Category Archives for Marketplace Information
Information on the coal market place.
The National Journal is reporting that Gov. Mike Pence, Indiana has sent a letter to the White House openly rejecting the EPA’s “ill-conceived and poorly constructed” Clean Power Plan. Without “demonstrable” and “significant” improvements in the proposed regulation, Pence says his state “will not comply” with the rule.
Gov. Pence also goes on to note that Indiana will use any means available to block the rule’s implementation and criticizes the rule as damaging to Indiana’s economy. Pence notes that the CPP will impact system reliability, force the state to fundamentally restructure its generation system, and that it oversteps the agency’s legal and Constitutional boundaries.
Interesting article on the Utility Dive website that discusses the likelihood of Elon Musk’s stationary storage tech disrupting utility generators.
The short version of the article’s primary argument is that most people won’t have the space or finances to power a home solely on solar panels and Tesla’s batteries. It is much easier and far less expensive to use the existing transmission and utility network to act as the battery.
A recent report by Management Information Services takes a look at the massive, statewide impacts of TVA’s planned closure of almost 3,900 MW of coal-fueled generation and expectations for further closures in the near future. The broad, widespread economic and social impacts on Tennessee’s people, their economy, industry, and productivity are frightening.
A short read of the report’s findings are that, as TVA drops coal from its generation fleet, the people of Tennessee will pay dearly.
- 20% higher electricity rates
- $7 billion reduction in gross state product
- $700 million in lost state and local government tax revenues
Here is another article that looks at the true costs of generating electricity from wind. As I have noted in many previous Coalblog posts, we consistently hear how wind generation has achieved “cost parity” with fossil fuels. However, a closer look at the actual costs involved reveal a much different story, with wind power coming in at an estimated $149 / MWh.
Over the past 35 years, wind energy – which supplied just 4.4% of US electricity in 2014 – has received US$30 billion in federal subsidies and grants. These subsidies shield people from the uncomfortable truth of just how much wind power actually costs and transfer money from average taxpayers to wealthy wind farm owners, many of which are units of foreign companies. …
Interesting discussion on FOX Business channel. Tom Borelli and John Pippy, CEO of the Pennsylvania Coal Alliance discuss the “fundamental transformation” of American energy production.
Editor’s note: This guest editorial, prepared by Dennis Drebsky with Nixon Peabody, LLP, takes a decidedly different look at coal use forecasts. While many energy experts are predicting declines in coal use, Drebsky argues that the sheer size of the Chinese energy market, along with the affordability and reliability of coal, and the Chinese focus on economic development entails a long-term Chinese reliance on coal-based energy.
China is the world’s largest producer and consumer of coal. However, there have been repeated predictions that China’s use of coal will substantially decline during the next decade due to environmental concerns. That China should be a prime target of these concerns should be no surprise since China produces and consumes almost as much coal as the rest of the world combined. A recent survey found that China accounts for 46 percent of the world’s coal production and 49 percent of consumption. To put this in context, China produces nearly four times as much coal as the second largest producer, the United States. Coal accounts for approximately 70 percent of Chinese energy consumption and this use has held steady, if not increased, during the last 30 years.
Reading EENews.net’s January 26, 2015 interview with the CEO of the American Wind Energy Association is an eye-opener.
Despite repeated assurances that the U.S. wind industry is “vibrant” and competitive, Tom Kiernan flatly admits that without further extensions of decades worth of government subsidies, the wind industry still could not compete. In fact the industry would (in his words) “fall off a cliff” if the PTC were discontinued.
We have all heard the quotes and predictions before, as elected officials plainly stated that under their plans to restrict carbon-based forms of energy, electricity prices would “necessarily skyrocket.”
As this mid-December NY Times article clearly shows, New Englanders are now dealing with the results of those misguided, anti-energy policies, with some residents of the area seeing their monthly energy bills exploding by 110%. The article also relayed warnings from the New England ISO stating that “pipeline constraints (are) severe and … the reliability of the system would ‘continue to be threatened’ ” through the winter.