It is Time to Take the Next Step on Energy Policy

The following piece was first published on energypost.eu and the text is reprinted here as a new blog post.
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US desperately needs a national energy policy
September 24, 2015 by Allan Hoffman

The US – and indeed the world – is at a crossroads when it comes to the choice on how we want to provide energy services in the future, writes US energy expert Allan Hoffman. According to Hoffman, the US desperately needs a national energy policy that recognizes the importance of moving to a renewable energy future as quickly as possible. Without such a policy, economic growth, the environment and national security will suffer.

There are two fundamental ‘things’ needed to sustain human life, water and energy. Water is the more precious of the two as reflected in the Arab saying “Water is life.” Without water life as we know it would not exist, and there are no substitutes for water – without it we die.

We also need energy to power our bodies, derived from chemical conversions of the food we consume. We also need energy to enable the external energy services we rely on in daily life – lighting, heating, cooling, transportation, clean water, communications, entertainment, and commercial and industrial activities. Where energy differs from water as a critical element of sustainable development is the fact that energy is available in many different forms for human use – e.g., by combustion of fossil fuels, nuclear power, and various forms of renewable energy.

Critical juncture

Today the U.S., and indeed the world, stands at a critical juncture on how to provide these energy services in the future. Historically, energy has been provided to some extent by human power, by animal power, and the burning of wood to create heat and light. Wind energy was also used for several centuries to power ships and land-based windmills that provided mechanical energy for water-pumping and threshing. With the discovery and development of large energy resources in the form of stored chemical energy in hydrocarbons such as coal, petroleum, and natural gas, the world turned to the combustion of these fuels to release large amounts of thermal energy and eventually electricity with the development of steam power generators. Nuclear power was introduced in the period following World War II as a new source of heat for producing steam and powering electricity generators and ships.

My recommendation is to put a long-term and steadily increasing price on carbon emissions to motivate appropriate private sector decisions to use fewer fossil fuels and more renewable energy and let the markets work

Renewable energy, energy that is derived directly or indirectly from the sun’s energy intercepted by the earth (except for geothermal energy that is derived from radioactive decay in the earth’s core), has been available for a while in the form of hydropower, originally in the form of run-of-the-river water wheels, and since the 20th century in the form of large hydroelectric dams. Other forms of renewable energy have emerged recently as important options for the future, driven by steadily reducing costs, the realization that fossil fuels, while currently available in large quantity but eventually depletable, put carbon dioxide into the atmosphere when combusted, contributing to global warming and associated climate change. Renewable energy technologies, except for biomass conversion or combustion, puts no carbon into the atmosphere, but even in the biomass case it is a no-net-carbon situation since carbon is absorbed in the growing of biomass materials such as wood and other crops.

Support for renewables is also driven by increasing awareness that while nuclear power generation does not put carbon into the atmosphere it does create multigenerational radioactive waste disposal problems, can be expensive, raises low probability but high consequence safety issues, and is a step on the road to proliferation of nuclear weapons capability. Another driver is the now well documented and growing understanding that renewable energy, in its many forms, can provide the bulk of our electrical energy needs, as long disputed by competing energy sources.

Clean future

All these introductory comments are leading to a discussion of the energy policy choice facing our country, and other countries, and my recommendations for that policy. This choice has been avoided by the U.S. Congress in recent years, much to the short-term and long-term detriment of the U.S. We desperately need a national energy policy that recognizes the importance of energy efficiency and moving to a renewable energy future as quickly as possible. That policy should be one that creates the needed environment for investment in renewable technologies and one that will allow the U.S. to be a major economic player in the world’s inevitable march to a clean energy future.

Before getting into policy specifics, let me add just a few more words on renewable energy technologies. Hydropower is well known as the conversion of the kinetic energy of moving water into electrical energy via turbine generators. Solar energy is the direct conversion of solar radiation directly into electricity via photovoltaic (solar) cells or the use of focused/concentrated solar energy to produce heat and then steam and electricity. Wind energy, an indirect form of solar energy due to uneven heating of the earth’s surface, converts the kinetic energy of the wind into mechanical energy and electricity. Geothermal energy uses the heat of the earth to heat water into steam and electricity, or to heat homes and other spaces directly. Biomass energy uses the chemical energy captured in growing organic material either directly via combustion or in conversion to other fuel sources such as biofuels. Ocean energy uses the kinetic energy in waves and ocean currents, and the thermal energy in heated ocean areas, to create other sources of mechanical and electrical energy. All in all, a rich menu of energy options that we are finally exploring in depth.

