Tag Archives: study

UPDATE: Trump Throws Free Market Principles Out Window On Behalf Of Coal, Nuke Plants

This article has been updated to reflect that President Trump has in fact given the order rather than just considering it.

Trump

By Frank Andorka, Senior Correspondent

Well, that’s not very free market of him.

In a move that made George Gilder do a spit take, President Donald J. Trump has ordered the Energy Department to instruct grid operators to purchase electricity from failing coal and nuclear plants in an effort to keep such faltering plants alive and well, according to the Associated Press.

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Earlier today, Bloomberg indicated such a move might be imminent, citing a memo it reviewed that previewed the action the Energy Department has now been ordered to take, using its power under the Federal Power Act – Section 202 powers, to be exact.

At the time, Bloomberg called the move “an unprecedented intervention into U.S. Energy markets,” in the master-of-understatement style for which they are known. The news organization quoted from the memo that argues:

“Federal action is necessary to stop the further premature retirements of fuel-secure generation capacity.”

The phrases “premature retirements” is the key one in the memo, as it has long been policy of this president to try to prop up failing nuclear and coal plants by any means necessary. It was what was behind the study Secretary of Energy Rick Perry ordered shortly after his appointment into the importance of “baseload power” and the completely arbitrary idea that electrical generation facilities must have 90 days of reserve power on site.

The study was expected to find that an increase in coal and nuclear plants were necessary. When it didn’t, Perry ordered the Federal Energy Regulatory Commission to issue a rule that would have provided for bailouts of failing nuclear and coal plants. FERC respectfully declined.

Which is why the ball has landed back in the Department of Energy’s court, and they appear to be on the verge of simply ordering grid operators to buy power from these plants to provide the plant operators with a financial bailout orchestrated by the federal government.

It’s no shock that this action could be coming. After all, it was President Trump who stood in front of West Virginia coal miners and offered them the impossible dream of bringing coal jobs back to the United States, despite the electricity market – including a majority of utilities – voting against such a move with their market-based plans to close the plants instead. To fulfill his campaign promise, the only way to save those jobs is to rig the system in favor of coal plants.

Bloomberg notes the order is only a draft and has not been finally decided yet, but it’s hard to imagine a circumstance under which the president wouldn’t manipulate the market this way to allow him to claim victory in the mythical “war on coal.”

More:

Trump orders ‘immediate steps’ to boost coal, nuclear plants (Associated Press)

Trump Prepares Lifeline for Money-Losing Coal Power Plants (Bloomberg)

Trump To Throw Free Market Principles Out Window On Behalf Of Coal, Nuke Plants

Trump

By Frank Andorka, Senior Correspondent

Well, that’s not very free market of him.

In a move that made George Gilder do a spit take, President Donald J. Trump may soon order grid operators to purchase electricity from failing coal and nuclear plants in an effort to keep such faltering plants alive and well, according to a Bloomberg report.

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A memo reviewed by the news organization says the Energy Department is considering using its power under the Federal Power Act – Section 202 powers, to be exact – to use emergency powers to take such action.

Bloomberg called the move “an unprecedented intervention into U.S. Energy markets,” in the master-of-understatement style for which they are known. The news organization quotes from the memo that argues:

“Federal action is necessary to stop the further premature retirements of fuel-secure generation capacity.”

The phrases “premature retirements” is the key one in the memo, as it has long been policy of this president to try to prop up failing nuclear and coal plants by any means necessary. It was what was behind the study Secretary of Energy Rick Perry ordered shortly after his appointment into the importance of “baseload power” and the completely arbitrary idea that electrical generation facilities must have 90 days of reserve power on site.

The study was expected to find that an increase in coal and nuclear plants were necessary. When it didn’t, Perry ordered the Federal Energy Regulatory Commission to issue a rule that would have provided for bailouts of failing nuclear and coal plants. FERC respectfully declined.

Which is why the ball has landed back in the Department of Energy’s court, and they appear to be on the verge of simply ordering grid operators to buy power from these plants to provide the plant operators with a financial bailout orchestrated by the federal government.

