Wind waltzes across Texas

Relatively unknown to many Anericans is the rapidly growing success of renewable energy in America. California is the significant leader in solar energy and Texas is the predominant wind energy state.

As reported on CBS Morning News this week, there are 24,000 renewable energy jobs in Texas mostly in the wind sector. That is more than 1/3 of coal jobs in the whole country. Further, over 16% of the electricity produced in Texas comes from wind energy at the end of 2017.

What may be surprising is former Republican Governor Rick Perry deserves credit for pushing a bill to expand the electric grid to draw power from the wind turbines. This action is vital as to power cities, the electricity has to be transferred from the plains areas where wind blows so strongly.

This makes Perry’s relative silence on the subject frustrating in his role as the director of the Department of Energy. He is doing the heavy lifting for the President as he pushes for more coal use. With the renewable energy jobs growing at double-digit per annum clip, one would think Perry might want to talk about expanding the nationwide grid.

Let me close with a reminder of the town of Georgetown, TX that is 100% powered by renewable energy. Republican Mayor Dale Ross noted in the CBS news interview that he is a Reagan Republucan, but breaks with his party on climate change. Ross, a CPA, wants to meet with the President as his Town Council voted to select the lesser and more predictable cost model for energy which is renewable energy.

Too many people debate renewable energy as a jobs vs. environment issue. This is an old argument and is no longer true. The market forces and development have made renewable energy more affordable. As a result, the jobs are growing. Just think of the wind waltzing across Texas.

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A Portugese Energy Company knows about US Growth

An article in Reuters earlier this week noted a Portugese energy company that knows first hand where energy growth is occurring in the United States. It may be surprising to the current White House, but not the market, the growth is not in the coal energy sector.  Per Timothy Gardner’s article “EDP bullish on US renewable power despite Trump’s support for coal” in Reuters, the following quote is compelling.

“‘U.S. renewables represent the growth engine of our company,’ António Mexia, who since 2006 has run the power utility EDP (EDP.LS), one of Portugal’s biggest companies, said in an interview on Tuesday.

U.S. wind and solar power projects represented 65 percent of new investments last year at EDP’s renewables arm EDPR (EDPR.LS), and are expected to continue at that rate in 2018 and in 2019, Mexia said. EDPR operates renewable projects in 11 other countries in Europe and the Americas.”

This is not inconsistent with other measures in America as solar and wind energy growth have risen with the continual fall in pricing. And, it is showing up in recurring double digit job growth in solar and wind energy.

I have cited the significant increase in wind energy across our plains states, but this is following the forecast of oil tycoon T. Boone Pickens, who appeared on “60 Minutes” more than five years ago. He noted that natural gas expansion is a bridge to wind energy. It is just buying us time to get the infrastructure ready and prices to get more effective. It should be noted that several states get over 10% of their electricity from wind energy, with Iowa  at just under 33% leading in percentage of total and Texas at 16% producing the most wind energy due to its size.

In California, North Carolina, Florida and other southern states in the east and west, solar energy is growing significantly. California, by itself, would be one if the most prolific solar countries. And, Tesla is more of a battery storage company than car company. Elon Musk went live with a massive battery storage site to help a French company power southern Australia with solar energy. It truly is a global industry, so seeing a Portugese company invest here in the US is not unusual.

The growth in energy jobs are in renewables. It would be nice if this was more publicly recognized by all of our elected leaders, not just the ones who are not funded by the fossil fuel industry.

Good energy news on this cold, snowy day

Global citizens are rightfully concerned the US President is pulling the US out of the Paris Climate Change Accord, but progress continues as “we are passed the tipping point on renewable energy.” Even the US pullout cannot stop the train, as states, cities, businesses and other countries continue the push. It just means the President and his team will not be at the adult table on this issue and may not be invited at all.

Here are a few miscellaneous energy tidbits that should offer encouragement.

Per the UK Based organization Carbon Tracker, here are a few highlights from the past year:

  • more than 1/2 of the US coal plants in existence in 2010 have been closed;
  • more than 1/2 of the remaining coal plants in Europe are losing money;
  • the UK has slashed electricity from coal usage from 40% to 2% in the last five years; and
  • there have been big strides in China and Australia on reducing coal usage.

Per the Federal Energy Regulatory Commission, the five member, Republican dominated agency denied the request by Department of Energy Secretary Rick Perry to fund the building of more coal-fired and nuclear plants. This was a surprise move given the make-up of the committee. I would call this decision as not wanting to throw good money after bad.