Controversial

Energy policy is a complicated and controversial field, reflecting many different national, global, and vested interests. Today’s world is largely powered by fossil fuels and is likely to be so powered for several decades into the future until renewable energy is brought more fully into the mainstream. Unnfortunately this takes time as history teaches, and the needs of developing and developed nations (e.g., in transportation) need to be addressed during the period in which the transition takes place.

The critical need is to move through this transition as quickly as possible. Without clear national energy policies that recognize the need to move away from a fossil fuel-based energy system, and to a low-carbon clean energy future, as quickly as possible, this inevitable transition will be stretched out unnecessarily, with adverse environmental, job-creation, and other economic and national security impacts.

My recommendation is to put a long-term and steadily increasing price on carbon emissions to motivate appropriate private sector decisions to use fewer fossil fuels and more renewable energy and let the markets work. Nuclear power, another low-carbon technology, remains an option as long as the problems listed earlier can be addressed adequately. My personal view is that renewables are a much better answer.

The revenues generated by such a ‘tax’ can be used to reduce social inequities introduced by such a tax, lower other taxes, and enable investments consistent with long-term national needs. In the U.S. it also provides a means for cooperation between Republicans and Democrats, something we have not seen for several decades. It is clear that President Obama ‘gets it’. It is now more than time for U.S. legislators to get it as well.

Editor’s Note (Karel Beckman, energypost.eu)

Allan Hoffman, former Senior Analyst in the Office of Energy Efficiency and Renewable Energy at the U.S. Department of Energy (DOE), writes a regular blog: Thoughts of a Lapsed Physicist.

On Energy Post, we regularly publish posts from Allan’s blog,in his blog section Policy & Technology. His writings often deal with issues at the intersection of energy technology, policy and markets. Allan, who holds a Ph.D. in physics from Brown University, served as Staff Scientist with the U.S. Senate Committee on Commerce, Science, and Transportation, and in a variety of senior management positions at the U.S. National Academies of Sciences and the DOE. He is a Fellow of the American Physical Society and the American Association for the Advancement of Science.

Comments on EPA’s Recently Released Report on Fracking

On June 4th the U.S. Emvironmental Protection Agency (EPA) released its draft ‘Assessment of the Potential Impacts of Hydraulic Fracturing For Oil and Gas on Drinking Water Resources’. It can be accessed at www.epa.gov/hfstudy. It was several years in the making, and was undertaken at the request of the U.S. Congress.

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On June 8th I was contacted by Roy Hales, Editor of ‘The EcoReport’ with whom I have worked previously. He asked if I would be willing to be interviewed on my reactions to the draft report, given that I and two Swedish co-authors had published a major review of fracking the previous August (see my blog post entitled ‘Shale Gas and Hydraulic Fracturing-Framing the Water Issue’). I agreed, I read the EPA slide presentation on the assessment as well as the 28-page Executive Summary, and the phone interview took place that evening. My thoughts, and those of one other interviewee, are summarized in the following piece published by Roy in his ejournal (www.theECOreport.com) late last night.

“THE EPA’S PAINFULLY INADEQUATE FRACKING ASSESSMENT
JUNE 8, 2015 ROY L HALES
Hydraulic Fracturing for Oil and Gas and Its Potential Impact on Drinking Water Resources

By Roy L Hales

After five years of research, the EPA’s painfully inadequate fracking assessment has been released. “It’s a bit underwhelming,” said Amanda Frank, from the Center for Effective Government. Dr Allan Hoffman, a retired senior analyst with the Department of Energy, referred to the draft report as “disappointing.” They were referring to the extent that industry was allowed to thwart the EPA investigation.