It’s no shock that this action could be coming. After all, it was President Trump who stood in front of West Virginia coal miners and offered them the impossible dream of bringing coal jobs back to the United States, despite the electricity market – including a majority of utilities – voting against such a move with their market-based plans to close the plants instead. To fulfill his campaign promise, the only way to save those jobs is to rig the system in favor of coal plants.

Bloomberg notes the order is only a draft and has not been finally decided yet, but it’s hard to imagine a circumstance under which the president wouldn’t manipulate the market this way to allow him to claim victory in the mythical “war on coal.”

More:

Trump Prepares Lifeline for Money-Losing Coal Power Plants (Bloomberg)

Solar To Surpass Wind In 18 Months, Become Fourth Largest Energy Capacity In The World

By Frank Andorka, Senior Correspondent

energy capacity

The sun slowly starts its global domination.

Look out, wind – solar is about to catch you.

That’s the headline from Frost & Sullivan’s recent analysis Global Power Industry Outlook, 2018, which posits that solar will surpass wind in global energy capacity starting in 2020, making it the fourth largest source of energy generation behind coal, gas and hydro. Less than a year ago, solar surpassed nuclear energy to reach fifth place.

The report says increased battery energy storage capabilities, surges in merger and acquisition activities, and disruptive energy start-ups are the primary reasons the renewable energy sector is seeing this surge – and solar has, so far, been the primary beneficiary of this energy capacity expansion.

The report also predicts that $2.2 trillion will be invested in new energy capacity through 2021, including more than $600 billion in the solar sector alone.

“To navigate through current trends and challenges, organizations must start embracing business models that enhance operational and process efficiency while reducing costs,” said said Vasanth Krishnan, Energy & Environment Analyst at Frost & Sullivan. “Adopting disruptive digital solutions that focus on consumer needs will bring the organization closer to technological and efficiency transformation.”

The report also highlights several other global energy sector trends, including:

  • The 3D’s of Power – Decarbonization, Decentralization, Digitalization – continue to be underlying factors determining the global power market landscape;
  • The residential battery storage market will be the fastest growing in 2018 driven largely by the surge in the behind-the-meter residential deployments in the US, Germany, and Australia;

    • “Analyzing long-term scenarios and defining positioning strategies should be key focus areas for industry participants in the long term,” noted Krishnan. “Also, as the renewable and distributed energy markets mature, a large installed capacity of equipment will need to be serviced, offering attractive growth prospects within the operations and maintenance sector.”

    For access to the executive summary, click here.

    Deloitte Says Businesses Want To – And Are – Fighting Climate Change

    By Frank Andorka, Senior Correspondent

    Deloitte

    Water wet. Pope Catholic. Businesses are trying to fight climate change.

    Go figure.

    According to Deloitte’s eighth annual Energy Resources Report, businesses and consumers are moving forward to create what it calls a “virtuous cycle” of sustainability, including moving to cleaner energy sources like solar. But the study also finds what instinct might tell you from watching American behavior over the past 30 years – businesses are leading the charge, and the people are following.

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    The survey questioned more than 1,500 residential consumers and 600 businesses on their energy use patterns and found that “is leading many businesses to develop and deploy new tools for monitoring and reducing energy consumption, evolve their energy management policies and practices, explore expanding their use of renewable energy sources, and integrate their resource management programs more closely with their operations.”

    Study authors also found 7 in 10 businesses say their customers expect them to get at least some of their energy from renewable sources, with 48% of them saying they are actively trying to do so. And even more telling was this statistic: 21% of the businesses say they are trying to green their energy consumption as a result of demands from business partners.

    That’s why it’s so important to have businesses like Target and Walmart at the top of the Solar Energy Industries Association’s Solar Means Business report every year – with their extensive supply chains that extend throughout the world, decisions at the corporate level have real-world effects throughout the entire supply chain.

    And that influence isn’t limited to supply chain partners. The authors write:

    Residential consumers, particularly younger ones, seem increasingly keen on using clean energy sources in general, and on expanding the use of wind and solar power more specifically.

    Such findings aren’t entirely a surprise to long-term solar industry observers, but it does provide some data to support those who say the clean energy revolution is only just beginning and will continue to grow for the foreseeable future.

    Read the full report below.

    Deloitte Resources Survey 20181261