Tuesday, September 6, 2016

Finance: "Baseload Electricity is High Quality"

Opinion: How Intermittent Renewables Are Harming The Electricity Grid (Oil Price.com)

By Gail Tverberg

Energy products are very different in “quality.” Intermittent electricity is of exceptionally low quality. The costs that intermittent electricity impose on the system need to be paid by someone else. This is a huge problem, especially as penetration levels start exceeding the 10 percent to 15 percent level that can be handled by operating reserves, and much more costly adjustments must be made to accommodate this energy. Even if wind turbines and solar panels could be produced for $0, it seems likely that the costs of working around the problems caused by intermittent electricity would be greater than the compensation that can be obtained to fix those problems.

The situation is a little like adding a large number of drunk drivers, or of self-driving cars that don’t really work as planned, to a highway system. In theory, other drivers can learn to accommodate them, if enough extra lanes are added, and the concentration of the poorly operating vehicles is kept low enough. But a person needs to understand exactly what the situation is, and understand the cost of all of the adjustments that need to be made, before agreeing to allow the highway system to add more poorly behaving vehicles.

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