Showing posts with label Irish Times. Show all posts
Showing posts with label Irish Times. Show all posts

Saturday, 22 July 2017

Why are Politicians Obsessed with Climate Change ?

by Owen Martin

The Irish government has recently had to endure scandal after scandal in just about every department - justice, health, finance, housing etc. But there is still only one issue in town - climate change.
Fifty years on and there has been a clearing-out of another generation, this time by the running, shorts-wearing avocado smashers. To what will they bring their focus, energy and vigour? One thing they have promised is to take climate change seriously. On election as Taoiseach, Leo Varadkar said he wanted to see a new ambition on climate change. But he and his colleagues should do more than that; they should define it as the most important challenge to be faced; they are, after all, in Andrew O’Hagan’s phrase, the “globally warmed generation” - Diarmaid Ferriter, Irish Times

This week, yet another National Mitigation Plan was announced by the government to loud fanfare. 

David Whitehead, a geologist and paleoclimatologist from Galway, lays out quite simply the futility of the Paris Agreement and such climate mitigation plans as they relate to Ireland :


A peer-reviewed paper in the Global Policy journal has modelled the impact of the CO2 emission reduction promises, called Intended Nationally Determined Contributions (INDCs), made ahead of the Paris climate summit. The climate impact of all Paris INDCs, if every nation fulfilled them by 2030, which is most unlikely, and if the climate models used to assess the temperature effect of CO2 emissions are accurate, which is perhaps even more unlikely, the temperature reduction would be 0.048°C by 2100. If the INDC’s were extended for another 70 years and every nation fulfilled them by 2030, and continued to fulfill them until the end of the century, and there was no ‘CO₂ leakage’ to non-committed nations, the entirety of the Paris INDCs would reduce modelled global temperature rises by just 0.17°C by 2100.  The Irish Times cannot have it both ways; if the models are correct the impact of the Paris agreement is negligible and if they are incorrect the rationale for the Paris Accord is unfounded. Paris is just symbolic virtue signaling by western governments and less developed countries signed up because it promised them large cash transfers. Now Turkey states that unless it receives the money it will not ratify Paris. Other countries will follow. Ireland is the second most carbon efficient economy in the world in terms of CO2 emissions in relation to GDP, and would probably be first if our GDP figures were correct, which we all know they are not.  Ireland is also the most carbon efficient economy in the EU and so for us to be pay huge  fines  levied by the EU for a failure to meet the  2020 and 2030 CO2 emissions targets, agreed to by Eamonn Ryan on ideological grounds, would be  economically  very damaging and  an act of political lunacy -  David Whitehead. BA(Mod. Nat.Sc.)TCD, FIMMM, C.Eng.

These facts are not secret nor are they in any way over complicated for policy makers and the media to understand. If climate change is a serious threat to the world, Ireland can play no role in combating it and in any case we are at present a very carbon efficient economy. So our politicians should be fully focused on the other big issues they urgently need to deal with. 

Ireland has a serious debt problem, the worst in the EU relative to our GDP. We have out of control public sector spending. Our public sector workers enjoy far higher salaries and pension entitlements than those in the private sector. Our social welfare spending is much higher than the EU average.  A housing bubble is manifesting itself once again in Dublin city. Despite spending more on health than anyone else in the EU, apart from Iceland, we still have a dysfunctional health system. Elements of trusted organisations like the police force, care and charity organisations have revealed themselves to be corrupt. Pension funds are repeatedly raided by our cash hungry government. The idea of retiring in your 60's on a state pension seems less and less likely by the day.  Socialist dogma coming from the media and government opposition benches prevents even a debate on most of these important issues, let alone solutions to be put forward. 

If nobody in the House of Lords has never heard of the economic theory "comparative advantage", then you could safely bet a lot of money that nobody in either two parliaments in Dublin have heard of it.  

