Friday, December 19, 2014

Jevon's Paradox

In 1866, Stanley Jevons wrote about the seemingly contradictory determination that increased efficiency results in increased consumption: "It is wholly a confusion of ideas to suppose that the economical use of fuel is equivalent to a diminished consumption. The very contrary is the truth. As a rule, new modes of economy will lead to an increase of consumption." 

It is now referred to as Jevon's Paradox. A copy of Stanley's book can be accessed here:  Jevon's Paradox

Sunday, December 7, 2014

Innovation Powering Up India


1.5 Billion People in the World do not have Electricity
India is Deploying Renewable MicroGrids to Close the Gap
December 7, 2014

Author: 
Donald S. Bradshaw, Jr., President, Velerity


An innovative hybrid solar-biomass DG power plant in India is bringing electricity for the first time to villages in the Indian state of Bihar.  Another innovative design, a biomass gasifier running on rice husks, has been deployed in 85 locations across Bihar.  According to an International Energy Agency study, approximately 579.1 million people do not have access to electricity in India. [1]  According to a study published by the Vasudha Institute in India, “…close to 100,000 villages remain un-electrified, with over 45% of the population having no access to electricity.” [2]  Based on the results of the 2011 Census, out of 246.7 households in India, 32.8% of households, or 80.9 million households, did not have access to electric light. [3]

There is a strong link, both empirically and statistically, between access to energy and economic well-being, as seen in the following chart.  According to a recent report, Rural Electrification in India, having access to reliable electricity “…represents a key driver behind economic development and raising basic standards of living.” [4]  On average, increasing per capita GDP by $10 requires approximately a 93,000 Btu increase in primary energy consumption.  In the data below, Indian primary energy use is 20 million Btu per person per year, and per capita GDP is $1,055 per year. [5]


















Electrification in India brings significant benefits to agrarian economies, increasing irrigation and crop production.  It has also been shown that bringing electrifying households can reduce a household’s expenditures, when switching from kerosene lighting to electric lighting. 

One of the States in India with the lowest penetration of electricity for household lighting is Bihar, with only 16.4% of its households reporting electric lighting in the 2011 Census.  This corresponds to 15.8 million households in Bihar which do not have electricity, out of a total of 18.9 million households. 

Being connected to the grid, however, does not guarantee having access to electricity.  Once a village in India has connected to the grid, generation capacity in India is inadequate to meet demand.  There are four main reasons why supply does not meet demand.  The first is inadequate installed supply.  Economic growth in India in recent years has outstripped the ability to add additional power plants.  The government of India estimates in 2014 that there is a daily shortage of capacity in the country of 30,000 MW.  This results in power rationing through planned outages. [6]  A second major factor is breakdowns and maintenance schedules of existing power plants, forcing plants to be off line even though power is required.  The third reason is the lack of available capacity in the distribution and transmission lines to transport the power.  The fourth reason is the lack of revenues due to subsidization, customers not making payments, and the stealing of power.

According to the World Bank, “In India electricity theft leads to annual losses estimated at US$4.5 billion, about 1.5 percent of GDP.[7]   According to the World Bank, annual losses by the power sector are expected to reach $27 billion per year by 2017.  Between 2007 and 2012, India installed 50 GW of new generation capacity, which fell short of the original goal of 78 GW.    

Planned outages typically occur during times of peak demand, which is in the evening hours.  Outages can last from 2 to 20 hours per day. 

There are many solutions being implemented to address India’s power situation.  For villages that have no power, solutions include:













In the Indian state of Bihar, several innovative approaches are being taken, and I would like to illustrate two of them.  The first is an innovative 3 MW hybrid solar/biomass power system in Barun in the State of Bihar.  The system is utilizing a hybrid design, combining a linear parabolic trough solution, known as CSP (concentrating solar power) with a biomass plant.  The purpose of hybridizing the solar with the biomass plant is to be able to integrate some degree of dispatchability into the operation of the plant. 

The plant has been given the designation SCOPE BIG, which stands for Scalable CSP Optimized Power Plant Engineered with Biomass Integrated Gasification.  It is designed to be demonstration project for which additional larger scale deployments will follow. 

Participants in the project include Indian-based CSTEP (Center for the Study of Science Technology and Policy, Thermax, the Bihar State Power Generation Company, Energy Centre of the Netherlands, and the National Centre for Scientific Research, based in France.  Fraunhofer Germany is also participating. 

