earlier. And that is something which, understandably, they can do without.

That said, I must admit I am strongly tempted to agree that, since I am not a climate scientist, I should from now on remain silent on the subject — on the clear understanding, of course, that everyone else plays by the same rules. No more statements by Ed Davey, or indeed any other politician, including Ed Milliband, Lord Deben and Al Gore. Nothing more from the Prince of Wales, or from Lord Stern. What bliss!

But of course this is not going to happen. Nor should it; for at bottom this is not a scientific issue. That is to say, the issue is not climate change but climate change alarmism, and the hugely damaging policies that are advocated, and in some cases put in place, in its name. And alarmism is a feature not of the physical world, which is what climate scientists study, but of human behaviour; the province, in other words, of economists, historians, sociologists, psychologists and — dare I say it — politicians.

And en passant, the problem for dissenting politicians, and indeed for dissenting climate scientists for that matter, who certainly exist, is that dissent can be career-threatening. The advantage of being geriatric is that my career is behind me: there is nothing left to threaten.

But to return: the climate changes all the time, in different and unpredictable (certainly unpredicted) ways, and indeed often in different ways in different parts of the world. It always has done and no doubt it always will. The issue is whether that is a cause for alarm — and not just moderate alarm. According to the alarmists it is the greatest threat facing humankind today: far worse than any of the manifold evils we see around the globe which stem from what Pope called “man’s inhumanity to man”.

Climate change alarmism is a belief system, and needs to be evaluated as such.
There is, indeed, an accepted scientific theory which I do not dispute and which, the alarmists claim, justifies their belief and their alarm.

This is the so-called greenhouse effect: the fact that the earth’s atmosphere contains so-called greenhouse gases (of which water vapour is overwhelmingly the most important, but carbon dioxide is another) which, in effect, trap some of the heat we receive from the sun and prevent it from bouncing back into space.

Without the greenhouse effect, the planet would be so cold as to be uninhabitable. But, by burning fossil fuels — coal, oil and gas — we are increasing the amount of carbon dioxide in the atmosphere and thus, other things being equal, increasing the earth’s temperature.

But four questions immediately arise, all of which need to be addressed, coolly and rationally.

First, other things being equal, how much can increased atmospheric CO2 be expected to warm the earth? (This is known to scientists as climate sensitivity, or sometimes the climate sensitivity of carbon.) This is highly uncertain, not least because clouds have an important role to play, and the science of clouds is little understood. Until recently, the majority opinion among climate scientists had been that clouds greatly amplify the basic greenhouse effect. But there is a significant minority, including some of the most eminent climate scientists, who strongly dispute this.

Second, are other things equal, anyway? We know that, over millennia, the temperature of the earth has varied a great deal, long before the arrival of fossil fuels. To take only the past thousand years, a thousand years ago we were benefiting from the so-called medieval warm period, when temperatures are thought to have been at least as warm, if not warmer, than they are today. And during the Baroque era we were grimly suffering the cold of the so-called Little Ice Age, when the Thames frequently froze in winter and substantial ice fairs were held on it, which have been immortalised in contemporary prints.

Third, even if the earth were to warm, so far from this necessarily being a cause for alarm, does it matter? It would, after all, be surprising if the planet were on a happy but precarious temperature knife-edge, from which any change in either direction would be a major disaster. In fact, we know that, if there were to be any future warming (and for the reasons already given, “if” is correct) there would be both benefits and what the economists call disbenefits. I shall discuss later where the balance might lie.

And fourth, to the extent that there is a problem, what should we, calmly and rationally, do about it?

It is probably best to take the first two questions together.

According to the temperature records kept by the UK Met Office (and other series are much the same), over the past 150 years (that is, from the very beginnings of the Industrial Revolution), mean global temperature has increased by a little under a degree centigrade — according to the Met Office, 0.8ºC. This has happened in fits and starts, which are not fully understood. To begin with, to the extent that anyone noticed it, it was seen as a welcome and natural recovery from the rigours of the Little Ice Age. But the great bulk of it — 0.5ºC out of the 0.8ºC — occurred during the last quarter of the 20th century. It was then that global warming alarmism was born.

But since then, and wholly contrary to the expectations of the overwhelming majority of climate scientists, who confidently predicted that global warming would not merely continue but would accelerate, given the unprecedented growth of global carbon emissions, as China’s coal-based economy has grown by leaps and bounds, there has been no further warming at all. To be precise, the latest report of the Intergovernmental Panel on Climate Change (IPCC), a deeply flawed body whose non-scientist chairman is a committed climate alarmist, reckons that global warming has latterly been occurring at the rate of — wait for it — 0.05ºC per decade, plus or minus 0.1ºC. Their figures, not mine. In other words, the observed rate of warming is less than the margin of error.

And that margin of error, it must be said, is implausibly small. After all, calculating mean global temperature from the records of weather stations and maritime observations around the world, of varying quality, is a pretty heroic task in the first place. Not to mention the fact that there is a considerable difference between daytime and night-time temperatures. In any event, to produce a figure accurate to hundredths of a degree is palpably absurd.

The lessons of the unpredicted 15-year global temperature standstill (or hiatus as the IPCC calls it) are clear. In the first place, the so-called Integrated Assessment Models which the climate science community uses to predict the global temperature increase which is likely to occur over the next 100 years are almost certainly mistaken, in that climate sensitivity is almost certainly significantly less than they once thought, and thus the models exaggerate the likely temperature rise over the next hundred years.

But the need for a rethink does not stop there. As the noted climate scientist Professor Judith Curry, chair of the School of Earth and Atmospheric Sciences at the Georgia Institute of Technology, recently observed in written testimony to the US Senate:
Anthropogenic global warming is a proposed theory whose basic mechnism is well understood, but whose magnitude is highly uncertain. The growing evidence that climate models are too sensitive to CO2 has implications for the attribution of late-20th-century warming and projections of 21st-century climate. If the recent warming hiatus is caused by natural variability, then this raises the question as to what extent the warming between 1975 and 2000 can also be explained by natural climate variability.

It is true that most members of the climate science establishment are reluctant to accept this, and argue that the missing heat has for the time being gone into the (very cold) ocean depths, only to be released later. This is, however, highly conjectural. Assessing the mean global temperature of the ocean depths is — unsurprisingly — even less reliable, by a long way, than the surface temperature record. And in any event most scientists reckon that it will take thousands of years for this “missing heat” to be released to the surface.

In short, the CO2 effect on the earth’s temperature is probably less than was previously thought, and other things — that is, natural variability and possibly solar influences — are relatively more significant than has hitherto been assumed.
But let us assume that the global temperature hiatus does, at some point, come to an end, and a modest degree of global warming resumes. How much does this matter?

The answer must be that it matters very little. There are plainly both advantages and disadvantages from a warmer temperature, and these will vary from region to region depending to some extent on the existing temperature in the region concerned. And it is helpful in this context that the climate scientists believe that the global warming they expect from increased atmospheric CO2 will be greatest in the cold polar regions and least in the warm tropical regions, and will be greater at night than in the day, and greater in winter than in summer. Be that as it may, studies have clearly shown that, overall, the warming that the climate models are now predicting for most of this century (I referred to these models earlier, and will come back to them later) is likely to do more good than harm.

This is particularly true in the case of human health, a rather important dimension of wellbeing. It is no accident that, if you look at migration for climate reasons in the world today, it is far easier to find those who choose to move to a warmer climate than those who choose to move to a colder climate. And it is well documented that excessive cold causes far more illnesses and deaths around the world than excessive warmth does.

The latest (2013-14) IPCC Assessment Report does its best to ramp up the alarmism in a desperate, and almost certainly vain, attempt to scare the governments of the world into concluding a binding global decarbonisation agreement at the crunch UN climate conference due to be held in Paris next year. Yet a careful reading of the report shows that the evidence to justify the alarm simply isn’t there.

On health, for example, it lamely concludes that “the world-wide burden of human ill-health from climate change is relatively small compared with effects of other stressors and is not well quantified” — adding that so far as tropical diseases (which preoccupied earlier IPCC reports) are concerned, “Concerns over large increases in vector-borne diseases such as dengue as a result of rising temperatures are unfounded and unsupported by the scientific literature.”

Moreover, the IPCC conspicuously fails to take proper account of what is almost certainly far and away the most important dimension of the health issue. And that is, quite simply, that the biggest health risk in the world today, particularly of course in the developing world, is poverty.

We use fossil fuels not because we love them, or because we are in thrall to the multinational oil companies, but simply because they provide far and away the cheapest source of large-scale energy, and will continue to do so, no doubt not forever, but for the foreseeable future. And using the cheapest source of energy means achieving the fastest practicable rate of economic development, and thus the fastest elimination of poverty in the developing world. In a nutshell, and on balance, global warming is good for you.

The IPCC does its best to contest this by claiming that warming is bad for food production: in its own words, “negative impacts of climate change on crop yields have been more common than positive impacts”. But not only does it fail to acknowledge that the main negative impact on crop yields has been not climate change but climate change policy, as farmland has been turned over to the production of biofuels rather than food crops. It also understates the net benefit for food production from the warming it expects to occur, in two distinct ways.

In the first place, it explicitly takes no account of any future developments in bio-engineering and genetic modification, which are likely to enable farmers to plant drought-resistant crops designed to thrive at warmer temperatures, should these occur. Second, and equally important, it takes no account whatever of another effect of increased atmospheric carbon dioxide, and one which is more certain and better documented than the warming effect. Namely, the stimulus to plant growth: what the scientists call the “fertilisation effect”. Over the past 30 years or so, the earth has become observably greener, and this has even affected most parts of the Sahel. It is generally agreed that a major contributor to this has been the growth in atmospheric CO2 from the burning of fossil fuels.