One more anniversary. 200 years ago, 1817, saw the publication of David Ricardo’s Principles of Political Economy, which contains the first exposition of the principle of comparative advantage, a thoroughly counterintuitive idea that was once described by Paul Samuelson as the only proposition in the whole of social science that is both true and surprising.Comparative advantage takes Adam Smith’s division of labour one step further and explains why free trade benefits everybody, even countries that are the worst at making things, even countries that are the best at making things. But it also, in my view, explains prosperity – what it is and why it happens to us and not to rabbits or rocks - Matt Ridley, the case for Free Market Anti-Capitalism

The fact is that it is not our energy or climate policy that is unsustainable. It is our massive debt, welfare and government spending that is unsustainable. It is the raiding of pension pots and rainy day funds that is unsustainable. It is our high income taxation policy that is unsustainable. It is the PSO levy that is funding renewable energy projects that is unsustainable. The government must know this and they know, because of our education system, that there will never be a free market anti capitalism system as Matt Ridley describes that might help address these problems. Although perhaps its too late for that now anyway.

So the government must propagate the idea that the end of the world is nigh anyway. They must call attention to a problem much bigger than all these issues and then use all the instruments of the State to help fight it.  They must choose an issue that most people do not understand. And this is where climate change comes in. No longer do the politicians have to deal with the real issues. They can continually make themselves look good to a gullible public by pretending to combat a fake and larger enemy until the house of cards does finally crumble. 


Saturday, 4 February 2017

More Fake News - Dystopian Novels and Trump

"The best books, he perceived, are those that [can be misinterpreted to] tell you what you know already." - 1984, George Orwell [slightly amended by the blog author]
by Owen Martin

Everyday now fake news arrives unashamedly onto our shop shelves. The latest fad is to misinterpret dystopian novels so that they can be applied to the Trump presidency. Irish Times recommends 1984, Animal Farm and Brave New World to their readers.  News organisations around the world are also pushing the same narrative - Vox, CNN, Independent, Guardian, New York Times and Washington Post.    

Fake News is something that appears true on the surface but upon closer examination is evidently false. 

Animal Farm was about the Russian Revolution in 1917 and the period of Communism that followed. All Communists oppose Trump

Both 1984 and Brave New World were about the dangers of the Big State. In 1984, it was called Big Brother, in Brave New World it was called World State. Trump's policies are to cut taxes, reduce government regulations and freeze Federal hiring. The exact polar opposite of what a Big State would do. 

All communist countries suffer from over-regulation and central planning.  

A World State is what climate hustlers have being demanding for years now. Trump is a climate skeptic and wants nothing to do with a World State.

This proves that there is a distinct lack of intellectual capacity at the mainstream news organisations. New readers of these books will inadvertently be reading about the dangers of the Big State, not Trump. The Big State that most of these news organisations and the Left support. 

But what about the Newspeak that comes from the Trump administration ? Orwell makes it clear that the purpose of Newspeak is to restrict thought and ideas. In 2017, Newspeak could only resemble the Left's constant use of Political Correctness as a tool to suppress speech and ideas. 

Scott Adams uses the idea of the Persuasion Filter to explain how people can see two different movies when presented with the same set of facts. If people are watching a movie where Trump is Hitler and therefore the end of the world is nigh, then all dystopian novels (and most definitely the famous ones) must apply to Trump. However, this means living in an inverted world where a book about Communism and the Big State can apply to a free market Capitalist who you happen to dislike.   

Persuasion by Inversion.

Thursday, 16 July 2015

Gas Vs Wind - more inaccuracies



Joanne Daly, senior energy analyst at Vayu, said the continuing integration of wind energy onto the grid is assisting in reducing the amount of gas-fired generators used to produce electricity, which is typically more expensive than that generated from renewable sources.
The above was published in the Irish Times recently. It is a claim that has been stated so many times in Irish media outlets that people are actually believing it is true. Gas does not receive a fixed subsidy, renewable energy does. Gas receives on average €50 - €55 MWh, wind receives about € 80 MWh.

The Irish market works in such a way that all generators receive the same wholesale price. Then on top of this wind now receives about € 180 million from the PSO while gas receives about € 30 million :


So where is the evidence for Ms Daly's claim above ? 

Tuesday, 17 March 2015

Response to Irish Times article by Joseph Curtin

One and one equals two, six less four equals two, four by three equals twelve - can you do the maths ?


