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Friday Green Numbers round-up for July 8th 2011

Green Numbers

With the summer slowdown in travel, I’m re-instating the Friday Green Numbers Round-up – and so without further ado…

  1. Whitehall surpasses 10% CO2 reduction target

    Whitehall has surpassed its target of slashing its CO2 emissions by ten percent in one year, achieving a cut of almost 14 percent.

    Prime minister David Cameron said central government emissions have fallen by 13.8 percent in the past year, reducing energy bills by an estimated ?13 million.

    Topping the table was the Department for Education, which achieved a 21.5 percent cut, while the… Read on

  2. Britain’s richest man to build giant Arctic iron ore mine 300 miles inside Arctic Circle

    Lakshmi Mittal’s ‘mega-mine’ is believed to be the largest mineral extraction project in the region but threatens unique wildlife

    Britain’s richest man is planning a giant new opencast mine 300 miles inside the Arctic Circle in a bid to extract a potential $23bn (?14bn) worth of iron ore.

    The “mega-mine” ? which includes a 150km railway line and two new ports ? is believed to be the largest mineral extraction project in the Arctic and highlights the huge… Read on

  3. Amazon Resists Pressure To Disclose Data On Carbon Footprint

    Amazon revolutionized the retail industry in the United States, and for several years has had a strong presence in Europe and Asia. Its market cap among retailers lags only behind Walmart.

    Despite its successes, the e-commerce giant has attracted criticism for a perceived lack of transparency of its carbon footprint…. Read on

  4. Facebook in the top 10 most hated companies in America

    Business Insider posted an article titled ?The 19 Most Hated Companies In America.? The data was based on the American Customer Satisfaction Index (ACSI), which releases industry results monthly and updates its national index quarterly.

    Facebook was placed at number 10. I decided to take a look at just the 2010 data, which is the latest available if you want to see ratings from all the companies in the US…. Read on

  5. 7 ways cloud computing could be even greener

    Forrester Research is the latest organization to explore the link between cloud computing and green IT.

    Forrester notes that by its nature, cloud computing is more efficient. But here are seven ways that an IT professional can make his or her cloud computing even greener ? regardless of whether or not the approach is public or private:…. Read on

  6. E-On investing $600 million in Illinois wind farms

    Northwest of Kokomo, along U.S. 24 near the Indiana-Illinois state line, the horizon is broken by the sight of dozens of wind turbines slowly turning in the breeze.

    There, in the small town of Watseka, Ill., E-On Climate & Renewables is putting the finishing touches on the Settler’s Trail Wind Farm, and the company soon will start work on the Pioneer Trail Wind Farm in a neighboring portion of Iroquois County.

    E-On also plans to construct a major wind farm across parts of Howard, Tipton, Grant and Madison counties.

    Construction on Phase 1 of the Wildcat Wind Farm is…. Read on

  7. UK’s two biggest solar installations start generating energy

    A huge solar farm in Lincolnshire and another in Cornwall started generating green electricity on Thursday to become the UK’s two biggest solar installations, as developers rushed to beat an imminent cut in government subsidies.

    The 1MW Fen Farm solar park and the 1.4MW Wheal Jane park in Truro are two of several such large-scale projects rushing to connect to the grid. They are trying to benefit from a…. Read on

  8. Missing: 163 Million Women

    AMidway through his career, Christophe Guilmoto stopped counting babies and started counting boys. A French demographer with a mathematician’s love of numbers and an anthropologist’s obsession with detail, he had attended graduate school in Paris in the 1980s, when babies had been the thing.

    He did his dissertation research in Tamil Nadu.

    As it turned out, Tamil Nadu was in fact one of the states where girls had a better prospect of survival, while in 2001 the northwest, a wealthy region considered India’s breadbasket, reported a regional sex ratio at birth of 126?that is, 126 boys for every 100 girls. (The natural human sex ratio at birth is 105 boys for every 100 girls.) The cause for this gap, Guilmoto quickly learned, was that pregnant women were taking advantage of a cheap and pervasive sex determination tool?ultrasound?and aborting if the fetus turned out to be female… Read on

Photo credit Tom Raftery

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Reflections on Logica’s analyst day

Logica Portugal

I attended a Logica Analyst briefing earlier this week in Logica’s recently opened International Utilities Competence Center (pictured above).