This should not come as a surprise. Biologists have always known that carbon dioxide is essential for plant growth, and of course without plants there would be very little animal life, and no human life, on the planet. The climate alarmists have done their best to obscure this basic scientific truth by insisting on describing carbon emissions as “pollution” — which, whether or not they warm the planet they most certainly are not — and deliberately mislabelling forms of energy which produce these emissions as “dirty”.

In the same way, they like to label renewable energy as “clean”, seemingly oblivious to the fact that by far the largest source of renewable energy in the world today is biomass, and in particular the burning of dung, which is the major source of indoor pollution in the developing world and is reckoned to cause at least a million deaths a year.

Compared with the likely benefits to both human health and food production from CO2-induced global warming, the possible disadvantages from, say, a slight increase in either the frequency or the intensity of extreme weather events is very small beer. It is, in fact, still uncertain whether there is any impact on extreme weather events as a result of warming (increased carbon emissions, which have certainly occurred, cannot on their own affect the weather: it is only warming which might). The unusual persistence of heavy rainfall over the UK during February, which led to considerable flooding, is believed by the scientists to have been caused by the wayward behaviour of the jetstream; and there is no credible scientific theory that links this behaviour to the fact that the earth’s surface is some 0.8ºC warmer than it was 150 years ago.

That has not stopped some climate scientists, such as the publicity-hungry chief scientist at the UK Met Office, Dame Julia Slingo, from telling the media that it is likely that “climate change” (by which they mean warming) is partly to blame. Usually, however, the climate scientists take refuge in the weasel words that any topical extreme weather event, whatever the extreme weather may be, whether the recent UK rainfall or last year’s typhoon in the Philippines, “is consistent with what we would expect from climate change”.

So what? It is also consistent with the theory that it is a punishment from the Almighty for our sins (the prevailing explanation of extreme weather events throughout most of human history). But that does not mean that there is the slightest truth in it. Indeed, it would be helpful if the climate scientists would tell us what weather pattern would not be consistent with the current climate orthodoxy. If they cannot do so, then we would do well to recall the important insight of Karl Popper — that any theory that is incapable of falsification cannot be considered scientific.

Moreover, as the latest IPCC report makes clear, careful studies have shown that, while extreme weather events such as floods, droughts and tropical storms, have always occurred, overall there has been no increase in either their frequency or their severity. That may, of course, be because there has so far been very little global warming indeed: the fear is the possible consequences of what is projected to lie ahead of us. And even in climate science, cause has to precede effect: it is impossible for future warming to affect events in the present.

Of course, it doesn’t seem like that. Partly because of sensitivity to the climate change doctrine, and partly simply as a result of the explosion of global communications, we are far more aware of extreme weather events around the world than we used to be. And it is perfectly true that many more people are affected by extreme weather events than ever before. But that is simply because of the great growth in world population: there are many more people around. It is also true, as the insurance companies like to point out, that there has been a great increase in the damage caused by extreme weather events. But that is simply because, just as there are more people around, so there is more property around to be damaged.

The fact remains that the most careful empirical studies show that, so far at least, there has been no perceptible increase, globally, in either the number or the severity of extreme weather events. And, as a happy coda, these studies also show that, thanks to scientific and material progress, there has been a massive reduction, worldwide, in deaths from extreme weather events.

It is relevant to note at this point that there is an important distinction between science and scientists. I have the greatest respect for science, whose development has transformed the world for the better. But scientists are no better and no worse than anyone else. There are good scientists and there are bad scientists. Many scientists are outstanding people working long hours to produce important results. They must be frustrated that political activists then turn those results into propaganda. Yet they dare not speak out for fear of losing their funding.

Indeed, a case can be made for the proposition that today’s climate science establishment is betraying science itself. During the period justly known as the Enlightenment, science achieved the breakthroughs which have so benefited us all by rejecting the claims of authority — which at that time largely meant the authority of the church — and adopting an overarching scepticism, insisting that our understanding of the external world must be based exclusively on observation and empirical investigation. Yet today all too many climate scientists, in particular in the UK, come close to claiming that they need to be respected as the voice of authority on the subject — the very claim that was once the province of the church.

If I have been critical of the latest IPCC report, let me add that it is many respects a significant improvement on its predecessors. It explicitly concedes, for example, that “climate change may be beneficial for moderate climate change” — and moderate climate change is all that it expects to see for the rest of this century — and that “Estimates for the aggregate economic impact of climate change are relatively small . . . For most economic sectors, the impact of climate change will be small relative to the impacts of other drivers.” So much for the unique existential planetary threat.

What it conspicuously fails to do, however, is to make any assessment of the unequivocally adverse economic impact of the decarbonisation policy it continues to advocate, which (if implemented) would be far worse than any adverse impact from global warming.

Even here, however, the new report concedes for the first time that the most important response to the threat of climate change must be how mankind has always responded, throughout the ages: namely, intelligent adaptation. Indeed, the “impacts” section of the latest report is explicitly entitled “Impacts, Adaptation and Vulnerability”. In previous IPCC reports adaptation was scarcely referred to at all, and then only dismissively.

This leads directly to the last of my four questions. To the extent that there is a problem, what should we, calmly and rationally, do about it?

The answer is — or should be — a no-brainer: adapt. I mentioned earlier that a resumption of global warming, should it occur (and of course it might) would bring both benefits and costs. The sensible course is clearly to pocket the benefits while seeking to minimise the costs. And that is all the more so since the costs, should they arise, will not be anything new: they will merely be the slight exacerbation of problems that have always afflicted mankind.

Like the weather, for example — whether we are talking about rainfall and flooding (or droughts for that matter) in the UK, or hurricanes and typhoons in the tropics. The weather has always varied, and it always will. There have always been extremes, and there always will be. That being so, it clearly makes sense to make ourselves more resilient and robust in the face of extreme weather events, whether or not there is a slight increase in the frequency or severity of such events.

This means measures such as flood defences and sea defences, together with water storage to minimise the adverse effects of drought, in the UK; and better storm warnings, the building of levees, and more robust construction in the tropics.

The same is equally true in the field of health. Tropical diseases — and malaria is frequently (if inaccurately) mentioned in this context — are a mortal menace in much of the developing world. It clearly makes sense to seek to eradicate these diseases — and in the case of malaria (which used to be endemic in Europe) we know perfectly well how to do it — whether or not warming might lead to an increase in the incidence of such diseases.

And the same applies to all the other possible adverse consequences of global warming. Moreover, this makes sense whatever the cause of any future warming, whether it is man-made or natural. Happily, too, as economies grow and technology develops, our ability to adapt successfully to any problems which warming may bring steadily increases.

Yet, astonishingly, this is not the course on which our leaders in the Western world generally, and the UK in particular, have embarked. They have decided that what we must do, at inordinate cost, is prevent the possibility (as they see it) of any further warming by abandoning the use of fossil fuels.

Even if this were attainable — a big “if”, which I will discuss later — there is no way in which this could be remotely cost-effective. The cost to the world economy of moving from relatively cheap and reliable energy to much more expensive and much less reliable forms of energy-the so-called renewables, on which we had to rely before we were liberated by the fossil-fuel-driven Industrial Revolution — far exceeds any conceivable benefit.

It is true that the notorious Stern Review, widely promoted by a British prime minister with something of a messiah complex and an undoubted talent for PR, sought to demonstrate the reverse, and has become a bible for the economically illiterate.

But Stern’s dodgy economics have been comprehensively demolished by the most distinguished economists on both sides of the Atlantic. So much so, in fact, that Lord Stern himself has been driven to complain that it is all the fault of the integrated assessment models, which — and I quote him — “come close to assuming directly that the impacts and costs will be modest, and close to excluding the possibility of catastrophic outcomes”.

I suggested earlier that these elaborate models are scarcely worth the computer code they are written in, and certainly the divergence between their predictions and empirical observations has become ever wider. Nevertheless, it is a bit rich for Stern now to complain about them, when they remain the gospel of the climate science establishment in general and of the IPCC in particular.

But Stern is right in this sense: unless you assume that we may be heading for a CO2-induced planetary catastrophe, for which there is no scientific basis, a policy of decarbonisation cannot possibly make sense.

A similar, if slightly more sophisticated, case for current policies has been put forward by a distinctly better economist than Stern, Harvard’s Professor Martin Weitzman, in what he likes to call his “dismal theorem”. After demolishing Stern’s cost-benefit analysis, he concludes that Stern is in fact right but for the wrong reasons. According to Weitzman, this is an area where cost-benefit analysis does not apply. Climate science is highly uncertain, and a catastrophic outcome which might even threaten the continuation of human life on this planet, cannot be entirely ruled out however unlikely it may be. It is therefore incumbent on us to do whatever we can, regardless of cost, to prevent this.

This is an extreme case of what is usually termed “the precautionary principle”. I have often thought that the most important use of the precautionary principle is against the precautionary principle itself, since it can all too readily lead to absurd policy prescriptions. In this case, a moment’s reflection would remind us that there are a number of possible catastrophes, many of them less unlikely than that caused by runaway warming, and all of them capable of occurring considerably sooner than the catastrophe feared by Weitzman; and there is no way we can afford the cost of unlimited spending to reduce the likelihood of all of them.

In particular, there is the risk that the earth may enter a new ice age. This was the fear expressed by the well-known astronomer Sir Fred Hoyle in his book Ice: The Ultimate Human Catastrophe, and there are several climate scientists today, particularly in Russia, concerned about this. It would be difficult, to say the least, to devote unlimited sums to both cooling and warming the planet at the same time.

At the end of the day, this comes down to judgment. Weitzman is clearly entitled to his; but I doubt if it is widely shared; and if the public were aware that it was on this slender basis that the entire case for current policies rested I would be surprised if they would have much support. Rightly so.

