Saturday, January 13, 2018

How Much Does Climate Change Cost? Try $1.5 Trillion (and Counting)

by Mark Trahant, Yes! Magazine:
The Trump administration, and its allies in Congress, are fighting a losing war. They continue to press forward for the development of oil, gas, and coal when the rest of the world understands the implication of that folly. Global warming is the most pressing issue for our time. Period.
The thing is governments really have two choices when it comes to managing the impact on its people from global warming: spend money on trying to reduce the problem or spend money on cleaning up the catastrophes.
The Trump administration is on the hook for the catastrophe. A report released Monday by The National Centers for Environmental Information pegged the total cost this year at $1.5 trillion, including estimates for Hurricanes Harvey, Irma, and Maria. (And that doesn’t even begin to count the human toll, lost lives, lost jobs, lost opportunity.)
I witnessed firsthand the impact of Hurricane Maria on the island of Dominica last month. We keep hearing stories about the power grid being down (similar to Puerto Rico) and you think, Why? It’s been months. Why aren’t the lights on? Then you see nearly every electrical pole on the island sideways. The entire grid needs to be rebuilt (or better, rethought) and that’s decades of infrastructure. So the figure of $1.5 trillion is far short of what will be needed. Nearly every electrical line, every other house, the damage was so widespread it’s impossible to overstate. And that’s just one island. Multiple the effect across the region. The planet.
Even the United States.
The Centers for Environmental Information says there were 16 weather and climate disasters with losses exceeding $1 billion each across the country last year. These events included one drought, two flooding events, one severe freeze, eight severe storms, three cyclones, and one extraordinary wildfire. These “events,” as the center defines them, resulted in 362 deaths.
Turns out 2017 was a record-breaking year. “In total, the U.S. was impacted by 16 separate billion-dollar disaster events tying 2011 for the record number of billion-dollar disasters for an entire calendar year,” the report said. “In fact, 2017 arguably has more events than 2011 given that our analysis traditionally counts all U.S. billion-dollar wildfires, as regional-scale, seasonal events, not as multiple isolated events. More notable than the high frequency of these events is the cumulative cost, which exceeds $300 billion in 2017—a new U.S. annual record.”
A similar report was published by the Government Accountability Office, including a recommendation that Executive Office of the President “identify significant climate risks and craft appropriate federal responses.”
But instead of trying to reduce the impact—and the costs of weather-related catastrophe—the Trump administration continues on course for new development of oil and gas. The Interior Department announced new rules that, if enacted, will open up nearly all of the United States coastal waters to more oil and gas development beginning next year.
“By proposing to open up nearly the entire OCS for potential oil and gas exploration, the United States can advance the goal of moving from aspiring for energy independence to attaining energy dominance,” said Vincent DeVito, counselor for Energy Policy at Interior, in the news release. “This decision could bring unprecedented access to America’s extensive offshore oil and gas resources and allow us to better compete with other oil-rich nations.”
Or as Interior Secretary Ryan Zinke put it: “The important thing is we strike the right balance to protect our coasts and people while still powering America and achieving American Energy Dominance.”
Dominance is such a funny word. How can any nation be dominant in the face of hurricanes that are ever more powerful and destructive? How does energy dominance work when tens of thousands of Americans will have to move because their homes are no longer there because of fire or storms? What happens if that number grows into the hundreds of thousands? Millions? How can we afford to spend trillions of dollars rebuilding what we have now?
A group of elders on the Bering Sea immediately condemned the Interior Department’s offshore drilling plan. “We told them that in person last October and again in writing, that there were 76 tribes in these regions opposed to this,” said the statement from the elders. “The draft plan implies that Bering Sea communities were ‘generally supportive of some’ oil and gas activity. This is not accurate and there is no evidence of this from Bering Sea communities. For decades, our people have opposed oil and gas activity and we continue to oppose it today. The northern Bering Sea is a very fragile ecosystem. The marine mammals that we rely on use it as their highway and they follow specific migration routes. That is how we know when and where to find them. The noise and vibration associated with drilling will interfere with their sonar and disrupt their migrations. Then we the coastal people will lose our primary food source.”
There is a connection between developing oil and gas and paying the high costs to clean up after a storm. One side of the ledger goes to a few; the oil and gas “industry.” The folks who bought and paid for this administration.
The other side of the ledger is the rest of us. The taxpayers who will foot the bill for this continued folly.
And on the Bering Sea? The folks who live there are one storm away from a tragedy. As the elders put it: “Our people and our way of life are being exposed to danger and we do not understand why.”
Editor’s Note: This article was originally published with a headline stating the cost of climate change is $1.5 billion. The actual figure is $1.5 trillion. Corrected January 12, 2018.

Monday, November 27, 2017

What's the Net Cost of Using Renewables to Hit Australia's Climate Target? Nothing

metering.com
by Andrew Blakers, Australian National University; Bin Lu, Australian National University, and Matthew Stocks, Australian National University, The Conversation: 
https://theconversation.com/whats-the-net-cost-of-using-renewables-to-hit-australias-climate-target-nothing-88021

Australia can meet its 2030 greenhouse emissions target at zero net cost, according to our analysis of a range of options for the National Electricity Market.