The days was chock full of talks from both Logica staff and also from João Torres, President & CEO EDP Distribuição – the Portuguese DSO, and a Logica customer.

Most of the talks were very interesting but two that stood out for me were the ones given by João Torres where he discussed EDP’s smart grid project, called InovGrid and the demo of RMS (Renewables Management System) by Jose Antunes and Rita Burnay. RMS is Logica’s software for managing remote windfarms.

In discussing InovGrid João explained that despite the costs of rolling out a smart grid, EDP felt that the benefits outweighed the costs. The main benefits João saw from smart grids were:

  • increase intelligence, supervision and control of the network
  • improve the efficiency and quality of the electricity supply
  • facilitate the maximising the amount of micro and distributed generation on the grid
  • enable smart metering and smart energy management

InovGrid is one of the most advanced smart grid projects in Europe. EDP now has 3,000 micro-generators on its grid and expects to have 200,000 smart meters installed by the end of 2010.

João was extremely open during his presentation. When asked which communication protocol was best for a smart grid, he said he felt PLC was best but he admitted that it had issues. EDP, he said, have a team assessing protocols and that a lot of the details are still to be decided.

Jose Antunes and Rita Burnay gave a demonstration of Logica’s windfarm management software RMS. The software is designed to manage large numbers of remote wind turbines and allows for quick and easy drill down on information. In the demo, we were shown RMS’s live feed from over 2,000 wind turbines all over the Iberian peninsula. The software collects and stores 300-400 data points from each turbine in realtime simultaneously.

As Jose said, wind turbines typically cost in the order of €1m per MW so one of the main functions of RMS is to minimise downtime of turbines. However, because it also stores all the historical data for turbines, it is able to plot performance of each turbine against the manufacturers SLA’s. I can see this being a popular screen!

Jose also told us that Logica are taking over the management of all of EDP’s wind turbines in Europe and the America’s. This will mean they will increase the current portfolio they are managing from 2GW to 10GW (though I don’t imagine all 10GW will be under one instance of RMS!

Logica’s Chris Beard gave a fascinating talk on a new Logica offering called Smart Office but I’ll come back to that in a separate post.

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The financial markets might be in trouble but renewables are seeing boom times!

renewable energy

Photo Credit pseudorlaya

A couple of interesting announcements were made in Ireland in the last week.

On the 8th of Oct., Eirgrid, the Irish grid operator launched their Grid25 strategy (pdf warning). In the strategy document they announced they are spending €4 billion reinforcing the Irish distribution grid in the expectation of a 60% rise in electricity usage.

The Irish Environment Minister, John Gormley in his Carbon Budget announced that the Irish government is going to target that 40% of electricity consumed in Ireland would be from renewable sources by 2020. This is an increase over the previously stated, already ambitious target, of 33% from renewables.

Ireland had an average electrical demand of 3.2GW in 2007. A 60% increase means an average consumption of 5GW by 2025 and an average of 4.5GW in 2020. This is the date the government has set as its target of 40% from renewables.

40% of 4.5GW means that Ireland will average 1.8GW from renewables in 2020. Assuming that this will come from wind (there is no other viable renewable energy source in Ireland), this will require 5.4GW of installed wind capacity.

Ireland currently has 1GW of installed wind capacity so to hit the target it needs 4.4GW of wind farms to be built.

That’s 366MW per annum or just over 1MW every day until 2020! A 1MW wind turbine would be a significant structure costing in excess of €1m.

So the Irish government has set as a target the sourcing of 1MW extra from wind energy every day for the next 12 years?

I also spotted today that StrategyEye in their new quarterly report are reporting that investment in the Cleantech sector is up 50% this quarter, compared to the first quarter of 2008.

The financial markets might be in trouble but renewables are definitely seeing boom times!

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Why don’t we already have a real time market for electricity?

Supply and Demand
Photo Credit whatnot

If Demand Response is such a good idea and will help get more renewables onto the grid, why isn’t it being embraced by the grid management companies?

Most grid management companies have been in business for decades managing a grid in which the supply is manageable and the demand is variable but reasonably predictable – typically daily demand is “this day last year +2.5%”!