But there is another problem. Unlike intelligent adaptation to any warming that might occur, which in any case will mean different things in different regions of the world, and which requires no global agreement, decarbonisation can make no sense whatever in the absence of a global agreement. And there is no chance of any meaningful agreement being concluded. The very limited Kyoto accord of 1997 has come to an end; and although there is the declared intention of concluding a much more ambitious successor, with a UN-sponsored conference in Paris next year at which it is planned that this should happen, nothing of any significance is remotely likely.

And the reason is clear. For the developing world, the overriding priority is economic growth: improving the living standards of the people, which means among other things making full use of the cheapest available source of energy, fossil fuels.

The position of China, the largest of all the developing countries and the world’s biggest (and fastest growing) emitter of carbon dioxide, is crucial. For very good reasons, there is no way that China is going to accept a binding limitation on its emissions. China has an overwhelmingly coal-based energy sector — indeed it has been building new coal-fired power stations at the rate of one a week — and although it is now rapidly developing its substantial indigenous shale gas resources (another fossil fuel), its renewable energy industry, both wind and solar, is essentially for export to the developed world.

It is true that China is planning to reduce its so-called “carbon intensity” quite substantially by 2020. But there is a world of difference between the sensible objective of using fossil fuels more efficiently, which is what this means, and the foolish policy of abandoning fossil fuels, which it has no intention of doing. China’s total carbon emissions are projected to carry on rising — and rising substantially — as its economy grows.

This puts into perspective the UK’s commitment, under the Climate Change Act, to near-total decarbonisation. The UK accounts for less than 2 per cent of global emissions: indeed, its total emissions are less than the annual increase in China’s. Never mind, says Lord Deben, chairman of the government-appointed Climate Change Committee, we are in the business of setting an example to the world.

No doubt this sort of thing goes down well at meetings of the faithful, and enables him and them to feel good. But there is little point in setting an example, at great cost, if no one is going to follow it; and around the world governments are now gradually watering down or even abandoning their decarbonisation ambitions.  Indeed, it is even worse than that. Since the UK has abandoned the idea of having an energy policy in favour of having a decarbonisation policy, there is a growing risk that, before very long, our generating capacity will be inadequate to meet our energy needs. If so, we shall be setting an example all right: an example of what not to do.

So how is it that much of the Western world, and this country in particular, has succumbed to the self-harming collective madness that is climate change orthodoxy? It is difficult to escape the conclusion that climate change orthodoxy has in effect become a substitute religion, attended by all the intolerant zealotry that has so often marred religion in the past, and in some places still does so today.

Throughout the Western world, the two creeds that used to vie for popular support, Christianity and the atheistic belief system of Communism, are each clearly in decline. Yet people still feel the need both for the comfort and for the transcendent values that religion can provide. It is the quasi-religion of green alarmism and global salvationism, of which the climate change dogma is the prime example, which has filled the vacuum, with reasoned questioning of its mantras regarded as little short of sacrilege.

The parallel goes deeper. As I mentioned earlier, throughout the ages the weather has been an important part of the religious narrative. In primitive societies it was customary for extreme weather events to be explained as punishment from the gods for the sins of the people; and there is no shortage of this theme in the Bible, either — particularly, but not exclusively, in the Old Testament. The contemporary version of this is that, as a result of heedless industrialisation within a framework of materialistic capitalism, we have directly (albeit not deliberately) perverted the weather, and will duly receive our comeuppance.

There is another aspect, too, which may account for the appeal of this so-called explanation. Throughout the ages, something deep in man’s psyche has made him receptive to apocalyptic warnings that the end of the world is nigh. And almost all of us, whether we like it or not, are imbued with feelings of guilt and a sense of sin. How much less uncomfortable it is, how much more convenient, to divert attention away from our individual sins and reasons to feel guilty, and to sublimate them in collective guilt and collective sin.

Why does this matter? It matters, and matters a great deal, on two quite separate grounds. The first is that it has gone a long way towards ushering in a new age of unreason. It is a cruel irony that, while it was science which, more than anything else, was able by its great achievements, to establish the age of reason, it is all too many climate scientists and their hangers-on who have become the high priests of a new age of unreason.

But what moves me most is that the policies invoked in its name are grossly immoral. We have, in the UK, devised the most blatant transfer of wealth from the poor to the rich — and I am slightly surprised that it is so strongly supported by those who consider themselves to be the tribunes of the people and politically on the Left. I refer to our system of heavily subsidising wealthy landlords to have wind farms on their land, so that the poor can be supplied with one of the most expensive forms of electricity known to man.

This is also, of course, inflicting increasing damage on the British economy, to no useful purpose whatever. More serious morally, because it is on a much larger scale, is the perverse intergenerational transfer of wealth implied by orthodox climate change policies. It is not much in dispute that future generations — those yet unborn — will be far wealthier than those — ourselves, our children, and for many of us our grandchildren — alive today. This is the inevitable consequence of the projected economic growth which, on a “business as usual” basis, drives the increased carbon emissions which in turn determine the projected future warming. It is surely perverse that those alive today should be told that they must impoverish themselves, by abandoning what is far and away the cheapest source of energy, in order to ensure that those yet to be born, who will in any case be signally better off than they are, will be better off still, by escaping the disadvantages of any warming that might occur.

However, the greatest immorality of all concerns the masses in the developing world. It is excellent that, in so many parts of the developing world — the so-called emerging economies — economic growth is now firmly on the march, as they belatedly put in place the sort of economic policy framework that brought prosperity to the Western world. Inevitably, they already account for, and will increasingly account for, the lion’s share of global carbon emissions.

But, despite their success, there are still hundreds of millions of people in these countries in dire poverty, suffering all the ills that this brings, in terms of malnutrition, preventable disease, and premature death. Asking these countries to abandon the cheapest available sources of energy is, at the very least, asking them to delay the conquest of malnutrition, to perpetuate the incidence of preventable disease, and to increase the numbers of premature deaths.

Global warming orthodoxy is not merely irrational. It is wicked.



 

The Windscam – Hurting Families and Others who Cannot Afford it!

Bjørn Lomborg: Cost of Renewables Hit Poorest the Hardest

Bjorn-Lomborg-wsj

Bjørn Lomborg has become one of the most high profile critics of insanely expensive and utterly pointless renewable energy policies across the globe (see our posts here and here).

Bjørn’s back – and this time adds the impact our ludicrous Renewable Energy Target has had – and will have – on power prices and the ensuing punishment that spiralling power costs cause to the poorest and most vulnerable in Australian society.

Renewables pave path to poverty
The Australian
Bjørn Lomborg
29 April 2014

THE Australian government recently released an issues paper for the review of the renewable energy target. What everyone engaged in this debate should recognise is that policies such as the carbon tax and the RET have contributed to household electricity costs rising 110 per cent in the past five years, hitting the poor the hardest.

A Salvation Army report from last year found 58 per cent of low-income households were unable to pay their electricity bills on time. Lynne Chester of the University of Sydney estimated last year that 20 per cent of households are now energy poor: “Parents are going without food, families are sitting around the kitchen table using one light, putting extra clothes on and sleeping in one room to keep warm, and this is Australia 2013.”

What is true in Australia is true globally. According to the UN Secretary-General Ban Ki-moon, “Climate change harms the poor first and worst.” But we often forget that current policies to address global warming harm the world’s poor much more.

Solar and wind power was subsidised by $65 billion in 2012. And because the total climate benefit was a paltry $1.5bn, the subsidies essentially wasted $63.5bn. Biofuels were subsidised by another $20bn, with ­essentially no climate benefit. All of that money could have been spent on healthcare, education, better roads or lower taxes.

Forcing everyone to buy more expensive, less-reliable energy pushes up costs throughout the economy, leaving less for other public goods. The average of macroeconomic models indicates the total cost of the EU’s climate policy will be $US310bn a year from 2020 until the end of the century.

The burden of these policies falls overwhelmingly on the world’s poor, because the rich can easily pay more for their ​energy. In the US, well-meaning and well-off environmentalists often cavalierly suggest petrol prices should be doubled or electricity exclusively sourced from high-cost green sources.

That may be OK in affluent suburbs, where residents reportedly spend just 2 per cent of their income on petrol. But the poorest 30 per cent of the US population spends almost 17 per cent of its after-tax income on petrol.

Similarly, environmentalists boast that households in Britain have reduced their electricity consumption almost 10 per cent since 2005. But they neglect to mention that this reflects a 50 per cent increase in electricity prices, mostly to pay for an increase in the share of renewables from 1.8 per cent to 4.6 per cent.

The poor, no surprise, have reduced their consumption by much more than 10 per cent, whereas the rich have not reduced theirs at all.

Over the past five years, heating a home has become 63 per cent more ​expensive in Britain while real wages have declined. About 17 per cent of households are now energy-poor — they have to spend more than 10 per cent of their income on energy; and, because the elderly are typically poorer, about a quarter of their households are energy poor. Pensioners burn old books to keep warm because it is cheaper than coal; they ride on heated buses all day, and a third leave part of their homes cold.

In Germany, where green subsidies will cost $US35bn ($37.6bn) this year, household electricity prices have increased 80 per cent since 2000, causing 6.9 million households to live in energy poverty. Wealthy homeowners in Bavaria can feel good about their inefficient solar panels, receiving lavish subsidies essentially paid by poor tenants in the Ruhr who cannot afford solar panels, but still have to
pay more for power.

In Greece, where tax hikes on oil have driven up heating costs 48 per cent, more and more Athenians are cutting down park trees, causing air pollution from wood burning to triple. It is even worse in the developing world, where three billion lack access to cheap energy. They cook
and keep warm by burning twigs and dung, producing indoor air pollution that causes 3.5 million deaths a year — by far the world’s biggest environmental problem.

Access to electricity could solve that while allowing families to read at night, own a refrigerator or use a computer. It would also allow businesses to operate more competitively, creating jobs and economic growth.