"To think that two and two are four, and neither five nor three, the heart of man hath long been sore, and long tis like to be" - A.E. Housman

Critics of Ireland's current energy policy have now been told by Mr Curtin of the Institute of International and European Affairs in Dublin that they can't count in an Irish Times article  :

Critics of Irish wind energy have got their sums wrong - Irish Times


So lets see who has the deficiency in mathematics.

The reason is not wind but rather the cost of importing gas. 
The problem is that more than half of Ireland’s electricity is generated from gas – the fourth highest share in the EU – leaving us more exposed than other countries to gas price increases. When gas prices increase, electricity prices here increase more, and Ireland’s competitiveness declines.
Wind replaces more expensive generation options, reducing their operational and fuel costs. The final net impact on consumer bills is minimal. 

 The Academy of Engineering point out the fuel price differentials in their July 2014 report :

 SEAI’s recently published analysis of the” Benefits of RenewableElectricity in 2012”  indicates that in the Republic of Ireland the 4.09 TWh of wind generation is estimated to have saved €177 million in fossil fuel imports i.e. €43.2 per MWh and reduced CO2 emissions by 0.37 tonnes per MWh - indicating that wind almost exclusively displaced highly efficient gas-fired CCGT generation. Wind generators received in excess of €80 per MWh for wind output in 2012. This means that wind generation added almost €40 per MWh to the electricity sector cost base in 2013 i.e. €165 million. This does not include the impact of wind-related transmission cost increases or system operation cost increases.  
So if faced with a choice of paying € 43 MWh or € 80 MWh , which would you prefer to pay ? I don't know about you but personally I would like to pay € 43 MWh. So if we stopped all fuel imports and powered our electricity completely by wind (which is impossible), we would have to pay almost € 40 per MWh extra in our bills. This is because gas does not receive a subsidy while wind does.


Simple Maths Sum # 1

Cost of gas  ---   € 43 per MWh

Cost of wind --- € 80 per MWh

Difference  ---  € 37 per MWh --- which is the additional amount we must pay when wind displaces gas


The reason is not wind but rather the cost of importing gas. Between the summers of 2009 and 2013 wholesale gas prices almost doubled across the EU. Analysis by the International Gas Union shows that between 2007 and 2013 prices increased consistently in all regions except North America.

2009 was the last time a crash occurred in oil and gas prices. So obviously prices increased after that.










So gas (and oil) prices hit a peak in 2008. There then was a dip in 2009 and a slight rise after that. This is reflected in the Annual Energy Payments (The market price per MW sold per half hour) below provided by SEMO :





As you can see Energy Payments, which are a direct reflection of wholesale prices, hit a peak in 2008 of € 2.7 billion and have not come anywhere close since. So our electricity bills should have come down since then by Mr Curtin's logic. But instead our bills have gone back up again and now exceed 2008 prices :


So Energy Payments (which gas prices determine) fell by about half of a billion euros between 2008 and 2011 but our electricity prices continued to rise in this period. So can you do the maths ? What else could be pushing up our bills ?

Lets look at the electricity bills in 2014. Have they come down yet ? Do you know how numeracy works - € 24.05 (2014) is greater than € 20.33 (2008) i.e. electricity was more expensive in 2014 than 2008 , but Energy Payments were higher in 2008 (€2.7bn) compared to 2014 (€ 2bn) (click on each table to zoom in) so the bills should have come down by Mr Curtin's calculations.

From SEAI


From SEAI
So what else could be pushing up our bills ?

Well, the answer is we are in the middle of an energy bubble that is really indefensible :

http://irishenergyblog.blogspot.ie/2015/01/energy-bub.html


All this additional capacity must be financed through electricity bills, whether that capacity is used or not. Excess capacity is financed through capacity payments and the PSO Levy. Most of this excess capacity is due to the € 4 billion investment in wind generation - it's not an anti-wind position to state this, it's simply a statement of fact.


Another factor is Ireland’s lower population density. We need about 70 per cent more metres of cables per person than the average, which feeds into higher prices.


This was always the case in Ireland. As can be seen from the below graph, it didn't prevent Ireland from having a very competitive electricity price during the 90s before they started this renewable gig :



In 2015 electricity prices will decline further, driven again by lower forward gas prices. The correlation is as clear as day.
Has anyone seen these lower electricity prices ? Last time I checked my bill the PSO Levy was going up once again. Can anyone find one of these bills with lower prices ? Please do let me know.