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Figure ES -1 . Schematic cross – section of general types of oil and gas resources and the orientations of production wells used in hydraulic fracturing. Shown are conceptual illustrations of types of oil and gas wells. A vertical well is producing from a conventional oil and gas deposit (right). In this case, a gray confining layer serves to “trap” oil (green) or gas (red). Also shown are wells producing from unconv entional formations: a vertical coalbed methane well (second from right); a horizontal well producing from a shale formation (center); and a well producing from a tight sand formation (left). Note: Figure not to scale. Modified from USGS (2002) and Newell (2011) .

“My general reaction is ‘why bother?’ I have a lot of compassion for EPA, they must have really struggled with this one, but I don’t feel like they produced a very useful report. There is nothing new. It is accurate as far as I could tell. They did review some records, but then they put in all these caveats about how limited the data really was. It is very clear they probably didn’t get co-operation from the industry. That’s a very bad sign in my opinion,” said Dr Hoffman.

The EPA tried to get companies to monitor their wells. They need to test the water before they started drilling, test during the drilling and test afterwards.

“Most companies flat-out refused to comply. So this report is more of a literature review. It is very thorough, in terms of looking at the available data, but limited because they still can’t say how widespread these impacts are when there so few companies that are willing to let the EPA study them,” said Amanda Frank.

She added, “They admit in the conclusion that, based on the number of wells that we know of and based on the number of incidents that we know of, water contamination is not a widespread issue. But the next sentence basically says there is so much data missing that it is hard to make that claim.”

Hoffman recently co-authored a report on the impact hydraulic fracturing has on water. He shares the impression that the number of incidents is small, but added, “We really don’t know.”

“If industry is not going to co-operate on this, then they are not to be trusted. They have plenty of incentive to hide accidents, spills and all that kind of stuff. That’s what people do, they protect their self interest.”

He believes the number of incidents can be brought under control, but suspects that it may take a major accident for the United States to adopt strong enough regulations and enforcement.

A water impoundment at a drill pad in the Fayetteville Shale gas play of Arkansas. The water will be used in the hydraulic fracturing process, where it will be combined with chemicals and sand, then used to create artificial fractures in gas-bearing rocks to allow the gas to be recovered. Photo Credit: Bill Cunningham, USGS

In the meantime, there are reports of water contamination but it is difficult to prove the cause was fracking without proper testing.
If company’s are allowed to withhold the identity of the chemicals they use, you don’t even know what to test for.

There have been large water withdrawals in areas with low water availability. Though the EPA reported the national average was only 1%, in some counties the number was actually 50%.

(Trent Orr, an attorney with Earthjustice, recently informed the ECOreport that much of California’s fracking takes place in Kern county, one of the area’s most affected by the drought.)

In some states, the industry appears to have virtually taken over. In response to communities that have passed fracking bans, both Texas and Oklahoma have passed legislation overruling local control.

“Is fracking going to be safe? Nothing is. There are risks with everything. Getting into my car and driving to work is not ‘safe.’ Industry needs to recognize this and stop trying to say how safe and wonderful it is. They need to acknowledge there are risks. Then we need to ask ourselves, are these risks worth it?” said Frank.

Many hoped the EPA report would help clarify matters.

“The big disappointment is not so much in terms of the report’s scope, as that the conclusions are not widespread. To really fix the problems with fracking, you need to require baseline testing. If we were to require that in every well across the country, we would have a much better sense of how widespread this problem is,” said Frank.”

On June 9th the Washington Post editorialized on the EPA report and basically agreed with the thoughts documented above in Roy Hale’s article. I reprint the editorial below for your information.

“By Editorial Board June 8 at 7:25 PM
IN THE ongoing war over fracking, the loudest voices try their best to obscure this essential point: The controversial drilling technique doesn’t need to be banned; it needs to be well regulated. That’s how we explain the seemingly contradictory reaction to the Environmental Protection Agency’s assessment of fracking’s effects on drinking water, a draft report released last week that industry and environmental groups each spun to support its side. In fact, it supports neither side.