Consider Pakistan and South Africa, where a dearth of generating capacity means recurrent blackouts wreak havoc on businesses and cost jobs. Yet funding new coal-fired power plants in both countries has been widely opposed by well-meaning Westerners and governments.

Instead, they suggest renewables. This is hypocritical. The rich world gets just 1.2 per cent of its energy from hugely expensive solar and wind technologies, and we would never accept having power only when the wind was blowing. In the next two years, Germany will build 10 coal-fired power plants.

In 1971, 40 per cent of China’s energy came from renewables. Since then it has lifted 680 million people out of poverty using coal. Today, China gets a trifling 0.23 per cent of its energy from wind and solar. Africa gets 50 per cent of its energy today from ​renewables — and remains poor.
New analysis from the Centre for Global Development shows that, investing in renewables, we can pull one person out of poverty for about $US500.

But, using gas electrification, we could quadruple that. By ​focusing on our climate concerns, we deliberately choose to leave more than three out of four people in darkness and poverty.

Addressing global warming requires long-term innovation that makes green energy affordable. Until then, wasting enormous sums of money at the expense of the world’s poor is no solution at all.
The Australian

For a household to be “energy poor” is defined as needing to spend more than 10% of household income on energy, which, in practice, often leaves families with the choice of lighting or heating their homes and putting bread on the table.

The finding that 20 per cent of Australian households are now energy poor is a National Disgrace. That it has occurred as a consequence of renewable policies that amount to the largest wealth transfer from the poor to the rich in human history is nothing short of obscene.

The mandatory Renewable Energy Target is utterly devoid of merit and is simply punishing those who cannot fight back: it must go now.

bread and water for dinner

Matt Ridley Dispels the Ugly Rumors of the Alarmists!

The World’s Resources Aren’t Running Out

Ecologists worry that the world’s resources come in fixed amounts that will run out, but we have broken through such limits again and again.

 
April 25, 2014 7:47 p.m. ET

A worker inspects solar panels in Dunhuang, China. We have an estimated supply of one million years of tellurium, a rare element used in some panels. Reuters

How many times have you heard that we humans are “using up” the world’s resources, “running out” of oil, “reaching the limits” of the atmosphere’s capacity to cope with pollution or “approaching the carrying capacity” of the land’s ability to support a greater population? The assumption behind all such statements is that there is a fixed amount of stuff—metals, oil, clean air, land—and that we risk exhausting it through our consumption.

“We are using 50% more resources than the Earth can sustainably produce, and unless we change course, that number will grow fast—by 2030, even two planets will not be enough,” says Jim Leape, director general of the World Wide Fund for Nature International (formerly the World Wildlife Fund).

But here’s a peculiar feature of human history: We burst through such limits again and again. After all, as a Saudi oil minister once said, the Stone Age didn’t end for lack of stone. Ecologists call this “niche construction”—that people (and indeed some other animals) can create new opportunities for themselves by making their habitats more productive in some way. Agriculture is the classic example of niche construction: We stopped relying on nature’s bounty and substituted an artificial and much larger bounty.

Economists call the same phenomenon innovation. What frustrates them about ecologists is the latter’s tendency to think in terms of static limits. Ecologists can’t seem to see that when whale oil starts to run out, petroleum is discovered, or that when farm yields flatten, fertilizer comes along, or that when glass fiber is invented, demand for copper falls.

That frustration is heartily reciprocated. Ecologists think that economists espouse a sort of superstitious magic called “markets” or “prices” to avoid confronting the reality of limits to growth. The easiest way to raise a cheer in a conference of ecologists is to make a rude joke about economists.

Stephen Webster

I have lived among both tribes. I studied various forms of ecology in an academic setting for seven years and then worked at the Economist magazine for eight years. When I was an ecologist (in the academic sense of the word, not the political one, though I also had antinuclear stickers on my car), I very much espoused the carrying-capacity viewpoint—that there were limits to growth. I nowadays lean to the view that there are no limits because we can invent new ways of doing more with less.

This disagreement goes to the heart of many current political issues and explains much about why people disagree about environmental policy. In the climate debate, for example, pessimists see a limit to the atmosphere’s capacity to cope with extra carbon dioxide without rapid warming. So a continuing increase in emissions if economic growth continues will eventually accelerate warming to dangerous rates. But optimists see economic growth leading to technological change that would result in the use of lower-carbon energy. That would allow warming to level off long before it does much harm.

It is striking, for example, that the Intergovernmental Panel on Climate Change’s recent forecast that temperatures would rise by 3.7 to 4.8 degrees Celsius compared with preindustrial levels by 2100 was based on several assumptions: little technological change, an end to the 50-year fall in population growth rates, a tripling (only) of per capita income and not much improvement in the energy efficiency of the economy. Basically, that would mean a world much like today’s but with lots more people burning lots more coal and oil, leading to an increase in emissions. Most economists expect a five- or tenfold increase in income, huge changes in technology and an end to population growth by 2100: not so many more people needing much less carbon.

In 1679, Antonie van Leeuwenhoek, the great Dutch microscopist, estimated that the planet could hold 13.4 billion people, a number that most demographers think we may never reach. Since then, estimates have bounced around between 1 billion and 100 billion, with no sign of converging on an agreed figure.

Economists point out that we keep improving the productivity of each acre of land by applying fertilizer, mechanization, pesticides and irrigation. Further innovation is bound to shift the ceiling upward. Jesse Ausubel at Rockefeller University calculates that the amount of land required to grow a given quantity of food has fallen by 65% over the past 50 years, world-wide.

Ecologists object that these innovations rely on nonrenewable resources, such as oil and gas, or renewable ones that are being used up faster than they are replenished, such as aquifers. So current yields cannot be maintained, let alone improved.

In his recent book “The View from Lazy Point,” the ecologist Carl Safina estimates that if everybody had the living standards of Americans, we would need 2.5 Earths because the world’s agricultural land just couldn’t grow enough food for more than 2.5 billion people at that level of consumption. Harvard emeritus professor E.O. Wilson, one of ecology’s patriarchs, reckoned that only if we all turned vegetarian could the world’s farms grow enough food to support 10 billion people.

Economists respond by saying that since large parts of the world, especially in Africa, have yet to gain access to fertilizer and modern farming techniques, there is no reason to think that the global land requirements for a given amount of food will cease shrinking any time soon. Indeed, Mr. Ausubel, together with his colleagues Iddo Wernick and Paul Waggoner, came to the startling conclusion that, even with generous assumptions about population growth and growing affluence leading to greater demand for meat and other luxuries, and with ungenerous assumptions about future global yield improvements, we will need less farmland in 2050 than we needed in 2000. (So long, that is, as we don’t grow more biofuels on land that could be growing food.)

But surely intensification of yields depends on inputs that may run out? Take water, a commodity that limits the production of food in many places. Estimates made in the 1960s and 1970s of water demand by the year 2000 proved grossly overestimated: The world used half as much water as experts had projected 30 years before.

The reason was greater economy in the use of water by new irrigation techniques. Some countries, such as Israel and Cyprus, have cut water use for irrigation through the use of drip irrigation. Combine these improvements with solar-driven desalination of seawater world-wide, and it is highly unlikely that fresh water will limit human population.

The best-selling book “Limits to Growth,” published in 1972 by the Club of Rome (an influential global think tank), argued that we would have bumped our heads against all sorts of ceilings by now, running short of various metals, fuels, minerals and space. Why did it not happen? In a word, technology: better mining techniques, more frugal use of materials, and if scarcity causes price increases, substitution by cheaper material. We use 100 times thinner gold plating on computer connectors than we did 40 years ago. The steel content of cars and buildings keeps on falling.

Until about 10 years ago, it was reasonable to expect that natural gas might run out in a few short decades and oil soon thereafter. If that were to happen, agricultural yields would plummet, and the world would be faced with a stark dilemma: Plow up all the remaining rain forest to grow food, or starve.

But thanks to fracking and the shale revolution, peak oil and gas have been postponed. They will run out one day, but only in the sense that you will run out of Atlantic Ocean one day if you take a rowboat west out of a harbor in Ireland. Just as you are likely to stop rowing long before you bump into Newfoundland, so we may well find cheap substitutes for fossil fuels long before they run out.

The economist and metals dealer Tim Worstall gives the example of tellurium, a key ingredient of some kinds of solar panels. Tellurium is one of the rarest elements in the Earth’s crust—one atom per billion. Will it soon run out? Mr. Worstall estimates that there are 120 million tons of it, or a million years’ supply altogether. It is sufficiently concentrated in the residues from refining copper ores, called copper slimes, to be worth extracting for a very long time to come. One day, it will also be recycled as old solar panels get cannibalized to make new ones.

Or take phosphorus, an element vital to agricultural fertility. The richest phosphate mines, such as on the island of Nauru in the South Pacific, are all but exhausted. Does that mean the world is running out? No: There are extensive lower grade deposits, and if we get desperate, all the phosphorus atoms put into the ground over past centuries still exist, especially in the mud of estuaries. It’s just a matter of concentrating them again.

In 1972, the ecologist Paul Ehrlich of Stanford University came up with a simple formula called IPAT, which stated that the impact of humankind was equal to population multiplied by affluence multiplied again by technology. In other words, the damage done to Earth increases the more people there are, the richer they get and the more technology they have.

Many ecologists still subscribe to this doctrine, which has attained the status of holy writ in ecology. But the past 40 years haven’t been kind to it. In many respects, greater affluence and new technology have led to less human impact on the planet, not more. Richer people with new technologies tend not to collect firewood and bushmeat from natural forests; instead, they use electricity and farmed chicken—both of which need much less land. In 2006, Mr. Ausubel calculated that no country with a GDP per head greater than $4,600 has a falling stock of forest (in density as well as in acreage).