Our modelling shows that renewable energy can help hit Australia’s emissions reduction target of 26-28% below 2005 levels by 2030 effectively for free. This is because the cost of electricity from new-build wind and solar will be cheaper than replacing old fossil fuel generators with new ones.

Currently, Australia is installing about 3 gigawatts (GW) per year of wind and solar photovoltaics (PV). This is fast enough to exceed 50% renewables in the electricity grid by 2030. It’s also fast enough to meet Australia’s entire carbon reduction target, as agreed at the 2015 Paris climate summit.

Encouragingly, the rapidly declining cost of wind and solar PV electricity means that the net cost of meeting the Paris target is roughly zero. This is because electricity from new-build wind and PV will be cheaper than from new-build coal generators; cheaper than existing gas generators; and indeed cheaper than the average wholesale price in the entire National Electricity Market, which is currently A$70-100 per megawatt-hour.

Cheapest option

Electricity from new-build wind in Australia currently costs around A$60 per MWh, while PV power costs about A$70 per MWh.

During the 2020s these prices are likely to fall still further – to below A$50 per MWh, judging by the lower-priced contracts being signed around the world, such as in Abu Dhabi, Mexico, India and Chile.

In our research, published today, we modelled the all-in cost of electricity under three different scenarios:
  • Renewables: replacement of enough old coal generators by renewables to meet Australia’s Paris climate target
  • Gas: premature retirement of most existing coal plant and replacement by new gas generators to meet the Paris target. Note that gas is uncompetitive at current prices, and this scenario would require a large increase in gas use, pushing up prices still further.
  • Status quo: replacement of retiring coal generators with supercritical coal. Note that this scenario fails to meet the Paris target by a wide margin, despite having a similar cost to the renewables scenario described above, even though our modelling uses a low coal power station price.
The chart below shows the all-in cost of electricity in the 2020s under each of the three scenarios, and for three different gas prices: lower, higher, or the same as the current A$8 per gigajoule. As you can see, electricity would cost roughly the same under the renewables scenario as it would under the status quo, regardless of what happens to gas prices.

Levelised cost of electricity (A$ per MWh) for three scenarios and a range of gas prices. Blakers et al.

Balancing a renewable energy grid

The cost of renewables includes both the cost of energy and the cost of balancing the grid to maintain reliability. This balancing act involves using energy storage, stronger interstate high-voltage power lines, and the cost of renewable energy “spillage” on windy, sunny days when the energy stores are full.

The current cost of hourly balancing of the National Electricity Market (NEM) is low because the renewable energy fraction is small. It remains low (less than A$7 per MWh) until the renewable energy fraction rises above three-quarters.

The renewable energy fraction in 2020 will be about one-quarter, which leaves plenty of room for growth before balancing costs become significant.

Cost of hourly balancing of the NEM (A$ per MWh) as a function of renewable energy fraction.

The proposed Snowy 2.0 pumped hydro project would have a power generation capacity of 2GW and energy storage of 350GWh. This could provide half of the new storage capacity required to balance the NEM up to a renewable energy fraction of two-thirds.

The new storage needed over and above Snowy 2.0 is 2GW of power with 12GWh of storage (enough to provide six hours of demand). This could come from a mix of pumped hydro, batteries and demand management.

Stability and reliability

Most of Australia’s fossil fuel generators will reach the end of their technical lifetimes within 20 years. In our “renewables” scenario detailed above, five coal-fired power stations would be retired early, by an average of five years. In contrast, meeting the Paris targets by substituting gas for coal requires 10 coal stations to close early, by an average of 11 years.

Under the renewables scenario, the grid will still be highly reliable. That’s because it will have a diverse mix of generators: PV (26GW), wind (24GW), coal (9GW), gas (5GW), pumped hydro storage (5GW) and existing hydro and bioenergy (8GW). Many of these assets can be used in ways that help to deliver other services that are vital for grid stability, such as spinning reserve and voltage management.

Because a renewable electricity system comprises thousands of small generators spread over a million square kilometres, sudden shocks to the electricity system from generator failure, such as occur regularly with ageing large coal generators, are unlikely.

Neither does cloudy or calm weather cause shocks, because weather is predictable and a given weather system can take several days to move over the Australian continent. Strengthened interstate interconnections (part of the cost of balancing) reduce the impact of transmission failure, which was the prime cause of the 2016 South Australian blackout.

The ConversationSince 2015, Australia has tripled the annual deployment rate of new wind and PV generation capacity. Continuing at this rate until 2030 will let us meet our entire Paris carbon target in the electricity sector, all while replacing retiring coal generators, maintaining high grid stability, and stabilising electricity prices.

Andrew Blakers, Professor of Engineering, Australian National University; Bin Lu, PhD Candidate, Australian National University, and Matthew Stocks, Research Fellow, ANU College of Engineering and Computer Science, Australian National University

This article was originally published on The Conversation. Read the original article.