Another innovative approach being taken to address energy and poverty issues in Bihar is Husk Power Systems, which has deployed approximately 85 off-grid biomass gasification plants in India with agreements in place to deploy additional systems on the African continent.  In 2012-2013, India produced an estimated record crop of rice, amounting to 104.4 million tonnes. [8]  As a by-product of rice production, this means that India also produced an estimated 25.1 million tonnes of rice husks. [9]  For the most part it has been determined that these rice husks are disposed of in landfills. 

After evaluating several alternative approaches, the founder of Husk Power Systems,Gyanesh Pandey, developed a gasification system that utilizes waste rice hulls as feed stock.  The system is comprised of a rice husk gasifier, a series of filters to clean up the gas, a gas engine, a 35 kW generator, and a 240 Volt Alternating Current system to connect customers within a two kilometer distance from the plant.  Within several months of an installation, the company usually has a 75% market penetration rate.  The average number of customers per system is between 200 to 250 households and additional commercial customers.  Each residential customer receives two 15 watt compact fluorescent light bulbs and a phone charger.  Each customer pays about $2.20 per month for the service, which reduces their Kerosene use by about 6 to 7 litres per months, with a net saving per household of an estimated $4.40 per month.  Customers can have increased levels of service, if desired. [10]  The system needs about 110 pounds of corn husks per hour to operate at full output. 

There are many innovations that have been deployed to drive costs down and make the system successful.  One of the interesting outcomes is that the bulk of the payments that customers make for their electricity is recycled back into the local economies, for labor and biomass.  More information can be found on their web site:  http://www.huskpowersystems.com/  




[1] Rural Electrification in India – an overview, Bilolikar & Deshmukh, National Power Training Institute, Faridabad
[2] An Endless Wait with an Uncertain Future: Unpacking the Energy Crisis,
[4] Economic and Institutional aspects of Renewables, James Cust, Anoop Singh and Karsten Neuhoff, December 2007
[5] Sustainable Economics, Donald Bradshaw, Book Draft, December, 2014
[6] India faces a daily power outage of 30,000 MW, Livemint, August 11, 2014
[7] Reforming the Power Sector, Public Policy for the Private Sector, Note Number 272, World Bank, September 2004
[8] Pocket Book on Agricultural Statistics 2013, Government of India, Ministry of Agriculture, December, 2013
[9] Agriculture Fuels Renewable Energy in India’s Rice Belt through Husk Power Systems, Feed the Future, Newsletter, November 22, 2013
[10] Husk Power Systems India, Case Study Summary, Ashden Awards Case Study, 2011 Ashden Award, April 2011

Friday, February 21, 2014

Salem MA Natural Gas Plant Approved with Expiration Date

FROM THE NEW YORK TIMES
Source: http://www.nytimes.com/2014/02/21/business/energy-environment/massachusetts-approves-a-gas-power-plant-with-an-expiration-date.html?hpw&rref=science

Massachusetts Regulators Approve a Gas-Fired Power Plant With an Expiration Date

By MATTHEW L. WALD  FEB. 20, 2014

In a hearing in Boston, a state siting board voted 5 to 0 to accept a proposal by a major New England environmental group and a company that wants to build the plant that would allow the plant to open, but require it to emit less and less carbon dioxide until it closed by 2050.For years, proponents of natural gas, including President Obama, have promoted it as a “bridge fuel,” cleaner than coal but not clean enough to solve the climate problem. On Thursday, regulators in Massachusetts, in an unusual vote, put that theory into practice when it approved a new gas-fired power plant with only a limited life span.

The Conservation Law Foundation and Footprint Power reached an agreement over a proposed $800 million plant to be built in Salem Harbor, at the site of a coal plant that will shut this year. The new plant would generate 630 megawatts — although in later years, it would either have to limit its hours of operation, install carbon capture or make investments in renewable energy to stay under the declining emissions cap.

The agreement for progressively lower output and a definite retirement date is a first, according to Jonathan Peress, a vice president of the Conservation Law Foundation. Gas cuts carbon dioxide emissions by about half compared to coal, but it is still far too high in carbon to meet the ultimate climate emissions requirements, he said.

“We want gas to continue to displace coal,” he said. “We just don’t want to worry that we’re going from heroin to methadone.”

The agreement was submitted to the Massachusetts Energy Facilities Siting Board this week.

The plant is scheduled to open in 2016 and would operate normally until 2026, when progressively stricter limits would be imposed. In 2049, its last year of operation, its limit would be about one-quarter what it was in 2016.

Joining in the agreement was a state agency, the Executive Office of Energy and Environmental Affairs, which promised that if the deal was approved, it would be written into the state-issued operating permit for the plant. The state would embark on a program to reduce leaks of unburned natural gas. Methane, the main ingredient of natural gas, is a potent global warming gas.