Haiti is 98% deforested and literally brown on satellite images, compared with its green, well-forested neighbor, the Dominican Republic. The difference stems from Haiti’s poverty, which causes it to rely on charcoal for domestic and industrial energy, whereas the Dominican Republic is wealthy enough to use fossil fuels, subsidizing propane gas for cooking fuel specifically so that people won’t cut down forests.

Part of the problem is that the word “consumption” means different things to the two tribes. Ecologists use it to mean “the act of using up a resource”; economists mean “the purchase of goods and services by the public” (both definitions taken from the Oxford dictionary).

But in what sense is water, tellurium or phosphorus “used up” when products made with them are bought by the public? They still exist in the objects themselves or in the environment. Water returns to the environment through sewage and can be reused. Phosphorus gets recycled through compost. Tellurium is in solar panels, which can be recycled. As the economist Thomas Sowell wrote in his 1980 book “Knowledge and Decisions,” “Although we speak loosely of ‘production,’ man neither creates nor destroys matter, but only transforms it.”

Given that innovation—or “niche construction”—causes ever more productivity, how do ecologists justify the claim that we are already overdrawn at the planetary bank and would need at least another planet to sustain the lifestyles of 10 billion people at U.S. standards of living?

Examine the calculations done by a group called the Global Footprint Network—a think tank founded by Mathis Wackernagel in Oakland, Calif., and supported by more than 70 international environmental organizations—and it becomes clear. The group assumes that the fossil fuels burned in the pursuit of higher yields must be offset in the future by tree planting on a scale that could soak up the emitted carbon dioxide. A widely used measure of “ecological footprint” simply assumes that 54% of the acreage we need should be devoted to “carbon uptake.”

But what if tree planting wasn’t the only way to soak up carbon dioxide? Or if trees grew faster when irrigated and fertilized so you needed fewer of them? Or if we cut emissions, as the U.S. has recently done by substituting gas for coal in electricity generation? Or if we tolerated some increase in emissions (which are measurably increasing crop yields, by the way)? Any of these factors could wipe out a huge chunk of the deemed ecological overdraft and put us back in planetary credit.

Helmut Haberl of Klagenfurt University in Austria is a rare example of an ecologist who takes economics seriously. He points out that his fellow ecologists have been using “human appropriation of net primary production”—that is, the percentage of the world’s green vegetation eaten or prevented from growing by us and our domestic animals—as an indicator of ecological limits to growth. Some ecologists had begun to argue that we were using half or more of all the greenery on the planet.

This is wrong, says Dr. Haberl, for several reasons. First, the amount appropriated is still fairly low: About 14.2% is eaten by us and our animals, and an additional 9.6% is prevented from growing by goats and buildings, according to his estimates. Second, most economic growth happens without any greater use of biomass. Indeed, human appropriation usually declines as a country industrializes and the harvest grows—as a result of agricultural intensification rather than through plowing more land.

Finally, human activities actually increase the production of green vegetation in natural ecosystems. Fertilizer taken up by crops is carried into forests and rivers by wild birds and animals, where it boosts yields of wild vegetation too (sometimes too much, causing algal blooms in water). In places like the Nile delta, wild ecosystems are more productive than they would be without human intervention, despite the fact that much of the land is used for growing human food.

If I could have one wish for the Earth’s environment, it would be to bring together the two tribes—to convene a grand powwow of ecologists and economists. I would pose them this simple question and not let them leave the room until they had answered it: How can innovation improve the environment?

Mr. Ridley is the author of “The Rational Optimist” and a member of the British House of Lords.

Invest in the Renewables Scam? Better think again!!!

German Consumer Agency Issues Open Letter, Warns Deutsche Bank Of

“Dubious Renewable Energy…Burdens Of Over 1 Trillion Euros Feared”

In a bid to protect consumers and investors. The Berlin-based consumer investor protection organization Verbraucherzentrale für Kapitalanleger (VzfK) has issued a press release here warning Deutsche Bank AG of the high risks of investments in “dubious renewable energy companies” and their projects after a string of spectacular insolvencies.

Hat-tip: EIKE.

What follows is the VzfK press release, translated to English:

The Verbraucherzentrale für Kapitalanleger [Consumer Agency for Investors] has sent an open letter to Jürgen Fitschen, the spokesman of the board of directors of Deutsche Bank AG, warning of engagement in the sector of renewable energies. The VzfK especially requests a critical review of customer relations to controversial project developer juwi AG based in Wörrstadt.

The VzfK argues that the spectacular insolvency of Prokon, Windwärts, Windreich, Solar Millennium AG and many other dubious renewable energy companies leads us to expect further damage not only to capital investors, but also to shareholders of credit institutes due to the sheer grievances in the sector of renewable energies. The VzfK requests the Deutsche Bank board of directors to assure that the damage to Deutsche Bank AG, its shareholders, and customers be minimized through appropriate portfolio measures and credit decisions. Especially requested is a critical review of the credit engagement that has come under fire because of the corruption scandal in Thuringia and controversial wind projects in the Hochtaunus nature reserve by project developer juwi AG.

Referring to the federal government’s Council of Expert Advisors the VzfK expects the EEG renewable energy feed-in system has to collapse and that economic damage of at least triple-digit billions are to be expected. Already today consumers are groaning and German industry are burdened by ludicrously high costs compared to other European countries and internationally. Energy prices are often more than 50% higher than those in neighboring countries or in the USA. In other words: German workers, as electric power customers, are paying for a gigantic job destruction program. The EEG system is only forcing the chemical industry and other energy-intensive industries to move abroad.

Dr. Martin Weimann, Chairman of the VzfK: “We ask the board to use the societal and political influence of Deutsche Bank AG to act to bring about a stop to the EEG feed-in system and to usher a fundamental reform for the interests of the stakeholders.“

In the letter itself, Weimann writes:

Should the renewable energy support continue to develop further and go on unbraked, burdens to the economy to the tune of over one trillion euros are to be feared.”

 

– See more at: http://notrickszone.com/2014/04/30/german-consumer-agency-issues-open-letter-warns-deutsche-bank-of-dubious-renewable-energy-burdens-of-over-1-trillion-euros-feared/#sthash.x0nrSgKY.dpuf

The Liberals claim of “Green Jobs”, was just another scam!!!

Labour war: Green energy and foreign workers

The taxpayer-subsidized green energy industry brings in temporary foreign workers

Tamsin McMahon

4

(Nick Brancaccio, The Windsor Star)

When it opened for business at the site of a shuttered assembly plant in Windsor, Ont., CS Wind was hailed as an early success story for the Ontario government’s flagship green energy program, which aimed to spark a renewable resource industry in the province and create jobs for thousands of unemployed manufacturing workers.

The Korean company, which manufactures the towers used in wind turbines, is a partner in a consortium led by Samsung that promised to open factories to employ Canadians building wind turbines and solar panels. In exchange, the province agreed to buy nearly $10 billion worth of renewable energy from producers at above market-rates (later reduced to $6 billion after complaints it would drive up energy bills). CS Wind said it planned to hire as many as 500 local workers, many of them out-of-work welders, and build towers out of steel from Sault Ste. Marie.

Yet years after then-premier Dalton McGuinty toured the plant for its December 2011 opening—sitting at the controls of a specialized hoist truck and declaring that his green energy strategy was “creating good jobs for our families”— the company’s use of two dozen temporary workers from Vietnam has become a key issue in an ongoing labour dispute at the factory.

An Ontario Labour Relations Board ruling released last month to determine which of CS Wind’s employees could form a prospective bargaining unit—as part of a union drive by the Iron Workers—noted the company had employed more than 30 workers from Vietnam in jobs that ranged from welding to assembly to quality control. Many worked more than 60 hours a week, compared to an average of 46 hours a week for Canadian counterparts. Three employees told the board they were being paid the equivalent of between $960- $1,600 a month in Vietnamese currency, while the company also gave them a retention bonus and covered their Canadian living expenses. The employees, who had come from the company’s Vietnamese factory, originally expected to stay between six months to a year to train Canadian workers. But the company extended their work permits because of “production and quality control issues” at the plant. Many have now been there more than two years.

CS Wind says it has had no choice but to bring over Vietnamese workers since it has struggled to find workers in Windsor experienced in the specific type of welding it needs. Its critics, however, have questioned why so many foreign workers are employed in a provincial program aimed at trading government- subsidized energy for Canadian jobs. “Back in the day we trained young Canadians,” says Lash Ray, business representative for the Iron Workers, who is involved in trying to organize the plant. “Today, unless you fit the exact criteria, they’ve got an easy way out to say, ‘We’ve got to get workers from halfway around the world that cost us less.’ ”

Canada’s Temporary Foreign Worker Program has been under fire amid allegations some restaurants have abused the system to hire low-wage foreign workers in place of Canadians. Last week, the federal government set a moratorium for restaurant employers. CS Wind’s Vietnamese workers came to Canada through an intra-company transfer, which allows companies to bring in workers with “specialized skills” without getting a labour- market opinion to show no Canadian workers can do the job. Employment Minister Jason Kenney has said that process is being investigated for abuse after complaints an Indian outsourcer contracted by the Royal Bank of Canada used it to replace Canadian IT employees.

CS Wind says its use of temporary workers from Vietnam has nothing to do with replacing Canadians with low-wage foreign labour, but is instead a reflection of the country’s skilled labour shortage and the challenges of trying to build a renewable energy manufacturing industry in Ontario from scratch. “This is a company that’s invested tens of millions of dollars in Canada and created employment for Canadians in an area that was frankly depressed with high unemployment,” says David McNevin, the company’s legal counsel. Today, the plant indeed employs 500 workers, just 25 of whom are from Vietnam. They’re mainly welders who have a decade of experience with a highly specialized type of welding not widely used in Ontario’s heavy manufacturing industry. Initially, says McNevin, the workers were paid roughly five times their Vietnamese salary, which ranged from $140-$421 a month, because they were expected to stay for only a few months. Back then the company had just one Canadian customer. But the green energy industry “has just exploded,” says McNevin, and the company has had to grow quickly to fill orders from across North America.