The situation is exacerbated by the fact that Ireland must import its gas from the UK through interconnectors, and Irish consumers bear this additional cost.
Funny then that we once had lower electricity prices that the UK during the 90s when we still were reliant on UK fuel imports :



Others have identified “hidden” network costs they argue are necessary to facilitate wind. It is true that Ireland is currently modernising an electricity network that for many years suffered from chronic underinvestment. Current investments also support traditional generation, increased demand in the regions, and indeed a more responsive, intelligent and modern grid generally.
It is now accepted by almost everyone that Grid 25 is required to facilitate renewables, including Eirgrid :

The implementation of GRID25 is essential if Ireland is going to meet its targets for generating electricity from renewable sources (link). 

Next we are told:
Current investments also support increased demand in the regions
There is no expectation for "increased demand in the regions". In fact, there are gas plants lying idle in the Western Region for example, Tynagh which ran for the equivalent of 2 months in 2013 (link here) and Rhode oil plant in the midlands which ran for a total of 17 hrs in 2013 - "A further trend of decrease for the stations total running hours is predicted for the coming years. This is attributable to a lower demand from the National Grid" (link here). 


Current investments also support traditional generation

Current investments in the grid have nothing whatsoever got to do with traditional generation. This shows a very poor misunderstanding of how power generation and grid infrastructure works. Traditionally, power stations were placed close to towns and areas of large population. The grid infrastructure was larger at the power stations and towns and then progressively smaller as it reached remote regions. With the advent of wind generation, grid infrastructure now has to be built inversely i.e. larger cables in remote locations are required to bring the energy to the towns and cities.


There are also other hidden costs which are directly attributable to wind such as constraints payments for conventional plant which I have written about here :

http://irishenergyblog.blogspot.ie/2014/12/whats-in-electricity-bill-part-2.html

You can see that they have risen every year since 2010 as wind penetrations got higher and the smooth running of plant got ever more interrupted. The Energy Regulator accepts that "More and more wind on the system adds extra costs."


Total investment in wind will reach €3.5 billion by 2020. This is a frightening number, leading several commentators to make the simplistic assumption that consumers will have to foot this bill.
Simple Maths Sum # 2

4,094MW onshore @ € 2 million per MW = € 8.1 billion

555MW offshore @ € 3 million per MW = € 1.6 billion

Total investment = € 9.7 billion not € 3.5 billion

External Sources for these figures can be found on this blog 
http://irishenergyblog.blogspot.ie/2015/02/20-billion-committed-under-irelands.html
and this one
http://irishenergyblog.blogspot.ie/2015/02/cost-of-renewables-infrastructure-in.html

Since we are engaging in simplistic argument, it is not the Irish consumer but the king of Norway who will pay. We import the largest proportion of our gas from Norway, and investment in wind will reduce coal and gas imports by nearly €300 million per annum by 2020. Consumers will benefit by not having to pay for these imports.
Why deal with simplistic arguments when one can actually look at the detail ? Could it be that simplistic argument is the coinage for a propaganda machine ? Dr Fred Udo has done an analysis using SEAI and Eirgrid data and found that running our CCGT in an efficient way would save more fuel than the investment in wind did.

http://irishenergyblog.blogspot.ie/2015/03/wind-turbine-build-outs-and-co2.html

That's right, using modern CCGT in an efficient way saves fuel - thats the rationale behind using fuel efficient generators whether its the engine in your car or the generator in a power plant. The King of Norway in no way feels threatened by 13th century technology. In fact, wind power is very reliant on gas for its own house load needs.

The deployment of wind creates economic growth in Ireland and investing in Irish wind instead of Norwegian gas boosts activity in the local economy. Analysis suggests that GDP would be boosted by €500 million per annum by 2020, creating thousands of jobs in the process.

Airtricity operate 25% of Irish wind farms - owned by SSE, a British company

Energia operate 25% of Irish wind farms - owned by Veridian plc, a British company which is ultimately owned by Arcapita Bank based in Georgia, USA.

Bord Gais operate 15% of Irish wind farms - owned by Centrica plc, a British company. It was rumoured in July last year that Qatar were attempting to buy a large stake in the company.


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