The EPA doesn’t pretend to have a final and precise answer on the scope of fracking’s impact on drinking water. There were sharp limits on its data. But the agency used 950 sources of information from government, industry and environmental groups, so their findings represent the best that science can offer right now. The conclusion: The EPA couldn’t find evidence that fracking has “led to widespread, systemic impacts on drinking water resources in the United States.”

The assessment continued, “The number of identified cases where drinking water resources were impacted are small relative to the number of hydraulically fracked wells.” Given the economic and environmental benefits of using domestically fracked natural gas — which produces less carbon dioxide than coal when burned — the arguments for fracking bans continue to look very weak.

But, the report goes on, there are several possible mechanisms of contamination that drillers and regulators need to treat with a healthy caution: “We found specific instances where one or more of these mechanisms led to impacts on drinking water resources, including contamination of drinking water wells.” Moreover, given the limitations of the available data, there might well have been instances of contamination that have been so far invisible to regulators.

Though the available evidence doesn’t justify banning the technique — as Maryland and New York have done — it clearly calls for sensibly regulating it. Properly cementing new wells is a must. Ensuring that blowout preventers, critical valves and other safety hardware are in good shape is, as well. Lining pits containing contaminated water can prevent seepage into groundwater. Taking care not to drill too close to another well, particularly old and rickety ones, can reduce the possibility of opening cracks in the subsurface geology that promote the movement of tainted water and chemicals.

Government officials need to pay attention to seemingly mundane considerations, too: Spillage from ancillary operations such as trucking wastewater to containment areas can affect drinking water if accidents happen in the wrong places. Promoting the reuse of fracking water would be a way for drought-prone states with significant fracking activity to conserve water for other uses.”

Addressing Climate Change – A Needed Policy

The following editorial appeared today (25 April 2015) in the Washington Post:

““CLIMATE CHANGE can no longer be denied,” President Obama said in Everglades National Park on Wednesday. “It can’t be edited out. It can’t be omitted from the conversation.” No matter how much, Mr. Obama might have added, Republican presidential hopefuls would like to neglect the matter.
Since the GOP presidential season began, Sen. Ted Cruz (Tex.), the first major Republican to declare his candidacy, sounded the most extreme note on global warming, insisting that his attacks on scientists make him akin to Galileo standing up to 16th-century theological authorities. Shortly after announcing his candidacy, Sen. Marco Rubio (Fla.) offered some vague doubts about how much humans contribute to climate change. Former Florida governor Jeb Bush, who has not yet formally entered the race, said that he is “concerned” about climate change and that the United States should negotiate with other nations about it, but he also suggested that the private economy has already addressed the problem and that he’s more worried about the “hollowing out of our industrial core.”
The common element among GOP leaders is resistance to the notion that the government needs a significant policy against greenhouse-gas emissions. What would the national conversation be like if Mr. Obama got his way and they accepted the need to act with ambition?
Ironically, it wouldn’t be kind to some of Mr. Obama’s policies, but that’s not his fault. Because of the GOP’s abdication, the Obama administration has cobbled together a climate plan from legal authorities it could exercise without Congress’s say-so. The result is an awkwardly designed and inefficient approach. A more reasonable Congress could shape a more efficient plan, with an eye toward sparing the economy gratuitous pain.
Economists have known for decades how to do this. First, the government should eliminate energy subsidies of all kinds — for fmossil fuels as well as renewable energy. Then Congress should put a significant tax on carbon-dioxide emissions and set it to rise over time. The resulting market forces would decide how the economy would move to a greener state. Consumers and businesses would have more reason to consider wasting less electricity, buying efficient appliances and investing in products that require less carbon dioxide to make. Generators of electricity would have an incentive to use cleaner fuels and renewable sources of energy — when it makes economic sense, not when the Environmental Protection Agency decides they must. Companies that exploit giveaway subsidy policies would have to compete fairly.
Republicans, meanwhile, could return any revenue raised to taxpayers, either directly or by reducing taxes on labor, on corporations or in any manner of their choosing.
The nation’s climate debate has been impoverished by the absence of responsible conservative voices. A revenue-neutral carbon tax is a reform Republicans should love. It could end irrational federal subsidies, lower the GOP’s most-hated taxes and harness market efficiency to provide some insurance for the planet at a minimal cost. Instead, the party’s would-be leaders appear to be looking for any way to avoid engaging seriously.”