In January of last year, when it became clear the Vietnamese workers would be there a while, the company began paying them the same as its Canadian employees, between $17.50 and $23.50 an hour. Ultimately, McNevin says CS Wind hopes to transition to an entirely Canadian workforce, but the training process can take years. “This is not an employer attempting to avoid hiring local workers,” he says. “The bottom line is a lack of skilled workers in Canada and the need to improve apprenticeship programs.” Ray, of the Iron Workers, argues that two years is plenty of time to train a group of welders on how to learn a new type of welding. “We build cars, we build robots. We’re used to building stuff in this country, he says. “You can’t tell me that you can’t have your workforce trained in two years.”

Company vice-president S.H. Bang says he’s still desperately scouring the country in search of skilled welders. Whether they would be willing to accept the company’s wages is another matter. At $17.50-$23.50 an hour, roughly $33,000-$41,000 a year, the wages are less than half of what experienced welders can make in the Alberta oil sands, for instance.  Bang says the company’s wages are competitive in the sector, which faces intense international competition. Alberta oil workers may be rolling in cash, but Ray says the legions of unemployed welders in the Windsor region would be happy to work for $17 an hour. That’s the other issue with the foreign worker program: it risks driving down wages, even in industries looking for workers, like Ontario’s taxpayer-supported green energy industry.

“It’s not about finding skilled people or people who are interested in these jobs. It’s: ‘This is the wage we’re going to pay and we’re going to scan the globe to find people who are will- ing to work for that wage,’ ” says Angelo Dicaro, a researcher at private sector union Unifor. “It’s globalization run amok.”

Finally….American Bird Conservancy decides to sue Obama, and the Interior Dept!

Group plans lawsuit against Interior rule that ‘gambles recklessly’ with eagles

Scott Streater, E&E reporter  4-30-2014

http://ads.eenews.net/b/ident.gif?b=266&r=3qytg5495w&a=64670&p=4
A leading bird conservation group has notified the Obama administration that it intends to sue over a rule for renewable energy projects that would permit injuring, killing or disturbing bald eagles for up to 30 years.

The American Bird Conservancy (ABC) today sent a notice of intent to sue to Interior Secretary Sally Jewell and Fish and Wildlife Service Director Dan Ashe saying the group plans to take legal action against the Interior Department and FWS over the revised eagle “take” rule announced in December 2013 and implemented earlier this year.

ABC states in the eight-page notice of intent that the rule — which allows Fish and Wildlife to grant programmatic incidental take permits to wind farms, transmission projects and other long-term energy operations for a much longer period than the previous five-year term — is riddled with violations of federal law, including the National Environmental Policy Act (NEPA), the Endangered Species Act (ESA) and the Bald and Golden Eagle Protection Act.

“ABC strongly supports wind power and other renewable energy projects when those projects are located in an appropriate, wildlife-friendly manner and when the impacts on birds and other wildlife have been conscientiously considered and addressed before irreversible actions are undertaken,” according to the notice filed on behalf of ABC by the Washington, D.C.-based public interest law firm of Meyer Glitzenstein & Crystal.

“On the other hand, when decisions regarding such projects are made precipitously and without compliance with elementary legal safeguards designed to ensure that our nation’s invaluable trust resources are not placed at risk, ABC will take appropriate action to safeguard eagles and other migratory birds.”

The group asserts in the notice that Fish and Wildlife adopted the rule “in the absence of any NEPA document or any consultation under Section 7 of the ESA,” marking it as “a glaring example of an agency action that gambles recklessly with the fate of the nation’s bald and golden eagle populations.”

ABC wants a court to throw out the rule “pending full compliance with federal environmental statutes,” according to a press release accompanying the notice.

“ABC has heard from thousands of citizens from across the country who are outraged that [FWS] wants to let the wind industry legally kill our country’s iconic Bald and Golden eagles,” Michael Hutchins, national coordinator of ABC’s Bird Smart Wind Energy Campaign, said in a statement. “The rule lacks a firm foundation in scientific justification and was generated without the benefit of a full assessment of its impacts on eagle populations.”

Laury Parramore, an FWS spokeswoman in Arlington, Va., said the agency cannot comment on pending litigation.
The notice of intent to sue is the latest in the ongoing debate over federal regulation of the wind industry and the impacts of the growing number of wind turbines on birds and bats.

The rule at issue in the notice of intent amends an eagle permitting program established in 2009 that initially allowed the five-year take permits only if the disturbing, harming or killing of eagles was unavoidable.

The take permits are only to be issued to applicants that commit to strict adaptive-management measures that include site-specific steps that reduce impacts to eagles. Fish and Wildlife would review the permits and the conservation measures every five years.

Groups including the National Audubon Society and Natural Resources Defense Council strongly opposed FWS’s decision to allow 30-year eagle take permits.

The National Audubon Society says it is considering following ABC’s lead and taking similar legal action.

“This is an eagle-killing rule that deserves to be challenged,” Mike Daulton, Audubon’s vice president for government relations, said in an emailed statement. “We strongly support the deployment of renewable energy, but reckless slaughter of eagles is not an option. We’re considering legal options of our own.”

ABC “made a decision to go it alone” with legal action because the group “feels very strongly about this issue,” said Robert Johns, a spokesman for the group.

“We’re losing many eagles a year,” Johns said.

What’s more, the federal government has filed only one criminal enforcement action involving bird-protection laws at a wind energy facility, entering a plea agreement last year with Duke Energy Corp. that involved fining the North Carolina-based energy giant $1 million for killing more than 150 migratory birds, including 14 golden eagles, at two Wyoming wind farms over the past few years (Greenwire, Nov. 25, 2013).

“We think that’s ridiculous,” Johns said.

The American Wind Energy Association has argued that the industry takes enormous steps to protect birds, more so than other industries, and that when it comes to eagles, the industry has been unfairly singled out. AWEA has pointed to studies that show eagle populations over the last 40 years have stabilized and that the wind power industry conducts more pre- and post-construction studies to guard against impacts to eagles and other sensitive avian species than any other energy sector.

Lindsay North, an AWEA spokeswoman, said the group would not comment on the ABC notice of intent to sue.

But the wind industry says such incidental take permits give it more regulatory certainty while allowing it to incorporate measures that help protect eagles. And the industry has argued that it makes no sense to not have an eagle permitting system that covers the typical 30-year life of an operating commercial-scale wind farm.

Ashe, the FWS director, told Greenwire last year that the permit should also help protect eagles by ensuring that wind power developments take proper steps to avoid affecting the iconic birds (Greenwire, Dec. 23, 2013).

But ABC states in the notice of intent to sue that the 30-year take rule “undermines the nation’s longstanding commitment to conservation of eagles” and that the group has no choice but to take legal action to “ensure that eagles, and the millions of Americans who enjoy and benefit from them, obtain the legal protections to which they are entitled under U.S. law.”

Vote Conservative for an End to the Wind Scam!!!

A PC government will not allow connection of Gilead and wpd wind projects to the grid

For release April 30, 2014

MPP Todd Smith confirms that a PC government will not allow connection of proposed County wind projects to the grid

Prince Edward County, ON — Responding to a request for clarification by CCSAGE Naturally Green regarding the PC Party’s position on wind projects currently “in the pipeline”, local MPP Todd Smith has confirmed by letter that, under a PC government, such projects will not be allowed to proceed if there is no municipal consent.

Smith referred to the text of Bill 42, the Affordable Energy and Restoration of Local Decision Making Act, introduced by Tim Hudak in the Ontario Legislature in 2012. Smith said, “The intention here is quite clear that, regardless of where in the process a project is, provided a project is not connected to the grid, it is our intention not to go ahead with it unless it has municipal consent. Clearly, the projects planned for Prince Edward County do not have municipal consent and thus, would be cancelled.”

Smith reconfirmed the PC Party’s position after consultation with Tim Hudak, and taking account of County Council’s “not a willing host” motion passed on April 23, 2013.

Following receipt of Smith’s letter, Gary Mooney of CCSAGE said, “From the day that he was elected, Todd has been 100% supportive of the several County groups opposing wind turbines on grounds of adverse effects on human health, the natural environment, heritage, property values, the local economy and municipal control. We couldn’t ask more from our MPP.”

Smith’s statement covers both Gilead Power’s 9-turbine Ostrander Point project, already given REA approval but still under appeal, and wpd Canada’s 29-turbine White Pines project, currently undergoing technical review by the Ministry of the Environment.

Informed of the contents of Smith’s letter, Mayor Peter Mertens had this to say, “We are greatly indebted to Todd for his close attention to the concerns of County residents and business owners, and for his support of the position of County Council.”

STOP SUBSIDIZING USELESS, INEFFICIENT WIND!

Perverse Renewables Policy turns Wind Power into Super-Predator

great white shark

The RET turned me into an occasional Super-Predator.

On the rare occasions when wind power is able to deliver meaningful output to the grid – usually at night-time – generators are more than happy for the dispatch price (the price paid by the grid operator to generators) to hit zero – and have even paid the grid operator to take their output, on occasions.

In Australia, that perverse market outcome is a product of the mandatory Renewal Energy Target – which forces retailers to take wind power output ahead of every other generation source (failure to take wind power and Renewable Energy Certificates (RECs) that go with it, leaves the retailer liable to pay a fine (the “shortfall charge”) of $65 for each MW/h the retailer falls short of the mandated target; the REC that is issued to wind power generators for each MW of wind power dispatched (currently worth around $28); and the Power Purchase Agreements wind power generators hold with retailers, containing fixed and guaranteed guarantee minimum prices of between $90-120 per MW/h (3-4 times the cost of conventional power).