It should be noted, it is not just coal that is giving the FERC commissioners pause. The US division of Westinghouse Electric Company had to declare bankruptcy for cost overruns on a new nuclear power plant for SCANA, the South Carolina utility. As a result, the new plant is being shuttered and SCANA is being sold to Dominion Resources, so as not to overburden SC citizens with the cost of the lost investment.

The International Energy Agency in their 2017 Energy Outlook notes the cost of new solar photovoltaic electricity has declined by 70% and wind energy has fallen 25% since 2010. It should be noted the IEA has tended to favor fossil fuel energy in past releases. China, the new country leader in the climate change fight, will be investing US$360 billion more in renewable energy by 2020. Plus, the price of solar has fallen so much in places like Zambia, Saudi Arabia and Mexico, it has won bidding contests against fossil fuel energy sources for projects.

Finally, any discussion on future energy cannot exclude the declining cost and increasing capacity in battery storage. Per Bloomberg New Energy Financials, energy storage will double six times between 2016 and 2030. Elon Musk just helped southern Australia go live with a major battery installation and 21 states in the US have planned projects on energy storage.

All of the above stories are important because it has always been a financial argument to combat the environmental concerns, whose long term costs have been undervalued. Now, the financials are favoring the renewable energy engine, so market forces will continue to force the ultimate demise of coal-fired energy, which started with the lower cost of natural gas. If a company can find a clean energy source which is cheaper and more predictable long term, that is easily the better path forward. If you don’t believe me, just ask companies like Google, Facebook, Walmart and IKEA to name only a few.

 

 

The Renewable Energy Train continues to board former skeptics

I have written before the renewable energy train has left the station. The current White House incumbent’s position on climate change and promoting more fossil fuel development, can slow the train, but he cannot stop the market forces that are driving it down the track.

A newspaper story reprinted today supports this thesis and illustrates how more unlikely folks are getting on board the train. An editorial from the Fayetteville (NC) Observer entitled “Solar turning a corner in NC?” noted the opening of the largest solar farm east of the Mississippi. But, a new solar farm in NC is not news, as NC trails only California in solar energy.

What I found newsworthy beyond the size is the attendance at the grand opening of at least two Republican politicians – US Representstive Robert Pittenger and State Senator John Szoka. Szoka had spearheaded a renewable energy support bill, which is ironic since he was a previous skeptic. He noted “What changed my opinion is facts. Facilities like this are drawing down the cost of energy.”

But, these folks are not alone. There are groups like Conservatives for Clean Energy that are helping to propel the train. There is the work in several red states that have developed wind energy into a sizable part of their energy portfolio. These plain states like Texas, Iowa, Oklahoma, e.g. are investing heavily in this increasingly cheaper source, with Iowa getting 1/3 of its electricity from wind energy.

I highlight the Conservatives who are jumping on the train, as unfortunately, climate change and renewable energy have been made a political issue. The people who have made it so are the fossil fuel companies who continue to wield their powerful influence to garner more profits. The White House incumbent and his cabinet are perpetuating this influence, but fortunately they are on the wrong side of the tracks and market forces and other political, business and citizen leaders are moving the train forward.

Tuesday’s Gone with the Wind

With a shout out to one of my favorite Lynyrd Skynyrd’s songs “Tuesday’s Gone with the Wind,” here are a few tidbits for this Tuesday.

It should not be lost on anyone that two of the biggest players in wind energy are two of the largest manufacturing companies in the world – Siemens and GE. With Iowa at almost 1/3 of its electricity provided by wind and oil rich Texas at 13% and the largest US wind energy state, this is much more than a breeze and just shy of a gale.

What the ranchers and farmers in the Midwest and in other areas have learned, is leasing their land to wind mills earns annual income and let’s them continue to use the land. In North Carolina, for example, one farmer leased his farm for eleven wind mills for annual income of $55,000. With the variability of profit margin associated with working the land, this adds some stability.

Thinking of a different kind of wind, the Senate leader is a particularly blowhard. Now, that the third effort to revise the Senate ACA repeal and replace has fallen apart, he is still reluctant to take the more appropriate path. Rather than working with all members of the Senate following normal procedure for legislation, he now is talking about a full repeal vote, without replacement. Not only is that malfeasance in my view, it runs contrary to the wishes of most Americans. The fact the President suggested it does not improve the veracity of the idea.

Folks, please pay attention to the good and bad things happening. We can no longer assume our elected leaders will act with the necessary diligence and stewardship.