I don’t always agree with the Post’s editorial positions, but on this subject I agree strongly.  My views on the need for putting a price on carbon emissions to allow market forces to address global warming and climate change are well documented in several of the posts you will find on this blog web site. I also agree, and have written, that government subsidies to energy companies are unbalanced and need redress if not outright elimination so that energy technologies can compete on a level playing field. I also agree that using the resulting revenue proceeds of putting a price on carbon emissions to address inequities and reduce other taxes is a basis for bipartisan cooperation between Democrats and Republicans.

It is more than time for the U.S. Congress to get on the right side of history and address the global warming issue in a way that protects the long-term interests of the nation and the larger global community.

The Exciting Changes Taking Place in Scotland’s Energy System

I returned recently from a two-week visit to Scotland, my wife’s home country. She and I are now the owners of a flat (apartment in Americanese) in East Kilbride, near Glasgow, that makes visiting with her family much easier.  Another exciting feature is that on all clear days (it happens occasionally in Scotland) we can see, from the flat’s bedroom windows, wind turbines spinning in the nearby Whitelee wind farm, currently the largest operating onshore wind farm in Europe (just under 600MWp). The wind farm is several miles away from the flat.

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The purpose of this blog post is to discuss the exciting developments taking place in Scotland’s energy system, where the stated national goal is to go 100% renewables for electricity supply by 2020. Achieving this goal, whether in 2020 or sometime in the decade afterwards, will rely heavily on Scotland’s large wind resources, both onshore and offshore. As a sparsely populated country (total population is 5.4 million ) with significant renewable energy resources, Scotland “..is in a unique position to demonstrate how the transition to a low-carbon, widely distributed energy economy may be undertaken.”

What is Scotland’s current energy situation?  In Late November 2014 it was announced by the independent trade body Scottish Renewables that “.. with numbers from the first half of 2014, ..renewable energy was Scotland’s largest source of (electrical) power.” Specifically, for the first half of 2014, renewables provided 10.3 TWh of electrical energy, while nuclear power, previously Scotland’s main sources of electricity, provided 7.8 TWh. Coal was third with 5.6 TWh with natural gas at 1.4 TWh.

This increase in renewable generation continues the trend shown in the following chart:

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Installed renewable capacity increased to 7,112 MW by the end of the 3d quarter of 2014 – mostly onshore wind and hydro – with another 441 MW of wind capacity (onshore) in construction, 7,720 MW (onshore and offshore) awaiting construction, and 3,765 MW (onshore) in planning. Small amounts of other renewable generation (biomass, landfill gas, hydro) are also in the pipeline.

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With wind power already generating enough electricity to supply more than total Scottish household demand, Niall Stuart, Chief Executive of Scottish Renewables, sees much more potential in the future: “Offshore wind and marine energy (wave, tidal, ocean current) are still in the early stages of development but could make a big contribution to our future energy needs if they get the right support from government. That support includes the delivery of grid connections to the islands, home to the UK’s very best wind, wave and tidal sites.”

Scottish enthusiasm for renewables was bolstered by a report issued  by WWF Scotland in January (‘Pathways to Power: Scotland’s route to clean, renewable, secure electricity by 2030’) which concluded that, with respect to electricity, a fossil fuel-free Scotland is not only technically feasible but “..could prove a less costly and safer option than pursuing fossil fuel- based development..” that assumes carbon capture and sequestration (CCS) technology will be operating at scale in 2030. With regard to the Scottish government’s stated goal of decarbonizing the electrical sector by 2030, Paul Gardner of DNV GL, lead author of the report, has stated that “There is no technical reason requiring conventional fossil and nuclear generation in Scotland.”  In addition, Gina Hanrahan, climate and energy officer at WWF Scotland, explained that “The report shows that not only is a renewable, fossil fuel-free electricity system perfectly feasible in Scotland by 2030, it’s actually the safe bet. Pursuing this pathway would allow Scotland to maintain and build on its position as the UK and Europe’s renewable powerhouse, cut climate emissions (electricity generation accounts for one-third of Scotland’s emissions) and continue to reap the jobs and investment opportunities offered by Scotland’s abundant renewable resources.”

