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.

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:

The Ugly Truth about Industrial Wind in Rural Communities!

Boone County: Wind turbines affect lifestyles of rural residents

In bringing wind turbines to Boone County, some are essentially trying to disguise heavy industry as farming. Some have even had the audacity to call their decision to financially benefit from the wind turbines as “freedom to farm.” It would appear, in fact, that they are looking for freedom to have industry.

This letter is intended to share some of the thoughts of a fourth-generation Boone County farmer in regards to the intention of the County to allow, and some neighbors to promote, wind turbines to be built,  Northern Boone County.

It is important to recognize that the residents of this rural area have chosen to live in this rural area – to make their livings and to enjoy their lives – because of the residential and agricultural zoning that allows them separation from densely populated and designated industrial areas. The reason that designated industrial areas exist is to protect residential and agricultural areas from the byproducts associated with heavy industry, such as excessive sound, light, stray voltage, heavy traffic, and so on.

In bringing wind turbines to Boone County, some are essentially trying to disguise heavy industry as farming. Some have even had the audacity to call their decision to financially benefit from the wind turbines as “freedom to farm.” It would appear, in fact, that they are looking for freedom to have industry.

It seems to be not too far of a stretch to say that, if we have industrial turbines, why can’t we bring in some other industry? Maybe a big factory, like Motorola*, where they could make some electronics? If we call it an electronics farm, probably some industrious individuals could then say that qualified also as freedom to farm.

Someone else said, in the newspaper, “this could be Northern Boone County’s Chrysler.” Could it be that Northern Boone County does not need, nor does it want, a Chrysler? Aside from the logistical and financial untruths of this statement, the residents living in Northern Boone County have chosen to live in this rural environment because they enjoy the lifestyle offered here. If they wanted to live in the shadow of such a mecca of industry, they would live there.

So why, then, have some farmers agreed to the preposterous contract allowing wind turbines onto their property? One sentiment that could explain some of these behaviors is this: at a meeting last fall, someone said to the County Board “if you don’t give us these wind turbines, what are you going to do for us?” It seems to me that as a farmer, you are responsible for making a living by farming, not looking to the county to help you find a way to find subsidies, not demanding that the county allow you to benefit at the detriment of the health, financial well-being, and general lifestyles of your neighbors.

Last week, I drove to Spring Valley for some unrelated business which took me right past hundreds of windmills. It was interesting that on a nice, clear, breezy day, no wind turbines were turning, not one. I liken the wind turbines directly to Motorola, the story of the huge factory in Harvard being known only too well in this area, because of the similarity between the exciting promises made in building them, and the disappointing reality of both scenarios. I sadly wonder how much money was being made for those “farmers” from that day’s harvest,” just as I cringe at the supposed prosperity offered by the Motorola company for the communities in McHenry County.

It is my hope that members of the County Board will carefully consider the facts in making their decisions regarding the proposed zoning amendment and not be swayed by the unlikely promises or desperate pleas offered by wind turbine advocates.

Randy Williams


Source: http://rockrivertimes.com/2…

APR222014

Health Departments Refuse to Acknowledge Complaints About Wind Turbines!

HEALTH ORGANIZATIONS FINALLY REALIZING WIND TURBINES ARE NOT GOOD

Edgar County Watchdog — April 27, 2014

ILLINOIS (ECWd) –

We recently received a letter received from a Divisions Director of a Memorial Hospital takes a shot at an article written touting the grand benefits of wind turbines mitigating the effects of climate change. I have redacted the name of the hospital and the name of the writer to protect them from unnecessary harassment by people who may not agree with him:

I know you have been swamped with many items on your plate, but I wanted to revisit the email I sent you in February regarding Wind Turbines and hospital’s role in ensuring the safety and well being of their communities.  The below article demonstrates the lack of education executives of hospitals have regarding the harm and health effects of some “natural/green” energy sources.  Even though they are marketed as being “green,” it is obvious to families that have been harmed that they have not done their research to protect their community members.  As my CEO, xxxxxxxxx, has always said to the staff here at xMH, ”We offer many services that do not financially benefit our organization, but offer them to meet our community’s needs.”  In addition, xMH’s mission: To positively influence the health of those we serve, makes a loud statement in this situation.  Wind Turbines do not positively influence the health of any family, child, or other living creature, and if proper education is conducted, hospitals executives in our State will become mindful of the harm already being done in their communities or prevent harm in the future.

Should you wish to meet or talk to learn more on how we can help you educate hospital executives (especially those who serve rural areas), feel free to give xxxxxxx, xxxxxxxxx, a call or drop him a note.  His contact information and the article that prompted this email is below. 

This is the article that prompted the email exchange (CLICK HERE).

This kind of makes you wonder what the real agenda of the Vermilion County Health Department is when they refuse to take complaints on Invenergy’s California Ridge wind turbines, especially now that a local school superintendent and a hospital director have written letters referencing the same things.

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