As a result of the above, when they’re delivering to the grid, wind power generators are happy to watch the dispatch price plummet, punishing base-load generators, while having no impact on their own returns.

Some might call it “predatory pricing” – Travis Fisher an American economist with the Institute for Energy Research certainly does.

Here’s a very detailed analysis of the US energy market by Travis in which he demonstrates just how perverse renewable energy policy is.

What Travis says about predatory pricing by wind power generators in the US has direct relevance to what’s happening in the Australian energy market. In the piece below just substitute the “Clean Energy Council” for the “American Wind Energy Association (AWEA)”; and substitute “Renewable Energy Target (RET) and Renewable Energy Certificate (REC)” for “Renewable Portfolio Standards (RPS) and Production Tax Credit (PTC)”.

AWEA’s Bold Push for More Wind Welfare Wind
Institute for Energy Research
Travis Fisher
23 April 23

The American Wind Energy Association (AWEA) is making an all-out effort to convince Congress to renew the wind production tax credit (PTC), the wind industry’s lucrative subsidy that expired at the end of 2013. AWEA is desperate to revive the PTC and, unfortunately, its most recent lobbying push relies heavily on misinformation and half-truths in order to divert attention away from the PTC’s many critics.

To set the record straight, this article addresses some of AWEA’s flawed arguments and glaring omissions. The PTC, while incredibly valuable to owners of wind power facilities, hurts U.S. taxpayers and undermines the economic efficiency and physical reliability of the U.S. power grid.

Background

AWEA is a well-funded and well-organized industry association with 40 years of experience influencing public policy and an annual budget of more than $30 million. Perhaps due to AWEA’s skilled lobbying efforts, four different administrations and countless lawmakers have sided with AWEA and provided the wind industry a direct hand-out from American taxpayers.

Initially signed into law by George H. W. Bush as part of the Energy Policy Act of 1992, the PTC has expired and been renewed multiple times. Each renewal lasted only a short period, designed to extend the industry’s coveted subsidy for just one or two more years. Most recently, the PTC was extended through the 2013 calendar year as part of the “fiscal cliff” legislation passed in early 2013. A PTC extension for 2014 recently passed the Senate Finance Committee after being added to a tax extenders package by one of the wind industry’s most enthusiastic supporters, Senator Chuck Grassley. The Joint Committee on Taxation projects that a one-year extension of the PTC will cost American taxpayers over $6 billion.

The Institute for Energy Research (IER) has consistently argued against the PTC and highlighted its negative effects, which range from threatening grid reliability to redistributing federal tax dollars to a minority of U.S. states.

AWEA and Exelon Spar Over the PTC

As part of AWEA’s push to renew the PTC, it recently published a 28-page report that attempted to show that the PTC does not distort electricity markets and does not harm nuclear plant owner-operators. The policy report comes as a direct response to Exelon Corporation, the owner of the largest fleet of nuclear plants in the U.S. The issue at the center of the policy debate is “negative pricing.”

What is Negative Pricing?

Unlike the stable and predictable price of electricity at the retail level, market prices for wholesale electricity can fluctuate widely throughout the day – usually referred to as on-peak and off-peak prices – and across seasons. For example, wholesale prices tend to range between $30 and $50 per megawatt-hour but can drop into the negative or spike well above $500 per megawatt-hour. When the price becomes negative, electric generators are actually paying the grid to take their electricity. Several factors influence wholesale prices, namely supply, demand, and transmission constraints. Fundamentally, negative wholesale prices send a distress signal to markets that the supply and demand balance on the grid is economically unsustainable and suppliers need to reduce their output.

Why do sellers not drop out of the market when negative pricing occurs? As the Energy Information Administration (EIA) notes, “negative prices generally occur more often in markets with large amounts of nuclear, hydro, and/or wind generation.” That is because each of these technologies has an incentive to continue operating even when its facilities are temporarily paying the grid to take their power.

Nuclear plants are designed to run at full output and not “ramp” up and down, making them very reliable but inflexible. In times of very low demand, nuclear plants will sometimes take negative prices rather than go through the long and expensive process of lowering their output. Similarly, hydroelectric plants sometimes take negative prices in power markets because they are forced to run in order to comply with environmental requirements that force them to release water, regardless of whether the electricity is needed.

Unlike nuclear or hydro producers, the wind industry actually profits from negative prices because the PTC is such a large subsidy. Wind producers receive PTC payments per unit of power produced (even when the power has no value whatsoever to the grid), so they flood the grid with uneconomic power and ignore the distress signal sent by negative prices. Specifically, wind producers are paid the equivalent of $35 per megawatt-hour in PTC subsidies, so a wind producer taking the PTC can still profit while paying the grid to take its electricity.

Wind’s inflexibility in the face of negative prices is therefore a policy problem with a policy solution (let the PTC expire), not a matter of physics or environmental restrictions.

The threat to baseload generation from negative prices is very real. Already, Dominion closed its Kewaunee Nuclear Plant in Wisconsin 20 years ahead of schedule and Entergy plans to retire its Vermont Yankee Nuclear Plant at the end of this year. Both companies cited economic considerations as the reason for closing the plants. While it is true that low-cost natural gas is partially responsible, it is also clear that artificially low prices caused by the PTC during off-peak hours played a role. In fact, the Department of Energy’s assistant secretary for nuclear energy referred to this emerging pattern of nuclear plants shutting down early as “a trend we are clearly very, very concerned about.”

Exelon’s Argument

Exelon argues that the PTC wreaks havoc on baseload or “around-the-clock” generation such as nuclear power by encouraging negative prices in wholesale electricity markets. In contrast to baseload units, electricity production from wind peaks at night and in the early morning when electricity demand is low, which contributes to a situation of over-supply. A 2012 study commissioned by Exelon maintains that PTC-related negative prices harm baseload power and grid reliability because they “directly conflict with the performance and operational needs of the electric system.” Essentially, if the PTC is extended, it will induce more negative pricing events during off-peak hours, and make more baseload units uneconomic. In other words, the PTC perpetuates a system of predatory negative prices that attack reliable (and far less subsidized) baseload producers.

The power grid reliability implications are straightforward. The PTC is making reliable generation uneconomic, while subsidizing unreliable wind power. Without reliable generation up and running, many regions will struggle to meet seasonal peak demand in winter or summer. For most of the country, the highest peaks occur in the summer months. The following chart from a study on the intermittency of wind power illustrates just how little wind contributes to those summer peaks (click on the graph for a clearer view).

ERCOT-Wind-Power

On these arguments against the PTC, IER is not alone – energy experts across the board agree with Exelon. The Congressional Research Service (CRS) acknowledged the problem of negative pricing, noting in 2012 that “[n]egative power prices associated with wind power might generally occur at night when wind is producing at high levels. Large amounts of wind power generation can potentially contribute to transmission congestion and result in negatively priced wholesale power in certain locations.” The EIA also specifically lists the PTC as a cause of negative prices.

The same CRS report from 2012 outlined the reliability issues associated with wind, predicting that “should wind power continue to experience growth, it is uncertain whether current [regional transmission organization] market designs would function to ensure availability of the types of generation that would be necessary to both maintain resource adequacy and manage the variable and intermittent nature of wind power.”

Last December, the New York Times published an article about how wind and nuclear power “are trying to kill each other off” and noted the “cannibal behavior” of wind in power markets.

Focusing on Texas, which is the U.S. market hit hardest by wind power, Public Utility Commission Chairman Donna Nelson testified in 2012 that “[t]he market distortions caused by renewable energy incentives are one of the primary causes I believe of our current resource adequacy issue … [T]his distortion makes it difficult for other generation types to recover their cost and discourages investment in new generation.” And as the non-partisan Center for Strategic and International Studies wrote in May of 2013, “[a] growing number of analytical reports … point to the negative impact of renewable energy mandates and subsidies (direct and indirect) on the competitiveness of nuclear power.”

In fact, some environmentalists are troubled by wind power’s parasitic effect on nuclear power. James Hansen’s observation relating to a similar policy – renewable portfolio standards – actually underscores Exelon’s argument regarding the PTC:

The asymmetry finally hit me over the head when a renewable energy advocate told me that the main purpose of renewable portfolio standards (RPS) was to “kill nuclear”. I had naively thought that the purpose was simply to kick-start renewables. Instead, I was told, because utilities were required to accept intermittent renewable energies, nuclear power would become less economic, because it works best if it runs flat out.

In short, the predatory pricing enabled by the PTC is real, it is harmful to reliable generation, and it hits nuclear generation the hardest. AWEA cannot shrug off the harmful effects of the PTC or pretend they do not exist. As an Exelon executive said recently, “[w]e can work with AWEA on a clean energy future but we can’t deny the truth.”

AWEA’s Fuzzy Math

AWEA’s policy report, titled “The facts about wind energy’s impacts on electricity markets: Cutting through Exelon’s claims about ‘negative prices’ and ‘market distortion,’” attempts to turn the negative pricing arguments on their head by narrowly focusing on the wind industry’s side of the story. Specifically, AWEA flatly misrepresents the effect of the PTC on wholesale markets by omitting important information and making bogus comparisons.

AWEA claims the impact of wind on wholesale markets is “entirely market-driven” and “widely seen as beneficial.” The first claim is patently false and the second is very misleading.

No one at AWEA can claim with a straight face that the growth in the wind industry is “entirely market-driven.” AWEA spends millions of dollars a year lobbying for renewable energy mandates in the states and for the PTC and other support at the federal level. If wind were truly “market-driven,” there would be no need for AWEA’s massive lobbying effort for mandates and subsidies. The mandates and subsidies AWEA supports are the exact opposite of “market-driven.”