Now grid management companies are faced with a situation where an increasing percentage of their supply is coming from variable sources (i.e. wind) – if the wind blows more than anticipated, too much electricity is generated and if it blows less than anticipated, the converse is true. This totally messes up their planning and consequently grid management companies hate wind, and think of it as unpredictable, negative demand!

Instead of having such a negative attitude to renewables and shutting them down in favour of fossil fuels they should be asking how can we facilitate the greater penetration of clean renewable energy sources onto the grid.

In the coming years, the demand for electricity will increase significantly as transportation goes more electric (electric and plug-in electric cars, bikes, trucks, etc.) and as heating moves more to electricity. This will add demand to the grid system but this increased demand is eminently movable – for the most part you don’t care if your car re-charges at 7pm or 4am as long as it is re-charged when you want to leave for work at 8am. Similarly with heating, if you use storage heaters (and they will become more common) you don’t care when they suck in the heat as long as they heat the house the following day.

If you can move the demand to a time when traditionally the requirement for electricity was low, you can deliver it over the same infrastructure, thereby selling significantly more electricity without having to massively upgrade the network.

The upshot of this is that an increasing movable demand (the ability to time shift consumption) should be a strong business case for a real-time electricity market. Let demand be guided by supply (as indicated by price). With a real time market for electricity you need never shut down wind farms in favour of fossil fuels, you sell more electricity and you enable a greater penetration of renewables onto the grid. Win, win, win.

Why hasn’t this happened already? Ask your local grid management company.

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Demand response – how to get more wind energy onto the grid

Wind Energy Curtailment

I read a fascinating article in the New York Times yesterday about how the electricity grid in New York can’t always cope with the amount of electricity being produced by the Maple Ridge wind farm and so from time to time the wind farm has to shut down production!

This problem is not unique to New York according to the article:

That is a symptom of a broad national problem. Expansive dreams about renewable energy, like Al Gore’s hope of replacing all fossil fuels in a decade, are bumping up against the reality of a power grid that cannot handle the new demands.

The dirty secret of clean energy is that while generating it is getting easier, moving it to market is not.

This is a problem for the owners/operators of Maple Ridge and similar facilities – how do you get a return on investment if the grid operators can shut you down at a moment’s notice? In fact, how do you get investment in the first place if your income is completely controlled by another company?

Nor is this just an American problem, I heard reports this morning that in the last few days, for the first time ever, Eirgrid (the Irish transmission service operator – grid management company) had curtailed production from Irish wind farms. I contacted Eirgrid’s customer services department and confirmed that this had in fact happened and I will be receiving more information from Eirgrid about this early next week.

Ireland is currently sourcing an average 9% of its energy requirements from wind but has committed to moving to a 33% average from renewables by 2020. If the grid is having difficulties taking in wind energy at 9%, how do they hope to get anywhere near 33%?

Even more insane is the fact that if you are a wind energy producer in Ireland, you have to sign a contract allowing Eirgrid to shut you down up to 17% of the time. Yes, you read that right – at a time when countries are trying to reduce their carbon footprint to comply with Kyoto, the Irish grid operator is dissuading investment in wind energy projects by inserting curtailment clauses and now by going the full hog and shutting down wind farms!

Have Eirgrid not heard of Kyoto? Or CO2 emissions? Or the obvious solution to problems like over capacity from wind – demand response?

The problem Eirgrid have is not an over-supply of energy from wind. It is an over-supply of wind energy when demand for electricity is low (6am on a warm summer weekend morning, for example).

With a proper demand response mechanism in place, if too much electricity is being created by wind, instead of shutting down wind farms and risking future investment in renewables, you simply reduce the price of electricity to the market to stimulate an increase in demand!

The market gets cheaper electricity, from clean sources, investors are less wary of investing in wind so more wind farms are financed, the government stands a better chance of reaching its 33% from renewables by its 2020 target and Eirgrid get a more stable grid (as well as helping the govt reach its target) – win, win, win,win, and win!

Nor is this issue limited to Ireland and the US. Any countries hoping to increase the penetration of renewable (variable) energy supplies will need to initiate a demand response mechanism to manage the demand, thereby stabilising the system and allowing for even greater uptake of renewable energy.

You can be sure I will be putting this to Bill Vogel, CEO of Trilliant, when I am talking to him next week.