What is Scotland’s natural resource base for renewables?  In addition to its existing installed capacity of hydropower (1.3 GW), it is estimated that wind, wave and tide make up more than 80% of Scotland’s  renewable energy potential – 36.5GW/wind (onshore and offshore), 7.5 GW/tidal power, 14 GW/wave power. This total, almost 60 GW, is considerable greater than Scotland’s existing electrical generating capacity from all fuel sources of 10.3 GW.

It is interesting to note that Scotland also has significant fossil fuel resources, including 62.4% of the European Union’s proven oil reserves, 12.5% of the EU’s proven natural gas reserves, and 69% of UK coal reserves.  Nonetheless, the Scottish Government, as discussed above, has set ambitious goals for renewable energy production. This is likely driven by concern for global climate change and the economic potential for Scotland as a major source of renewable energy.

 

 

Two New Books Worthy of Your Attention

I am pleased to use my blog to bring two new books to your attention, one just published and one to be published next month.  Both are highly recommended.

The first, just published by W.W.Norton and co-authored by Lester Brown and several of his Earth Policy Institute colleagues, is ‘The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy’.  It addresses the energy transition that is unfolding rapidly around us and is a topic I have been writing and speaking about for many years, including in this blog. Lester has been an important part of this discussion from day one  and in this book he and his fellow authors “..explain the environmental and economic wisdom of moving to solar and wind energy and show how fast change is coming.” It is a global topic that needs increased public visibility and discussion, one that will impact the energy systems that our children and grandchildren will inherit.  Without going into too much detail I will quote just a few lines from the book’s preface and  the comments of two book reviewers:

“Preface: Energy transitions are not new. Beginning several centuries ago, the world shifted from wood to coal. The first oil well was drilled over 150 years ago. Today we are at the start of a new energy transition, one that takes us from an economy run largely on coal and oil to one powered by the sun and wind. This monumental shift, which is just getting underway, will compress a half-century of change into the next decade.

The purpose of this book is to describe how this great transition is starting to unfold. While the book cuts a wide swath and takes a global view, it is not meant to be a comprehensive study of the world energy economy. Each technology discussed here easily deserves its own book, as do many topics important to the transition that are not discussed in depth here, such as energy efficiency, the “smartening” of electrical grids, energy savings opportunities in industry, and batteries and other energy storage…..”

Reviewer comments: “Brown’s ability to make a complicated subject accessible to the general reader is remarkable..”(Katherine Salant, Washington Post); “..a highly readable and authoritative account of the problems we face from global warming to shrinking water resources, fisheries, forests, etc. The picture is very frightening. But the book also provides a way forward.”(Clare Short, British Member of Parliament).

The second recommended book, due out next month, is Gustaf Olsson’s second edition of  ‘Water and Energy Threats and Opportunities’. The first edition was published by the International Water Association in June 2012.

In my review of his first edition I stated:  “Professor Olssons book, Water and Energy Threats and Opportunities, the result of a meticulous multi-year effort, meets an important and growing need: to define and illuminate the critical linkage between water and energy. He explores the water-energy nexus in detail, and carefully discusses its many implications, including for food production and its connection to global climate change. He properly and repeatedly emphasizes the important message that water and energy issues must be addressed together if society is to make wise and efficient use of these critical resources. Given its comprehensive scope and careful scholarship, the book will serve as a valuable addition to the libraries of students, researchers, practitioners, and government officials at all levels.”

In his expanded second edition Professor Olsson, a distinguished faculty member in industrial automation at Lund University in Sweden and a Distinguished Fellow of the International Water Association, adds additional and updated information on climate change,  energy system water requirements, renewable energy, and a clear and comprehensive discussion of the important subject of fracking for fossil fuel supplies which has recently emerged as a major public issue.

In its first incarnation Professor Olsson’s book qualified as a ‘bible’ on water-energy issues. In its second incarnation it qualifies even more so.