 

 

 

Let’s focus on jobs – promote renewable energy

Nadja Popovich of The New York Times penned a story this week called “Today’s energy jobs are in solar, not coal.” Using 2016 numbers released by the US Department of Energy in January, the following data points are revealed per Popovich:

  • 1.9 million Americans work in the field of power creation (including generation, mining and other fuel extraction activities).
  • More than 373,000 Americans work full or part-time in solar energy, with 260,000 of them spending over 70% of their time on solar projects.
  • Wind energy jobs topped 100,000 for the first time in 2016.
  • The coal industry jobs have fallen to 160,000 Americans nationwide, with only 54,000 in coal mining, a significant reduction which has occurred over time with the advent of natural gas due to fracking and decreasing prices in renewables.
  • It should be noted there are another 2.3 million jobs in energy transmission, storage and distribution, including more than 900,000 gas station workers and related retail jobs.
  • If non-traditional energy workers are added, those installing energy-efficient products, the number swells in total to 6.4 million Americans.

Solar jobs have been growing at an annual double-digit rate for several years and will continue to do so with the falling prices. A report of a couple of years ago, noted that wind energy jobs could grow to 500,000 by 2030, if we invest appropriately. It should be noted that Warren Buffett and oil tycoon T. Boone Pickens are big proponents of wind energy, with the Buffett investing in GE who produces wind turbines and Pickens promoting wind energy in the plain states for several years. Iowa gets over a 1/3 of its electricity and oil-rich Texas gets 11% of its electricity from wind energy, e.g.

So, the next time you discuss the need for moving forward with renewable energy and someone counters your argument with a remark about jobs, please remember these real numbers released by the DOE. The best I can ascertain, is the DOE is not in the business of fake news. And, the final question to ask is where do you think investors are going to place their bets – on a retrenching industry or a growing one?

The wind is at our backs now, with red states leading the way

While our President is not a fan of wind energy (having unsuccessfully sued the Scottish government to stop an offshore development) and has made some climate change is a hoax comments, rather quietly, renewable energy continues to move up the charts. Solar energy is going like gangbusters with double-digit growth in production and jobs, but wind energy has surpassed hydro energy as the largest form of renewable energy in the US. What is interesting, most of the growth in wind energy is occurring rather quietly in mostly red states.

From an American Energy News article last week:

Texas has more than 20 MW of installed wind capacity, or nearly a quarter of the market. Iowa is the second-biggest wind state, and Oklahoma overtook California for third place at the end of 2016.

 The first offshore wind project in the United States also came online in the fourth quarter, the 30 MW Block Island wind farm off the coast of Rhode Island.

More than 10,000 MW of wind is under construction in the United States, about half of which is in Texas. New Mexico’s wind industry is growing rapidly, with 1,300 MW under construction. Once completed, those projects will double the size of New Mexico’s installed wind capacity.”

Per Reuters from an article this week, in 2016, Texas has 12.8% of its energy produced by wind energy, something our new energy secretary and former Texas governor has been fairly silent about. And, as noted above it will continue to grow.

And, from an article from the US Energy Information and Administration last October:

In 2015, 11 states generated at least 10% of their total electricity from wind. As recently as 2010, only three states had at least a 10% wind share. Iowa had the largest wind generation share, at 31.3%, and South Dakota (25.5%) and Kansas (23.9%) had wind generation shares higher than 20%. Two additional states, Texas and New Mexico, are on track to surpass a 10% wind generation share in 2016, based on data through July. Wind generation in Texas, the highest wind electricity-producing state, made up 24% of the national total wind generation and 9.9% of Texas’s total electricity generation in 2015.

At the national level, wind’s share of total U.S. electricity generation has risen every year since 2001. Wind facilities produced 190,927 gigawatthours (GWh) of electricity in 2015, accounting for 4.7% of net U.S. electric power generation. This level represents a doubling of wind’s generation share since 2010, when the share was 2.3%. Based on monthly data through July, wind has provided 5.6% of U.S. generation in 2016.”

Both of these quoted articles can be linked to below. As I have said several times, while the President can slow the progress down, the train has left the station on renewable energy due to reduced production pricing coupled with much less maintenance, acquisition, transport and litigation costs.

This is the news that needs to be shouted from the roof tops. And, the benefactors of this progress will not just be our children and grandchildren, it will impact us all now.

 

http://www.eia.gov/todayinenergy/detail.php?id=28512

http://theamericanenergynews.com/energy-news/wind-surpasses-hydro-largest-us-renewable-energy-source