AWEA knows better than any other organization just how much government support the wind industry receives – support that simply does not exist for baseload generation and should not exist for any power generation source whatsoever. Because of AWEA’s lobbying efforts to mandate the use of their product, 29 states and the District of Columbia mandate certain levels of renewable energy generation (these laws are commonly called Renewable Portfolio Standards or RPSs). Because the vast majority of the power being used to satisfy these requirements comes from wind plants, the wind industry currently enjoys a government-mandated market share. This alone is enough to discredit AWEA’s comment about Exelon obscuring the “real story of wind energy successfully competing against more expensive forms of energy in the market.” AWEA knows the wind industry is winning on government support, not the free market.

State-level mandates aside, AWEA attempts to downplay the role of the PTC specifically in undermining baseload generation. It is vitally important to realize that negative prices are not the only indicator of market distortion. AWEA draws a false dichotomy in its report between the “real economic savings” from wind and the “exceedingly rare” negative prices that cause market distortions. Here, AWEA downplays the possibility that market distortion can exist without negative prices. But just as the PTC subsidy causes negative prices at the extreme, it regularly causes artificially low power prices in off-peak hours that can be just as damaging to baseload generation.

AWEA then makes the stretch that, because the negative pricing problem was less rampant in 2013 than it was in 2012, market distortions from the PTC no longer exist or are “extremely rare.” This argument is fatally flawed as demonstrated by the following analogy. Consider if a thief said, “I didn’t do anything wrong in 2013. I only stole half as often as I did in 2012.” Such a statement would be silly because theft is theft. The same is true of harmful market distortions.

Just because there were fewer hours in 2013 with negative prices, it does not follow that the PTC is any less of a problem. Even in a world where prices were never to fall below zero, market distortion caused by the PTC could still render baseload units uneconomic. For example, reliable power plants would still close if prices were consistently at or very near zero. As discussed above, this is what we are seeing in practice, AWEA’s distractions notwithstanding.

Also, the 2012 data are so bad that 2013 was bound to be a less damaging year – in fact, one of Exelon’s plants took negative prices for 8.3 percent of all hours in 2012. The fact that this statistic fell to 4.3 percent in 2013 is little consolation. Essentially, we can debate the extent to which the PTC continues to cause negative prices, but to recast the PTC as incapable of distorting power markets is disingenuous on AWEA’s part.

Finally and perhaps most disturbingly, AWEA’s report fails to capture any long-term effects of the PTC. For example, in several places the AWEA report talks about wind power “replacing the most expensive and polluting sources of energy.” In practice, wind cannot do this because wind is unreliable. Wind cannot replace the most expensive source of electricity generation because those generation sources only run at peak times. The wind does not blow when AWEA wants it to and millions of dollars spent on lobbying cannot change that simple fact of the physical world.

Furthermore, as James Hansen and others have observed, heavily subsidized wind power is actually displacing zero-emission nuclear power rather than the “most polluting” sources AWEA references. If the goal of the PTC was to wipe out America’s nuclear fleet, then it is succeeding. But if the goal was to support zero-emission generation, then it has backfired miserably. The PTC has wasted billions of taxpayer dollars to replace nuclear, a clean technology that works, with one that only sounds good and is fundamentally unreliable.

Conclusion

The wind production tax credit distorts power markets by allowing wind producers to profit from artificially low prices. Such market distortion undermines the reliability of America’s power grid in the long run by forcing reliable baseload power plants to close -including nuclear plants, which in turn defeats any environmental purpose for keeping the PTC.

AWEA’s recent study is a desperate attempt to obscure the very real and worrisome long-term effects of the PTC by relying on misleading data. The PTC has rightly received scrutiny from energy experts across the political spectrum, and it deserves a more comprehensive analysis than AWEA provides in its report.
IER Economist Travis Fisher authored this post.
Institute for Energy Research

The only significant difference between the Australian energy market and that detailed above, is that Australia doesn’t have any nuclear power generation at all.

Instead, it’s base-load gas generators who are being pounded by wind power generators’ ability to periodically crash the dispatch price.

By base-load gas generators, we’re referring to either gas/thermal plants (where gas is used to fire boilers, create steam and run turbines) or highly efficient Combined Cycle Gas Turbines.

One early casualty was Stanwell (Queensland’s largest power generator) – which back in February took the extraordinary step of announcing it would mothball its biggest gas-fired power station – the Swanbank E power station, near Ipswich – a highly efficient Combined Cycle Gas Turbine (CCGT) plant – and resurrect a coal facility built in the 1980s. Stanwell put its inability to operate its gas-fired plant squarely down to the market distortions created by the mandatory RET (see our post here).

What’s doubly perverse is that generating power using CCGTs produces about 50% less CO2 emissions than coal/thermal. Instead of CCGTs, generators have invested $millions in Open Cycle Gas Turbines (OCGTs) that emit 3-4 times the CO2 per unit of electricity – when compared to a modern coal-fired thermal plant and cost a small fortune to run (between $200-300 per MW/h, compared to $25 for coal/thermal). So much for a policy designed to “save the planet”.

Because wind power can only be ever delivered at crazy, random intervals – 100% of its capacity has to backed up 100% of the time with spinning reserve and inefficient OCGTs – which can be deployed in a heartbeat to keep the grid balanced — and the lights on – whenever wind power output varies or disappears altogether (see our post here).

Wind power generators’ ability to game and distort the dispatch price by operation of the mandatory RET (and the matters outlined above) is about to come under the microscope of the RET review panel.

The top-flight energy market consultancy, ACIL Allen has been directed by the panel to focus on the cost impacts of renewable energy in the electricity sector. And that means the whole electricity market – and the long-run impact the RET will have on power prices, including the impact of periodic predatory pricing by wind power generators knocking out highly efficient base-load gas generators – like Stanwell’s Ipswich plant.

Given the make-up of the panel – and the terms of its brief – we doubt that ACIL Allen will pull any punches.

million_dollar_baby_clint_eastwood_clint_eastwood_060_jpg_pvrk

Now – have I got your attention?

Liberals are a Detriment to Our Province! Election Needed NOW!

 

Gas Plant scandal is just one of the many more scandals ongoing with the Liberals!!!!

by thebiggreenlie

Everyone seems to have their “panties in a knot” over the gas plant scandal in Ontario but there are many more recent muck ups unfolding right now within Queen’s Park that involves the Western portion of our once great Province!

Wynne in tandem with Horwath has basically ruined this Province with one bad decision over another and it will be decades before we can fix this mess IF these tow failed leaders are thrown out of the Pink Building once and for all.

Without a house cleaning like no other in modern history Ontarians should all start to think about moving to another Province for a new start before there isn’t anything left to hang on to except a bleak broken and overpriced future!

Time for Wynne to go and take all her herd of gerbils with her along with the NDP who have clung to Wynne’s pant legs like thirsty pups and give us all a break!

Jarvis: We need a conscious uncoupling

Ontario Premier Kathleen Wynne speaks to The Empire Club of Canada in Toronto on Monday, April 28, 2014. (Frank Gunn/The Canadian Press)

Ontario Premier Kathleen Wynne speaks to The Empire Club of Canada in Toronto on Monday, April 28, 2014. (Frank Gunn/The Canadian Press

Anne Jarvis
Apr 29, 2014 – 6:30 PM EDT

The government is a shambles. It’s time for the NDP to stop propping it up. Andrea Horwath should pull the plug.

Consider the news this week (and it’s still early). The government admitted that it – specifically Premier Kathleen Wynne, when she was Transportation minister – “negotiated away” its oversight over the $1.4-billion Herb Gray Parkway, the biggest infrastructure project in the province. It bungled a major plan to modernize gambling, astray in its projections by a total of almost $5 billion and hundreds of jobs, according to a damning report by the auditor general. While the government touts a new, $2.5-billion fund to attract business, the skyrocketing cost of electricity is “breaking” already battered manufacturers. And the deficit, which the government said it would eliminate by 2017-18, is expected to rise with a free-spending budget designed in part to woo the NDP and be an attractive platform for an election.

Among the revelations in the reports and emails obtained by the NDP under a Freedom of Information request and reported by The Windsor Star’s Dave Battagello, Ontario’s Transportation Ministry “consistently notes” that the contract for the parkway, awarded by Wynne when she was transportation minister, “does not allow the MTO to exercise its role and responsibilities as the legislated road authority and puts the provincial interest (the public) at risk.”

The agreement provided no way for the ministry to intervene to ensure standards were met, no authority to change or stop construction if there was a serious problem and no penalties.

“…there was nothing that MTO could do on its own to force compliance with Canadian standards.”

Current Transportation Minister Glen Murray wrote in an email to the CEO of Infrastructure Ontario last June, “We may have compromised our ability to enforce the law by negotiating our authority away.”

And we all know what happened with the parkway: hundreds of potentially faulty girders were installed and later had to be ripped out.

The Ontario Lottery and Gaming Corporation’s plan to modernize gambling two years ago, approved by the cabinet that included Wynne, was supposed to create jobs. Instead, according to Auditor General Bonnie Lysyk, it will likely cost jobs. Profit that would go to the government to pay down the deficit was supposed to increase by $4.6 billion over five years; now, the projection is less than $2 billion. The plan was supposed to draw $3.2 billion in investment; now the projection is less than $1 billion.

In short, the government didn’t do its homework. It banked on as many as a dozen new casinos, but five municipalities either voted against them or changed them significantly. It abruptly cancelled the sharing of slot machine revenue with horse racing and then had to spend half a billion dollars helping the industry’s transition. Meanwhile, the OLG has had five board chairs and seven CEOs in nine years.

The government on Monday announced its $2.5-billion Jobs and Prosperity Fund to attract investment and help existing businesses expand. The same day, Gary Goodyear, the Minister of State responsible for the Federal Economic Development Agency for Southern Ontario, told a conference at the University of Windsor that skyrocketing electricity costs are “breaking” manufacturers.

READ MORE HERE:

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